MARKET REPORT Retail
“An omnichannel approach to retail is clearly required by consumers. The customer journey invariably
starts online
enabling the customer to research the product and look for the best price.”
Mike Buley, Consumer Manging Director, Exertis
Retail makes a comeback?
The High Street has been experiencing diffi culties for some time. As people become more comfortable
ordering a number of different items from e-tailers the Channel must prepare themselves for a new
opportunity. In this feature Comms Business looks at the future opportunity in the retail sector
Idon’t think there are too
many high streets without at
least a few boarded-up units
right now and its easy to see
why. Amazon announced its
latest gures recently which saw
the online retailer announce
‘record breaking’ gures for the
holiday season, their third-party
seller revenue saw an uplift of
over 25 per cent alone in Q4.
e UK’s e-commerce
market is expected to continue
to expand, with a forecast
growth rate from 2019 to 2023
of 5.9 per cent. As a result,
e-commerce businesses are
rapidly growing their o ering
and expanding distribution in
order to meet demand.
Tony Rich, Head of Global
Propositions & Industry
Verticals, commented “ e
decline of the high street is still
one of the greatest challenges
for retail. However, e-commerce
is experiencing growth.
As with many sectors, nding
a USP can be a challenge for the
retail sector, how does a store
di erentiate, and not just with
its high street competitor, but
with online shopping?
e key to nding this
USP and in helping decline,
particularly for the high street
is to provide experiences for the
customer. Draw them in with
something that entertains, that
engages and keeps them onsite.
Technology can play a big role
in this.”
Mike Buley, Consumer
Manging Director, Exertis
added “An omnichannel
approach to retail is clearly
required by consumers. e
customer journey invariably
starts online enabling the
customer to research the
product and look for the best
price. e nal purchase can
either be online or in-store
and that nal decision often
depends on the type of product,
cost of the purchase, delivery
requirements and whether the
customer wants any one-to-one
advice on the purchase.
Whilst online shopping
continues to grow, the online
share of retail sales for durables
(largely IT, CE, SDA, MDA) is
around 30 per cent according to
GfK. Physical stores still have
the advantage of enabling the
customer to handle the product
and, providing it’s in stock,
gaining instant access to it.
Consumers will expect retailers
to have an inventory system that
enables them to track products
in real-time and provide that
information to customers as
well as a system that enables the
retailer to order and arrange for
either home or store delivery of
any out of stock item. Aligned
to that, consumers will expect
to be able to buy on-line and
pick-up in-store, buy on-line
and return in-store and nally
for stores to be able to ship from
store to store for any branch
with an out of stock item.
Retailers will also need to
cater for consumers that not
only search on their mobiles for
product information but also
want to purchase from their
smartphone. A mobile enabled
website is obviously important.
“John McKindland, National
Sales Manager (Solutions),
Nimans says “Technology
is playing a bigger part in
retail than ever before. From
loyalty schemes and contactless
payment to security cameras,
retail analysis and AI – as
well as traditional comms.
Everything is cost driven now
as margins become tighter and
tighter – but it’s not always
working.
For example there’s been
some high street multiples who
have dabbled with connected
© Blue Planet Studio-stock.adobe.com
John McKindland, National Sales
Manager (Solutions), Nimans
24 | Comms Business Magazine | March 2020 www.commsbusiness.co.uk
/Studio-stock.adobe.com
/www.commsbusiness.co.uk