The toy specialist’s space has been “designed to create a space where 4 to 14-year-olds can hang out with friends, dress up, be creative, feel inspired, explore and have fun”, located on the store’s second floor.

Offering items including hair accessories, child-friendly cosmetics and nail art, dressing up outfits, and jewellery, Hamleys said the boutique is “a response to Gen Alpha’s curiosity for ways to express themselves and develop their identity through play”.

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Hamleys head of buying Victoria Kay said: “Research shows that children as young as four years old possess a profound sense of self-awareness.

“In fact, unlike generations before them, over 90% value their individuality and authenticity, and feel it’s important to be totally themselves. Toys and products that allow them to explore their identity and bond with others through play are vital for the next generation.

“Young children today are also hugely socially aware. They love to shop together with friends; sharing ideas, creative expression and developing their own evolving sense of style is a meaningful social activity,” she said.

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It is not alone, with retailers including Boots and Frasers also making the move.

It puts an end to the flexibility that many workers have been afforded since the onset of Covid, which saw many retail head offices giving staff the option to work at home for several days a week.

Although some retailers have put an end to working from home, others are sticking with hybrid working in order to attract and retain talent that are enjoying the newfound freedom of not being tied to the office five days a week,

In fact, electricals giant Currys has scrapped its head offices in favour of staff memberships to WeWork’s 50-plus offices around the UK in the aftermath of the pandemic.

Retail Gazette looks at the flexible working policy at the UK’s top retailers.

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Customer yeh: Gibson’s guitar playground

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Customer meh: Lost opportunities at WHSmith

As I stepped into WHSmith with the anticipation of an experience I knew all too well, I couldn’t help but recall the numerous surveys and headlines that have given the store with a less-than-stellar reputation for customer service over the years.

As such, I was not expecting miracles – but I did need a stationery product – and fast, so this was the retailer I needed to visit.

The moment I crossed the threshold, I was bombarded with those bright yellow stickers, each screaming for attention with deals that, upon closer inspection, were not deals at all.

In a world where every penny counts, WHSmith seemed to be the only retail winner offering goods at prices that – when compared to the market – are exorbitantly high.

The stark lighting overhead cast a harsh glow on everything and everyone, and navigating the aisles was a challenge unto itself. Trying to find a specific stationery item seemed difficult – but tourist style token take-aways were in abundance.

The experience at WHSmith was a stark reminder of the importance of brand value and the long-term enrichment of customer relationships. In a world that is increasingly moving towards personalised, meaningful interactions, this stores approach felt out of kilter.

Surely its time for a change; a shift towards a future where customer satisfaction is not just a goal, but a reality. It just has to be better than this – no matter how good the profits look. There is so much low hanging fruit for opportunities to improve, that are certain to bolster the bottom line too

Kate Hardcastle MBE is an international consumer expert, broadcaster and commentator who splits her time between the UK, US and UAE.

She works with some of the world’s biggest brands to reimagine their customer engagement by providing insight that help transform their businesses.

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The Danish toy retailer saw net profit drop 5% to £1.50bn in 2023, while it pulled in annual sales of £7.55bn, a 2% rise from 2022.

The toys giant outperformed rivals as the global toy market declined 7% last year.

The sales rise was supported by strong growth in the US and central and eastern Europe, poor performance in China, where sales dropped due to “challenging economic conditions”, held the retailer back.

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Lego CEO Niels Christiansen said: “We are pleased with our performance given that 2023 was the most negative toy market in more than 15 years.”

The business said it saw “strong momentum in the final quarter of 2023,” aided by spend during the lead up to Christmas.

The results come after Lego opened 147 stores last year, more than half of them based in China, and invested in offices and new and existing factories.

In November, Lego opened its flagship store in Manchester’s Trafford Centre as it continued to build its UK retail empire.

The 267 sq m space, which is its second in Manchester, houses the toy retailer’s extensive product range, alongside a range of experiences including its Pick-a-Brick wall and Build-a-Minifigure station.

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The Shake The Table podcast has been designed as a roadmap filled with actions, tips, and authentic experience on how to be a successful female leader today.

Presented by Hello! editor at large, Rosie Nixon, and M&S corporate affairs director, Victoria McKenzie-Gould,  the pair will talk to a range of successful female business leaders about what it takes to thrive in the modern workplace.

The retailer said each episode will feature an in-depth conversation with women from across the spectrum of entrepreneurship, retail, politics, and innovation, with guests including Floral Street founder Michelle Feeney and Tessy Ojo CBE.

With this year’s mission for International Women’s Day being #InspireInclusion, M&S said the podcast sets out to demystify the roads to success.

It added that it looks at understanding how women can not only lead but bring other women with them, inspiring inclusion, fostering allyship and redefining what power and purpose look like in the workplace.

The podcast and vlogcast will be available to stream from major podcast platforms, YouTube and through Hello! and M&S channels.

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McKenzie-Gould said: “At M&S 70% of our remarkable colleagues are women, we work with fantastic female-led suppliers and of course serve millions of women every day.

“So, it’s a privilege to be able to shine a light on some of those female business leaders about what’s driven them and what tables they’ve shaken to get to where they are today.”

She added: “Working with Hello! is a natural partnership given their support for empowering women and positivity and I hope listeners enjoy the conversation and finding out about these inspiring leaders.”

M&S has had a busy start to the year, revealing it would be rolling out Nobody’s Child pop-up shops to 48 more stores across the UK from this month, bringing its total to 60.

This week the business also announced the departure of its co-chief executive Katie Bickerstaffe, who will step down from her post in July after two years at the helm.

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The 4,500sq ft shop at 61-62 Eastcastle Street is within stumbling distance of Denmark Street, home to recording studios and music producers, as well as the 100 Club, the music venue where bands such as Blur, The Clash and The Rolling Stones have played.

Visitors can browse and play more than 300 electric and acoustic guitars, as well as the entire collection of Maestro pedals.

Customers are also able to design their own Made-to-Measure guitar inside the Gibson Custom Shop Murphy Lab.

The Gibson Garage, which is the brand’s second store globally, has a secret VIP bar behind a door hidden inside a phone box.

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Gibson president and chief executive Cesar Gueikian said the new Garage store is “how we want our fans to experience” the brand.

He said: “London has a vibrant and influential music history, and the Garage is designed to be a part of the London music community with a live stage featuring performances and special events from music icons and emerging artists on any given day.

“The Garage is an exciting place to experience live music and lifestyle through Gibson instruments, sound, media, and apparel. We hope the Gibson Garage will have a dramatic impact on the London music scene in addition to becoming a must-see destination in London.”

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The 4,110sq ft shop marks the aggressively expanding lifestyle retailer’s ninth London store and is its first location to have dedicated zones for the brand’s key ranges, such as Sanrio, beauty, snacks and Blind Box collectables.

Shoppers are also able to buy homewares, crafts, stationery, toys and its newly launched beauty and self-care line.

The Camden shop is one of several new stores that Miniso is opening this year as part of its rapid UK expansion plans.

It will launch another store in London’s Westfield Stratford City in March.

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The Works chief executive Gavin Peck noted: “Family finances were under pressure, meaning many customers prioritised spend on food and essentials, whilst cutting back on gifting”. 

“The extended period of discounting seen across the sector continued throughout November and December, resulting in a highly competitive market and pressure to maintain promotional activity,” he said.

However, despite a pull back in lavish spending over the festive period, there was still a desire to celebrate, with most of the big supermarkets reporting stellar trade.

The grocery sector was in fact the big winner this year, with a whopping £13.7bn spent in December Kantar figures show, as average household spending rose 6% to £477 across the month.

Both Sainsbury’s and Tesco posted a near 8% jump in like-for-likes over the golden quarter, while discounters Aldi and Lidl enjoyed their busiest Christmas’ ever with sales up 8% and 12% respectively.

Meanwhile, many shoppers traded up over the festive period, refusing to scrimp, which saw M&S Food sales rocket 10.5% to £2.3bn.

Fashion flop

However, fashion proved to be a mixed bag over the golden quarter.

While Next and M&S were the two standouts over Christmas, reporting better than anticipated sales of 5.7% and 4.8% respectively, other retailers fared less well.

JD Sports warned it would fall short of its £1bn profit target this due to “cautious consumer behaviour” creating a “softer” trading environment over Christmas.

It was not just streetwear that took a hit. Quiz, known for its partywear, saw sales plunge 11% in December as it said inflation hit demand and traffic declined both in stores and online.

The unseasonable warm November hit sales across the sector.

Online player N Brown posted a 9.3% drop in revenue over the golden quarter while Very.co.uk reported a 3.9% fall for clothing.

Even Primark, a perennial over-performer in the retail sector, flagged slower sales growth as like-for-likes edged up 2.1% from last year’s 11%.

It was a marketedly different story in the world of beauty, with the ‘lipstick effect’ – where cash-strapped shoppers buy affordable treats – came out in full swing in the run-up to Christmas.

Superdrug’s sales jumped 9.2% in the four weeks to 30 December, while Boots said it expected sales from Black Friday week until the New Year to beat “last year’s excellent performance”.

Meanwhile, it was a far from vintage year in electricals and general merchandise as people cut back on their present buying.

What defined Christmas this year?

Discount-centric

It was a highlight promotional Christmas, even in strong performing areas like grocery.

Kantar figures show that nearly a third of the £13.7bn spent on grocery was made on some kind of promotional offer – up by more than £820m on last year.

Tesco upped the volume of deals by 5% year-on-year, which chief executive Ken Murphy put down to suppliers trying to win back volume.

Similarly, in electricals, Currys boss Alex Baldock attributed its “better and deeper deals” over the peak mostly to suppliers too.

However, other retailers had less control over their level of discounting.

The Works reported it had discounted more stock in November and December to keep up with pressure in the market, which contributed to its half-year pre-tax loss of £8.5m.

JD Sports also reported it had an “elevated level of promotional activity during the peak trading” to fuel sales – which rose 6% – against the backdrop of “more cautious consumer spending”.

Peel Hunt analyst John Stevenson says November’s heavy discounting to shift stock following a slow down in sales from the warm weather meant the “ability to flip back to full price before Christmas just just didn’t happen”.

“The timing of Christmas played a part in that to a degree as you had an extra week and weekend of shopping.

“You’ve got a couple of weeks to generate cash and to get the stock cleared, so it becomes quite aggressive on the promotion side of things,” he says, adding that the level of discounting in the market has now entered a “state of calmness”.

A battle of managing margins

Some retailers took the decision to forgo sales to protect margins in the highly promotional market.

It’s a strategy Currys has been pursuing for some time, and despite lower sales over the golden quarter, the electricals retailer now expects full-year profit to come in ahead of market expectations.

Baldock says stable margins were a “highlight of this peak” as the business chose not to “chase less profitable sales”.

Mulberry took the same approach to focus on full price sales, despite an “unusually high promotional environment”, to help offset rising operational costs elsewhere in the business.

Similarly, M&S boss Stuart Machin says the business maintained its focus on full-price sales for its clothing.

“We held our nerve with the slightly warmer weather in early November,” he says. “We didn’t want to discount because our commitment is not to put prices up…we’re trying to price right first time.”

This was not the case for JD Sports, which analysts believe misjudged how some of more premium-priced products, such as a £120 Nike fleece ,would land with pinched shoppers.

People still want to celebrate

Even with less money spent less on gifts, it was still the season to be jolly.

M&S’ strategy to back the big events in the calendar paid off as Machin says customers headed to the retailer “to keep their Christmas special”.

He explains the retailer “was the place to be to buy some glamour and sparkle” in December as it sold over 75,000 velvet suiting options and 150,000 sequin products.

Primark’s partywear sales rose 4% and Very reported a 14.7% uptick for its premium fashion ranges.

Majestic toasted its best-ever Christmas after a 13.4% jump in fine wine sales as shoppers trading up over the festive period led to total revenues rising 8.1% in the eight weeks to holiday.

Luxury wanes

However, shoppers chose to focus on life’s little luxuries this Christmas forgoing larger expenses.

Fortnum & Mason chief executive Tom Athron says the retailer “saw many more customers spending a little bit less” and “trading down”.

However, this didn’t impact sales too much – which surged 17% in the five weeks leading up to Christmas – thanks to footfall levels rising by more than a third compared to the year prior.

This was not the case for the rest of the luxury sector.

Watches of Switzerland chief executive Brian Duffy says: “The festive period was particularly volatile this year for the luxury sector, with consumers allocating spend to other categories such as fashion, beauty, hospitality and travel.”

The watches retailer, which lowered its projections for the year, said UK trading was “more challenged” due to an “unusually high level of promotional activity in non-branded jewellery”.

Burberry also cited similar issues when it too warned on profits after sales dropped 7% across the golden quarter as consumers reined in their spend on designer purchases.

Wealth Club quality shares portfolio manager Charlie Huggins says that weakened consumer market over the festive period was “not a great surprise”.

“Having splurged on luxury goods in the wake of the pandemic, wealthier consumers are now tightening their belts meaning the whole sector is starting to feel the pinch,” he says.

Own-brand wins

With value front of mind for many shoppers, it was unsurprising that people continued to switch to own-brand versions.

Superdrug own-brand sales were up 10% year-on-year last month, which it attributed to “customers seeking quality products from a brand that they can trust, at an affordable price”.

Sales for the retailer’s own make-up range, Studio London, surged 20% on last year as shoppers looked for more budget friendly alternatives to prepare for party season.

What does this all mean for retail in 2024?

According to Stevenson, this Christmas was “arguably what everyone thought we were going to get [in 2022]” amid the thick of the cost-of-living crisis.

He says consumers were “much more discerning” with how they spent their money last month compared to the previous year which meant trading in general was “much harder”.

British Retail Consortium director of insight Kris Hamer adds December “capped a difficult year for retailers”.

“Black Friday sales ate into Christmas spending, while the high cost of living meant some households had to cut back on festive gifting.”

Despite the turbulent golden quarter, Stevenson says the fact that many retailers have reported performances in line and above expectations is “encouraging”.

He also believes that “things will get noticeably better for retailers” as easing inflationary passes through to consumers, stimulating more spend towards the second half of the year.

2023 was truly a cost-of-living Christmas, but the good news is the year ahead is looking up for retail.

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CEO Kevin Rountree said the business was “in great shape” despite trading during challenging economic times.

For the six months to November 26 2023, the gaming retailer’s revenue reached £247m in the 26 weeks to 26 November 2023 up from £226m in the previous year.

Operating profit also surged to £94.5m up from £83.6m in the same period the year before.

In a statement, the group, the record results were “driven by the launch of a significant number of new products across all of our IPs and the ongoing performance of products we launched in previous periods”.

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Chief executive Kevin Rountree added: “We continue to perform well during challenging economic times, delivering record group revenue, profit and dividends in the period. Morale is good at Games Workshop and our hobbyists are having fun too.”

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Tesco customers will be able to buy The Entertainer’s range of brands including Barbie, Nerf and LOL as well as their exclusive ranges Addo brand and Early Learning Centre in stores across the UK and ROI.

The toys range will be rolled out to 759 large stores in the UK and 94 in Ireland.

The expansion comes after the positive response to a year-long trial of the toy retailer in 35 of Tesco’s UK superstores.

Customers will be able to earn Clubcard points on in-store purchases from the Entertainer and benefit from Clubcard Prices promotions on toys.

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Tesco is also entering into a supplier agreement with The Entertainer for its Central Europe stores, which is a new market for the toy retailer.

The supermarket’s managing director of home and clothing Jan Marchant said: “We’re really excited to be bringing The Entertainer to Tesco stores across the UK and Republic of Ireland and introducing our customers in Central Europe to the brand.

“Our initial trial was really popular with customers and we look forward to introducing even more customers to the great range of toys from The Entertainer – making it easier for customers to pick up a gift for their little ones in store.”

The Entertainer group CEO Andrew Murphy added: “After a successful trial, we’re excited to be bringing The Entertainer’s fabulous range and market-leading value to even more communities across the country and to be doing so with the UK’s most admired retail business.”  

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