the new retail reality - barclays€¦ · ways to shop – which are enabled primarily through...
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The new retail reality
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Contents3 Executivesummary
5 TherapidevolutionoftheUKhighstreet
8 Thenewconsumergeneration
11 Thenewwaveofretailtechnology
15 AfterBrexit:retail’snewplayingfield
18 Casestudies
20 Conclusion
22 Abouttheauthor
23 AboutthisresearchInteractivereport
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Executive summaryTheUKhighstreet:ahotbedofopportunity.
ForretailersacrosstheUK,thequestionofwhethertoinvestinhigh-streetstoreshasneverbeenmorechallenging.
Therapidriseofdigitalretail
Ontheonehand,onlinesalescontinuetooutpacetheriseinoverallretailsales.Furthermore,withexpectationsshapedbycompaniessuchasASOS,customersareclamouringforretailerstoprovidemorepersonalised,hyper-convenientwaystoshop–whichareenabledprimarilythroughdigitalchannels.1
Usingstorestoconnectwithcustomers
Ontheotherhand,aphysicalstorewillalwaysbeavitalchannelthroughwhichretailerscanfosteramoreintimaterelationshipwithcustomers.Theimportanceofface-to-faceinteractionindeliveringasatisfyingcustomerexperiencehashelpeddriveanumberofonline-onlyretailers,includingAmazonandAlibaba,toventureintorealestateforthefirsttime.2
Lowconfidenceisstiflinginvestment
Formanyretailers,though,therapidgrowthindigitalshoppingcouldleadtophysicalstoresbeingviewedasuneconomicalorevenredundant.Atthesametime,therecentincreaseinstorevacanciessuggeststhattheBrexitvotehascompoundedretailers’hesitancetoinvestinopeningnewstoresandimprovingexistingones.3
YetBarclays’surveyofover2,000UKconsumersrevealsthatdemandforavibrant,diversehighstreetremainsstrong.Ourresultssuggestthatthosethatsettheirshopsapartfromtherest–usingdigitaltoenhancethein-storeexperience–standtowinagreatershareofconsumers’mindsandwallets.
1https://www.marketingweek.com/2014/10/22/can-asos-blaze-a-trail-in-personalising-online-retail/2http://www.forbes.com/sites/greatspeculations/2016/02/11/why-would-amazon-open-physical-stores/#93255043a1ab3http://www.spring-board.info/benchmarks/
Theimportanceofface-to-faceinteractionindeliveringasatisfyingcustomerexperiencehashelpeddriveanumberofonline-onlyretailerstoventureintorealestateforthefirsttime.2
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Inthisreport,weshareinsightsfromourresearchtohelpretailersofallsizesdevelopastrategyencompassingbothdigitalandbricks-and-mortarstores.Thekeypointscoveredare:
Consumersstillwanttoshopin-store,despitethegrowthinonlinesales
Insharpcontrasttotheviewsofsomecommentators,oursurveyshowsthattheBritishhighstreetisaliveandwell.Shopperssaytheyaremorelikelytovisitthephysicalstoresofnationalandlocalretailersoverthenext12monthsthanshopwiththemonline.Manystillvisittheirlocalhighstreettobuygroceries(46%)orsimplytowindowshoporbrowse(27%).
Furthermore,mostconsumersstillhaveaclearneedtoseecertainitemsinpersonbeforemakingapurchase:63%ofrespondentssaythereisalimittotheamounttheywouldspendonlineonanexpensiveitem.
Retailersmustdomoretoquenchshoppers’thirstfordiversity
Whileconsumerscontinuetovisitandenjoytheirlocalhighstreet,theyclearlybelievethatthereisroomforimprovement.Inparticular,oursurveyshowstheyarecryingoutforawiderrangeofvibrantanddiversestores.Agreaterproportionofrespondentssaytheirhighstreethasdeclinedoverthepastthreeyears(45%)thansayithadimproved(22%)–andthenumberonereasontheygaveforthatdeclinewasthatthevarietyofstoreshaddecreased.Thetopthreetypesofoutletsthatcustomerswouldliketoseemoreofareindependentspecialistretailers,independentcafesandrestaurants,andboutiquestores.
Cleveruseofdigitaltechnologycouldhelptodrivefootfall
Astheyseektoreinventthein-storeexperience,retailersmaywanttoexperimentwithdigitaltechnologies.Morethanhalfofrespondentssaythattouchscreenfeatures(65%)andsmartfittingrooms(57%)wouldmakethemmorelikelytovisitastore,whilemobileandcontactlesspaymentsareviewedasusefulratherthan‘justanothergimmick’.Theresultsalsorevealagrowinginterestinnewertechnologiessuchasaugmentedandvirtualreality.
Empoweringcustomerstousetheirmobiledevicesinstores–forexample,toreceiveinformationaboutspecialoffersfrombeacons–couldbeparticularlyvaluableforretailers:oursurveyshowsthattheuseofmobilechannelsissettogrowsteeplyoverthenext12months.
ConsumersremaincommittedandloyaltoBritishretailerspostBrexit
Forsomeretailers,theeconomicuncertaintycausedbyBrexitmayhavedampenedenthusiasmforinvestinginphysicalstores.Yetourresearchindicatesthatconsumerfaithintheretailsectorremainshigh:overhalfbelievethatBritishretailerswillhelpthecountrywithstandtheeconomicuncertaintyofBrexit.And65%believewehaveadutytosupportBritishretailersandBritishgoodsaftertheBrexitvote.
Inaddition,notwithstandingtherecentdipinconsumerconfidence,just22%ofconsumerssaytheyfeellesslikelytodaytospendmoneyonbig-ticketitemsthantheydidbeforeBrexit.
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The rapid evolution of the UK high street Despitetheriseofdigitalshopping,thereisfirmconsumerdemandforawell-functioningandwell-looked-afterhighstreet.
TheUKconsumerhasbeenkeytorecenteconomicgrowth.Followingaperiodofpost-crisisstagnation,retailspendinghasbeengrowingsteadilysince2013–supportinganexpansionineconomicactivityandemploymentgrowth.In2015,retailsalesvolumesroseby4.3%–an11-yearhigh–withoverallhouseholdspendingincreasingby2.8%.4
Sweetspotforconsumers
Largely,thisisbecausethepasttwoyearshavemarkeda‘sweetspot’forUKconsumers:sentimentandrealspendingpowerhavebeenboostedbycheaperenergy,risingemploy-ment,near-zeroinflation,retailerdiscounting,slightlyfirmerearningsgrowth,wealtheffectsfromrisinghouseprices,andaseventhsuccessiveyearofrecord-lowinterestrates.
Ashiftinshoppingbehaviour
Thegrowthinconsumerspendinghasnot,however,beenuniformacrossallretailsectors.Wecanseeevolvingconsumerhabitsandtechnologicalchangedrivingashifttowardsonline,convenienceanddiscountchannels.
Broaderspendingdataalsopointtoashiftinthepatternofconsumers’discretionaryspending,withagreaternumberofhouseholdsoptingtofocusonexperiences–entertainment,eatingoutandholidays–ratherthanclothing,electronicsandotherhouseholdgoods.
ChangingfaceoftheBritishhighstreet
Together,thesetrendshavedisruptedthe‘traditional’Britishhighstreet:
New arrivals Alongsideanumberofbig-namecasualties,traditionalmainstayssuchasbookshopsandnewsagentshavegivenwaytoconveniencestores,charityshopsandpoundshops.
Polarised growth of discounters and higher-end retailers Thesenewentrantshavemadeconditionsparticularlytoughforoperatorsinthemiddle-marketsegment,withfiercepricecompetitionfromonlinecommercefurthersqueezingprofitmargins.
4http://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/july2016
UKretailsalesvolumes(Index:2013=100)
85
90
95
100
105
110
115
Jan-0
6Jul-0
6
Jan-0
7Jul-0
7
Jan-0
8Jul-0
8
Jan-0
9Jul-0
9
Jan-1
0Jul-1
0
Jan-1
1Jul-1
1
Jan-1
2Jul-1
2
Jan-1
3Jul-1
3
Jan-1
4Jul-1
4
Jan-1
5Jul-1
5
Jan-1
6Jul-1
6
Source:OfficeforNationalStatistics,RetailsalesinGreatBritain:August2016.
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Empty spaces Vacancyratesalsoremainhigh,reflectingatrendofdeclineinthenumberofretailstoresandinconsumerfootfall.AccordingtotheBritishRetailConsortium/SpringboardFootfallMonitor,high-streetstorevacanciesnationallyaccountedfor10.1%ofthetotalnumberofoutletsinJuly2016–a15-monthhigh.5TheworstaffectedareasarethenorthofEnglandandYorkshire,witha15.8%vacancyrate.6
Despitethisdisruption,oursurveyshowsthatdemandforadiverse,well-maintainedhighstreetremainsstrong:81%ofshoppersarelikelytouseanationalretailer’sphysicalstoreoverthenext12months,and77%areplanningtovisitalocal/independentretailer,makingthesethesecondandthirdmostpopularshoppingchannels.
5http://www.spring-board.info/benchmarks/6http://news.sky.com/story/shop-vacancies-rise-above-10-in-town-centres-10537295
Yettheresultsalsoshowthatthereisarealneedtoinjectinnovationandenergyinthehighstreet.Almosthalf(45%)ofshoppersfeelthattheirlocalhighstreethasworsenedoverthepastthreeyears,andthissentimentisparticularlystronginthenorthofEngland–potentiallyreflectingthehighvacancyrateintheregion.
“Asaretailbusiness,it’sreallyimportanttostandforsomething–you’vegottohaveapointofdifference.IlookatanumberofretailerstodayonthehighstreetandIthinksometimesthosepointsofdifferencearen’tstrongenoughinthecustomer’smind.”
Simon Belsham,CEO,Notonthehighstreet.com
Themaincriticismisadeclineinthevarietyofstores,whilemorethanathirdofshoppersalsonoteadeteriorationincleanlinessandgeneralappearance,andthatitis‘justlikeanyotherBritishhighstreet’.
Amongthosethathadseenanimprovement,alargervarietyofstoresandbettercleanlinesswerethistimeidentifiedasthebiggestpositivechanges.Thisimpliesafairlydiversepatternacrossdifferentneighbourhoodsandregionsandawideningdividebetweenmoreprosperousareasandless-advantagedretailpockets.
Thinkingback overthepastthreeyears,doyoufeelyourlocalhighstreethasimprovedorgotworse?
Got significantly worse
Got worse
Don’t know
Improved
Significantly improved
No change
4%3%
18%
30%
33%
12%
44%
43%
39%
22%
20%
18%
18%
16%
15%
14%
11%
11%
9%
It is cleaner/smarter
Larger variety of stores
More cafes and restaurants opening up
More discount stores available
There is more to do in the evening
Availability of locally sourced produce
You are made to feel welcome to browse
Higher-end/luxury brands opening in our area
It feels more ‘villagey’ or authentic to the area
It feels safer
Availability of produce from foreign countries
More health and beauty services
Fewer discount stores available
Whatspecificthings doyoufeelhaveimprovedoverthepastthreeyears?
Thedrawofcafeculture
Oursurveyalsosuggeststhatcafecultureisreshapingthehighstreet,withoneinfourconsumersvisitingacafeorcoffeeshopdaily.Anincreaseinthenumberofcafesandrestaurantsisidentifiedasapositivefactorby39%ofthosewhohadseenanimprovementintheirlocalhighstreets.
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Theretailandhospitalityoutletsconsumerswouldliketoseemoreontheirhighstreet
Charity shops
13%
Art galleries
11%
National retail chains
20% 23%
Cinemas, theatres orentertainment venues
CINEMA
17%
Chain cafes and restaurants
CAFE
Discount stores
29%
Independent specialist retailers
44%
Independent cafes and restaurants
36%
Restaurant
National supermarkets
24%
Boutique stores
28%
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32%
33%
47%
25%
13%
21%
12%
12%
31%
19%
53%
27%
14%
25%
9%
10%
36%
26%
49%
24%
6%
20%
9%
14%
22%
18%
55%
13%
6%
18%
14%
21%
30%
21%
39%
20%
10%
16%
19%
14%
Wider variety of products
Products that are better suited to my personal taste/needs
Better value
Better online shopping experience
It’s easier to return items after I’ve purchased them
More frequent sales/discounts
Pleasant environment inside the store
Loyalty schemes
Personal electronics
Clothing Health and beauty
Groceries House and garden
The new consumer generation Bettervalueandfastdeliveryarekeytodrivingcustomerloyalty,whilein-storetechholdsthepotentialtodrivefootfall.
Inrecentyears,thebalanceofpowerhasshiftedfromretailerstoconsumers.Thesluggishrecoveryfromtheglobalfinancialcrisishasengenderedamorecautiousandprice-sensitivebuyer,whoseshoppinghabitshavebeentransformedbyecommerceandtheincreasingproliferationofdigitalandsmartdevices.
Better-informedconsumers
Thegrowthofsocialmediaandprice-comparisonsiteshasallowedconsumerstomakeinformedpurchasingdecisions,erodingbrandandretailerloyalty,whilecreatingamorepolarisedenvironmentofdiscountretailers(formostbasicitems)andhigher-end,premiumretailers.
Shiftingallegiances
Asonlineshoppinghasrevolutionisedtheconvenienceofretail,sobuyershavealsodisplayedanincreasingtendencytoswitch–bothintermsoftheretailerandthetypeofshoppingchannelused.Withm-commerceenablingshopperstocomparepricesofalmostanyproduct,andwithpeerreviewsonsocialmediaempoweringthemfurther,theconsumerhasmorechoiceandinformationthaneverbefore.
Switchingmightbemoreprevalentthaninthepast,butoursurveysuggeststhatUKconsumersretainadegreeofallegiance,witharound71%ofshoppersusingbroadlythesameretailersastheydidthreeyearsago.
Manyfactorscouldaccountforthis,suchasthedominantpositionofincumbentretailers,concernsoveronlinesecuritywhenitcomestolesswell-knownretailers,andtheroleofretailerloyaltyschemes(whichdespitehavinglostsomeoftheirpotencystillappeartobeanimportantconsiderationforasizeableminorityofshoppersinoursurvey).
Ifyoumostlybuyfromdifferentretailersnow,whatmadeyouswitch?
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Thatsaid,forthoseconsumersthathadswitched,thesearchforbettervalueiscitedby49%asthemajorfactordrivingthischange(thefrequencyofsalesanddiscountingalsorankhighly).Amongthosethathadn’tswitched,priceisalsothemainfactorthatmightpersuadethemtohotfootitelsewhere.
Socialmedia:agrowingchannelforcustomercomplaints
Comparedwiththreeyearsago:
• Thenumberofconsumerswhooptforsocialmediaasachanneltoqueryorcomplaintoretailershasincreasedfivefold
• Consumersarefivetimeslesslikelytosendphysicalposttoqueryorcomplaintoretailers.
Hyper-convenienceanddeliverydemands
Alongsidetheconstantpressureonretailerstomeetbuyerexpectationsonprice,theabilityforcustomerstoshopanytime,anywherehasledtogrowingdemandonretailerstoraisetheirgameinotherareas.
Intheconvenienceeconomy,whereon-demandservicesarebecomingincreasinglyprevalent,moreshoppers(andparticularlythemillennialgeneration)areexpectingbusinessestobe‘alwayson’,regardlessoftheirsizeorlocation.
Onabroadlevel,thisexplainstheshiftfrombig-box,out-of-towngrocerformatstosmaller,centrallylocatedstoreswithatargetedproductrangesupplyingpreparedfoodsandimpulsepurchasestosatisfyshoppers’moreimmediateneeds.
Thishyper-convenienceshiftisalsoalteringexpectationsformoreservice-orientedretailprocesses.Throughsocialmedia,consumershavebecomeaccustomedtoreceivingapromptreply.
Meanwhilearecurringthemeofrecentyearshasbeenretailers’logisticalstruggletokeeppacewithrapidgrowthinonlinedemandandfulfilment.Almostthreequartersofshoppersinoursurveysaythattheywouldbemorelikelytobuyitemsfromaretailerthatcouldguaranteedeliveryinaveryshorttime.
Moreretailersareexperimentingwithinnovativewaystomakedeliverybetter,cheaperandmoreconvenient.Click-and-collectservicesareexpandingrapidlyintolocalnewsagentsandevenundergroundstations,andself-servicelockersand‘clothingpods’(cubicleswherecustomerscancollectclothestheyorderedonline,trythemon,andimmediatelyreturntheitemsiftheyaren’thappy)arealsoemerging.
Howsoon
“Ittookretailersalittlewhiletograspthatinaworldofdigitalretail,whereyouaretransactingwithoutastore,thesupplychainisthecustomerexperience.”
Lucy Larkin,retailexpert,Accenture
docustomersexpectretailerstorespondtoacomplaint?
Iexpectsmallorindependentretailerstorespondasquicklytoacomplaintasalargernationalretailer
IfImakeacomplaintonsocialmediaorviaemail,Iexpectretailerstorespondwithinanhour
30% 35% 23% 10% 2%
10% 28% 36% 19% 8%
Stronglyagree Slightlyagree Neitheragreenordisagree
Slightlydisagree Stronglydisagree
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Genderdivide:theshoppinghabitsofmenandwomen
Oursurveyrevealsthefollowingdifferencesbetweenmenandwomenintheironlineshoppinghabitsandloyaltytoretailers.
• W omenaremorelikelythanmentohaveswitchedretailersoverthepastthreeyearsforhealthandbeauty,groceries,andhomeandgarden
• Men aremorelikelythanwomentosaythat‘bettervalue’wouldencouragethemtoswitchretailers–acrossallproductcategories.Bycontrast,womenaremorelikelythanmentomovetoretailersthatofferawidervarietyofproductsandproductsthatarebettersuitedtotheirtastesandneeds
• Mor ewomenthanmensaytheyarelikelyorverylikelytousethefollowingchannelsoverthenext12months:theonlinestoreofanationalretailer(66%womenvs54%men);themobile/tabletappofanationalretailer(39%womenvs33%men);andanonlinemarketplaceforindependentretailers(36%womenvs30%men)
• W omenarefarmorelikelythanmentosaythatasmartfittingroomwouldmakethemwanttovisitastore(66%womenvs52%men).
Personalisingtheexperience
Wecanexpectthetrendtowardspersonalisationtocontinue,driveninpartbyrisingconsumerdemandformorecustomisedservicesandproductchoice,butalsoincreasinglybythecollectionanduseofpersonaldata.
Beaconswiththeabilitytoreceivedataandtransmitpersonalisedmarketingtoindividuals’mobiledevicesaresteadilyincreasingtheirpresenceonmajorhighstreets,whilesocialmediaactivityandsearchhistoriesofferscopeforthemarketingofgoodsorbrandsbasedonalgorithmsaroundpersonalinformation.
Tosomeextent,thissortofintelligenceshiftsadegreeofempowermentbacktotheretailer,buttheintensifyingcollectionanduseofdatawillalsoheightenconcernsoverpersonalprivacy.
Oursurveypointstoconsiderableinterestinpersonalisation,butalsoraisesanoteofcaution:whilearoundhalfofshoppersthinkmorepersonalisedretailservicesandrecommendationscouldmakethembuymoreataspecificretailer,lessthan10%believeitwouldhaveasignificantimpactontheirlevelsofspending.
To a great extent
44%
24%
8%
8%
6%
To some extent
47%
47%
38%
42%
36%
Ability to check online whether a local store has a product in stock
Ability to deliver items in a very short time frame
Online service providing personalised advice from experts, based on your stated tastes and preferences
Automatically generated recommendations, based on purchase and search history online
Relevant content
Pleaseindicatetheextentto whichtheavailabilityoftheseserviceswouldmakeyoumorelikelytobuyitemsfromthatspecificretailer
“Socialmediahascompletelychangedthewaycustomersbehave.It’sremarkable,really,howalotofourpiecesaresoldbecausesomeoneonInstagramwaswearingit.”
Connie Di Gennaro, ChiefCommercialOfficer,Wolf&Badger
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The new wave of retail technologyAhybridchannelthatblurstheboundariesbetweenonlineandbricksandmortarisgaininggroundinUKretail.
Massivesmartphonepenetration,next-generationbroadbandandtheriseofshoppingappshaverevolutionisedpoint-of-saleretaildecisions.Oursurveysuggeststhatanewwaveoftechnology-ledchangeisonitsway.
Thedriveonline
Inrecentyears,wehaveseenonlinesalesrecordingrobustdouble-digitgrowth–faroutpacingtheriseinoverallretailsales.Oursurveyshowsthatonlinestoreswerethemostcommonlyusedretailchannelsoverthepastyear.
TheUKisalreadyamongtheworld’sleadingecommercecountries,withonlinesalesaccountingfor14.2%ofallretailtransactionsinJuly2016.7Comparablecountryestimatesofonlinesalesvary,buttheUKaccountedfor31%ofallEUonlinesalesin2015,wellaheadofGermany(19%)andFrance(13%).8Furthermore,theOfficeforNationalStatisticsestimatesthat77%ofUKadultsboughtgoodsorservicesonlineoverthepast12months.
Overthepastfewyears,onlineretailhasbecomethedominantdriverofretailsalesgrowth.9TheUKhasoneofthehighestsharesofonlinespendingintheworld,10andisbysomemarginthelargestecommercemarketinEurope.
30
25
20
15
10
5
0
2007 2008 2009 2010 2011
Online All retail
2012 2013 2014 2015 July 16
16
14
12
10
8
6
4
2
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 July 16
Annualgrowthinretailsales(£mvalue)
UKonlinesalesasshareoftotalretailsales(%)
Source:OfficeforNationalStatistics,RetailsalesinGreatBritain:July2016.
Source:OfficeforNationalStatistics,RetailsalesinGreatBritain:July2016.
Thedriveonlineisclearlybackedupbythefindingsofoursurvey,whichshowthattheonlinestoresofinternet-onlyretailerssuchasAmazonandASOSarebyfarthepreferredshoppingchannel,attracting79%ofrespondentsinthepastyear.Thiscompareswith53%whohaveusedthewebsitesoftraditionalnationalretailers,andjust16%whohavemadeapurchaseattheonlinestoreofamanufacturerorown-brandretailer.
7https://www.ons.gov.uk/releases/retailsalesingreatbritainjul20168ht tp://www.emarketer.com/public_media/docs/eMarketer_eTailWest2016_Worldwide_ECommerce_Report.pdf
9http://www.retailresearch.org/onlineretailing.php10ht tp://www.remarkety.com/global-ecommerce-sales-trends-and-
statistics-2015
“Differentpaymentmethodsthatmakeiteasiertobeoneclickawayfromgettingsomethingareveryexcitingandwilldefinitelychangethewaypeopleshop.”
Connie Di Gennaro ChiefCommercialOfficer,Wolf&Badger
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16
14
12
10
8
6
4
2
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 July 16
30
25
20
15
10
5
0
2007 2008 2009 2010 2011
Online All retail
2012 2013 2014 2015 July 16
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Unstoppablemobile
Overthecomingyears,ecommercewillremainbyfarthedominantchannelofretailsales,driveninparticularbyrapidlyexpandinggrowthinmobiletransactions(m-commerce).AccordingtoeMarketer,UKm-commercesalesrosemorethantwiceasfastastotalecommercesalesin2015andwillcontinuetoeasilyoutpaceoverallgrowthinonlineretail.
Oursurveyalsoindicatesthatdemandisgrowing:whereasamodest17%ofshoppersusedamobile/tabletappofaninternet-onlyretaileroverthepastyear,48%statethattheyarelikelyorverylikelytousesuchachanneloverthenext12months.Ourresearchshowsthatconsumersaremorelikelytovisittheonlinestoreofaninternet-onlyretaileroverthenext12monthsthanthephysicalstoreofanationalretailer.
“Today,paymenttechnologycanexistalmostentirelyinthecloud.Thisenablesretailerstoopenstoresatamuchlowercost,andtobemuchmoreflexibleaboutlocation.”
Lucy Larkin,retailexpert,Accenture
TabletdevicescurrentlyaccountformorethanhalfofallUKm-commercesales,buttherisingpopularityoflarger-screensmartphonesandmorestableandsecuremobilepaymentsystemsaresteadilyshiftingthebalancetowardssmartphones.
OursurveyindicatesthatshoppersviewmobilepaymentoptionssuchasApplePay,AndroidPayandthenewBarclaysPingitappasusefulnewtechnology.Justascontactlesscardshavegraduallyenteredeverydayusage,sotoowillapp-basedpaymentsviasmartphones.
Online store of an internet-only retailer
Physical store of a national retailer
Physical store of a local/independent retailer
Online store of a national retailer
Mobile/tablet app of an internet-only retailer
Mobile/tablet app of a national retailer
Online store of a local/independent retailer
Physical store of a manufacturer/own-brand retailer
Online marketplace for independent retailers
Online store of a manufacturer/own-brand retailer
Mobile/tablet app of a local/independent retailer
Mobile/tablet app of a manufacturer/own-brand retailer
Subscription to an online service that provides regular, scheduled deliveries of household items
83
81
77
60
48
37
42
36
33
30
26
22
17
Likely%
8
11
13
19
13
19
27
27
27
27
23
21
17
Neither likelynor unlikely
%
8
6
8
19
36
42
28
34
36
40
48
53
63
Unlikely%
Howlikelydoyouthinkyou aretouseeachofthefollowingduringthenext12months?
Lingeringconcerns
M-commercewillbeadrivingforceofretailspendingintheyearsahead,althoughoursurveyalsohighlightedanumberoflimitingfactorsforonlinesalesactivity.
Chiefamongtheseisthatconsumersarestillkeentoseeandinspectcertainitemsinpersonbeforefinalisingapurchase.Thisappliesparticularlytomoreexpensiveitemsandproductsthataremorepersonalised(suchasjewelleryorfittedfurniture).Otherconcernsnotedbyourrespondentsincludethetransactionnotbeingsecure,andthepotentialthatthewebsitemaybefraudulent.
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Anewhybridchannel
Withconsumersabletoshopwherevertheyareandwhenevertheywant,thegrowthofm-commerceisincreasinglyblurringtheboundariesbetweenbricks-and-mortarstoresandonlineretail–creatingahybridchannelthatwillcontinuetoexpandandevolve.
“Thepast10yearshavebeenaboutpullingcustomerstoyourplatforms,whetherthat’smobileorweborstore.The next10or15yearsmightbeaboutexisting onotherplatformswhereyourcustomers exist.”
David Thomson,HeadofDigitalProduct,Marks&Spencer
Thishasintensifiedthepracticeof‘showrooming’,wherebyconsumersviewandtestproductsin-storebeforepurchasingonline,whichpresentsafurtherchallengetothehighstreetandisdrivingastrategicshiftamongagrowingnumberofretailerstowardsdevelopingtheirin-storeexperience.
Nowtechnologyshouldbeattheheartofthein-storeexperience.Atagenerallevel,thismayinvolvethedeploymentofWiFi(andpossiblymobile/tabletdevices)forconsumerstouseinstore,mobilepaymentfacilitiesandstore‘check-ins’thatallowretailerstotrackcustomersandofferpersonalisedrewards.
Before buying an expensive item, I would prefer to see it in person to ensure that it lives up to my expectations
Concern about the security of the transaction
Concern that the website is fraudulent
Concern that my personal data might not be stored securely after the transaction has taken place
Concern that the products will be damaged during delivery
Concern that the products might get stolen or lost during delivery
Concern that the vendor might share my data with third parties
63%
43%
33%
21%
19%
16%
14%
Ifthereisalimittotheamountofmoney thatyouwouldspendonlineonasinglepurchase,evenifyoucouldaffordit,whatarethemainreasonswhy?
Theriseofin-storetech
Retailers’ongoinginvestmentsininnovationinclude‘beaconengagement’(whichusesBluetoothtocommunicatedirectlywithpassingandin-storeconsumers’smartphones),smartfittingrooms(cubiclesequippedwithdigitaltechnologiessuchasinteractivemirrors),virtual-reality(VR)headsets,andaugmented-realityoverlaysofastore’sproductrange.
Oursurveyindicatesmixedenthusiasmforthesenewfeatures,manyofwhicharestillintheearlystagesofroll-out.
Perhapsunsurprisingly,thetechnologywithwhichcustomersaremostfamiliar–touchscreen–istheonethatismostlikelytomakethemwanttovisitastore.ThebroadappealofthesmartfittingroomandVRisalsoevident.Bycomparison,augmentedrealityandbeaconengagementreceivemorelukewarmresponses.
Formany,thepersonaltouchisstillviewedasimportant,withlessthanaquarterseeinganyappealincustomerservicerobots.
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13%
13%
12%
9%
8%
3%
To a great extent
44%
44%
53%
43%
37%
20%
To some extent
37%
38%
30%
42%
50%
70%
Not at all
Smart fitting room
Virtual-reality headsets
Use of touchscreen technology in-store
Augmented reality
News about store-specific special offers appearing onyour phone when you walk into, or walk past, that store
Robot customer service representative
Theriseof‘AIcommerce’?
Asbricks-and-mortarstoresadapttothedemandsoftheconnectedconsumer,soonlineretailersareseekingtogainacompetitiveedgevianewtechnologies.
TheInternetofThingsisyettocapturethewiderpublic’sattention,buthome-scanningandWiFi-enabledinstant-orderdevices–suchasAmazon’srecentlylaunchedDashgadgets–reflectthelatestinnovativeattemptbyinternet-onlyretailerstodiversifyandchallengethetraditionalsupermarket/departmentstorespace.
Couldthisheraldthenextwaveof‘artificialintelligence(AI)commerce’asorderingchannelsbecomeseeminglyintegratedintoappliancesandgadgetsthatrespondtothespokenword?
*Aggregateofthenumberofchannelsused,thefrequencyofchanneluseandthelikelihoodofcontinuedchanneluse.
Pleaseindicatetheextenttowhichtheavailabilityofthesetechnologieswouldmakeyouwanttovisitthestore
Extentto whichdifferentregionshaveembracedomni-channelshopping.
Doubtsoverdrones
Thegrowthofecommerceisalsodrivingaracetothedoorstep.Geotaggingofferspotentialforonlinemarketplacestoidentifysellersthatareclosetoabuyer,theoreticallycuttingdeliverytimes,whileGoogleisexploringthefeasibilityofdronedeliveries.12Doubtspersistoverdrones’viability,butinJuly2016AmazonagreedadealwiththeUKgovernmenttotrialitsowndronetechnology.13
Oursurveyfindingsalsosuggestthatthepublicwilltakesomeconvincing,withtwothirdsofshoppersraisingconcernsoverthesecurity,safetyandprivacyofdrones.Andwhileoneinfiveprofessaninterestinusingdroneservicesiftheyweremadeavailable,fewarewillingtopaymorefortheprivilege.
Scotland 54.28NorthEast 51.62NorthWest 54.85NorthernIreland 52.36Midlands 52.75
Wales 57.92EastofEngland 52.62London 62.14SouthWest 51.85SouthEast 55.03
Scotland
NorthEast
London
SouthEast
NorthWest
Midlands
EastofEngland
SouthWest
NorthernIreland
Wales
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12ht tp://www.telegraph.co.uk/business/2016/08/03/google-follows-amazon-into-the-sky-with-drone-delivery-tests/13ht tps://www.theguardian.com/technology/2016/jul/25/amazon-to-test-drone-delivery-uk-government
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After Brexit: retail’s new playing fieldRetailspendinghasheldupwellsinceBrexit,despiteaslideinconsumerconfidence.
ThehistoricdecisionbytheUKtoleavetheEUhasgeneratedhugeuncertaintyoverthemedium-termoutlookfortheeconomy–notleastwithintheretailsector.KeyindustrydriverssuchastheUK’stradingarrangementswithothercountriesandaccesstotheEuropeanlabourmarketinthefutureremainunknown.Itisthisuncertaintythatismostlikelytobeardownoneconomicactivityandconsumerdemandoverthenextfewyears,althoughbroadermacroeconomicdevelopmentsarelikelytoalsoplayapart.
SincetheBrexitvote,mostindicatorsofUKconsumerandbusinesssentimenthaveweakened,althoughthedatahavebeenparticularlyvolatile,withsharpdeclinesinJulybeingfollowedbyafairlyrobustreboundinAugust.TheGfKbarometerofconsumerconfidence14recordeditslargestsingle-monthdeclinefor26yearsinJuly,butithassincerecoveredsomeground.Similarly,surveysofbusinessexpectationsfromtheConfederationofBritishIndustry15(CBI),theOrganisationforEconomicCo-operationandDevelopment(OECD),16alongwiththewell-establishedPurchasingManagers’Index(PMI)17series,alldeclinedtomulti-yearlowsimmediatelyfollowingtheBrexitvote,butmorerecentlyhavebouncedback.
Thisresilienceislikelytoreflecttheboostfromaweakersterling,stimulusmeasuresfromtheBankofEnglandandthefairlyrapidformationofthenewgovernment,whichhashelpedtoalleviatesomeofthemoreacutepolicyuncertainty.
AfterBrexit,which
14http://www.gfk.com/en-gb/insights/report/uk-confidence/15ht tp://www.cbi.org.uk/business-issues/the-economy/business-surveys/
distributive-trades-survey/16https://data.oecd.org/leadind/business-confidence-index-bci.ht17http://www.markit.com/product/pmi
ofthefollowingdoyouthinkwillbecomehardertobuy?
Clothes
33%
Meat and fish
28%Cheese
40%
Wine
55%Exotic fruits
62%
Personal electronics
34%
Luxury goods
42%
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PrivateGDP growth
May 2016 August 2016
2%
1%
2%
1%
2%
3%
5%
6%
3%
2% 2%
1%1%0%
Inflation Employmentgrowth
Unemploymentrate
Averageearnings growth
Household disposableincome growth
Post-votespendingholdsup
TheimmediateimpactoftheBrexitvoteacrosstheretailsectorhasbeenfarmorebenign.Salesvolumeswererobustinsummer,withretailsurveysshowingoptimismaboutcontinuednear-termgrowth.
Thisisentirelyrational.Sincethevote,nothingtangiblehaschangedforconsumersorretailers.Fornow,theUKremainsapartoftheEUandcurrenthouseholdfinancesareunaffected.Inaddition,economicconditionsremainbroadlysupportiveofspending,withsalesactivitysupportedbyemploymentandrealwagegains,expandingconsumercreditandheavyretaildiscounting.
Butcanthisoptimismbesustainedoverthemediumterm?Therearechallengesahead:
• Underlyingactivityintheeconomyhasgraduallyweakenedoverthepastyear.Withmorefiscalausterityplannedandexternaldemandsubdued,theUKwaslikelyontrackforaperiodofweakergrowthirrespectiveofthereferendumoutcome
• Afteralongperiodoflowinflation,pricepressuresaresettorisein2017,astheeffectsoftheoil-priceslumpfadeandaweakersterlingpushesupimportcosts.AsmostgoodssoldintheUKareimported,thiswillsqueezethealready-tightmarginsofmanyretailers–anddampenhouseholdpurchasingpower
• UKbusinesssurveysindicateamarkedpull-backincompanies’investmentandhiringplanssincetheBrexitvote.18Soonerorlater,thiswillweighonoveralldemand,notleastasalready-weakaverageearningsgrowthslowsfurther.
18ht tps://www.theguardian.com/business/2016/sep/21/businesses-scaling-back-investment-plans-brexit-vote-bank-of-england
Consumersremainoptimistic
Ontheupside,oursurveyindicatesthatconsumersbelieveBritishretailerswillsupporttheeconomyinwithstandingtheuncertaintyofBrexit.AslightmajorityexpectthequalityandavailabilityofmostgoodstoremainthesameorimprovefollowingtheUK’sexitfromtheEU.UKhouseholdswillalsoretaintheirstrongappetiteforonlineandhigh-streetspending.
Just22%ofconsumerssaytheyarelesslikelytospendmoneyonbig-ticketitemstodaythantheywerebeforeBrexit.
Theweakerpoundwillprovebeneficialtothetourismsector,boostinglevelsofvisitorspending.Additionally,BrexitcouldcreatearealopportunityforretailerstothinkabouthowtheycancapitaliseontheglobaldemandforBritish-madegoods.
OursurveyshowsthatBritishretailerscouldbeabeaconofhopeinuncertaintimes
55%ofrespondentsbelievethatBritishretailerswillhelpthecountrytowithstandtheeconomicuncertaintyofBrexit.
64%saytheyfeelproudofBritishretailersandtheservicetheyoffertosociety.
63%believethatwhennegotiatinghowtheUKleavestheEU,protectionforBritishretailersshouldbeapriority.
65%agreethatafterBrexitwehaveadutytosupportBritishretailersandBritishgoods.
ChangeinconsensusforecastsforUKeconomyin2017:theBrexiteffect
Source:HMTreasury,ForecastsfortheUKeconomy.
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Betteroff?
Perception
Twiceasmanyrespondentsbelievethatthequalityofgrocerieswillimproveasthinkitwillreduce(28%vs14%).
Morethantwiceasmanyrespondentsbelievethatfoodlabellingwillimproveasbelieveitwillgetworse(26%vs12%).
24%ofrespondentsbelievethattheavailabilityofgoodswillimprove,comparedwithjust12%whothinkitwillreduce.
Overaquarterofrespondents(28%)believethatthepricesofgoodsfromwithintheEUwillrise,whileonly15%believetheywillfall.
22%ofrespondentsbelievethatstorevacancieswillincrease,comparedwith17%whobelievetheywilldecrease.
Respondentsexpectthatexoticfruits,Europeanwines,luxurygoodsandcheesewillbecomehardertopurchase.
Reality
IftheUKleavestheEUandstrikesnewtradeagreements,itcouldleadtoabroaderrangeofgroceriesfromalargernumberofcountrysources.However,theUKwouldhavetoassumeresponsibilityforfoodstandardsthatcoulddifferfromtheharmonisedEUsystem.
ABrexitcouldalsomaketheUKmorevulnerabletopressurefromcountriessuchastheUStolowerfoodstandards(theEUhasfirmlyresistedsuchpressureoverrecentdecades).
A‘hardBrexit’fromtheEU(withtheUKtradingunderWTOrules)mayoffergreaterflexibilitytotheUKparliamenttomodifyorimprovecurrentUKlawsaroundfoodlabelling,manyofwhichhavebeencreatedasaresultofEUregulations.
However,foodimportsfromEUmarketswouldstillbesubjecttotheexistingEUregulatoryframework,implyingapotentialassortmentoflabellingandnutritionalinformationonsupermarketshelves.Furthermore,UKfoodexporterscouldfacehighercostsfromhavingtocomplywithdifferentfoodlabellingregimes.
ABrexitcouldpotentiallyleadtoaninfluxofproductsfromawiderrangeofcountries.YetwhilethismaybroadentheavailabilityofgoodsforUKconsumers,asurgeofcheaperforeignimportscouldhaveseriousimplicationsformanydomesticcompaniesandsectors(suchasUKfarming),whichthegovernmentwouldbeunlikelytoignore.
ItisverylikelythatpricesofgoodsfromtheEUwillrise,inresponsetotheweakertrendlevelofsterling.Thereisalsoastrongchanceofaperiodofhigherglobalcommoditycosts,aswellasthepossibilityoftheimpositionofimporttariffs.
Thenationaltowncentrevacancyrateroseto10.1%inJuly2016,upfrom9.6%inApril2016andthehighestratesinceApril2015.19Thereisareasonableprospectthatthevacancyratewillrisefurther,asweakersterlingraisesimportcostsforretailersandashigherinflationsqueezeshouseholddisposableincomesanddampensdemand.
Certaincategoriesofhigher-endgoodsandfoodanddrinkitemsfromtheEuropeancontinentmay,intime,becomelessreadilyavailable.Thiscouldbeduetohigherprices,potentialdisruptiontoretailers’supplychains,andregulatorydivergenceasnewtradingagreementsarenegotiated.Thesedevelopmentscouldspuragradualshifttowardsgreaterdemand(fromconsumersandretailers)formoreunusualgoodsandfoodanddrinkfromnon-EUmarkets.
19BritishRetailConsortium/SpringboardVacanciesMonitor,July2016.
ImpactofBrexit:consumerperceptionvsreality
Worseoff?
“Weshippedtooveronehundredandfiftycountriesaroundtheworldlastyear.Internationaltradeisstillaverysmallpartofourbusiness,butweknowthatthedemandisthere–sohowdoweencourageandsupportthat?”
Simon Belsham,CEO,Notonthehighstreet.com
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Case study: Mothercare Driving£19.6minunderlyingprofitsbydeliveringanoutstandingomnichannelexperience.
Becomingadigital-firstbusiness
Aspartofitsstrategytobecomea‘digital-first’retailer,Mothercarerecentlyredevelopeditswebsitewithamoremodernlook,improvedresponsivenessandmobileadaptability.Thewebsitenowprovidesshopperswithaseamlessomnichannelexperience.Byenablingcustomerstoshoponanydevice,whileathome,onthemove,orin-store,therefreshedsiteishelpingtofurtherboostMothercare’sUKonlinesales–whichincreasedby15%inthelastfinancialyear.
Bringinginnovationtothehighstreet
Theretailerisalsousingtechnologytoenhancetheexperienceofshoppinginitsphysicalstores.“Inourrefittedstores,everycustomeradvisorhasaniPad,andoneintwocustomeradvisersinourotherstores,”saysChiefFinancialOfficerRichardSmothers.“Theyusethemtohelpcustomersfindtheproductstheyneed,checkstockandcompleteorders.”The‘Web-EnabledStores’initiativehasbeenaphenomenalsuccess,with40%ofMothercare’sonlinesalesbeinggeneratedviathischannel.
Anothernewintroductionise-receipts,whichhasgivenMothercarevaluabledatathatcanbeusedtofosteramorepersonalrelationshipwithitscustomers.“Wenowhave2.4millioncustomersinourdatabase,”saysSmothers.“Thisprovidesarichsourceofinformationtohelpusservethemmoreeffectively.”
Creatinganemotionalconnectionwithcustomers
Mothercare’snewapp,whichhasbeendownloadedover975,000times,isoneexampleofhowthefirmisusingdigitaltoservecustomersmoreeffectively.Theappprovideshelpfulvideos,awhitenoisedevice,acontractionstimerandanaugmentedrealityfeaturethatenablescustomerstoscanproductsinacataloguetogetmoreinformation.
Enhancingthein-storeexperience
Whilethefirm’sonlinesalescontinuetoincrease,Mothercarerecognisesthatcustomersstillwanttovisittheirstores.“Storesprovideanimportantenvironmenttointeractwith,serveandadvisecustomers,”explainsSmothers.“Wehaverecentlyintroducedcoffeeshopsandplayareasinourlargershops,whichareincreasingcustomerdwelltimes.Feedbackhasbeenverypositive.”
It’sclearthatMothercareisreapingthebenefitsofitsinvestmentinomnichannel.InMarch2016,thefirmannouncedanunderlyingpre-taxprofitof£19.6m.
AccordingtoSmothers:“Omnichannelremainsastrategicobjectiveofthebusinessandourapproachwillcontinuetoevolveovertimeasweidentifyhowwecanbestserveourcustomers.”
AboutMothercare
MothercareisoneoftheUK’sbest-knownretailers.Establishedin1961,thechainnowhasover1,300storesworldwide,specialisinginproductsforexpectantmothersandingeneralmerchandiseforchildrenuptoeightyearsold.
RichardSmothersChiefFinancialOfficerMothercare
“Wenowhave2.4millioncustomersinourdatabase.Thisprovidesarichsourceofinformationtohelpusservethemmoreeffectively.”
Richard Smothers,ChiefFinancialOfficer,Mothercare
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Case study: Notonthehighstreet.comConnectingcustomerswith5,000independentretailers.
Notonthehighstreet.com(NOTHS)istheUK’sleadingcuratedonlinemarketplace,connectingthebestsmallcreativebusinesseswithconsumersworldwide.Thesiteoffersmorethan200,000products,manyofwhicharemadetoorderbyoneofits5,000partnerbusinessesacrosstheUK.
Quickresponse
AttheheartofNOTHS’ssuccessisitsabilitytousedigitaltechnologyandbigdatatorespondquicklytonewtrendsinthemarket.“Whetherit’sTheGreatBritishBakeOfforPrincessCharlotte’sbirth,we’reabletoproviderelevantproductswithinhoursofaneventhappening,”explainsCEOSimonBelsham.“Becauseofthewayweworkandthebusinessmodelwehave,wecanleadwithamuchmorerelevant,morecustomised,moreempatheticoffer.”
Connectedtechnologies
AccordingtoBelsham,connectedtechnologiesarecriticalforthebusinesstoworkshouldertoshoulderwithitspartnersandprovideapipelineofnewproductstocustomersworldwide.“Almost50%ofoursaleseveryyearcomefromproductsthatarelessthan12monthsold,”heexplains.“Helpingoursuppliersinnovatemeansthatcustomerscanalwaysfindsomethingnew,somethingdifferent,andsomethingon-trendwithus–butthatonlycomeswhenwecanprovidethetools,thesoftware,thedataforourpartnerstobeabletodothat.”
Developingtalent
ManyofNOTHS’spartnersaresmallartisanproducersbasedacrosstheUK,sellingitemsfromluxurycuisinetoart,plusawiderangeofbespokeandpersonaliseditems.Themarketplacehasastrongfocusonfindingnewtalentandscalingthebusinessesitworkswith–17ofwhichhaveachievedsalesofover£1m.“Thegrowthofonlinemeansyoucanshopforalmostanything,anytime”explainsBelsham,“Whatmakesusdifferentisthatwesellthousandsofproductsthatcustomerswon’tfindwidelyavailableelsewhere.Furthermore,byshoppingwithuscustomersaresupportingindependentbusinessesandsmallcommunitiesacrosstheUK,somethingweknowmatterstothemalot.”
Integratingonlinewithoffline
Byrespondingtorisingconsumerdemandforunique,quirkyandethicallyconsciousitems,NOTHSachievedanannualturnoverof£158mfor2016.RecognisingthatcustomersfeelastrongaffinitywiththeNOTHSbrand,thebusinessrecentlycelebratedits10-yearanniversarybylaunchingathree-daypop-upshopinOldSpitalfieldsMarket.
“Idon’tthinkthefuturewillbeaboutonlineoroffline.It’sgoingtobeacombinationofthetwo,”saysBelsham.“Throughourpop-upshopwefoundthatcustomerslovedmeetingourpartnersandtakingpartinsomeofourevents.Wedon’thaveimmediateplansforopeningachainofshops,butwewillcontinuetolookathowwecanaugmentwhatwedoinphysicalexperiences.”
SimonBelshamCEONotonthehighstreet.com
“Whatmakesusdifferentisthatwesellthousandsofproductsthatcustomerswon’tfindwidelyavailableelsewhere.”
Simon Belsham,CEO,Notonthehighstreet.com
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ConclusionAcompassforthefuture:winningtheheartsandmindsofconsumers
OurresearchhighlightsaclearopportunityforUKretailerstodrivecompetitiveadvantageintoday’sfast-changingmarketandcapitaliseonconsumerdemandforamorediverse,vibranthighstreet–eveninthefaceofexternalchallengessuchasBrexit.
Thisholdsequallytrueforonline-onlyretailers,manyofwhichcouldbenefitfrombringingtheirbrandtolifeforcustomersthroughacompellingstoreformat.
Webelievetherearefourkeyareasonwhichretailersshouldfocus.
Makedifferentiationyourmantra
OurresearchshowsthatconsumersfeelproudofBritishretailersandbelievetheywillhelptheUKtoweathertheeconomicuncertaintycausedbyBrexit.YetshoppersareclearlydissatisfiedwiththewaytheUKhighstreetisevolving,andparticularlywiththelackofdifferentiationbetweenstores.
Forretailers,thispresentsanexcitingchancetodelightcustomersbyprovidingacompellingin-storeexperiencethatsetsthemapartfromtherest.Waystoachievethiscouldincludeusingtechnologytoenableshopperstofindoutmoreaboutproductsin-store,seewhatproductslooklikeintheirhome/ontheirperson,ordergoodsforhomedelivery,andevencustomisemerchandisebeforetheybuy.
Someretailersarecollaboratingwithotherbrandstodriveinnovation.Tesco’srecentpartnershipwithHolland&Barrett,forexample,willintroduceahealthandwellbeing‘storeinstore’formatinanumberofTescostoresacrosstheUK.20
Takea‘failfast’approachtoexperimentingwithnewtechnologiesinstore
Continuallyexploringthepossibilitiesofferedbydigitalisvitaltofuture-proofingthecustomerexperience.Yetourresearchshowsthatwhilesomefeatures–suchassmartfittingroomsandtouchscreentechnology–holdappeal,others–suchasrobotcustomerservicerepresentatives–maynotpersuadecustomerstovisitstoresmoreoften.Beforeinvesting,retailersshouldexperimentwithandpilotnewtechnologiestounderstandwhethertheytrulyenrichthecustomerexperienceorwhetherthey’reafad.Andtakinga‘failfast’approachherewillhelptoavoidtheunnecessaryexpenseofunsuccessfulroll-outs.
ShoeretailerClarks,forexample,regularlypilotsnewtechnologies.Someideas,suchasdigitalsignageandvirtualinteractivesurfaces,weren’tsuccessfulenoughtomeritwidespreadimplementation;yetothers–suchasusinganiPadtomeasurechildren’sfeet–haveprovedhighlypopularandarenowavailableacrossClarks’stores.21
20ht tps://www.tescoplc.com/news/news-releases/2016/tesco-joins-forces-with-holland-barrett-in-pilot-health-wellbeing-partnership/21ht tp://www.computerweekly.com/news/2240230441/Retailers-need-to-adopt-fail-fast-attitude-to-technology
1 2
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Prepareforthenexteraofomnichannel
Asadoptionofsmartphonescontinuestogrow,retailersmustensurethattheirstoresallowcustomerstousetheirmobiledevicestoenhancetheirshoppingexperience–forexample,tofindproducts,makepayments,lookforspecialoffersandbenefitfromexpertadviceandguidance.
However,somehigh-streetstoresarenowblurringtheboundariesbetweendigitalandphysicalchannelsentirelybyarmingcustomerservicerepresentativeswithiPadsandenablingcustomersathometogetaSkypetourofmerchandise.
Meanwhileanumberofonlineretailersareintroducingahigh-streetpresencethatenablescustomerstointeractwiththeirbrandandexplorepopularproductsinperson.AmazonBooks(Amazon’sbookstoreinSeattleUniversityVillage),forexample,givescustomerstheopportunitytodiscoverthe5,000mostpopulartitlesbasedononlinereviews.22
Put convenienceandpersonalisationattheheartoftheoffer
Asthe‘Uber-isation’ofretailcontinues,consumerswillnaturallygravitatetowardsbrandsthatcanprovidethemwiththeexactproductorservicetheywant,assoonastheywantit–whetherthisisin-storeoronline.CompaniessuchasNotonthehighstreet.comoperatea‘platform’businessmodelthatgivesthemtheagilityrequiredtorespondtoshoppers’demandsforpersonalisationandconvenience.
Othersarelookingfurtheraheadandexploringhowcustomerscanorderviaamessagingappsothatpurchasingbecomesaseamlesspartoftheireverydayexperience.
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22ht tp://www.forbes.com/sites/greatspeculations/2016/02/11/why-would-amazon-open-physical-stores/#618d30ce3a1a
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About the authorIanGilmartinHeadofIndustry,RetailandWholesaleCorporateBanking
IanGilmartinisHeadofIndustryforRetailandWholesaleatBarclaysCorporateBankingacrosstheUKandIreland,whereBarclayshasoperatedasectorspecialismforalmost30years.HeandhisteamofRelationshipDirectorsareresponsibleforthousandsofclients,rangingfromboutiquefashionhousesandhigh-streetbooksellerstodepartmentstoresandlistedcompanies.
Ianhasover20yearsofcorporatebankingexperienceandhasspentthelastfiveyearsprovidingspecialistbankingservicestoretailersandwholesalersaspartoftheleadershipwithintheRetailandWholesaleteam.Priortothat,hewasaSeniorRelationshipDirectorintheTechnology,MediaandTelecomsteam,andhasexperienceofothersectorverticalsfromhisearlycareer.
Sincetakingonhiscurrentrole,Ianhasbecomearegularcommentatorinthenational,regionalandtrademediaonretailtrendsandindustryissues,aswellasretailsalesfigures.
TofindoutmoreabouthowBarclayscansupportyourbusiness,pleasecall08000154242*orvisitbarclayscorporate.com
*Callsto0800numbersarefreefromUKlandlinesandpersonalmobiles,otherwisecallchargesmayapply.Tomaintainaqualityservicewemaymonitororrecordphonecalls.
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About this researchThefindingsinthisreportarebasedonasurveyofmorethan2,000consumersacrosstheUK,conductedbyLongitudeResearchonbehalfofBarclaysinAugust2016.
Noteregardingdata:wherepercentagesdonotaddupto100%thisisduetoomittingthoserespondentswhooptedforthe‘don’tknow’answerinthepoll.
Barclayswouldliketothankthefollowingindividualsfortheirtimeandinsightsincontributingtothisreport(listedalphabetically,bysurname):
• Simon Belsham,CEO,Notonthehighstreet.com
• Connie Di Gennaro,ChiefCommercialOfficer,Wolf&Badger
• Sophie Hackford,Director,WiredConsulting&Education
• Lucy Larkin,retailexpert,Accenture
• Richard Smothers,ChiefFinancialOfficer,Mothercare
• David Thomson,HeadofDigitalProduct,Marks&Spencer.
barclayscorporate.com
Nopartofthispublicationmaybereproducedorstoredinaretrievalsystem,inanyformorbyanymeans,electrical,mechanical,photocopyingorotherwise,withoutthepriorconsentofthepublishers.TheviewsandforecastspresentedinthisreportrepresentindependentfindingsandconclusionsdrawnfromastudybyAnalytiqa.Analytiqacanacceptnoresponsibilityforanyinvestmentdecisionmadeonthebasisofthisinformationorforanyomissionsorinaccuraciesthatmaybecontainedinthisreport.Thisreporthasbeenproducedingoodfaithandindependentlyofanyoperatororsuppliertotheindustry.Wetrustthatitwillbeofsignificantvaluetoallreaders.
Theviewsexpressedinthisreportaretheviewsofthirdparties,anddonotnecessarilyreflecttheviewsofBarclaysBankPLCnorshouldtheybetakenasstatementsofpolicyorintentofBarclaysBankPLC.BarclaysBankPLCtakesnoresponsibilityfortheveracityofinformationcontainedinthird-partynarrativeandnowarrantiesorundertakingsofanykind,whetherexpressedorimplied,regardingtheaccuracyorcompletenessoftheinformationgiven.BarclaysBankPLCtakesnoliabilityfortheimpactofanydecisionsmadebasedoninformationcontainedandviewsexpressedinanythird-partyguidesorarticles.
BarclaysisatradingnameofBarclaysBankPLCanditssubsidiaries.BarclaysBankPLCisauthorisedbythePrudentialRegulationAuthorityandregulatedbytheFinancialConductAuthorityandthePrudentialRegulationAuthority(FinancialServicesRegisterNo.122702).RegisteredinEngland.Registerednumberis1026167withregisteredofficeat1ChurchillPlace,LondonE145HP.
October2016.BD04228.
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