What must BHS do to survive its CVA revival?

BHS’ owners breathed a sigh of relief this week when creditors voted in favour of a Company Voluntary Arrangement (CVA) that will see rents cut on many of its stores, but this is just one small victory on the road to recovery.

The department store chain’s past has been somewhat chequered in recent history. Loss making for 7 years, BHS was bought by invesment group Retail Acquisitions for just £1 in March 2015, when retail Tycoon Sir Philip Green failed to revive its fortunes.

BHS’ chief executive, Darren Topp, has placed the blame for its latest poor performance squarely at the door of retail property prices, claiming the retailer’s problems are down to cost rather than sales.

The CVA will certainly ease some of this pressure, as 47 stores will have rents slashed by either 50% or 75%, while negotiations will take place to reduce rental on the remaining 40 stores (excluding those held separately by BHS Properties Limited) by 25%.

What’s more important, though, is that Retail Acquisitions use this lifeline to raise the capital needed to reinvigorate the BHS brand, as its lacklustre results are down to much more than rising costs. “The shops are tatty and the clothing lines dowdy,” remarked the Financial Times’ Jonathan Guthrie in his analysis of the situation.

However, Guthrie’s conclusion that “department stores have themselves fallen from fashion with shoppers” couldn’t be further from the truth. BHS has to look no further than John Lewis and House of Fraser – both of which pre-date the 88-year-old chain – to see two examples of similar businesses that have evolved much more successfully.

So, where did BHS go wrong – and what does it need to do in order to put it right? Certainly within omnichannel retail, the business has been caught napping. John Lewis and House of Fraser have put significant investment into their digital strategies, both in terms of online offering and promoting technology-led engagement in the store. House of Fraser has gone mobile-first with its website, while John Lewis’ retail app was recently voted third best in the UK. Both companies have invested heavily in click-and-collect.

In contrast, BHS has been driving down its margins even further with seemingly permanent discount promotions, and trying to diversify into new areas such as foods rather than reinventing its core clothing and homeware range.

Recently, though, there has been light at the end of the tunnel. The convenience food initiative is still in play, but BHS seems to have turned a corner with regards to prioritising what needs to change. 23 stores have already undergone a rebrand, and Topp has vowed to streamline its product range and focus on the brands which resonate with its customers. It’s also implementing an aggressive ecommerce strategy, to increase online shopping’s share of sales from 12% to 20%.

Interestingly, BHS has hired ex-House of Fraser brand marketing director, Tony Holdway, as marketing and creative director. He has already vowed to overturn the company’s lack of brand appeal and investment.

The fact that Holdway has jumped ship from House of Fraser is almost a bigger coup for BHS than the CVA. Having someone who knows how to run department store marketing, 2016 style, will help the retailer to shake off its outdated image and start embracing the omnichannel, multi-touchpoint journey to purchase that hallmarks modern retail.

One thing is for sure; if BHS doesn’t aspire to the relevance and agility of John Lewis and House of Fraser, it’s going to find itself back in the danger zone pretty quickly. And it would be a huge shame to lose one of the High Street’s most recognisable heritage brands.

How can retailers make in-store a more flexible shopping environment?

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:

  1. 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

  1. 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.

  1. 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

The secret to successful store expansion

Online retail is no stranger to positive headlines. In fact, it sometimes seems that all we hear about in the industry is the strength of ecommerce.

And it’s these types of stories that have put stores in the spotlight for the wrong reasons. Although 90% of all sales still happen in physical shops, there seems to be far more of a focus on the aspects of bricks-and-mortar that aren’t doing quite so well. For example, in the last few weeks alone, BHS, Greggs and Dixons Carphone have been making headlines regarding store closures.

One of the key reasons that stores close is because they don’t resonate with shoppers; in the interactive, instant world of digital commerce, store layouts and processes can appear outdated. However, this is something that can be amended – and there’s a huge appetite amongst retailers for getting the store right and growing its presence. New research by CBRE has revealed that retail estate expansion still remains high on the agenda, with 83% of retailers adamant that store growth will not be influenced by the rise of ecommerce this year. After all, there is no online substitute for seeing, touching and trying items before purchase.

The benefits of bricks-and-mortar haven’t gone unnoticed by e-tailers. Already this year, we’ve seen their eyes move towards the high streets, with the likes of Missguided announcing its first offline stores. Yes, the business is doing very well trading as it is, but if they want to grow even further, it makes sense to offer a physical experience as an alternative too.

So how can retailers optimise their stores for profit growth – and potential expansion if they get their formula right? For starters, today’s connected consumer is all about convenience and, as we well know, that doesn’t necessarily mean choosing between online or offline retail. Instead, shoppers want to switch between the two at different stages of their journey, and they need to know that retailers will allow them to be flexible in this respect.

Achieving this level of agility means incorporating some of the elements that shoppers love about digital platforms into the store experience. Some retailers are already way ahead of the game, launching concepts that aim to convey the ‘store of the future.’

House of Fraser, for example, recently experimented with shoppable windows, whilst Tommy Hilfiger has brought the runway to the store using virtual reality headsets. These are pretty ambitious of course; the store must focus on perfecting the basics before taking this kind of leap. Investing in more mainstream technology such as mobile POS is one good example of connecting the bricks-and-mortar experience through online functionality.

Another key consideration is the interaction between ecommerce and store activity through click-and-collect. Even though many retailers already offer the service, there are still elements of the process that frustrate customers. Perfecting the ‘collect’ part should now be a major focus for stores, making it a pleasant experience for those finalising their purchase. Enabling speedy payments technology, such as contactless, will be handy here, as well as ensuring the right amount of staff are there to keep the queues running smoothly. Streamlining the click-and-collect element will increase the opportunity to encourage further impulse purchases.

Of course, not all online browsing will take place at home. In an era of smartphone addicts, it’s now habit for consumers to rely on their devices whilst in a store too. Vodat International recently commissioned some research that revealed 54% of shoppers use their smartphones to compare prices in the aisles, 46% look up product information and 44% for personal reasons, such as checking social media. The bottom line is that consumers expect to be able to connect to the web whenever suits them – and that includes within the bricks-and-mortar shopping journey.

It may seem obvious, but there are still retailers that do not invest properly in strong WiFi to encourage this behaviour in controlled circumstances. In fact, 3 in 10 shoppers don’t find the current standard of WiFi unreliable. Retailers with sub-par WiFi are not only at risk of frustrating their customers, they are also losing a valuable opportunity to understand (and react to) their behaviour patterns. Provided they select the right provider, retailers will be able to interact with, influence and capture insight on consumers when they log on to the network.

It’s great to hear that retailers are feeling optimistic about the potential of stores, especially at a time when ecommerce is threatening share of sales channel. Gone is the time where stores and online were two separate things; the future of the store is very much intertwined with digital interaction. If they go about it in the right way, retailers can now harness the power of ecommerce in the physical environment, and use it to boost profitability.

Stay tuned for our new report – Battle of the bandwidths: why customers are won and lost on the strength of retail networks – which will provide even more insights into the connected consumer.

Is fashion a step too far for Amazon?

For many retailers, Amazon can feel like an undefeatable giant. As if its achievements to date aren’t sufficient, the e-tailer has announced its first foray into private-label fashion brands – but is this a step too far?

Undoubtedly, Amazon has a loyal customer base. The site has 244 million active users and is widely praised for its convenience, prices and extensive choice of products. Jeff Bezos and colleagues also have deep pockets when it comes to fulfilment, which will ensure fashion followers get their purchases as quickly as possible, regardless of cost.

However, Amazon’s widespread appeal may also be its Achilles Heel. If their audience is everyone, how are they going to segment that vision for the highly targeted world of fashion?

To be successful, Amazon is going to have to compete with online upstarts like ASOS and internationally-established retailers like Topshop, which both have a strong following from style-savvy shoppers.

Equally, because they are focused on fashion and fashion only, the likes of ASOS and Topshop have had time to really get to know their customers – not just what clothes they like, but how they shop, what their interests are, what media channels they use. This has enabled them to craft a brand based around a clear picture of their target market.

So, is Amazon trying to conquer too much with a foray into fashion?

If anyone is going to make a new venture yield returns, it’s going to be Amazon. After all, the e-tailer has good knowledge of fashion already, having sold clothes since 2008. It added a series of high-profile names to its repertoire last year, including Hugo Boss and Gucci, and opened Europe’s largest fashion photography studio in London last summer.

Amazon is also investing in a knowledgeable leader to increase its chances of private-label success; the former womenswear boss of Marks and Spencer will be heading up the launch. With a background in how fashion and consumer behaviour, she may have what it takes to ensure Amazon’s new foray is completely customer focussed.

There are two things that will ultimately determine its success. The first is how well it can use the wealth of data it generates to map its fashion offering to potential customers.

The second is a problem that faces all online retailers: how well it can promote its private-label range without potential customers being able to feel and try garments.

While online is ideal for items such as electronics and entertainment, clothes are very visual, and many consumers still treasure the act of going into a store. Fashion shopping is a leisure activity, and asking a sales assistant to bring you a different size is always going to be easier than buying something in two sizes and sending one back – no matter how quick and simple the returns service.

Only time will tell whether Amazon lives up to its self-described vision of ‘the ultimate fashion destination’, but it needs to apply the innovative thinking for which it’s renowned to triumph in a world which values style AND substance.

Do you think Amazon will succeed in the fashion market? Tweet us your thoughts.  

 

Inside the mind of the modern consumer

Understanding customers is no easy job for retailers today. What consumers want is changing all the time, as is the technology that they rely on as part of their shopping trip. It’s no wonder that many businesses are struggling to keep up!

It doesn’t help that retailers are inundated with headlines that profess the latest insights into consumer habits; which ones can they actually trust? Here, we’ve detailed the most recent retail research that retailers – online and off – should factor into their customer experience strategy.

“They are impatient” – Vodat International

5 minutes; that’s how long a customer will wait for their query to be answered in-store. That doesn’t leave much time for a staff member to gather the information they’re unsure of, before that shopper abandons their journey completely.

How to respond

Ensure that your workforce receives regular training regarding your product offering – especially if new items are added. For an extra helping hand, why not implement tablets in stores so that answers are always at staff’s fingertips?

“They expect personalisation” – iVend Retail

A third of shoppers think they get personalised offers online, but not in-store. Perhaps this is one of the key reasons why ecommerce seems to gaining its sales share of channel.

How to respond

Yes, online has automated capabilities that allow loyal customers to receive information that is specific to them – but there is something the store can do better.  The ability to see, touch and try products cannot be replicated online, and even better, the presence of staff means that shoppers can get even more insight into the products they’re interested in. There’s nothing more personable than face-to-face interaction, so encourage conversation to give staff the opportunity to upsell products that might compliment a customer’s purchase.

“They tap-to-pay” – Visa

The number of contactless transactions made in the UK last year increased by 250%, according to the payments specialist. It’s suggested that this is largely due to the spending limit rise in September, which saw consumers able to pay for goods of up to £30, as opposed to just £20.

How to respond

The speed of the payment method fits the profile of today’s busy, impatient shopper. Therefore, now is definitely the time to ensure that your store not only accepts contactless, but encourages its usage.

You’ll also find that the same NFC technology in contactless terminals works with some mobile payments services, e.g. Apple Pay. As availability widens, consumers will come to expect all retailers to offer the method to them in-store. Those that don’t are likely to be viewed as outdated pretty soon, while those that do will see queue times accelerate and customer satisfaction soar.

Of course, if you’re planning on implementing such technology, you’ll want to make sure that your card payment network security is up-to-scratch. You can find out how to ensure this here.

“They go mobile” – Episerver

Mobile shopping is already playing a huge part in how people are shopping this year; 59% of Brits used their device to purchase items in the January sales.

How to respond

Shopping on a mobile device is meant to provide the ultimate convenience for consumers, allowing them to browse retailers wherever they go. With this in mind, it’s essential that you make your own mobile experience easy – ensure that you’re website is properly optimised, and that the payment process is neither lengthy nor fiddly.

“They click-and-collect” – Atomik

Shoppers might love mobile, but not quite as much as click-and-collect. A recent survey saw it beat mobile as the method that impacted their 2015 shopping experience the most.

How to respond

The role of the store has evolved from being just a sales channel, it now has to deal with a constant flow of click-and-collect orders. As most retailers now offer the service, they need to make sure that it’s the best it can be to stand out from so many others that offer the same. Training staff, implementing dedicated click-and-collect personnel, or adding an interactive kiosk are all ways to better optimise the store for click-and-collect. Of course, with all this extra technology, retailers must invest in a network that’s robust enough to support it.

Have you seen any recent retail statistics that you think offer real value to retailers? Then share them with us on Twitter via @Vodat_Int.

 

Are fashion e-tailer’s attempts to venture offline Missguided?

It’s a great time for online retail. Hailed as the most convenient means of shopping, ecommerce is in the midst of one of its most successful seasons yet – December alone saw a sales increase by 15.1% compared to the previous year.

However, it seems that this level of success isn’t quite enough for some retailers; in a bid to grow even further, they’re looking offline too. Fashion e-tailer Missguided recently announced plans to open its first store in the UK, and it’s not the only one – the likes of Boohoo and Fabletics have also taken their first steps into bricks-and-mortar.

And who can blame them? News headlines about the death of the high street are fast becoming replaced with success stories. Services such as click-and-collect are providing stores with a new lease of life, with John Lewis being the latest retailer to praise the shopping method’s contribution to its strong festive trading figures. Meanwhile, some are even calling out for store opening hours to be extended, with 64% of retail workers in London supporting longer trading on Sundays.

So yes, heading to the High Street offers great potential for an online retailer. But there some things to factor in if they wish to replicate the great customer experience they create on the web.

Unlike ecommerce, the store has a helping hand in converting sales: staff. Personal service is something that gives bricks-and-mortar an edge over online shopping, so it’s essential that retailers make the most of this opportunity.

Offering great bricks-and-mortar customer service relies on the retailer’s ability to give consumers the same informative experience as their digital platforms provide. Yet, we recently found that 43% of shoppers voiced frustrations with inconsistent answers from staff. In order to address these communication challenges in-store, some leading retailers are equipping staff with tablets. This way they’ll have access to product information and stock availability at the swipe of a finger, making it far more likely that they can address customer queries.

This is especially important at a time when most shoppers enter the store with some level of product knowledge. Recent research from omnichannel retail specialist iVend Retail revealed that 68% of European consumers will research online before visiting a store – and clued up customers expect far more from retailers. These shoppers have already done their research, and just want to touch or try the item before committing to a purchase. In this case, staff members are far more likely to be faced with technical queries regarding the item, rather than general product information. In this case, a tablet device will prove even more valuable to your staff – they can’t be expected to understand the ins and outs of every store product on their own after all.

And not all shoppers restrict their online research to the comfort of their own homes. Instead, many are relying on their mobile devices to have a quick browse in-store, either for more product knowledge or to compare it with those available from other retailers. During the festive period alone, 41% of shoppers ‘showroomed’ when buying gifts in-store.

This shopper desire to use mobile in-store, combined with staff usage of tablets, means more devices devices than ever are connecting to store networks. Retailers that have not invested well enough in their network may be faced with a whole host of issues; slow running technology, intermittent connections and, in the worst case, complete connectivity blackouts. Not only will this be extremely frustrating to those working at the business, but most importantly, customers will be left disappointed too. Then, all the good work that retailers have done to blend their store and online experiences will be completely undone.

The battle for consistency between online and bricks-and-mortar shopping has been raging for years, and retailers like Missguided must tread carefully to ensure their in-person experience lives up to the digital hype. Much attention will have been paid to the marketing, store layout and such like, but it’s the network underpinning their store that will define their ability to deliver what customers want.

 

 

 

Make better communication your store’s New Year’s resolution

There’s no doubt that online retail has had its fair share of flattering headlines this year. Hailed as the speediest, most convenient way to shop, it’s getting harder for bricks-and-mortar to compete.

However, there is something that the store can triumph in – and that’s personal service. While it may be easy to drop a few products into an online basket, the advice and expertise of knowledgeable in-store staff is something that can’t be matched.

Yet, it seems that 2015 may not have been the store’s finest hour. Our own research showed that there’s still much work to do to perfect the in-store experience:

  • 37% of shoppers hate receiving inconsistent answers from staff
  • 30% of consumers have abandoned a purchase because staff couldn’t answer their question
  • 5 minutes is the maximum time customers will wait for a query to be answered before leaving the store

That leaves retailers with a very short window of time to wow the shopper. If they don’t do just that, they risk losing a once loyal customer – one who will no doubt share their negative experience with family and friends.

However, with a New Year comes a new chance to change bad habits. So why not make 2016 the year to perfect your in-store service? It all starts with giving your staff the tools to succeed:

Invest in training

60% of customers believe knowledgeable staff deliver better customer service. Yet, with changing layouts, new products and time-sensitive offers to contend with, it’s no wonder that your workforce may be left confused. Communication is key here; ensure each member of staff is briefed at the start of their shift, alerting them to anything that may have changed since they were last there.

Implement tablets

21% of shoppers want sales associates to be given point of sale technology. And, it’s a request that will make life a lot easier for your staff. Allowing them to walk the floor with a tablet in hand, ensures they will always be ready for that tricky customer question. They’ll be able to check things such as product information and stock availability at the touch of a button, before finalising the purchase with a speedy payment.

Empower customers

22% of consumers would like to see more digital information points in store. There are a number of reasons why your staff might be unavailable for customer queries – whether the queue is too long or they’re locating an order, for example. The point is, sometimes a shortage of sales associates to give a helping hand is out of your control. Therefore, it’s important to ensure that shoppers can help themselves if need be. In-store kiosks are idea, as it presents shoppers with an alternative information source when a staff member isn’t free.

Competing with the fast-growing world of ecommerce is no easy job for stores, certainly if they don’t have the right toolkit to support them. And, of course, implementing the above suggestions will help get 2016 off to a promising start – but without a reliable WiFi connection, your New Year’s resolution for a better store experience will soon be broken.

For more information about successful in-store communication, read our report – ‘Why retailers and customers are becoming disconnected by the store network.’

5 ecommerce websites to watch on Black Friday

Retailers with a transactional website are about to face their biggest test of the year: Black Friday, which takes place on November 27th. Spending is predicted to reach £1.9 billion – a 17% increase on last year – in the UK, with a third of sales taking place online, according to Visa Europe.

Already we’ve seen one casualty of a surge in online trading, as Argos’ website tripped over when it launched its ’12 days of Black Friday’ promotion. However, the good news for the brand is that it has a few days to learn lessons and put contingency plans in place before ecommerce activity peaks.

For other businesses, though, the litmus test is yet to come – so what should we expect from the digital retail community on the big day?

It’s definitely worth keeping an eye on Amazon, ASOS, Debenhams, Marks & Spencer and Next this Black Friday. A recent study by Aimia crowned these retailers the best five UK ecommerce sites for customer experience.

The survey identified personalisation as pivotal to the online journey, as although these sites are rising to the challenge, more than half of consumers feel they are still being targeted with irrelevant product suggestions.

However, tailoring promotions based on previous buying behaviour is the tip of the ecommerce iceberg – some retailers are still struggling to get their basic offering right, particularly under pressure.

During peak trading events like Black Friday, the number one priority is being present and capable of delivering on customer expectations, and the resources needed to achieve this should not be underestimated. As Schuh’s head of ecommerce, Sean McKee, remarked in a recent Black Friday video interview, “be available for the customer, because the customer is absolutely wanting to buy products from you”.

Too many retailers experienced issues with their website last Black Friday, resulting in slow loading times, long waits and costly periods of downtime. In order to avoid this in 2015, concerned businesses need to ask themselves the following questions:

  • Is your hosting environment flexible enough to accommodate surges in demand?
  • Do you need to increase your server capacity to cope with Black Friday traffic?
  • Does your hosting company know it is Black Friday, and what the impact could be on digital activity?
  • Have you got the infrastructure in place to monitor Black Friday traffic in real-time, and respond to emerging issues?

At the end of the day, come Black Friday, price trumps everything else. So while personalisation might be the long game, on 27th November ecommerce retailers need to focus on availability and efficiency to maximise market share.

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.

 

Is your store ready for the mobile shopper?

Fashion retailers are immersed in one of the most competitive markets out there. With constantly changing trends to keep up with, meeting customer demands has always been difficult to achieve.

Alongside this, retailers now have consumers’ tech-addiction to contend with. As new devices constantly hit the market, shoppers are being presented with alternative ways to browse and pay for goods – with fashion being the first stop it seems!

According to the latest research from the British Retail Consortium, UK consumers are increasingly using their mobile devices to shop online, particularly when it comes to buying clothes. In fact, popularity is soaring, with smartphone searches rising by over 50% since last year.

While this may seem intimidating for bricks-and-mortar stores, there’s no reason why they can’t embrace mobile technology too. It’s very likely that most customers will be carrying a smartphone, so why not see the device as an untapped resource to help boost business?

Many retailers are already doing just that. UK shoe specialist Clarks has noticed the appeal of mobile to today’s shopper, and actually promotes the service to passers-by. Featuring stickers in their shop windows, Clarks urges shoppers to use their devices in-store to browse their entire product range online. This not only caters to consumers’ growing reliance on technology, it encourages them to complete their full journey in the store – even if their desired item might not be there at that time.

Some retailers are taking this one step further, creating mobile apps aimed to enhance the store experience. Ted Baker is a great example of this, finding a way to combine mobile and beacon technology to draw in more shoppers. The retailer’s Westfield White City store recently installed beacons in its mannequins, allowing them to send push notifications to customer smartphones about the displayed items. If the shopper has downloaded the Ted Baker app, they will be able to quickly purchase the clothing directly from the website.

However, before retailers consider launching an in-store mobile strategy, there are some factors to consider. For one, there’s no use advertising mobile services if their website is not mobile optimised. Surprisingly, Barclays recently revealed 70% of UK retailers have admitted they do not have a responsive website or an app in place – which can be very off-putting for a smartphone shopper.

Secondly, retailers must ensure they have a robust Wi-Fi network in place if they are offering mobile facilities in the store. A slow internet service will not only discourage customers from using it in the first place, but will likely open doors to complaints too.

Mobile offers a very lucrative opportunity to build stronger relationships that drive revenue in the store. However, retailers need to get the basics right to create a solid foundation on which to build impressive customer experiences.