For every positive story in the retail press at the moment, there seems to be a contrasting tale of lesser fortunes. For example, Ocado has announced a first-quarter jump in sales, with average orders increasing nearly 17%, and weekly orders passing a quarter of a million for the first time. Compare this to the wider grocery industry, where profits are falling and sales are stalling, and it’s clear that more needs to be done to keep customers satisfied. It’s not a just supermarket thing either; only last week, John Lewis revealed a near 10% fall in pre-tax profit.
What makes John Lewis unlike some of the other retail brands to have suffered a dip in sales is that they simultaneously announced a plan to drive recovery. The department store chain is moving their services to 7-day delivery, driven by the “need to reflect how and when our customers are shopping with us” in the words of Managing Director, Andy Street, as “customers increasingly want flexible shopping and delivery times”.
The fact that John Lewis wants flexible shopping as well as delivery is important. The recent success of Ocado would indicate that fulfilment is high up the priority list for consumers, but convenience and seamlessness rank highly also. PWC’s Total Retail Global Report 2016 shows 55% of UK consumers cite convenience as their main attraction to online shopping, compared to just 37% being motivated by price.
Bearing this in mind, retailers need to focus on making the store more flexible and agile, in line with shopper priorities. Click-and-collect has been the first hugely successful cross over service in this area; 60% of consumer report they have used it, and a huge 98% recognise the concept. This illustrates that, despite drops in foot traffic, shopping in-store is still an important channel for most consumers.
So how can retailers create a store environment that not only attracts shoppers, but also meets their expectations and encourages them to spend? PWC asked a sample group of online shoppers how retailers could enhance their physical stores, and better alignment of in-store and online services ranked highly. With this in mind, we would recommend retailers focus on enhancing three core aspects of their bricks-and-mortar business:
- Increase communication between staff, and locations, to streamline the customers experience
Poor in-store communication has long been a problem for some retailers, but improving it needs to be a priority. We know that a third of consumers have abandoned a shopping trip because they couldn’t get the information they needed prior to purchase, while 4 in 10 have left a store and sought the item elsewhere. The industry needs to understand that consumers place value on the ability to check online stock quickly (32%) and sales associates with a deep knowledge of the product range (40%).
Alongside providing training to empower their staff with all the information they need, retailers should consider investing in managed data networks to address this problem. Giving sales associates connected devices can improve their access to knowledge about the customer, as well as giving instant access to stock information, store transfers, and transactional capabilities, but these will only run efficiently with a robust supporting network
- Improve systems to reduce waiting times
Shoppers, rightly, demand the speediest checkout experience (35%) possible, and retailers know queuing times can have a negative effect on sales. Yet many are working with overloaded systems, which can affect not only payments, customer queries, and processing orders, but also core tasks including inventory. This has huge potential impacts on customer loyalty, with a third (32%) of consumers not returning to stores with slow service, and 1 in 5 being put off buying from that brand over any channel.
In response, retailers should review their systems and consider updating them, or even just increasing bandwidth, to avoid technical downtime.
- Invest in the customer across all channels, to deliver a joined up experience
PWC’s report clearly demonstrates that technology is as important in-store as online. A fifth of customers are interested in store WiFi (22%) and most use their mobile phone as an important research tool when wandering the aisles. Alongside this, many shoppers would like to receive mobile promotions in-store, be able to access loyalty programs, and make mobile payments.
With 3 in 10 believing the quickest way to answer queries is to look up the question on their own mobile device, retailers can better facilitate consumer needs by ensuring there is a fast, secure WiFi offering in place, and also providing independent technology experiences such as in-store tablet information points.
To find out more download our report More than words – Why retailers and customers are becoming disconnected by the store network – and how to fix it