From Off-the-Shelf to Checkout: Challenges of European Retail Industry in 2018
Does “Black Friday” lead to brighter nights at retails stores?
EAN or European Article Number is just a number, not adding value to the sales figure; even after a price markdown, the sales are not satisfactory what a retailer wishes. We need some retail management solutions to fix this, don’t we?
“The thing is, I don’t want to be sold to when I walk into a store. I want to be welcomed.”
Angela Ahrendts, Senior Vice President of Retail at Apple Inc.
In the recent past, the retail markets have experienced a complete different trend. Customers are more focus over the experience factor; quality and price are other major factors.
Why we can say that the experience is one of the factors for overall footfall; we have fluctuating trends in the retail traffic to support the argument. In a survey of www.statista.com, the month-on-month change in retail traffic in the United Kingdom (UK) from February 2017 to April 2018 has a significant dip in from December’ 17 to January’ 18.
Earlier it was 14.7 % which came to -22.5%, technically -37.2% in a month. Retailers need to think over it, what they are missing.
“Black Friday continues to have its place firmly etched on the UK shopping calendar. We expect spend will continue to stagnate both sides of Black Friday in the future and that we’ll see a continued migration of shoppers from the store to online.”
Paul Martin, Head of Retail, KPMG in the UK
Source: Statista.com
Why just a single day in the whole year; do retailers know what is missing in the retail industry? This is a serious concern!
Convenience plays a vital role in our life, we have the convenience to get our food delivered at our place, watch movies and favorite tv series on our Smartphone, pay bills, even order parlor services at home. Did it replace the excitement of going out for shopping? The feel of wheeling your shopping cart in the bright alleys of packaged attractions and finally deciding to select your favorite stuff, that physical engagement is incomparable.
Actually, going out for shopping is a leisure activity, especially with your family and loved ones. When customers go out for shopping, it gives them time to spend with their family or friends; which in a way boosts the relationship. Thanks to the “Brick-and-Mortar” model, we still have hope for retail stores. Retail technology can’t be the permanent solutions.
In-store Vs Online or a bit of both
Experience is the key in the retail industry, so digital transformation in retail is a new concept in retail store; it says that a customer can visit the experience store of a particular brand, but need not buy it from there, rather order it online as per convenience from the store’s website or mobile app.
Offering ‘click and collect’ or ‘buy- online-pick-up-in-store (BOPIS) services’ is one of its forms, where retail stores or brands are offering their ecommerce website with “in-store experience” at the same time with a single purchase. Landmark Groups, the retail giant from Dubai have to enter into ecommerce business with its experience store concept. Where you just order online and collect it from store after experiencing the “physical-touch” of shopping.
Let’s have a look for the challenges in retails industry of European countries. Though, BREXIT made the difference, yet customer thinks more over their need rather to such factors. Experience is the first thing; we already discussed it, now coming to another one.
Retail price inflation has to take care of
The price inflation plays a role here. Customer are always price sensitive, giving a 5–10% discount can also push customer a bit to buy a product. However, increased price loosen up the interest of the customer and they look for options. There is a need to regulate retail price inflation.
SOURCE: MCKINSEY.COM
Discounts for the customer as they need more attention
We have observed from various customers experience that discount made them buy. This is true; the discount plays a decision-making factor here. And, the reason comes from an old theory “Price Sensitive”. Discount will be challenging for retailers.
Time is money for the customer too, did you know that
The lifestyle in 2018 makes it difficult for a customer to choose between time wasting and time investing. Customer prefers to save their time while shopping if they feel wasting time a retail store, they will drop it with online shopping.
Customer life journey should be seamless
Retailers need to understand that customers do shopping when, how and where they want to’ irrespective of products and brand. Here, providing information, revealing the truth about how products have helped users with the use of real stories and accurate data makes it easier for users to stay in the life journey. The digital transformation in the retail world gives the real-life experience using augmented reality.
These are the common challenges for retailers; this could be a significant turn of marketers to understand that whether a customer would prefer which channel for shopping. The “in-store” and “online” experiences should be in balance. GDPR could be in favor of retail store, because customers are more concern about their personal lives after all who likes to wash dirty linen in public. Retailers know that how to make sure that when a customer walks-in to buy a pair socks, then how to make them buy a two instead of one with a pair of new footwear.
