Tag Archives: retail

Click and regret: Brits wasting over half a billion pounds every year online on unwanted goods!

IPM Bitesize Blog

A new report – Click and Regret- from marketing agency Gekko has revealed the shocking waste now involved with online shopping. According to the survey, £641m is the astonishing figure consumers are wasting online every year buying goods they don’t want and failing to return them.

The survey of 2,000 UK adults conducted by One Poll on behalf of Gekko reveals that 27% of respondents (equating to 12.4m UK adults) order goods online they regret buying but fail to return. The average amount wasted every year is £51.90 per person equating to £641m overall.* Nearly a third of UK adults 31% also confess to being lured into buying items they don’t want or need and 70% regularly regret buying things online so send them back.

Despite people seemingly unable to resist the temptation of spending money online, nearly half felt that the ease of shopping online fuels extensive shopping habits and 43% said they also spend more money online than they originally intended.

Although internet shopping is meant to be time efficient, a whopping 65% said they spent more time shopping online than they expected because there’s too much choice 69%, they want to hunt for the best prices 54% and they feel compelled to shop around 34%.

However, respondents also claim to be concerned about the environmental impact of online shopping with 75% worried about the excessive use of packaging and single use plastics. Meanwhile 70% said they were concerned about the societal impact on the high street and local economy of increasing online shopping.

Daniel Todaro, Managing Director of Gekko, comments: “It’s clear from this research that online shopping can be a false economy.  Although in theory we can return the goods we buy, many of us are too busy to bother, so what starts as convenient soon becomes costly and inconvenient. This results in unwanted goods cluttering cupboards, gathering dust in wardrobes or heading for landfill at an alarming rate.  With our high street suffering and many people still enjoying its benefits such as try before you buy, excellent customer service and immediate purchasing experience, people should be more mindful before they click and get out and support their local businesses, help the environment and their pockets.”

To read the full article please visit IPM Bitesize.

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Click and regret: Brits wasting over half a billion pounds every year online on unwanted goods

The Drum Blog

A new report – ‘Click and Regret’ – from marketing agency Gekko has revealed the shocking waste now involved with online shopping. According to the survey, consumers are wasting £641m online every year buying goods they don’t want and failing to return them.

The survey of 2,000 UK adults conducted by One Poll on behalf of Gekko reveals that 27% of respondents (equating to 12.4m UK adults) order goods online they regret buying, but fail to return. The average amount wasted every year is £51.90 per person, equating to £641m overall. Nearly a third of UK adults (31%) also confess to being lured into buying items they don’t want or need, and 70% regularly regret buying things online so send them back.  

Despite people being seemingly unable to resist the temptation of spending money online, nearly half felt that the ease of shopping online fuels extensive shopping habits and 43% said they also spend more money online than they originally intended.

Although internet shopping is meant to be time efficient, a whopping 65% said they spent more time shopping online than they expected because. Additionally, 69% felt that there’s too much choice, while 54% want to hunt for the best prices, and 34% of respondents feel compelled to shop around .

However, respondents also claim to be concerned about the environmental impact of online shopping with 75% worried about the excessive use of packaging and single use plastics. Meanwhile 70% said they were concerned about the societal impact on the high street and local economy of increasing online shopping.

Daniel Todaro, MD, Gekko, comments: “It’s clear from this research that online shopping can be a false economy. Although in theory we can return the goods we buy, many of us are too busy to bother, so what starts as convenient soon becomes costly and inconvenient.

“This results in unwanted goods cluttering cupboards, gathering dust in wardrobes or heading for landfill at an alarming rate. With our high street suffering and many people still enjoying its benefits such as try before you buy, excellent customer service and immediate purchasing experience, people should be more mindful before they click and get out and support their local businesses, help the environment and their pockets.”

To read the full article please visit The Drum.

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Click and regret: Brits wasting over half a billion pounds every year online on unwanted goods, Gekko finds

Retail Times Blog

A new report – Click and Regret- from marketing agency Gekko has today revealed the shocking waste now involved with online shopping. According to the survey, £641m is the astonishing figure consumers are wasting online every year buying goods they don’t want and failing to return them.

The survey of 2,000 UK adults conducted by One Poll on behalf of Gekko reveals that 27% of respondents (equating to 12.4m UK adults) order goods online they regret buying but fail to return. The average amount wasted every year is £51.90 per person equating to £641m overall. Nearly a third of UK adults 31% also confess to being lured into buying items they don’t want or need and 70% regularly regret buying things online so send them back.

Despite people seemingly unable to resist the temptation of spending money online, nearly half felt that the ease of shopping online fuels extensive shopping habits and 43% said they also spend more money online than they originally intended.

Although internet shopping is meant to be time efficient, a whopping 65% said they spent more time shopping online than they expected because there’s too much choice 69%, they want to hunt for the best prices 54% and they feel compelled to shop around 34%.

However, respondents also claim to be concerned about the environmental impact of online shopping with 75% worried about the excessive use of packaging and single use plastics. Meanwhile 70% said they were concerned about the societal impact on the high street and local economy of increasing online shopping.

Daniel Todaro, MD, Gekko comments: “It’s clear from this research that online shopping can be a false economy.  Although in theory we can return the goods we buy, many of us are too busy to bother, so what starts as convenient soon becomes costly and inconvenient. This results in unwanted goods cluttering cupboards, gathering dust in wardrobes or heading for landfill at an alarming rate.  With our high street suffering and many people still enjoying its benefits such as try before you buy, excellent customer service and immediate purchasing experience, people should be more mindful before they click and get out and support their local businesses, help the environment and their pockets.”

To read the full article please visit Retail Times.

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Click and regret: Brits wasting over half a billion pounds every year online on unwanted goods

Lovely Mobile Blog

A new report – Click and Regret – from marketing agency Gekko has revealed the shocking waste now involved with online shopping. According to the survey, £641m is the astonishing figure consumers are wasting online every year buying goods they don’t want and failing to return them.

The survey of 2,000 UK adults conducted by One Poll on behalf of Gekko reveals that 27% of respondents (equating to 12.4m UK adults) order goods online they regret buying but fail to return.

The average amount wasted every year is £51.90 per person equating to £641m overall. Nearly a third of UK adults 31% also confess to being lured into buying items they don’t want or need and 70% regularly regret buying things online so send them back.

Despite people seemingly unable to resist the temptation of spending money online, nearly half felt that the ease of shopping online fuels extensive shopping habits and 43% said they also spend more money online than they originally intended.

Although internet shopping is meant to be time efficient, a whopping 65% said they spent more time shopping online than they expected because there’s too much choice 69%, they want to hunt for the best prices 54% and they feel compelled to shop around 34%.

However, respondents also claim to be concerned about the environmental impact of online shopping with 75% worried about the excessive use of packaging and single use plastics. Meanwhile 70% said they were concerned about the societal impact on the high street and local economy of increasing online shopping.

Daniel Todaro, MD, Gekko comments: “It’s clear from this research that online shopping can be a false economy.  Although in theory we can return the goods we buy, many of us are too busy to bother, so what starts as convenient soon becomes costly and inconvenient. This results in unwanted goods cluttering cupboards, gathering dust in wardrobes or heading for landfill at an alarming rate.  With our high street suffering and many people still enjoying its benefits such as try before you buy, excellent customer service and immediate purchasing experience, people should be more mindful before they click and get out and support their local businesses, help the environment and their pockets.”

To read the full article please visit Lovely Mobile News.

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What do the Tory candidates policies mean for the high street

LLB BLog

In the blizzard of spending splurges promised by the two candidates to be our next Prime Minister has been some announcements that could be very significant for High Street retailers. Boris Johnson, the clear favourite, has announced that he wants to introduce 100% business rate relief on free-to-use ATMs to keep as many as possible open in town and city centres to ensure shoppers can withdraw money. He has declared that he wants to curb the closure of Automated Teller Machines (ATMs) that has followed the surge in contactless payments.

While this may appeal to shire Tories of a certain vintage the trouble is the Boris approach is as feasible as owning a unicorn. In a contactless world, less and less people are drawing out cash when you can tap a card or your phone. The subsidies he is proposing would not allow for the cash machine to be free as it still needs to be maintained, filled, connected and bank charges apply which make the model loss making for any operator especially if it is used infrequently. More poppycock from the master of poppycock.

Johnson also talks about wanting ‘a range of bureaucratic and legal barriers to business to be swept away’ to allow high-street shops to flourish. This includes an ‘overhaul of town and country planning laws that mean converting one form of premises ie. a shop, cafe, pub or hot-food takeaway, to another can be a lengthy process’.

One option being considered by Johnson’s team is introducing a new “A” class business category covering shops, financial and professional services, restaurants and cafes. The measure would allow existing shops to easily offer additional services.

He also called for the immediate unlocking of a £675m government fund earmarked for sprucing up high streets around Britain. If he becomes prime minister, he plans to announce this summer the towns that have been successful in bidding for shares of the cash.

Although on paper the overhaul of planning laws looks attractive, the problem is planning laws relating to change of use are not in his power to change, neither will £675m go far and how does he propose to choose which towns are more worthy of the fund? As ever with Johnson’s announcements rhetoric trumps reality.

Meanwhile Jeremy Hunt has pledged to exempt hundreds of thousands of small businesses from business rates if he becomes Prime Minister. Hunt intends to scrap taxes for nine out of 10 high street shops in a bid to save the high street. The claim is the move will save newly exempted businesses up to £6,500 each and will scrap taxes on 24,500 businesses based in Birmingham (5,000), Manchester (8,000), Leeds (6,000), Newcastle (2,000) and Bristol (3,500).

Hunt said that his government would reform the current Retail Discount rate, so that businesses which qualified for the discount would see their entire business rate bill cancelled. At present, those with a ratable value below £51,000 are eligible for their bill to be cut by one third.

Additionally, one of Hunt’s best trailed policy announcements has been a promise to cut corporation tax from 19% to as low as 12.5%, a policy which has been costed at £13bn a year. His generous spending pledges have seen him receive some flak from the Institute for Fiscal Studies (IFS).

Hunt the self-proclaimed entrepreneur is certainly more progressive in his thinking and his ideas may just work to support independent traders on the high street who are being strangled by inflated taxes. The corporation rate cut will pay for itself making Britain an attractive base and undoubtedly bring more corporates to base themselves in the UK and with a No Deal Brexit in site, more initiatives like this is what the UK needs to survive.

The trouble is according to all the polling, Hunt has little chance of getting in. Just like the rest of us, it seems High Street retailers had better batten down the hatches as Tory Party members take the ultimate gamble in installing Johnson in to Number 10.

To read the full article please visit London Loves Business.

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Disruption will lead to innovation in our high streets

The Drum Blog

Culture Secretary Jeremy Wright announced in May 2019 that a new £62 million fund will breathe new life into historic high streets across the country. Really? What’s £62m going to do? Unless there’s a momentous shift by Government regarding the business rate issue no £62m fund is going to fix anything or impact the dire straits we find our high streets in.

But here’s the conundrum. Across the country, people still enjoy going shopping. Shops are not going to disappear and 89 percent of UK sales are still generated through physical retail.

Consumers want high streets and businesses want to be there. We can’t give up on our high streets, but we need to fundamentally disrupt the existing model with ideas that address business rate costs head on.

Reigniting imagination on the high street

We need traditional brick and mortar retailers to be imaginative and visionary to make retail work for them and their customers. We haven’t seen enough of this. There’s been some successes where traditional retail chains have introduced successful in-store experiences, from speaker spaces to free cookery classes, to encourage consumers to dwell and soak up the atmosphere.

We’ve also seen successful buy outs where we see anchor brands amalgamate multiple brands under one roof such as Sainsbury’s and Argos (Store within a Store concept – SiS). This has enabled Sainsbury’s to continue trading within the non-food category and remain current without distracting from its core grocery business.

Brand collaborations appear to work well, and this is where I think independent retailers need to deploy more disruptive strategies. Surely independents sharing space makes sense from a financial and marketing perspective and works for all collaborations, whether it’s an anchor brand and SiS or two brands in equal partnership.

Let’s take my local high street, where there is a bookshop with a coffee shop, and this unsurprisingly works well. So why don’t we see such partnerships more often with, say, independent clothes and shoe shops hooking up, cook shops and delis collaborating and complimenting one another and butcher’s, bakeries, greengrocers and florists joining up.

With so many consumers now on a personal quest to do what’s good for the planet, collaborations can really work to bring purpose to the fore and give consumers more choice.

The rise of the ethical high street

For people who are ethically minded, they may prefer to visit collaborations that have similarly aligned values for example, butchers, delis and bakeries that are fully ethically sourced or organic or shoe and clothes shops that won’t use unethical material. Delivering a positive, convenient and alternative shopping experience for people for whom these things are a driving factor in their purchasing decisions will provide an incredible customer service and experience that’s missing right now.

I’ve been in the industry over twenty years so I’m not naive enough to think this is easy, but retail is the most dynamic of industries and it needs to do something before it loses its confidence and high streets forever. I believe it requires a major re-think of the whole supply chain from landlords to legal and introducing new innovations like retail matching services. A service that pairs up independent retailers who are looking for high street shop spaces in particular areas.

There are all sorts of challenges – what happens if one brand is doing well, and the other isn’t, if one wants to sell and one doesn’t? But we’re at an impasse where something drastic needs to happen for us to re-imagine the high street. And drastic means disruption and innovation not more of the same.

To read the full article please visit The Drum.

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Innovation in our high streets is a continuous journey

Business Blog

Culture Secretary Jeremy Wright announced in May 2019 that a new £62m fund will breathe new life into historic high streets across the country. High streets lie at the heart of communities but as we know, are under increasing pressure as more people choose to shop online, visit out of town stores and business rates and rents escalate. But are the high streets dying or are they just going through a period of evolution to meet the generational shifts in shopping habits and remain relevant?

Let’s not forget one very important thing, that across the country, people still enjoy going shopping, shops are not going to disappear and 89% of UK sales are still generated through physical retail. The problem is that many brick and mortar retailers have either not listened or been too slow to react to the changing social and economic factors that have impacted their business models.

To believe that your exact same format which has been successful for decades remains relevant today as it did then, is wrong. Millennials are bored with the same format and Generation X and Z are not ignorant to poor retail.

A belligerent approach only serves to insult your existing and potential customers. That’s why they’ve abandoned trusted retailers and by doing so, they are clearly stating that it’s you not them that’s the problem. This has resulted in a flurry of panicked shop closures, as retailers wake up to the fact that they should have reviewed their estates years ago before calling in the administrators.

So, alongside this and any other Government initiative we need traditional brick and mortar retailers to be imaginative and visionary to make retail work for them and their customers. And I don’t think we’ve seen enough of this. There’s been some successes where traditional retail chains and independents have introduced successful in-store experiences such as speaker spaces to free cookery classes to encourage consumers to dwell and soak up the atmosphere.

We’ve also seen successful buy outs where we see anchor brands amalgamate multiple brands under one roof such as Sainsbury’s and Argos (Store within a Store concept – SiS). This has enabled Sainsbury’s to continue trading within the non-food category and remain current without distracting from its core grocery business.

The above concept appears to work, and this is where I think retail strategies need to be disruptive. As the pioneer of mail order fashion, reimagining retail seems to come easy for Next who have successfully evolved its physical presence with the inclusion of SiS concepts in selected stores. If we look at their flagship store on London’s Oxford Street it includes brands such as Lipsy, Paperchase, Henna and Costa and Mamas & Papas in its Bristol Cribbs Causeway store.

Surely independents and chains sharing space makes sense from a financial and marketing perspective and works for all collaborations, whether it’s an anchor brand and SiS or two brands in equal partnership. Let’s take my local high street, where there is a bookshop with a coffee shop and this unsurprisingly works well. So why don’t we see such partnerships more often with, say, independent clothes and shoe shops hooking up or cook shops and delis collaborating and complimenting one another.

I’ve been in the industry over twenty years so I’m not naive enough to think this is easy but retail is the most dynamic of industries and is tough. It requires a major re-think of the whole supply chain from landlords to legal and introducing new innovations like retail matching services. There are all sorts of challenges – what happens if one brand is doing well, and the other isn’t, if one wants to sell and one doesn’t? But we’re at an impasse where something drastic needs to happen for us to re-imagine the high street. And drastic means disruption and innovation.

With a staggering 2,481 stores disappearing off the High Street in 2018, the opportunity to split the overheads in tough economic times impacted by changing shopping habits, this is a successful combination for both retailer and shopper. For retail, appealing to all generations is the way forward, enhancing the environment in which we want to shop in and the customer journey association to brands. Retailers need to stop feeling their way in the dark. The solution is there. Look around.

To read the full article please visit London Loves Business.

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Retail Renaissance

ipm blogs

The high street is dying, that’s what we keep hearing from all angles of the media but is it?

No, its evolving to meet the needs of generational shifts in shopping habits which retailers must adapt to in order to give consumers a desirable experience. Those that respond positively to shoppers and adapt, appreciate the increased value this change offers for potential survival. Retail is no longer there to serve the customer, it’s the customer who decides if retailers remain relevant to the high street.

Those retailers that refuse to listen are deserving of their fate. It’s not a surprise or the fault of external factors when a major retailer, who failed to adapt, calls in the administrators. Social and economic factors are not going to ‘improve’ as they are proving to be the norm, it’s just how life is now, therefore boards of major retailers need to stop procrastinating and adapt fast. With 89% of UK sales still generated through physical retail, the desire to shop on the High Street is still prevalent, retailers need to adapt creatively to capture a slice of those sales.

To believe that your exact same format which has been successful for decades remains relevant today as it did then, is wrong. Millennials are bored with the same format and Generation X, Z or Alpha are not ignorant to poor retail. This belligerent approach only serves to insult your existing and potential customers. That’s why they’ve abandoned trusted retailers and by doing so, they are clearly stating that it’s you not them that’s the problem.

From traditional retail chains to independents and pop up stores, the ones that ‘get it’ are doing so to great effect. Whether it be through introducing speaker spaces within the store, to conducting free classes or work zones to encourage consumers to dwell and soak up the atmosphere. By also introducing other brands to coexist alongside your brand, is winning hearts and minds. Retail is changing. Changing positively but perhaps not fast enough to decrease the failures of trusted retail brands and reduce the vacant units on our high streets.

Debenhams tried this by introducing Patisserie Valerie cafes within their stores which proved fatal for both brands, partly due to their incompetence to manage their finances or understand the consumer. You don’t ‘accidentally’ misplace £40m neither do you introduce a traditional patisserie into an already stale retail format such as Debenhams, in an attempt to entice new and younger shoppers. The opportunity to revive its fortunes could be taken from its past when it introduced designer names to its stable with huge success. Those designers are now only known by a generation who are 40+ and irrelevant to the shoppers needed to keep the Debenhams brand relevant on today’s high street.

With Arcadia group also struggling reputationally through the alleged actions of its high profile owner and also financially, they have a huge task ahead to transform. Reducing your retail footprint by closing stores to cut costs is not the solution, change is. But is it too late to turn some of Arcadias brands around, maybe not? The larger ‘flagship’ TopShop stores do it well by adopting shared spaces that offer consumers other brands or services like piercing or cosmetics to create an immersive shopping experience. Unfortunately, Topshop don’t seem to translate this successful format as well across the regions in the UK. Translating this ‘experience’ model across the entire estate is essential to relate to consumers who don’t necessarily have the means or desire to travel to a ‘flagship’ store. Placing short term profit over evolution is short-sighted as this approach is somewhat ironic, a lack of investment makes you stale rather than revolutionary, making a brand irrelevant to today’s shopper.

Those retailers who are winning have amalgamated, rather successfully, multiple brands under one roof that complement each other and often work in concert, to offer convenience for the shopper. Successful examples include the Argos purchase by Sainsbury’s and introducing Argos shop in shop (SiS) within larger Sainsbury formats and in 11 stores to include the desirable Habitat brand, which was snapped up by Argos several years back and now revived through the Sainsbury’s acquisition. This has enabled Sainsbury’s to continue trading within the non-food category and remain current without distracting from its core grocery business.

As the pioneer of mail order fashion, re-imagining retail seems to come easy for Next who have successfully evolved its physical presence with the inclusion of SiS concepts in selected stores. Brands such as Lipsy, Paperchase, Henna and Costa can be found in the Next Oxford Street store and Mamas & Papas in its Bristol Cribbs Causeway store. Unsurprisingly this approach works for both anchor brand and SiS. With a staggering 2,481 stores disappearing off the High Street in 2018, the opportunity to split the overheads in tough economic times impacted by changing shopping habits, this is a successful combination for both retailer and shopper.

Those who complain that they can’t make retail work need look no further than their competition who are getting it right through understanding the zeitgeist. Shopping habits have changed with generational shifts and the glory days many failing retailers harp on about are not going to make a reappearance. It’s up to retailers to carve out a niche and appeal to the generations who now prefer both the physical and online aspects of retail, but are also seeking convenience and above all an experience.

Experience to try, taste, smell, learn, question, dwell to be part of something that transcends generations and the stereotypes of what ‘Retail’ should be. Retail can be whatever you want it to be.

Successful retail evolves to remain current and relevant to its audience. A retail renaissance is what we need.

To read the full article please visit ipm Bitesize

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Making a show of yourself

ert blog

The most successful of retailers that continue to occupy the high streets and retail parks of this great shopping nation do so because they have adapted. Adapted to provide the consumer, of all generations, with an experience that resonates with them. Now I’m not suggesting that this is some magical panacea or that they have discovered the proverbial fountain of retail youth but what they did do successfully is see into the future. An uncertain future in retail has been a dark shadow for several years now, so how did those who failed not get the message and adapt? And let’s face it, we all know that stores that are left bereft of investment do not create a positive experience for consumers.

So who does do experience well? Lush, who have just abandoned social media, knows what it takes to create the theatre and experience needed to entice the shoppers who will undoubtedly spend in their stores. Its ambience is an extension of the brand voice and its interactive nature immerses the consumer in the brand and its products which works irrespective of whether they are familiar with the brand. Its latest store opened in Liverpool last month and is circa 1,380 sqm. the biggest Lush in the World where ‘every detail has been carefully considered to create a fully immersive brand experience’. Some might say that’s bold and brave in the current climate, but I’d suggest it’s a move from a brand confident in its own ability to ‘retail well’.  Because above all the experiential hype, it’s the employees that create the true experience for Lush, something Debenhams perhaps forgot to acknowledge, so busy were they trying to keep the wolf from the door.

Experiential at the point of purchase is nothing without the support of well trained staff to carry the consumer through the journey and ultimately close the sale. The retailers who get this, win. They win by retaining motivated staff who feel valued and customers who having enjoyed the experience may well return in the near future or at the very least refer the retailer through recommendation.

On a recent shopping expedition with my Generation Alpha (under 9) son and daughter I sought to buy my son trainers. The displays were impactful and easy to navigate to what my son wanted but above all, it was the staff. An early 20s Generation Z shop assistant who spoke ‘indirectly’ to my son through his actions suggesting colours and designs. Disaster struck and the trainers my son wanted were not available in his size. Immediately considering another retailer or even going online, the sales assistant jumped in with “you can order these now on line from the store, pay for them here and have them delivered to your home for free”. Without hesitation, I said yes. We walked away all winners enjoying the experience, my son getting his trainers, the store not losing out on a sale and the sales assistant earning the kudos of the sale in his name. That’s omnichannel retailing in its purest form for you. How often has that happened to you?

No matter what you sell or who you believe your target market to be, the experience within your store will either make or break you. Think high end retail, are you kept waiting to be served? Are you unimpressed by the displays, the staging, the cleanliness or the ambience? I suspect the answer to all this is a resounding no. It is therefore unlikely that these stores succeed purely on their brand equity alone and before you all start saying that they can afford to do it, so can every retailer within their budget. At all levels of retail, the ability to create an experience that is worthy of your attention by consumers to entice them to spend is within your capability and budget of a retailers’ imagination and bravery.

For the retailers that succeed, they do so because they consider the experience it offers your customers. Is it engaging? Is it visually appealing? Does it speak to many of the few? Does your staff know how to bring this to life as a sales tool and succeed?

Consider John Lewis, a stalwart in British retail that if you were to base its appeal on its longevity should have failed by now. Having most recently invested £33 million in its new Westfield White City store, it also did it differently. The layout, the decor, the feel and more importantly the staff. Partners, as they are known in John Lewis, are attentive, knowledgeable and in abundance. The store’s secret is its appeal to those with disposable income and to those who aspire to shop there. It enables consumers to linger and take up as much of a Partners time to ask questions and explore a product. It works because they understand not only their audience but also the importance of never underestimating the worth of the shopper.

In hard economic times retailers and brands have to work harder to appeal to an individual’s tastes, requirements and above all budget. When failed retailers pretend not to know why they failed, they are not being honest. They failed to create an experience that appealed to a wide audience and their staff by not engaging with them positively to be the best they can. Ignorance is bliss for directors who don’t shop in their own stores.

The experience within any retailer is borne through your staff and the ability for staff to be brand advocates first and sales assistants second. Make the consumer feel special and they will listen. Keep the consumer informed and they will feel listened to. Keep the consumer engaged and they will shop.

To read the full article please visit ERT.

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Brand collaboration is the key to a high street retail revival

The Drum Blog

The high street is dying, or so we keep hearing from all angles of the media – but is it?

No. But it is evolving to meet the needs of generational shifts in shopping habits which retailers must adapt to in order to give consumers a desirable experience. Those that respond positively to shoppers and adapt, appreciate the increased value this change offers for potential survival.

Retail is no longer there to serve the customer, it’s the customer who decides if retailers remain relevant to the high street.

Those retailers that refuse to listen are deserving of their fate. It’s not a surprise or the fault of external factors when a major retailer, who failed to adapt, calls in the administrators. Social and economic factors are not going to ‘improve’ as they are proving to be the norm – it’s just how life is now – therefore boards of major retailers need to stop procrastinating and adapt fast.

With 89% of UK sales still generated through physical retail, the desire to shop on the High Street is still prevalent, retailers need to adapt creatively to capture a slice of those sales.

To believe that your exact same format which has been successful for decades remains relevant today is wrong. Millennials are bored with the same format. That’s why they’ve abandoned trusted retailers and by doing so, they are clearly stating that “it’s you, not them” that’s the problem.

Clashing styles

From traditional retail chains to independents and pop up stores, the ones that ‘get it’ are doing so to great effect. Whether it be through introducing speaker spaces within the store, to conducting free classes or work zones to encourage consumers to dwell and soak up the atmosphere. By also introducing other brands to coexist alongside your brand, is winning hearts and minds. Retail is changing. Changing positively but perhaps not fast enough to decrease the failures of trusted retail brands and reduce the vacant units on our high streets.

Debenhams tried this by introducing Patisserie Valerie cafes within their stores which proved fatal for both brands, partly due to their incompetence to manage their finances or understand the consumer. You don’t ‘accidently’ misplace £40m neither do you introduce a traditional patisserie into an already stale retail format such as Debenhams, in an attempt to entice new and younger shoppers. The opportunity to revive its fortunes could be taken from its past when it introduced designer names to its stable with huge success. Those designers are now only known by a generation who are 40+ and irrelevant to the shoppers needed to keep the Debenhams brand relevant on today’s high street.

With Arcadia group also struggling reputationally through the alleged actions of its high profile owner and also financially, they have a huge task ahead to transform. Reducing your retail footprint by closing stores to cut costs is not the solution, change is. But is it too late to turn some of Arcadia’s brands around?

Maybe not. The larger ‘flagship’ TopShop stores do it well by adopting shared spaces that offer consumers other brands or services like piercing or cosmetics to create an immersive shopping experience. Unfortunately, Topshop don’t seem to translate this successful format as well across the regions in the UK. Translating this ‘experience’ model across the entire estate is essential to relate to consumers who don’t necessarily have the means or desire to travel to a ‘flagship’ store.

Placing short term profit over evolution is short-sighted as this approach is somewhat ironic, a lack of investment makes you stale rather than revolutionary, making a brand irrelevant to today’s shopper.

Retailers assemble!

Those retailers who are winning have amalgamated, rather successfully, multiple brands under one roof that complement each other and often work in concert, to offer convenience for the shopper. Successful examples include the Argos purchase by Sainsbury’s and introducing Argos shop in shop (SiS) within larger Sainsbury formats and in 11 stores to include the desirable Habitat brand, which was snapped up by Argos several years back and now revived through the Sainsbury’s acquisition. This has enabled Sainsbury’s to continue trading within the non-food category and remain current without distracting from its core grocery business.

As the pioneer of mail order fashion, reimagining retail seems to come easy for Next who have successfully evolved its physical presence with the inclusion of SiS concepts in selected stores. Brands such as Lipsy, Paperchase, Henna and Costa can be found in the Next Oxford Street store and Mamas & Papas in its Bristol Cribbs Causeway store. Unsurprisingly this approach works for both anchor brand and SiS. With a staggering 2,481 stores disappearing off the High Street in 2018, the opportunity to split the overheads in tough economic times impacted by changing shopping habits, this is a successful combination for both retailer and shopper.

Those who complain that they can’t make retail work need look no further than their competition who are getting it right through understanding the zeitgeist. Shopping habits have changed with generational shifts and the glory days many failing retailers harp on about are not going to make a reappearance. It’s up to retailers to carve out a niche and appeal to the generations who now prefer both the physical and online aspects of retail, but are also seeking convenience and above all an experience.

Experience to try, taste, smell, learn, question, dwell to be part of something that transcends generations and the stereotypes of what ‘Retail’ should be. Retail can be whatever you want it to be.

Successful retail evolves to remain current and relevant to its audience. A retail renaissance is what we need.

To read the full article please visit The Drum.

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