Tag Archives: retail

Retail will need to adjust to the commercial realities of Covid-19

PCRMAY2020

Gekko Field Marketing’s MD, Daniel Todaro, discusses whether the Coronavirus will present the opportunity to re-appraise the retail experience and increase communities’ appreciation of the high street

So here we are amidst the most bizarre of situations that no one in their lifetime has experienced. There’s never been a global pandemic or an instance that has distanced human beings to this extent. I’m optimistic and believe that we will come out of this experience as better business people with a new perspective to how we go about running our companies.

The pandemic has seen all but essential retail close with figures published by Google showing an 85% drop in footfall to retail destinations over the first two weeks of the pandemic, marginally improving by 3% to 82% in week three.

It’s true to say that some businesses may regrettably not survive the economic impact of the situation, which is indeed unprecedented, but for some it could have been avoidable if those who hold the power acted more responsibly. Talking Retail published some embarrassing statistics surrounding the government’s Business Interruption Loan Scheme, which saw only 1.4% of applicants successfully receiving loans. Putting this into perspective, of the estimated 300,000+ firms that applied, only 4,200 businesses have received rescue loans from banks. That was three weeks after the Chancellor Rishi Sunak launched the scheme alongside the Employee Retention Scheme, more commonly known by employees as the Furlough Scheme. This in itself provided some false hope for employers and employees. As to this day, it is still not fully understood by all because the Government is yet to publish full qualifying criteria or the portal for companies to apply.

Now, if you’re one of those businesses that has generated virtually no revenue and is still covering your overheads with what cash flow you have remaining, I suspect a loan would be useful to ensure that you could at least pay your staff the 80% the government has promised to cover. What most don’t understand is that you still require the cash flow to cover your payroll, even at 80%, whilst you wait for the funds in the form of the grant from the Government.

Whilst I do not wish to criticise the Government’s approach, as these initiatives are brilliant and what you’d expect from the world sixth largest economy to protect its GDP and lessen the impact on the welfare state, they are however reactionary. The speed of announcements for these knee jerk initiatives has unfortunately meant that the communication to all was poor. Compounded by misunderstandings as lawyers, accountants and advisors speculated on what the government would do forgetting to explain to small business that none of this advice being offered was not actually based on fact.

As a small business you rely on many outlets to advise you accordingly and help guide a business in its decision making. My fear is that all this unqualified advice is making matters worse and creating more issues for when we are ready to get back to business as normal, as there remains many unknowns that impact future planning.

It’s been reported that in March, retail declined 4.3% and non- food purchases online accounted for 40% of all online sales. As a marketing agency that specialises in technology and leisure brands, this statistic is of particular interest to me. So what can marketers, sales people and retail do to ensure technology and CE retail are able to come back with a bang?

Our fundamental societal roles have changed – working, shopping, education etc. – as well as our attitudes to the community roles we all took for granted. Those truly crucial to society – our NHS, bin men, local butchers, bakers, milk deliveries etc. have been elevated to heroes and saviours, doing all they can to serve their local communities.

So, the question we’re all pondering is will it lead to a reappraisal of the role of independent retailers in the community? Will consumers look differently upon what they may have previously considered out of date. We are all shopping local, where stores are open, from the independent hardware store to the corner shop and long term, I know my shopping habits will now incorporate these stores often and not in an ‘emergency’.

And what’s come to the fore more than anything is that local shops are more than just places to buy products.

So with a new captive audience and acceptance of service to society, how can independent retailers revive their fortunes by socialising their new audience and retain them through experiences? We all understand the power of retail experiences, but we now need to plan ahead and look at this with a post- COVID-19 social lens. Because let’s face it, the first thing people will want to do after lock down is go to pubs, bars, restaurants, cinemas, shops and thoroughly enjoy themselves with those they’ve missed, and experience the feeling they’ve been deprived of for some time. This includes the experience of physical retail and reliving the enthusiasm of consumerism as a pastime, rather than having another brown box left outside your door.

Therefore, whilst still in lockdown, plan how you’re going to come out fighting. Use the time to think about what you could do certain things differently to enhance the experience – smaller range, bigger ranging, specialisation, marketing, PR, advertising, training, services.

Engage with your brand partners and encourage them to support you with offers, training and local marketing budgets. And then add to this how to socialise it – free coffee, fitting service, desk space to speak to someone face-to-face, new displays, improved window dressing, giving back to the community, offering key worker discounts?

Shopping habits of the great British nation are undoubtedly going to change after a period of social distancing. Retail will need to adjust to the commercial realities of the COVID-19 crisis and the long term effects it will inevitably create. But when this is all over, if marketed right, it could create opportunities to entice shoppers back through the doors with reopening parties and offers to kick start buying again and encouraging the nation to treat itself.

The treat aspect is essential to bring back the joy of shopping and in doing so creating an opportunity for brands and retailers to make shopping fun and personal again.

Read PCR Magazine here

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Smaller players need the support of big retailers like never before

I’ve never been prouder to own an independent agency, but we need the support of ‘big retail business’ like never before, says Gekko Managing Director, Daniel Todaro

I’ve been running an independent marketing agency, working in retail for over twenty years and I’ve never felt so fortunate to be in charge of my own destiny and the people that work for me.  Rather than shareholders telling me what I have to do, I know in these unprecedented times, I can do what’s right.  I’m attune to my social and corporate responsibilities and I’ve already seen numerous other independent agency owners across all disciplines from PR to creative doing the same. I hope by talking about some of our initiatives we can all share ideas to protect the people of this country.  But when we’re doing all we can without big behemoths behind us like the networked agencies surely, we should command and see the same behaviour from the retail brands we work with?

 

As a sector, industry and business which is all about its people, the commercial focus for us is ’not for profit’ and any revenue we are able to generate is for the sole purpose of keeping staff employed, paid and proud to call us their employer. From large and small independent agencies across the UK I’m hearing similar and heart felt messages to employees ‘we’re in this together’.

 

Gekko is operating with a with a ‘People First’ approach but what about the global retail businesses we work with?  At what point do we as an industry call out brands for their behaviour?  Or are they allowed to get away with it because us independent agencies are scared that we’ll never get work with them again?

 

Like hundreds of agencies big and small across the country we’ve seen clients pulling campaigns and budgets overnight.  While I recognise that in the short term retail outlets are closed and e-commerce has slowed down surely global corporations can take a more generous approach and support their suppliers as best they can? Primarily honouring the pay of their account teams dedicated to their brand by scaling down spend rather than switching it off, paying a proportion of the fees for their next project and banking the time or sharing agency team cost to aid cash flow.

 

I’m not saying that retail businesses should do this above looking after their own staff and businesses, but this is only a temporary situation and we have to survive together because we’re going to need each other when we come out the other side.  Businesses live or die by the power of their brands, this value often driven by us marketing folk.

 

Diageo has this week announced a $1million pot to help its on-trade customers through these difficult times so it is possible to commit to the supply chain. But I, like I’m sure many other agency owners have seen both sides of the coin, incredibly supportive retail clients and those that quite frankly have shirked their moral duty and are failing workers who thought they represented a decent, honest brand.

 

Brands who turn their back on their responsibilities, relationships and partners are the brands that need to be called out. When they act in this manner, they also fail the consumer as the brand values they portray in their marketing are the antithesis of the brand values they trade on. As you can probably tell I’m trying not to yell a name and shame but when your retail brand turned over billions last year, it’s kind of incumbent of you to do your bit and support not turn your back on the agencies who work hard for you.

Read the article at Retail Sector

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Why millennials are ignoring the environmental impact of online shopping

The Drum Blog

As high street retail continues to deplete and more people shop online, increasing to 19% of all retail sales in December 2019, a new report by retail marketing experts Gekko shows there’s increasing consumer concern about the environmental and societal impact of this transition and a marked difference in attitude depending on age.

The younger generation may tout their eco credentials but they are more easily lured into wasteful spending and shopping online with over half (53%) of 18-24 and 46% of 25-34 year olds admitting to being tempted into buying things they don’t need online, with just 19% of canny 55+ year olds saying the same.

More than five times as many 18-24 as 55+ year olds admitted to regularly buying goods online that they regret, so return them – 17% versus just 3%. And 45% of 18-24 and 42% of 25-34 year olds also admitted to being wasteful buying items they didn’t want and failing to return them, compared to only 17% of older consumers.

Surprisingly and despite the high profile of Extinction Rebellion and Greta Thunberg, younger shoppers make less conscious choices than some may think about the environmental impact of online shopping versus older consumers. In general, 73% of consumers are concerned about excess packaging associated with online purchase and deliveries and 74% are worried about the amount of single use plastic in packaging.

However, just over a third (38%) of 18-24 and 33% of 24-35 year olds are unconcerned about the use of excessive packaging. This compares to 19% of over 55 year olds. And despite it being such a huge national issue and talking point over the last year, 34% of 18-24 year olds and 31% of 24-35 year olds aren’t concerned about single use plastic, versus 19% of over 55 year olds.

Even the gig economy does not seem to be a problem for the generation arguably most likely to be more exploited by it, with 50% of 18 to 24 years olds unconcerned about online shopping increasing it versus 33% of 55+ year olds. And 44% of 18-24 year olds don’t fret about the impact on the High Street and local economy of online shopping, versus 23% of 55+ year olds.

According to Daniel Todaro, MD of Gekko: “Younger generations spend more time online and are therefore less inclined to resist that impulse buy. They are far more likely to buy things they regret, order more than one size, items they never intend to keep and send the goods back, but this convenience has an environmental impact.

“The future of the High Street is a vital societal component and offers a more ethical approach to shopping. If you can try before you buy there’s less transport, packaging and waste without the need to order multiple sizes or colours of the same item. The High Street sustains the heart of a community, no shops means no point heading to the High Street – there’s only so much coffee a community can afford or want to drink.”

Please visit The Drum to read the full article.

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Are Millenials easily lured into wasteful spending and shopping online?

Bitesize blog

As high street retail continues to deplete and more people shop online, increasing to 19% of all retail sales in December 2019*, a new report by retail marketing experts Gekko shows there’s increasing consumer concern about the environmental and societal impact of this transition and a marked difference in attitude depending on age.

The younger generation may tout their eco credentials but they are more easily lured into wasteful spending and shopping online with over half (53%) of 18-24 and 46% of 25-34 year olds admitting to being tempted into buying things they don’t need online, with just 19% of canny 55+ year olds saying the same.

More than five times as many 18-24 as 55+ year olds admitted to regularly buying goods online that they regret, so return them – 17% versus just 3%.  And 45% of 18-24 and 42% of 25-34 year olds also admitted to being wasteful buying items they didn’t want and failing to return them, compared to only 17% of older consumers.

Surprisingly and despite the high profile of Extinction Rebellion and Greta Thunberg, younger shoppers make less conscious choices than some may think about the environmental impact of online shopping versus older consumers.  In general, 73% of consumers are concerned about excess packaging associated with online purchase and deliveries and 74% are worried about the amount of single use plastic in packaging.

However, just over a third (38%) of 18-24 and 33% of 24-35 year olds are unconcerned about the use of excessive packaging. This compares to 19% of over 55 year olds. And despite it being such a huge national issue and talking point over the last year, 34% of 18-24 year olds and 31% of 24-35 year olds aren’t concerned about single use plastic, versus 19% of over 55 year olds.

Even the gig economy does not seem to be a problem for the generation arguably most likely to be more exploited by it, with 50% of 18 to 24 years olds unconcerned about online shopping increasing it versus 33% of 55+ year olds.  And 44% of 18-24 year olds don’t fret about the impact on the High Street and local economy of online shopping, versus 23% of 55+ year olds.

Daniel Todaro, MD of Gekko, says: “Younger generations spend more time online and are therefore less inclined to resist that impulse buy. They are far more likely to buy things they regret, order more than one size, items they never intend to keep and send the goods back, but this convenience has an environmental impact. The future of the High Street is a vital societal component and offers a more ethical approach to shopping. If you can try before you buy there are less transport, packaging and waste without the need to order multiple sizes or colours of the same item. The High Street sustains the heart of a community, no shops means no point heading to the High Street – there’s only so much coffee a community can afford or want to drink.”

To read the full article please visit IPM Bitesize.

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Independent retailers: It’s tough at the top

ERT Blog

As all retailers know, seeing in a new year is not the time to put your feet up and relax, it’s a time to reflect on what’s worked, how to survive the January sales without giving stuff away and think about how to keep winning in 2020. There’s a whole heap of independent retailers thriving so let’s take a few moments to sprinkle a little new year magic and hopefully inspire even more to success.

When independent retailers are thinking about customers, store, product and marketing it can be overwhelming, let alone trying to apply innovative thinking to tried and tested strategies. I’ve consciously taken price out of the equation – we all know it’s impossible for independent retailers to compete on price with the behemoths like Amazon – so value for money, reflected in customers, store, product and marketing – not the cheapest should be the mantra of independent retailers. So how do independent retailers do this?

Let’s start with customers. Independent retailers should know their customers better than any multiple retailer ever can. Do you know what they are buying and when and if not, you should be seriously asking yourself why? And if you do know, are you fleet of foot enough to be agile with your merchandising strategy in order to stock the goods that your customers want?

Advanced technology solutions aren’t what’s needed here, your POS will be able to provide basic information about your customers and all you need to do is let your team do the talking and stalking.

Listen, talk to and watch your customers and learn from their behaviour. When was the last time you asked your customers what type of products they’d like to see in the shop? How would they improve the shop? Making the customer feel like it’s their shop is something the larger brands can never do – and use that to increase product sale through. And think about whether your customer service is worth bragging about! Remembering what your customers bought is the start of a rewarding relationship.

Do everything you can to turn your shop into a destination and take inspiration from what the larger brands are doing, especially in their concept stores. Your shop needs to be an enjoyable experience with an element of discovery every time your customers go there. You wouldn’t eat at the same restaurant multiple times if the menu never changed. If you are selling electrical goods, people want your expertise and experience to buy products they know will be fit for purpose.

Sell the solution and impart practical advice rather than just selling products in isolation. Obvious, but something an online experience can’t replicate. Make sure you know your products and the market and that you communicate this intimate knowledge to potential customers – they don’t know what they aren’t told – and provide an environment in which they feel welcome. Even if it’s a small shop, there’s still no reason why you can’t provide two chairs and a coffee machine to encourage people to sit down and discuss with you their needs – again, increasing sale through and customer loyalty.

And then there’s the marketing strategy, and I don’t just mean ‘brand’ – you all know that a consistent brand experience is important for brand re-call. This is where I think independent retailers have an opportunity to think bigger.

We asked 2,000 UK adults if they thought independent retailers should collaborate to come up with innovate ideas like sharing shop space and marketing costs to cut down on their individual overheads and 73 per cent thought it was a great idea. Every shop on the high street is in the same position, yet despite the current challenges each is still operating in silo.

Get to know your neighbours, seek collective advice and behave like a group rather than individual businesses. Collaborate to organise customer events as well as on marketing drives to reach a wider audience. Joint special events, discount schemes and offering a local delivery service and recycling throughout the year, not only at key times, will all help in developing your customer base.

Independent retailers are the beating heart of our communities and have a huge amount to offer. Collectively helping each other to apply some innovative techniques will hopefully improve the fortunes of many.

To read the full article please visit ERT.

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2020 will be a smarter year for retail

PCR Blog

We know that smart home technology has revolutionised the way we live at home and according to PWC’s recent white paper, Connected Home 2.0, £10.8bn will be spent on smart home devices in the UK in 2019. With the increased availability and adoption of 5G in the UK, I predict that the options on offer will only get smarter and extend their reach to every room in the household.

There’s been a lot of hype around 5G – from downloading a full HD movie in under five seconds to making fully automated vehicles a reality – but I believe 5G will be a transformative technology for the home, as it’s spearheading a multi-dimensional world connecting devices, brands and people in real time with its fast bandwidth and reduced latency. Take a look around your home, count up the numerous devices that are connected and smart. It’s only going to get more prevalent in our lives and the places we reside and work in.

Barring any changes as a result of the General Election, the government were supportive of a £530 million proposal from the UK’s mobile network operators for a Shared Rural Network with the potential for it to be matched by a £500 million investment from the government. This would be a world-first deal with all the UK carriers – EE, O2, Three, Vodafone – investing in a network of new and existing phone masts they would all share.

For consumers it means they will be able to rely on their own provider’s network to use their mobile phones wherever they are in the UK. More importantly it will improve connectivity in areas with poor or no broadband. The upcoming 5G rollout is one reason why experts predict that more than 36 billion devices globally will be connected to the internet by the end of 2020, all of them smart.

Away from mobile phones, the connected home covers pretty much every category from AV, including smart speakers to thermostats, lightbulbs, your washing machine, fridge, oven and kettle. You name it and it’s probably smart and will integrate into your life with the tap of a device or command of your voice. That’s why Google has created the Google Assistant Connect programme, which for manufacturers means that they can create custom devices that serve specific functions and are integrated with Google Assistant making more assistant enabled devices available within all categories.

With this mass adoption across multiple CE categories it’s anticipated that the user experience will undergo a significant shift in how users utilise and interact with smart technology and AI.

This would mean a more ‘Multi Experience’ model which changes the manner, usage and approach with our smart devices to shift both perception and interaction to a multisensory experience. For instance, adapting the lighting to a mood that’s personal to you and not generic, or managing your life more personally by telling you how your commute to work will be and what to wear based on the weather forecast before you’ve even thought about it, just by looking at your diary, which of course you’ve integrated or shared voluntarily with your AI device.

All this would happen more seamlessly, without the need to constantly repeat a ‘wake word’ such as ‘Hey Google’ or ‘Alexa’ and instead using the wake word once to continue the instructions with your AI device not only making the usage of AI more beneficial when multitasking but also more of a user centric experience.

And all these devices will need to be connected, and if not by 5G it will be through the development of WiFi 6, which drastically improve wireless communication protocols, increasing download speeds by three times the current WiFi 5 we use today and enabling even more connected devices, which will be more adept at natural language.

The upshot is that we will inevitably utilise smart devices with built in AI to a much greater extent, such as for ordering shopping, which is incidentally predicted to jump globally by 2020 – a blow for traditional retail, especially when you consider that it’s estimated a staggering 85% of purchasing suggestions made by Amazon are effective. It’s no wonder why retailers are torn on supporting Amazon or not. For example, in November, Nike withdrew all its products from sale on the Amazon platform.

It’s true to say that technology in 2020 will give with one hand and take from another, all for the sake of progress and convenience, but for consumers, it’s about choice. The choice to automate much of what we may consider tedious or periphery. The choice to share your data with any amount of organisations, known and unknown (you may wish to read those T&Cs you freely agree to. I know you won’t, nobody does).

There is also the choice for retailers to take on the challenge of selling smart technology effectively in an engaging manner that enables a positive experience for the consumer. More importantly for offline retail to rise to the challenge faced by online retailers and offer more – starting with a better customer journey.

Tor ead the full article please visit PCR.

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Can collaborative retail save our high streets? Consumers urge independent retailers to merge to survive

PCR Blog actual

New research from Gekko has revealed that 73% of UK consumers think independent retailers should collaborate.

The ‘Collaborative Retail’ report features comments from over 2,000 UK adults, and has found that many believe independent retailers should “think creatively and work together” to avoid going to the wall and revitalise beleaguered high streets.

In the report, nearly three quarters said they think independent retailers should collaborate to come up with innovate ideas like sharing shop space and marketing costs, cutting down on their individual overheads. Most popular ideas for shop collaborations included independent shoe and clothing retailers, favoured by 71% of consumers, followed by book shops and cafes 68% and bakeries and greengrocers 65%.

Top reasons given by consumers for suggesting collaborations are supporting the high street (64%), supporting local businesses (63%), choice (56%), convenience (52%) and an enhanced shopping experience (48%).

Alongside collaborations, nearly 90% of consumers thought it was important large national retail brands roll out their new store designs and concepts to regions other than just the major high street destinations. Over 50% said they would visit their local high street more if brands did this.

Nearly three quarters (70%) of consumers said they were concerned about the impact of online sales on the high street and the local economy, but felt that the high street still had a major role to play with benefits such as ‘try before you buy’ (62%), browsing and leisure (55%), buy and takeaway (51%) and the opportunity to visit multiple shops (40%).

“We cannot just sit back and watch our high streets continue to degrade. Our research clearly shows that UK consumers are worried about the future of the high street and the impact its demise will have on their communities. They would love to see more independent retail collaborations and believe this is a very exciting way to inject life back into the high street and it does make sense,” commented Daniel Todaro, MD of Gekko.

“However, this approach to retail requires new and imaginative ideas from Government that support the legal and financial infrastructure of such initiatives. Our high streets do have a lot to offer so Government and retailers need to work together to make it an enticing proposition and lure people back.”

To read the full article please visit PCR.

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It’s not just retail; it’s M&S retail

The Drum MS Blog

The UK is historically a nation of shoppers, which more often than not puts it in the top five markets for many global brands. Right now, however the economy is tough, and retail is hurting.

With so many retail brand names disappearing from the high street, reducing choice and damaging local communities or shopping districts, the retailers that remain are struggling to survive.

Marks and Spencer, founded in 1884, is a brand unique to the UK, with no global footprint. It serves a niche market of 63 million residents, many of whom have lived with it their entire life. But it’s been well documented that the chain has struggled to connect with a younger audience, and by trying to do so has started to lose its appeal to its core audience.

By trying to be something for everyone, it’s starting to mean nothing to anyone.

One of the main issues with M&S is the fact that it’s a brand with no subsidiaries, and it doesn’t sell any third party products across fashion, homeware, and furniture, with only a few exceptions in the cosmetic and food categories. That makes it very different to some of the brands it competes with, like H&M Group – who have a broad global audience to speak to across 62 counties. Its many brands include H&M, H&M Home, Arket, COS, Weekend, Cheap Monday, Monki, and Other Stories. With approximately 4,500 doors and eight clearly defined brands, H&M Group meets the needs of so many generations and demographics in a way that M&S can’t.

A public breakup

With falling sales and decline across all categories except food which registered like-for-like sales uplift 0.9% with its latest half year results, is there any chance for M&S to refresh its brand to appeal to the many in a progressive nation like the UK?

I don’t think so: it’s almost like an “it’s not you, it’s me” kind of breakup.

The change has already begun. 47 stores have disappeared and the retailer is still looking to close 100 stores by 2022, but with 1,035 UK stores, that still leaves a lot of square footage. The current UK turnover figures of £9.4bn demonstrate that the brand isn’t doing too badly against others who are teetering on the brink of collapse, but it’s losing its focus by desperately chasing growth which isn’t there and, in the process, stifling creativity.

So forget the gimmicks like the M&S Little Shop (those collectable mini grocery items made from non-biodegradable material). This was a bit of a PR disaster, especially when you consider that for many the ethics of fast retail are a major concern. Shoppers are increasingly aware of the environmental impact certain industries make with fashion, for example, accounting for around 10% of total carbon emissions and a significant percentage of total water consumption.

M&S do have their Plan A sustainability programme, but does it do enough to communicate it? I don’t believe so and think M&S could be speaking to so many who are keen to see a retailer change and pioneer green retail for all.

Fixing the brand

Aside from missing a trick on environmental initiatives, it also lags behind other retailers on its feelgood factor. Its in-store experience is lacking, and its approach to retail will never compliment a great advertising campaign.

But one of the simplest forms of enhanced experience starts with staff; M&S have the benefit of loyal and customer centric staff so why not make them your ambassadors to create that experience? Perhaps ditch the uniform and in the process possibly save yourself a lot of money. Dress your staff in your clothes and update it seasonally. The outlay would be less, and your team immediately become the advocates of your brand.

Collaborate with a brand and start a conversation with someone new. Find the yin to your yang and be realistic – no one really wants to wear M&S trainers! Find a complementary brand for a category or create a collection that people really want to chase and will desire.

The current model is clearly not working – but hold on, it’s still making a handsome turnover, employing 81,000 staff and achieving a profit, so what’s the problem? Are the reports self-fulfilling in that they only serve to change perceptions in the consumers mind?

Regardless, the growth for brands like M&S is limited unless they can create a seismic shift in appeal to a younger or more affluent audience which starts with the experience a consumer feels from the brand.

 

To read the full article please visit The Drum.

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Does black Friday give consumers a real bargain?

Blog

When Black Friday began to be embraced by marketers in 2013, initial efforts focused on instore, one-day only events. Since then, there are far fewer reports of hordes of shoppers breaking down doors and a greater effort to create multi-day, omnichannel campaigns.

This year was predicted to have a strong showing. The CBI reported that sales volume is expected to increase and the Centre for Retail Research expected UK shoppers to increase their spend by 3.4% compared to last year, up to £2.53bn. Initial data shows that those expectations are being met: at its busiest, Barclaycard reported seeing 1,184 transactions per second during Black Friday itself.

As part of our work at Gekko, we monitor how retailers approach and execute promotions like this to better understand and advise on the market. Ahead of Black Friday 2019 we saw that far from being a single day event almost everyone started their campaigns at the start of the week, and peaked with a push over the Black Friday weekend with limited additional discounts and promotions.

We closely monitored the Black Friday pricing strategies across eight different retailers in the UK and Ireland, recording the items and prices offered over the week before Black Friday. Across those retailers, we saw a big launch at the start of the week, an increasing number of items being put on offer as the week progressed, then a drop in availability as particular deals went out of stock.

Tracked Black Friday discounted products 2019

Blog 1

Discounting on the day itself didn’t prove to be particularly significant. Of the 2909 items we tracked that were available to purchase on Tuesday 26th and still available at the end of the week, just 321 – 11% – were cheaper on Black Friday. 10% were cheaper than on the Wednesday, and just 6% were cheaper than on the night before. In the main, shoppers looking for a bargain could have purchased at any time during the week and would have been unlikely to see their purchases cheaper later on regardless of the store.

Of those 321 tracked discounts, TVs, laptops, and mobile phones made up almost half of the additional discounting, with scattered flash pricing on hot items like AirPods making up much of the rest.

Product categories of items cheaper on Black Friday than earlier in the week, 2019

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But don’t be fooled by the data here. Although 23% of the extra discounts were on TVs, only 16% of all TVs we tracked were cheapest on Black Friday itself. For everything else, the Black Friday price was the same price as the rest of the week. And though we saw some variation on prices for specific items from retailer to retailer throughout the week, Black Friday is so sensitive that prices were very similar if not identical as retailers ramped up their price matching.

Although we expect data released and compiled over the next week to show that online took a bigger proportion of the Black Friday and Cyber Monday spend this year, a battle on price isn’t the only option open to brands and retailers. This year we saw an increased push of AR product viewing by both Amazon and Currys PC World, and our online analysis showed brands partnering with retailers so that consumers could talk to a brand ambassador remotely. This is an attempt to mimic the experiential marketing that we have seen work so well in-store, and it’ll be fascinating to see how this develops in future.

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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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