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The impact of Staycations on the UK Grocery Sector

Tom Cowie  |  10 March 2021

Industry Insights  / The impact of Staycations on the UK Grocery Sector

2020 has been the year of staycations. Lockdowns, travel restrictions, and Brexit deterred people from booking holidays abroad. In this new era of travel, how will the summer look with different holidaymakers and options in the UK? Will supermarkets like Iceland be heavily relied on as people travel domestically?

Travel Trends and Predictions for 2021
The number of people who are struggling financially has increased in the last year as workers were put on furlough, had their working hours reduced, and some even faced unemployment. Even if countries opened up for international travel this summer, it would be unaffordable for many.

People have become more conscious about their health and aware of the importance of getting vaccinated. However, there are no indications that they will be delivered throughout the population by the time the summer season arrives this year making international travel a risky choice.

The tourism industry is not expected to return to pre-COVID levels at the end of 2021, even if everyone was fully vaccinated. VisitBritain predicts that people will spend £61.7bn on domestic tourism this year. Even though it only equates to 67% of 2019’s numbers, it is still 79% higher than it was in 2020. It is expected that people will spend £18bn on domestic overnight tourism, an increase of 82% in comparison to 2020.

£44.6bn will be spent on leisure day trips, outgrowing 2020’s numbers by 82%.

Last minute bookings have the potential to become a trend. Living with uncertainty has made it difficult to plan, risking cancellations and losing money in the process. Those who are working from home may crave a ‘Flexication’, were workers want a change of scenery while working; staying in hotel rooms or B&B as part of their working week.

The Rise of Staycations
Travel within the UK is not allowed, but accommodation without shared facilities are allowed to reopen on the 12th of April. By the 17th of May, hotels and B&B’s can reopen, depending on case numbers and vaccination distribution.

B&B
Since a revised regional tier system was put into place in November, HolidayCottages.co.uk saw their demand increase within 3 weeks by more than 250% year-on-year during December and the Christmas break.

Caravan parks and Camping
According to the UK Caravan and Camping Alliance, up to £9.3bn is generated by visitors each year, adding to the UK economy a gross value of £5.3bn. Camping is deemed safer, being one of very few sectors that improved due to the garden camping trend.

Camping retailer OLPRO reported a 32% increase in website traffic, 53% increase in online orders and 13% increase in total revenue.

Van Conversions
With travel restrictions in place for most of 2020 and under government’s guidance to avoid travel outside the country, Campervans and vans for DIY conversion sales have skyrocketed. Campervans give the feeling of freedom to travel while having a home, with a feeling of safety as one can easily socially distance themselves in remote places within the country. Campervans increase travel flexibility and are a good investment for those who travel often.

Volkswagen vans sold particularly well as they do not devaluate that quickly. Bath VW Campers reported a staggering 100% increase in sales. New car sales may have decreased, but the camper van conversion industry has seen a rise in demand and sales. The campervan community continues to grow across the world, with 9.3 million Instagram posts tagged with the hashtag '#vanlife' as of March 2021. In addition, Auto Trader conducted a survey with 2,000 website users and 40% stated that they were planning a staycation, leading to predictions that caravan holidays could match hotel stays this year.

What will summer 2021 look like?
Consumer habits have changed drastically in the last year. During the summer, many were interested in eating lighter and healthier. Barbeques looked very different in 2020 with the addition of good quality meat and vegetables. Summer trends included an increase in fish consumption, and more people venturing out and trying new cuisines.

In comparison to 2019, barbecuing increased by 63% with 17.4 million barbecues lit up in 2020.

With the third lockdown nearing its end before the summer, British consumers are increasingly interested in supporting homegrown produce, local businesses and farmers. People became more aware of their environment, food origin, production, and processing during the pandemic. This increase in awareness influenced many to make sustainable choices and create their own food, such as preserves and fermented foods. Wholefood products are also seeing an uptick in popularity, with items like coffee-flavoured bars, granola and smoothie boosters.

A total of 4.7 million people were on the government scheme at the end of January. About 5 million workers are still on furlough, with no clear indication of how many will still be able to work once the scheme is over in September. With many unemployed and relying on foodbanks, it becomes increasingly clear that not everyone will be financially ready to head back to restaurants and pubs once they reopen.

While some people are eager to return to their local pubs and restaurants, many will continue to purchase their food and drink from supermarkets. It is expected that most will be enjoying this summer in the form of staycations, barbecues, home food reunions and picnics. After a year of dealing with the pandemic and experiencing three lockdowns, everyone is looking forward to enjoying summer with family and friends and going on a staycation.

Summer at Iceland
Iceland is well prepared for the summer season, offering fresh and frozen produce for shoppers at a good price without compromising quality. Visiting family and friends this summer can be done with ease by utilising Iceland’s extensive and varied range of summer food. Iceland is the best one-stop-shop; customers can purchase everything they need for barbecues, picnics, and gatherings with wide ranges of meat, chicken, fish, vegetarian and vegan products, drinks, ice creams, ice lollies, and more. For those looking to have fun on a budget, Iceland also shares their 7 Deals of the Summer displaying the 7 top offers for the week.


Looking to heat up sales this summer? Please Request a Proposal or email hello@IcelandMedia.co.uk for more information.
Iceland Supplier Optimisation Team Blog: Sustainability Matters, discusses going green in grocery.
by Rachael McMahon 30 March 2021
Living Sustainably- The Facts In 2019, the Intergovernmental Panel on Climate Change (IPCC) , reported how a temperature rise of 1.5 degrees Celsius will negatively impact the world. Supporting the beef industry contributes to climate change ; the production of meat, dairy, and immense water usage to grow food for the animals are all factors that lead to a high carbon footprint. Making improvements on food production, transforming eating habits and reducing food waste can help fight climate change. These adjustments need to come from governments and societies soon, as the impacts on the planet will soon be irreversible. The pandemic and time in lockdown have caused many to rethink their relationship with food. Restrictions of movement and fear caused food security worries and fuelled a new passion for home cooking. Lockdown has even influenced people to increase their vegetable consumption. The Next Generation’s Priorities In order to understand the impacts of the pandemic, Strategy& PwC surveyed a total of 2,000 adults about their ever-changing eating habits and shopping behaviours. About 15% (one in six shoppers) stated that health was the most important driver for their diet change, followed by ethics, sustainability, and animals. 22% of Generation Z and Millennials (18–34 years) were more likely to change their habits for environmental and ethical reasons, in comparison to only 10% of participants aged 55 and over. As younger generations are changing their habits, the retail industry needs to adapt to new consumer and environmental demands. Carbon Emissions Reduction The social economic disruption, lockdowns, and work from home situations have led to global greenhouse gas emission reduction of nearly 2.4 billion , a 7% drop from 2019. While these emissions are predicted to rebound in 2021, governments are encouraged to prioritise policies that tackle climate change in their upcoming economic recovery plans. More adults grew conscious about the environment in lockdown, as seen in a study commissioned by the global hygiene and health company, Essity . During lockdown, 81% of adults stated that they worried more about the planet’s future. A further 50% of these adults have converted these concerns into actions by buying less plastic, recycling more often, and taking shorter showers. Going Vegan and Buying Sustainable Products The Veganuary concept started in 2014 in York, encouraging people to follow a vegan lifestyle for the month of January. The number of participants has doubled since 2019; 500,000 people signed up to participate in Veganuary this year, with 125,000 participants from the UK . Iceland was one of the British supermarkets to participate in this challenge, promoting the many benefits of a plant-based diet. Awareness surrounding health and ethics has increased during the COVID-19 crisis, as restrictions do not allow people to travel long distances to shop. People have realised the importance of health, exercise and well-being. A survey of 3,000 shoppers conducted in April 2020 found that 64% of consumers focused more on limiting food waste. Half of the consumers surveyed said they were opting for healthier options, with another 45% stating that they are conscious about purchasing items that are more sustainable. Iceland are Doing IT Right Sustainability has become a major driver in consumers’ decision-making processes. Supermarkets and brands have recognised the acceleration of environmental awareness and are working to meet their consumers’ needs and expectations. The Doing it Right campaign is at the heart of sustainability. Iceland supports the UN’s Sustainable Development Goals (SDG), following the five principles: • Caring for the planet by enhancing the global environment through leading initiatives • Supporting the communities by paying taxes and through their Charitable Foundation • Selling quality food at a great value • Working with suppliers to build mutually beneficial long-term partnerships • Valuing our people as family business Iceland’s focus is to wipe out poverty, fight inequality and tackle climate change in the run-up to 2030. Iceland’s own label products have not contained palm oil since 2019. They have reduced their plastic packaging and plans to remove plastic packaging from their own label completely by 2023. Adding to all Iceland’s commitment of being more sustainable, Managing Director Richard Walker has written a book on how to help other businesses become more sustainable. The book ‘The Green Grocer: one man’s manifesto for corporate activism’, discusses how it is possible to be successful in sustainable initiatives while being pragmatic about profit and staying committed to customers and employees. The Iceland Media team provides Iceland Suppliers with a full range of media opportunities that influence Iceland customers, and help brands grow by drawing attention to their environmental and socially responsible products and brand values. Interested in booking a campaign in Iceland stores or online? Request a proposal or send an email to hello@icelandmedia.co.uk .
by Iceland 21 March 2021
Richard Walker, Managing Director of Iceland Foods will share his unique approach to leading a sustainable business agenda in a new book, which will be published in April. The Green Grocer sets out Richard’s learnings since he embarked on Iceland’s ‘Doing it Right’ plan in 2017 and his practical advice for business of all sizes that want to make a positive difference.
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