Inside What's instore for 2014?
Momentum Instore’s panel of experts share their predictions.
All Change for
B&Q’s Tiling Category
PLUS Pop Up Shops – A 21st Century Phenomenon?
A day In the Life
Insight
New technology: an instore opportunity not a threat By Matthew Valentine
ISSUE
03 2014
Inside
Issue 03 2014
CONTENTS
A GOLDEN MOMENT FOR MOMENTUM INSTORE
2014
It’s going to be an exciting year
H
ello and welcome to our latest edition of Inside Instore. I would like to take this opportunity to wish you all the best for 2014 from everyone at Momentum Instore. In this issue you will not only find the latest news from Momentum Instore but also insights and opinions from both key members of our team and some leading retail and instore journalists. As well as taking a closer look at some of the current and future instore trends we also consider what the year ahead will hold for brands and retailers. We believe that this year technology will continue to play a central role in bringing customers closer to retailers and their products. The pace of change will continue to both challenge those in the retail industry to keep up and
Contents
Momentum Instore have once again scooped two Gold awards for our Installation expertise at 2013’s POPAI Awards. Momentum Instore accepted double gold for the complete implementation of the Boots No7 re-launch and McCormick’s new Schwartz herbs and spices fixtures. Momentum Instore also won double Gold at the 2012 POPAI Awards for both its Boots Beauty Discovery and L’Oreal General Tester Unit projects, making this the second year in which they have dominated the category. If you think your instore campaign might benefit from a first class service, you should talk to us. Tim Ellis tim.ellis@momentuminstore.com | 07957 175 406
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also create more exciting and engaging instore environments. We will see stores change to accommodate new innovations and maximise their benefits to customers. Cutting edge technology will not only have a positive impact on consumerfacing services though. Suppliers will also develop new innovations to support retailers and brands in maximising the return on investment their physical stores and instore campaigns deliver. For example last year we launched our InTouch reporting and data capture app featuring cross platform technology that enables us to gather large amounts of complex instore data quicker and more
accurately than ever before. Full reports can then be downloaded to our Estate Management system, InSite, in real time, giving our clients access to meaningful, up to the minute intelligence about their estates that enables them to make sure that future campaigns provide maximum return on investment, whilst saving costs and increasing their brand strength. This year we will develop our market leading reporting technology further to ensure that it continues to meet the needs of our clients, just as we are sure that retailers and brands will utilise new technology more then ever before to continually enhance their offering for the benefit of their customers.
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All Change for B&Q’s Tiling Category
New technology: an instore opportunity not a threat
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W: momentuminstore.com
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A DAY IN THE LIFE
Sarah Statham, Momentum Instore’ s Operations Manager
Guerilla Retailing
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What's instore for 2014?
Rob Gleave Managing Director Momentum Instore
Freshening Up The Flooring Aisle for B&Q
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Momentum Instore’s panel of experts share their predictions.
Pop-up shops – a 21st Century phenomenon?
Momentum Instore Stanley Court, Earl Road, Stanley Green Business Park, Handforth Dean, Cheshire SK9 3RL W: momentuminstore.com T: 0161 486 7878
Stanley Court, Earl Road, Stanley Green Business Park, Handforth Dean, Cheshire SK9 3RL
Hello and welcome to our latest edition of Inside Instore.
T: 0161 486 7878 Inside
Contacts Paul McCarthy, Head of Sales & Marketing E: paul.mccarthy@momentuminstore.com Tim Ellis, Business Development Manager E: tim.ellis@momentuminstore.com Julie Fort, New Business Manager E: julie.fort@momentuminstore.com Issue 03 2014
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NEWS
NEWS
New technology:
an instore opportunity not a threat By Matthew Valentine Matthew Valentine is a marketing journalist who has specialised in covering the POS sector. A former editor of In-Store, he has been a contributor to Marketing Week, Retail Week and Design Week as well as various other titles and websites.
All Change for
B&Q’s Tiling Category
W
hen leading DIY retailer B&Q wished to implement a full-scale range change within its tiling category, to inspire and inform customers as well as help them to better navigate the area, it chose Momentum Instore to deliver this complex project into in 114 stores around the UK. The range change, which had to be completed within a four-week timescale, included changing the tiling ranges within the category along with all equipment, merchandising and pricing. A complete review of POS was also undertaken to make the area easier to shop.
Over 400 new products were introduced across tiles, tools and adhesives. With one of four different house styles to be introduced depending on each store’s size, location and customer profile, each store had to be approached as a bespoke installation. Ashley Snow at B&Q, said: “This was a complex project due to the number of stores involved and the distinct ranging requirements of each. Momentum Instore provided a seamless and efficient service throughout and we are delighted with the results achieved.”
It's Two Golds For The Second Year Running
Paul McCarthy Appointed
At The 2013 POPAI Awards
M
omentum Instore scooped two Golds once again for its Installation expertise at the 2013 POPAI Awards in October, making this the second year in which we have dominated the category. The Gold Award wins were for our implementation of the Boots No7 re-launch and the McCormick new Schwartz herbs and spices fixtures. For Boots our installation team undertook a full roll out of the new No7 display stands into 2,200 Boots stores throughout the UK. Our work for McCormick included a complete installation of the new herbs and spices fixtures into 1,969 Tesco Extra and Express stores. Paul McCarthy, Momentum Instore’s Head of Sales & Marketing, said: “It’s an understatement to say we were over the moon with our achievements at the 2013 POPAI Awards. This is now the fourth year in a row in which Momentum Instore has won two prestigious POPAI awards. The whole team here works extremely hard to deliver results for our clients and to have this hard work recognised by the industry’s leading trade body yet again is a well-deserved pat on the back.” Momentum Instore will also once again be sponsoring the prestigious POPAI Awards this year, demonstrating our commitment to innovation and best practice in the instore marketing industry. 4
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As Head of Sales & Marketing
I
n July 2013 Paul McCarthy joined Momentum Instore as Head of Sales & Marketing, to help deliver our ambitious new business targets. As part of the senior management team Paul is responsible for leading the sales and marketing function to support the business’s growth plans across all channels. Working closely with the Business Development and Marketing teams, Paul identifies and evaluates opportunities that will help deliver sales targets, whilst monitoring the effectiveness of internal sales and marketing procedures to ensure optimum efficiency. In his previous role, Paul was commercial director of Alphason, the UK’s leading manufacturer of specialist furniture, and prior to this Paul spent 18 years with Auto Trader UK in a number of senior management roles. Steph Gleave, Director at Momentum Instore, said: “We have ambitious growth plans for Momentum Instore and Paul’s commercial experience and success in delivering significant new business will ensure that we more than meet our goals. Since joining the team he has already invigorated all elements of our Sales and Marketing strategy and has made great strides in terms of driving our business forward.” Inside
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ver the years, several types of new technology have been identified as a threat to ‘traditional’ instore marketing techniques. Digital screens, QR codes, the growth of internet shopping – all have been named as the bogeyman that will see the end of cardboard FSDUs and counter units. But just as television never did kill off radio, the humble temporary instore display is still with us and playing a vital role. The need for fast, well-placed and effective communication never went away. The smart money says it never will. And as technology grows ever more clever and portable, the argument may have come full circle. The latest technology to tempt brands and retailers could, for once, increase the importance of temporary displays rather than threaten it. A number of companies – including the omnipotent Apple – are investigating the use of Bluetooth Low Energy (BLE) beacons, along with clever mobile phone apps, to link the internet to shoppers while they are in physical stores, in real time and with a degree of Fast Facts personalisation never seen before. The possibilities are endless. Almost 50% of shoppers say When consumers have ‘liked’ they would be more likely to visit products via any of their social and make a purchase in-store with media accounts, their smartphone can react to the signal from mobile-based coupons. A third of BLE beacons to let them know shoppers search their mobile when they are physically close devices for coupons. to those products. They can be Source: RetailMeNot sent a direct personal ad, discount or promotion that will encourage them to check out the product and buy it.
In addition to this, customers can be invited to product launches, tempted into car showrooms or offered a free coffee, and all at a moment when they are in a position to accept it. Brands and retailers will be able to tailor promotions to individuals who opt in, and gain access to a wealth of data about how people interact with them both online and face-to-face. For customers who engage in showrooming – checking out products instore and buying online – this technology can help create a more seamless brand experience. Researching new white goods, for example, can be tiresome: you can never find a member of staff to give you the information you require about competing fridges or washing machines. Helping customers to engage directly with brands solves that problem. They can be sent product data, price comparisons and delivery details for a new fridge, washing machine, whatever it may be, while they are looking at it. They can even be rewarded for brand loyalty with a discount if, after buying the product, they also need another a few months later. The BLE beacons are small, convenient and relatively cheap. This overcomes many of the hurdles that have tripped up previous instore technologies, which have been large and expensive. All that is needed is a simple cost-effective way to locate the beacons near to the relevant products, in fixtures that meet the demands of retailers, with a delivery network that can cope with high volumes and short deadlines, and the possibilities are endless.
The possibilities are endless.
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A day In the life
A
DAY
Around 95% of the time the department will be working on live projects, meaning that Sarah spends a lot of her working day discussing challenges that have arisen and supporting the teams in finding the best solutions.
In The Life
Sarah Statham, Momentum Instore’ s Operations Manager
S
arah has worked for Momentum Instore for 13 years and is one of two Operations Managers in our Installations department. She works closely with the Operations Director to ensure that the whole department is run smoothly, effectively and that the Installation Account Managers and Project Managers have all the support they need to manage and implement successful projects. Sarah’s first role at Momentum Instore was Assistant Project Manager and she has since worked her way up to Operations Manager, picking up a wealth of experience and knowledge along the way.
Is there such a thing as a typical day?
The short answer to this is no! Sarah usually arrives at the office at around 8.30am, although she would have checked her emails from home already in between getting her 11 year old son ready for school, to make sure she’s aware of anything that needs to be addressed as soon as she arrives at her desk and has powered up her laptop. As a lot of installation work is done overnight, to avoid causing any disruption to customers and store staff, Sarah tries to spend the first hour of her working day catching up on emails that have come through during the night. This ensures that any issues that have occurred are dealt with as a priority and that any reports for the client are submitted in a timely manner. 6
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Up for a challenge
Sarah’s role is all about making sure that projects are delivered on time and to a high standard for the clients that she works with, which include leading Health & Beauty clients Boots, L’Oreal and one of the largest high street banks. Her day is often structured around the activity being progressed for her clients at the time. As Sarah explains: “If we are in the middle of a project we always have regular update meetings to discuss urgent issues and workload levels in the morning. This enables us to resolve any potential problems before they have any negative impact on a roll out.” In addition Sarah is often required to attend internal meetings to talk about either specific projects the Installations department is working on or discuss ways in which the department’s working practices can be improved. “For us it’s about constant improvement,” explained Sarah, “if we are working efficiently and continually assessing what we do then the end result will be an enhanced service and even better results for clients.” Around 95% of the time the department will be working on live projects, meaning that Sarah spends a lot of her working day discussing challenges that have arisen and supporting the teams in finding the best solutions. Luckily, Sarah likes a challenge: “We believe that thorough planning and preparation is crucial to a successful campaign, but sometimes external Inside
Inside
factors can crop up, such as bad weather, problems with deliveries from suppliers or last minute changes to the brief. My role is to help the teams deal with any unforeseeable problems quickly whilst keeping the client’s aims and objectives at the forefront of everyone’s minds.”
All in a day’s work
Sarah enjoys working closely with clients to ensure that their needs are met at all times. Implementing operational changes whilst managing live projects can be tricky, but Sarah, along with her colleagues in the Installation department, believe achieving this is vital to continue to bring meaningful benefits to clients. A large part of a successful roll out is being kept up to date with accurate data from our Estate Management System. Sarah ensures all data is present and correct throughout all projects to ensure her clients have access to real time data, 24 hours a day. So, what does Sarah enjoy most about her job? “It has to be going out and meeting clients to discuss new projects. This is the most interesting part of my job as I get to see the project through the client’s eyes and gain a real understanding of the difference that a successfully delivered project will make to them. I also enjoy working as part of the team here at Momentum Instore. Over the years I have been involved in many large-scale projects and the secret to their success has been the huge amount of team work that has gone into each one.”
It's All In The Detail The latest reporting technology takes retail audits to the next level
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suppliers are able to utilise its benefits to he retail landscape has gone through give retailers an accurate picture of each a dramatic change over the last and every one of their stores in real time. five years. Retailers and brands Ultimately what this means is that brands have adapted the way in which and retailers are better able to react to they engage with their customers and dynamic market conditions and make manage their businesses in response to faster, better informed decisions for their the tough market conditions they have customers to stay ahead of the competition. had to operate in. One way in which this Momentum Instore’s InTouch reporting change has manifested itself is in the and data capture app features cross increased focus that many retailers have on platform technology that enables us to understanding their entire store estate. do just this, gathering huge amounts of Accurate data about current POS complex instore data quicker and more materials, store measurements, layout, accurately than ever before. Momentum design and fixtures and fittings in each Instore’s expert auditors can answer and every store enables marketing teams literally hundreds of questions and take to ensure exactly the right marketing and large numbers of photos instore for POP materials are ordered in the right any marketing campaign - these quantities therefore reducing are then processed by our wastage, controlling costs and app enabling full reports maximising the return on Fast Facts to be downloaded investment achieved. 67% of all shoppers have to our online Estate Compliance rates ceased to shop at a store because Management system, also need to be controlled, so that of a bad experience and only 30% of InSite, in real time. This gives our clients access signage and displays shoppers give the store to meaningful, up to produced to support a second chance. the minute intelligence instore marketing Source: He-Buys-She-Shops/ about their estates. activity are being used Technology like this correctly, at the right The Verde Group takes retail audits and time, and in the right place compliance projects to a whole to achieve high impact and new level – retailers can now truly footfall, and to achieve maximum have their finger on the pulse when it impact and brand stand out - especially comes to knowing what is happening in important during seasonal campaigns. each of their stores. This in depth estate Until now though, true Estate Visibility intelligence means that they can make sure has been difficult to achieve, and seldom that future campaigns provide maximum fully understood, especially for those return on investment, whilst saving costs retailers with hundreds or even thousands and increasing their brand strength in of stores nationwide. But today technology such a competitive and dynamic market. has developed to such an extent that some Inside
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SECTION
Case Study
B&Q
Project: Freshening Up The Flooring Aisle for B&Q Background
When leading DIY retailer B&Q wanted to remove slow selling flooring ranges and introduce new products to increase sales across its flooring category, it commissioned Momentum Instore to provide instore marketing support for a complete flooring range refresh in 105 stores throughout its entire North and West divisions. A spokesperson from B&Q said:
“It is vital that we can rely on our instore Marketing partner completely to deliver projects on time every time. We know that Momentum Instore’s highly efficient and skilled team will do just that, and that the success of our instore campaigns is as important to them as it is to us.”
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The PRoject
As well as installing new wooden flooring display boards, replacing old trim stands with Scotia stands and introducing a new rug display mechanism, the project involved refreshing all other existing ranges and introducing an XL planks range. The whole project needed to be completed over an 11-week period. Due to the number of different elements involved, Momentum Instore carried out trials in two B&Q stores – Shrewsbury and Barrow - prior to the full roll out. This meant that all of the new equipment could be tested and the exact timescales involved in implementing the campaign into all 105 stores could be confirmed. Comprehensive briefing documents were provided to the installation team giving detailed guidance about what work was to be carried out and how, with additional support provided by Momentum Instore’s Regional Managers. With such thorough pre-campaign preparation B&Q could be confident that the project would be completed on time and to a high standard. During the roll out an additional requirement arose for some shop fitting and extra installation work. This was quickly Inside
and efficiently dealt with by Momentum Instore’s team, which worked closely with strategic business consultancy firm Retail Change to ensure that the project continued to run smoothly and the original project timescales were still met. Teams of between 2 and 11 of Momentum Instore’s experienced installers completed each store visit depending on the size of each store and the scope of works required. Our project teams completed electronic sign off throughout the roll out using our PDA reporting technology, which is linked to our online Estate Management System, InSite. This ensured that B&Q were kept fully up to date on the status of the project and were provided with instant clarity and visibility.
The Results
Not only did Momentum Instore complete all stores on schedule, some stores even finished early. Despite the additional installation and shop fitting work that was required the project was still completed within the original timescale with a high quality finish achieved in all stores.
Case Study
Boots No7
Project: Revamped No7 Brand is Ready for Take Off Background
When the UK’s best-known and best-loved health and beauty retailer, Boots, wanted to re-launch its iconic No7 brand in all of its 2266 stores Momentum Instore was delighted to be commissioned to provide full installation support. Our work formed part of a wider campaign for Boots, which also included re-launching everything in connection with the No7 brand, such as packaging, products and staff uniforms.
The Project
As the project involved installing one of 19 different No7 display units into each of Boots’ 2266 stores, depending on the type and size of store, the planning and preparation stages were key to a successful and efficient roll out. Prior to the installation therefore Momentum Instore carried out thorough audits of the existing No7 units and surrounding areas in 790 Boots stores. The audit was conducted by 21 experienced installers – all of whom had previously worked on projects for Boots over an eight-day period. They recorded data on 50 audit questions using PDA technology and sent reports back to Boots so that they could use the information immediately to help with the re-launch. Trials of the kit to be installed were also undertaken by Momentum Instore before
the roll out. The trials took place in show rooms at Boots’ head office and then the full kit was installed into a selection of stores early, so that on site processes could be tested. All installation teams attended two days of training with Momentum Instore’s Regional Managers, who had previously been trained on how to build the kit. Teams of between two and seven installers completed the implementation over a nine-week period, working eighthour shifts on site. As well as installing a total of 7975 separate units in 2266 stores, Momentum Instore removed the existing fixtures and took them away for disposal. The number of parts that made up each No7 display ranged from 59 separate parts on the smallest build to 225 parts on the largest. The average number of parts installed on the main project was 159 per store.
The Results
Due to Momentum Instore’s exceptional levels of compliance the client received an incredible 99.7% success rate. The campaign was a huge success for Boots and it has boosted sales of the No7 range. Excellent feedback was received from Boots and since completing this project Momentum Instore has continued to provide support for a number of projects for the retailer.
Inside
Ruth Powell, Assistant Implementation Manager at Boots, said:
“It was vital that all elements of this project Were executed efficiently, with great attention to detail and to a high standard. Having worked with Momentum Instore on various campaigns in the past we were confident that it was the best agency for the job and its collaborative working and subsequent results speak for themselves.”
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FEATURE
Guerilla Retailing Pop-up shops – a 21st Century phenomenon? By Gillian Anderson Anderson is a multi-disciplinary journalist. Former editor of Retail Design & Technology, Meze, Talk Business and Hospitality magazines, she now concentrates on lighting technology, as editor of TL magazine.
Fast Facts Research shows that marketers have 0.9 seconds to convince shoppers to see their display. Source: POPAI
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rom the amount of press attention they’ve received during the past couple of years, we may be forgiven for believing that pop-ups are a new idea. They’re not; taking it back to basics, just think about those iconic Christmas tree sellers - beloved by feel-good movie makers in the US - who take over empty lots and fill them with festive greenery for a couple of weeks in December. It’s a pop-up – and it’s been going on there for decades. In the States, Go Vacant has been selling the concept for a dozen years or more. The company has an impressive client list of household names, including Rockport, Puma, and even Bob Dylan, who used the idea to successfully launch a new album simultaneously in New York and Los Angeles. A large part of the company’s success is its ability to scout and source locations that are simply right for the client: for Dylan, the old (and now very trendy) meat market in NYC was a great fit, while New York Fashion Week gave Woolite the perfect opportunity to remind the city’s well-dressed locals that their designer labels would be better washed in its product. Inside
The Guardian recently called pop-ups ‘a digital game changer for the high street’. So why the surge in popularity in the UK - and why now? Help is coming from Start Up Britain, which is supporting some of the UK’s most promising retail entrepreneurs by providing them with limited-time access to soughtafter high street locations that they simply wouldn’t be able to afford alone. The venture has the backing of prominent names, many within the retail industry, including Zac Goldsmith: Enterprise Adviser to the PM, Luke Johnson, Sir Charles Dunstone of Carphone Warehouse fame, and Mary Portas. Much of the interest here has been created by the big brands getting in on the act. Pop-ups selling seasonal produce aren’t making headlines, and never have done, but as soon as a respected designer clothing or shoe label opens a pop-up in Norwich or Tunbridge Wells, the hype it creates is huge, queues form around the block, usually leading to a welcome sales hike for the brand. Social media has become a big influence on the whole trend too; brand fans tweeting the message as soon as a pop-up appears
helps to ensure its success in a way that wordof-mouth, or waiting for people to pass by and notice the new store simply couldn’t do. The volume of available high street space also plays a part in the trend – if there are too many empty shops – as is currently the situation across the UK - rents fall and landlords are happy to accept whatever is on offer, even a short term let. And for some entrepreneurial types, that means big business. An entire industry has sprung up – or should I say popped up – around pop-ups. A number of companies now specialise in locating and renting the perfect temporary retail space, and more still are able to fit them out at a moment’s notice, there’s no point in renting an empty store for a two-week guest pop-up if it’s going to take two months to fit it out to a satisfactory standard, and another month to tear it all down again, and so these companies have had to become masters of their fast art. Budgets for all but the top end brands tend to be tight for fit-outs, but with clever use of creative visual merchandising, preplanning to the last nut and bolt, and taking
a minimal approach to the whole thing, it can be done more reasonably than some may imagine. And that’s a good thing, as it’s not just the luxury end of the market that benefits from a two-week sojourn in Camden, Colchester or Caerphilly. Feedback from start-ups and small independent retailers shows they can gain really useful exposure of their product to the buying public by taking over one of the many permanent pop-up spaces available around the country. Seasonal holidays and festivals – Christmas, Easter, even St Valentine’s Day or Halloween – provide great opportunities for retailers large and small to indulge in a popup. While hearts and flowers may not usually be the acceptable face of Diesel, a two-week pop-up at the beginning of February could give the retailer a chance to appeal to a different audience; and for Internet retailers,
it’s the perfect time to put a shop window on the goods that the buying public may otherwise never get to see. Personally I love the whole idea – it’s fresh, vibrant, and it’s helping to bring the high street back to life at a time when retailing is under severe pressure. From a shopper’s point of view, it feels good to get the chance to walk down the street with a couple of bulging carrier bags from a designer brand that is simply not normally available where you live. I’d get off the bus for that!
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FEATURE
FEATURE
What's Instore for 2014? Momentum Instore’s Panel of Experts Share Their Predictions
Paul McCarthy, Head of Sales & Marketing
P
aul believes that this will be the year that retailers get to know themselves a little better: “Estate visibility will be a major focus for retailers this year, as they strive for consistency of instore execution and a greater return on investment from their instore campaigns. Until recently it has been extremely difficult for retailers to have anything but a limited view of what is really happening in their estate and of how well each of their stores complies with store and brand guidelines. “This has led to many campaigns not being implemented as well as they could have been. The latest audit and compliance technology though, such as Momentum Instore’s InTouch reporting and data capture app and InSite, our online Estate Management System, solves this problem by providing retailers with detailed and meaningful up to the minute data about every store in their estate.”
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Rob Gleave,
Steph Gleave,
Amy Morley,
Managing Director
Director
ob predicts that the focus will be on relationship building in 2014: “This year will be about engaging customers and finding innovative ways to build relationships with them. This could be through the use of technology, by going back to the basics of providing outstanding customer service, or introducing cutting edge innovations to stay ahead of fierce competition from market leaders. It will be interesting to see if the much talked about digital currency is embraced fully by retailers and consumers next year. My opinion is that this is something that shoppers will be either strongly in favour of or against; there won’t be many sitting on the fence. I have no doubt that things are on the up and that we will see big developments happening in retail over the next 12 months and beyond. I mean, who would have thought that soon electrically powered, un-manned devices could be delivering orders from Amazon to customers within 30 minutes? With innovations like this on the horizon the sky’s the limit in terms of what can be achieved in retail over the next few years. With all this excitement I think it’s important for brands and retailers not to get carried away. Anything that they choose to introduce into their offering should be specifically tailored to the needs and desires of their core audience, and only when this is consistently forefront of their minds will they be able to truly build valuable relationships.”
teph believes that those who cannot keep up the pace will fall by the wayside this year: “It is increasingly difficult these days for retailers and brands to plan campaigns well in advance of the projected roll out date, as budgets are often released or confirmed at the last minute. Retailers will have to react faster and implement more up to the minute instore campaigns to continue to engage customers and drive sales. For these reasons we anticipate that even large and complex ‘quick turnaround’ campaigns will become more common over the year ahead and suppliers who cannot rise to such challenges will get left behind.”
Director of Strategic Operations
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Tim Ellis, Business Development Manager
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im predicts that 2014 will herald a return to core values for retailers: “Whilst cost conscious buyers won’t loosen those purse strings without a fight, they will be willing to pay a bit more for quality items. Therefore I think there will be less focus on cheap goods and confusing promotional discounting which can largely devalue a brand, and with times changing, sticking to this strategy could now be dangerous. 2014 could well see a widespread u-turn back to core values such as great service and providing good quality throughout a retailer’s entire offering, online and offline, to keep customers coming back for more. I also predict that there will be a greater level of investment in existing large format stores rather than rapid estate expansion. I think retailers will become much smarter about how they use their space instore, Tesco’s Watford store is a great example of this, taking the trend for combining shopping with leisure to the next level, and creating a unique experience by forming a supermarket that is more like a department store.” Inside
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Saffron Milligan, Client Development Manager
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he economic outlook might be looking up, but Saffron believes that pressure on marketing budgets will increase: “The pressure to make marketing budgets deliver maximum return will get more intense this year and we will therefore see brands and retailers becoming even more selective about how they choose to spend their money. In addition, they will use all options available to them to eliminate wastage, such as improving the accuracy of the data they hold about their estate and assets using advanced audit and compliance technology. With store environments constantly evolving to stay fresh and exciting to entice consumer spend we will also see an acceleration of the trend for quick to market installations.”
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my believes that retailers will refocus on their physical stores this year: “After a year highly focused on online, refreshing the instore environment is now at the top of most retailers’ to-do lists. The high street is far from dead, and to ensure that customers are engaged and interested during their visits to store, a memorable experience is essential. As part of this retailers will continue to adopt new innovations as their customers become more familiar with new technology and expect to be able to use it instore to enhance their shopping experience. We have seen a significant increase in the need for temporary point of sale innovations to be delivered to stores in record time, highlighting the trend for fast paced change to keep customers engaged. Essentially retailers are realising the immense value and potential of their retail estate more than ever, and are starting to invest more in keeping their stores looking good with things like new shelf presenters, POS displays and signage. Retailers still have to be cost conscious though, so we may see more of this type of activity being funded by brands.”
Julie Fort, New Business Manager
J
ulie’s view is that technology will continue to evolve to enhance the instore shopping experience this year: “Technology has been central to creating exciting instore environments for the past year and this trend will continue to gather pace over the next 12 months. We will see innovations like interactive virtual fitting rooms become more popular and facial recognition software will be implemented to help retailers gain a better understanding of their customers, enabling them to use targeted zone messaging throughout stores. Such insight into customer behaviour is a key driver for the return on investment retailers can achieve from their targeted marketing activity.”
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FEATURE
FEATURE
Are you Delivering
a Seamless Solution? We share our views on the winners and losers on the world wide web...
Good Website – Amazon
Amazon is an extremely popular and trusted online retailer, and as you would expect from such a wellrespected name it provides a quality, enjoyable shopping experience for its customers. The site combines ease of navigation with a high level of personalisation based on the customer’s previous searches and purchases. This of course benefits Amazon by encouraging further purchases but is also a help to the customer as it highlights products and offers that will be of interest to them. The site puts the information shoppers need to be able to make informed decisions within easy reach. For example all of the relevant product details are given right at the point of purchase and customer reviews relating to that product are listed on the same page. The checkout process couldn’t be simpler – Amazon’s 1 click checkout really is just that. Customers can also change their mind during the checkout process, and easily remove Fast Facts items from their basket if they wish. There 19% of shoppers use are a range of delivery options too so customers have a choice depending on online review forums to when they will be around to take delivery help them make their final of their order. At the other end of the purchase decisions. process, setting up an account in the first Source: Deloitte UK place is just as quick and simple, so this potential barrier to purchasing is removed.
Bridging
the Channels
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here are very few consumers who will shop exclusively in store, just as those who shop exclusively online will be part of a tiny minority of people. Customers today demand the choice to shop how they want when they want across all sales channels. What they also demand therefore is a seamless omnichannel experience. The term omni-channel however is unfortunately much overused and just as much under-delivered. Just having a website and a physical store is not enough to justify claiming the omni-channel mantel. These elements have to slot together to provide the ultimate convenience to customers rather 14
Issue 03 2014
Bad Website – Wowcher
Wowcher’s website is fairly easy to navigate although it is difficult to find specific types of offers, as they are grouped into quite broad categories and you need to have time to scroll through them all. In terms of the offers themselves, there is almost too much choice – there seem to be thousands of offers to wade through. Where the site really falls down though is when customers arrive at the checkout. The whole checkout process is very complicated. The customer is given a range of options, which differ depending on the offer being purchased. For example sometimes you are required purchase more than one Wowcher while at other times you are restricted to just one. On some occasions you have to buy two to make the purchase valid. Once you have decided how many Wowchers to purchase and have entered your payment details things get even more complex. Customers are sent an email to claim their voucher and a code, and then they have to access (and sign up to) a second website where the voucher code needs to be entered. At this stage customers could face an additional charge for postage and packaging with a different provider. Wowcher’s website is not that user friendly, especially for first time visitors or those with busy lifestyles. The discounts may at first seem appealing but Wowcher simply does not provide the quick and easy online shopping experience that today’s customers are looking for.
than existing as stand alone entities. Too often what people will see on a website or mobile site will not reflect what they see instore, either in terms of product range, information or offers and promotions. Some retailers like John Lewis are truly delivering an omni-channel experience – and reaping the rewards – and this should be a source of inspiration for other retailers and brands wanting to safeguard their long-term success. So how can you offer consumers a truly ‘Omni Channel’ experience to maintain a competitive edge? Here are eight key actions that we believe retailers and brands need to take now to achieve just that: 1. Adopt emerging technologies 2. Work with suppliers to offer exclusive products and promotions 3. Expand online inventories and available merchandise offerings 4. Offer same day instore pick Inside
up for online orders 5. Provide a consistent brand experience across all channels 6. Create easy to shop environments 7. Personalise the shopping experience both instore and online 8. Offer expertise, advice and support to create an exceptional instore experience With consumers gaining access to more advanced technology all the time, retailers need Fast Facts to act now to 44% of all retail ensure that their omni-channel transactions in the UK presence can involve interaction with meet customer multiple channels such as expectations both now and in-store, online, mail order in the future. and catalogue.
Life In The Fast Lane
A
s our lives become ever busier one activity that we used to enjoy is increasingly falling by the wayside – browsing. For today’s retailers getting customers to slow down and peruse fixtures can be an ongoing battle. However stores remain in a strong position to differentiate themselves from online and mobile retailing by providing on the spot face-toface expertise, advice and support to increase dwell time. With so little spare time customers often want to find products quickly and commit to purchase, therefore they will usually take a well worn path around a store. The most important thing for retailers to do is get into the mindset of their customers, considering everything from their angle of approach to a store to their journey around it. Refreshing a store environment regularly will help to keep customers interested, although when ranges are moved around, clear and compelling directional signage is essential to help shoppers to navigate their way around. The objective may be
Fast Facts Unplanned and impulse shopping is increasing - only around 16% of grocery shoppers now use shopping lists Source: Shopper Insights
Source: Deloitte UK Inside
to increase browsing, but even browsing needs to be easy and enjoyable. Digital wayfinding is extremely relevant in the current climate and we anticipate that we will be seeing a lot more in the way of digital store navigation over the next 12 months. Traditionally only used in larger format stores, technology will continue to play an ever-larger role in even the smallest retail outlets as the digital revolution continues. Digital screens for example offer real benefits to visitors through an easy-to-use, interactive interface and access to promotions and offers. Some retailers are now becoming even more creative, creating a sensory experience for their shoppers to enhance their visit to store so that they want to linger, longer. Some great examples of this are the scent of Hollister and the comforting aroma of freshly baked bread in Marks & Spencer to the distinctive music played in Abercrombie & Fitch. Instore signage is a staple requirement, however, lighting, sound and smell can all be used to enhance the effect of signage, providing a multisensory experience and encouraging shoppers to visit lower footfall areas. And if you want to take it one step further, these can even be triggered by motion sensors that react specifically to a customer’s movements, helping to direct them to categories that they might not have intended to visit. In the future we are definitely going to see more stores reaching out to shoppers’ senses to in turn get them reaching into their wallets - we are just waiting to see who is going to make the next move. Issue 03 2014
15
ot C L A
an Happen in
YEAR
2013
We completed
26,035
a
742
We had
We Installed
100
12,390 during one 5 day project
audits
digital screens
installers
Which was a total of 1,758, 335 questions that have been answered for our clients
installed on a number of different techy projects
working on one day in February
POS Pieces
We spent
We spent
We had over
We supported
286,274
26,165 Hours
300
merchandisers
244
Sainsbury’s
3,941
hours merchandising in Sainsbury’ s
merchandising in Boots – (this is not including our biggest project.)
in Sainsburys stores in just 1 day, during our peak. Thats the same as 27 football teams out in force.
stores
of fragrance were de merchandised, installed and re merchandised during one project.
Hours
Bays
1,300
243,914
110,500 Hours
spare parts
Costa Coffee caffeine hits
made this year
spent at Head Office
ordered for x10 Health & Beauty brands in one project
Friday
phone calls
£
68,000
3,500
£1,700 RAISED
45,187
Countless
Naughty
Fridays
fragrance cabinets were installed in one project*
for Brain Tumour Research
to our website
treats
having vitally essential cake at 3pm…and a 7pm glass of wine
new
*the height of these added together is taller than Mount Everest!
visits
52