Showrooming And The Retail Revolution

There have been quite a few articles about the modern phenomenon of 'showrooming' recently, but can it really be blamed for the demise of the High Street?

 

Showrooming is where shoppers visit a store to try out the products before looking online for a better price and buying elsewhere.  I think we're all guilty of it, especially when making larger considered purchases such as electrical items.

 

Research by design agency Foolproof found that 24% of people showroomed while Christmas shopping - and 40% of them took their business elsewhere. (BBC News Website)

 

 

 

 

The downfall of High Street brands such as Jessops and Comet have largely been blamed on showrooming and as Jessops went into administration staff hung a sign saying "Jessops Staff would like to thank you for shopping at Amazon". However the High Street brands can compete as Dixons have shown with recent growth in their tablet sales in store.

 

Some stores overseas are now charging showrooming fees for customers wishing to come in and browse. Some speciality brands will be having less stores and more of a showroom type store to combat this trend as more and more sales are driven online.  It is ever more crucial now to be an omni-channel retailer and change the old retail model to suit consumer habits. On the flip side online retailers may well look at opening showrooms on the High Street with online retailers such as ebay opening seasonal pop up shops and Amazon looking into having a High Street presence.

 

Lots of multi channel retailers offer the option of ordering your goods online and picking up in-store  instead of waiting for a delivery, which might be missed. This example of using the bricks and mortar and online retail channels effectively by giving the customer flexibility and a quick turnaround on receiving items. It looks likely that these will be the survivors of the retail revolution that is happening at the moment, driven by technology at our fingertips and economic pressures. 

 

Book shops,  beauty and electrical retailers are the most at risk and retailers are quickly realising that they need to compete and close sales in-store. Some tactics retailers are utilising are offering added value services  and price matching, free wi-fi using technology to encourage customers to use their smart phones in-store, ipad or touch screen points.

 

The trouble is how many UK retailers are already embracing this new way of shopping? Can they compete with so many online retailers offering the same products at excellent prices? Are they ready to change and offer consumers the experience they want?

 

One thing is for sure we have seen some iconic brands fall to the wayside because they were not quick enough to respond and change with customer shopping habits and any retailer that isn't already implementing a showrooming strategy will be at risk of also falling behind and losing its customer base.

 

We are installing more and more interactive information points and display materials designed to encourage customer interaction online and with the brands social media. There are lots of brands getting it right and making sure the in store experience fits with how customers want to shop and we are happy to be working with those brands to ensure that bricks and mortar is still an attractive prospect for consumers.

 

 

 

 

 

 

 

What's app you say? Easter fun in-store!

The last couple of years has seen a change in the interactivity of point of sale signage and mobile technology. As companies find their feet with the use of apps, with varying degrees of success, it seems the supermarket chains have really found a way to make it work this Easter.

 

We recently installed Easter floor graphics nationwide across Asda stores which work in conjunction with the Easter themed app aimed at encouraging shoppers and their children in-store.

 

http://your.asda.com/news-and-blogs/meet-the-easter-bunny-at-asda

 

Once the Asda shopper app is downloaded, customers can use it to follow the Easter bunny around the store. At the end shoppers can take pictures of their children, upload it and be eligible to win a £100 prize.

 

 

It's one way to keep the kids happy whilst in-store and certainly will be encouraging plenty of Easter themed sales.

Tesco's have a slightly different take on it and have an online Easter egg hunt using Street View on Google Maps. Thousands of eggs are hidden - find three and win a chocolate prize and then hide some yourself! With golden eggs promising the chance of winning a Samsung Galaxy Tab 2s.

https://www.tescofindtheeggs.com/

 

2013 - A Year of Change for Retail?

We're a month into 2013 and already we have four major chains in administration. There's no doubt harder economic times have an effect on the High Street but I think these stores are also now outdated as consumer shopping habits have changed, preferring online services across all of these industries.

Most of us keep our photographs in digital formats these days and prefer to shop around for the best deals online. Amazon had a booming Christmas, reporting record Christmas takings of £13 billion so it's no surprise the High Street is suffering. Blockbuster Video is also a victim of being pushed out by Amazon owned Lovefilm, as well as other services such as Netflix, allowing films to be streamed online or posted out directly, as is HMV with consumers preferring itunes or other mp3 or mp4 downloads. It's the same for electrical retailers - we may well go in store to have a play and a look at the item we want but we'll still go and see what the best deal we can get online is.

As we embrace the digital age the way we have always shopped will change, and harsh economic environments only serve to make that happen sooner rather than later. There is some hope for the likes of HMV as the music industry doesn't want to see its only high street chain go but it really will be paying lip service to the iconic brand, and likely will see less stores across the UK.

 

With expensive rents and rates the High Street cannot be as competitive with companies that have less overheads and extensive distribution channels. The lack of UK based tax revenue is another issue entirely, however it doesn't seem to have affected Christmas sales figures for certain companies.

 

Retail has seen many changes over the years - consumerism drives that change, whatever the economic climate. For the big brands it's about flagship stores, retail parks, and shopping centres, and of course we have the supermarket dominance which make installations all the more innovative and interesting as we fill larger spaces. I think we'll see the High Street change and shrink as big brands steer towards the above, driving rents down on the High Street and making room for independents and a whole different kind of experience on the High Street.

 

 

The Best Christmas Window Displays 2012

We have completed most of our Christmas installations, the Ruck offices are looking very festive and with the snow coming down this week we can't help but feel in the mood for Christmas!

 

There have been some beautiful Christmas window displays this year. It seems every year they get more imaginative and major stores in London compete for the kudos of unusual and fascinating displays - always fun to install too! Here's a selection of window displays we love to get you in the mood for Christmas!

First stop has to be Harrods who have gone for a Disney theme this year - magical!

 

 

Click  Here To See The Harrods Disney Themed Christmas Window Displays 2012

 

 

The Making of Selfridges Christmas Windows - Installations
 

 

 

 

 

The Delicious Rotating Window Displays at Fortnum & Mason
 

 

 

 

Other Favourites are Hamleys, John Lewis and Liberty London!

 

Well that's got me in the mood for Christmas Shopping!

Looking at Scotland's Retail Performance on St. Andrew's Day!

It's St. Andrew's day today, Scots up and down the land will be sporting kilts, eating haggis and enjoying a wee dram. A nice little boost for retailers as the country celebrates but how has the Scottish retail sector been performing in comparison to the UK as a whole?



Buchanan Galleries, Sauchiehall Street, Glasgow

With some of the poorest areas in the UK, high unemployment, and large public sector cuts it's not been an easy year for retailers in Scotland as consumer confidence flags. Scotland has the largest public sector employment by population than anywhere else in the UK and facing tough cuts, this seems to be partly to blame. People are just not spending. The last couple of years has seen Scottish retail perform less well that the UK as a whole.

Things have picked up in October with sales up by 1.1% on the same period last year for the UK however it's a different story in Scotland with retail sales down by 2.8% according to the SRC.

Fiona Moriarty, director of the SRC, said: "This really wasn't the result retailers wanted. September's modest sales boost offered some cause for cautious optimism, but continuing concerns about the economy led many customers to batten down the hatches again in October."

It's not a good sign for Christmas trading and quite rightly the SRC and Scottish retailers are worried it is an indication of poor retail sales to come for the Christmas trading period. We do a lot of installations in Scotland for large chains who can carry regional slumps in sales, but the independent shops will be suffering the most. Let's hope the celebrations today raise the spirits and revive the Christmas shopping season for Scotland.

Happy St. Andrew's Day!

St. Andrews Day History & Tradition:

St. Andrew is the Patron Saint of Scotland - his day is celebrated on the 30th November in Scotland and has been an official bank holiday since 2007. It is an official flag day, flying the Scottish flag know as the Saltaire.

The day is celebrated by all things Scottish - lots of food (haggis), music (bagpipes), dancing and concerts (ceilidhs), and parades, fireworks and other various activities which happen all week in the run up to St. Andrews day, as well as church services in honour of St. Andrew.

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