The Retailers Christmas Adverts Are Out!

It's that time of year when all the major retailers release their Christmas adverts!

 

This year there has been a fair bit of criticism for a couple of major retailers. Firstly Waitrose donating their Christmas advert budget to charity whilst John Lewis go to town on theirs received a mixed reception, and being part of the same group that message seemed to be conflicting for a lot of people. However as John Lewis pointed out the two businesses are operated separately and have their own unique values and culture.

 

 

So was the Asda advert sexist? Mum's and women do a lot of running about at Christmas, just as Dad's and men do, and focusing on one gender and not another does not by default make an advert sexist. Any retail analyst will tell you that for most FMCG retailers the purchasing power is heavily with women and reaching out to busy mother's is not unfamiliar ground, after all Iceland based their whole campaign for many years on 'That's why mums go to Iceland'. 

 

John Lewis have a snow romance on the go to the Power of Love by Frankie Goes to Hollywood. I don't think it's had the same impact as their adverts over last couple of years have had. It's hard to buy into snow boy meets snow girl and must go to any lengths to get her a matching scarf and glove set for Christmas, even if the music is great. I think the award winning tug at the heart strings advert of last year's little boy was magic, if a little sentimental...but if you can't do sentimental at Christmas...when can you! John Lewis only started TV campaigns in 2007 but they seem to have become and institution already and eagerly awaited.

 

M&S, Tesco's and Boots have dropped the celebrity appearances in their adverts, it seems the recession is causing retailers to not be too overtly flashy with their Christmas adverts.

 

 

 

Littlewoods came under a lot of criticism last year for its myth busting of Santa Claus, this year they seem to have brought him back to life, fronted by an angelic looking Myleene Klass.

 

 

Just a few of the Christmas adverts by the clients we work with - there will be plenty more to blog over the next few weeks, as the installation of supporting in store POS materials is currently being rolled out nationwide. Christmas is well and truly on its way!

 

 

Digital Signage in Retail - Guest Blog by Sarah Allen from Acquire Digital

There is a shift towards digital signage in the retail industry. We are experiencing more and more installation enquries for digital display and point of sale so I thought this week we'd take a look at the changing face of retail signage, and discuss what the future holds with our first guest blog.

 

We asked Sarah Allen, Senior Marketing Executive from Aquire Digital, a few questions about digital signage in the retail sector and how they are providing innovative digital displays.

 

At Acquire Digital we believe in enhanced communication.  We specialise in the creation and develop of digital display solutions that contribute to improved communication and an enhanced user experience.  We provided end-to-end solutions creating both the digital programme and content for digital interactive applications.

 

 

 

 

 

 

 

 

 

1)    What types of digital display do you typically supply to the retail industry?

 

We develop and supply solutions such as, digital menu boards, digital point of sale, interactive kiosks, Wayfinder solutions, and virtual receptionists which are commonly used on digital displays such as touch-screens, kiosks, flat screens or video walls.

 

 

2)    What are the new technologies that you feel will be used in retail in 2013?

 

Over the last few years we have witnessed a huge increase in the demand for more innovative and interactive solutions for retail environments. This can be attributed to the advances in technology and the ever growing competition with online retailers.  More and more consumers are shopping on-line where queues are thing of the past, so a lot of retailers are implementing a queue management system which helps entertain waiting customers as well as manage queues through the ‘Call forward’ system. Customers take a ticket and then wait until the next cashier becomes available.

 

Because consumers are very tech-savvy these days, many customers have almost come to expect a certain element of digital in their shopping experience. for example accessing product information on a touch screen or seeing promotions being displayed on digital boards.  Many retailers have started to implement this and it is proving to be successful at increasing dwell time in shops and increasing engagement between brands and customers.  

 

The latest technologies that we have started to use is Near Field Communication (NFC), Interactivity, audience recognition and GPS location based advertising in a bid to maximise interaction between retail brands and their consumers.

 

 

3)    How do you measure ROI on digital signage?

 

Many digital solutions that we design and implement grow from a desire to increase interactivity and engagement or to add value to the in-store customer experience.  It is therefore difficult to report on tangible, monetary ROI in relation to these objectives.  However, it is important to highlight the benefits of providing a service to customers that is unique, memorable and one that adds to the unrivalled experience of dealing with your business.

 

There is also the investment element of installation in digital systems. The messaging and campaigns on digital displays can be changed at any time remotely so the cost associated with printing posters, distributing them and installation is reduced. Instead, digital allows you to update artwork/content and deploy in to an unlimited amount of stores world-wide in a push of button.

 

Our software will also measure how many views it has received which can also record audience age and gender for those who require specific monetary return on investment.

 

 

 

 

      Many organisations have reported that the installation of self-service kiosks or digital displays has helped to save staff’s valuable time and therefore money. Kiosks and displays that help customers locate places and products, or allow them to book onto activities in a leisure park, for example,  eliminate the need for staff to be on hand to do this for them.

 

 

       4) How does the interactiveness of an application impact on sales?

 

Interaction between brands and consumers is hugely important and cannot be underestimated. Consumers are tech-savvy these days and hand held devices such as tablets and iPhones means that retail outlets are competing against the online world, where prices comparisons can be made easily, orders can be made instantly and customers generally serve themselves.

 

Interaction provides this autonomy whether it is serving yourself, locating things for yourself or just generally browsing at leisure. Interaction is still regarding by most as being innovative and consumers like to see brands align themselves with innovation and technology as it means that they are cutting-edge and forward thinking.

 

5)    What typically is the life cycle of a digital project?

 

Hardware, such as TVs, monitors, computers will eventually become obsolete and can break so we always advise to check the manufacture warranty. However, software or the Content Management systems that we build are a little different. We continually assess and develop the technology that we provide so that our solutions remain cutting-edge, fresh and innovative. All of our software packages are continually being upgrades and upgrades can be made automatically over the internet.  The great thing about working with digital is that changes can be made remotely and as often as you like meaning that solutions don’t really have a life-cycle because tweaks, or even larger developments can be made remotely.

 

Software as a whole is an invaluable investment for advertisers and communication managers due to the ease of making future up-grades and the adaptability of software.  Software unlike anything else is virtually future proof and can be continually developed to satisfy client needs and objectives without the potential risks of a lengthy and expensive overhaul of existing software systems. 

 

6)    In your opinion what will the next big thing in digital signage for retailers?

 

Near field Communication is definitely one to look out for but I personally think that NFC is a bit of fad, much like the QR code scanning. What I think will really become big is the ability to integrate social media profiles into the real world.  For example, retailers that have a twitter account could allow customers to Tweet to that account, to generally send comments, recommendations and feedback.  Shops can actually display their ‘Tweets’ in store to allow their customers to see their ‘Tweets’ on the big screen.

 

To view an article recently written by Sarah Allen called 'Bringing the Online Experience Instore' please click here: http://www.acquiredigital.com/NewsStory/onlineinstore

 

High Street Retail - The Ups and Downs

Following on from the last blog on the expansion of Supermarkets it was interesting to see the figures in the news this week on the rate of shop closures. Figures for July & August suggest that High Street shops are closing at a rate of over 30 per day.

Past over expansion for many retailers has seen them close shops as consumer spend reduces and customers shopping habits reflect a preference for free parking in larger, out of town centres or on retail parks. Some of the large retailers that went into administration this year had previously over expanded and had too many retail outlets.

 

Data from over 500 towns showed that clothes, toy, gift, jewellers, furniture, card and computer game shops were the type of retailers likely to be closing whereas charity, coffee, pound shops, discount stores, pawnbrokers, betting shops and convenience stores are opening in their place.

 

However retail sales overall were up in September as back to school and winter clothing sales contributed to an  increase of 0.6% in comparison to last months decrease of 0.1%. Compared to this time last year figures were up overall by 2.5% for September. Better weather and the end of the Olympics have seen customers return to the shops, but also this week we have had employment figures released showing a large decrease in unemployment numbers in the last three months.

In recession consumers are more careful when they spend, they want a bargain and to know that they are getting value for money and will search out the best places to go. Many big name retailers are what bring people in to town centres and supports the hub of other local, independent shops so losing them has wider implications for local economies.

 

 

Some good news and some bad for British retail. It certainly seems to be a time of adjustment as economic conditions push retailers in to administration, to reduce their estates and to take a long hard look at their strategy. On the other hand the retailers that are getting it right such as John Lewis that saw an increase in sales of 16.2% last week are profiting. The Olympics didn't work for most retailers, the terrible summer and recession has all impacted.

Supermarket Expansion - What is Really Happening?

 

It seems like in every town now there are new building projects happening that are set to be new supermarkets. All the major supermarkets are investing in new stores across the UK with an increase of 20% by 2014 expected just a year ago. With a new store opening or an expansion on an existing site happening every day, and on a scale we've never seen before, when will the rise in bigger and better and more supermarkets stop... how much is enough?

 

What does this mean for the consumer? Better access to their favourite choice of supermarkets, or less choice as the big names take more of the market share and impact on local independent retailers? 97% of all grocery spend is now with supermarkets.

 

The beginning of the recession had a positive impact for supermarkets, as other retailers go bust more money is spent with the supermarkets. Empty shops and pubs in key locations helped them acquire High Street sites for development of smaller express style stores. However 80% of the expansions are set to be out of town, larger developments. Supermarkets are no longer just grocery stores - the move towards large scale retail sites allows them to also increase on the range of clothing, electrical, home and entertainment items. Morrisons is catching up the other big three this year and next moving from a grocery based business to a lifestyle supermarket retailer with plans to extend its non grocery offering and introduce a new line of clothing in-store.

 

 

Although Morrisons has recently eased back on its expansion drive, Tesco too - having previously been pursuing the goal of having a site in every postcode area, as well as Sainsbury's and M&S. The recession has impacted longer term on commodity prices and along with higher fuel costs, poor harvest crops this year, and with government spending cuts set to continue retailers are being more cautious about their spend on expansion.

 

 So the upshot is that whilst supermarkets are still going ahead with expansion plans they are not going full steam ahead as they initially planned, and the 20% extra that was previously expected to happen has slowed considerably this year. The expansion plans are always good for supply chain companies like Ruck Retail, offering plenty of opportunity to install in new developements across the UK.

Fair Rates for Retail Campaign Starts Today!

With business rates set to go up again this year High Street retailers have asked the government to look at how business rates are calculated for the retail sector. With more shops every day standing empty and the current difficult economic environment another hike in rates would not help to stimulate the retail sector.

 

The Fair Rates for Retail Campaign is being launched today by the British Retail Consortium and Retail Week, and Ruck Retail Solutions have already pledged our support as suppliers to the retail sector.

 

The last two years has seen rate increases of more than £500m to the retail sector, and the expected increase next year will add a further £200m in costs for retailers. With many chains struggling with a multitude of factors in this recession such as  higher priced raw materials, higher distribution and operational costs, quarterly rents and cash flow, combined with lower consumer spending, taking another hit on business rates it seems is a hard pill to swallow.

 

 

 

 

Currently 28% of business rate taxation comes from the retail sector so it's important to the treasury as a big source of revenue. However retailers are asking the government to look at the bigger picture here - the more they pay in rates the less they will have to invest in town centres that desperately need a face lift, create jobs and invest in the business. With the Government looking into ways to revitalise our flagging High Streets, surely the two campaigns must work hand in hand with each other.

 

Of course it hits the independent small retailers harder but with more big chains struggling this effects retailers across the board.

 

BRC director-general Stephen Robertson said: “The most important four-letter word in Westminster should be jobs but another £200m next year can only lead to more closed shops and fewer chances of work for those, including young people, who need it most.

“The Government must act on its promise to review the system. And it should recognise that retail has already more than made its contribution by freezing rates in 2013.”

 

To sign the petition and pledge your support please visit here:

 

http://www.retail-week.com/in-business/fair-rates-for-retail/

 

 

 

From Catwalk to High Street - The Fashion Cycle

With London Fashion Week having ended High Street pattern designers will be scurrying around like mad to get the latest trends and styles interpreted for their next season collections. Designs will be sketched up and out to their manufacturers within days, and the collections ready for the next season.

 

Primark famously boasted that "Once a style is identified it can take as little as 6 weeks to reach stores" and the likes of Zara, having their own manufacturing and distribution, can have catwalk inspired items in store within 2 weeks. Technology is speeding up that process, with designers often streaming their shows live and of course the LFW website has videos of all the shows uploaded pretty quickly. Social Media has opened up communication across the globe and sees outfits tweeted and talked about within minutes. Retailers can see easily what's trending and being talked about, and pick up on what's going to be hot for next season.

 

We don't realise just how much our clothing and style is influenced by the catwalk shows. Looking at some designs you'd wonder how on earth anyone would wear some of the more outlandish collections, but those ideas filter down to more wearable fashion in the High Street stores...style and colour trends in our shops are all inspired by the designs on display at London, New York, Paris and Milan.

 

 

 

 

You won't find High Street retailers attending the fashion shows, strictly the reserve of the media, photographers, high end boutique or niche stores and of course the who's on the 'Frow'  much talked about celebrities. However some High Street brands are making it on to the Catwalk more recently, such as Topshop and Victoria's Secret. Topshop have collaborated with many top designers and celebrity collections have helped to bridge that chasm between high end designer fashion and High Street.

 

Earlier this year a report commissioned by the British Fashion Council on the "Value of Fashion" was presented to the House of Commons, which was the first comprehensive report of its kind, looking at everything from the top fashion houses to low priced retail chains, taking into account manufacturing, wholesale, retail, media and marketing businesses across the fashion sector. Fashion is the 15th largest industry in the UK directly employing 816,000 people, which then makes it the second biggest employer by sector.

 

The report concluded that the fashion industry is now worth £21 billion a year to the UK economy, with LFW being a big part of that.  It could be worth as much as £37 billion in its wider context when tourism and industry related businesses are taken into account.

 

So LFW is over for some but for the industry it's just kick started a hive of activity as retailers rush to get their versions of what's coming off the catwalks into store.

 

Some of the highlights and designs that inspire what we will be seeing in-store soon.

London Fashion Week Kicks Off Today!

It's London Fashion Week again! Starting today, no sooner have the Paralympics finished and all the Olympics displays are taken down and we're into LFW already! This is the busiest quarter of the year for retailers and LFW really does get us all in the mood for shopping!

So what do we have to look forward to  style wise, filtering down to designers in-store on the High Street for Spring / Summer 2013? It's the catwalks at London Fashion Week that typically inspire ranges across chains of cheaper High Street shops and supermarkets. The fashion we wear up and down the nation stems from the designs being marched up and down catwalks this week.

With Topshop leading the way High Street brands are making their mark on Fashion Week and for the first time this year Topshop are offering a purchase service from the show itself.

Here's a nice little preview from LFWTV on what we have to look forward to over the next five days in this trailer film created by the winner of the Fash/On Film Mentoring Scheme. A new nationwide search for emerging film-making talent launched in June,  where one talented young person is selected to collaborate with the fashion industry to showcase up and coming designers, to be shown  in full at LFW, sponsored by River Island:

A short film celebrating London Fashion Week performed by Spellbound Gymnast Troupe to showcase the best of British catwalk designs SS13 filmed in time lapse in the fountains at Somerset House, by the Guardian:

The show started with Antoni & Alison, complete with marching brass band, reinforcing the year of the British! Films of all catwalk collections can be seen on LFWTV:

Fyodor Golan explain the inspiration for their catwalk collection and an interview with Hilary Alexander, just a couple of highlights from the day, by 55TV:

Watch this space for more on London Fashion Week!