Dossier retail - Insights and trends from the retail world

DOSSIER RETAIL Insights and trends from the retail world

curated by Matteo Melani

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E-commerce and hospitality, the case of FnacDarty

Gap Home, the home goods collection distributed by Walmart

With the boom of online purchases, even the shopping experience will have to take into account the needs of customers and Fnac-Darty’s strategy goes in the direction of humanization.

In addition to advertising your brand, e-commerce can be a tool for launching brand new products. Walmart and Gap recently signed a partnership to launch Gap Home, a collection of home goods that can be purchased exclusively online at Walmart’s website.

This is a first, as Gap has never expanded into other areas. “We are thrilled that Gap has selected Walmart as its exclusive retailer to debut its national brand. A hallmark of American fashion, Gap is the ideal partner to bring its timeless and unmistakable style into the modern home to help customers design and decorate beautiful living spaces,” said Anthony Soohoo, executive vice president, Home, Walmart.

Gap home’s launch collection will contain more than 400 affordable home decor, tableware, bedding and bath items. Gap Home embodies the brand’s casual, modern American style in quality materials like denim and chambray, and unique finishes that wink at sustainability.

Gap Home’s new seasonal and special collections will be released throughout the year and will be developed in partnership with Gap’s licensing agency, IMG. Certainly, throughout the year, Walmart will reserve promotional offers or discounts for regular customers.

In short, a co-branding operation between two excellences of the American market. In the last few years,” said Soohoo, “we have focused on expanding our home assortment to offer our customers high-quality homeware and decorations, and Gap Home is just the latest of many initiatives.

In fact, the group has created Everyday, a strategy for the enhancement of online business activities that, besides customers, has also involved retailers. In fact, on its website, it has included video and written content to better inform.

Over the past year, they have grown to more than 70 sessions with nearly 300,000 live views on the site and social networks. The videos were also watched on a delayed basis, with over 3 million views on the relevant product pages. The live broadcasts were presented by of influencers or Fnac-Darty salespeople. “Offering an innovative yet expert omnichannel experience is our goal,” said Samuel Loiseau, director of customer and business development for the group.

“Allowing customers to come into direct contact with salespeople via chat or video-he concluded-it was like being inside one of our stores.”

In short, if the pandemic has led to the closure of stores, with the direct and chat, customers have been able to stay in touch with the brand.

Retail professionals were also able to attend demonstrations and refresher courses on both products and organizational innovations. In this way, once back at work, employees felt less of a forced rest and resuming work was smoother.

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RETAIL, THE NEW CHALLENGES OF SHOPPING MALLS Thanks to their wide-open spaces and variety of stores, shopping centers play a major role in retail sales. In addition to traditional shopping, malls also offer customers a place to share and be entertained, to go to the cinema or gym, or just by take in the many faces and restaurants, while walking the aisles.

THE CHANGE BETWEEN TRADITION AND INNOVATION The evolution of shopping centers reflects the transformations of society as a whole: income of individuals, trends, working hours.

Over the last thirty years, department stores have grown both in quantity (in Europe there are more than 160 thousand shopping malls), and in quality (with the presence of specialized retailers, playgrounds for children and transport services for those coming from afar). In 2021, however, the changes require an even faster evolution, without sacrificing the value of what is on offer. A study done by WD Partners identifies two levers that will push change: digital and entertainment in physical locations. As far as digital is concerned, e-commerce is an engine for the growth and visibility of the shopping center. The latest Cyber Monday recorded 10.8 million dollars in sales, with a decrease (also due to the pandemic) of 49% of traffic in stores.

And Black Friday also saw online purchases prevail over offline ones.

Despite the current situation, online will not replace the concreteness of the real world shopping experience. For example, over 60% of respondents stated that food is the main attraction in shopping centers. In addition to restaurants, shoppers’ interests also focus on agricultural markets and take-away points. After food, well-being is the second need that drives both young and older people to shopping centers, while for some, the search for a coworking station is another good attraction.

AN EXAMPLE FROM SINGAPORE As illustrated by WD Partners, online commerce remains complementary to offline retail business. But in contrast to this principle, IMM (International Merchandising Mart Mall), the largest shopping center in Singapore, launched all its stores on Shopee, the leading e-commerce platform in the country. The virtual mall aims to accelerate the digitization of IMM retailers and help them increase their online presence. In addition to international brands, IMM has also included small brands in the project that had never opened an e-commerce portal before. In addition to individual retailers, the initiative has also increased brand awareness of the shopping mall, increasing the volume of sales and deliveries.

BUY, LEAVE AND WORK With the outbreak of the pandemic, many companies have given their employees the opportunity to work from home.

But there are many people who also work freelance, in fields such as advertising, graphics, or translation, and therefore can manage their own time and workspace as they like, working anywhere. In response, shopping centers in many countries have created their own coworking areas. In Italy, the most recent to create coworking stations is I Gigli shopping mall which, together with Findomestic, has opened an area for studying and working. The rooms include tables, chairs, power sockets and access to Wi-Fi so, whoever wants to finish a job or consult some handouts before shopping can book a station and work.

For shopping centers, the road to the future also includes the past.

Today, however, shopping attitudes are changing, and consumers are looking for new experiences. The restrictions due to Covid-19 have accelerated practices such as click and collect, and delivery, which until a few years ago were the reserve of just a few companies.

Nonetheless, the in-person sales experience is still preferred by consumers, especially because after a year of confinement the desire to go out is overwhelming. Therefore, to remain in the market, companies should not eliminate physical shopping centers, but update them to make them more appealing to customers - starting with leisure areas. An example is the Cammin de ‘Gigli shopping mall, named in honor of Dante Alighieri. Its leisure area encompasses more than 2,700 square meters of the I Gigli shopping center, and consists of an elevated avenue that integrates and harmonizes the various areas of the entire zone. The project’s distinct design was created by Design International studio: “These areas, surrounded by greenery, offer new services for the public, relaxation areas, co-working areas, restaurants, and a large playground area to entertain children, with a dinosaur theme, “I Giglisauri”. This latest step from a traditional mall aims to bring added value to the current commercial offer. Some of the key elements we used were natural materials, greenery, ‘urban’ design, and a look inspired by open spaces. We also installed lighting that created subtle cinematic effects”, explains Paolo Bianchini, Design Manager of Design International.

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Mall of America, all the secrets of the first stars and stripes mall After the closures due to Covid 19, the U.S. is returning to normal and Mall of America has taken advantage of it to modernize its spaces

Despite the pandemic causing significant losses, Mall of America continues to be America’s number one mall and is attracting new customers with reopenings. In addition to upgrading existing stores and attractions, the chain’s ownership has implemented a format redesign.

From Minnesota to Florida, several shopping centers have adopted changes. Beginning with the opening of a signature M&Ms store, where in addition to packaged candies you can also buy gadgets and clothing. According to the first available data, more than 25,000 shoppers visited the store during the opening weekend of May 1-2.

Numbers show that by focusing on novelties and historical brands it is possible to recover greatly after a bad period like 2020.

A mall, however, is not just a place to sell, but also a tool to win the attention of those who don’t intend to buy. Wandering around the Malls of America it is possible to have different experiences and on the fourth floor there is The Fair on 4, a leisure area suitable for all customers (from families with small children to groups of friends to couples). There you can eat in one of the restaurants (also selfservice) or drink a coffee or a beer in one of the bars. Besides eating, it is also possible to have fun on the go-kart track (one of the few indoor tracks in North America), suitable for both beginners and experts.

If, on the other hand, the customer is looking for a quieter form of entertainment, he or she can sign up for a dart-throwing course.

But The Mall of America wouldn’t be the first shopping mall if it didn’t have its own cinema. After a 2018 renovation (with state-of-the-art audio and video technology and leather recliners), it also added a bar serving pizzas, burgers and handmade milkshakes. Along with other multiplexes, Mall of America’s cinemas is among the few that have climbed the ladder since the pandemic. Hotels located near the mall have also taken advantage of the lockdown period to modernize their facilities and forge partnerships to better serve customers.

In short, while Covid was a dramatic moment for several companies, for Mall of America it was a time to rethink its strategy.

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RETAIL, NEW TECHNOLOGIES IMPROVE SALES EXPERIENCE If until today we were convinced that innovating technologies and human contact would not go so far, then we should reconsider this position. In recent years many retail chains have been equipping their stores with new technologies that meet customer needs and accelerate business transactions. These upgrades involve every step of the retail process: from marketing to selling and paying.

SELF-SERVICE IN TRAVEL RETAIL While speed of purchase is a necessity for traditional store customers, it is a top priority for travelers. During travel, especially long distance, shopping can also cause inconveniences leading to delays or missing a flight.

For this reason, The Hudson Group, one of the largest store chains in travel facilities in North America, has introduced the automatic distribution of goods in 27 airports and at the Houston Space Center.

By entering one of the points of sale, the customer can choose the product and pay for it at the checkout. “That doesn’t mean we lose customer contact,” said Ruth Crowley, Hudson Group’s Vice President of Merchandise Operations, “What we have tried to do is to humanize the elements of the technological experience.” In addition to choosing and paying for a product in the store, customers can make a purchase with the app and pick it up in the store.

Hudson Group, however, has not stopped there: it signed an agreement with Amazon for Just Walk Out, a method that facilitates the sale of products using QRs codes scanned on a smartphone, starting this April at the Dallas airport.

INSTORE TECHNOLOGY (DIGITAL SIGNAGE) Before selling a product, it has to be advertised and the point of sale must be attractive to the buyer. In addition to making consumers’ shopping experience easier, digital signage is also useful for improving the design of the store. These devices include displays, monitors, screens, and a variety of displays that allow you to access information and content in real time, with displays controlled remotely. Content can range from plain text and still images, to moving video with or without audio, with messages intended for entertainment, information or simply for advertising.

A good example of how to benefit from digital-signage technologies is H&M which has equipped its stores with large monitors to display their promotional offers and latest product. Clothing is one area where the value of digital signage is indispensable, for example, by allowing customers to see if there is a particular item in your size.

WHICH STRATEGIES TO USE FOR THE FUTURE At a time when technological innovation has forcefully entered the processes of most activities, strategies must be implemented to make the most of it. Like all investments, the financial benefit of new technologies take time to pay back but, once they are installed, the advantages for customers are positive. In addition to installing new technologies, stores need to train staff both in operating the technology and in the related customer service.

As for sales, it is necessary to implement uniform strategies in which the digital and the physical experiences are compatible, fulfilling the needs of consumers and encouraging them to return. For example, by creating loyalty programs that engage and reward customers through e-commerce and in-store purchases. Connecting the online and in-store experience will future-proof businesses and allow shoppers to easily switch between the two, improving loyalty and keeping interest alive.

In the future retail trade will continue to be geared towards innovation and efficiency.

According to a recent Nielsen study, waiting in line is the number one cause of frustration for shoppers (37% of respondents), 23% stated that the purchase process was too long even when purchasing just a few products, and 20% complained that when looking for assistance, it was not available. Overall customers want more fluid solutions that do not eliminate human contact. One technology that fulfills this demand is self-service check out, which allows you to pay for products in less time than queuing in line.

In terms of innovation, the United States has been at the forefront of this sales direction. Between March and September of 2020, contactless payments increased by 25%, while payment options such as buy now pay later are also on the rise. These are emerging as real buying trends in the United States and are being seen across all retail sales types, from shopping centers to pop-up stores.

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Hudson Group and the innovation that worth From the East Coast to the West Coast, Hudson Group shops have been a must for travellers all over America for the past 33 years. The company’s shops are located in transport infrastructures such as railway stations or airports, where people arrive or depart every day.

experiences,” said Brian Quinn, EVP and Chief Operating Officer at Hudson. “The addition of Amazon’s Just Walk Out technology,” he added, “perfectly complements our existing digital footprint, offering travellers another fast, secure and contactless shopping experience that meets their needs.

In addition to the focus on product assortment, what has made Hudson Group a benchmark in travel retail is its ability to innovate its sales solutions.

Amazon’s latest modernising initiative is the installation of Just Walk Out, a shopping technology developed by Amazon, in the Dallas airport shop. The system allows customers to enter the shop and buy products directly with their credit card by scanning the corresponding QR on their smartphone to avoid the checkout line.

A variety of products can be purchased inside, from food to electronics. The shopping experience is faster and suitable for customers who have connections to other destinations.

“Today’s traveller is progressively more connected and has higher expectations for security and speed during their shopping

Despite the travel crisis caused by the pandemic, Hudson employed manpower and resources to innovate its solutions. Every Hudsonoperated shop was retrofitted with social distancing measures, from shop signage to plexiglass to manage the flow of the (few) people entering and leaving the stores.

Today, as transportation is returning to normal and people are booking flights and train tickets, Hudson continues to invest in new technology and Chicago’s airport store Just Walk Out will also be installed. A demonstration that investment in innovation pays off.

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H. Beauty, the beauty chain of Harrods Following the sales success and popularity of the existing shops, Harrods has opened another H Beauty shop. This time the location is Milton Keynes, a town in south-east London, where the shopping centre of the same name is located.

H Beauty’s format has also taken innovations into account, in fact, the shops have a click-and-collect area where customers can collect or return products purchased online, and many shelves are equipped with displays and electric kiosks.

The opening in Milton Keynes confirms Harrods’ commitment to investing in the beauty sector, as it is the chain’s largest shop.

H Beauty shops sell products from luxury brands such as Gucci, Chanel and Dior for men and women. In recent years, Harrods has aligned its offering with growing consumer sensitivities, so that vegan, organic and cruelty-free products (formulations not tested on animals) can also be found.

In the H Beauty shops, you can book beauty treatments, have your hair done or attend demonstrations. In short, an all-round beauty experience that goes beyond buying and selling. The most popular services are make-up and skincare. If we want to relax after browsing the shelves, we can sit at the champagne bar, a 44-seat bar.

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Beauty, 2021 in the name of change Personalised, smart, sustainable. In recent years, the personal care sector has changed the parameters of the traditional shopping experience to reflect the needs of its customers.

INNOVATION IN PHYSICAL STORES As shown by Kiko’s and BITE’s initiatives, the store is not just a place for selling and promoting products, but a means to entertain and inform the customer about the philosophy of the brand. To make the point of sale attractive to new customers, the décor and style of the shop should represent the brand. For example, in its place of business located at Piazza di Spagna in Rome, Acqua di Parma uses materials made in Italy such as travertine marble, ribbed wood and Murano. As soon as you enter you are immediately aware of the classic design and Italian craftsmanship that the world loves. Another strategy that builds customer loyalty is to provide services that ensure a consistent customer-experience with the brand.

For example, in Acqua di Parma’s stores there is a room reserved for shaving (the Barber area), and Marrionaud often recruits beauticians for manicures.

THE CHALLENGE OF RESPONSIBILITY Consumers are more attentive today to the quality of the brand than in the past, so much so that a few years ago (also because of the increase in allergies) high-end body creams and perfumes started being enriched with natural ingredients with healthier ingredients. According to the research Friendz, the primary purchase motivation for cosmetics is its promised result (23.8%) followed by the type of ingredients (21.5%). In addition, 31% of those evaluating the purchase based on ingredients said 27.9% try to avoid those with harmful substances, 23.7%prefer cosmetics free of silicones and parabens, 14.4% choose natural cosmetics, and only 2.2% opt for organic or vegan ones.

Although the preference for vegan cosmetics represents a small sample, in recent years many brands have launched collections of products not tested on animals and without any substances of animal origin. An example is the American Kat Von D, aka Katherine von Drachenberg, who launched an eponymous line of vegan products including eye shadows, lipsticks, foundation and eyeliner. Among the best sellers is True Portrait Foundation, a liquid foundation without ingredients of animal origin, which has received many positive reviews from influencers and fashion bloggers since its launch in 2016. Starting in 2017, Kat Von D products have also been sold in Sephora stores.

Along with innovation and quality, responsibility remains a value that never goes out of fashion.

This transition has already been underway for some time but accelerated during the outbreak of the pandemic starting with the phygital, the interdependence between physical and digital spaces. In the case of Douglas, a chain of perfumeries, digital has made up for not being in shops. In fact, e-commerce has driven total sales and, together with online channels, have reached a record value of 882 million euros (+40.6%). “In the key Christmas quarter, we were once again able to enjoy strong growth of our online business with Singles Day, Black Friday and our Christmas campaign, achieving a record quarter for our e-commerce business,” commented Tina Müller, CEO of the Douglas group, “Our rapid transformation since 2018 is unprecedented among long-standing retail companies and demonstrates the strength of combining traditional and online retail.”

In addition to greater flexibility in online shopping, today’s consumers demand quality services and sustainable products.

Here are some of the main innovations in this area.

THE DIGITAL GUARANTEE Online is not just about selling but also about involving the user. The Kiko cosmetics chain is aware of this and in mid-2020 it developed Try it on. This function on its site allows users to digitally try on products such as make-up or lip gloss directly on their face to see the results by uploading a photo or turning on the camera. In addition to online, the service is also accessible in the brand’s points of sale.

A similar concept is Lip Lab, a digital tool developed by BITE (a LVMH beauty incubator), which allows customers to create personalized lipsticks from the comfort of their home. The initiative allows you to interact with the brand through your personal taste and needs. BITE is a marketing tool of unquestionable value because it also provides the company information on its customers’ preferences. As with Try it on, BITE allows you to create your own lipstick in stores as well, but so far only in the United States and in Canada.

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The beauty industry in the UK: growing sales but still not inclusive From promotional campaigns to retail, the beauty industry seems stuck in old legacies

According to a survey by Superdrug, 86% of respondents said that beauty retailers should make their advertisements more inclusive, while 84% said they believed that a marketing campaign created specifically for black people would be a positive step for a cosmetics retailer to take.

These figures confirm that there is still a long way to go to achieve full inclusion.

Also according to the survey, 1 in 3 people from the black and mixed community do not feel represented when it comes to buying health and beauty products in shops. In short, despite London being the capital of the cosmopolitan world, it is hard to let go of old legacies.

Inclusivity towards disabled people, on the other hand, is better, so much so that several British brands have hired the model and influencer Ellie Goldestein to promote their products. However, the main representative associations are calling for disabled people to be treated like able-bodied people and not as a separate category.

While public opinion sees inclusion as a gap that needs to be filled, beauty professionals see it as a challenge. The British beauty industry is set to grow by 8.8% over the next three years (for a total value of over £2 billion) and today brands that have shown openness towards minorities have recorded positive feedback. The game is on.

Despite Brexit, Great Britain remains one of the most promising countries for the beauty sector. After France and Germany, it is the third-largest cosmetics consumer in Europe.

Nevertheless, the market proves to be discriminatory towards minorities, both in terms of advertising campaigns and retail sales.

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DIVERSITY AS AN ADD VALUE: THIS IS INCLUSIVE MARKETING Advertising is not only a technique for communicating a brand or positioning products, but also a strategy for identifying one’s target audience, intercepting their values and beliefs.

1996 and 2010) purchases attitude conducted by Microsoft, 70% of respondents said they trust most of the brands that represent diversity in the advertising, while 49% said they have stopped buying products from companies that do not represent the values they believe in.

But what are the main characteristics of an inclusive marketing message? First, it should have a simple language; second, it must instill hope for the future through the recognition of people’s successes. As to the visual function, the images and the videos must be true to give a real inclusion and positive connotation. The latest advertising campaigns by Zalando and Gucci contain all these requisites on enhancing inclusion, precisely because they chose Ellie Goldestein, a top model with Down syndrome, to demonstrate that disability does not exclude style.

THE EXAMPLE OF BARBIE Inclusive marketing comes up with more revolutionary content than ever before and breaks the old patterns. If several brands have limited themselves to promoting diversity through communication, Mattel has done even more, creating Barbies with more human characteristics. Since ever Barbie is the idea of a perfect female beauty, often ending up at the center of criticism from psychologists and educators because it shows girls and women models far from real life models. To dispel the myth, Mattel has decided to re-create dolls with more human physical characteristics, such as the disabled Barbie or the Barbie with a prosthetic leg. By playing with a disabled doll, a little girl encounters diversity and, if she has a disability too, she will be able to totally accept herself.

The Fashionistas toy line, it also includes other dolls that enhance female identity in other areas as well, such as career women or the doll inspired by Yara Shahidi, the American actress and activist for gender equality.

THE OPPORTUNITIES OF THE CHINESE NEW YEAR In addition to manufacturing companies, shopping malls and stores can also implement an inclusive marketing strategy. On 12th February, it began the Chinese New Year (also called Lunar New Year) which marks the end of the year of the Rat and the beginning of the Ox one. Compared to the Western countries New Year celebrations, the Chinese New Year lasts 16 days and is celebrated by Chinese people with dances and red lanterns attached to the facades of shops or bars. The highlights are the Spring Festival and the Lantern Festival. This year, the first begins on February 12th until February 22nd, and the Lantern Festival took place from February 23rd through 26th. It is the most heartfelt holiday in China and in recent years it has also spread to various cities around the world where Chinese communities live. On the other hand, in almost all countries of the world they are in force and therefore the only way that Chinese community living abroad can celebrate is to go out to shops.

To pay homage to the Chinese people, some shopping malls have decorated their spaces with red and dragon displays. Other outlets instead have launched promotions such as discounts or benefits to be exploited in the period of Chinese New Year celebrations.

So acceptance is in effect a feature of advertising in the future.

To represent all the diversity of today’s society there is the inclusive marketing strategy, a communication tool able to reformulate the stereotypes to whom we are accustomed and recognize minorities.

The differences concern those of gender, ethnicity, sexual orientation and physicality. Over the years thanks to the battles of movements, organizations, and of individual personality, even companies are highly sensitized to the fight against discriminations of any kind, launching initiatives of inclusive marketing also to advertise their brands. Mattel, with Barbie, was among the first brands to put into practice inclusion strategies directly through products. Several years ago they launched the collection Fashionistas, which includes a doll with wheelchair, and curvy or colored Barbies.

There are also other areas of inclusive marketing in which to promote the enhancement of diversities, such as the preparation of physical locations for special events coming from other religions and countries. In fact, since several years, stores and shopping centers have decorated their areas with dragons or lanterns to celebrate the Chinese New Year.

THE VALUES OF MARKETING AND INCLUSION To date, diversity is a feature that has forcefully entered our common lexicon and the choices of buyers. According to a study on trends in the generation Z (the one that includes young people born between

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Game and inclusion, the Xbox campaign for Women’s Day In addition to a ludic function, video games also have an educational function, and to celebrate inclusion, Xbox launched the “Women in Gaming” campaign last March to encourage the industry to combat discrimination against women.

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For the project, which involved 23 countries on 4 continents, Xbox replaced the original controller with one featuring a B button with an equal sign to symbolize the equality of everyone in the gaming community. “Gaming is for everyone and we at Xbox want everyone within the community to be equally welcome and treated with respect.

The controller represents the support that women in gaming have for each other and has been sent to women gamers around the world,” said Maxi Gräff, Marketing Communications Lead at Xbox DACH.

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Pressing the button the Xbox plays audio files with 9 inspirational and supportive messages from leading women in the industry, including Bonnie Ross, CVP, founder and head of 343 Industries; Cantika, one of Southeast Asia’s most popular streamers with a following of 2.7 million; Helen Chiang, CVP, Studio Head Minecraft, Mojang Studios; Sarah Bond, CVP, Gaming Ecosystem, Microsoft; and Jennifer Lufau, founder of Afrogameuses, a French community that advocates diversity and inclusion in gaming.

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In addition to the audio files, users were able to download other content such as wallpapers and participate in the Age of Empires II online tournament, with women such as Joan of Arc. The campaign ran throughout March, with a great deal of international coverage.

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