Next Q3 — Missing out on Millennials?
The consumer — what’s going on?
- So the Next Q3 results reveal the management are of the view that ‘the poor performance of the last six weeks may be indicative of weaker underlying demand for clothing and a potentially wider slowdown in consumer spending.’
- But attributing a 4.7% slump in NXT Retail sales to a wider consumer slowdown might not tell the whole story.
- Unreasonable weather aside, people are still buying clothes — they are just buying them differently.
- Enter the shift to smartphones and the post-millennial, on-demand, everything-now attitude of the modern consumer.
Evidence of spillover to the Leisure sector…
- People are going less to watch films at retail parks, according to RTN, which is where a no. of its sites are situated.
- Perhaps people are going less because they are instead sat at home, with their laptops and smartTVs?
- Where everything in the history of cinema is just a click away, from pre-Georges Méliès’ Le Voyage Dans La Lune right up to a bootlegged, piratebay copy of today’s latest blockbuster.
- Further evidence can be seen in the widespread migration of betting firms onto mobile platforms (see PPB’s update, covered in our morning email).
Ongoing changes irreversible…
- What if:
- Consumer spend is not slowing, it is just changing.
- These trends will only become more pronounced — the gap in tech-smarts between today’s children and young adults is just as big, if not bigger than the gulf in preceding generations.
- Incumbents must evolve or perish. Quality operators cannot rely on reputation alone.