RBTE: News from the Retail Expo 2016 - PierhouseRBTE: News from the Retail Expo 2016 ... in-store...

RBTE: News from the Retail Expo 2016O n t h e 9 t h – 10 t h M a rc h 2016 r e ta i l e r s f r o m a c r o s s t h e w o r l d g a t h e r e d f o r Eu r o p e ’s b i g g e s t r e ta i l sh o w. T h is y e a r ’s e ve nt s a w o ve r 350 e x h i b i t i n g co m p a n i e s sh o w ca si n g r e ta i l te c h n o l o g y, r e ta i l d i g i ta l s i g n a g e a n d r e ta i l d e si g n e x p e r t is e .

H e r e ’s o u r a n n u a l r o u n d - u p o f t h e ke y t h e m e s f r o m t h e sh o w a n d t h e m a i n is su e s d o m i n a t i n g t h e r e ta i l a g e n d a i n 2016 .

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Convenience is KingCustomer attitudes and perceptions are rapidly changing and retailers cannot afford to standstill. The word convenience is something that we hear a great deal about. It’s a key driver for what makes the modern consumer tick. However this term has evolved and where it was once about proximity to services, this is no longer the case. Today it’s not just about being based close by to a product that will make someone make that purchase, but it’s about the entire shopping experience from the first digital engagement through to accessing the store, selecting products, paying and leaving. In essence it’s about stress-free shopping. Get this process right and you will succeed in the digital age, but ignore it and you stand to lose out to the competition.

Terry Duddy, Non-Executive Director at Debenhams and former CEO of the Home Retail Group explored how consumers have changed their habits to become more selective, less

loyal and very digital savvy, often making price comparisons and exploring products outside the store environment. However while many may see this as a sign that in the future the store will become obsolete, Duddy believes that it will remain an essential element of the retail mix. With 87% of sales still made in-store online penetration has a large gap to close, yet retailers need to think digitally in order to understand the new generation of shoppers. “The store has an important role to play. But today we must be a digital company… with stores”.

Simon Roberts, Managing Director of Boots, believes that “in a world moving faster and faster, the speed of convenience won’t be the differentiator, the individual connection with the customer will be the point of difference – it’s the customer experience which creates value.” This level of consumer understanding will be crucial to unlock, especially as the millennials grow their influence and new generations emerge.




The digital revolutionOmnichannel is now a given and retailers need to understand the dynamics to tailor experiences to suit the customer. David Wild, CEO of Domino’s Pizza, made the point, “The world has not changed…it’s changing”, emphasising the need to move with the consumer and always be on the lookout for new ways of doing things and opportunities for innovation. However there is no point introducing something new for the sake of it – retailers need to be relevant and fully engaged with their audience. “Think how the digital natives view the world and deliver an experience to match that rather than create a process and expect customers to follow it.”

Jamie Purser, Category Manager at PC World, believes that it is the “consumerisation of IT” that needs to be understood. People will get behind good technology that serves a purpose, but a poor IT implementation will drive customers away. Data gathered from online customers provides such great insight into buying behaviour and preferences. The challenge is now to develop that understanding for in-store customers in order to take personalisation to the next level.

Natasha Toothill, Director of Retail Engagements Visa Europe, also made the point “Modern retail is about change – the revolution is underway and organisations are facing a rapid digital transformation”. The challenge is how to target consumers in this ‘connected world’ in a society where people are increasingly reliant on mobile technology.

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The store of the futureThe RBTE expo hall showcased a number of exciting innovations, giving a glimpse of what customers can expect in the future. Retailers need to focus on providing inspiration, better navigation, quick and convenient transactions and excellent fulfilment. Recognising customers as individuals as soon as they set foot into the store and offering personalised interactions will be key, and as Luke Jensen former Group Development Director of Sainsbury’s commented, “Check-in will be the new check-out”. This will not only drive sales but will also help to reduce operational costs.

Online customers are a crucial part of the buying process as those that begin online and come into the store often tend to spend more than store-only customers. However those who remain exclusively online are significantly more expensive to service and are much less likely to make impulse purchases. Therefore retailers need to constantly find new ways to attract people to their stores.

Lots of time was dedicated to the discussion of augmented reality, 3D printing, QR codes, in-store gamification, beacons and RFID. Many retailers are investigating these areas and there are a number of trials underway. However the key message was that whatever the technology, the customer must always be at the heart of change. It needs to serve a purpose for the consumer, be that as part of enjoying the shopping experience, getting a better level of customer experience, gaining a deeper product knowledge or having access to more inventory information.

Many retailers are still to be convinced about the adoption of certain types of technology. Oliver Meakin, CEO at Maplin said about the idea of replacing in-store staff with robots, “I struggle to see artificial intelligence taking on a big role in retail in my time as an executive.”

However he does see that “service and advice is not just about store colleagues. It is about every interaction that a retailer has with customers depending on their shopping mission. Ultimately, every retailer will be able to offer every fulfilment option that a customer needs. Fulfilment is not going to be a differentiator in the future.” The customer experience will be far more important for winning market share than simply getting products to customers.

“Innovate but maintain focus on day to day”

Luke Jensen former Group Development Director, Sainsbury’s

“Check-in will be the new check-out”

Luke Jensen former Group Development Director, Sainsbury’s

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Differentiate or dieRetailers need to embrace change, not resist it, but with so many items competing on the agenda, prioritisation is key. The speed of response and an urgency to change is imperative. Simon Roberts, Managing Director of Boots commented “To break the mould we now have to learn to fail fast and learn how to do stuff that we haven’t done before”. Partnerships and innovation are to be important differentiators.

This was emphasised by Luke Jensen when he said “partner with vendors to help create a funnel of ideas”. Embracing change and growing core competencies will help to gain market share. As David Wild, CEO of Domino’s Pizza said “update the company’s infrastructure boldly”. You should not be bound by legacy systems but instead should partner with experts and implement agile technology where components can work together for total real-time retail.

Unlocking insight from dataThere was shared opinion that data must be used to fuel retail growth. RBTE panellists felt that the term big data was created by IT people to scare other departments, but that data itself is not something to be feared, but rather something that retailers must crack. It is now the only way to stay competitive and as Luke Jensen commented “Data driven businesses will be the norm”. It is the only way to ensure that a brand resonates across all touch points.

Final thoughtsIf there is one takeaway message from this year’s show it is about convenience and making it easier for customers to buy. This links all areas from investments in the right retail technology, through to development of customer service, the evolution of payments, the need for data security and driving customer loyalty. Big data and digital technology are key to unlocking customer perceptions and buying preferences in order to shape retail of the future. The customer is King and are making decisions for themselves. Retailers must always be relevant in what they offer in order to stay competitive.

“The store has an important role to play. But today we must be a digital company…with stores”

Terry Duddy Non Executive Director, Debenhams

RBTE: News from the Retail Expo 2016 - PierhouseRBTE: News from the Retail Expo 2016 ... in-store...

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