2020 VISION: how retail's continued transformation will look in 2020 and beyond - Retail Connections
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
2020 VISION: how retail’s continued transformation will look in 2020 and beyond
The future of stores in
2020 will primarily be to
deliver “what Amazon
can’t” in the form of
elevated experience,
brand story and
provenance, infused with
emotion and garnished
with high-value, data-
driven human interaction.
ONEONE
VISION: how to
VISION: howre-energise
to re-energise
retailretail
in 2019
in 2019
and beyond
and beyond
THE STATE OF RETAIL: EXECUTIVE SUMMARY 2019 has been described as the worst year on record for the industry by the British Retail Consortium, capped off with poor peak-trading performances from major high street chains including John Lewis, Marks & Spencer, and Morrisons, coupled with profit warnings from Joules, Superdry and Card Factory. But looking forward 2020 promises to be a successful. All retailers must also develop the watershed year for the retail industry. It will ability to exploit data, as this will be a key be the year that we can expect the ‘retail differentiator. apocalypse’ headlines to finally begin in plateau, or at least cease to pack the same The future of stores in 2020 will primarily psychological impact, not because the industry be to deliver “what Amazon can’t” in the ceases to be in transition, or that retailers form of elevated experience, brand story stop recalibrating their store estates and staff and provenance, infused with emotion and headcounts, but because the industry will finally garnished with high-value, data-driven human accept this process of evolution as the new interaction. Meanwhile tech will increasingly be normal. Online market share will continue to used to fulfil common repeatable tasks, such as grow as physical retailers continue to downsize logistics, to ensure human capital can be spent estates, reimagine their store formats and more effectively achieving the goal of high- expand online. value customer interaction. Meanwhile, pureplays will look to satisfy Amid the shifting tectonic plates of retail, it customer demand by becoming ever more remains essential that retailers continue to track personalised and friction-free, offering customer demand and sentiment so that their consumers a wide range of possibilities needs can be met. To this end we’ve asked stretching from product specification and consumers what they want from retail. From delivery method through to granular payment our survey of 2,000 UK shoppers, conducted options. Pureplays will also increasingly in December 2019, there is an opportunity to seek a physical foothold on the high street, map out what factors should be driving retail remodelling physical retail in their offline decision-making in 2020, where the industry is image, rather than submitting to the bricks- currently excelling, and where it is falling short. and-mortar rule book. Those retailers that remain agile will prove to be the most customer responsive, capable of flexing when customers demand it. 2020 also promises to be the year that the false dichotomy between on and offline retail is finally put to bed. Our research shows consumers are increasingly channel agnostic. Retailers of every stripe realise they need to be present everywhere if they are to remain
THE VOICE OF THE CONSUMER
The conventional forecast model of retail is no longer fit for
purpose. Retailers can’t simply take an educated guess at what their
customers want, based on what they wanted last season or last year.
They need a truly customer-responsive, data-based model that tracks trends and real-time
customer demand. Indeed, the most sophisticated retailers are already able to predict
customers’ future demand using artificial intelligence.
So, what is it consumers want in general? We’ve picked out some key stats from our in-depth
consumer research to illustrate the demands of today’s shoppers.
37%
don’t think about channel
31%
want help from store staff to
they just want convenience track down stock online and
order it for them
68%
say the high street wouldn’t be
52%
are irritated by checkout
the same without shops queues
32%
insist shops should be a
28%
want in-store payments to be
place of inspiration as friction-free as online
46%
are irritated by poor stock
28%
are annoyed if they’re asked
availability to pay postage for ecommerce
orders
35%
are frustrated by chaotic and
23%
will abandon their basket if the
difficult-to-navigate store online retailer doesn’t offer
layouts their preferred payment option
ONE VISION: how to re-energise retail in 2019 and beyond
TECHNOLOGY TAILWINDS
In 2020 it will be increasingly difficult to identify the conventional
boundary between tech and retail. For example, the retail sector
is already the UK’s tenth biggest investor in artificial intelligence
and the indications suggest this level of investment will only
grow during the year.
In the UK, US and other G7 countries the to develop its Smart Platform warehousing
‘Amazon-ification’ of retail means that and logistic solution which it has licensed to
leading retailers are eager to recruit software Kroger and Coles in North America.
engineers, optical engineers, hardware
designers, data analysts, cyber security Other examples of retail’s digitisation include
experts and experts in applied sciences. the new CTO of Tesco, Guss Dekkers, who
previously worked at Airbus, Continental
Take the ecommerce fashion platform and Volkswagen. Dekkers has been given
Zalando, for example, which is at the the remit to “translate rapidly evolving
forefront of retail’s digital transformation. technological and digital capabilities into
Zalando has made no secret of its ambition innovative retail solutions”. Tesco’s Clubcard
to “become the Spotify of fashion”. loyalty app has been digitised, allowing
customers to redeem vouchers using their
John Lewis & Partners is also keenly aware smartphones. Shoppers can also pay for
of how tech is breaking down traditional groceries and collect Clubcard points simply
sector boundaries. It has joined forces by scanning a personalised QR code in the
with agricultural robotics specialist Small Tesco Pay+ app.
Robot Company to trial robot harvesting at
Waitrose’s Leckford Estate farm. These are just some examples of retailers
and individuals harnessing the technological
Retail’s growing appetite for tech can be tail winds of the fifth industrial revolution to
summed up by retailers like Ocado, who propel their organisations faster and further.
now employ more than 1,300 tech engineers
So, what are the technologies that customers are looking for in
their shopping experience?
In the store, technologies that reduce from the likes of Amazon. Queue-busting is
queuing would appear to be the most likely something for both technology and design
functionality to enhance bricks-and-mortar companies to work hard on, judging by
experiences for consumers because at 52%, shopper demands for seamless in-store
queues remain the biggest bugbear for in- encounters.
store shoppers. Self-checkout options and
‘scan and go’ capabilities, where customers When considering online technology,
can scan an item and automatically pay, consumers’ standards are high, with 31%
were the other top two technologies that abandoning their purchase and shopping
would improve customer experience. 27% of elsewhere if a retailer’s site navigation is poor.
shoppers said self-checkout would improve More than a quarter (28%) of shoppers get
their in-store experience while 34% called for annoyed when online checkout takes too
scan and go smartphone apps. long and a similar percentage (27%) are
irritated if the online address and personal
Meanwhile, 28% of customers want faster details capture process is too onerous.
ways to pay in-store that replicate the
friction-free purchases now available online
ONE VISION: how to re-energise retail in 2019 and beyond
Speed is of the essence online, and there’s one company that is influencing expectations more than any other, Amazon.
DEFINING AND DIFFERENT DESIGN
Design agencies are increasingly talking about incorporating
digital and technological aspects into their plans for stores, but
the fundamentals of retail design are changing too
Storytelling and visual merchandising are crucial for creating a brand message in the store
– it was ever thus – but stores now need to make more of an impact in order to remain
relevant, and standards cannot slip, because consumers will pick up on it. If most items
can be purchased online, then the store needs to be a desirable destination that offers
experience, inspiration, and memorable interactions to create a point of differentiation – it
can’t stand still.
While stores are closing in the UK at what seems like an alarming rate, with PwC research
suggesting about 16 UK shops closed every day on average in the first six months of 2019,
and a net 1,124 stores disappearing from Britain’s top 500 high streets, shops still shine
bright for many companies.
ONE VISION: how to re-energise retail in 2019 and beyond
While many retailers are
closing, others are opening,
and at speed, with 144 store
openings in the first half of
2019. Here are four big-name
retailers who are prospering on
the high street:
alue retailer B&M is in the throes of
V
a 50-store expansion plan bringing
its estate to 670 in total. The retailer’s
latest annual results saw revenue
increase 17% to £3.5bn.
alue homeware retailer The Range
V
has opened 31 new stores during
2019, adding 1,000 more employees
to its books.
Discount shoe retailer Shoezone
added a dozen ‘big box’ outlets
during 2019 and plans a further 20
in 2020.
Selfridges is also investing in the high
street with a £20m cash injection,
completely revamping all four floors of
its Birmingham store.
DELIVERING THE GOODS
If retailers are talking about ‘experiential’
retailing – of which there are varying
definitions – and designing store space with
digital retailing, customer touch-points,
events and services in mind, is that really
what customers want?
The answer, according to the research,
is “yes”. A greater emphasis on in-store
experiences was a recurring theme
throughout our research. 40% of consumers
say that in-store events would make stores
more exciting and attractive to visit. A
quarter called for more high-tech store
experiences while 24% said the stores that
are struggling are not offering experiences as
well as products.
A SOCIAL SPACE
John Lewis recently unveiled its radical new-
look Southampton department store that
has replaced selling space with “experience
playgrounds” where shoppers can hone
barista or pasta-making skills or hang out in a
rooftop orchard and farm shop.
As well as conventional navigation, the shop
has also been designed to be navigable
by experience, in order to create a “social
shopping” environment in which to “wrap”
product. An experience desk on the middle
of the entry floor provides a launchpad for the
customer journey and a menu of options.
If successful, the re-modelled outlet could provide a prototype for other John Lewis stores.
Other retailers championing experience include Hobbycraft which hosts group crafting
sessions, Sweaty Betty, which runs free weekly fitness classes at its sites, and JD Sports,
which is building a reputation for in-shop DJ events that drive customer footfall from its key
demographic. Retail is not just selling – especially in speciality retail.
ONE VISION: how to re-energise retail in 2019 and beyondDIGITAL SIGNAGE LIGHTS THE
WAY IN 2020
In retail’s race to digitise its stores, driven by calls for an
‘omnichannel’ set-up where stores and online are more closely
linked, digital signage has taken a giant leap forward in both
technology and in deployment.
Flagship fashion, electricals, and telecoms SIGN OF THE TIMES
stores – and quick-service restaurants – are
keen purveyors of this solution, viewing it Almost a fifth of customers (19%) said
as an impactful way to welcome, inform, or digital signage that showcases products
connect with customers. and provides a comparison with other items
would improve the in-store experience,
Even WHSmith, a retailer that has come while for those retailers looking for brand
in for criticism about its store layout and consistency across their multiple sales
environment, has deployed window digital channels it could be a winning option.
signage recently.
More than a fifth (22%) of shoppers said
Whether it’s tech-enabled signage in the they want to see digital signage in-store
window for marketing purposes, front-of- that shows additional product details or
store wayfaring points, screens on kiosks, or allows them to shop the wider range if it’s
high and large central video screens, digital not available in-store – effectively replicating
signage is very often the clearest indication online experiences in a shop.
of in-store technology.
Cosmetics retailer Lush this year unveiled what it described as ‘an
experimental, imaginative retail space showcasing Lush’s innovation in
technology’ at Tokyo’s busy Shinjuku station.
One of those new ways to shop is the store’s shoppable window, supported
by the recently launched Lush Labs app platform. Visitors use their
smartphone paired with app-based lens technology to browse and buy
products in the window and displayed on a one-metre-high LED screen.
The content broadcast on the screen is designed to change and reflect
the mood of Shinjuku, capturing the attention of passers-by.CONNECTED
RETAIL
EXPERIENCE:
MORE THAN
JUST DIGITAL
SCREENS
Here are three stores which
opened in 2019 that paint a
picture of the future of the
industry, providing examples
of what we might see more of
in 2020 and beyond. They are
stores hosting digital signage in
its various forms but with a whole
lot of connectivity, and design
creativity to boot.
ONEONE
VISION: how to
VISION: howre-energise
to re-energise
retailretail
in 2019
in 2019
and beyond
and beyondAUDI (HONG KONG) Luxury automotive retailer Audi has opened an ‘innovation space’ in Hong Kong’s Festival Walk shopping mall. Following the success of its pop- up store last year, this ‘experience store’ takes customers on a journey through the use of VR, allowing them to explore the full range of Audi models. Customers can also preview future car concepts, which helps to build brand loyalty. More than 40 models are available for customisation and customers can view every detail through a VR headset and even take their newly designed car for a virtual spin.
CHANEL (PARIS)
Chanel’s new Paris flagship store is essentially
a test space for its newest digital initiatives.
The luxury brand has partnered with Farfetch
to trial clientelling tools that use data to create
personalised shopping experiences.
For customers, these are accessed via the Chanel app –
and the store is highly focused on its top tier customers.
In fact, the two top floors of the store are dedicated to
VIP customers only, with personal styling rooms and a
restaurant reserved for private meals.
ONE VISION: how to re-energise retail in 2019 and beyondEVERLANE (NEW YORK) Fashion retailer Everlane has opened its largest store to date and this New York destination is packed with lots of new features. There are tablets located around the store where customers can shop the full collection and a mobile fitting room system called ‘Save My Spot’, where customers simply text what they want to try on and are notified when the changing room is ready. With this store, Everlane really is attempting to master the omnichannel experience.
CX APPEAL – WHO’S GOT IT?
The top retailers for in-store experience, as per our consumer
research, were Tesco, Sainsbury’s and Asda, which perhaps
reflects supermarkets’ ever-evolving propositions to change and
keep up with new consumer habits.
Be it through more extensive and special dietary product ranges, the launch of in-store
services such as click-and-collect, more fresh food, or partnerships such as Tesco-Jamie
Oliver, Sainsbury’s-Patisserie Valerie, and Asda-Sushi Daily, supermarkets are changing. They
aim to be as convenient as possible and offer as much choice and uniqueness as they can in a
challenging sector.
CX sells – the top ten retailers for CX
1. Tesco (23%)
2. Sainsbury’s (18%)
3. Asda (17%)
4. Marks & Spencer (M&S) (15%)
5. Aldi and Morrisons (14%)
6. John Lewis & Partners (12%)
7. Argos and Lidl (11%)
8. Boots and Waitrose & Partners (9%)
9. Primark (8%)
10. Wilko (7%)
ONE VISION: how to re-energise retail in 2019 and beyondThe online top five, meanwhile, shows just how
far Amazon is ahead of the rest in terms of CX, with
the Seattle-based behemoth standing head and
shoulders above others in the minds of consumers.
1. Amazon (28%)
2. Argos (9%)
3.= John Lewis & Partners
and M&S (6%)
4. Tesco (5%)
5.= Next, Asda (4%)
The fact that there’s not one standout
business in terms of in-store CX is
indicative of the journey retailers are
on to capture consumers’ imagination
with bricks and mortar. But if the
results are unflattering for stores,
they are perhaps more alarming for
websites. Amazon has set consumer
expectations sky high, and there’s a
CX gap for the industry to fill in terms
of its online offerings.RETAILERS’ LONG LIST…
A complex set of challenges lies ahead for the retail industry, the
transition to experience-led shopping, digital transformation,
store restructuring and resizing, and the need to innovate and
compete not just with other retailers – but other entertainment,
leisure and hospitality providers.
In 2020, this route will be mapped out against Bonmarché, the fashion chain for over-
the shifting backdrop of Brexit, rising business 50s, went into administration in October 2019,
rates, growing staff costs thanks to the National putting nearly 3,000 jobs at risk, just weeks after
Living Wage and Apprenticeship Levy, so there hundreds of jobs were lost at Karen Millen and
is no time to hesitate. All-encompassing action Coast, which closed all their stores after falling
plans are being devised, some big conclusions into administration.
being made, and some completely new
directions coordinated. Other retailers including Mothercare, New
Look, Marks & Spencer and House of
The visionary direction being taken by Pets at Fraser have also been closing stores, while
Home is a great example of this. The retailer is Debenhams was set to close more than
pivoting away from a reliance on retail sales and 20 during 2020 .
focusing on services and experiences such as
professional dog walking, nutritional advice and
pet spa treatments, to drive its business.
Meanwhile, fast food giant MacDonald’s
recently opened its first-ever UK kiosk-only
store in London’s Fleet Street. In a bid to
manage overheads, maximise space and
streamline the customer journey the digital
kiosks are the only way to order meals.
During 2019 Sainsbury’s was the first retailer
to launch a checkout-free scan-and-go store,
however the experiment lasted just four months
with the supermarket giant announcing that
customers ‘aren’t ready’ for the radical new
layout. Time will only tell whether other retailers
lining up to launch scan-and-go manage to
succeed where Sainsbury’s failed.
Meanwhile retailers have been downsizing their
workforces as they get to grips with the shifting
demand for physical retail.
ONE VISION: how to re-energise retail in 2019 and beyondThis flurry of activity
goes some way to
highlighting the change
and range of activity
retail is undergoing after
so many decades as an
industry that evolved
relatively slowly.In support of all this change, retailers must consider any number
of new innovations, formats, partnerships, or alternative business
processes. Joined-up thinking is required at every decision point.
Our study highlighted what consumers are looking for from a supply chain, payments,
security, last-mile delivery, and store/e-commerce perspective, which provides guidance for
retailers mapping out 2020 plans.
DELIVERING THE GOODS
Cost of delivery is far and away the biggest fulfilment pain-point,
with 47% of shoppers annoyed that delivery is not free.
Nearly a quarter (24%) would like to see more delivery options available.
While 21% say that products are not delivered in an environmentally
friendly way, for example with excessive packaging that may not be
recyclable.
ONE VISION: how to re-energise retail in 2019 and beyondPERSONALISATION
AND PAYMENTS
As far as consumers are
concerned, payment is a
necessary evil, which should be
as fast and painless as possible.
28% of in-store shoppers say that
retailers still have lots of work to
do to make the payments process
in-store as friction free as online.
15% of in-store shoppers said they would
abandon an in-store purchase if the retailer
didn’t offer their preferred payment method.
Meanwhile 17% said they would like retailers
to consider biometric payments (such as
fingerprints or iris scanning) in store to speed
up the payments process. 15% of store
shoppers said they would like retailers to offer
buy-now-pay-later options (such as Klarna,
Openpay or Clearpay) for in-store purchases
Meanwhile, nearly a quarter (23%) of online
shoppers told us they would abandon their
purchase if the retailer didn’t offer their
preferred payment method. This includes
one-in-ten shoppers who will go elsewhere if
one-click payment is not offered online. A fifth
of online shoppers also say that retailers should
do more to make the online payments process
more friction free.
Retailers might be best served offering as many
transaction choices as possible. If they have coaxed a
shopper all the way to point of payment, losing them
because they don’t support their preferred transaction
choice could be deemed a careless scenario.RETAIL WORKFORCE IN 2020
At the British Retail Consortium’s (BRC) 2020 conference in 2018,
part of a series of events and publications looking to provide
a blueprint for the future of retail amid increased automation,
store closures, and various economic pressures impacting the
industry, employment was in focus.
Designed primarily to highlight opportunities presented by ‘new retail’, the BRC series and
this event shone a light on what the structural changes and general direction of the industry
means for the workforce. It was, and is, an important focus, considering retail – despite the
store closures throughout the year – is still the UK’s largest private sector employer at three
million-plus.
Associates were described as the most important people in the business, yet largely forgotten
until quite recently. Conclusions from the event included store associates will tend to work
harder and smarter if they understand what the retailer’s mission is. Giving the workers on the
coalface empowerment and a say in business strategy brings ownership and, consequently,
due care and attention over customer interactions and the company message.
Much of the talk of customer
centricity is led by the
boardroom which rarely meets
the customer; it makes sense
to engage store staff in these
policies because they are the
ones who know and interact
with customers.
ONE VISION: how to re-energise retail in 2019 and beyondWHERE STORE STAFF ADD MOST VALUE
Consumers want store staff to offer a combination of the social, the functional and the
expert view:
51% STORE NAVIGATION
Showing me where to find products
42% FRIENDLINESS
Where staff were happy to engage in conversation
as opposed to focusing on making the sale
39% PAYMENTS
Taking payments at the tills
34% PASSION
Showing genuine passion for the products or
services the retailer offers
31% STOCKS
Assisting with out-of-stocks and ordering them
online for the customer
As the likes of Zara add automation for online orders, and US retailers such as Walmart and
Lowes introduce robots for some shelf-edge and customer service tasks, the indication is
technology isn’t taking over yet. Lack of available staff and lack of knowledgeable staff were
bugbears for 37% and 69% of shoppers respectively, according to our research, meaning
people are very much in demand in the delivery of customer service.RETAIL’S 2020 TARGETS:
SUSTAINABILITY, EQUALITY OF
OPPORTUNITY AND EMPLOYEES
SUSTAINABILITY
With the announcement of a climate emergency, the rise of
Extinction Rebellion and the ongoing Greta Thunberg effect,
sustainability and the environment has commanded an ever-larger
place in the public’s consciousness during 2019 - and there are no
signs this is going away in 2020.
Consumers want to consume, but without it Ecommerce delivery was a major point of
costing the planet. This has led to predictions concern among those questioned with more
that the second-hand fashion market will be than a fifth (21%) saying they would pay
bigger than fast fashion by 2024, spurred more for greener delivery or they would be
on by a new breed of thrift-store digital happy to pay to offset the carbon cost of
marketplaces such as Depop, which enable their order delivery. 23% said they would
individuals and merchants to reintroduce actually spend more with a retailer that offers
unwanted garments back into the circular low-carbon delivery.
economy.
When it comes to physical retail, 28% of
Single-use plastic has been another consumers say that more environmental
battleground with retailers forced to keep initiatives that support greener retailing
pace with shoppers horrified by primetime ‘would make the store a more exciting place
documentaries that reveal the shocking to visit’.
impact this virtually indestructible material
can have.
ONE VISION: how to re-energise retail in 2019 and beyondRETAIL DIVERSITY
Whether it is a push for more women in senior positions, the
drive to increase ethnic diversity at the top of business, or
measures to monitor and provide support for better mental
health and general wellbeing, retail has a role to play in
supporting social good, while promoting diversity and equality.
While the retail sector may do better in The researchers examined racial diversity in
terms of boardroom diversity than some retail and found, that the closer workforce
other industries, that doesn’t mean it’s great. diversity at a store matches the diversity of the
Company policies, like a mandatory retirement customer base, the better the store performs.
age and term limits for directors, or legal In fact, for each percentage point closer to
gender quotas for board members like Norway, a perfect match between the diversity of
France or Germany have introduced, have an shoppers and store a retailer can increase their
impact. sales by $67,000. But the study also found that
workforce diversity improves returns for stores
But Diversity is much more than gender and regardless of how diverse their customer base
age, and more diversity in leadership remains a is. Study co-author Prof. Patrick F. McKay of
key issue in retail diversity. Who is represented Rutgers University, believes “this shows that a
in leadership matters as it has a an impact diverse staff brings different ideas about how
on company culture, values, hiring practices, to serve customers more effectively, which
product, marketing, along with virtually all enhances overall sales performance.”
business areas, as well as public perception.
Retail Week’s recent publication of its Diversity
In retail, your workforce interacts with your Super League named the UK’s ‘15 most
customers face-to face-and gives shoppers inclusive employers’. Its ranking was based on
a very visible representation of the kinds of criteria including the gender pay gap, LGBT
people your company values. We already know and BAME networks, disability awareness and
that diversity in the office is beneficial because board representation. The top retailers were
it leads to a diversity of ideas and better The Co-op, Ocado, Primark, Lidl and Spar.
problem solving. But a recent study published
in the US Journal of Management finds a similar
correlation between diverse demographics in
shoppers and diversity in retail staff.EMPLOYEES
Few retailers can afford to give their staff a day off by closing on
Sundays, like The Entertainer toy store chain, or hand ownership
of the company to workers, like Julian Richer, the founder of
Richer Sounds, did in April 2019.
Both examples – and there are plenty more
illustrations of good practice of this nature in
1. John Lewis
2. Lush Cosmetics
retail – highlight a new-era business world,
where bottom-line gains are clearly still
important factors, but the humanity of the
overall operation is greatly emphasised; after 3. IKEA
all, it’s said that ‘people buy from people’.
With the advent of digital and increased 4. Marks & Spencer
connectivity, people can work from anywhere
and often expect to be able to do so – there
are calls for more flexibility in the workplace,
5. Clarks
especially as a digital native demographic
enters the labour market.
6. Pandora Jewellery
The recruitment site Indeed recently 7. Harrods
published its list of the best retailers to work
for in the UK with employees scoring each 8. GAME
company based on its work/like balance,
pay, job security, management and culture. 9. Waitrose
It’s no surprise that John Lewis and Partners
topped the poll. Lush Cosmetics, which is
well known for its ethical stance, cultivating
10. The Body Shop
employee engagement and a stimulating
working environment, took second place,
11. TK Maxx
helped along by a 50% staff discount. Here is
Indeed’s ranking in full: 12. Gap
13. Argos
14. Post Office
15. Sainsbury’s
ONE VISION: how to re-energise retail in 2019 and beyondFrom this list we can deduce that great retailers make employees feel valued, well managed and part of a positive company culture. Add to this formula the ability to have fun and have a sense that you’re having an impact that extends beyond the shop floor and into the wider world.
TEN THINGS
FOR RETAILERS
TO THINK
ABOUT IN
2019
Our consumer research shows
that successful retail businesses
will combine online and their
physical retailing estates in the
most organic ways. Retail winners
will be the ones that remain agile,
focus on offering customers
memorable experiences, and
evolve the way they are run
to meet the needs of a new
workforce and consumer
demographic.
ONE VISION: how to re-energise retail in 2019 and beyondWith that in mind, here are our top ten takeaways for retailers to
place top of mind as trading in 2020 gets under way in earnest:
1. 2020 IS THE YEAR THE MILLENNIAL COMES OF AGE: Forbes suggests that 2020 will see
spending by Baby Boomers start to decline as the oldest members of this demographic reach
their early 70s and the youngest enter retirement. This marks a watershed moment as tech
savvy Millennials and Gen X start to become the most influential consumers. This means the
business case for increased budget spend on customer-facing tech solutions is even stronger.
2. SUSTAINABILITY IS KEY: Consumers are becoming increasingly environmentally aware so
sustainability must become a board-level consideration in 2020 for forward-thinking retailers
with the impact being felt throughout the retail operation. Customers are actively looking
for real evidence that retailers are taking the climate emergency seriously and adapting
accordingly. If evidence isn’t forthcoming consumers are increasingly likely to shop elsewhere.
3. U
SE TECHNOLOGY TO LIBERATE CUSTOMER-FACING STAFF: Our research makes it
clear that shoppers want more face time with shop-floor staff, but the only way to do this
profitably is to create a tech/human partnership. Enlist technology to seamlessly execute
tasks such as wayfinding, payment and sharing product information and liberate employees
to add real value on top. This adoption of tech should be mirrored back-of-house to digitise,
automate and increase accuracy for time-intensive repeatable tasks such as merchandising,
promotions and pricing so employees can spend more time with customers.
4. B
EWARE THE CUSTOMER EXPERIENCE GAP: Smart pureplay and omnichannel retailers
are finding new ways to inject human value into online interactions. Mobile phone giant
Three, for example, uses instore sales experts to stream online product videos and Q&A
sessions. The aim here is to nurture high-intent online customers who may otherwise
abandon their basket.
5. F
OCUS ON DOING ‘WHAT AMAZON CAN’T’: Amazon is great at convenience, speed and
price but these aren’t the be-all and end-all of modern retailing. Physical stores, in particular,
need to start their journey towards experiential retail now, if they have not started already,
before Amazon finds a way to plug this gap.
6. PUREPLAYS ARE MOVING TO THE HIGH STREET: 2020 will be the year that digitally-
native retailers and brands make their presence felt in bricks-and-mortar retail. This is a trend
emerging in the US as well, with a study by Retail Dive revealing that pureplays plan to open
850 stores Stateside by 2024. They’re coming and they’ll be playing to their own rules.
7. C
HOICE IS KEY. Whether it’s online/in-store payment, credit at point-of-sale, delivery method
or product specification, offering the consumer a full range of suitable options will be critical.
As our research shows, retailers will ignore consumer demand at their peril.
8. A
VOID OVER-PROMISING:in a retail world of ship from store, click & collect, one-hour
delivery, and convenient fulfilment, marketing can no longer promise what supply chain can’t
deliver. Customers won’t forgive retailers if they do, and transparency is paramount.
9. H
AVE A CLEAR PARTNERSHIP STRATEGY: create a partnership plan but don’t rule anything
out. Choose your core tech suppliers or design organisation, but leave room for innovation,
difference and agility by scouring the start-up scene and trying a ‘test and learn’ approach.RetailEXPO
Energising modern retail
RetailEXPO (29+30 April 2020, Olympia London) - Europe’s leading event for retail
solutions, is specifically designed for retail, brand and hospitality professionals looking to
enhance great customer experiences, increase operational effectiveness and drive better
outcomes for their business through retail technology and digital innovation.
Bringing together leaders of the retail industry, the event features an interactive
exhibition floor with hundreds of cutting-edge suppliers, accompanied by a market-
leading conference programme, and a host of networking opportunities - all helping to
provide the right insight, inspiration and solutions to today’s retail issues.
Energising Retail – Olympia,
London – 1+2 May 2019
Register to attend today: www.retailexpo.comYou can also read
