Retail

Retail

We have seen a surge in online shopping and social commerce (purchasing via a social media platform) which offers shoppers an even more seamless way to shop online. Instead of clicking through to a third-party website, users can make purchases directly from the social media app or site.

The stores of 2021 and beyond are also likely to look vastly different; they may be repurposed as local fulfilment centres or ‘studio stores’ that double as a space from which brands deliver livestreams to boost sales or host personal virtual shopping. On the high street, pop-ups could find a new lease of life attracting brands that are normally found in city centres.

Given the rapid pace of technological advances and social transformation, expectations for outstanding customer service and experience are now being set by the customer. Sustainability, is today becoming more widely recognised as a source of competitive advantage that can help drive top-line growth. Retail of the future will be heavily affected by technology and it will be essential for retailers to navigate the transformation and meet consumer needs.

Across industries, technology is reshaping operating models, and nowhere does it touch us more directly than when we shop. As consumers, we see how our changing behaviours and preferences are reshaping the entire retail landscape. The United Kingdom is further ahead in the adoption of online shopping than the rest of Europe but retail margins have fallen due to competition and the cost of omnichannel operations. Retail is the largest private sector employer in the UK (accounting for circa 10.5% of all jobs – circa 3 million people – source Oxford Economics).

Technology is therefore a strategic imperative for UK retailers if they are to stay relevant and profitable. The retail experience of the future will be propelled by physical technology and advanced analytics to meet changing consumer expectations, while allowing retailers to reset their operating models and economics.

The business case for a technology-enabled “reboot” is strong: a holistic transformation could improve UK retailer margins but navigating the transition, however, will take more than a narrow focus on technology. Successful firms must create an integrated road map that includes a strategic plan that co-ordinates the complex organisation wide transformation process.  This is particularly challenging in more traditional retail environments where they are working with old legacy models.

The future retail experience should be designed around an infrastructure that allows consumers to transition seamlessly between channels. New ways of working and accessing work, along with falling costs, open the possibility of more efficient, flexible, and effective operating models. As the operating model changes, so will the demands on labour, and the transition will require active management. Many external vendors can help design, deploy, and maintain automation, artificial intelligence and other technologies.

With technology, they will unlock new levels of customer engagement, a more sustainable profit-and-loss ratio, and unprecedented employee flexibility. Those that want to be among the winners should begin their reboot today.

One of the biggest growth areas for retailers is the partnership opportunities with tech-based delivery companies. Following in the footsteps of the likes of Morrisons and Marks & Spencer, Holland & Barrett and Booths have both joined forces with Deliveroo to bolster their customer reach during lockdown.

We work with

Our clients span High Street Retailers, large scale Out of Town Retailers, the Grocery Market, Food Delivery, Department Stores, Luxury Retail and Pureplay.