Retail in Review (May & June): Rebound, Collaboration & Immersive Shopping

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.