Argos is smart to start trading-up customers’ old tech

I wonder how many unused gadgets the average person has lying around their home? The pace of technological change is such that I suspect most households have at least one previous generation smartphone or tablet in a drawer somewhere.

In fact, the UK as a whole has about £1 billion worth of retired tech tucked away, according to electronic equipment recycle firm, Wrap. And Argos has become the first retailer smart enough to capitalise on this opportunity, by teaming up with Wrap and inviting consumers to trade in out-of-date digital items at their stores.

This seems like a win-win scheme; shoppers get Argos vouchers in return, which they can use to get the latest generation gadget, and they don’t have to dispose of the item themselves; the retailer gets additional custom and some positive publicity; Wrap gets lots more lovely devices to reuse or recycle, reducing the electronics industry’s contribution to UK landfill.

It’s surprising that a scheme like this hasn’t been piloted before – at least, not on the scale of what Argos is planning – but I guess this must be down to the financial, logistical and promotional investment needed to make it a success. However, those who haven’t boldly gone down this route may not realise how clever Argos is being, aligning itself with a technology recycling scheme.

Argos has undergone a major strategic overhaul over the last 12-18 months to reposition itself as a digital-first company (including the launch of a digital concept store on London’s Old Street), and this latest move brings customers into its tech-savvy community.

The recycling scheme is sending out a clear signal: ‘because we’re a company on the cutting edge, we know that you crave the latest technology, and we’re going to help you make that upgrade in an environmentally friendly, financially beneficial fashion’.

Not only does this court custom in general, as the exchange of vouchers will encourage shoppers to make their next technology purchase with Argos, it attracts a specific segment that is interested in electronic gadgets.

These are the early adopters, the boundary pushers; the type of customers likely to embrace in-store technologies such as self-service order points, find them of benefit, and return to the store in future because of them.

So Argos is smart to start trading-up customers’ old tech – because this could well be the scheme that unites digital-first shoppers with their technology-led ambitions.

Amazon’s Prime Day highlights the gap between online and in-store promotions

You have to hand it to Amazon; never one to stand still, in the last couple of weeks alone, the e-tailer has announced a new one-hour fulfilment service in London for Prime customers, along with a one-day flash sale – Prime Day – held today (15th July).

Designed to mimic Black Friday, although it is unlikely to have the same furore initially, it’s a clever way to clear the decks of unwanted stock, stimulate demand in what is a traditionally quiet retail month, and get more customers signed up to its premium delivery service.

Many online rivals will feel a certain degree of tension about Prime Day; yet again, Amazon is using a loss-leading fulfilment strategy to create marketing headlines. However, it’s not just ecommerce that should be concerned.

The increasing frequency with which ecommerce providers are launching flash sales is widening the gap between what promotions look like online, and what they look like in-store.

Of course, the digital world is always going to move quicker than bricks-and-mortar – it’s a lot easier to roll out something virtually – but the faster shoppers have access to discounts or multi-buy deals on a website, the less value for money they feel they are getting in the store.

To combat this perception, retailers need to be drawing on technology to bring real-time capabilities to the store. For example, rather than building marketing campaigns around direct marketing and paper vouchers, they need to be running ‘on the spot’ promotions through shoppers’ mobile devices when they visit the store.

This way, rather than hitting them with special offers when they’re not ready to buy, they can dangle something real to their agenda at that point in time as they browse the aisles. Targeting consumers’ smartphones also enables them to tailor that offering based on their exact location, or their purchasing history, to make the proposition even more relevant.

Don’t forget – if bricks-and-mortar can get the offer right, it has the added advantage of giving shoppers the chance to touch and try a product before they buy. Online can’t do this, which ultimately limits the appeal of some products.

 

6 stories that redefined retail in the first 6 months of 2015

It’s hard to believe we’re already in July; where has the first 6 months of the year disappeared to?!

As we pass the halfway point of 2015, let’s look at some of the retail stories we could not have predicted on New Year’s Day, and the trends that are likely to shape the months ahead.

  1. The demise and (sort of) rise of Tesco

2014 wasn’t a great year for Tesco – and 2015 didn’t start well either, with the company announcing the biggest ever loss in its 96-year history in April. However, once incoming CEO Dave Lewis got his feet settled under the table, things started to improve for the supermarket chain, which defied analyst predictions to post lower-than-expected sales falls in June.

  1. Cheaper by the dozen

There’s just no stopping shoppers’ appetite for low-budget bargains; in May, the Local Data Company announced that Aldi and Lidl are now opening at least 5 UK stores each week – growing at twice the rate of the Big Four supermarkets – while Iceland and Farmfoods are also rapidly increasing their retail footprint.

Poundland is proving another unstoppable force, entering into talks with regulators to acquire fellow discount brand, 99p Stores.

  1. Apple Pay hits the UK

July is an important month for the UK payments industry, as Apple Pay hits shop floors and restaurant tables for the first time. Though consumer awareness of mobile wallets remains conservative, the fact that major corporations such as Boots, Costa, New Look and Nando’s have signed up to the service, indicates that the industry expects great things in the long run.

Read our blog: there’s a lot more retail & hospitality needs to get right before taking a bite out of Apple Pay.

  1. The £1 takeover

A pound can’t get you much these days: 1.3 Mars Bars, half a bottle of shampoo… an entire retail chain?!

That’s exactly what private consortium Retail Acquisitions paid for BHS in March, as Sir Phillip Green offloaded the struggling retail chain from his Arcadia Group.

Despite its name, Retail Acquisitions has a lack of experience in the sector, and its early plans include heavy-handed measures such as the potential closure of BHS’ flagship store on London’s Oxford Street. Watch this space.

  1. Retail delivery take-Uber

Uber takes the title of 2015’s most controversial company to date, with disgruntled taxi drivers in France and the USA protesting against the service within the last few days. However, it’s not just the travel sector that Uber wants to change; it has reportedly joined forces with the likes of Tiffany and Hugo Boss to pilot a luxury goods home delivery service for designer shoppers.

Over time, Uber’s aim is to combine retail fulfilment and passenger services, to bring down the cost of transporting goods – definitely one story to keep an eye on.

  1. Honey, I shrunk the high street

They say size doesn’t matter, but everything seems to be getting smaller in 2015. Supermarket chains have turned their attention to the c-store market, while another traditional big box retailer – Ikea – has announced its first UK foray into small format stores.

Even larger retail space is being divided and conquered; Asda has teamed up with Decathlon to launch a ‘store within a store’, while Argos will be rolling out a number of collection points within larger Sainsbury’s supermarkets.

Which stories have defined your retail year to date? Tweet us @Vodat_Int with your views.