Big retail rethinks Christmas campaigns | WARC | The Feed

Big retail rethinks Christmas campaigns

Major UK retailers, concerned about the possible impact of labour and fuel shortages on the busy Christmas trading period, are having to rethink their advertising campaigns to take account of both product availability and their own ability to deliver. 

Context 

• Current restrictions on power use in China’s factories are expected to feed into supply shortages that will affect everything from machine parts to toys. 
• In June, the Road Haulage Association warned of a shortfall of 100,000 HGV drivers – that is now affecting delivery of everything from fuel to food. 
• Food production has also been hit by a lack of seasonal workers to pick crops and a shortage of CO2 that has affected meat production and packaging. 
• The government has given “no guarantees” the problems will be resolved by Christmas. 
• Rising material costs may be offset by reduced advertising and marketing spend.

What it means

There are signs that consumers are starting to shop for Christmas earlier than normal and that many intend to shop locally and in-store rather than rely on big online retailers. Brands are bringing forward their Christmas advertising and while the hero advertising can’t be significantly changed, digital executions have to be able to react to changing circumstances and stock levels. Media planners will need to be more nimble than ever.

Key quote 

“As a result of both supply chain and cost of goods challenges, we’ll see a consolidation and reduction of product portfolios, with brands really focusing on placing the right product in the right channel” – Michelle Whelan, chief executive of VMLY&R Commerce, told The Drum.

Sourced from The Drum, RHA, Motley Fool, Japan Times