Interesting introduction and summary from Webloyalty and Conlumino about the Easter Retail Report 2014. The report reveals important economic metrics as well as consumer trends.

1. LOOKING AHEAD…
EASTER RETAIL TRENDS
WEBLOYALTY & CONLUMINO
MARCH 2014

2. Page
2
Introduction
© 2014 Webloyalty & Conlumino
enquiries@webloyalty.co.uk | 020 7291 8720
Looking ahead ... Easter
March 2014
Webloyalty
19-21 Great Portland Street W1W 8QB
020 7291 8720
enquiries@webloyalty.co.uk
www.webloyalty.co.uk
Conlumino
7 Carmelite Street, London EC4Y 0BS
020 7936 6654
hello@conlumino.com
www.conlumino.com
This research has been commissioned by Webloyalty to provide retailers with
insight into the current trading environment as well as some more specific insight
around the Easter occasion.
About Webloyalty
Webloyalty is a leading reward programme provider working with major online retailers to help them
build stronger, more profitable relationships with their customers. Through our membership
programmes, such as Complete Savings and Shopper Discounts & Rewards, we help our online retail
partners’ customers save hundreds of pounds a year while providing the partner with an additional
revenue stream. As well as incentivising customers to make repeat purchases at the partner’s site, they
can also earn cashback and get great deals on everything from fashion to electronics to travel at hundreds
of top online stores.
Webloyalty was established in the UK in 2007 and has since expanded into France, Germany, Spain, Italy,
Ireland, Brazil and the Netherlands.
About Conlumino
Conlumino is a retail research agency and consulting firm. Our work focuses on all aspects of retailing
and consumer behaviour, which we deliver through bespoke reports, projects and presentations. We
work with many of the world’s leading retailers, property firms and those in the financial sector to help
them maximize success through developing a thorough understanding of the sector and its likely future
performance.
Foreword

3. Page
3
Introduction
© 2014 Webloyalty & Conlumino
enquiries@webloyalty.co.uk | 020 7291 8720
Looking ahead ... Easter
March 2014
Summary
The economy
GDP growth, falling unemployment
and a buoyant housing market point
to a burgeoning recovery in the
British economy. Although the
newfound optimism is to be
welcomed, it should be viewed with a
note of caution.
On the surface the rapidly falling
levels of unemployment are a success
story, but stagnant wage growth and
low productivity levels mean that
inflation remains high, while there is
a danger that the recovery is
unbalanced and over-reliant on
consumer spending. There are also
fears that the government’s Help to
Buy scheme is leading to
unsustainable growth in property
prices. Stronger growth in the export
market will dampen speculation that
the recovery rests on weak
foundations.
Retail trends
Squeezed household budgets have
created a tough environment for
retailers. Widespread inflation in
essentials like food and household
bills mean that disposable incomes
remain low. The by-product of this is a
discounting culture with shops
competing to offer the best value in
the hope of boosting sluggish
volumes.
Competition in retail is rife and this,
along with advances in technology is
fuelling a growth in innovation as
retailers strive to keep up with
changing shopping habits. Whether it
be multichannel advances, ever more
convenient fulfilment options or
instore technology, retailers across
the spectrum are having to re-
evaluate their offers to retain
relevance and stay one step ahead of
the competition.
Sentiment
While views on the economy have
become increasingly positive in
recent months, the same cannot be
said of consumers’ views on their
own personal finances.
Unemployment may be down, but
wages are not increasing and
inflation in the cost of living remains
persistently high.
Perhaps, even more worringly, there
is a wide regional variation in
consumer sentiment with much of
the optimism about the economy and
personal finances being driven by the
more affluent South. To some extent
this bears out fears that the recovery
is overly focussed on London to the
detriment of other parts of the UK.
Consumer data
Our consumer survey indicates rising
levels of apathy towards Easter, with
many viewing the occasion as over-
commercialised. In spite of this, the
popularity of typical Easter products
endures, with hot cross buns and
Easter eggs the top products
consumers intend to purchase. In the
Easter egg market, brands still have
the edge, with own-brand eggs facing
a challenge to catch up.
Reflecting the general lack of
enthusiasm for Easter, planned
activities are decidedly low-key. It
may not be party season, but the
Easter Sunday meal is still likely to
take centre stage, with chicken and
lamb heading up many consumers’
shopping lists.
2014 has arrived with plenty of scope for optimism in the retail
sector. On the economic front, housing transactions are up,
unemployment is down and a general feeling of optimism is
pervading the economy and consumer sentiment that has not been
seen since the recession began to bite.
With the Easter bank holiday sales period on the horizon, greater
momentum in the housing market will be particularly welcome
news for home and furniture retailers for whom such periods are
critical. Positive movement in the January sales certainly bodes
well for more good news over Easter.
Looking ahead
to Easter 2014
Tough times are still ahead for retailers though. Soaring
household bills and sluggish wage growth mean household
budgets continue to be squeezed. Retailers are having to work
harder to encourage spend resulting in widespread shop price
deflation, with discounting and promotions rife.
Trading in the early stages of last year was hit by unseasonably
cold weather, but with the crucial Easter weekend falling a few
weeks later this year, in April, and no sign of a cold snap as yet,
gardening and outdoor living retailers in particular will be
crossing their fingers for a sunny spring ahead.