The retail industry is not keeping pace with the growth of the rest of the economy, as consumers prioritise entertainment and leisure spending. Exacerbating this, the BRC’s recent Retail 2020 report forecasts the combined cost of the Living Wage, apprenticeships and rising business rates will as £14 billion in costs over the next 4 years – approximately 20% of industry profits.
It is clear the industry faces many challenges ahead, and that’s not even taking into account the repercussions of the UK leaving the European Union, the full impact of which we are yet to discover.
However, while the forecast may seem gloomy, we’re seeing a quiet revolution which is repositioning the physical store at the heart of the retail experience. As Helen Dickinson, BRC CEO, describes, ‘what customers are looking for is experience, excitement and theatre, and often the physical environment is a better place to do that’.
So how can retailers optimise the in-store experience to drive sales in this current climate of uncertainty? Here are three strategies being used to great effect on the UK High Street right now:
Create social experiences
James Daunt, MD at Waterstones, has refocused the once troubled bookstore’s efforts on creating a more social retail experience. The retailer’s new Tottenham Court Road flagship store features a bar and a popup cinema in the basements, and many of its shops feature cafés. Daunt calls it an ‘old-fashioned approach to customer interactions’. However, other initiatives such as book clubs and a reservation app show that Waterstones is clearly reinventing the bookstore for the modern age.
With Amazon launching 400 bricks-and-mortar venues in the US, it seems that the store is still central to the future of the bookshop, and Waterstones are taking the physical buying of books to new levels.
Rethink the role of the store
O2’s latest flagships in Manchester and London offer complimentary coffee and working spaces, similar to a model Apple developed for its larger format stores, which included WiFi and seating.
Both O2 and Apple encourage shoppers to spend time in their stores, irrelevant of whether they make purchases. Bridget Lea, head of stores O2, claims that the technology company has ‘ripped up the rule book of a traditional mobile phone shop and set out to create inspiring and creative spaces where people can experience and learn about the possibilities of technology’. O2 want people to spend time in these stores and come back regularly, whatever network they are on.
For technology and telecoms retailers, fostering a community and creating brand awareness is a significant part of the sales strategy.
Tackle the limits of physical space
There has been a lot of noise around bringing technology in-store, and sport retailer Adidas provides a brilliant example of how cutting edge tech can provide an outstanding customer experience and solve the very real retailer problem of limited stock room space.
Adidas’ shops have large digital displays, which add endless aisle capabilities, allowing them brand to display every shoe it offers, beyond what is available in that specific location. By using this technology, Adidas has found it can combine the online and in-store experience for the shopper, answering a real demand from customers to try on the products while having the choice from the full range of stock.
Speak to Vodat’s experts to find out how to increase revenue through technology-enabled customer experiences.