Business
Shopping is going to be a lot more painful in 2022
Bloomberg News The great rotation in consumer spending continues.
When the world shut down in 2020, we bought what we needed to stay home: Pelotons, pets, sweatpants and sourdough starter. In 2021, our shopping reflected reopening: We put on lipstick again, whitened our teeth and swapped loungewear for chinos and dresses. Most consumer, retail and luxury groups had a pretty good year.
But consumer sectors are now facing another shift in habits, and this one may not be as favorable.
The omicron variant is a headwind for travel, hospitality and retail. Even if the latest wave of infections peaks relatively soon, there are other perils ahead — from lockdown savings being exhausted just as prices are rising to tighter monetary policy and higher borrowing costs, something consumers haven’t had to endure for several years.
Already, the cracks are beginning to show.
Even before the surge in omicron cases, there were signs of consumers becoming more cautious. British retailer Currys Plc, for example, said demand for its electronics was weaker than expected. And amid fewer people heading into city centers and offices, famous London department store Harrods brought forward its sales from Dec. 26 (Boxing Day) to Dec. 17. Other metropolitan areas, such as New York City, have also been suffering.
But it’s not just the new variant weighing on shoppers’ minds. U.S. retail sales less than forecast back in November. True, some spending may have been pulled forward to October, when many retailers ran special offers and consumers shopped to avoid product shortages. But the real concern is that rising prices have finally begun to take their toll.
Up to now, consumers have been able to withstand accelerating inflation on everything from coffee to coffee tables. Many were flush with savings after being homebound for much of the past two years. But reopening economies drew down that cash.
And now prices are rising at an even faster clip. Most consumer-goods companies are already negotiating price hikes with retailers or will start in January. With inflation coming through in commodities from oil to packaging, that will make for some difficult conversations. It is also likely to lead to further spikes. U.S. food prices rose 6.1% in November, the highest level in 13 years. We could see a similar escalation in Europe.
Although wages are increasing too, U.S. inflation is outpacing it by some distance: The gap between the two is the biggest it’s been for more than 20 years.
Some of the caution Currys has seen may reflect a spending squeeze already under way in Britain. After all, a new laptop, iPhone or oven is a large purchase. In the U.S., Lowe’s Cos. said it expected the pandemic home improvement boom to finally wane.
Many people spent big during the pandemic, especially on new homes. This might be another source of weakness as interest rates rise. Higher borrowing costs are expected in 2022, which could lead Americans and Europeans to pull in the purse strings.
While large, expensive items may be the first to feel the pinch, other areas will eventually suffer too. Consumers have a tendency to trade down from big brands to cheaper private labels, or switch from meat to vegetable-based meals, when stressed about their wallets. Cutting back on indulgences that grew during the pandemic, such as ordering takeout, would be another way to save money.
There are some silver linings. Although the arrival of omicron is hurting travel and leisure, it may, in the short term, ease some of the forthcoming consumer pain. Working from home again means saving money on commuting and lunches out. Hopes for a “revenge Christmas” this year — going all out to make up for a bleak 2020 holiday — are already looking fragile, as some people cancel their restaurant reservations and plans to hold large gatherings.
January is always a grim month for retailers, restaurants and bars. It’s when credit card bills land and trends such as dry January and Veganuary take hold. But this year it could be even more brutal.
It’s a timely reminder that, like stocks, consumer rotations don’t only go one way. – Bloomberg
With the Asia Rugby World Cup Qualifiers in the pipeline, a sense of momentum is building around the Sri Lanka national rugby team — not just on the pitch, but in the boardroom and sponsor suites as well. In a media event that blended patriotic fervor, corporate pride and cautious optimism, top officials from Sri Lanka Rugby (SLR), key sponsors, and the players themselves gathered in Colombo to lay out their ambitions ahead of a crucial series of international fixtures.
At the heart of the event was the announcement of Maliban as the Platinum Sponsor of the Sri Lanka rugby team for the “Asia Rugby World Cup Qualifiers powered by Maliban,” with support from other partners like Commercial Bank, Aitken Spence Travels, Power World and Edge Nutrition.
But beyond the fanfare, the event also showcased a deeper narrative: a sport undergoing transformation, a governing body realigning with international standards and a team preparing to reassert itself on the Asian rugby stage.
Responding to The Island Financial Review, Retired Senior DIG Latiff, chairman of the Sri Lanka Rugby Task Force, addressed the pressing issue of rugby governance, assuring both World Rugby and the local public that structural reforms were well underway.
“By vote of appeal, I did file an order that the new Constitution shall be approved by World Rugby. The foundation is the Constitutional Review Group, Latiff confirmed. “The new Constitution has already been published and registered. That’s why we’re having this programme as a one-time measure — we are on track.”
He further elaborated that the election for the new Executive Director was impending. Once appointed, the Executive Director will oversee membership registration and the eventual conduct of an Annual General Meeting (AGM), likely within 90 days.
Latiff also addressed the elephant in the room — player payments and fund utilization, noting that “internal costs must be covered first,” but that mechanisms were in place to ensure players were recognized and rewarded.
Rodney Gibbs, former assistant coach of All Black’s Seven, now Sri Lanka’s head coach, a recent arrival tasked with pulling the team together in time for the qualifiers, struck a tone of cautious optimism:
“I’m really impressed with the boys, he said. “We’ve had a tough few weeks, but we’ve kept things simple and focused on why they’re playing — who they’re playing for.”
Team captain Tharinda Ratwatte echoed those sentiments in his address, thanking the sponsors and calling on fans to show up in numbers for matches
“We’re as ready as we can be, he said. “This is the start of our campaign for the World Cup qualifiers, and I promise that my team and I will give our best for the nation — no matter what others bring against us. We are a resilient nation.”
Maliban’s Group Marketing Director Mulinda Weerasinghe said: “This is a brand with 70 years of history. We’ve always believed in supporting the spirit of Sri Lanka, he said. “We’ve already conquered 40 countries as a local brand and now we’re tying that international ambition to sport — starting with rugby.”
Isuru Tilakawardana, Deputy General Manager, Commercial Bank, reflected on why the bank chose to step up as an official sponsor:
“Sri Lanka rugby has done really well recently, and these youngsters have tremendous potential. As the leading private sector bank in the country, it’s our duty to support such sports — especially one that mirrors the qualities our country needs: energy, courage, and efficiency.”
The media event also sparked discussions on how Sri Lanka Rugby could further commemorate its progress. The island Financial Review floated the idea of issuing a first-day postal cover or even a commemorative coin to mark the team’s qualification to the Asian qualifiers. Senior DIG Latiff responded with interest, though cautiously:
“Yes, it’s a significant occasion. First-day covers usually mark major milestones. If we qualify for the World Cup, we’ll definitely look into it — but even now, it’s worth considering.”
In terms of talent, SLR High Performance Rugby Director Inthi Marikar, responding to queries addressed concerns about whether Sri Lanka was producing players on par with past legends like S P D Silva or Charles Wijewardene.
Marikar added: “No disrespect to players of the past, but the game has evolved, he said. “The current athletes have skill levels far beyond what we had. Rugby today is faster, more structured, and requires much higher technical proficiency.”
By Ifham Nizam
Daraz has been named Sri Lanka’s Most Loved E-Commerce (Retail) Brand in the 2025 edition of LMD’s Brands Annual – a prestigious ranking based on independent nationwide consumer research conducted by PepperCube Consultants to honour the island’s most trusted and emotionally resonant brands.
This accolade reaffirms Daraz’s position as the nation’s leading online shopping destination and is a resounding endorsement of its unwavering dedication to delivering an unmatched online retail experience. With its expansive product portfolio, customer-first policies, and seamless tech-driven interface, Daraz continues to transform how Sri Lankans shop, live, and connect with the digital economy.
“We are honoured to be recognised as Sri Lanka’s most loved e-commerce brand. This recognition reflects the deep trust and loyalty of our customers across the island,” stated Ehsan Saya, Managing Director, Daraz Sri Lanka. “It fuels our mission to democratize e-commerce and bridge access to essential goods and services – while supporting local entrepreneurs and SMEs on their digital journey.”
Bank of Ceylon (BOC) successfully hosted a thought leadership session titled “Future of Finance” on June 11 at its head office. The event brought together industry leaders and finance professionals to explore the shifting landscape of finance driven by digital transformation, evolving customer expectations, and regulatory changes.
The session was attended by the BOC chairman Kavinda de Zoysa (FCMA CGMA), Andrew Harding (FCMA, CGMA), Chief Executive – Management Accounting at AICPA & CIMA, Ms. Irene Teng – Executive Vice President Global Markets AICPA & CIMA Venkkat Ramanan (FCMA, CGMA) – Vice President, APAC AICPA & CIMA and Tharindu Wijewardana (ACMA UK, CGMA) – Country Head, AICPA & CIMA Sri Lanka, BOC’s Corporate and Executive Management, BOC staff along with representatives from CIMA.
The keynote address delivered by Harding provided valuable insights on how the finance profession is being redefined in the digital age and the critical role of agility and innovation in financial leadership. A compelling panel discussion followed, featuring Harding and Kavinda de Zoysa who shared their views on the future of the finance function. The discussion, moderated by Nilantha Meneripitiyage, Chief Risk Officer of BOC, delved into key themes including the integration of advanced technologies, shifting regulatory frameworks, and the growing need for customer-centric financial solutions. The conversation was further enriched, offering perspectives on talent transformation, data- driven decision-making, and the increasing importance of sustainability in finance.
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