INDEPENDENT PUBLICATION BY RACONTEUR.NET #0702 30/11/2020 FUTURE OF RETAIL

ONLINE SHOPPING THE POTENTIAL OF WALKING AROUND THE 06 GETS SOCIAL 16 'DARK STORES' 22 TOUCH-FREE SHOP

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CHRISTMAS FUTURE OF RETAIL How to encourage Distributed in impulse buying online Published in association with Shutting doors in the run-up to Christmas is a retail nightmare for many stores, especially those that rely on chance purchases to boost revenue

Contributors Chris Stokel-Walker millions of customers, goes some Morag MaryLou Costa way towards doing that. But no one Business writer and editor Cuddeford-Jones hristmas, along with many browses through Amazon in the specialising in marketing, Journalist, editor and tech and startups, with broadcaster, specialising C other things, will look a same way as they meander through work published in The in marketing and business. little diff erent this year. physical retail stores, says Berg. Guardian, The Observer lifestyle trends. Families are considering resized “Those impulse buys are harder Peter Cade/Getty Images Cade/Getty Peter and Marketing Week. turkeys for smaller gatherings, the to replicate in a digital setting,” Cath Everett result of coronavirus restrictions. she says. Nick Easen Journalist specialising And bricks-and-mortar retailers Drake has years of experience lay- Award-winning writer in workplace, leadership and broadcaster, covering and organisational are wondering whether they’ll get ing out his shop, placing items he science, tech, economics culture, with a focus on a reprieve from lockdown, granting knows make for good impulse pur- and business, and the impact of technology a small window of opportunity for chases in strategic locations to pique producing content for BBC on business and society. Christmas shopping. shoppers’ interests. The ability to World News and CNN. Impulse buying accounts for 16 encourage impulsive purchases Rosalyn Page per cent of overall retail sales, by makes a meaningful diff erence to the Charles Orton Jones Award-winning journalist one estimate, which means every bottom line of his business, which is Was editor-at-large of covering tech, marketing, LondonlovesBusiness.com business and culture, day shops aren’t open in the run-up why he’s decided to try and replicate and editor of EuroBusiness with stories published in to Christmas is a lost opportunity. some of that online. magazine. Which, HomeWork, CMO, Families have their shopping lists, He has off ered shoppers the abil- and Choice. but once the main Christmas pre- ity to peruse his products through Oliver Pickup sents are bought, it’s often offh and Zoom. “We have one lady who has Award-winning journalist, Josh Sims purchases that make up most of con- been shielding and reading a lot of specialising in technology, Journalist and editor business and sport, and contributing to a wide sumers’ spending. Maigret,” he says. “I thought I could contributing to a wide range of publications “I might have some vague ideas stand in front of the crime section range of publications. such as Wallpaper, of the kind of shop I want to go to, and talk her through a few bits she Spectator Life, Robb but being in that environment and knows and add them to her ‘to be Report and Esquire. Chris Stokel-Walker spotting something is useful,” says read’ pile.” Technology and culture Graham Soult, a retail analyst. “I It’s an example of the ability for journalist and author, Megan Tatum think that’s one of the joys of shop- smaller shops to react quicker to with bylines in The New Journalist covering York Times, The Guardian health, business and ping in a bricks-and-mortar environ- circumstances, something we’ve and Wired. travel for publications ment compared to online. The nature seen time and again throughout the including Women's of online is you can’t fi nd something COVID-19 pandemic. “Independents Health, The Guardian random unless you search for it. It’s are probably nippier, generally,” says and Wired. much harder to stumble across those Soult. “We’re seeing the agility and things in an online world.” creativity of independent retailers Yet with high street shops shut, in using other ways to get their mes- and the number of shopping days sages across.” until Christmas rapidly ticking down That’s not to say some larger brands towards zero, the retail sector is in a aren’t also trying to replicate the Lead Publisher Design quandary. How can retailers encour- offl ine experience online in the hope Emma Ludditt Sara Gelfgren age impulsive purchases when the But, says Berg, that goes against proudly independent. Its customers of stoking impulse buying behaviour. Kellie Jerrard shops themselves are closed and years of innovation. “If you take a come from far and wide to browse the “Consumer demands haven’t dis- Associate editor Colm McDermott those that remain open are operating step back and think about ecom- shelves and pick the brains of owner appeared, they’ve just shifted or Peter Archer Samuele Motta Nita Saroglou on the basis of getting people through merce generally, the retailers have Richard Drake and his staff . “When pivoted,” says Berg. “That’s where Acting managing editor Jack Woolrich as quickly and safely as possible? been focused on taking out friction someone is in the shop, you can have there’s an opportunity. How do you Francesca Cassidy Sean Wyatt-Livesley “There is a strong correlation from the ecommerce experience,” that two-way conversation,” explains translate that beyond clicking on between shopper dwell time and she explains. Yet friction is what Drake, who recommends books something and getting the ‘you may Digital content executive Art director retail sales,” explains retail analyst translates into impulse buys. based on customers’ past interests. also like’ recommendation.” Taryn Brickner Joanna Bird Natalie Berg. “The longer we spend Some are trying to encourage Amazon’s “people like you also Retailers such as Diesel and L’Oréal Production manager Hannah Smallman Design director in-store, the more we spend at the impulse buying digitally. DRAKE purchased” algorithm, based on the have taken advantage of virtual and Tim Whitlock tills.” However, in a world where The Bookshop in Stockton-on-Tees is collective shopping history of its augmented reality to launch virtual social distancing is paramount, the showrooms, where it’s possible to try amount of time spent in stores is on items virtually and test them on limited and layouts are strictly con- skin to see how they look: a digital Although this publication is funded through advertising and trolled to ensure the least possible representation of the physical world. sponsorship, all editorial is without bias and sponsored features danger, the opportunities to infl u- And while it may seem a strange are clearly labelled. For an upcoming schedule, partnership ence impulse buying are almost of all retail sales situation to be in, the sector seems inquiries or feedback, please call +44 (0)20 3877 3800 or non-existent. are impulse buys hardy enough to weather the storm. email [email protected] % And online stores aren’t a real 16 “It’s never good to have to close your Raconteur is a leading publisher of special-interest content and research. Its publications and articles cover a wide range of topics, replacement for the opportunity of doors in November in the run-up to including business, fi nance, sustainability, healthcare, lifestyle and lazily browsing displays that help Christmas and one of the peak trad- technology. Raconteur special reports are published exclusively in infl uence the buying decision of ing periods, but I think I keep mak- The Times and The Sunday Times as well as online at raconteur.net shoppers. “Online shopping will be a ing the point that I’m heartened by The information contained in this publication has been obtained vital part of this Christmas,” accord- of customers said that the positivity and resilience a lot of from sources the Proprietors believe to be correct. However, ing to the British Retail Consortium, said they initially they made businesses are showing,” says Soult. no legal liability can be accepted for any errors. No part of this discovered their impulse the industry body. “As such, retailers 59% 22% “That’s one of the good stories to publication may be reproduced without the prior consent of the products while purchases come out of this. It reminds us quite Publisher. © Raconteur Media will have to be more innovative than browsing online online ever to encourage more customers to how clever and creative a lot of retail @raconteur /raconteur.net @raconteur_london make impulse purchases online.” Geoblink 2019 businesses are out there.”

raconteur.net /future-retail-2020 04 FUTURE OF RETAIL RACONTEUR.NET 05 Commercial feature PREDICTIONS By 2025 By 2030 Smart supply chains behaviour. “They will seek to collab- orate with more progressive suppli- Six forecasts for Smart supply chains applying AI to ers and potentially look to integrate predict demand and calculate sup- supplier and customer AI capabili- ply will result in a direct benefi t to ties,” he says. the environment by 2030. “Stores “This kind of AI-to-AI integra- Unsplash, Jeff Sheldon Jeff Unsplash, the future of retail used to be run by people who would tion will result in automated sup- gauge how much of each product plier-customer sales negotiations in they needed. Today there are deeply closed business-to-business digital Rosalyn Page integrated systems managing stock marketplaces and upstream integra- The rapid pace of change replenishment, but these systems tion with suppliers of raw materials currently reshaping retail result in huge amounts of waste. and fi nancing solutions.” he coronavirus pandemic has accelerated Mountains of food and clothing Instead of mountains of waste, is expected to continue T future retail trends as many businesses rap- get destroyed each year due to the data and AI will predict stock idly adopt new services and technologies. diffi culty of predicting what cus- requirements, thereby limiting post-coronavirus, but in what Small businesses have been forced to develop digital tomers will want and when,” says wastage and reducing the impact way? Here’s what to expect platforms, in-store payments have moved away from Quantium’s Bhyat. on the environment. And by 2030, cash and orders delivered by drones no longer seem 3 “In 2030, entire value chains will retail in developed markets will in 2021, 2025 and 2030 worlds away. So what will shopping look like in 2021, Blended retail music, dining and entertainment be aligned to accurate predictive have environmental issues embed- 2025 and 2030? experience will take its place,” says Hames. models of consumer needs,” he says. ded in it. “Customers will be able to Development of partnerships Bhyat predicts retailers will gravi- understand and off set the carbon The 2020s will be a decade of dis- between diff erent retailers, from tate to suppliers with value chains emissions of their retail spending ruption; COVID-19 was just the hairdressers and spas to clothing more responsive to consumer through their bank,” says Bhyat. curtain opener. In 2025, we’ll still retailers and offi ce supplies, will be experiencing the tail end of the see ‘unlike’ providers collaborate as pandemic in terms of its impact. part of a blended retail experience. It’s time retail “Hybrid working models, reduced Midway in the decade will also be Personalised off ers business travel, commercial build- an infl ection point in ecommerce, By 2021 ings at lower occupancy and dis- according to retail analyst Berg. As One of the key future retail trends, cretionary spending will remain the decade started, ecommerce was Shutterstock, Jarek Kilian Kilian Jarek Shutterstock, took headless personalisation engines will become cautious,” says futurist Dr Richard focused on reducing friction and more sophisticated by the end of Hames. Future retail trends will see aiming for a seamless experience, 2021. Data that feeds into personali- “retail theatre” develop at this time. but it will move to being more engag- sation will hone the ability for retail- By mid-decade, the conventional ing and immersive. Traditional and PWAs seriously ers to suggest off ers and content retail model of just hanging rows retailers and online retailers will

Unsplash, Arturo Rey to consumers right at the moment and rows of clothes on hangers transition towards a convergence of consideration. and supplying a couple of chang- point. “Consumers have come to Coronavirus lockdowns have been catalysts for retail change, "In the old days, people visited ing rooms and a mirror will be on expect fast and free delivery and accelerating the move towards a digital-first approach local shopkeepers who knew them the way out. “A resurgence in shop- returns, and then post-COVID; it’s by name and could predict their ping malls, off ering a richer range about immersion and discovery,” needs based on what they wanted of experiences by blending retail, says Berg. through a personal relation- 5 hen ecommerce is the only The perfect storm has occurred over which are the product and order man- ship,” says Riyadh Bhyat, head of W way of doing business, com- recent months. Customer habits have agement part; hence the name “head- Quantium in Europe, Middle East panies have re-engineered changed rapidly. Those retailers with less”. It’s increasingly being adopted by and Africa. Seamless shopping providing a personalised experi- their operations to be digital at their monolithic systems realise the cost of digital-first retailers as an antidote to tra- Bhyat says in 2020 some retailers ence. “Social commerce can com- core. The coronavirus pandemic has making changes to their digital offer- ditional ecommerce architecture, which are recreating that experience at Consumers will have seamless bine the personal touch consum- also exposed ageing infrastructure, ing is high. This comes at a time when ties both systems together. scale using data-driven algorithms shopping experiences through ers used to find in a store with legacy systems and the need for some- more purchases are on smartphones. “Headless is a far more flexible and scal- taking in hundreds of factors to social platforms in 2030, shrink- the convenience of an online pur- thing different. This mcommerce could account for 73 able architecture. The challenge is that drive hyper-personalised off ers and ing waiting time for customer ser- chase,” says Luis Baena, principal “Looking forwards, 2021 will be the percent of all retail ecommerce sales there’s still an issue with the business user service for national retailers. "2021 vice queries with smart chatbots at Oliver Wyman. year of the digital storefront. For some, by 2021 and expect more growth when experience. The management tools are

will point to the future when retail- Jackson A Brian Shutterstock, and bringing highly personalised “Consumers are increasingly using we’ve seen ten years of growth in digital 5G is adopted. fairly immature. This is what we’ve been ers will do your shopping for you,” experiences through user-gener- social media to engage with brands within six months. A lot of retail players “What we’ve seen is massive frus- spending our time and energy working on, he says. ated content. across the entire customer journey, are now looking for a better ecommerce tration with our customers’ ability to trying to solve the management challenge “When you opt in as a customer, Prompted by COVID-19 a decade from discovering new brands and architecture, something that’s flexible, deliver change quickly and do that for this new infrastructure, so we give they’ll predict your needs and earlier, which helped propel online products to writing reviews, com- scalable and offers a more fulfilling cus- digital transformation in a reasonable businesspeople back control of this tech- deliver them, thereby minimising retail towards true omnichannel ments and feedback.” tomer experience,” says James Brooke, time and cost. That’s what is driving a nology,” says Brooke, whose company was search time. In fashion, this will social commerce, discrete sales When it comes to the eff ect on chief executive of Amplience, a global move to a completely new ecommerce named a strong performer in Forrester extend to selecting items that per- channels will have dissolved. Highly future retail trends of social com- leader in digital experience manage- infrastructure,” says Brooke, founder Wave reports. fectly fi t you, based on the body immersive retail experiences will be merce, it will be a leveller between ment solutions for retail. of Amplience, which works with more Progressive web apps, or PWAs, are scans you’ve shared.” provided by virtual and augmented large brands and challenger brands. “We’ve now reached a tipping point. than 350 of the world’s leading retail also part of this new retail tech archi- By late-2021, data will be integral reality. “In 2030, sales channels will “Social commerce will increasingly There’s a proliferation of very mature players, including Sainsbury’s - Argos, tecture. These are app-like experi- to the way businesses hear the voice hub for immediate4 consumption, include virtual reality and fulfi l- become a powerful tool for small tooling right now that retailers can lev- Very Group, Liberty and Halfords. ences, but without the need to build a 1 Customer Return of physical stores “There will be fewer, but far of consumers and understand cus- as an experiential venue and as a ment will include drone delivery,” brands to access their well-targeted erage. Businesses don’t have to com- If customers are coming through native app, and are in response to the better stores,” she predicts. The tomer expectations. “It allows them expectations rule showroom to communicate about says Bhyat. customer segments and make them promise. At the same time many are Pinterest or Instagram, Facebook Shops shift to mobile. Lightening fast when “We will experience our own ver- stores that thrive will need to to engage the people they serve not In 2025, more retailers will tap into the brand and support online sales Brands will enable customers to able to compete with large brands,” going through a digital transformation. or TikTok in vast numbers, retailers need it comes to load times, searchable via sion of the Roaring 20s,” says tap into emotion, human con- as demographics or segments, but local communities, developing as ecommerce fulfi lment points, move from offline to online, while says Baena. Those that adapt, create their retail to funnel these customers effectively and the web and no need for an app-store, Natalie Berg, retail analyst and nection, discovery and commu- as individuals and at scale. Whoever hyper-personalisation and hyper-lo- according to Kanaiya Parekh, expert digital twin effectively and utilise the pivot towards their needs with content to they’re another game-changer. founder of NBK Retail. While the nity. “Bricks-and-mortar retail does this best over the next decade calisation to attract consumers with retail partner at Bain & Company. right ecommerce solutions, will thrive.” match. It’s similar with mobile. Consumers “Combining headless and PWAs, retail- coronavirus crisis has shuttered will become a high-touch, senso- in any given market will undoubt- suitable off ers. The trend towards Parekh predicts new digital solu- now expect lightening speeds for down- ers can now have their cake and eat it. many high street stores and seen ry-driven experience,” she says. edly win,” says Bhyat. hyper-personalisation could see tions will enable retailers to meet ris- loading content. If it’s not below a second, Businesses don’t need to incur huge retailers and consumers fl ock to “There's an opportunity for retail- more retailers deliver a “white glove” ing customer expectations. Devices retailers can expect high bounce rates upfront investment costs for the rollout of ecommerce, physical stores will ers to start innovating with the service in a digital way to meet rising such as facial scanners will analyse and higher cart abandonment. this architecture. You can take an iterative be the focus again, but with a new physical space again.” customer expectations. skin to suggest personalised care “Customer expectations are evolving approach, manage the risk more easily emphasis, by late-2021. “We're all Berg also says physical stores will “In lockdown, retailers have rec- based on individual needs and prior rapidly. They expect innovative experi- and show early gains. We’ve seen clients craving to go into a store again,” need to become frictionless in more ognised the need to connect online experiences. Virtual reality will ena- ences. Consumers also want to engage show remarkable results with these new says Berg. ways than one. This includes con- consumers with in-store staff and ble customers to browse, interact Witthaya Prasongsin via Getty Images Those that adapt, with brands in ways that are meaning- tools,” says Brooke. “Their time is now.” While COVID-19 has undoubt- tactless payments, reducing phys- this will become more of an oppor- with and read information about ful to them. The experience needs to edly accelerated the rise of ecom- ical touchpoints, and expanding Ilka & Franz via Getty Images tunity to diff erentiate and develop products in a virtual environment. create their retail be coherent, exciting and more opti- For more please go to merce, there will always be a place and simplifying click and collect. customer loyalty through superior “Digital kiosks, powered by artifi - digital twin effectively mised for digital channels, particularly www.amplience.com for bricks-and-mortar retailing. “So, more convenient by using tech- service,” says Berg. cial intelligence (AI), at fast food res- mobile,” says Brooke. However, Berg warns that mediocre nology to reduce friction in-store Future retail trends will see stores taurants, equipped with automated and utilise the Part of this new architecture is so-called 2020 players won’t survive the pan- and making it easier and quicker evolve and follow the example of facial recognition, will let customers right ecommerce headless commerce, which separates demic and are unlikely to return as for customers to get in and get out,” Starbucks and Nike to play three navigate the menu, self-order and use the interface that’s customer facing, or traditional retailers. she says. 2 roles. These are as a transactional contactless payment,” says Parekh. 6 solutions, will thrive the storefront, from back-end solutions, 06 FUTURE OF RETAIL RACONTEUR.NET 07 Commercial feature

According to a 2019 Stackla report, THE IMPACT OF AI ON SEARCH & DISCOVERY it’s the preferred platform with 92 per cent of retailers, a preference Results based on deployment across 4 Attraqt retail customers (2020) Littleton says she sees refl ected Yes, [social commerce] is a strong option, but Before (Without AI-powered search) After (With AI-powered search) across her own clients. In large part that’s thanks to the introduction of diving feet fi rst into TikTok because it’s all Long-tail searches Volume of searches impacted its Instagram Checkout function are difficult to 35% in 2019, which allows users to fi nd, over the headlines isn’t the way optimise though they STR / Contributor via Getty Images 01 make up 15% of the purchase and pay for a product, all Low confidence (complex or ambiguous) searches improved overall search volume without leaving the app. 50-70% “That has been a game-changer,” Shoppers not getting she says, paving the way for “incred- think carefully about how to transi- infl uencers with toolkits that enable to the products they Higher search to PDP click rates for affected searches ibly quick” transactions, which tion their existing ecommerce off er them to have the relevant technical 02 want quickly; Complex 40-100% caters to those brands that rely on onto social media. skills, such as how to engage audi- searches delivering impulse purchases. To access the Chloe Cox, social media lead at ences through live streams”. ‘wrong or zero results’ Fewer ‘zero results’ searches tool and off er purchase options both Wunderman Thompson Commerce, Remember, it’s about balancing 95-99%% on their feed and Instagram stories, recommends brands and retailers the short-term gains, with longer- Significant untapped revenue from lost brands and retailers need only set establish themselves fi rst on the plat- term brand loyalty, he adds, so inte- Higher conversion rates for affected searches opportunities to up an approved commerce account. form via traditional marketing con- grate promotions and wider mar- 03 drive a purchase 20-60% Then there is Facebook. The most tent, to “capture consumers before keting campaigns on the platform established, and arguably most you start to advertise”. And, once you “to embed this as a permanent con- straightforward, of the platforms, do start to sell, use a diverse mix of tent channel”. in May it made social commerce content that moves between shots of After all, all the signs are that social even simpler with the introduction products, to partnerships with infl u- commerce will be a permanent fi x- of Facebook Shops. The free tool encers and shoppable posts. ture in retail going forward. Even enables any sized business to dis- Prioritise educational content without a global pandemic, there’s AI-powered search play, customise and sell direct to that signposts consumers on why little doubt it was set to enter the consumers with a minimal invest- and how to shop via social too, says mainstream. And now that’s likely to ment of resources or expertise. “It’s Gore at BJSS. In addition, ensure happen years earlier. For brands and a great shop window,” says Littleton those managing these accounts are retailers, this creates a new urgency. is the new weapon though, unlike Instagram, the UK well equipped for a shift to com- They’ll need to learn fast or face platform still funnels users to com- merce, by providing “employees and being left on the merch shelf. plete a purchase on a business’s own ecommerce site. SOCIAL COMMERCE in online retail For larger brands and retailers, YouTube can also provide a com- to China’s relatively new middle pelling way to reach potential class, for whom retail fi rst took Artificial intelligence and machine-learning can help place more consumers, she adds. Approved shape against a background of platforms with 10,000-plus sub- digitalisation, says Young Pham, items before consumers as they browse online, boosting sales Online shopping scribers, unless they are targeted chief strategy offi cer at digital at children, will automatically be consulting fi rm CI&T. Partly too, entitled to a “merch shelf”. This sits it’s China’s dense, urbanised he ability to search and find search results are often low. With large if they aren’t doing so.” underneath their video content and population. The country’s major T the product you want is the retail catalogues, finding products Increasingly search is managed within gets social allows them to showcase up to 12 metropolises, such as Shanghai most critical factor of every quickly can be an issue, as can locating the shopper journey. Merchandising products for purchase. and Beijing, provide platforms the shopping experience, especially with items on unfamiliar websites. This issue teams know what products customers Not to forget gaming platform chance to reach up to 50 million the shift to online in this coronavi- has been amplified during the pan- click on, browse and purchase after Twitch, owned by Amazon and people in a 30 or 40-mile radius, rus-conscious era. Google knows it, so demic as consumers shop more online. their searches. AI can interpret this A screen shows That said, for brands and retail- strategic, considered approach,” integrated with its application pro- who are therefore easy to ship does Amazon, that’s why they invested “For most retailers, search still runs data, learn and feedback for subse- Social media is no longer simply a fi nal sales fi gures ers keen to take advantage, it’s after Singles Day says Knowles. gramming interface, or API, which Can China teach the and deliver to. heavily in search powered by artificial on legacy technology that’s not fit quent queries. This is called contextual place to escape, communicate or seek best not to simply jump straight in 2019. Over 38.3 Conduct a little data analysis too, means brands don’t need their own UK how to master Whatever the drivers though, intelligence (AI). Every keyword search for purpose. Yet shoppers expect a search and gives the retailer more stra- without some preparatory steps, billion US dollars BJSS head of industries David Gore ecommerce platform to take advan- it’s clear the UK can learn plenty counts. Search technology is now the ‘Google quality’ response. They want to tegic control to deliver the right expe- were spent on social commerce? distraction, it’s now a major retail advises Jake Knowles, senior retail Alibaba platforms adds, to establish exactly who your tage. The platform allows users to from China’s example. Take the most underrated function in retail. enter increasingly complex text strings riences over shopper journeys that consultant at BJSS. “Yes, it’s a during the 24-hour core demographic is, which plat- shop straight from video broad- On November 11, China celebrated “pomp and circumstance” that “On-site search has been neglected into search boxes and get a spot-on start with keyword queries. channel too. So what do brands need strong option, the numbers speak shopping festival forms they tend to frequent and casts, allowing companies to drag Singles Day. What began in the surrounds Singles Day, says Pham. until now. This is one area retailers can result instantly. But this isn’t happen- “Retailers are never going to be for themselves, but diving feet fi rst how they currently use the diff er- and drop widgets beneath. nineties as a day when unmarried “That experience element has been up their game with little investment, by ing. Search is not meeting rising con- able to tag all their products effec- to know about social commerce? into TikTok just because it’s all over ent channels. TikTok too, though relatively new people would celebrate critical to success in China.” Brands accessing untapped revenue opportuni- sumer expectations,” says Adams. tively. This is where machine-learn- the headlines isn’t the way.” With this insight, brands and among platforms, “can be a won- their single status by treating and retailers in the UK should take ties immediately. Return on investment AIM-listed Attraqt works with more ing helps. AI-powered search learns Start by getting clarity on what retailers can then start to think derful place to tell stories about themselves to a few small gifts is note and ensure social commerce is huge,” says Mark Adams, chief execu- than 300 brands globally, including over time correlating both product you’re looking to achieve. Is it to about which platforms are the right your product”, says Littleton. now the biggest online shopping is as much experiential as tive of Attraqt, a global leader in online adidas, The Kooples and Screwfix. tags and searches with customer data. use social media as a platform fi t. Don’t spread yourself too thin Plus, in October, the platform festival in the world. 2020 was transactional, he recommends. Be search and merchandising solutions. Such savvy retailers increasingly real- This mapping is crucial. In turn it gives Megan Tatum for discovery? To pull engage- across all the options either, but opt announced its partnership with no exception, with $100 billion that beauty brands providing online Retail ecommerce is increasingly ise they need a best-of-breed approach customers a personalised experience, ment away from rival brands? Or to “excel on a couple”, says Tamara Shopify, paving the way for social spent over 11 days when Chinese consultations or fashion retailers about convenience at the point of pur- using the latest ecommerce solutions to providing relevance and context every uring the long and anx- embracing social media in its tru- simply to convert more clicks to Littleton, chief executive of The commerce. “That makes it one to shoppers snapped up deals on working with celebrity ambassadors chase, however product discovery on a drive better conversion, growth, reve- time they search,” says Adams. D ious months of the fi rst est sense, using it to bring them- sales? “Then compare that strat- Social Element. watch,” adds Littleton. food, fashion, furniture and even to showcase new lines. website can be challenging. Shoppers nue and superior experiences. Search is Algorithms can be trained on whole national lockdown, use selves closer together. What social egy to what the different plat- Currently, Instagram remains Whichever platform a brand or real estate. Stay one step ahead by learning often need to type in the exact words to just one tool out of dozens retailers can product catalogues and usage logs, of social media in the UK soared. commerce does is allow you to shop forms can offer and take a more the most popular choice in the UK. retailer opts for, they’ll then need to That’s in no small part thanks to from emerging trends in China get to the products they want. Relevant deploy, yet this function is the start of crunching data on images, text, People collectively logged on to with others too and bring back the explosion in social commerce too, adds Jake Knowles of BJSS. a high proportion of shopper journeys descriptions, categories and other online networks as a way to com- some of that experience of brows- in China. Sales via social are That includes both live streams, that end in a checkout. It is crucial. attributes, creating a unique product municate, connect with the outside ing a physical store with a friend. It expected to bring in $240 billion but also peer-to-peer shopping, “If you’re not returning relevant results fingerprint for each item. This relies on FREQUENCY OF WATCHING SHOPPING-RELATED LIVE STREAMING AMONG RESPONDENTS IN CHINA world or fi nd temporary distrac- puts pleasure into ecommerce.” to the country’s brands and where platforms facilitate on that first search term or worse ‘no deep learning, natural language pro- tion. But also, to shop. It isn’t only the shoppers them- As of May 2020 retailers this year, an increase shoppers “socialising” in pairs results’, that’s often the end of the shop- cessing, computer vision and informa- According to research by selves who stand to benefit either. of a third in just one year, with or groups as they purchase. One per journey. If you increase the number tion retrieval technologies, resulting in ParcelHero, a fi fth of all consumers For the platforms, it keeps users 30.6 per cent of the population Chinese platform, Pinduoduo, of products someone clicks on by even a much better search. indulged in social commerce dur- safely contained within “the 5% 45% 8% purchasing a product via a social actually lowers its prices, the On-site search has small amount, you’re going to have more “Our 2020 acquisition of proprietary IP, ing the initial lockdown. And by the walled garden” of their network, Less than Three to fi ve More than ten media platform, compared to only more consumers are browsing customers checking out,” says Adams. from leading AI innovation lab Aleph One, end of 2020, it is predicted nearly 11 without ever being directed to a once a week times a week times a week 16 per cent in the UK. products together. been neglected until “AI-powered search can have a radi- allows us to do just that. Now any of our million UK shoppers will have dis- third-party site. For the Singles Day sales, Don’t ignore the impact of now. This is one cal impact on conversion rates, some- retail customers can deploy this technol- covered a product on social media, And for brands and retailers, it Chinese consumers were treated China’s fulfi lment capabilities times by up to 60 per cent. We’ve ogy,” says Adams. “It’s the next frontier.” an increase of 95 per cent compared accesses the 96 per cent of UK con- to thousands upon thousands either, adds Knowles, and area retailers can achieved increases in revenues of to 2017. sumers who frequent social media of live shopping streams by the capacity for ecommerce up their game with between £3 million and £10 million in For these consumers, shopping channels at least once a month, brands, coupled with celebrity operators such as Alibaba to the deployments Attraqt has under- via the likes of Facebook, Instagram with the average user logging on for appearances, giveaways and distribute widely across a huge little investment, taken so far. This is game-changing. For more please go to and YouTube injected joy back into two hours every single day. discounts on Weibo, Renren geographical area. “Yes you need by accessing “Search results using algorithms and www.attraqt.com the shopping experience, says Julie “You can see why there's an 27% 16% and WeChat. the glitz and glam, but you have to machine-learning can sift through vast Atherton, consultant, strategist impetus from all of us to get Once to twice Six to ten This turbocharged adoption of have the infrastructure in place untapped revenue troves of data ranking them in milli- and author of Social Media Strategy. involved, whether we're a con- a week times a week social commerce is partly due as well.” opportunities seconds providing greater relevance. “What we’ve seen during the pan- sumer, the brand or the platform,” This impacts a retailer’s bottom line. demic is people of all generations says Atherton. Figures may not add up to 100 due to rounding Data100 Insight 2020 immediately Businesses need to deploy it right now 08 FUTURE OF RETAIL RACONTEUR.NET 09 Commercial feature

CONSUMER VIEWS ON THE NEED FOR SALES ASSISTANTS IN RETAIL STORES USING AUTOMATION TECHNOLOGY WORLDWIDE IN 2019 51% #supportsmallbusiness I am skeptical of using Instagram is helping small businesses survive, automation technology in stores because there are no and even thrive, during the pandemic RETAIL ASSISTANTS store employees who might help me use it

Are you hen the UK went into its W first lockdown, in March, the Borough Market London 42% bakers and bakery school Bread Ahead being served? (@breadaheadbakery) saw its cus- Self-checkout is a hassle tomer numbers drop and had to stop because I often need a its courses. For too long, retail workers have sales assistant to help me In response, it got creative, hosting live baking workshops on Instagram to been overworked, underpaid and replace the unique interaction it would underappreciated. Now, they might be the have with consumers in-store and to Capgemini 2020 help build an online community. best people to reinvigorate their sector “Instagram has been an invaluable platform for us to stay in touch with our to a business developer. It’s actually customers throughout the pandemic,” about a return to rather a traditional says founder Matthew Jones. “On a daily concept of shop-fl oor work, when basis, home bakers from all over the Josh Sims sales assistants had their little black world join our online community where book of clients, when there was a Until recently, we offer live baking classes, baking tuto- almart, the US supermar- Dr Denise Dahlhoff , senior rapport with them, when they could only a handful of rials on IGTV and a behind-the-scenes W ket and department store researcher at consumer behaviour call a customer up and ask about look at what we’re creating on Stories.” giant, just pulled the plug. analysts The Conference Board the family.” retailers have been It’s a similar tale for PRICK London (@ After a year-long experiment using and lecturer at Wharton Business Macniak Kamil Shutterstock, Improvements in training will ready to really prickldn), a popular cacti and succulents automated technology, including School, Pennsylvania, says: “The be essential, because it’s not as store founded by Gynelle Leon. She has robots to track inventory and scan pandemic’s increased digitalisa- “But while tech aids processes, This is especially the case when it if technology, data rich and com- understand that used the pandemic as an opportunity the shelves, the retailer has decided tion of shopping has put a lot of it doesn’t necessarily improve the comes to more technical products, plementary to rather than com- people are the special to nurture and grow the online side of it is people, actually, who do the job pressure on offl ine stores, even in in-store experience for shoppers. such as electronics, pharmaceuti- peting with humans, won’t be a her business, encouraging her followers better. What’s more, people, even the business-to-business world, but While tech aids processes, Improving that will be vital to the cals and DIY, or when a good eye is greater part of the retail land- element that makes to be #isolatedwithplants to help their pushy ones, don’t creep out the cus- it’s also placed a new emphasis on survival of shops and crucial to this benefi cial, as in fashion. scape to come, though initially good retail good mood during lockdown. tomers in quite the same way. everything tech can’t do: commu- it doesn’t necessarily improve the improvement will be sales associ- This approach will be essential in at least it’s set to manage more “Rethinking our strategy, we were What might come as a blow to nicating at a human level, creating ates,” says Costello. “Retail needs what Georgia Hanley, division man- repetitive or mundane tasks like able to drive sales and create weekly the robotics industry is no doubt a communities, generating loyalty. in-store experience for shoppers to reinvent itself and understand ager of TRP Recruitment, refers to taking payments. buzz through things like ‘product relief for shop-fl oor staff . After all, a “But it has also meant ever- sales associates are a major part as a new retail environment, which Fabian Wallace-Stephens, senior drops’ on Instagram,” says Leon. widely cited 2013 report from Oxford more knowledgeable customers of that. These people will need to is as much about the in-store experi- researcher with the Royal Society of retail. It’s not just about getting the “These changes not only helped University reckoned by 2020 the have higher expectations of offl ine be recognised for their passion ence as selling merchandise. Indeed, Art’s Future Work Centre, says the transaction done as soon as possible. increase our sales, but also built inter- likelihood of sales assistants being retail, especially of sales associ- other potential customers: “There’s and knowledge.” with retail increasingly described mistake for much retail has been “to It’s people who really represent the est in our business and created mean- replaced by tech was at 92 per cent. ates. There’s a need for a new kind of a demand for sales associates This will require a more consider- as experiential, with shops featur- try to compete with, say, Amazon on brand who are going to be most val- ingful engagement.” “But that hasn’t come to pass, not super sales assistant.” who are enthusiastic brand users, ate, fl exible approach to job-shar- ing skate ramps, workout classes, tech, rather than diff erentiate itself uable to the company they work for.” Instagram has long been vital for con- even with the pandemic driving a Indeed, if shop-fl oor work has his- because they make for authentic ing, working across multiple stores, cold rooms, cookery classes or art through the role of shop staff ”. Sales Kelsie Marian, retail research necting UK businesses and their cus- stampede to online shopping, such torically been low status and low sales people.” and to opening hours, for example. talks, much of it designed to be assistants, he argues, look increas- director at Gartner, says: “A lot of tomers, and this has been underlined that bricks-and-mortar shops seemed pay, far from tech doing away with Malcolm Costello, owner of Four “Late-night hours don’t encour- Instagrammable, sales staff are ingly like playing the role of in-store even the more futuristic ideas, like during the pandemic. As high streets evermore redundant,” says Rachel the role altogether, a counter narra- Seasons Recruitment, a recruit- age anyone to love their job,” he likely to be more the essential facili- infl uencers enabled by tech, “to pro- inventory robots or smart shelving, have been forced to shut, the platform Jones, senior lecturer in fashion busi- tive is it will require a rethink of the ment agency specialising in fashion notes. And pay needs to be higher, tators of a brand adventure. vide the kind of service that can’t are really about getting information has helped millions of small businesses Currently Instagram has more than a 47 million stories have used the sticker ness marketing at the University of job description and the kind of per- and luxury retail, argues this tran- with bonuses, and not commission “Because it’s long been underpaid simply be moved online”. to sales associates. And that matters to reinvent themselves, enabling them billion users worldwide, 83 per cent of over the past three months. Westminster. “I’d bet the eff ect may son right to fi ll it. sition has been happening over the based. “Because people don’t want and poorly trained, a retail career Liberty, the London department because I can’t emphasise enough to build new “digital storefronts”, inspire whom say they have used the platform Times are tough but businesses have be the opposite as there’s now the Dahlhoff speaks of “the last fi ve years, but the pandemic has to be sold to. They want someone has been looked down on,” she says. store, for example, took the oppor- how retail store associates are still customers with images and video, and to find new products or services, and been given a unique opportunity to try scope for, and a drive towards, a new Tupperware model”, for example, accelerated it. There has, he says, with insight and advice, who can “But the situation is propelling a new tunity of lockdown to overhaul its key to competitive advantage.” find new ways to sell goods online. one in ten follow a business on the app. new things digitally in the crisis. idea of shop-fl oor staff as more expert, after the maker of plastic contain- been too much emphasis on technol- provide services ahead of sales,” look at the sales assistant as abso- website, but also to look at how the Gartner research suggests cus- “Now more than ever, people want to Its specialist business features offer The high street’s shift to digital began connected and emotionally engaged.” ers’ famed use of customers to sell to ogy in retail as a panacea. says Costello. lutely essential, as someone closer online shopping experience could tomer satisfaction is 2.5 times feel a personal connection to support powerful marketing opportunities too, long before the pandemic, but has better integrate with offl ine to pro- greater in stores with well-trained, the places they shop and Instagram from being able to display your compa- jumped forward light years since March vide an omnichannel approach. It well-paid shop-fl oor staff and that makes it easy for businesses to create ny’s opening hours and contact info, to and the impact is likely to be long last- has introduced an Ask the Expert these staff members are 30 per cent content that tells their story, and shows the ability to boost posts and tag prod- ing. Similarly, Instagram’s new features service, through which customers more productive. Perhaps inevita- off their products and services in excit- ucts in Feed, Stories, and soon Reels, are not just on offer during the crisis, can book video calls with shop-fl oor bly, having well-paid staff results in ing ways,” says Gord Ray, Instagram’s so people can easily click to buy. but here to stay. staff , as well as Live Chat. Both have lower staff turnover, greater job sat- brand development lead. Since March Instagram has also “One thing is clear,” says Ray. “Retail proved a hugely popular way of link- isfaction and better service. rolled out a host of new features to is unlikely to ever be the same after the ing remote customers direct with “It’s been some time coming, but I help businesses struggling in the pan- crisis, and Instagram is committed to shop staff at the rails and shelves. think the pandemic will prove a turn- demic. These include Shops where helping small businesses survive and The sale may still end up being ing point in retail attitudes to sales retailers can create immersive full- thrive through the evolution.” online, but it’s been nurtured and associates,” says Marian. “The future screen digital store fronts to help facilitated by a real person. is going to be about creating high-per- build their brand story and drive prod- “We’re looking more at tech as formance sales teams. The question uct discovery; Food Orders which an enabler for the expertise of our is how quickly retail addresses the Instagram is allows restaurants to offer takeaway For more information please visit ambassadors,” as Madeleine Macey, idea, because until recently only a committed to helping services by adding an action button www.instagram.com Liberty’s chief marketing offi cer, handful of retailers have been ready to their accounts that takes followers describes shop-fl oor staff . “I don’t to make the investments in staff , to small businesses to their websites; and Support Small think any retailer has got this 100 per really understand special people are survive and thrive Business Stickers to let people pro- cent right yet, but clearly there’s still the special element that makes good mote their favourite small businesses a need for a human point of view in retail good retail.” through the evolution in their Instagram Stories. More than 10 FUTURE OF RETAIL RACONTEUR.NET 11 Commercial feature

BRICKS AND MORTAR Turning the high street on its head

As the coronavirus the past, the fee is now based on turnover rather than being a tradi- pandemic drives tional fixed-cost arrangement. Trust what Dumitru likewise expects to see big brands online, “more and more D2C brands test- ing the offline waters”. While she

they are leaving Mike Kemp via GettyImages believes retail partnerships, such as consumers say behind increasingly those offered by Showfields in New York, which in a reimagining of the affordable high street traditional department store ena- Consumer reviews via an independent, bles digitally native brands to inter- stores, something of act with customers in an offline set- transparent and trusted channel have which ecommerce ting for a monthly membership fee, will flourish, there could well, in the come into their own brands are taking short-term at least, also be a grow- ing appetite among D2C businesses advantage to open high street pop-up stores. Should they prove successful, these offline spaces could then turn into a more permanent fix- Cath Everett ture, while managing to stay true he world of retail has been experience and reviews help them to to their identity and the values that T altered forever by coro- do that. With Trustpilot services such helped them grow in the first place, navirus, with the resulting as Review Insights, they can look more s the retail sector becomes says Dumitru. change in consumer behaviours driv- holistically at trends and sentiments A increasingly polarised A positive example of this mixed ing in-store shopping into a downward across all their Trustpilot feedback and between providing con- approach, she believes, is the spiral and fuelling unprecedented create digestible reports for the senior sumers with either functional or French D2C clothing label Sézane. growth in ecommerce. In the absence management team. emotional shopping activities, the Its London store has a similar aes- of physical access to product informa- “In the post-pandemic retail renais- future of the high street will pro- thetic to the firm’s Instagram tion, consumer purchasing decisions sance, to compete against the likes of gressively be based on experiences feed, holds carefully curated are based on available digital content, Amazon and eBay, every business will and the personalised services gen- stock and enables shoppers to col- which increasingly is being generated need to invest in its own trust ecosys- erally provided by smaller stores. lect their orders or return items. by customers themselves. tem, based on asking customers for Tim Greenhalgh, chairman and Dumitru describes it as “truly chic Online reviews have been part of the their honest feedback.” chief creative officer at retail and omnichannel execution”. consumer decision-making process for Research has shown consumer review brand consultancy Fitch, explains: Other so-called experience trends many years. Peter Mühlmann, founder websites rank second only to friends “The future of shopping is not retail. include concept stores, which were and ceo of Trustpilot, a leading online and family as the most trusted by con- The future of shopping is experi- first pioneered by fashion designer review platform, founded the com- sumers in the UK and United States ence. Things were already in motion Mary Quant in the 1950s and the pany in 2007 to make customers feel to provide an honest opinion about here before COVID, but they’ve now rather newer “campfire” com- confident in buying from businesses a product or service. A Trustpilot been accelerated and brought to munities, such as The People’s proven to be trusted by other custom- Canvas8 study2 showed 89 per cent of the fore.” Supermarket in Holborn, London. ers. Thirteen years on, he explains why consumers in the UK, United States and In his view, retail has now become Ogilvy UK, points out: “What was As a result, Nam expects to see The supermarket, which sells locally customer reviews are now the lynchpin France check online reviews as part of transactional, whether a purchase once the playground of digitally growing numbers of D2C and chal- and ethically sourced produce, acts of the trust infrastructure in a rapidly their online buying journey. takes place via a mobile phone, native brands has become a more lenger brands trying their luck on as a community hub staffed by vol- expanding online economy. It is the difference between a brand tell- online or in store. Shopping, on The future of shopping is not cluttered space, where everyone the high street. While this trend is unteers who work for four hours a “This year was a huge shock to the ing customers how great their products negative reviews than if there are no online shopping after the pandemic the other hand, is all about service, is trying to increase their share of already making its presence felt in month in exchange for a discount on system for everyone, with develop- and services are, and someone who has reviews at all.” than they did before, while 80 per cent which is being driven by several key retail. The future of shopping audience attention.” the United States, it is much more their shopping bill. ments in ecommerce that would likely actually purchased them telling other Even more important is how the com- of business buyers expected to do trends. These include a growing is experience On the other hand, high street early stages in the UK. “But I can Ultimately, what this all means is, have happened over a number of years customers how great they are. However, pany responds to negative feedback and more business purchasing online in the move to buy both locally and more rents are starting to fall due to a predict confidently it will happen,” despite widespread prophecies of taking place in six months,” he says. the reality of inviting honest feedback a good response to a negative review, Consumers want post-pandemic era. sustainably, and the appeal of the range of factors, including social she says. doom, “the high street isn’t going “As a result everyone feels a greater is that sometimes it isn’t great, but as demonstrating how well a business to know that Mühlmann concludes: “As new con- more human approach offered by distancing and chains either closing “Landlords are starting to under- anywhere soon”, says Dumitru. degree of uncertainty and the need Mühlmann points out, negative reviews deals with a problem, is crucial. Negative sumers flock online and businesses new smaller, independent shops. stores or going bust. stand D2C retailers bring more traf- Instead it will increasingly morph for reassurance that these new ways from customers can be as valuable as reviews are also a powerful tool for busi- review content is and old follow them, brands still need As a result, says Greenhalgh, he is In London, for example, estate fic as we have a dedicated online fol- and change into a place where peo- of doing things will be just as good as positive reviews. For one thing, they are ness improvement and innovation. independent and to show they are a trusted entity. To this already seeing evidence of big-box Henley Business School, this situa- agency Savills has reported the lowing that will come to our offline ple interact with and experience the old ways. a sign of the transparency and authen- “Business owners often assume their end, the consumer review will become retail starting to follow the lead of tion is opening up opportunities for biggest drop ever in rentals across store and that drives up the overall brands rather than simply under- “In that sense, consumer reviews that ticity of the review website. customers will tell them if they’ve had a unbiased. Any hint of even more ubiquitous. However, it will the independent sector and embrace smaller online retailers as supply prime central-London sites, with a value of the street,” Nam explains. take a transaction. In this context: validate the quality of a brand, ser- He says: “Some companies worry about bad experience,” says Mühlmann. “Most suspicion that it isn’t be the transparency and authenticity the idea of having a “local presence disruption has meant consumers 12.9 per cent fall year on year. Land She has just negotiated a new “D2C brands will enhance the high vice or product and the authenticity negative feedback, but it is better than times, unless you ask them, they won’t, of those reviews, the values on which rather than just a smaller format have bought elsewhere, liked what Commercial Surveyors, meanwhile, rental agreement with a landlord in street, but there’ll also be traditional of customer satisfaction with it, via an having no feedback at all. In an age of but they will probably tell their friends. will destroy their trust Trustpilot has been built, that will be the shop in a local environment”. In they’ve seen and may not go back. forecasts post-pandemic rents could London’s Westbourne Grove. Despite brands that will adapt and flourish independent, transparent and trusted online scams and bogus businesses, Asking them for feedback gives you the in the review, and real differentiator for businesses. other words, it is about curating and “COVID has been a loyalty disrup- plummet by as much as 50 per cent. being an unaffordable location in too,” she concludes. channel, have come into their own.” open, honest feedback tells customers chance to respond and to make changes “Consumers want to know review con- stocking local products and brands, tor,” she says. The shift in shopping behaviours since you are a real business. We also know that will improve your offering. It shows potentially, the brand tent is independent and unbiased. Any while also “working harder to ensure But there have been other impacts lockdown is stark. In October the from research of consumer behav- potential customers you listen and you hint of suspicion that it isn’t will destroy staff are the face of the brand” and too, says Connie Nam, founder and CENTRAL LONDON RETAIL MARKET decline in shopper numbers across all iour that people are more likely to buy care, and that is key to establishing trust.” their trust in the review and, potentially, create ongoing relationships with chief executive of jewellery brand UK retail destinations fell by 31.5 per if there is mixed feedback, with a few Online businesses using customer the brand. What they want is an inde- their customers, he says. Astrid & Miyu. On the one hand, for cent year on year, according to figures reviews may appear to have an advan- pendent third party, a trusted institu- 1 “They’re starting to realise that direct-to-consumer (D2C) and chal- West End footfall New Prime All central London Oxford Street Central London from Springboard , while ecommerce tage over bricks-and-mortar stores click-through from search engines. tion, to give them that confidence. just having shops with shelves is the lenger brands, selling online was weekly average international West End Prime Zone A rental West prime investment sales have continued to soar, alongside that don’t, but reviews will likely prove Recent studies reveal how dramatically old retail, while the new shopping is once a much cheaper option than year-on-year entrants vacancy rate growth year on year Zone A rent volumes greater use of customer reviews. valuable in restoring trust and con- consumer shopping habits have evolved about service and making it real,” setting up a physical store due to the Trustpilot has more than 100 million fidence for those keen to return to over the past several months and why For more information please visit Greenhalgh explains. cost of high street rents and busi- reviews on its platform and its own shopping in-store. “More than any- the old normal of recent years and early- business.trustpilot.com At the same time, although many ness rates. 2019 research shows that by the end of thing, these businesses need to give 2020 is almost certainly gone for good. of the big brands may have been Because big brands with deeper Q3 -0.1% 14 5.0% -4.0% £850 £193m March, 33.6 per cent of consumers customers a compelling reason for In a global study by Salesforce3, 58 per per sq feet dabbling with ecommerce for a pockets are now strengthening their were checking reviews of businesses coming into the store, and hearing cent of consumers expected to do more while, the pandemic has inevita- presence online though, the stead- and services more frequently than they The reality is that in this new from other people that it’s safe and the bly accelerated their move online, ily rising cost of online marketing did before lockdown. era of retail renaissance, a in-store consumer experience is great forcing them to seek new revenue means many smaller brands are “Consumer trust is a key differentiator and well worth the visit, will be key,” 2020 1 https://www.retailgazette.co.uk/blog/2020/11/ streams as the usual footfall to phys- being priced out, says Nam. online,” says Mühlmann. “Businesses business or a brand is no longer says Mühlmann. footfall-plummets-31-5-across-retail-destinations-in-october/ Q3 -59.9% 2 6.1% -12.7% £750 £21m ical stores has been curtailed. To make matters worse, Larisa per sq feet may not be able to compete on price Another benefit of online consumer 2 https://uk.business.trustpilot.com/guides-reports/build-trusted-brand/ what it says it is, but what the the-critical-role-of-reviews-in-internet-trust According to Moira Clark, pro- Dumitru, head of ecommerce at with larger companies, but they can reviews is the impact they have on fessor of strategic marketing at advertising and marketing agency Savills 2020 compete by creating a better consumer consumer says it is a brand or product’s visibility and 3 https://www.digitalcommerce360.com/article/coronavirus-impact-online-retail/ 12 FUTURE OF RETAIL RACONTEUR.NET 13

UK adults surveyed in September say Christmas would be more important IN-STORE OR ONLINE? in than ever in 2020, rising to three 1 How UK shoppers expect in-store and online 2 quarters of 18 to 34-year-olds shopping to change this Christmas 51% 65% FRUGAL OR In-store Online

said they plan to start of US consumers said they feel said they would prefer shopping for Christmas More % anxious about shopping in-store to shop online to avoid 12 earlier this year as a 59% this holiday season crowds 23% result of COVID-19 FRIVOLOUS? Deloitte 2020 Kinetic UK 2020 The coronavirus pandemic will undoubtedly change the traditions of the festive shopping season, Same but how it will impact the retail sector remains to be seen. With research showing that Christmas is 28% 29% more important to consumers this year than before, will the virus outbreak be a boon for all retailers SPENDING OR SAVING? STARTING EARLY as shoppers indulge in gift-giving, or are people likely to cut back on spending as the economic crisis How UK shoppers expect their spending to change from last Christmas When UK shoppers surveyed in September said continues to unfold? they expected to start their Christmas shopping Less 60% 12% 28% 25% 28% 15% Plan to 26% spend less Power Reviews 2020 THE FESTIVE BUDGET American households expect to spend $1,387 on average this holiday season, down 7 per cent year-on-year, but breaking down the budget shows some significant changes Plan to 58% spend the SHOPPING CONCERNS same Biggest worries for US adults about holiday shopping Retail catagories Plan to 16% spend Started October November December more already Dealing with others who £26.9bn % aren’t taking coronavirus Gift and gift cards Non-gift purchases Kinetic UK 2020 Kinetic UK 2020 71 will be spent by Brits seriously when shopping on Christmas gifts $487 -5% YoY $435 +12% YoY this year

Finder 2020 OFFLINE COMFORT Being around or too 70% close to others in How comfortable US shoppers feel about the following physical shopping locations this holiday season $347 $140 $175 $119 stores Gifts Cards/gift certificates Non-gift clothing Other Very Somewhat Somewhat Very comfortable comfortable uncomfortable uncomfortable 68% My health and safety $141 $260 while I shop Home/holiday Socialising away from furnishings Going to a local store home/travel 23% 45% 22% 10% Delivery speeds and -34% YoY 54% /or delays Shopping in store 22% 41% 25% 13% Difficulties window 39% shopping/finding Shopping at an creative gifts outdoor market 21% 41% 23% 15% My comfort and savviness % when shopping for gifts 37 online Shopping at a big box retailer % 37% 25% 18% 20 Having less time to leave $205 34% home and shop for gifts Entertaining Shopping at a department store at home % 31% 27% 25% Disappointing friends 17 % 0% YoY 33 and family with the gifts I give $1,387 Shopping centres/malls Average spend 16% 25% 28% 31% % Finding time to 29 shop

(figures may not add to 100 due to rounding) Deloitte 2020 Morning Consult 2020 Morning Consult 2020 14 FUTURE OF RETAIL RACONTEUR.NET 15 Commercial feature

Black Friday, but with a second of The Real Real’s most in-demand OPINION lockdown in force, is postponing vintage home brands, with its lat- to January 2021. est annual Resale Report revealing a

Both claim increasing consumer 24 per cent year on year increase in Logic Element choice and reducing environmen- demand for home items. tal impact as key drivers, forming Market trends are also build- part of a group of more than 60 ing appetite for The RealReal’s retailers to sign up to the British business-to-business vendor pro- ‘We must work to Retail Consortium’s Climate gramme, a platform where lux- Action Roadmap. ury brands and retailers can With households respon- either anonymously or publicly rebuild a more ethical sible for around 60 per cent set up a resale shop window, of global greenhouse gas with The RealReal doing all the emissions, according to heavy lifting in terms of listing future for the millions Hege Sæbjørnsen, country and logistics. sustainability manager for Allison Sommer, senior direc- IKEA UK and Ireland, the tor of strategic initiatives at The of people who make retailer has a unique opportunity RealReal, says the pandemic has to lead change. catalysed brands’ commitment our business possible’ “Last year, we repaired and towards resale. repackaged 47 million products “For brands like Gucci, the globally. Through initiatives like appeal is in expanding its core buyback, our ambition is to give a sustainability values to include second life to more products and extending the life of the pieces he Abolition of the Slave It would also provide an equal create more affordable, accessible they create. Our global audi- T Trade Act entered the stat- opportunity for businesses to com- solutions to help people live more ence offers an opportunity to sell ute book on March 25, 1807, pete fairly and prevent miscreant Robots are efficient sustainably,” she says. through existing inventory or prohibiting slavery in the British businesses from undercutting hon- Good intentions aside, will build brand awareness,” she says. Empire. Yet, more than 200 years est manufacturers. Similar licens- recommerce really catch on when Partnerships, whether for profit later, slavery still exists, with work- ing schemes exist in farming, with a thriving secondhand market- or charitable, are tipped to be what ers being ruthlessly exploited for anyone who supplies workers for and a spectacle place already exists? While Mak takes recommerce outside larger commercial gain. And, sadly, this is activities such as harvesting pro- sees the merit, she warns of bar- retailers and beyond fashion, happening in our retail industry. duce requiring a licence from the riers in the form of accessibility ticking the boxes of critical mass, While retailers have been work- GLAA to operate. An in-store robotic storage and picking system and appeal. operational efficiency, brand rec- ing hard to stamp out labour It is incredibly disappointing “The IKEA scheme, for ognition, consumer value and, of exploitation in their supply chains, that the government has still not can help lure consumers back to high street shops instance, requires customers course, sustainability. human rights abuses continue to acted on these proposals; they are to bring the fully assembled prod- occur. Take Leicester, the centre of effectively extending the suffer- uct back to their nearest store, UK clothing and textile manufac- ing these individuals are forced often typically located outside ture, home to the remains of King to endure. Every week that goes RECOMMERCE city centres. While a collection Richard III, a triumphant football by represents tens of millions of t the H-E-B grocery store in sports equipment, then check stock shops into places that can engage, and service would help, the additional team and respected universities. pounds of refused wages. This lost A Texas, shoppers don’t only availability and place orders on touch- therefore retain, customers is crucial. cost of transport and logistics Despite this appearance as mod- money is crucial; it represents the encounter friendly staff and screens in store. Installing an ASRS inside a store helps would eat into already thinning % ern and forward thinking, approx- mouths that cannot be fed and the aisles stocked with the best organic This is not brand-new technology; achieve this. Not only is it a talking retail margins,” she says. 36 imately 10,000 garment workers homes that cannot be heated. produce, they also enjoy the futuris- AutoStore’s patented and proven sys- point, it also allows retailers to get rid Secondhand is making Operations will certainly prove are being exploited in its factories; We will not stop campaigning tic spectacle of robots fulfilling their tems have been developed over the of aisles and offer richer in-store expe- initially prohibitive for smaller forced to work long hours for £3 to until serious action is taken. We are orders on site. last 25 years and are now used all over riences. Just look at the way brands players, adds Abbie Morris, increase in fi rst-time buyers of £4 an hour at best. How can this be currently working with MPs, nota- At the centre of the shop stands the world. AutoStore began life when such as Apple and Lululemon continue founder and chief executive of high-value items during COVID happening right under our noses? bly Dr Lisa Cameron, chair of the an 8,000-square-metre automated the firm, formerly an electronic com- to attract consumers to their shops by good in buyback trend sustainability comparison plat- The British Retail Consortium All-Party Parliamentary Group for storage and retrieval system (ASRS), ponents distributor, was looking for a turning them into hubs of education form Compare Ethics, who also and our members are doing all we Textiles and Fashion, who tabled installed by the Norwegian firm way of avoiding having to procure more and entertainment. highlights product durability as can to eliminate these exploita- a motion in Parliament calling on AutoStore. Inside, robots zip around a warehouse space. AutoStore’s systems boost conveni- The secondhand market is already has resulted in consumers put- an issue. tive practices from supply chains. the government to “implement the grid system, collecting groceries from In the end it developed its own auto- ence too, enabling retailers to consol- ting more thought into how their “As resale becomes increasingly 26% Our members are working with British Retail Consortium’s pro- ceiling-high stacks of bins and bringing mated storage and retrieval system, idate orders in less than ten minutes popular in fashion and electronics, living space can accommodate normalised, it is expected there Fast Forward, a supply chain posal for a fit-to-trade licensing them down to staff who pack them for inspired by the Rubik’s cube, to max- and fulfil them that day, giving local remote working, exercising, edu- will be better systems created to labour standards improvement scheme for all garment factories in delivery or collection. imise the space it had. customers more choice and flexibility. but a new wave of sustainably minded cation, entertainment and relax- facilitate the resale economy, sup- more spent per home item programme, that exposes hidden the UK”. Not only is it a site to behold, the stor- Inventory is stacked high in bins The business case is clear: as the ation, better serving their needs, porting smaller players to enter vs apparel item, quarter exploitation and assesses adher- The government could adopt age facility also allows H-E-B to keep in an aluminium cubic grid that can cost of last-mile deliveries continues consumers could see the trend expand at a fraction of the cost,” says Mak. the space,” she says. “But current ence to employment laws and ethi- such a licensing scheme within much larger volumes of inventory on be formed in any shape and around to rise, companies are finding it harder on quarter “Meanwhile, we have seen an products are not made to last. We cal labour standards requirements. months; it is a clear, attainable site, widening the range of goods it can obstacles. High-speed robots work to meet the demands of customers and into other areas of retail uptick in housing transactions need a complete overhaul of the It provides training for suppliers, step. Customers want to know offer. It also makes it easier to fulfil large all day, shuffling the bins and deliv- survive on lower margins. with the abolition of stamp duty design process to successfully implements better supplier terms the clothes they buy have been numbers of online orders locally from ering orders to the workstations on But installing an AutoStore enables for most first-time buyers, prompt- capture the opportunity.” and blacklists exploitative suppli- made by workers who are valued, the shop, rather than having to rely on the grid-edges, where humans pick or retailers to stay close to their custom- ing these generally younger buy- Consensus is that more part- ers. However, more must be done to respected, paid properly and pro- a warehouse miles away, which reduces replenish the inventory. ers and run an efficient ecommerce ers to seek affordable methods to nerships between retailers and % raise the entire UK fashion and tex- tected by the law. courier costs and cuts pollution. The system, which is simple to pro- fulfilment centre alongside a more cus- MaryLou Costa 77 furnish and inject some personal- resellers will pave recommerce’s tile industry to the same standards. We cannot let these opportuni- In another retail installation, at the gramme, quadruples a retailer’s stor- tomer-centric store. ity into their property.” path into the mainstream. We also work with enforcement ties pass us by. We must work to eXXpozed sports store in the Allgäu age capacity while reducing the labour It also allows them to burnish their ashion has joined recom- authorised stores, firstly due to It’s a sentiment John Lewis and Demonstrating success in part- increase in home agencies such as the Gangmasters rebuild a more sustainable and region of Germany, AutoStore’s ASRS required for manual fulfilment. green credentials. Not only do locally F merce, with superbrands electrical waste disposal regula- IKEA are already acting on. John nership is the British Heart consignments during COVID and Labour Abuse Authority (GLAA), ethical future for the millions of frees up floor space which has been sourced deliveries generate less Levi’s and Gucci the lat- tions and restrictions, second the Lewis is launching a buyback or Foundation (BHF), which makes which is raising awareness of the people who make our business pos- put to other uses. Redefining retail carbon emissions, but ten AutoStore est to adopt reselling in a second- relatively high resale value and take-back scheme across all its 35 per cent of its profit through problem and fi ghting to “protect sible, and for the world we live in. The retailer can now hold immer- AutoStore’s systems have been used robots use only the same amount of hand market projected to more third because many consumers do products by 2025. IKEA, mean- homewares. It dominates the sec- vulnerable and exploited workers sive events and workshops in the shop, chiefly to optimise warehouse or back- energy as a vacuum cleaner. than double to $51 billion by 2023. not know how to safely erase sen- while, was set to open its furni- ondhand furniture landscape and disrupt exploitative practices and customers can even try the latest of-shop storage space. More than 500 In short, installing an AutoStore As consumers become driven sitive data,” Mak explains. ture buyback and resale offering through eBay and Gumtree, with and help bring criminals to jus- ASRSs have been installed worldwide for gives retailers vastly more storage more by sustainability, there are “Luxury jewellery and acces- in selected stores to coincide with furniture retailers HSL, DFS 150% tice”. We have also signed up to the clients as diverse as UK grocer Asda, US capacity in the same footprint as glimmers of early uptake beyond sories are another category, and Made.com regularly donat- Apparel and General Merchandise consumer electronics chain Best Buy and manual storage. And with substantial spike in art consignments fashion. Recent data from YouGov as consumers often feel more ing stock. Last year, BHF stores Public and Private Protocol. medical supplies giant Medline Industries. space-savings, comes a range of new found 17 per cent of retailers will comfortable having high-value helped reuse and recycle more during COVID In July, we wrote to home secretary But more recently AutoStore has creative possibilities. start selling secondhand items in items maintained, appraised than 35,000 tonnes of furniture Priti Patel – the letter was signed by expanded to offer storage solutions 2021, with 32 per cent considering and authenticated before resale and electrical products and res- more than 50 MPs and peers, and that also form an integral part of the offering product recycling. and purchase.” cued 180,000 sofas from landfill, 40 retailers, investors and NGOs Inventory is stacked retail experience. Yet recommerce, often recog- Furniture and electricals make Current products are not helping prevent 135,000 tonnes of – to demand a fi t-to-trade licens- Driving this is the realisation that For more information please visit nised as buyback schemes, is not up the second biggest category carbon emissions. 24% ing scheme for UK garment facto- high in bins in an retail has been fundamentally trans- autostoresystem.com new, IBISWorld analyst Gaetana outside clothing, representing 25 made to last. We need a Gucci made its foray into resale ries. This scheme would protect aluminium cubic grid formed as more people shop online, Mak notes, with adoption across per cent of secondhand sales, as by partnering with luxury con- workers from forced labour, debt leaving high streets under pressure to the wider retail sector leaning illustrated in IBISWorld’s Second- complete overhaul of the signment website The RealReal. increase in demand for bondage and mistreatment, ensur- that can be formed reinvent themselves. towards higher-value items. Hand Goods Stores report. design process to successfully Its branded space features a mix home items year on year ing payment of the national min- Helen Dickinson, OBE in any shape and Shops must now be experiential, not “Personal electronics typically “The additional time at home of items consigned by consumers imum wage, VAT, PAYE, National Chief executive just utilitarian, to woo consumers back. lend themselves well to resale to [during the coronavirus pandemic] capture the opportunity and the brand itself. Gucci is one The RealReal 2020 Insurance and holiday pay. British Retail Consortium around obstacles And in this new environment, turning 16 FUTURE OF RETAIL RACONTEUR.NET 17 Commercial feature

Shutterstock, abyt10 Shutterstock, Marketplaces provide a flexible DARK STORES Retail’s bright business model for a changing world

Far from belonging to ecommerce dark future THE POTENTIAL OF THE MARKETPLACE MODEL giants, the marketplace platform With online retailers running out of CHANGES IN UK CONSUMER WHY A A PROVEN model is now accessible to any BEHAVIOUR IN A NEW WORLD MARKETPLACE? MODEL warehouse space and physical outlets company desiring the agility to seeing less footfall, a brilliant new serve customers in the digital age partnership has sprung up 87% 60% of Amazon’s share of of Brits made purchases Offer more revenue comes from Ecommerce online in 2020 (vs 53% in 2008) third-party sellers Morag Cuddeford-Jones giant Amazon will Rapidly increase your potentially purchase product assortment empty JCPenney units in shopping n many ways, 2020 has explains: “Financially, it’s really centres to turn Mirakl-powered I been a bumper year for hard for the last-mile cost. Stores them into fulfi llment Marketplaces achieved online shopping, but there have to maintain big vans and send centres, in just one example of dark 61% have also been major challenges to them on long journeys.” Dark stores stores’ potential overcome. Grocery retailers expe- bring fulfi lment closer to the cus- increase in UK online sales in % rienced supply chain and last-mile tomer and reduce the cost of extra he retail sector has trans- Marketplace makes it easier for retail- 111 the first week of November after GMV growth in the first logistical problems as demand sky- warehousing space. never perfect,” he says. The answer till, not be in the warehouse, and T formed over the past two ers to expand into new categories. The 2nd confinement announced Learn more half of 2020 and are on rocketed, while bricks-and-mortar Jarkko Kyttänen, digital, trans- may be micro-fulfi lment. now we’re hiring Co-op colleagues decades in a once-in-a-cen- trend is already sweeping the United Discover what else track to achieve $5B GMV outlets lay fallow. But the coronavi- formation and growth chief digital The Co-op, with 2,500 loca- who can perform multiple tasks,” tury shift from offline to digital and at States. In August, Kroger announced it your customers want in the next 12 months rus pandemic has revealed oppor- offi cer at Finland’s SOK Retail Trade, tions on local high streets is ideal Conway adds. the centre of that story has been the was launching a marketplace featuring tunities, accelerating strategies which has one dark store so far, sees for micro-fulfi lment. The com- People are shifting away from “Amazon Go-type stores [high- rapid rise of the digital marketplace third-party sellers, allowing it to offer that were previously only in pilot the evolution towards dark stores pany began a programme of high- tech with no checkouts] are really model. During a time of significant more than 50,000 additional items the big shop and customers Mirakl Marketplaces stage. Retail’s bright future may lie taking two distinct paths. “We need speed local fulfi lment in part- interesting, but in micro-fulfi lment pressure on traditional bricks-and- across multiple categories, including 57% deliver a significant in dark stores. to know two things,” he says. "On nership with takeaway delivery want groceries like they want where you automate part of the pro- mortar stores, the platform economy natural and organic, international food, Dark stores are former shops that the one hand, how to automate most specialists Deliveroo before the pan- cess, you still have to pick a lot of offers unprecedented opportunities speciality items, housewares and toys a takeaway of Brits that report regularly become functional fulfi lment cen- processes like Amazon or Ocado in demic struck. things by personnel,” says Kyttänen. for retail companies to establish new The model not only provides an shopping online made a Sell more tres, staff ed with a few pickers and large-scale warehouses and on the “People are shifting away from “We’re exploring how you can make revenue opportunities, scale with opportunity to offer their customers purchase from a marketplace 162% visited only by delivery drivers. other, how to make smaller grocery the big shop and customers want the actual picking process faster and true agility and meet the ever-evolving a wider range of products and ser- (vs 13% direct purchases Increase sales and return on investment They have come to the fore during operators have more effi cient pro- groceries like they want a takea- more effi cient. There’s a lot of poten- expectations of customers for a fast vices, enhancing their revenue growth from retailer websites) improve satisfaction within three years the pandemic, but the trend was cesses locally.” way. We’re practically on everyone’s agrees fast-food delivery special- tial to innovate there.” and seamless shopping experience. opportunities, but also the ability to already on the up. Finland is having an interesting doorstep. With lots of stores close ists make excellent partners. “Meal One of the challenges will be mar- Platform companies are twice as learn a lot more about consumers. Paul Boyle, chief executive at Retail experience of the dark store con- to customers, it can be delivered delivery companies in Finland have rying automation with smart pick- profitable and more than twice as Mirakl has discovered from the data Insight, says: “Amazon’s potential cept as its population is geograph- really fast. The average distance expanded their operations to dark ing. “How do we speed the process valuable as their conventional coun- that passes through its SaaS Platform management, such as seller onboard- experts who have been working within purchase of JCPenney’s empty units ically widely spread. Many of the may only be a kilometre,” says the stores and are helping us with same- of picking, minimise outages and terparts, according to analysis by MIT that the rate of growth on market- ing, service quality control and order the platform economy for up to 20 in US malls to make fulfi lment cen- benefi ts of rapid fulfi lment depend Co-op’s Conway. day delivery because they’re so used make intelligent substitutions. If Sloan Management Review. Research place products outstrips the tradi- distribution, with a turnkey solution years. Mirakl-powered marketplaces tres is interesting. It’s always been on dense, urban centres. This works He says most deliveries from the to it,” he says. the picker can’t fi nd something, by Adobe found that of the seven in ten tional growth of first-party products. The platform model is here, that can be integrated into any ecom- are well on track to achieve $5 billion in really expensive to do that. The well for the UK’s cities, but is less 500 participating stores make it to Conway adds: “It takes time and there is the risk of letting the cus- UK shoppers who regularly shop online, This means marketplace companies merce platform. With Mirakl Catalog gross merchandise volume (GMV) over pandemic is going to change com- well explored in its more rural areas. customers in around 25 minutes, eff ort to build the technology and tomer down. There is no signifi - more than half use marketplaces, with have much more opportunities to learn it’s mature and it’s going be Manager, it is easy to manage product the next 12 months and the company mercial real estate and gives lots of This is one challenge, but Boyle but concedes this approach requires get to scale. Working with partners cant impact on customer satisfac- the average online shopper between about the behaviour and preferences around for a long time data quality at marketplace scale. plans to treble the size of its team in opportunities for retailers to create adds another: dark stores have dedicated rapid-delivery ranges is the healthy way to do it.” tion or NPS [net promoter score] March and June making eleven pur- of consumers. As well as technology, Mirakl has built the next year. mini fulfi lment centres.” tended to be larger spaces that are with the price increases that come Boyle reveals that in the United from a smart pick. In fact, you have chases on marketplaces compared These kinds of insights are also a rich ecosystem around its platform, “We are growing very substantially The cost of fulfi lment has always still relatively far from customers’ with it. However, Conway insists States fulfi lment by gig economy is the occasion to delight them. That with just three directly with retailers. important when it comes to dealing Mirakl Connect. Both on the fron- in the UK,” Walsh adds. “We see highly been a sticking point, but more so houses. “It is always on the wrong essentials are unchanged and it’s starting to dominate. “We’ve seen means having as many items on “That’s the ultimate endorsement with peaks in demand. Retailers plan tend, where it has numerous product significant organisations embarking on during the pandemic. Chris Conway, side of the city because customers added extras that bear the brunt. the outsourcing of that to Instacart shelf as possible,” says Boyle. that the platform model is here, it’s well in advance of peak seasons such as connectors into different ecommerce this journey, with big launches planned the Co-op’s head of ecommerce, change and demographics move. It’s At SOK Retail Trade, Kyttänen and Deliveroo,” he says. “Instacart Conway thinks micro-fulfi lment mature and it’s going be around for Black Friday and Christmas to ensure sites, and on the backend with differ- for next year across some of the key is currently doing 54 per cent of and dark stores can at least pay for a long time,” says Brendan Walsh, they are able to cope with the spikes successfully, and quickly, introducing ent payment gateways, it takes a long- retailers. Traditional retailers are creat- all online picking. It’s the biggest themselves if they solve enough cus- UK general manager at Mirakl, which in demand. However, they also have to new product ranges outside their core term view to marketplace success by ing company-wide initiatives to estab- online retailer in America right now tomer problems in the right place, powers platform strategies by ena- be ready for unexpected peaks, such offering thanks to their marketplace. adopting a partnership approach with lish a marketplace model that comple- IMPACT OF CORONAVIRUS ON THE ONLINE SHOPPING EXPERIENCE and it doesn’t have a store. It’s the at the right time. “There is a lot bling companies to launch and grow as that experienced in the first wave of “Marketplaces are much more effec- its clients. Through all of this, Mirakl ments everything they’re already doing. In the UK May 2020 interim solution.” to be said for using back-up space an online marketplace with products the coronavirus when physical stores tive than going through the traditional considers two journeys: the customer As consumers move more and more to However, is it wise to move ful- more eff ectively. We can see a huge from third-party sellers. “The plat- were closed and online activity soared. retail model of companies buying a experience and the seller experience. digital, the imperative is for retailers to 34% 22% 27% 18% fi lment from warehousing spe- change in the way we buy and allo- form model offers a much faster rate The deep capability and intelligence bunch of products up front and then “It’s really important to get both of make sure they are in the right place at cialists to already harried staff in cate stores. It’s about providing lots of growth. If you look at Amazon, for gained through a marketplace model is just hoping they can sell them at a sig- those journeys correct to create the the right time with the right offer via Ordering convenience stores? Might it not of products and services – parcel example, 60 per cent of their share of vital here. nificant margin. Connecting consumers network effect,” says Walsh. “We focus the right channel, ultimately ensuring takeaway damage retail effi ciency, rather than collections, paying for utilities and revenue is really down to their market- “With a marketplace model, it can be directly to third-party sellers reduces on enabling the win-win-win situation they can be successful interacting with food enhance it? housing a post offi ce – that makes it place and the products and services very easy to not only offer new prod- the cost and need to store large quan- of creating value for the three: the their customers.” “The customer doesn’t care where all pay,” he says. sold via third-party sellers. ucts and promote inventory where tities of stock in a warehouse. When we marketplace operator, their custom- things have been fulfi lled from. Boyle concludes: “In the short “We often talk about the ‘divinely stocks are high, but also to do things look at how the marketplace interacts ers and their sellers. The profitability Stopped completely Reduced No change Increased They want to get the same thing term, micro-fulfi lment will pros- discontent customer’, which was an like stockouts and A/B testing, with with retailers’ traditional organisation, of a marketplace is 35 per cent higher online as in-store whether you ship per. Longer term, it all moves expression by Jeff Bezos a few years ago. low commitment and upfront capi- it should be complementary to the fan- than traditional first-party ecommerce it, collect it or walk in and buy it,” towards dark stores. That’s because Platform companies and marketplaces tal investment,” says Walsh. “Retail tastic businesses they’ve already built, sites. A lot of that comes down to that To learn more about the potential Shopping says Boyle. the labour cost will keep growing, aim to meet the customer wherever they companies can achieve the agility and and that includes supporting each network effect we see from building an of the marketplace model for your for groceries “Technology is a big one, as well but property costs will come down, are and for any product or service they flexibility to manage a lot of A/B test- other during times of peak demand.” ecosystem around our digital platform, company, please visit mirakl.com online as communicating to colleagues particularly in large urban centres. wish to buy. This is something we’re very ing around pricing, for instance, as A marketplace may be a simple con- which helps marketplaces to scale and and dealing with real-time infor- Technology costs will come down excited about for our customers and also well as testing new products and ser- cept, but it is difficult to execute suc- grow revenues over time.” 13% 13% 42% 32% mation. We’re making all our col- too. Dark stores have to win long any other companies that are thinking of vices with customers. In response to cessfully. The Mirakl Marketplace Mirakl, whose clients include the likes leagues multi-skilled. Ten years term, but we’re nowhere close to that embarking on this journey towards cre- changing consumer demand spurred Platform automates the more chal- of H&M Home and Harvey Nichols, has InternetRetailing 2020 ago, we’d hire someone to work the right now.” ating and growing a marketplace.” by COVID-19, we have seen customers lenging aspects of marketplace built a team of hundreds of marketplace 18 FUTURE OF RETAIL RACONTEUR.NET 19 Commercial feature

OPINION Reverse Life 2020 Ava May Aromas 2020 ‘2021 is going to be Data and the trust the year when we start to rebuild; that work barometer - the new must be done with a frontline of retail digital-fi rst mindset’ Consumers are increasingly demanding control of their data and its ethical use

he coronavirus pan- We are now in the second national T demic has fundamentally lockdown, but after the previous Collagen beauty reshaped how we shop. one, when the stores reopened on brand, Reverse Life, has built up Closure of non-essential retail stores June 15, online volumes remained he inventor of the world a strong following for long periods, combined with the very high. Even as other types of T wide web has a startup. Sir using endorsements emptying of city centres as many business opened again, providing Tim Berners-Lee’s company from celebrities like people work from home, has fuelled people other options to spend their Inrupt has launched Solid, a platform Peter Andre a boom in online retail. money, those elevated online vol- for giving consumers control over their Online retail sales growth has been umes did not suddenly cease. The data. Solid keeps user data in a secure huge this year as a result. Just look at rate of growth has declined from locker, or pod, and access can be Chapman built the brand on Insurance, for example, is noto- some of these year-to-date (January above 50 per cent during the fi rst granted or revoked as needed. Hannah Chapman, founder of candle social media. Instagram is her riously generic. Insurers tend to to October) sales growth fi gures for lockdown, to just below 40 per cent This means consumers need brand, Ava May main platform, with 242,000 fol- compete on price. Yet branding can various product categories: home now, but this is still fi ve to six times never input data twice for differ- Aromas. Her unique lowers. “I talk to my followers make a huge difference. Liverpool up 70 per cent, electricals up 91 per higher than the growth rate in 2019. ent services, merely grant access story and personal touch has inspired like they are family,” she says. Victoria worked with a creative cent, garden up 235 per cent. These This year’s Black Friday period to their Solid data pod. It cuts loyal customers “I show my face nearly every day. agency Designate to push its LV= extraordinary growth rates have not is already looking like it will be a down on misuse of data as informa- My followers feel like they are on my brand as a warm and emotional been seen since the infancy of ecom- record breaker. tion is stored privately by the user. journey with me. I have customers symbol of happy family life. The merce over a decade ago. 2021 is likely to be tough as the Sir Tim has persuaded the BBC, BRAND RECOGNITION from my fi rst days who still check in.” result was sales growth of 696 per This, however, is some turnaround. economy recovers from the huge NHS and NatWest bank to explore The result is a bullet-proof brand. cent in five years. Cost of acquisi- At the start of the year, we reported impact of the pandemic. Overall his concept. This is reflected in price: Ava May tion fell 77 per cent. year-on-year growth for online sales retail spending is likely to be lower The appeal is obvious. Consumers Aromas charges £18 for a candle Yet too many small brands fail in 2019 at just 6.7 per cent, the lowest as shoppers have less disposable are deeply concerned by data use and £24 for a two-wick candle. to invest in branding. James for any year since we started track- income, but we anticipate online’s and abuse. Protecting data is the new How could your Amazon's recommended brands Beveridge, co-founder of brand ing in 2000. The travails on the high share of the retail pie will remain frontline of retail. Brands that fail to are both cheaper and lower qual- consultancy Made By Giants, street are well documented, but substantial and continue to grow, inspire trust are being abandoned. ity: no threat. observes: “From our experience, online retail was not really booming albeit at a more measured pace. A worldwide survey found a third have give us permission. We never sell your consumers are putting good privacy When brands want to gauge their small-business founders come to either. The pandemic has triggered The term “digital fi rst” has been already switched brands for data-pri- data,” the company says. practices at the heart of their brand business rival Amazon? superiority to generic rivals, the realise the value of their brand fi ve years’ worth of growth in a mat- around for a long time, but it has vacy reasons. Deloitte found 98 per The issue is magnified with the engagement decisions. This increase best place to start is price. For quite late in their journey; initially ter of months. often seemed more an aspiration cent of UK consumers are concerned forthcoming European Union ePri- in consumer awareness is driving example, Nurofen is 100 per cent it's about products and the bottom The likely causes are multiple and than a reality for retailers. The clo- by the way online brands use personal vacy Regulation. “It’s the sister legis- change in the way online services and Outselling the ecommerce giant is a fool’s goal but, in this ibuprofen, yet costs three times line. They are also very stretched complex, nonetheless 2020 has been sure of stores only lasted for three data. A further 85 per cent will avoid a lation to the General Data Protection connected devices are designed.” more than a generic version. This so don’t have a lot of time to define a tumultuous year when retailers months during the fi rst lockdown, brand if their data is not secure. Regulation,” explains Karen Hendy, The good news is brands that build time of retail upheaval, premium products with a strong method of comparing a brand to the foundations of their brand.” have been caught in the eye of the but in forcing shoppers to focus their Olly Bray, senior partner at law firm co-head of retail at RPC. “The text is trust with consumers will prosper. a generic rival is enshrined in ISO Beveridge believes retailers need storm, dealing with an unplanned behaviour online, their perception RPC and noted tech commentator, says still being agreed. The aim is to add They’ll build loyalty and enjoy access to brand identity can hold their own in a crowded marketplace 10668 and used by venture capi- to spend more time on their brand- peak while having the pressures of it as the primary channel for retail we’ve hit a turning point. “Data privacy protections for personal data in elec- the data they require to develop prod- tal firms to calculate the value of ing. “Brands aren't created out of social distancing limiting their has been further underscored. is arguably the hottest topic in retail tronic communications. All brands will ucts and market effectively. unlisted retailers. of thin air. The art of defining, capacity to process volume quickly For retail, just as in every industry, right now. Consumers are shopping need to review their data processes to Bray puts it like this: “The only way A great brand can push any prod- articulating and bringing to life a in warehouses. Once we are through 2021 is going to be the year when we around to find brands that take data ensure they are compliant.” brands will be able to meaningfully Charles Orton-Jones uct line into this premium branded strong brand across an organisa- this incredibly hectic Christmas start to rebuild; that work must be seriously. It’s a huge opportunity for The UK’s position after the Brexit interact with consumers in the future category. Mark Shephard and his tion takes love, care and crafting. trading period online, it will be done with a digital-fi rst mindset if it those who get it right,” he says. transition period is uncertain, but cur- is by building trust through transpar- business partner Chris Niebel The people doing this kind of work time to start executing revised retail is to be successful long term. In retail, Marks & Spencer is a pio- rent policy is to mirror EU data policies ency, human-centred design and eth- here's a tip in venture cap- alleged Amazon uses non-public Her fame on social media trig- launched a collagen beauty brand in are the equivalent of the research growth strategies. Retailers, including those with neer. It publishes all data policies in to ensure a compatible data treatment ical data use. We are working with our T ital that if you're in the data to find profitable lines and gered a raft of copycats, but the May, using a basic online shopfront and development team behind the What, then, should those strate- stores, with strong online proposi- plain English. It enhances the brand’s across the two jurisdictions. clients so they can take the lead on the same line of business as then enters them with its own brand ensured sales are still boom- for sales. They targeted celebrities Aston Martin. Aston Martin even gies focus on? Diffi culty lies in the tions, will continue to trade well. mission to be a friend of the consumer. “This is an opportunity for brands to issue. Crack this and your customers Amazon, get out. And if Amazon products. The legality is disputed. ing. “My dad is now my business to build their brand, called Reverse call themselves a design company.” sheer depth of the unknowns fac- Those without, for whom it’s not In the tech world, graphics card maker stand out,” says Bray. “My own family should be with you for life. Ignore it isn't in your line of business, also The effectiveness is not. partner,” she explains. “I remem- Life, and won endorsements from The rise and rise of Amazon ing us. Will we get on top of the virus already too late, must adapt now if Nvidia operates a policy of total clarity. is now making retail choices based on and they’ll leave you for dust.” get out. The sector is irrelevant. So what's the solution to retail- ber speaking to him about all the Christine McGuinness, Peter Andre, means products without a strong in 2021 or will it continue to dictate they are to survive. “We promise to protect your privacy. the ethics of brands. We switched to Nowhere is this truer than in ing in the age of Amazon? The people copying me. I was quite Tanya Bardsley, Carole Malone and brand will struggle. Cut-price what we can and cannot do? Will We only collect personal data to make the Mindful Chef food delivery ser- retail. Amazon is a ferocious beast, only answer is branding. A hand- stressed. He was very calm and Amy Childs. They sold £100,000 rivals are flooding the market and people work from home far more or or improve our products, or if you vice because it donates a school meal Karen Hendy with 30 per cent of the UK's entire ful of brilliant brands are proving said 'Don't worry, no one can copy worth in the fi rst two months and Amazon's own-brand products will return to offi ces? In what ways, if to a child in poverty for every meal co-head of retail, +44 20 3060 6051 ecommerce market. And it just it is possible to thrive. They enjoy your story’. And he was right.” hit £250,000 in August. drag prices ever lower. any, has customer behaviour been purchased. The packaging is recy- keeps expanding. loyal customers and can charge “We have already outperformed Chapman at Ava May Aromas altered long term? clable. Data privacy is part of that Oliver Bray Mid-November saw the unveil- a premium. every collagen company,” says believes her strategy to build a There are no straightforward ethical proposition.” senior partner, +44 20 3060 6277 ing of Amazon Pharmacy, which Hannah Chapman is the founder Shephard. “Our target for the premium brand means her can- answers, but one thing seems appar- Furthermore, even before innova- will offer discounts of 80 per cent of Ava May Aromas, a candle brand first quarter of 2021 is £500,000 a dle business can soar above this ent that retail’s rapid shift online is tions like Solid gain wide adoption, on generic drugs and 40 per cent she launched two years ago from month making us by far the larg- maelstrom. She'll find good mar- permanent. The reason online expe- consumers are being armed with To find out more please visit on branded products. The share her family kitchen, aged 23. She est, most successful collagen com- gins and loyal customers no matter rienced such a surge in demand was Consumers are tools to exercise greater control over www.rpc.co.uk/retail prices of other retailers plum- melted wax on the kitchen hob pany in the UK for collagen and what the market does. because the stores were ordered data collection and use. meted: Walgreens, owner of Boots, to pour into moulds. Today she vitamin products.” These are sen- “I am trying to stay off Amazon to close. People had to buy online putting good “At the end of last year more than fell 10 per cent in a day. employs 26 people and expects My brand is an original. Some sational numbers in a crowded and stay independent,” she says. through necessity; some were not privacy practices at 500 million people used mobile Just a week earlier, the European turnover to hit £10 million. product category. “It would dilute my identity. My regular online shoppers or had never browsers that block ads by default,” Union informed Amazon of its “My brand is an original,” she of our fans have followed my Big brands enjoy the same uplift; way is to run my own website; the purchased online before. Clearly for Justin Opie the heart of their says Bray. “Google is phasing out preliminary view that it breached says. “Some of our fans have fol- story since I started. Our name an improvement to the brand leads only way you can buy my prod- many, the migration of offl ine to Managing director brand engagement third-party cookies in its Chrome rules by using sales data to ben- lowed my story since I started. Our to stickier customer loyalty and ucts.” Her story makes a convinc- online shopping behaviour will stick IMRG: the UK's industry browser. Apple is making privacy efit its own-brand products. It is name and logo are unmistakable.” and logo are unmistakable the ability to charge a premium. ing case. for them now through preference. association for online retail decisions the default across its products. And 20 FUTURE OF RETAIL RACONTEUR.NET 21 Commercial feature

RETAIL CALENDAR Taking a peek at the new retail calendar Q&A What happens to however, stresses author and business consultant Erica Wolfe- Black Friday when Murray. “The hype surround- customers can’t ing traditional retail peak days Meeting customer has a halo eff ect across the board jostle in the aisles? whether you are actively market- ing or not,” she says. “But the ben- Or Christmas efi t ecommerce brings allows you needs in the age of Matthew Horwood via GettyImages via Horwood Matthew to create and build your own peak shopping season retail event. Think ‘Founder’s Day’, when we can’t hit the ‘Dress-Up Day’, or whatever.” social commerce Technology can also help with high street? Experts the morphing of traditional peak retail periods, from dealing with The rise of social commerce has multiplied the think these dates stock management and the sup- ply chain, to predicting when channels through which people shop. Productsup will become part of more staff might be required. Or a whole new online with improving the delivery pro- chief marketing officerMarcel Hollerbach says cess, posits Mike Hancox, chief retailers need commerce marketing to thrive in retail calendar executive of UK couriers Yodel. “The five months stretching from November to the end of March this new world have long been the busiest period for those in logistics as they encompass retail’s traditional peaks of Black Friday, Christmas, Oliver Pickup Valentine’s Day and Mother’s Day,” he says. ill it be a happy Christmas “This year we’re expecting W for UK retailers? After the Christmas to be higher in intensity coronavirus pandemic and longer in duration than previ- squeezing the life out of the high ous years, but a greater increase in street, they certainly deserve some overall volumes means the fl uctu- cheer. Data shows their fortunes ations seen in previous years could could be resurrected by ecom- be less pronounced in the future.” merce. But given the shift to online, Yodel has developed a par- How has the retail landscape Have consumer behaviour and data; dinosaur-age slow data. Legacy just mentioned and that’s what sets us and the evolution of shopping hab- cel-scanning app to streamline the evolved in recent years? expectations fuelled those product information management (PIM) apart. The platform’s primary function its, what does it mean for the tradi- delivery process. “It gives more Consumers are now discovering, changes? or digital asset management (DAM) sys- is to make product data management tional retail calendar? fl exibility to the growing numbers researching and buying products Oh, they certainly have. Google, tems just weren’t intended to be used and syndication easy. We do this by New data from Adobe indicates of self-employed couriers out on the on more channels than ever before. Facebook and Amazon spoiled for syndication. They won’t get product offering built-in connectivity to more activity around key retail dates will road who can download the app on New concepts, platforms and apps pop consumers with sleek product design, data to the right channels in time, and than 2,000 channels as well as over begin earlier, and peak retail occa- their own devices rather than hav- up all the time and some grow incredi- frequent updates and a seamless user they certainly won’t let you tailor and Commerce marketing is the 100 easy editing and analysis tools. sions will be higher and more pro- ing to get up to speed with a hand- bly quickly. Earlier this year, TikTok gen- experience across mobile and desk- manage the data easily. To compete, missing piece of the puzzle That means you can come in with raw longed. According to the software direct result of COVID-19, we have off er more generous discounts both held terminal.” erated the most downloads of any app top. Now consumers expect the same businesses need to start looking at ways or disorganised data and quickly pre- giant’s international president Paul witnessed heightened search que- online and in-store. Striving to reduce touchpoints in a single quarter, surpassing two bil- of all other companies they interact to expand their tech stack. That’s just between the classic commerce pare and send it to all kinds of chan- Robson, online holiday sales will ries for online retail this year that However, Dr Rajesh Bhargave, and frictions through tech is now lion downloads in total just a few years with. People find their niche – their the next step for commerce. stack – PIM and DAM – and end- nels. We enable order synchronisa- “shatter all previous records”. will lead to a new baseline for Black The benefi t ecommerce brings associate professor of marketing at business critical, argues Professor after launching. In the past two years, all websites, apps or groups – and that’s tion and the creation of rich media at This is supported by Adobe’s pro- Friday,” says Becky Power, director Imperial College Business School, Laurent Muzellec, founder and major social platforms have launched where they thrive. This is why retail- You often talk about “agile” user marketing and selling scale. With such tools, the sky really is jections that, in America alone, of consumer retail and technology allows you to create and build cautions that one issue retailers will director of Trinity Centre for Digital shopping capabilities, making social ers need to reach not just Amazon or product data; what other data the limit. This is how modern brands Black Friday will generate $10 bil- at Google UK. “Google searches for face post-COVID-19 is the dilemma Business. “Big digital players such commerce one of the biggest buzz Walmart, but all these other apps and attributes do businesses now and retailers take control of their data lion (£7.5 billion) in online sales. ‘early Black Friday deals’ were up your own peak retail event of “sticky prices”. “Consumers as Netfl ix, Amazon and Apple use phrases in retail. There has also been a opportunities. They need to under- require to succeed? to sell more. “That’s a 39 per cent year-on-year by 150 per cent versus November tend to remember what they would artifi cial intelligence to produce an huge emphasis on the seamless integra- stand consumers are the ones making Quality and contextualis- increase,” says Robson. “Cyber 2019.” Further, Google searches for have paid previously for a prod- eff ortless experience; this should tion of online and offline experiences. the rules and they have very high ation are both very important. What in your view is the future Monday will remain the biggest “Christmas shopping” are up 1,800 uct, so would view price increases be a source of inspiration for all Consumers want convenience and expectations of every platform. Quality means not just well written, of retail? online shopping day of the year,” he per cent compared to the same as unjust in poor economic condi- retailers,” he says. speed, but they also want experiences. but thorough and useful. For example, The future of retail is expo- continues, adding that $12.7 billion period last year. uncover meaningful insights from tions,” he says. “Similarly, cutting Retailers that act on this advice Think of Walmart’s drive-in cinema, How is the rise of social com- Facebook has just launched enhanced nential from here on out. More (£9.6 billion) is expected to be spent “The message is clear: consum- their performance.” prices would erode pricing power.” and tailor their off erings, both Harrods’ pop-up stores or even the merce, in particular, impacting catalogs that allow businesses to go content has grown. That’s what first people will find more niche groups, in the United States, up 35 per cent ers are looking beyond traditional Kyle Harbinson, of global tech- No retailers should be discour- online and offl ine, look set to have explosion of buy online pick up In-store. retail? into incredible detail and include illuminated this missing puzzle piece. apps, channels and marketplaces. on last year. peaks in the retail calendar as they nology consultants REPL Group, aged from embracing ecommerce, a happy Christmas and beyond. Retailers have been working very hard There are two things to love about really unique data points like ‘occa- In the past, the work could be done Multichannel will continue to explode, Robson says: “Our research into continue to enjoy the fl exibility of agrees. “To reduce the impact of to create a stellar customer experience social commerce. First, it reaches sion’, ‘sports team’, ‘theme’, or even manually, but that won’t scale when as will user expectations. Local shops the online shopping habits of browsing online,” says Power, who the troughs, retailers need to con- across all these touchpoints. shoppers where they are. Someone ‘denim features’, all of which are very you have dozens of channels, thou- are also going to be increasingly mul- UK consumers during lockdown points out that Enders research nect with and understand the cir- can go from browsing their news feed useful for targeting. Contextualisation, sands of SKUs [stock-keeping units] tichannel. This process has already EXPECTED OFFLINE AND ONLINE SPEND OVER BLACK FRIDAY WEEKEND IN THE found that while they were up to estimates there will be an addi- cumstances of their customers, to making a purchase in seconds. And meanwhile, is about ensuring content and need to tailor for dozens of buyer begun, but it’s been surprisingly diffi- UNITED KINGDOM (UK) IN 2020 four times more likely to buy from tional £4.5 billion-worth of online in a dynamically changing envi- because they already trust the app, is prepared for the unique audience personas. Commerce marketing plat- cult for many. When it comes to this marketplaces like Amazon, it’s not sales in 2020. ronment,” the consulting partner In billion GBP Online O f fl i n e there are minimal blockers. Social com- in question. Users on Instagram don’t forms are designed to help businesses exponential growth, Productsup will always at the expense of smaller Retail owners must keep pace says. “We are in uncharted terri- merce makes shoppers’ lives easier. want to be spoken to like they’re on create data that fulfils the eight key be right there with brands and retail- independent retailers. Where mar- with customer expectations and tory, so retailers need to pivot from 1.92 Second, it makes it easy for brands and Amazon. You can’t speak to users in facets of strong product data: agile, ers, giving them the easy tools to scale. ketplaces may have the edge when arm themselves with technology instinct-driven decision-making to Black Friday retailers to get started online. Digitally Germany like you would to users in contextualised, informed, transacta- it comes to convenience and speed, that enables multi-channel per- a data-driven culture.” 0.46 native, vertical brands are a popular Canada. Everything needs to be tai- ble, ecosystem-connected, experi- shoppers have also shown they are sonalisation and improves data Warnings are being heeded. example. Even when you have a small lored. This can be complicated but, mental, local and collaborative. They keen to support local, independent analysis. “Given that a continually Capgemini’s annual Holiday team and no ecommerce infrastruc- when done right, it’s very rewarding. let brands reach any channel, from retailers where they can. growing number of consumers are Shopping Survey reports that while Cyber 1.93 ture, you can still jump on social media search engines to marketplaces, “The extended shopping period, already shopping online for tra- more than a third (36 per cent) of Weekend 0.68 and start selling. All companies should What is commerce marketing social channels and good old-fash- coupled with the ability of independ- ditional peaks, retailers will have UK retailers expect an increase in People find their at least consider it to stay relevant. and why do companies need it? ioned bricks and mortar. ent retailers to deliver great, per- to adapt to be ready for this rise holiday sales compared to previous niche – their Commerce marketing is the For more information please visit sonalised digital experiences, could in demand,” says Power. “Digital years, 91 per cent have taken delib- 1.91 What challenges must retailers missing piece of the puzzle How is Productsup helping productsup.com see them have a happier Christmas tools are imperative for applying erate steps to bolster their online Cyber websites, apps or overcome to deal with all this between the classic commerce stack companies do this? period than many might expect.” product promotions easily and off ering. Almost half (47 per cent) Monday 0.60 groups – and that’s change? – PIM and DAM – and end-user mar- The Productsup Commerce Google data also implies the retail quickly, boosting retailers’ visi- have improved their ecommerce It all comes down to agility. Most keting and selling. In recent years, Marketing platform is built to calendar needs updating. “As a bility to new customers, and can propositions and 52 per cent will Centre for Retail Research 2020 where they thrive brands and retailers have slow the need for strong, tailored product completely support the eight facets I 22 FUTURE OF RETAIL RACONTEUR.NET 23

EXPERIENTIAL RETAIL “If consumers are able to speak remotely to a shop assistant, who can Burberry then take them around the store or show them the grain of the leather on a new handbag in a near real-life sim- High-touch ulation, it’s likely to improve brand loyalty and increase sales,” according to Richard Clarke, executive director Are you of global retail at Fujitsu. Are you future of For some store environments, the new booking economy is already here due to the pandemic. In a post-COVID world, this could be elevated to touchless retail achieve a more exclusive experience, selling particularly for luxury bricks-and- selling mortar retail. The nightclub doorman Many retail brands have spent years and his list for VIP guests has worked and millions transforming their stores well for decades. “Retailers should consider elevat- into the into immersive experiences. But how ing the in-store shopping experience into the by introducing reservations for more will they fare now coronavirus has intimate and safe physical shopping experiences,” says Rebecca Robins, taken away one of the senses to chief learning and culture officer which these experiences appeal? at Interbrand. US? Burberry's first “Certainly, experiential spaces are US? social retail store in Shenzhen, China, central to creating a reason for stores where customers to exist. They are a stage for prod- have access to ucts and services,” she says. “Lingerie Nick Easen exclusive content brand ThirdLove, which is all about and personalised Learn how to avoid experiences through inclusivity and comfort, reimagined Learn how to avoid ormer prime minister David essentially accelerating the trend a dedicated app its first pop-up shop in London’s Soho F Cameron famously said: “I that was already out there,” explains through the lens of how it would make new sales tax traps was the future once.” Many Nick Cooper, group executive direc- a consumer feel, creating an experi- new sales tax traps retailers that deployed immersive tor, insights and analytics, at Landor “Future bricks-and-mortar desti- ence that’s less retail store and more in-store experiences, touchscreen dis- & FITCH. nations will certainly become more like a living room.” plays, selfie-walls and virtual-reality If you believe the future is already hybridised. In the future we expect to There’s no doubt that future stores Download your free headsets perhaps thought the same here, but just not evenly distributed, see brands shift stores towards studio will have to provide more non-phys- Download your free thing when the pandemic hit. take a walk around Burberry’s first concepts where retail space becomes ical services above and beyond prod- guide from here: Germaphobic, socially-distanced, social retail store, which recently media,” says Antony Parham, execu- uct sales. A glimpse of the future can guide from here: coronavirus-conscious consumers opened in Shenzhen, southern China. tive creative director at Imagination. be seen with Jeff Bezos’s latest gro- have put the dampeners on touchy- This will give you a flavour of the store Certainly, the touch-free store of cery format. At Amazon Go in Seattle https://bit.ly/2JbxImE feely retail. When it comes to the store of the future. With a specific pro- the future will be heavy on so-called sensors and tracking mean customers https://bit.ly/2JbxImE of the future, right now, touch-free gramme on WeChat, the country’s c-commerce – curation, content, con- can walk in the store, purchase and innovative shopping experiences are most popular messaging app, custom- venience and connections. Nike and walk out again without queuing using Or you can scan where it’s at. ers can click on exclusive content and adidas lead the way with their concept cashierless technology. Or you can scan Luckily, some businesses are personalised experiences in-store, stores, using people’s personal smart- While Amazon Fresh in Los Angeles the QR code already half-way there in reimagin- then share details with friends. No phones as the conduit, connecting has Alexa kiosks placed around the the QR code ing bricks and mortar, as lockdowns touching is needed. customer profiles and in-store activity. grocery store. Customers can then ask in many countries have forced brands Every item in-store has a tag with a Geo-location, 5G speeds, QR codes product-related questions, recom- Burberry to deploy a digital-first approach at QR code, scan them for more storytell- and data are the new fuel in this mendations and meal inspirations, as speed. As stores reopen there’s an ing. Each customer is also given a play- space. What was once gimmicky will if they were talking to a friend. opportunity to create new experi- ful animal character via Snapchat that be more purposeful and only be uti- the customer journey,” says Michelle it far more accessible for customers “In a time where human contact ences using data, shopper profiles evolves as they walk around the store. lised if it drives engagement. Du-Prât, executive strategy director to achieve a VR experience. In the is still valued and not always viable, and artificial intelligence to elevate The gamified experience takes retail “Right now, richly immersive expe- at Household. near future, brands may need to start Amazon is utilising its voice tech- high street spaces to the next level. to another level. The more that cus- riences are being trialled and iter- The big question for physical retail thinking about hiring games design- nology to act as a personal shop- “The inter-relationship between tomers engage with this form of aug- ated more quickly and the exciting in a COVID-conscious world, where ers to create these interactive vir- per. Going forwards, voice technol- physical and digital retail will con- mented retail, the more rewards they part is that innovation is here to stay. the touchy-feely bit is not exactly tual experiences,” says Naji El-Arifi, ogy will be embraced in future retail tinue to grow, and COVID-19 is get through Burberry’s social currency. It is also evolving into every part of top of mind, is what is it aiming to head of innovation at Wunderman experiences for this reason,” says achieve? Using digital 3D avatars to Thompson Commerce. Household’s Du-Prât. try products in-store before purchas- “A completely contactless experience ing, as used by Shiseido, or virtual for consumers will be part of the store SHARE OF DIGITAL IN-STORE TECHNOLOGIES RETAILERS ARE USING make up via augmented reality as of the future. Just look at biometrics in In Europe in 2019 Already rolled out Likely to roll out in the next year Currently trialling deployed MAC Cosmetics, or magic China. Alipay now allows customers mirrors, are good to have, but they’re to use Smile to Pay, utilising facial rec- unlikely to be game-changers. ognition, which means customers pay Interactive digital signage 78% 17%1.92 5% “Retailers must not rely too heav- without touching anything.” ily on the digital connection. The Richly immersive The touchless store of the future Mobile app customer offers 75% 18% 5% need for a well-considered, engag- experiences are will definitely rely on more per- ing and forward-thinking shopping sonalisation using similar tactics Location-based marketing 66% 18% 16% environment that can adapt and being trialled and deployed online. Nike is at the fore- change will play a major role in the front of this approach. Its Berlin In-store analytics iterated more 52% 37% 8% survival of bricks and mortar,” says flagship boasts a giant media wall, Invisible payments (such Ewald Damen, creative director at quickly - innovation with images, livestreaming, social 45% 29% 20% as at the Amazon Go store) Virgile + Partners. is here to stay media and product information. Especially when so much more to do Using 3D cameras, in-store tech- Digital tools to assist store 44% 34% 17% associate services with retail can be done in the comfort nology recognises shoppers as they of your living room. For instance, the arrive and accesses customer data In-store navigation on mobile app 39% 32% 17% new iPhones and iPad Pros all come via the Nike app. with LiDAR, or light detection and In fact, the physical store accessed “Personalised content about Smart-fitting rooms/mirrors 34% 17% 24% ranging sensors. These can assist in via a video-conferencing link, such recently viewed items and stock avail- scanning customer sizes much more as Zoom or Microsoft Teams, could ability is then posted to the media Self-service checkout 33% 31% 24% accurately at home. There’s no need soon be coming to a store near you. wall, with push notifications and tai- for a physical store. It’s an easy enhancement, it’s touch- lored offers available on the app and Augmented reality 19% 22% 30% “Virtual reality, on the other hand, free and could assist time-poor shop- in-store,” explains Elliott Jacobs, could be used to give consumers pers with a busy schedule, those who director for agency and commerce Virtual reality 11% 19% 34% the in-store experience from home. are anxious on the high street or with consulting at LiveArea. And you don’t WBR Insights 2020 Devices like the Oculus Quest 2 make health concerns. need to touch anything.