Tag Archives: retail

Retail staff are more influential

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New survey by Gekko reveals retail staff are more influential than celebrities and vloggers

The results from a recent survey published today by field marketing agency Gekko entitled ‘Shopper Influencers’ reveals that the bricks and mortar retail environment continues to play a significant role in influencing shoppers purchasing decisions across both general and high value goods. The survey by OnePoll was conducted among 2000 UK consumers between 18 and 55+.

Even among today’s tech savvy 18 to 24 years old’s more than 40% prefer to head in-store to see, touch and experience a product before buying, rising to 58% for the over 55’s. Most surprising is that 38% of 18 to 24 year old’s want a personal service and recommendation from in-store staff, the highest among all of the age categories. Only a small proportion of 18 to 24 year old shoppers are swayed by celebrity endorsement (18%) or the opinion of vlogger’s and bloggers (28%).

The influence of friends (70%) and online reviews (71%) among this age group is significantly higher in making product purchase decisions and this is consistent across all age groups. And when it comes to high value items such as TV’s, home appliances and luxury items, the trend continues with online reviews, personal recommendation and the in-store experience rating as the most important influences across all age categories.

When it comes to looking at the key influencers across product sectors there are some notable trends: 

  • Within the tech sector, online reviews from other people are still heavily relied upon (38%) among 18 to 24 year olds but interestingly this is also the case for all age groups with (35%) for over 55’s.
  • Similar to tech, for home appliances, user reviews rate highly across all groups (32%) 18 to 24 year olds, rising up to (46%) among 45 to 54s.
  • For beauty and fashion, reviews from other people score highly across all age groups but in this sector, unlike the others, the influence of bloggers and vloggers is much more highly rated, although only among the younger 18-24 generation (32%) for beauty and (23%) for fashion.

When asked what advertising has influenced a considered purchase none of the mainstream advertising channels were cited as influential: just 7.5% for TV, 8.7% for website, 4.6% for social media, 3% for billboard and 2% for newspaper and print. Advertising in-situ within the retail environment however was rated the key influencing factor at 19%.

Daniel Todaro, Managing Director of Gekko, said: “According to the ONS, while online sales continue to rise, e-commerce as a percentage of total retail sales July to August 2017 was still only 16.4%.  The findings of this study show that the shop floor is clearly still winning in considered purchases, therefore marketers need to invest in making the experience as good as it can be. When a shopper is ready to make a purchase they will look for advice and guidance from people who have experience of using the product be that friends, family, other users or experts in-store. Consumers today are much more savvy and recognise that celebrities and vloggers have been paid for their endorsement, while time and money spent working with staff on the shop floor will in fact pay for itself through category development and increased sales at a higher average sales price, making your marketing work harder.”

Source: Gekko

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Create a real experience to bring gamers back into store

Despite a mixed result for the physical entertainment market in the first half of 2017, with sales of music falling by 5% and video by 13%, gaming beat this trend, however, growing by 0.5% year on year.

These results are positive news for dedicated gaming retailers, but hardly reassuring for those who are fighting a tough battle against the increasingly dominate position of online retailers and online download platforms. These results are thanks in part to a strong set of new releases such as Zelda: Breath of the Wild and Horizon: Zero Dawn which have drawn consumers into store. However, if gaming retailers are to increase their level of growth and avoid results seen in other physical media categories, they must adapt to suit the ever changing needs of consumers and gaming fans.

At the moment, it is all too easy for consumers to download software via their consoles’ marketplace, or purchase a new console or piece of hardware from an online retailer for home delivery – and this isn’t going to change. If gaming retailers are going to compete against online retail, they need to offer a service that will bring consumers onto the high street and into store. Game’s recent demonstrations of PlayStation VR (however controversial) show exactly what retailers can offer – a real, unique and immersive gaming experience that consumers can’t download or stream.

Though space is limited in some stores, retailers need to offer demos of key new titles for consumers to try. Rather than just leave customers to their own devices, store staff need to be more active in-store, speaking to customers about their needs and offering advice on the best game or console for them. Most other categories in tech and consumer electronics make use of brand ambassadors and product demonstrations to great effect – 74% of consumers want to shop in store so that they can see, touch and experience the product before buying.

Likewise, offering exclusive deals or special offers that are only available in store is a great way to encourage footfall. Competing with online only retailers is easier said than done, but offering exclusive deals is a sure-fire way of convincing gaming fans to spend their money on the high street rather than for the basic package online.

If gaming retailers can make this effort and offer consumers a space where they can really experience a gaming system or piece of software before buying, they can bring consumers back into store who might previously have stayed at home.

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Positive news for UK retail

Recent yearly results published by Dixons Carphone are good news for all retailers, whether multiple or independent.

Despite price increases and decreasing consumer confidence following the Brexit vote, Dixons has been able to beat the downward trend, increasing pre-tax profits by 10 per cent and like-for-like sales by four per cent compared with 2016.

Looking at the whole of the UK, some key categories have seen lower sales. With TV, for example, seeing a 14.9 per cent unit sales decrease last year, it’s positive news for UK retail that the number-one consumer electronics retailer is proving that consumers are still heading to the high street to buy household tech.

As an agency that represents tech brands in UK retailers, including Dixons Carphone, Gekko’s results in-store agree with theirs, with sales having increased by 5.6 per cent relative to the same period in 2016.

One category that has been particularly significant in improving results for tech retail has been the smart home. Still a growing sector, expected to be worth $58.47 billion (£45.3bn) globally by 2020, the smart home is enthusing consumers to upgrade their appliances and home technology.

In a recent campaign for a smart-home brand, Gekko’s training team created a 68 per cent uplift in knowledge among store staff, which helped deliver a healthy 36 per cent sales uplift in the following weeks.

For independent retail, the strong results seen by Dixons Carphone set an optimistic tone. Gekko knows that 74 per cent of consumers prefer to shop in-store, because it allows them to see, touch and experience the product before buying. Dixons’s results show that consumers are still heading to the high street when looking to purchase a high-ticket item.

These ‘considered purchases’ – products that shoppers need time to think about before deciding it’s right for them – require that additional assistance only found in physical retail.

To match the large retailers in their success, independents need to create a welcoming, ‘showroom’-style atmosphere that will encourage shoppers to try out products before they buy.

A conversation with knowledgeable store staff can easily transform a browser into a customer. Developing categories, such as the smart home, are important areas for potential growth.

Set your store apart by offering shoppers an experience they can’t find in larger retailers, and you too can see these positive results.

Read more at: http://ertonline.co.uk/opinion/positive-new-for-uk-retail/

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Identify the problem

Consumer electronics retailing lends itself like no other as a tool for retailers to be more dynamic in showcasing solutions and brands for consumers.

Retailers are experiencing growth across all categories, including a 1.5 per cent sales uplift in major domestic appliances expected through to 2021, of which 20 per cent of sales are made in the independent sector. Likewise, the UK small domestic appliance market was worth £976 million in 2016, and is expected to grow further this year.

Whether they are looking to upgrade an existing device, enter into a new product ecosystem, or make a ‘distress purchase’ to replace a product that has failed, consumers are looking for a solution to a lifestyle ‘problem’.

As a retailer, it’s within your power to provide this solution, offering consumers the right product for their needs and, in doing so, reinforcing why traditional retail is still the best platform to buy ‘technology’ products. The question is: what is the best approach to take for ‘solution selling’?

The problem

Ensure that sales staff know the products and services inside-out. Having an authoritative voice on the shopfloor to reassure consumers is the first step to completing that considered purchase.

Aside from this, a successful salesperson needs to employ a range of skills, including questioning, listening and demonstrating empathy with the customer.

Identifying the problem is the first step to finding a solution. Sales staff should be asking key questions of consumers to discover their needs, budget and motivations. Find out why the shopper is in the store. Are they looking to buy new, upgrade a device or has something broken down and needs replacing? What do they currently have? What specific features do they require? Where it will be used? How often? Is it a primary or secondary device? What is their preferred price range? Asking these questions will give your staff the necessary information to start the sales process in line with your store sales approach, using the customer’s needs to tailor their approach to products and brands that will suit them and their lifestyle.

It’s often too easy for sales staff to make assumptions about what is best for the customer, rather than asking questions. Equally, applying your own spend versus value opinion is not identifying with your customer, as value is in the eye of the spender, not the salesperson. To avert a hard sell, avoid these pitfalls and ensure your staff are fully qualifying shoppers before moving on to a demonstration.

Offer the solution

Once the customer’s needs have been established, sales staff can advise on the best product and brand specifically for the individual shopper. For retailers, selling the solution is all about the customer experience, and how the customer is introduced and immersed into the product and brand.

Your showroom environment should offer consumers the opportunity to experience a product or brand before they decide to make a purchase, allowing them to immerse themselves in the features and benefits of the product first-hand.

With the assistance of a knowledgeable staff member, your customer wants to be reassured that the product will meet their needs and solve their ‘problem’. To achieve this, have a working demo model to show customers how the device would function in their own home. Even if it’s something simply, like demonstrating the load capacity on a washing machine using a bag of T-shirts, this gives customers an extra bit of information that could make all the difference to their decision to purchase, helping to close the sale.

Above all, ensure your staff are trained on core ranges and brands so that they can explain the benefits to shoppers. Don’t make the mistake of ignoring what the shopper has told you, so that the features link naturally to the customer’s lifestyle or specific needs. Shoppers need to know how the product will solve their unique ‘problem’.

Personalise the sales approach. If your customers can see the product working, imagine it in their home, and be sure that it will fit their lifestyle, listen and tailor your responses accordingly and they’re much more likely to make a purchase.

Upgrade the solution

To upgrade from a standard sales approach to a ‘solution selling’ approach, the sales staff need to identify and enquire about the bigger picture, identifying opportunities and sweeping their customer up with a great shopping experience.

On top of offering a solution during the sales process, staff have the opportunity to ‘level up’ the sale by showing customers how much more they can achieve from their purchase by increasing their budget, in some cases marginally.

Having established the customer’s needs and advised on a product to suit their lifestyle, take them one step further by offering attachment sales that can enhance or protect the product. A good example is TV, where many shoppers will be looking for a perfect set-up to upgrade their home. Having decided on a TV, why not introduce a soundbar to the sale, demonstrating the superior sound quality offered and how that can enhance the user experience.

Gekko is expert in delivering this sort of training to retail staff, achieving an average 33 per cent soundbar attachment rate on TV sales. These sorts of high-value attachments benefit both your customers and your bottom line by increasing your average sale value. With this sales approach, Gekko was able to increase average sale value by 41 per cent over the entry-level smart TV.

When completing the sale, think about other questions you can ask the customer. For example, to get the most out of this smart TV, the customer will need an internet connection. Do they have good wi-fi in the living room? No, then how about some wi-fi range extenders? That could also include a cover plan or installation service. In this way, you’re demonstrating to the customer why they were right to come in-store and experience the product in a way they could never have done if they had simply shopped online.

This approach to solution selling is positive for both customer and retailer. The customer has a solution to their purchasing ‘problem’, having been advised and immersed in the best product and brand for their needs by a knowledgeable staff member.

Equally, the store benefits from up-selling and attachment sales as a result of this more considered approach to sales. The key focus though is the customer experience – if shoppers are given a ‘glimpse into the future’ – imagining themselves using the product and how it can fit into their lifestyle – they are much more likely to make that decision to purchase there and then.

They may also come back to expand a set-up, buy that matching MDA or simply choose your store for every future ‘technology’ purchase, because they know they will be listened to, offered solutions, given a service they appreciate and will enjoy the experience.

 

Read more at: http://ertonline.co.uk/opinion/identify-the-problem/

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Counting the cost of Brexit

The ERT Turning point Summit held in February touched on the many opportunities that face independent retail.

Like it or not, I refer to these as opportunities, as challenges paints a negative picture rather than an optimistic future in the most dynamic of industries – technology.

One area that we must remain optimistic about, as it’s a certainty, is Brexit and the impact this is having on trading even before Brexit has happened. By the time you read this, the Government will have triggered Article 50, starting the process of extricating the UK from the EU.

When the vote happened, there was much debate regarding the immediate impact in trading. In August, I wrote: “Any price increases will certainly not be absorbed by resellers, and will instead be passed on to the end user”. With the significant fall in sterling against the dollar (10 per cent) and euro (seven per cent), many brands chose to use this as reason to make trading that little bit more difficult for retail, in particular technology.
First to raise the average price of every product by 10 per cent was Dell, later followed by Apple who chose to increase prices by around 25 per cent again across every product, with a MacBook Pro jumping from £999 to £1,249. It wasn’t just hardware, however, as apps all increased from 79p to 99p and £7.99 to £9.99, all on the back of the Brexit vote and currency fluctuations.

Microsoft followed with an 11 per cent increase, and more recently Sonos, with what are now ‘old’ products, increased their pricing by 25 per cent across the entire range which took effect on February 23, taking a Play:1 from £169 to £199 and Play:5 from £429 to £499.

In the MDA category, although not a blanket price increase, many European brands, including Siemens and Indesit, are demanding payment in euros from distributors, pushing up retail prices due to a ‘trickle-down’ effect resulting from the increasingly unpredictable and unfavourable exchange rate.
These brands have something in common: they are category leaders and, to a certain extent, dictate the development of their respective categories through a rigid pricing structure and go-to-market plan. What they perhaps do not appreciate is that consumers aren’t stupid and can choose to opt for other brands with more appealing price points – an opportunity for emerging and established brands and retailers to explore.

The challenge for retail is how to up-skill your work force to continue selling the same products they’ve always sold successfully, but now at a higher price point. Sales teams will have to work harder to close a sale, and perhaps longer, but for no incremental benefit to you. Retailers don’t benefit in the same manner from what some may consider an arbitrary price increase, with only a slight or no increase in margin.

While many who voted ‘out ‘may have never considered that the costs of goods we import would go up, the reality is that it becomes a convenient rationale for many brands to apply an increase, blaming Brexit, and passing the cost on to consumers rather than absorbing this themselves. This is likely to be applied across every category.

Away from tech, others brands, such as Tesla and Lego, have both applied a five per cent increase, stating that this action was taken as “direct result of the continuing devaluing of the UK pound”. We saw what happened when Unilever tried to increase the cost of products such as Marmite by 12.5 per cent – the public made it known that they have a choice and they would choose to abandon a brand for a similar product. You need to have rather good brand equity to successfully manage price increases that impact on your loyal customers’ pockets.

Call it a ‘Brexit levy’ if you like, but let’s be realistic: it’s not going away. With Article 50 triggered, currency fluctuations could prove to be more negative and incur further price hikes. On the other hand, they could become positive, but if so I suspect we won’t see brands roll back price increases, instead retaining their increased pricing model to establish range pricing.

Whatever the outcome, market economics means retailers of all types must remain optimistic and have a clear vision of hope as they navigate the future. This includes pushing back on brands that make it harder to sell. Perhaps by introducing into your categories new or up-and-coming brands that could offer you more margin and your customers a better product at a reasonable price they are happy to pay.

 

Read more at: http://ertonline.co.uk/opinion/counting-the-cost-of-brexit/

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Take control of your destiny

ERT  has taken the brave step to look at how independent retail can be supported and survive, marking the start of a ‘Turning Point’ in the future of independent electrical retail.

Rent and rates increases and the Living Wage are just a few of the challenges retailers must combat. They can do this with a smart approach and by giving consumers what they desire, either in-store or online as an omnichannel approach.

One of our leading retailers, Robert Hughes, states that “personalisation and localisation is relevant” – sound advice from an independent group that is growing successfully.

Reliance on manufacturers to ‘do more’ is old-fashioned and misplaced. Manufacturers do not have a responsibility to reinvigorate electrical retail – it’s a collective responsibility.

With a falling pound, lower margins and greater competition in crowded categories, waiting for a brand to invest sufficiently in you is unlikely. Retailers need to be in control of their destiny and reinvigorate their model to appeal to all. Get brands to support you on training, promotion and display. Ask your buying group for those valuable generic soft skills that give you the ability to develop the categories that work for you.

Independents need to look for new opportunities for growth. The most obvious is the smart home, which is going to be linked to almost every category within the sector. With Gartner suggesting it could become a global market worth $38.35 billion by 2020 – that’s only three years away – the smart home is the future of electrical retail.

Independents have an opportunity to offer consumers a shopping experience not found in large multiples.

In the TV/AV category, 62 per cent of shoppers are between the ages of 30 and 49. One-in eight are male. This is an increasingly important statistic and, to quote Sony sales director for specialists Roy Dickens, the growth opportunity is “crossing the threshold into the consumer’s home” to install a solution, increasing attachment by offering a service that provides an end-to-end solution.

In domestic appliances, 70 per cent of shoppers are between the ages of 30 and 49. More than half (55 per cent) of shoppers in the category are female. This demonstrates the existence of ‘generation rent’, who don’t own their own homes and would be more inclined to rent MDAs.

Although shoppers with disposable income are in the older age brackets, don’t discount younger audiences. Many categories are more relevant to a younger audience – a prime example being audio. With just over half (52 per cent) of 16 to 24-year-olds regularly streaming music online, increasing your range helps to broaden your store’s appeal.

The omnichannel approach is an important part of the strategy and should be embraced as a method of attracting customers in-store whether, virtually or in person. The experience they encounter is what makes a shopper become a customer.

Retailers must ensure their staff can sell the benefits of high-value products. This can only be done through staff training, display, promotion and experience by retailers, supported by manufacturers, to achieve the combined approach needed to influence that ‘turning point’.

 

Read more at http://ertonline.co.uk/opinion/take-control-of-your-destiny/

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Focus on Streamlining the In-Store Experience for Customers to Return

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Marks & Spencer (M&S) once again is in the news and is poised to close 60 poor-performing stores and increase its food presence due to falling fashion revenues and profit. Let’s not forget, this retailer has never placed itself as a high-fashion retailer, but one with a broad appeal for which it must cater. David Gandy, Rosie Huntington-Whitely, and the latest conscript Alexa Chung, who is yet to be measured for success, are fine brand ambassadors which have attracted new customers to the store — at least once. Therein lies the issue: let’s be honest here, ambassadors are not the problem and in most cases, depending on your taste, the fashion isn’t that bad or of poor quality either — it’s the experience.

Walk into an M&S and you’re greeted with a confused retail environment akin to a Poundland. There is harsh, bright lighting that bounces off the laminate flooring and awful graphics are festooned across the store. Images of middle-aged men in casual slacks will not make me go deeper into the M&S environment if that’s what I’m greeted with immediately on entry.

The fashion is laid out in a manner that speaks to no one in particular, big and small sizes, man-made and natural fibres, knits, pleats, and high neck lines share rails with garments for a totally different and diverse customer. There is no differentiation between ages and sizing in its merchandising, making it harder for shoppers to buy on impulse and instead expecting you to ‘browse’.

As a nation of shoppers we like to browse, but only for certain items. Or on the rare occasion, we see an item in the window and nip it to buy it there and then. At this point we may be enticed by the environment to stay a bit longer, browse, and become a true customer encouraged to visit again. Unfortunately, M&S has little linger appeal due to its stark and clumsy environment and merchandising, which doesn’t even reflect the 2016 Christmas campaign with Mrs. Clause. The message of a Christmas filled with love is immediately diminished on entering into store.

The solution? Bring them in with great food and great ambassadors to entice them deeper into a store with defined zones and a warmer, friendlier environment that makes customers feel comfortable rather than awkward. Differentiate soft mixed with hard zones, and group fashion by age, audience, and size so you know where you are in the store. Stop arranging shoes on shelves like tins of baked beans, and merchandising must-have fashion items next to shortbread and lavender draw liners.

The traditional M&S shopper has changed, while the new shoppers M&S attract through endorsement and ATL are put off by the environment. It’s imperative that every retailer makes their customer experience appealing, clearly defining where in the store they should be, and not approaching fashion retail as a one-size-fits-all.

Shoppers are intelligent and if you want customers to part with their hard-earned cash, you need to make it appealing, appropriate, and rewarding to your audience. Does anyone you know brag about the ‘joy’ of shopping in M&S due to its in-store experience or similarly about the items they bought? I suspect very few do, therefore by changing perceptions and carrying your ATL message TTL via social and the retail space may facilitate the love M&S desires as a fashion retailer.

 

Read more at: http://www.brandingmagazine.com/2016/12/05/focus-on-streamlining-the-in-store-experience-for-customers-to-return/

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All I want for Christmas…

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Whoop, whoop it’s almost Christmas, and if you haven’t already considered what you’ll be ranging, here is some inspiration to convert shoppers into valuable customers.

Secretly, we love to buy for ourselves when shopping for presents. The truth is out there, it’s no secret, with everyone on average spending £84 on themselves when Christmas shopping – that’s an accessory like a pair of headphones or an SDA to kick-start that New Year’s resolution in healthy eating.

The most popular Christmas gifts are entertainment-based, with 63 per cent choosing these over clothes, food and drink, spending an average of £489.04 on approximately 14.8 gifts for 8.3 people – that third of a person only needs something small.

Appealing

Now, with an identified average spend per person of £61 (in addition to the previously mentioned £84), what do you range that meets that price point? Not much, I’m guessing, thus increasing the importance in making sure that those items that fall within this price point are clearly visible and appealing to shoppers in your store.

New technology is still available to buy, think Ring’s video doorbell, which also won the Editor’s Choice category at this year’s T3 Awards. At £159, its innovation and functionality can be justified by ease of installation and potential as a household gift. Speaking of innovation, think Jabra’s range of wireless headphones, leading the way in the ‘hearables’ category, merging high-quality audio increasing through the range with fitness tracking via your ears.

Equally, on the back of the phenomenally successful and much discussed The Great British Bake-Off, there’s an SDA at a range of prices that every fan of the show desires to grace their kitchen or make them a better baker. These include the Kenwood mini choppers, AEG blenders and the KitchenAid hand mixer or, if you’re really generous, the Artisan stand mixer and Magimix 5200XL food processor. With SDAs helping the 41 per cent of Brits cooking from scratch, the opportunity to develop your sales, across the SDA category, can be linked to a gift purchase.

With two-in-five shoppers stumped on what to buy their friends and family, they can be swayed as 68 per cent buy based on deals and 62 per cent on convenience. By highlighting the deal, its USP and suggested target audience, closing a sale among the 40 per cent who are undecided could be simpler than you thought.

Moving up the generosity scale, a premium audio device is the perfect gift for any audiophile or music-loving household. Consider an expert in the audio category, such as Naim – also a T3 winner. The Mu-so wireless speaker combines stylish design with unrivalled sound quality filling your home with your favourite tunes compatible with all the popular streaming services – very appropriate for the Christmas period.

With premium audio sales growing by 22 per cent year on year, it’s a great opportunity to increase your average basket value. Perhaps use a showroom style approach, allowing customers to see the speakers in a living room setting, perhaps even syncing their phones to the speaker to test the wireless connectivity. Creating some in-store theatre is key to selling these premium items.

Addressing those entertainment shoppers, the huge media coverage enjoyed by the exciting Virtual Reality category – expected to exceed $2 billion globally this year – means it could be the time to start stocking a VR or AR proposition within your line up. The eagerly anticipated PlayStation VR is an accessory for the vastly popular PS4, of which there are over 1.5 million in homes across the UK. This is due to launch on October 13 and expected to RRP at £349.

Exciting

Now, this may be more than the average spend, but it’s an exciting, innovative product with a forecasted 50 games available by the end of the year, with highlights such as Batman Arkham VR and EVE: Valkyrie. It’s going to be huge and a welcome gift for any PS4 user or their family. If this is beyond your ranging, think Google Cardboard. With an RRP of £15 and thousands of available apps, it’s the ideal stocking filler for anyone of any age with any brand of smartphone. With Sky and Freeview experimenting with VR as well, entertainment platforms are taking the technology mainstream.

Take some comfort in knowing that only 14 per cent of shoppers surveyed return an electronic gift. If sold correctly, return rates should be negligible within your store especially if you’ve trained your staff. Remember ranging is one thing, but if your team doesn’t know what you range, what your core Christmas items are, how to sell these correctly to the right customer by identifying what they want and matching USPs and how to close a sale, there’s no guarantee of success.

Perhaps consider incentivising your staff to attach your lower-priced items to higher-priced transactions, assisting an increase to your average basket value.

Santa Baby may be coming down the chimney with some great tech, if you get your ranging and training right.

 

Read more at: http://ertonline.co.uk/opinion/all-i-want-for-christmas/

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High street sales are booming, say new retail figures

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Recent figures from the Office of National Statistic suggest high street retail is booming this autumn, with retail sales up 7.4% year on year in October. With an increase of 1.9% over September, this October saw the highest rate of sales growth since April 2002. Contrary to many who predicted an economic slump after the Brexit vote, and while the UK remains in Europe, retail appears to be in a good place leading up to the most important sales periods of the year: Black Friday and the Christmas Peak.

More good news for retailers is the increasing amount spent in high street stores, with consumers spending 6.6% more in October 2016 compared with last year, and up 2.1% on September. Retailers will be hoping this upward trend continues, increasing consumer spending during the peak sales period. The average weekly spend in October was £7.7 billion, an increase of £500 million year on year, clearly showing consumer confidence in the UK economy has not diminished despite warnings. Furthermore average retail prices fell 0.7% in October year on year, demonstrating how high street competition is dampening the effect of the decreased value of Sterling. Some have intimated that spending may be spiralling out of control, creating the bubble which forced the previous recession. However the lessons learned from back then may be applied.

The ONS report has even more good news for department stores and consumer electronics brands. The report found that 43% of retail sales in October 2016 were in non-food stores, encompassing department stores and household goods. Sales volume for non-retail stores was up 2.8% year on year, highlighting the growing consumer confidence in buying household goods. These figures are perhaps inflated by the weak Sterling which has increased international spending in particular on luxury goods, making that Hermes bag a steal in comparison to the price back home in its native France.

Overall, the ONS report suggests shoppers are ready to spend this Christmas. Of course, brands should not take these figures for granted, as in a highly competitive marketplace it’s still vitally important for brands to make an impact in store and be seen. Millions have been spent by retailers on this season’s Christmas adverts; they are now reliant on the products and brands they range to entice and convert shoppers into customers.

In order to successfully achieve this, all brands should be considering their retail execution at this busy time, especially focusing on education, merchandising and promotion to ‘wow’ shoppers looking for the perfect Christmas gift for themselves or another.

 

Read more at: http://www.innovativeelectricalretailing.co.uk/index.php/high-street-sales-are-booming-say-new-retail-figures/

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Smart staff for a smart sale

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The smart home has arrived, the Internet of Things is gradually making its way into everything from kitchen appliances to thermostats, and you’ll soon be able to control most things in your house from your phone.

The global market for smart-home appliances is expected to be worth $38.35 billion (£28.9bn) by 2020, and is only expected to grow further as our homes become more and more ‘connected’.

In the UK, sales of smart-home technology have increased by 81 per cent year on year, according to John Lewis. Although 66 per cent of UK consumers agree that the smart home is an appealing concept, many retailers are experiencing problems when trying to train their staff to sell this category, which presents some major challenges.

Despite technologically aware customers showing interest, there is still a lower level of demand for smart-home products over conventional ones, meaning that sales staff have limited opportunities to talk ‘smart home’. In some cases, this leads to apathy when it comes to investing time into training. This is not helped by the fact that many staff still believe that this type of technology is the future rather than the present.

It is critical that sales staff understand that they need to educate themselves and develop an interest in this emerging category.

As predicted, virtually all products will become connected over the coming years, so any purchase of a smart product is a safe bet for the future. With 3,427 smart products on the market (from 439 brands) – an increase of 61 per cent – the market is growing.

Another major challenge for retailers is that many consumers struggle to understand the concept of the smart home and its benefits. A quarter of UK consumers cite a ‘lack of knowledge’ as their main reason for not purchasing a smart-home product. Many customers, once given an explanation, understand how the smart home works, but still struggle to see how it will improve or enrich their lifestyle.

Staff need to be trained on how to sell the benefits of the smart home, giving shoppers some context as to how the technology may fit into their lives. A lack of hands-on experience with smart-home products means it is hard for store staff to explain the real-life uses for this technology. It’s no coincidence that higher sales come from those staff that own the product, as they are able to give practical examples of how the connected home has benefited them.

To overcome these barriers, it is perhaps helpful for retailers to move away from selling the ‘technology’ itself and instead outline for customers how the tech interacts with their lifestyle and delivers real, tangible benefits.

Sales personnel should ask more pertinent questions of the customer to establish their wants and needs in order to demonstrate the relevant connected-home product that will enhance and improve their life.

Currently, sales colleagues tend to focus too much on the broadband internet connection, app or other technology involved, which for many shoppers, while essential to know, is still a baffling science and serves to create unnecessary confusion.

A change in approach is vital for retailers to sell the smart home – focus on the benefits rather than the technology itself. Early adopters already understand the technology, but if these products are going to become truly mass-market, it is necessary to make the category simple and relevant to every consumer.

The smart-home landscape is changing as it becomes more sophisticated and reliable. More products will be smart-enabled, as demonstrated by SoftBank with its recent purchase of semiconductor IP company Arm Holdings.

IFA 2016 will without doubt exhibit significantly more innovation from more brands for the smart category. It’s the brave that will survive in this ever-changing market.

 

Read more at http://ertonline.co.uk/opinion/smart-staff-for-a-smart-sale/

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