According to a Deloitte study, discount and premium retailers are opening nearly three stores for every one their “balanced” rivals are closing. In tandem with this, premium retailers have seen revenue grow a staggering 40 times quicker than that of their mid-market competitors.
Ahead of the all-important winter sales period, Bazaar voice commissioned investigative research with 4,000 consumers from the UK, France and Germany to explore how shoppers are going to behave by discount, mid-market and luxury preference. Strikingly, when it comes to personal shopping, 69% of UK respondents state they will now opt for a budget brands such as Argos, TK Maxx, H&M and Tiger. A further 12% will now choose from luxury brands such as Self ridges, Burberry, Mulberry and Omega.
Certainly this seems to reaffirm recent headlines spelling doom for the mid-market. However, this report also finds a huge opportunity in the run-up to Christmas. Over half of UK, French and German shoppers plan to purchase gifts for friends and family from mid-market brands. With the holiday season fast encroaching, this report looks at what both mid-market brands and retailers ought to be doing to capitalist on seasonal peaks including Black Friday and Christmas.