ITV, Premier League, Rolls-Royce: Everything that matters this morning

Good morning and welcome to Marketing Week’s round-up of the news that matters in the marketing world today.

ITV’s Eat Them To Defeat Them campaign generates £63m in vegetable sales

ITV and Veg Powers’ Eat Them To Defeat Them campaign has generated £63m vegetable sales.

According to figures based on econometrics analysis of retail sales data from the campaign’s launch in February 2019 through to July 2020, vegetable sales have increased – with 517 million children’s vegetable portions being eaten.

The campaign has seemingly sparked an ongoing change in shopping behaviour, having a 2% to 2.5% positive impact on vegetable sales during the on-air advertising campaign across both 2019 and 2020, and a sustained impact on sales in the months that followed, according to date from IRI Worldwide.

Veg Power’s chief executive, Dan Parker, says: “It has never been more important for us all to eat our vegetables. Eat Them To Defeat Them makes veggies fun, it engages kids through the buzz of a brilliant TV campaign supported by activation in stores, schools and homes across the country and amplified by a host of celebrities and supporters on social media. These hard retail sales data confirm our extensive survey data – kids are eating more veg thanks to this campaign.”

The 2020 campaign, created by adam&eveDDB, returned to TV screens in February as a media alliance between ITV, Channel 4 and Sky, reaching 46 million people and 87% of households with children between four and nine. It was also supported by major supermarket and food brands including Aldi, ASDA, Birds Eye, Sainsbury’s and Tesco.

Eat Them to Defeat Them is now due to return for a third year in February 2021. It is part of ITV’s wider Better Health priorities to encourage 10 million people to take action in supporting their physical or mental health by 2023 and supports Veg Power’s mission to get kids across the UK to eat more veg.

ITV’s director of social purpose, Clare Phillips, says: “The magic of this initiative is coming at the issue from a child’s point of view, and making eating vegetables genuinely fun. We’re so grateful to all the supermarket and food brands, broadcasters and media partners that have made this campaign possible – getting over 500 million additional kids’ portions of veg into tummies across the country.”

Consumers rush to high-street after lockdown announcement

Consumers rushed to the high street after Boris Johnson announced new lockdown restrictions in England.

The four-day countdown to Thursday’s lockdown triggered a mini boom for the high street as consumers rushed to buy Christmas gifts.

Retail parks in England attracted more customers than in the same period last year, with footfall rising above 2019 levels for the first time in the pandemic, according to the retail data experts Springboard. High streets and shopping centres also experienced a surge in shopper numbers, although footfall was still lower than in 2019.

Over the four days footfall was 11% higher across all destinations than in the previous week. Shopping centres in particular have seen a big rise in the number of customers through their doors, with a 19.9% increase on Tuesday. High Streets and retail parks followed with a 19.1% and 18.4% uplift

Although footfall in England had been boosted recently by last-minute shoppers, overall it still remains more than 10% down on the same period in 2019.

Ad Association praises furlough extension

The Advertising Association has praised the decision of chancellor Rishi Sunak to extend furlough until the end of March as the second coronavirus wave and renewed lockdown measures threaten to drive up unemployment.

A spokesperson for the Advertising Association Spokesperson says: “We hope that these measures will provide much-needed stability and security for businesses and colleagues up and down the country. During the final quarter of this year – traditionally the Golden Quarter for retail and ad spend – and into next year, we need to do everything possible to help rebuild confidence among consumers. This can only be done if businesses are given the opportunity to plan effectively and that includes how and when they can advertise.”

In a major climbdown for the government after multiple changes to its economic support packages in recent weeks, the chancellor said the Treasury would continue to pay 80% of workers’ wages. Support for the self-employed will also be increased for November to January to a similar level.

Sunak said it was increasingly clear that the economic effects of the pandemic would be much longer lasting for businesses than just the duration of the second lockdown and this warranted the multibillion pound increase in wage support.

The AA spokesperson adds: “While Treasury support for industry is welcome, the prospect of continued lockdowns, a disorderly transition and exit from the European Union, a prolonged economic recovery, and the potential for new and draconian rules on the freedom to advertise mean that Government must do as much as it can to work with – and listen to – business over the coming months.”

Premier League to scrap pay-per-view

The Premier League is expected to scrap showing matches on a pay-per-view basis, after clubs acknowledged their almost universal unpopularity.

A widespread backlash against pay-per-view saw supporter groups raise hundreds of thousands of pounds for charity rather than pay the £14.95 the league had asked fans pay to watch their clubs on TV.

The league’s shareholder clubs are expected to confirm a return to the model of showing all games live, with the majority on the subscription channels Sky and BT Sport, while matches continue to be played behind closed doors. In September the BBC and Amazon Prime Video also showed one match each.

Although the switch is not confirmed, with clubs still to rubber-stamp the change and get the buy-in of broadcasters, the clear expectation is that pay-per-view will be dropped, according to Sky News.

Last month the Premier League’s chief executive, Richard Masters, said the £14.95 price was “defensible”, and BT also argued the case, saying it was only covering its costs in screening the matches. Figures for the first nine pay-per-view matches suggested that an average of 40,000 viewers had paid, with some matches recording far smaller numbers.

Rolls-Royce to cut 1,400 jobs as part of restructuring plans

Rolls-Royce is axing 1,400 jobs as it continues with restructuring plans that will see it cut 9,000 roles from its global workforce of 52,000.

The proposals include around 950 job losses in its civil aerospace division worldwide, including in the UK, and about a further 420 across its global facilities.

The company has been hit “hard” but Covid-19 and said the “painful” restructuring plans was to “safeguard the future of Rolls-Royce”.

A spokesperson says: “We are already undertaking the largest ever restructuring of our civil aerospace business and have today proposed further measures to protect our business.”

Rolls-Royce has been impacted by the collapse in air travel caused by the pandemic. In September, the company confirmed it was in talks to fundraise up to £2.5bn as Covid-19 continued to blight the aviation industry.

Thursday, 5 November

Sainsbury’s to refocus on food

Sainsbury’s is to put food at the heart of its operations, the company said in its interim results presentation, which also revealed around 3,500 staff may lose their jobs.

Changes to customer behaviour will see the closure of meat, fish and delicatessen counters – enacted in March as the first lockdown hit – made permanent.

The retailer is also increasing its capacity for online orders and deliveries, lowering prices on 1,500 products and trebling the number of new food ranges it launches, while cutting development times.

More convenience stores are to be opened, including 18 more ‘Neighbourhood Hub’ stores, which include beauty, clothing and general merchandise ranges.

The company will close 120 standalone Argos stores – shut temporarily in March – permanently. However, over the next three years it will open 150 Argos branches within Sainsbury’s supermarkets.

“Covid-19 has accelerated a number of shifts in our industry. Investments over recent years in digital technology have laid the foundations for us to flex and adapt quickly as customers needed to shop differently.

“Around 19% of our sales were digital this time last year and nearly 40% of sales are digital today,” says Sainsbury chief executive Simon Roberts, who has waived his right to any bonus this year.

Job cuts at John Lewis Partnership

The John Lewis Partnership is to shed up to 1,500 roles from its head office between now and April 2021. The change is the latest phase of its five-year plan to return it to sustainable profits by 2025.

The first two years of the plan will focus on strengthening the John Lewis and Waitrose brands, with £1bn of investments in customer service and experience, both in-store and online. This will require £300m of annual savings, achieved by making the company leaner and simpler.

The partnership will seek to find new roles where possible for those who are made redundant, and those who do lose their jobs will be given ‘market leading’ redundancy support. This will include up to £3,000 towards a recognised course or qualification.

“Our Partnership Plan sets a course to create a thriving and sustainable business for the future. To achieve this we must be agile and able to adapt quickly to the changing needs of our customers,” says John Lewis Partnership chairman Sharon White, adding, “Losing partners is incredibly hard as an employee-owned business.”

Lloyds Bank to axe staff

Lloyds Bank is to cut 1,070 roles in its retail banking and group transformation teams, though it will create 340 new roles in other areas.

A report from Sky News quotes a bank spokesperson as saying: “These changes reflect our ongoing plans to continue to meet our customers’ changing needs and make parts of our business simpler.

“We will help colleagues who are affected find new roles and redeployment opportunities wherever possible and everyone will be given access to a package of training and support designed to help them secure their next position, whether inside or outside of our business.

“Change does mean making difficult decisions and our focus remains on supporting our customers, colleagues and communities.”

Clarks rescued in £100m deal but jobs at risk

UK footwear brand Clarks has been rescued in a £100m deal by Hong Kong private equity group LionRock Capital. The Telegraph reports the deal will see the family that founded Clarks lose control of the group after 195 years.

Clarks will go ahead with a company voluntary arrangement (CVA) form of insolvency, with a meeting with landlords and creditors scheduled for next month. The retailer and manufacturer has said staff will continue to be paid, but up to 4,000 retail staff have been told their jobs are at risk.

A Clarks spokesperson says the jobs move is part of an ongoing strategy and not related to the CVA plans.

Clarks has 320 stores. It is seeking to keep them open, while paying no rent on 60 and switching the rest to a turnover-based rent.

“Clarks is one of the world’s most recognised consumer names and we look forward to working with the Clark family in extending its tradition of providing customers with top quality products and exceptional service,” says LionRock Capital founder and managing director Daniel Tseung.

First electric scooter race series launched

The world’s first electric scooter race series, the eSkootr Championship (eSC), is launching a social media and advocacy programme ahead of its inaugural season in 2021.

The series has appointed the Sports Marketing Group to raise awareness of the sport, which will take place at specially-designed circuits in ‘progressive’ cities around the world. Venues will include Azerbaijan, Hungary, Vietnam, Japan and Texas.

“Our early research shows eSC’s stated principles and aspirations are already appealing to a large section of fans that place as much importance on a sporting organisation’s values as they do on its ability to entertain,” says eSC CEO and co-founder Harg Sarkissian.

Wednesday, 4 November

Ocado partnership boosts M&S half-year results

Marks & Spencer’s half-year results show what the high street retailer is calling a “robust” performance in difficult times.

The recent link-up with Ocado has had an immediate positive impact, with Ocado Retail revenue up by 47.9%, boosted by increased market demand under social distancing restrictions. Overall, M&S Food adjusted operating profit was up by 19%.

Clothing and homeware (C&H) is in decline, with revenue down by 61.5% in the first quarter of the year and by 21.3% in the second. However, with online C&H figures showing some significant increases, up by 34.3 and grabbing the number two spot in market share, there is some good news for the beleaguered sector.

Group revenue is down 15.8%, with an adjusted loss before tax of £17.4m and statutory loss before tax of £87.6m.

“In a year when it has become impossible to forecast with any degree of accuracy, our performance has been much more robust than at first seemed possible,” says M&S CEO Steve Rowe.

“This reflects the resilience of our business and the incredible efforts of my M&S colleagues who have been quite simply outstanding. But out of adversity comes opportunity and, through our ‘Never the Same Again’ programme, we have brought forward three years change in one to become a leaner, faster and more digital business.

“From launching M&S Food online with Ocado to establishing an integrated online business division ‘MS2’ to step-change growth, we are taking the right actions to come through the crisis stronger and set up to win in the new world.”

High street retailers extend hours ahead of lockdown

Retailers including John Lewis, Marks & Spencer and Currys PC World are extending opening hours ahead of tomorrow’s month-long lockdown across England.

There are also reports of restaurants, hair salons and other non-essential services taking on a wave of extra bookings before the latest restrictions come into effect.

With customers pictured queuing up outside Primark in city centres, it’s hoped that the longer hours will help retailers cope with demand.

Founder of toy retailers the Entertainer Gary Grant tells the BBC that the rush to buy came from concerns about missing out over Christmas shopping: “When the closedown announcement was made on Saturday, the penny finally dropped for people that if you take away four of the eight weeks left before Christmas, it is going to make shopping quite hard.

“Also there is concern toy retailers won’t be able to meet the massive increase in online orders because of courier constraints.”

Virgin Atlantic boss calls for passenger testing ahead of Christmas

Virgin Atlantic CEO Shai Weiss has told the government it needs to introduce a passenger testing system in time for a potential holiday rush if and when restrictions are eased ahead of the Christmas holidays.

“The UK government is significantly underestimating the efficacy of passenger testing, therefore it’s essential that the government’s Global Travel Taskforce acts swiftly to implement a testing regime to open up the skies safely, which industry has proven it can deliver without diverting vital NHS resources,” says Weiss.

“By the time the new national restrictions begin to ease in December, we need to have a passenger testing regime in place in the UK.

“If the introduction of testing is delayed, it will result in further distress across the travel, tourism and aviation industries, urgently driving the need for sector-specific support.”

The Guardian brings in new marketing boss

Guardian Media Group is appointing Paul Kanareck as chief commercial and customer officer to lead its global reader revenues strategy and oversee print publishing, marketing, live events, masterclasses and ecommerce.

Kanareck’s career has included working as managing director of online at ITV, where he oversaw the launch of the ITV Hub streaming service, building an audience of 30 million registered users, and ITV Hub+ – the first broadcaster subscription service in the UK.

Before joining ITV, Kanareck was involved in a number of startups and held senior roles at Fremantle Media, Channel 4, Vodafone and NM Rothschild. He has worked across digital, creative and direct-to-consumer industries for the past 20 years, including as managing director of Wizarding World Digital (a joint venture between Warner Bros and JK Rowling), where he led the digital arm of the global Harry Potter franchise.

“I’ve been a life-time and devoted reader of The Guardian and it is a privilege to be joining at such a critical time,” says Kanareck. “Accelerated digital disruption is increasing the need and demand for high-quality and independent journalism whilst challenging all aspects of the business.

“The Guardian has a rich history of innovation and it has the fundamental talent, values and audience relationships to thrive globally.”

Deliveroo steps up preparations for flotation

Online food delivery brand Deliveroo has reportedly enlisted the help of Wall Street banker JP Morgan to assist with an expected flotation next year.

Sky News says the company is aiming to go public in early 2021, perfect timing for one of the brands expected to enjoy an upswing in business during the month-long lockdown in England, beginning this week.

Deliveroo has already called upon the services of Goldman Sachs as it prepares to go public.

Tuesday, 3 November

Burberry teams up with Marcus Rashford on youth charity project

Burberry is working with Manchester United footballer Marcus Rashford on a project to fund youth charities and help disadvantaged young people.

The fashion house will provide grants for two youth centres Rashford attended when he was young – Norbrook Youth Club and Woodhouse Park Lifestyle Centre. It will also provide support for New York-based, arts-after-school non-profit Wide Rainbow and the International Youth Foundation.

A further 15 youth centres in London will also receive grants while Burberry is providing donations to FareShare to fund more than 200,000 meals for those on low incomes.

The partnership will also see Rashford publish a letter he wrote to his 10-year-old self. In it, he will speak of the friends and neighbours who caught him as he fell and that there is no need to feel ashamed. He adds: “For a young boy who says so little, one day you will have a voice that speaks for many.”

Burberry’s vice-president of corporate responsibility, Pam Batty, says: “Supporting communities has long been a part of what Burberry stands for, from our founder Thomas Burberry’s philanthropic efforts, to our current commitments that are making a positive impact on thousands of lives around the world.

“This year has substantially impacted young people, and we wanted to mark this festive season by giving back to the incredible youth centres and charities making a life-changing difference through providing safe spaces and vital support.”

Primark sales and profits fall amid Covid-19 closures

Primark has reported a decline in both sales and profits for its full-year, blaming the closure of its stores during coronavirus lockdowns across Europe.

Primark’s owner Associated British Foods says operating profits were down 60% to £362m for the year ended 12 September. Revenues fell by 24% to £5.8bn, with like-for-like sales declining by 12% in the UK, 17% in Europe and 10% in the US since reopening.

The business has already warned that it expects to take a £375m hit from lost sales due to the latest lockdown in the UK, which will see all non-essential shops forced to close from Thursday (5 November) for four weeks. Unlike many high street rivals, Primark does not have an ecommerce operation to mitigate the effects of store closures.

Nevertheless, ABF CEO George Weston believes sales of £2bn since shops were reopened shows the “appeal” of its offering.

He says: “Following a three-month closure, Primark delivered a robust performance, receiving an overwhelmingly positive response when it safely welcomed customers back to its stores. Uncertainty about temporary store closures in the short-term remains, but sales since reopening to the year end of £2bn demonstrate the relevance and appeal of our value-for-money offering.”

Pringles loses its moustache for Movember

Pringles is changing its logo for the first time since 1968 as part of a one-year partnership with charity Movember.

The tie-up will see Mr P – the face of Pringles – take part in the month-long challenge by shaving off his moustache. Created by We Are Social, the makeover is being promoted across social media channels to raise awareness of the charity’s work.

Pringles will also be donating £75,000 to the charity and funding some of its mental health tools, including the Movember Conversations tool. Using Pringles’ ‘Pop, Share, Chat’ ethos the partnership aims to highlight the importance of conversations around men’s mental health and encourage others to take part in the Movember challenge, which asks people to grow a moustache during November.

Ad industry ‘failing’ to represent older people, says new research

The advertising industry is “failing” to represent older people and reinforcing damaging stereotypes about ageing, according to a new report.

The research by the Centre for Ageing Better found that many adverts portray older people as sad and lonely – usually portraying them sitting in a chair or staring blankly out of the window accompanied by melancholic music. Death and decline are common themes in adverts about ageing.

Plus, adverts for ‘anti-ageing’ products show people speaking of avoiding the negative effects of ageing, reinforcing the idea that ageing inevitably results in decline and is something to fight against.

The Centre for Ageing Better is calling on advertisers to avoid stereotypes, saying it makes business sense as the over-50s make up a significant proportion of consumer spend. It also wants better stock imagery to better capture the realities of later life.

Centre for Ageing Better CEO Anna Dixon says: “Over-50s make up over half of consumer spending, and yet can only expect to see people their age represented in adverts about pensions or funerals – or for products that claim to ‘fight’ the ageing process. There’s a huge lack of representation of older people in mainstream advertising, so when the few adverts that do show older people play to stereotypes, these become deeply reinforcing.

“These outdated stereotypes have a damaging impact, affecting how individuals feel about themselves and how we as a society think about later life. But they also risk alienating customers and missing out on potential sales to this age group.”

Second lockdown fuels concerns over double-dip recession

Economists are predicting the UK economy could decline by between 7.5% and 10%, while job losses will soar amid a second lockdown in the UK.

The economy shrank by 20% in April – the most severe month of the first lockdown. And while economists are not expecting the fall to be as bad this time, in part because it has less far to fall, there could still be double-digits decline as non-essentials shops, pubs, restaurants and gyms are forced to shut.

Fears over a double-dip recession have led Bank of England policy makers to consider a new swathe of quantitative easing that could see up to £100bn pumped into the economy.

CBI director general Dame Carolyn Fairbairn has demanded more clarity on the government’s strategy for business, saying many businesses have been forced to act on the basis of “speculation and leaks and surmise”. She called the second lockdown “truly devastating for business”, speaking at the CBI’s annual conference, warning many face a “bleak winter”.

And the Advertising Association CEO Stephen Woodford has warned of its impact amid a “critical point” for the industry.

“This latest development will have an adverse impact on the vital Christmas trading period and our industry must rapidly adapt and flex once again to protect businesses, jobs and the wider economy. The sooner the lockdown can be reasonably lifted, the better and, in the meantime, business need more clarity in order to plan,” he says.

“We urge the Government to set out the clearest possible direction of travel over the coming months in order for jobs to be protected and for the economy to function as best it can whilst limits are placed on it due to the public health challenges we all face.”

Monday, 2 November

Ryanair reports first summer loss in decades

Ryanair reported a loss for its key summer period for the first time in decades as it was hit by Covid-19.

Europe’s largest low-cost airline said Covid-19 restrictions pushed passenger numbers down 80% in the six months to September 30, when it typically makes most of its annual profit. Instead, it posted a loss of £178.2m (€197m) for the first half of its financial year versus profit of €1.15bn in the same period last year.

The airline has only posted one annual loss – in 2009 – in the last three decades and it still made a small profit in the summer of that year.

The airline declined to forecast profit for the full financial year ending 31 March, but said it expected a second-half loss greater than the first.

Ryanair did reaffirm plans to fly 38 million passengers this financial year compared with the 149 million of the same period last year. However, it said the number could fall further “if EU governments continue to mismanage air travel and impose more uncoordinated travel restrictions”.

Retailers to be hit as Christmas footfall drops

Retailers are to be hit by a difficult Christmas as footfall drops and shoppers spend less, according to new predictions.

Footfall across all UK retail destinations is predicted to decline by 62% over the six weeks from Sunday 22 November to Saturday 26 December, according to retail researchers Springboard.

The figure is nearly double prior forecasts of a 32% fall, as a result of the new lockdown announcement.

It warned that if the national lockdown is extended throughout December, footfall could drop by more than 80% – the same as the decline at the height of the pandemic in April.

Consumers also intend to spend less, with 63% of respondents planning to not spend as much this year compared to last, with only one in 10 people intending to buy more presents.

As there will be more focus on staying at home, a third of shoppers intend to spend more on food and groceries.

The survey of 1,000 shoppers across the UK identified that 61% of consumers intended to spend more online while only 20% plan to spend more from bricks and mortar stores. However, this was carried out before the national lockdown announcement.

The survey also found that 68% intend to start Christmas shopping earlier in case of queues and Covid-19 restrictions, while 62% intend to spend more in local stores this year.

Springboard’s insights director, Diane Wehrle, says: “The national lockdown restrictions will now see our struggling retailers miss out on the start of essential weeks of Christmas trading, including Black Friday weekend as non-essential retail remains closed until 2 December at the very earliest. Although restrictions may ease in December, this is by no means guaranteed as the second wave of covid19 ripples throughout the UK.

“Most consumers are likely to have completed a vast amount of shopping online in advance and may well have fears of returning to bricks and mortar stores, however retailers need to be given the opportunity to reopen ahead of Christmas.”

Dr Martens champions grass-roots culture hit by Covid-19

Dr Martens will be supporting up-and-coming creative talent and culture in a new content series.

Dr Martens Presents launches in November and will kick off with a partnership an independent radio station in Liverpool, Melodic Distraction, that provides a platform for the city’s emerging talent.

The shoe brand will support the station, who have been forced to leave its studio due to the gentrification, as it moves to an interim home and fundraises for its next permanent space.

For its first six months, the project will focus on supporting local creative networks that are facing challenges due to Covid-19 with a total of eight initiatives.

Agency partner Amplify will capture each tie-up on film and build a content series that will look at the artist’s creative process, community and cultural cause.

Dr Martens UK communication and events lead, Amber Henry, says: “Dr Martens Presents isn’t about sales for us, it’s about celebrating our heritage and demonstrating our values. We want to create deeper and more meaningful connections with our community and show what we stand for, and right now, grassroots artists, creatives and collectives really need our support.”

Sainsbury’s could sell banking arm

Sainsbury’s new chief executive is considering a sale of the company’s banking arm as record low interest rates continue to threaten its profitability.

Simon Roberts, who took over from Mike Coupe as chief executive in June, has sought advice on a potential sale of Sainsbury’s Bank, according to Sky News.

The possible sale of the banking unit, which provides products including mortgages, credit cards and insurance to more than 2 million customers, follows a difficult period for small and medium-sized banks. Most recently, the Covid-19 has triggered a slowdown in demand for travel money services and cashpoints.

A sale would be Roberts’ first big move after taking over. In September last year Sainsbury’s unveiled plans to cut the group’s annual costs by £500m over five years by measures that included closing some Argos stores and reducing financial support for its bank.

Sainsbury’s Bank reported a pre-tax profit of £5m in the year to February 2020, up from a pre-tax loss of £34m in 2018-19.

Marriott International fined £18.4m

Marriott International has been fined £18.4m by the Information Commissioner’s Office for failing to protect customers’ personal data.

The hotel estimates that 339 million guest records worldwide were affected following a cyber attack that took place in 2014. The attack remained undetected until September 2018, by which time the company had been acquired by Marriott.

The personal data involved differed between individuals, but may have included names, email addresses, telephone numbers, unencrypted passport numbers, arrival/departure information, guests’ VIP statuses and loyalty programme membership numbers.

The ICO’s investigation found there were failures by Marriott International to put appropriate technical or organisational measures in place in order to protect the personal data being processed on its systems as required by GDPR.

Information Commissioner, Elizabeth Denham, says: “Personal data is precious and businesses have to look after it. Millions of people’s data was affected by Marriott International’s failure. Thousands contacted a helpline, while others may have had to take action to protect their personal data because the company they trusted it to had not done so.

“When a business fails to look after its customers’ data, the impact is not just a possible fine. What matters most is the public whose data they had a duty to protect.”