Author Archives: tiffany-lee@gekko

Carefully consider the customer in this new age of retail

As consumers were forced online, bringing back a sensory experience through a carefully considered customer journey, is where independent retail is amongst the best says Daniel Todaro from Gekko.

It’s been a tough few months for all retailers but we’re back and now more than ever the customer experience is the tool many retailers must be reaching for to recapture shoppers and remind them what they have missed.

Based on findings from the CBI, retail sales have risen above seasonal norms for the first time this year. The reopening of non-essential stores in England and Wales brought relief to the sector. April’s retail sales volumes were viewed as “good” for not only the first time this year but also since June 2018, according to the CBI’s latest monthly Distributive Trades Survey.

After reopening on the 12th April, the early signs suggest that shoppers were particularly eager to visit fashion retailers, and on the day, spending on clothes was double the typical pre-pandemic level. Furthermore, the figures are stronger than when stores reopened after the first lockdown in 2020. The number of people shopping online in the past month fell for the second time in a row, and while it is still strong, the rate is half what it was at the height of the pandemic. The data points to a growing sense that the worst of the pandemic is behind us, and people are becoming more comfortable with venturing out to stores.

Retail will undoubtedly regain its mojo over the coming months and if as hoped we are out of complete restrictions this summer, it should rebound and take full opportunity as the burden of these rules no longer apply. It’s going to be different and it will no doubt continue to evolve but retail as one of the most dynamic industries, has always done this. It evolves to meet the expectations of generations, trends and attitudes. Brands and retailers must therefore work to create more experiences spread across a wider space to offer consumers an immersive experience that makes a customer buy from your store and continues to do so, wanting to visit again based on the experience received.

Since reopening we have already seen a 12% shift from online to the high street in the first two weeks. Whilst the growth will have added to the overall online retail space, consumers are increasingly bored of online shopping just as they are Zoom calls. For the entire nation, lockdowns forced us to shop online whether we liked to or not. If we wanted that thing for that purpose, customers had to go online and research, buy, deliver or collect and in many cases return it because it wasn’t right. Whilst this may have felt convenient for some, this meant that for many the sensory experience was immediately banished to a 2D experience and brown boxes dumped on our doorstep.

Human nature is to be stimulated through a sensory experience and even for those with no real passion for shopping, I suspect they have missed some of the pleasures that physical retail offers. In specific categories, this is enhanced more than others such as considered purchases in the MDA and CE categories. Sustainability is another factor many will be considering now that they have a choice. Our increased carbon footprint created by ordering items that have travelled several hundred miles will once again prick the consciousness of all of us as we look to increase our sustainability initiatives, not increase them with unnecessary additional miles and packaging.

We are gradually coming out of lockdown and consumers continue to be excited about it. Indeed over 85% of consumers from our latest retail survey results claimed that they have already taken advantage of physical shops being open to make purchases. They are emerging with a determined mind-set, using their newfound online skills to narrow down their options before heading to the store to browse and make the final purchase.

The retail environment is changing and has been particularly fluid over the past year. This data is critical to understanding the new trends that have emerged and forming (or re-forming) brand strategies. Insight from Kantar, online shopping fell in April for what was the second time in a row, and Springboard footfall data showed an increase of 88% week on week for the period that non-essential retail reopened after the 12th. All of this points to the fact that there are more shoppers out there than there have been for 14 months, so there is a chance here to connect with them while confidence is high and a (hopefully) high-spirited summer begins.

The online share of retail sales is decreasing, although the benchmark remains above the pre-pandemic figure, settling at about 36% in April vs 23% in 2020. This of course indicates the acceleration of a trend that has been growing for a while, but it does mostly remain product specific, and nothing will ever really replace the experiences that in store shopping can offer. The store should now become more of an experience hub as well as a purchase point. In-store marketing continues to have the power to not only increase actual sales, but also other key factors such as brand loyalty and even helping to drive social media interactions.

When it comes to consumer electronics and large appliances in particular, many consumers will always prefer to touch a product and hear about its benefits first hand rather than reading a specification sheet online. Hearing their input, from questions to reasons for purchase, can then be fed back directly to a brand, enabling them to react and stay ahead of the competition.

In this new age of retail, the smartest businesses will be the ones that can leverage the opportunity to reach consumers at every level relevant to them, and that is where effective brand experience and a carefully curated customer journey can step in to help exceed your customers’ expectations.

To read the full article please visit ERT Magazine.

The photo that accompanies this article is by Artem Beliaikin from Pexels

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A hybrid approach: Five retail innovations the pandemic has speeded up

Every business has been forced to change in the past year, it doesn’t matter the industry you are in. Retail is no different, but unlike others, it has always been a dynamic industry at the forefront of responding to consumer trends and the manner in which people want to consume things. Retailers have always understood they are at the vanguard of that change. This past year has truly focused the mind on this and the need for innovation like never before.

It’s not just about entirely new initiatives. Many trends that were already taking place have had their roll out compressed from years to months. Here are five innovations that the pandemic has speeded up that can offer a pathway to sustained growth to those who take advantage.

1. Click and collect

There is renewed and growing enthusiasm for click and collect. In part that’s linked to the general increase in online shopping but it’s also because of the convenience and importantly the hygienic, social distancing aspects. A pandemic trend that is set to stay, it is now an embedded part of many consumer journeys, especially in grocery shopping, but also increasingly in all non-essential retail. Our own research has shown that over 35% of people want to see this trend continue even after the pandemic. Click and collect certainly appeals to more sustainability-focused customers. These shoppers want to shop online but also have a focus on sustainability with concerns about the environmental impact of the deliveries in terms of the distance travelled and packaging. Retailers should think about how to maximise the opportunity to boost profitability. An obvious example being upselling products in a collection environment.

2. Using Augmented Reality to assist big ticket purchases

As we can see from the figures post-lockdown, physical retail has an enduring appeal with huge pent up demand being realised. However with more consumers having been forced to buy higher ticket items online, smart brands are looking at new technology to fuse the offline and online world and assist sales. Ikea is a brand that has always focused on innovation and disrupting the traditional retail experience. They made a smart play last year, acquiring AR imaging startup Geomagical Labs. The intention was to drive shoppers to purchase more big-ticket items without always needing to visit a store. Its technology allows a user to quickly scan a room using any smartphone, render that into a panoramic 3D picture in a few minutes, remove all the furniture in it and then add in new items to scale, helping shoppers picture products ‘in-situ’. This will be implemented by Ikea into its website and apps to let people start to create accurate visualisations of their spaces, and how they would look with Ikea pieces in them. While the technology remains nascent, other retailers should definitely take note.

3. Joining up the omni-channel experience

Ecommerce has been a big winner from this past year with millions more now comfortable with shopping online. However the experience remains disappointing for many. A recent survey by Ayden found that more than two thirds (68%) of Brits say they will now not shop with organisations if they had a bad experience either online or in store (an increase of 18% since June 2020). Meanwhile, 53% believe retailers need to do more to link their physical and online stores. Invariably the offline and online experience is not joined up and inconsistent. Too often the focus online is based on the ‘what’, product specs, price etc without thinking about the ‘why’ a consumer wants a product. Smart retailers and brands know it shouldn’t be the ‘channel’ that is the focus but the customer experience, which is then realised across all its touchpoints. Starting with an audit across all channels, brands need to ensure they are visible and joined up. The evidence shows brands who are joined up have succeeded over the past year.

4. Training the experts at scale

A key element of the formula for success instore is a shopper’s engagement with retail sales advisors. Are they proactive, helpful, skilful, knowledgeable, and capable of providing a personalised experience? This is something the online experience can’t replicate and physical retailers need to capitalise upon. Much is down to individuals, their training and management the retailer provides, but when it comes to talking about a brand and its products it is vital they are informed, motivated and most importantly advocates. This is often down to brand led initiatives and while in the past these experiences were provided in person, the pandemic has forced new innovative ways through virtual training being offered with face to face communication not being possible. For example Gekko has developed a new digital learning and engagement platform for brands to talk directly with Retail Sales Advisors, allowing them to choose when and how they learn, with gamification and incentives driving uptake. It’s meant we have been able to train many more staff members and have far more impact. While we will still be visiting face to face – a hybrid model will be our new way of doing business. A bit like peoples’ changed working arrangement, it’s taken a major event to force through a sensible and more efficient way of doing business.

5. The advisor’s new domain – the video call as well as the shopfloor

While digital methods are proving successful to train more instore experts at scale, the digital world can also be utilised to provide direct expert assistance to those making a considered purchase. Curry’s are one brand who tried a new approach during the pandemic with the ShopLive service offering expert advice to assist the sales process. A popup appears asking if you need buying advice, but rather than the experience being a frustrating one with a generic chatbot, shoppers can then start a one way video call with one of their experts. ShopLive now has over 800 ‘tech-perts’, aiding customers through their essential tech purchases. Each new expert goes through two days of specialist training to ensure they can help customers with every tech query. While a face to face conversation with a live product demo and test will always be the best way of answering any customers’ needs, this certainly can aid the sales process for those who would still rather not venture out or can’t for any reason.

Despite the atypical nature of the past year, we have seen many retailers react to the adversity with typical dynamism. The changes and digital transformation that has taken place will in the long run only be a good thing for the industry. A lot of the confident retailers have really begun to find their voice and discover a new way to navigate these uncertain, but exciting waters.

To read the full article please visit Bdaily.

The photo that accompanies this article is by Sora Shimazaki from Pexels

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How to benefit from the forthcoming massive wave of ad spend

The recent IPA Bellwether on marketing budgets in the UK has revealed that 2020 saw a fast paced decrease in spend as the effects of the pandemic naturally hit home. Now, as we continue to emerge from the worst of the effects, their forecasts are that there will be a net balance growth of 17.4% which would be the largest increase since 2018.

For the UK, this spend should total up to around £27bn for 2021, with another 7.2% growth predicted for 2022, so how will this be spent? It is clear that the main increases are predicted for Main Media Advertising (10.1%), Public Relations (7.4%), and Direct Marketing (6.8%). The cuts here are reserved for Events (-28.4%) which are still particularly struggling from Covid restrictions, but also Other Marketing (-5.4%) and Market Research (-4.95%).

For many, Main Media Advertising is a must for spend given the reach and benefits it can bring. However some of the other categories are, I believe, up for debate and it would be a mistake to purely dictate spending purely based on variable forecasts without acknowledging what exactly your priorities are and how best to connect with your consumer in order to garner their loyalty.

A new determined consumer mindset

We are gradually coming out of lockdown and consumers continue to be excited about it, indeed 88% of consumers from our latest retail survey results claimed that they have already taken advantage of physical shops being open to make purchases. They are emerging with a determined mind-set, using their new found online skills to narrow down their options before heading to the store to browse and make the final purchase. Now is the ideal time to have boots on the ground in retail areas rather than just generic PR pushes, helping them through their customer journey and promoting your brand to them.

The brand awareness required to engage this consumer can’t come out of Media Advertising or PR spend alone, other channels need to be utilised to ensure you are standing out in a sea of competition. Social media reach can help to a certain extent, however no amount of impressions will replicate getting face to face time with a shopper at the point of purchase. Importantly too, the data that comes from the physical interactions a person is able to provide can prove vital and brings incredibly valuable impact and insights in a short amount of time.

Footfall soars ahead of high-spirited summer

The retail environment is changing and has been particularly fluid over the past year, this data is critical to understanding the new trends that have emerged and forming (or re-forming) brand strategies. Insight from Kantar, online shopping fell in April for what was the second time in a row, and Springboard footfall data showed an increase of 88% week on week for the period that non-essential retail reopened after the 12th. All of this points to the fact that there are more shoppers out there than have been for 14 months, there is a chance here to connect with them while confidence is high and a (hopefully) high-spirited summer begins.

Online share of retail sales is decreasing, although the benchmark remains above the pre-pandemic figure, settling at about 36% in April vs 23% in 2020. This of course indicates the acceleration of a trend that has been growing for a while, but it does mostly remain product specific, and nothing will ever really replace the experiences that in store shopping can offer. The store now is becoming more of an experience hub as well as a purchase point. In-store marketing continues to have the power to not only increase actual sales, but also other key factors such as brand loyalty and even helping to drive social media interactions.

Staying ahead of the competition

When it comes to consumer electronics and large appliances in particular, many consumers will always prefer to touch a product and hear about its benefits first-hand rather than reading a specification sheet online. Hearing their input, from questions to reasons for purchase, can then be fed back directly to a brand, enabling them to react and stay ahead of the competition.

In this new age of retail, the smartest businesses will be the ones that can leverage ad spend across the board in order to reach consumers at every level relevant to them. Effective field marketing can step in to help exceed expectations.

To read the full article by Tom Harwood – Data and Insight Manager Gekko Group, please visit Retail Sector.

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Back to the future: Retailers need a new approach for winning customers

The easing of lockdown measures, although slow and steady, has come as a welcome relief for retailers. We can now work towards rebuilding through the eventual easing of all restrictions.

While the lockdowns have been long and painful, the appetite to return and shop in-store remains strong. But it would be naive to just act as though it was still 2020 in reopening and returning to the same plan. It is incumbent on retailers to recognise how consumers have changed their shopping behaviours.

Successful retailers have always understood the motivators and triggers for different customer groups and then offering an appropriate, tailored approach. This needs to be recognised and acted upon.

We recently took the temperature of the nation with a survey of changed shopping behaviours – with some interesting and encouraging results. The vast majority polled (70 per cent) revealed they were planning on visiting stores as much, or more than pre-pandemic. Only two per cent of respondents said they wouldn’t return to the high street. But digging into the detail we can start to see some distinct trends within this.

Localism remains strong

A new appreciation of localism has been one big factor that has brought our communities closer and changed perceptions that local perhaps meant less choice, as 35 per cent of respondents said they have purchased from a local or independent store that they would not have done pre-pandemic.

Meanwhile, the expectation might have been the very oldest might be the most loyal to the high street; interestingly, 35-44 year olds in our survey were the most loyal.

With the different factors motivating consumers to return to shops, 27 per cent of over-55s said the enjoyment of shopping was the thing they were looking forward to most. But this compared with only 15 per cent of under-55s. 81 per cent of respondents cited convenience as a key factor; this trend was most prominent in 18-24 year olds.

There is potential for physical retailers to target younger consumers with a focus on the unparalleled customer experience in-person shopping can achieve.

Flaws in online

Despite the huge choice online, the idea that consumer behaviour has been entirely different digitally was somewhat dispelled by the research. 49 per cent of respondents said they mainly shopped from the same stores online that they always used to visit offline.

But our research also really highlights the flaws in the online experience. A massive 58 per cent cited issues with ordering as a key disadvantage to online shopping. Interestingly, issues with orders was selected most prominently in people aged 34 and under.

Those most concerned by returns were 55-64 year olds in comparison with 18-24s who were least concerned. This highlights the different ways people have been brought up shopping. Given environmental issues are a concern to younger shoppers, we should perhaps emphasise more the fact physical retail can reduce a consumer’s carbon footprint.

A hybrid approach

Rather than just focusing on one channel now at the expense of another, if the pandemic has taught us anything it is the strength of having a hybrid omni-channel offering – being agile and flexible to respond to changing customer requirements.

Certainly consumers seem adept at mixing and matching their in-person and online shopping. For example, 38 per cent would use new online skills to research an item online and then buy it in-store, and over-65s are the most likely to do this (54 per cent).

This underscores the need for a joined up brand and retail experience. This is particularly the case with the considered purchase sector; as we came out of previous lockdowns, consumers have shown a willingness to ‘shop with purpose’ in- store for items they have researched online.

As we return to something akin to normality, it is clear just rolling out a 2019/2020 strategy won’t cut it. The desire for physical retail is there, but we need to understand people’s changed realities.

Retail is one of the most dynamic industries, and changing to meet the needs of consumers has been the hallmark of great retailers in the past and will be tomorrow. Let’s get back to the future.

To read the full article please visit ERT.

The photo that accompanies this article is by Kaique Rocha from Pexels

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New Gekko survey finds the majority of shoppers have returned to stores

With retail lockdowns across the UK now easing, our research has found that 88% of shoppers have returned to physical stores in the first two weeks and felt good about it!

At Gekko we are always looking to better understand the customer journey at all stages of the shopping cycles in all categories. We do this to gain a wider understanding of the retail environment, allowing us to better train our staff and serve our clients.

Back in February, while non-essential retail was still subjected to lockdown restrictions, we surveyed consumers to gauge their shopping intentions once lockdown ended. Our Great British Retail Take Off survey revealed that there was a huge pent up demand to return to the high street with 70% of people planning on visiting stores as much, or more than pre-pandemic and with key motivators being the ability to physically interact with products and have an enjoyable experience.

With the majority of retail restriction now lifted, Gekko wanted to revisit the subject and gain an insight into whether the public have returned to stores in the levels that said they would in the previous survey. Further from this, we wanted to see how the public felt about the way stores are trying to keep them safe. The survey, which was conducted between 26th-30th April, two weeks following the reopening of non-essential retail, provides an insight into the positive sentiments of UK shoppers have regarding stores reopening.

Indications are that physical retail is back, and shoppers are excited to return. Through the responses from this survey, and the comparison between these results and our previous Great British Retail Take-Off survey, we are able to see several noticeable trends.

In a win for bricks and mortar shops, people have visited stores more in the two weeks since restrictions were eased than they did pre-pandemic (previously predicted at 12%, now at 18%). This is backed up by the fact that 87% of people returned to physical stores at least once in the 2 weeks after lockdowns were eased, compared with only 70% who said they were looking forward to returning to store in our previous results.

The overwhelming majority (80%) of people who had returned to store felt that stores were doing enough to make them feel safe. Retail has continued to adapt at every stage of the pandemic, and the fact that so many are willing and able to get back out and shop safely is testament to that.

About the research -The online consumer survey was conducted by Gekko between 26th – 30th April 2021.

To find out more about this survey please visit our website or to obtain a full copy of the report, please contact us at info@gekko-uk.com

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Getting ready for the post-covid retail boom

From being in the grip of the second wave in a bleak mid-Winter two months ago with so much uncertainty and anxiety there really has been a remarkable turnaround due to the determination of all to fix this situation. A majority of the population have been vaccinated and sunnier days are here literally, well almost, but also metaphorically. The Bank of England say the economy is all set to bounce back quickly, driven by a boom that will dwarf predecessors in its intensity and size, predicting that Britons will spend around 5% of the estimated £250bn of savings accumulated over the past year. Others predict nearer 20%, which would still be £50bn.

It is already time to start predicting what will be the key drivers for growth in this transitional period. The roaring twenties were brought about after hardship which triggered a rebound in consumer spending and prosperity. Even if what is to come doesn’t quite last as long, there will still be a heightened passion to enjoy a return to normality and indulgence in the things consumers have missed out on the most. Whilst the 1920’s was more than a lifetime ago, most of us remember the 90’s. The latter part became ‘cool Britannia’ creating a wave of confidence which undoubtedly became the precursor for the shared will and determination to be ourselves today and do it with swagger.

So how do brands and retailers plan for this, project their swagger and reward customers who have remained loyal? Gekko has pulled together some key insights and trends to consider with retail doors open once again.

Consumer confidence is back

Research by McKinsey & Company shows that optimism regarding the UK’s economic recovery is at the highest recorded level during the COVID-19 crisis. Despite different generations experiencing decreased household income and/or increased savings, optimism has also led to an increase in spending. Forty-seven percent of consumers showed an intent to splurge in 2021 to reward themselves for the trials and tribulations of the past year. Younger consumers, especially Gen Z, 71% are indicating a higher intent to spend or treat themselves, and are keen to get back to enjoying themselves.

The rise of localism

It is likely that a significant proportion of pent up spend may continue on local businesses which have found plenty of support during the pandemic. YouGov found out last year that 64% of people want to support local businesses and buy local products. This has been borne out by our own recent survey of predicted consumer behaviour post-lockdown. 35% of respondents said they have purchased from a local or independent store that they would not have done pre-pandemic. Meanwhile 52% of men, and 49% of women have been more loyal than not to their high street stores. While the expectation might have been the very oldest might be the most loyal to the High Street, interestingly 35-44 year olds were the most loyal, with 74% professing loyalty to their High Street. This shows the strength of multi-age support we have had for the local businesses who have so supported us during this time.

Although the trend may quieten once all stores reopen, local share of business will remain higher than it was pre-pandemic, and is an area to utilise for retailers. The personal experience and convenience of local can be tapped into. With most people still working from home, local shopping is set to continue this year and beyond to meet the needs of its immediate community.

Innovations led by physical retail are set to continue

An encouraging aspect of the past year has been the ability of smart retailers and indeed physical businesses of all description to pivot and adapt to survive. While there have been some high profile casualties, the reality remains those who have been nimble have seen the benefit. It has also shown up the myth that all innovation occurs within the digital realm. It is likely that more than a few of the innovations will last in this new retail era which continues to evolve. For example there is renewed and growing enthusiasm for click and collect, due to the convenience and hygienic aspects. It is now an embedded part of many consumer journeys, especially in grocery shopping, but also increasingly in all non-essential retail. Our own research has shown that over 35% of people want to see this trend continue even after the pandemic. Retailers need to react to those continuing to want to use this method. An obvious example being upselling products in a collection environment.

There will be a continuing overlap of online and offline in some purchasing journeys. In response, retailers should make sure they offer a slick omnichannel experience which will appeal to all generations. Click and collect will remain a great way to appeal to Generation Z. This is an audience that wants to shop online but also have a focus on sustainability with concerns about the environmental impact of the deliveries in terms of the distance travelled and packaging.

Customer experience is crucial

With online shopping now fully embedded, physical retailers need to emphasise the instore user experience to provide that differentiating factor from the online realm. A good customer experience means your customers will spend more. In fact, 86% of buyers are willing to pay more for a great customer experience. The more expensive the item, the more they are willing to pay, according to a research from PWC. CX also influences on-the-spot purchasing too, as 49% of buyers have made impulse purchases after receiving a more personalized experience. A Walker study found that at the end of 2020, customer experience had overtaken price and product as the key brand differentiator. This becomes increasingly more important amongst those generations that intend to spend more than they’ve saved.

Looking at our research, when asked what makes people want to return to the High Street, the experience was the thing that was really missed. 62% said it was the ability to see, hold and try a product. while 52% miss the ability to browse. The same number, 52% reported the sheer enjoyment of shopping as a key factor in returning.

Retailers should react by stimulating the senses and having the right experts instore. People who truly understand the product, can answer questions and can close a sale. This is something the online world can not replicate. To complement the expert, think about presenting those products in an appealing way. You will want to focus on products that that have increased in popularity during the pandemic – those supporting lives now more centred at home. Make them visually appealing with great displays and demos. Ensure you have clearly labelled product details, features and benefits and ensure any promotions are clearly highlighted, ie. what it integrates or works well with.

Prepare for the megapeak!

As we bounce back from these long months closed, retailers have the opportunity to make up for lost time with a real focus on peak trading times and trends. We may not all be going on holiday but we will be taking holiday and enjoying summer as best we can. This year peak trading times will return like no other year. In Q4 2020, we saw the advent of what could be described as a 10 week ‘mega peak’ that upended the usual promotional strategies of the season. Average spend went up to £86.06 (+£7.22 vs 2019). The goalposts were shifted once Amazon announced that Prime Day would move into October from July. Black Friday and Christmas plans that have become retail tradition saw this newcomer arriving earlier and reacted by also shifting their strategies accordingly, leading to an extended mega peak. The expectations are now set for this year, and it is unlikely that Amazon will give up its new slot without a fight. Wunderman Thompson predict it will again aim to be the one to kick off the festive promotional period.

Others will need to get their operations ready to counter, the right marketing, offers, and consumer experience will be vital. At least this time they have more notice. We may have changed in many ways but the propensity of shoppers to spend as a key way back to normal life looks certain.

Retailers need to be ready as we look forward to the boom and continuous change.

To read the full article please visit Retail Sector.

The photo that accompanies this article is by Amina Filkins from Pexels

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The Great British retail take off: 70% of consumers plan significant return to High Street

There is a huge desire to get back to the High Street, according to a new survey by Gekko on consumer shopping intentions when lockdown ends. 70% of people are planning on visiting stores as much, or more than pre-pandemic when they reopen in April with only 2% of respondents saying they wouldn’t return to the High Street. However nearly half of shoppers want reduced store capacity to continue due to coronavirus still being in circulation.

Pent up demand
The research identifies a huge desire and pent up demand to return to the High Street with key motivators being the ability to physically interact with products and have an enjoyable experience. When asked what makes people want to return to the High Street, 62% said it was the ability to see, hold and try a product, 53% support the High Street, while 52% miss the ability to browse. The same number, 52% reported the sheer enjoyment of shopping as a key factor in returning. In terms of shops they were looking forward to visiting, nearly three quarters (73%) of people were looking forward to returning to a clothes stores, 38% to garden/DIY stores and 23% to technology stores. Men are 3 times more excited about visiting tech stores compared to women. Meanwhile 24% of consumers are planning a shopping splurge when lockdown eases with 18-24 year olds the most likely to splash out (40%).

Covid safety measures
With Covid nerves still very much apparent, 86% of respondents don’t want shopping to return to exactly the way it was pre-pandemic. Nearly half of respondents (49%) want reduced store capacity to continue, which will be at odds with retailers’ desire to attract the masses back in-store. 61% want to keep hand sanitizer points and nearly a third (31%) want more click and collect. However only 11% said they wanted limited contact with goods to stay, reinforcing the fact that people like to ‘try before you buy’. For the 30% of Brits planning to visit stores less, COVID safety concerns were the most cited reason.

Changed shopping habits
While online has benefited greatly from the pandemic, the research also identified that supporting local businesses is high on consumers’ priorities. Over a third (35%) of respondents revealed they have purchased from a local or independent store that they would not have done pre-pandemic. Over half (52%) of men and 49% of women have been more loyal to their local high street stores. Younger people are independent stores’ most supportive group online, with 47% of 18-24 year olds responding saying that they shopped with them. Interestingly 38% would use new online skills to research an item online and then buy it instore supporting people’s wishes to get back to the High Street.

According to Daniel Todaro, Managing Director of Gekko: “With light now appearing at the end of the tunnel, it is even more important to understand how consumer behaviour may have changed, what people are now used too, and what they are excited about when it comes to returning to physical retail. Encouragingly, our research shows despite some less than favourable predictions, the demand for physical retail remains strong. The research shows that absence makes the heart grow fonder with consumers missing the ability to see, hold and try products and the sheer enjoyment that sensory pleasure brings, with online unable to replace this experience. However consumers remain cautious at this stage with a preference for measures to be in place. As the vaccine rollout continues and lockdown eases, retailers will hope these concerns will fade away.”

About the research -The online survey of 541 consumers was carried out by Gekko in February.

To find out more about our survey research please visit our website.

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Out Of Office – Treat Bouquet

We have a creative and vibrant team here at Gekko and we wanted to take a moment to showcase their talents and skills when they are out of the office. We hope that their hobbies and interests could give you some ideas of what to do whilst we all wait for restrictions to lift and for life to get back to normal.

With Mother’s Day on the horizon we wanted to show you how Paige, from our Head Office Team, makes fantastic treat bouquets. Paige has put together a simple ‘how to guide’ so that you can make your own ahead of the big day on March 14th. Visit our Instagram Page for some step by step images.

Don’t worry if you can’t get hold of the items Paige uses, she has also suggested substitutes that you might be able to find around the house.

You will need; 

Bouquet box or Tissue box

Wooden Skewers or something similar

Sticky take or a hot glue gun

Floral foam or polystyrene

Favourite Treats or small gifts

Tissue paper

A bow or a ribbon

  1. Create the base of the bouquet 

You will need a bouquet or presentation box but if you cannot get hold of one of these, you could try using a tissue box or another small empty box.

Place tissue paper into the box and arrange it to suit your arrangement, place a piece of floral foam or a block of polystyrene, from packaging from within a parcel, into the bottom of the box.

Top Tip!

If you are worried about it falling maybe try adding something heavy to the bottom of the box i.e some pebbles or marbles.

2. Build your bouquet structure

Find your favourite treats, ensure there is a variety of sizes to make the best looking bouquet you can. Once you have chosen your favourites, using sticky tape or a glue gun attach the wooden skewers to the back of the wrapper. Larger treats may need 2 skewers to support them.

Top Tip!

You could use sweets treats in the bouquet or if you would prefer you could use smaller gifts such as hand cream or even add in polaroid photos to personalise it.

3. Arrange your bouquet

Think about where you would like to place your treats, but remember to be mindful of the weight and distribute them to ensure it doesn’t topple over. 

Take some time to place the skewers into the box and cut, when needed, to suit your design.

Top Tip!

Place smaller treats to the front of the bouquet and larger to the back to ensure that they can all be seen. 

4. Add your bow

Once you are happy with the arrangement of your treats and everything is steady, you can add the finishing touches. Paige has used a bow that she found online but you could also use ribbon you may have left over from a christmas or birthday gift.

Top Tip!

You can never have too much embellishment so if you want to, add sparkles, stickers or paint the box to match your arrangement.

5. Give it to someone you love

Make someone’s day and give your arrangement to your loved one. You could also if they wouldn’t mind sharing the treats with you… 

Top Tip!

Add some of your favourite treats that your recipient doesn’t like, that way you are guaranteed they will share it with you.

This bouquet doesn’t just have to be for Mother’s Day they can just be a fun way to lift someone’s mood if they are struggling during lockdown or a lovely birthday gift for someone with a sweet tooth. 

If you do create your own bouquet please share pictures with us, we would love to see them!

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Retail and Ecommerce in 2021 Questionnaire

Click here to participate in the questionnaire

Here at Gekko we are always looking to better understand the customer journey at all stages of the shopping cycles in all categories. Whilst non-essential retail remains closed and we have, as a nation, been forced to change our shopping habits, we would like to ask your opinion on how you have shopped during the era of the pandemic.

You might have shopped more, shopped less, made the shift online, or are holding out for the stores to reopen. Please put yourself in the position of you as the shopper and your personal experiences to let us know more by answering the following questions.

All responses will be anonymous, and the survey should only take about 5 minutes of your time. The findings will then be aggregated to better understand how shopping behaviours have been influenced over the past year and possibly into the future.

The survey will run up to the 21st February, and we will collate the results shortly afterwards.

The photo that accompanies this article is by Anna Shvets from Pexels

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Five positive signposts on the road to retail recovery in 2021

The data presented in nightly news broadcasts is a strange hybrid of bad news and good news. Of course, we have the all too familiar grim updates on hospitalisations and deaths as a result of covid. But we also now have a counter-narrative – the numbers of people vaccinated who can look forward to a fear-free life again. We may be in the midst of a lockdown, but hope is not only on the horizon but in front of our eyes and shortly to be in our arms. The best of times and the worst of times.

Retailers are also facing a mixture of challenging and hopeful data. The British Retail Consortium (BRC) recently revealed sales growth overall falling by 0.3% in a year dominated by the Covid-19 impact – the worst annual change since the BRC began collating figures in 1995. Yet this is hardly surprising, with the Government forcing retailers to close. Unlike in the midst of other recessions, we can be confident an unprecedented bounce back is looming. A recent KPMG/Ipsos study points to a sales growth of up to 3% for 2021, despite the huge challenges in the first two quarters. Indeed there are several signals that point to a swift route to recovery in 2021.

Weathered and tested

The resilience of retail has been a remarkable success story of 2020 in the face of continuing huge challenges. Throughout the pandemic, retail has been written off only to bounce back whenever it has been allowed to trade. This is evidenced by the figures for lockdown two. According to the ONS, the headline figure for retail sales volumes in November during the second lockdown were 3.8% lower than in October, ending six months of growth. However, the drop was smaller than analysts had expected and, remarkably, sales remained 2.6% above February’s level in the year to November. This was all the more impressive given lockdown forced many shops to close during the month.

Throughout the past 12 months, retailers have had to adapt their trading at short notice, whether closing altogether or introducing a variety of safety measures and still enticing customers to spend. They have also needed to embrace new ways of trading, from click and collect to virtual shop floors to having sales experts in call centres rather than in person. This experience and ability to weather these storms and still attract customers mean retailers will be in much better shape when the good times return.

A shot in the arm for consumer confidence

Retail has always needed and relied on a confident consumer to sustain itself. You feel hopeful about the future and you are more likely to splash out. Over the past few months, we have had a perfect storm of negativity. Daily charts showing exponential infection and death rates highlighting the problem now, with no end in sight creating a feeling of hopelessness. This has created a mental health crisis to add to the immediate public health crisis. However, just as the confidence has been sapped by one thing – the coronavirus, so the cure can be the vaccine – a literal shot in the arm for consumer confidence. Of course, millions have been negatively financially impacted by the crisis, but due to the furlough scheme, many have been protected in a way that hasn’t happened in previous recessions.

Indeed this was the analysis by a KPMG/Ipsos retail think tank, which said retail should be able to look to a brighter second half of 2021. Pent-up savings, demand, a more confident consumer and a successful vaccine roll out all point to a strong rebound. However, it also points to some consumer behaviours changing during the pandemic, with performance varying across different categories.

Retailers have embraced an omnichannel strategy

The pandemic has speeded up the adoption of an omnichannel strategy for many retailers that was probably overdue. Dunelm is a good case in point. Despite huge challenges in its retail estate, the company’s investment in the online channel has paid dividends. Despite all of Dunelm’s 174 stores in Britain being closed to customers, the company expects pre-tax profit for the first half of its financial year to be about £122m, up 33.9% on the previous year. This is due to the investment in online and the trend for home furnishing during the pandemic. Similarly, Dixons Carphone Warehouse announced pre-tax profits of £45m for the six months to 31 October with online sales up 145%. Those brands that have a strong online presence have been able to trade successfully and will benefit even further when their physical stores re-open. Particularly given the next key signal.

Pent-up demand for physical retail experience

Despite online retail’s undoubted increase of the share of the cake, reports of the death of physical retail have been greatly exaggerated. After each lockdown, there has been huge pent-up demand in evidence whenever shops have been allowed to operate. This is despite uniquely off-putting circumstances for consumers to venture out. While we are in the midst of a third lockdown, we know from the end of the second one that footfall increased by nearly 20% as determined consumers returned to stores. With increasing numbers being vaccinated, we can expect an even stronger rebound this time. I am really confident we will see an unprecedented retail re-emergence when the impact of max vaccination is felt. Even retailers like Primark, which recently revealed a £300m hit to profits, remain bullish. As Jason Bason, finance chief of its parent company Associated Foods, pointed out, when its shops had been open sales were only down 14% despite the restrictions. After all, if people are still wanting to venture out during a pandemic, we can be guaranteed they will flock to stores when we have the vaccines rolled out and no longer have to be scared of strangers. People miss the retail experience.

Capitalising on the new trend of ‘shopping with purpose’

One real trend we have seen during the pandemic is ‘shopping with purpose’. This is consumers wanting to make fewer journeys out, but when they do, not returning empty-handed. Our own analysis for the last trading period, December showed really healthy growth in conversion rates of 51%. This was due to pent-up demand and people returning to stores with a real purpose to buy. Again, the result of lockdown is to make the return to retail all the more profitable – something that can give retailers something to look forward to as we focus on getting through this difficult time. This particularly applies to categories like consumer electronics with higher ticket items and people less willing to buy online. The pandemic has underscored we may be less willing to venture out, but when we do we want to make it count.

While we are in the middle of a really difficult period it may be difficult to keep optimistic, but as we approach the end game of this crisis we can be sure that the public will want to celebrate their new-found freedoms. Retailers that have adopted the right strategies can benefit when good times return.

To read the full article please visit The Drum.

The photo that accompanies this article is by Kaboompics .com from Pexels

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