Over the last few months, the UK retail landscape has continued to evolve with the adoption of innovative and immersive technology.

While many brands capitalised on consumer resilience and drove profits, others explored innovative approaches to technology implementation to enhance customer retail experience.

In our latest Retail in Review blog, we explore a few of the most notable retail trends coming out of the UK retail environment, and how they evolved throughout May and June…

Retail Rebounding

Whilst cautious spending has been commonplace within consumer behaviour since the beginning of the year, British retail sales saw a significant rebound in May, with sales figures increasing by 2.9%. This figure is well above the consensus of the 1.8% that was originally forecasted by the Office for National Statistics.

 As the April rain came to a halt, summer shoppers flocked online and in-store to purchase their summer goods. Clothing and footwear were the strongest performing categories, up by 5.4% on the previous year, while household goods also rose by 3.5%.

Brand Collaboration

The integration of omnichannel strategies into retail business models has been vital for retailers, who are continually searching for ways to improve and enhance their offering to customers. Over recent months, retailers have highlighted how they are exploring new ways to combine the use of e-commerce with in-store offerings, with many brands partnering to deliver sales into new channels.

The online clothing brand, In The Style, has collaborated with supermarket giant, Tesco, to release a summer clothing range in over 300 Tesco stores nationwide. This partnership allows the e-commerce fashion retailer to widen its brand accessibility and build a physical presence through one of the UK’s largest supermarket brands.

The Debenhams brand, which was acquired by the BooHoo Group back in 2021, is hoping to continue its strong growth beyond its online re-launch by adding brands to its marketplace. The latest comes in place of re-launching Quiz online, with over 600 items set to become available on the site.

Boots also announced its plans to launch 25 beauty brands across all stores before the end of the summer. This is in addition to the more than 500 existing brands currently on offer, as it strengthens its hold on the beauty market in the UK.

Collaboration between retailers is becoming a well-used strategy that is increasing the accessibility of products to customers. Whether bringing e-commerce brands in-store, or introducing traditionally bricks and mortar retailers to online marketplaces, these collaborations create additional options for consumers that enhance a retailer’s competitiveness and improve the overall customer experience.

Innovative Technology

Immersive design is at the forefront of projects for the fashion industry in driving engagement and exceptional customer experience. Bricks and mortar stores are not letting the introduction of new, exciting technology leave them behind in the tech revolution.

Recently, Nike unveiled an immersive shopping experience in its House of Innovation store in Paris to commemorate the release of its new Air Max DN sneakers. A series of detailed 3D visuals showcasing the new release in holographic form.

Innovations such as smart mirrors, Augmented Reality (AR) fitting rooms, and Virtual Reality (VR) show rooms are setting the stage for the latest retail experiences.

Sustainability

Sustainability remains a focal point for retailers as consumers demand more eco-conscious practices and products.

The latest push towards greener purchases has come from, IKEA, which made splash with its own car boot sale, allowing customers to use their car park space to buy and sell unwanted furniture. This move comes as part of wider sustainability initiatives IKEA offers in-store, including its BuyBack & Resell, and Reshop & Reuse services, which allows customers to gain in-store credit or purchase display items at a discounted price.

Stepping Into the Future

The retail industry has shown continued development in the face of adversity over the last few years, and this was re-emphasised again in May and June. With the introduction of new innovative technologies to advance customer experience and a strong push towards sustainability to match consumer demands and preferences, the retail sector is constantly adapting to thrive in a challenging and competitive environment.

As we move forward, the focus will likely remain on enhancing the customer experience, integrating advanced technologies and navigating strategies that meet the preferences of consumers.

Want to know how technology can help you meet evolving consumer needs? Get in touch.

Can you believe we’re already halfway through 2024? It feels like the year just began. From Super Bowl LVIII to EURO 2024, the first six months have been jam-packed with events. In between, there’s been plenty to take in. Over one-third of customers in the US purchased gifts on Valentine’s Day, London Fashion Week marked its 40th anniversary in style, Easter drove retail sales, the glamorous Met Gala 2024 dazzled, Taylor Swift’s ‘The Eras Tour’ resumed, and the list goes on.

All these events continue to influence consumer buying behaviours, ultimately shaping the retail landscape. As we step into the latter half of 2024, the changes are sure to continue.

At the beginning of the year, we explored the top consumer trends for 2024. In this blog, we examine how these trends have progressed in the last six months and offer insights into what to anticipate for the remainder of the year.

1. Human-Factor Remains Valuable

Earlier this year, Apple Vision Pro gained popularity, prompting retailers to seek innovative applications of the technology to enrich customer interactions. While retailers are actively incorporating virtual environments and AI chatbots to enhance the customer experience, consumers still seek the human touch in their shopping interactions, an element that technology cannot substitute. According to an Answer Connect report, 78% of consumers prefer to speak with a real person when they contact a company instead of a chatbot.

There is no denying that technology is critical in today’s retail environment. However, retailers must not overlook the value of humans in their business. After all, it’s not business-to-business but human-to-human. Nothing beats a conversation with a human with whom customers can quickly feel connected.

2. Consumer Resilience Continues

Over the past six months, consumers have been resilient despite the challenges brought by the current state of the economy. While inflation has impacted everyone, supposedly tightening the belts of shoppers, there are signs that the American consumer is still spending. Credit card companies such as American Express, Visa and MasterCard have described spending trends as “relatively strong,” “relatively stable,” and even “healthy.”

Although consumers are prepared to spend, higher-than-expected inflation in Q1 2024 may still compel them to be mindful of costs. In order to thrive, retailers need to be highly competitive with their pricing strategies. However, this alone isn’t enough as shoppers also seek value in various other aspects, such as flexibility, experience, convenience, and fulfilment. Retailers must adopt a holistic approach by considering all of these factors in their operations. This will help to ensure they can drive sales and foster consumer loyalty.

3. Price Sensitivity & Promotions

With shoppers seeking more bang for their buck, exciting promotions, deals, and discounts have become even more important. According to CNBC, a number of retail companies have observed behavioural shifts in consumers seeking out value and deals. “Customers are shopping but remain cautious, trading down on price when they can, and seeking out deals,” explains Amazon. Etsy echoes this sentiment, noting, “Consumers feel really pressured and so they are seeking value and deep discounts and promotions.”

Besides promotions on huge sales days such as Black Friday deals and Boxing Day, it’s crucial for retailers to weave enticing deals and promotions into their ongoing strategies. Deploying an advanced and secure customer relationship management (CRM) system can enable retailers to blend exceptional customer experiences with personalized offers. As a result, they can create meaningful interactions with customers and build long-term relationships, strengthening loyalty.

4. Environmental Impact is Important

The rise of conscious consumerism has been evident for some time now, and it shows no signs of slowing down. According to a 2024 report, 80% of consumers are very or somewhat concerned about the environmental impact of their purchases, up from 68% in 2023. In fact, US consumers are willing to pay more for sustainable products at an increased volume. A new report by Radial revealed that 51% of consumers surveyed would be willing to pay more for products shipped through sustainable methods. This is a large increase from just 15% of consumers who said the same in December 2023.

Similarly, a recent research report found that over half of 3,000 surveyed respondents are willing to make lifestyle changes to support sustainability. This underscores the growing importance of sustainability for consumers and their willingness to prioritise green initiatives. What implications does this hold for retailers? Retail brands that are able to deploy sustainable practices can remain appealing to consumers, driving long-term success.

5. Anticipated Dip in Social Commerce

With the potential TikTok ban looming over the US, eMarketer predicts a dip in the push we’ve seen with social commerce. Although it’s not clear whether the TikTok ban will actually happen or not, if it does, it is likely to impact social commerce. What retail brands can do now is prepare themselves for the worst by strengthening their presence over other social media platforms such as Instagram, Pinterest and Facebook without relying too heavily on their TikTok sales.

According to Statista, social commerce sales are forecasted to soar to approximately $8.5 trillion by 2030. Retailers must continue to engage with consumers via social media to build and maintain a strong presence. One way retailers can do this is by posting content that is relevant to their consumers. According to the latest findings of Hootsuite, three favoured types of content that consumers want from brands on social media are something new, something funny, and something inspiring. While a potential TikTok ban in the US may slow the growth of social commerce, it is here to stay in the long-term.

Looking ahead

Over the next six months, some trends will persist while others might evolve. Consumer shopping behaviour continues to develop, and retailers who can embrace the change and adapt to it can thrive in the industry. Whether it’s becoming more sustainable, or creating seamless shopping experiences, retailers need to be able to meet consumer needs holistically.

Apple Vision Pro has opened up exciting opportunities for fashion retailers, creating possibilities for them to transform retail operations. From marketing strategies to in-store shopping experiences, fashion retailers are looking for ways they can use Apple Vision Pro to elevate different areas of their business.

According to recent surveys undertaken by Statista, approximately 18% of business owners in the UK are planning to invest in marketing experiences within Apple Vision Pro and intend to carry out virtual demonstrations. Undoubtedly, Apple Vision Pro brings exciting possibilities for retailers.

In this blog, we take a look at the potential ways the technology will transform fashion retail…

From Virtual Try-Ons to Immersive Shopping Experiences

 1. Virtual Try-Ons

Retailers can use the ‘spatial computing’ capabilities of the Vision Pro to facilitate virtual try-ons for clothing and accessories, providing customers with immersive views of how items will appear and fit in real life. Retailers can also enable customers to personalize products digitally, adjusting colors and sizes to their liking. This allows brands to enhance customer engagement and it provides valuable insights into customer preferences and behaviors. This immersive experience not only encourages consumers to make purchases in the short term, but the data collected from these experiences can also help retailers in their future product planning.

2. High-quality Customer Experiences

With Apple Vision Pro, retailers can provide shoppers with a unified platform to visualize products, read reviews, and check prices in real-time. This helps shoppers make confident purchase decisions, significantly increasing their satisfaction while reducing the risk of post-purchase regret and potential returns. Bringing together the advantages of both offline and online shopping, this technology allows retailers to maximize in-store sales through an integrated shopping experience.

3. Immersive Experiences

Apple Vision Pro enables retailers to create interactive and immersive product demonstrations. This technology transforms in-store displays into engaging and interactive experiences, prompting customer engagement and enabling shoppers to virtually try out various products. From virtual models showcasing various outfits to adding digital overlays that highlight product functionality, fashion brands can offer exciting in-store experiences for their customers. What’s more, retailers can use the technology to design creative virtual store layouts tailored for busy shopping seasons and festive occasions.

Whether it’s Christmas, Halloween, or a major sports event, retailers can adapt their virtual shopping environments to align with current trends. As a result, retailers can keep their customers engaged, increase in-store foot traffic, and stand out from their competitors.

Potential Bottlenecks

There is no denying that Apple Vision Pro has a number of benefits for retailers. However, one consideration that fashion retailers should take into account is the potential impact on the human aspect of their customer service. It is critical that retailers maintain a balance between technological reliance and human interactions. Customers have their own preferences for shopping, whether through a VR headset, with the assistance of an in-store associate, or to be left completely alone to browse in peace.

Fashion brands should view Apple Vision Pro not as a replacement for associates but as an additional technology option for customers. Ensuring high-quality customer experiences means providing choices and allowing customers to decide their shopping method. Retailers who are able to balance technology-centric experiences with human-led interactions will strengthen the possibilities of increased customer satisfaction.

Another key critical consideration is the logistical challenges facing retailers today and what they can realistically achieve in the coming years. The current price of Apple Vision Pro presents a hurdle, potentially causing retailers to hesitate as they evaluate the return on investment (ROI) for this technology. However, with glowing early reviews and the potential for retailers to harness its value, in-store implementations could follow, similar to the adoption of iPhones and iPads.

The fashion retail industry must consider the fact that virtual reality (VR) technology is still relatively unfamiliar to most shoppers, with limited adoption so far. As a result, any retailer who invests in VR early might see a slow uptake in in-store use of any headsets they deploy. It might become a waiting game to see which retailer takes the plunge first. However, if brands get their deployment right, early adopters could gain a competitive advantage.

What’s in the Future?

While Apple Vision Pro is in its early stages within retail, its future applications are promising. When combined with AI, Apple Vision Pro can enable fashion retailers to analyze data in real-time and provide personalized recommendations to their customers. This synergy will enhance cross-selling capabilities, leading to more sales opportunities and delivering customized, interactive in-store experiences.

Retailers can also integrate Apple Vision Pro with their store apps and mobile payment systems to leverage its image-recognition capabilities. This allows customers to scan items as they shop and complete transactions by just tapping their fingers together. This can create a mobile self-checkout experience, eliminating the need for checkout lines. The result? Retailers will be able to minimize in-store congestion, speed up transactions, and enhance the convenience and seamlessness of the customer shopping experience.

While there aren’t any strong deployments that strengthen the claim of Vision Pro’s usability in fashion retail, the gadget shows promising signs of making strides in the industry. As the technology advances, retailers must keep an eye out to capitalize on the innovation.

Looking to harness the power of cutting-edge technology to transform your retail operations? Get in touch.

https://retailvoices.co.uk/2024/06/how-can-retailers-maximise-consumer-loyalty/

Retail sales figures were estimated to have rebounded by 3.4% in January this year, signalling the largest monthly rise since April 2021. In order for retailers to capitalise on this increase in sales, they must prioritise boosting consumer loyalty. Not only does this help retailers ensure stability in the long-term, but it can also play a significant role in driving revenue, with BIA/Kelsey finding that loyal customers spend an average of 67% more per transaction.

Whether by delivering convenient and seamless shopping experiences or by offering personalised discounts, there are a number of strategies that retailers can use to retain customers and increase their loyalty. However, to ensure these strategies are seamlessly implemented, retailers should consider the importance of technology in facilitating the delivery of a top-tier customer experience.

The Need to Deliver Unified Shopping Experiences

Customers have unique and diverse shopping preferences, ranging from online, in-store and a hybrid mix of both. In order to deliver convenience to an array of consumers with varying expectations, and provide high-quality experiences that encourage shoppers to return, retailers must ensure they are delivering a well-balanced, omnichannel environment that integrates and caters to various shopper demands.

Consumers today want to shop on their preferred terms – through whichever sales channel they prefer. As a result, all channels a retailer sells through must be able to operate and communicate seamlessly in real-time in order to meet these expectations. Otherwise, retailers run the risk of creating delays in online orders, customer collections and wider stock distribution across all locations. Ultimately, this creates a fractured operation that only serves to frustrate customers.

In order to deliver an omnichannel experience, retailers must invest in a strategy that integrates online platforms with brick-and-mortar stores. From here they can deliver a diverse experience that caters to individual preferences and enhances overall brand loyalty.

Whether stepping in-store to browse and try clothes on, or buying online and picking up in-store when they have space in their busy schedule, shoppers value purchasing options that provide flexibility and enable high-quality experiences. An omnichannel strategy that delivers convenience can play a key role in creating customer satisfaction, and satisfied customers are more likely to return for another great experience.

How an Integrated CRM Can Facilitate Meaningful Interactions

Today, personalisation needs to be accurate and up-to-date. Something that was of interest to the customer in the past may not necessarily hold the same importance today. An integrated customer relationship management (CRM) system can facilitate the view of real-time data about evolving customer behaviour – from their purchase history through to their dog’s name. Personalisation is a key driver of customer loyalty, with consumers gravitating towards brands that understand their preferences and needs.

Having the ability to approach customers and immediately begin to tailor their shopping experience creates significant value. Drawing on previous interactions such as purchase and returns history, favoured items and shopping patterns, in-store assistants are able to customise their approach and make accurate and informed recommendations, all while making in-store visitors feel important to the retailer.

Installing an integrated customer management system allows retailers to set themselves apart from competition and show customers their dedication to providing a unique, tailored experience. Establishing an environment where consumers feel a level of dedicated service can assist retailers in building up their loyal customer base.

Streamlining the Checkout to Bust Long Queues

From self-checkout solutions to mobile Point of Sale (POS), there are many innovative technologies that retailers can deploy to streamline their checkout processes. This, in turn creates a hassle-free shopping experience for customers by reducing the time they spend waiting in checkout queues, which can be a significant barrier to consumer satisfaction and often leave customers abandoning purchases.

Leveraging the right technology to create a fast and convenient service is essential to retaining and building a loyal customer base. In a time where customers are driven by demand and instant gratification, they want to shop and purchase their items as quickly as possible. Adopting mobile POS technology can revolutionise the checkout process by allowing sales associates to complete transactions from anywhere on the shop floor, eliminating the need for fixed POS systems, and reducing wait times.

Alternatively, retailers have been adopting self-checkout solutions for years, allowing customers to scan and bag their own items for convenience. However, one technology transforming this experience is RFID-powered self-checkout. Utilising the scanning capabilities of RFID tags, retailers can facilitate automatic scanning of items within seconds, as soon as their basket is placed in a designated bay. While this streamlines the process for customers, fewer in-store associates are also required to be physically fixed to stationary checkouts. Instead, they can allocate more time to delivering high-quality customer service across the shop floor.

Creating a better, faster and more efficient check-out process encourages shoppers to return. Streamlining operations and removing barriers that lead to frustration for customers, and replacing them with seamless checkout experiences that can be completed in seconds will transform an in-store visitor’s shopping experience. By perfecting the final touchpoint of the customer journey, retailers can ensure shoppers leave with a smile on their face, and are encouraged to repeat that experience in the future.

Customer Satisfaction is Key

The customer is central to the success of retail. To continue to stay competitive in a saturated market, retailers must ensure they are adapting their business model towards their customers. This will play a crucial role in helping them to achieve their long-term goals. By integrating the right technology to streamline sales, personalise customer interactions and deliver services across a multitude of platforms, retailers can deliver high-quality customer experiences that drive significant levels of satisfaction and encourage loyalty.

Working towards creating a base of loyal customers contributes to a positive brand reputation with customers not only returning to make purchases in the future, but also recommending the store to friends and family, and driving new customers to the business. Loyal customers also provide vital insight and valuable feedback that retailers can use in order to improve their operations and overall experience. Overall, a loyal customer helps create sustainable growth and value from continuous spending, and technology plays a pivotal role in delivering that.