CMOs optimism over budgets at odds with C-suite colleagues
Some 44% of CMOs say they have experienced mid-year budget cuts, with 10.7% seeing cuts of more than 15%. But the majority expect the post-Covid-19 economic curve will be V-shaped.
This is despite the fact that almost 60% of CFOs are building scenario plans that include a second wave of the disease. And that 60% of CEOs believe there will be a U-shaped recession, while 22% expect to see a double-dip, W-shaped recession, according to a World Economic Forum survey.
Footfall surges as restaurants and pubs reopen
Retailers in England recorded an increase in footfall as hairdressers, restaurants, pubs and bars reopened.
The number of people visiting high streets was up by 19.7% on Saturday compared to the previous week. And after 5pm, footfall was up 35.8% on last Saturday.
However, footfall remains lower than the same week last year. High streets in England were down 56% year on year and 75% lower in central London.
On Sunday, footfall was up 48.9% compared to the previous week, but 53.4% down on a year ago.
Majority won’t return to old shopping habits post-coronavirus
Just 16% of UK consumers say they intend to return to their old shopping habits post-lockdown as coronavirus looks set to have a lasting impact on how people shop.
The survey of 2,000 consumers found that online purchasing accounted for 62% of all shopping during lockdown, compared to 43% before. And while that figure will drop back, shoppers expect it to account for 51% of their shopping going forward.
Fear of the virus is in part driving this, with 48% of shoppers scared of visiting stores. But there are also more familiar reasons for shopping online. Some 61% say free delivery is a key purchase driver, ahead of availability on 57% and price on 53%.
Free returns (28%) tops the list of changes shoppers would most like to see.
Source: Wunderman Thompson Commerce
New car registrations still down a third
The UK car market saw registrations decline by more than a third (34.9%) year on year in June as the market began a tentative restart following more than two months of lockdown.
The decline was an improvement on the 89% drop experienced in May, when car dealerships were forced to close. But it means the car market is down 48.5% for the year to-date, with just 616,000 units sold.
Private demand proved more resilient than business, with sales down 19.2% in June. Fleet sales fell 45.2% and business by 52.6%.
Media spend to decline 7.5% this year
Total media ad spend is predicted to decline 7.5% year on year in 2020 to £21.03bn, however it will rebound by 15.3% next year to £24.25bn – above 2019 levels.
‘Traditional’ media is expected to record a 22.6% fall this year, assuming no significant second wave of coronavirus infections.
Digital, meanwhile, is expected to be flat at 0.3% growth to reach £15.08bn. This will help it gain 5.6 points in market share, accounting for 71.7% of total spend in 2020.