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Studio Retail works with Ideal World to launch shoppable content across its social platforms

Image courtesy of Studio.co.uk.jpg

Home shopping company Studio Retail is working with TV shopping channel Ideal World TV to launch live shoppable content across the TV company’s social platforms.

  Through the deal, Ideal World TV will give Studio space in its Peterborough TV studios to livestream its products on its social media channel as well as broadcasting on Ideal World’s TV shopping channels.

  The two say the partnership comes at a time when more UK brands are focusing on reaching their customers through social commerce. 

  “We’re delighted to be partnering with Ideal World to create some high quality shoppable video content together” says Paul Kendrick, chief executive of Studio.co.uk. “They have a talented team in place and state-of-the-art TV facilities. We know that our customers like engaging content to help them when considering a potential purchase. By providing this style of shoppable content we will not only reach new audiences - but increase touchpoints with our existing customer base. We’re excited to see the partnership in action this weekend, as we bring Studio Value to a new arena.”

  Studio.co.uk will launch its social shopping activity this month, starting with its fashion range. Categories including home, electricals, garden, toys and gifts are expected to follow in due course.

  Hamish Morjaria, chief executive of of Ideal World TV, says: “We are leading the way in social shoppable content in the UK that can be used across multiple platforms. Whilst there is no doubt social influencers can reach many audiences, our team of presenters are trained in engaging in high-energy and high-quality demonstrations, explaining the product in detail, enabling them to make a considered purchase with confidence. This gives TV the edge and is the reason so many retailers are looking to partner with us right now.”

  Lancashire-based Studio sells online, through its mobile app and catalogues. It has been part of the Frasers Group since February 2022, when the group bought it out of administration.

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Poundland expands Poundshop team as it prepares to launch UK-wide ecommerce service

Image courtesy of Poundland

Poundland is expanding the team at its Poundshop business as it prepares to offer a UK-wide ecommerce service. 

  Poundland bought online discounter Poundshop in March as a foundation for taking its own online business nationwide – and the business is expected to be rebranded as Poundland in the near future.

  Since then it has wound down its own pilot online operation, which operated in a limited number of UK postcodes for 18 months, and it is now recruiting 35 back-office, warehouse and fulfilment staff to join Poundshop’s 65-strong team in Wednesbury. A range of Poundland goods – from its Twin Peaks chocolate bar and Quantum toilet roll to electronics in its Viido range – is now available to buy online on Poundshop.com, while Poundland continues to integrate Poundshop into its own operations. 

  The update comes as Poundland parent company Pepco this week reports rising sales and profits in the first half of its financial year, to March 31 2022. Revenues of €2.4bn were 18.9% ahead of the same time last year, with like-for-like sales, reported on a basis that strips out the effect of store – and business - opening and closures, 5.3% ahead of last time. Underlying pre-tax profits of €144m were 28.5% ahead. 

  Rising inflation

Pepco says that in the early weeks of the third quarter, sales are ahead of pre-Covid-19 levels, with average sales at a selected cohort of Pepco stores now 13.7% above pre-Covid levels, and Poundland average weekly sales up by 4.3%. However, inflation is a factor in rising sales, with existing supply chain disruption and rising costs worsened by the invasion of Ukraine and that’s likely to have an impact on profitability. The retail group says that while all of its markets are affected by inflation – and particularly Central and Eastern Europe the most, that’s been offset by wage inflation in some of those markets.

  But in Western Europe – and especially the UK – the spike in inflation has resulted in lower spending by customers. “Specifically in the UK,” says this week’s statement, “the cost-of-living crisis has impacted customers’ disposable income as they scale back even on essential purchases in the short term. Our continue focus on reducing the costs of doing business means that we are able to offset some of our input inflation, allowing us to protect prices for all of our cost-conscious customers whilst also absorbing some of the input inflation ourselves, as evidenced by the decline in our gross margin.”

  Incoming Pepco chief executive Trevor Masters says: “We are proud of the group’s performance in the first half of this year and the strategic progress made across the business. Despite a challenging macro environment, we accelerated our strategy, including our store opening programme, which remains the key driver of value creation for the business. As pandemic restrictions progressively eased, it was also encouraging to see the strong return of customers and the continuation of this into Q3 result in the group’s like-for-like sales rising above pre-Covid levels for the comparable period three years ago.”

  Pepco, which trades in the UK as Poundland and in Europe as Dealz (in Ireland, Poland and Spain) and as Pepco, says that it opened a net 235 new stores in the first half, after closing 43 Fultons stores. In the full year it expects to open 450 new stores. So far it has refurbished 1,900 of its stores, including 265 Poundland shops. 

  The group is currently expanding into Germany, Spain and Italy in a way that it says will more than treble the size of its addressable market.

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Renault Group buys car maintenance platform Fixture as it looks to digitise its after-sales experience

Fixter co-founders, L-R, Frédéric Dermer, Limvirak Chea, Cristian Vrabie. Image courtesy of Fixter

Renault Group has bought the UK start-up behind a digital platform that connects car owners to garages for car maintenance. The acquisition of Fixter is part of the car giant’s strategy of digitising its after-sales business unit. It’s also an example of how the customer experience can move fully online, through a single platform. 

  Car owners can use Fixter to get their car serviced without ever leaving the house. They use the platform to book their car in for MOTs, services and maintenance, with Fixter making all appointments, getting quotes, negotiating prices, collecting the vehicle from work or home and returning it once the work is completed.

  Renault says the acquisition is part of its commitment to offer its customers the best quality, speed and price for after-sales repairs and maintenance. 

  Hakan Dogu, SVP global after-sales at the Renault Group, says it is “thoroughly modernising our after-sales value chain in order to better meet our customers’ expectations”. Dogu adds: “By acquiring the Fixter start-up, we will be able to combine the expertise and strength of the group and its network with Fixter’s agility and knowledge of all the digital aspects of automotive maintenance. We will thus be able to offer services of the highest quality and accelerate the digitalisation of our activities.”

  The Fixter platform was founded by Limvirak Chea, Frédéric Dermer and Cristian Vrabie in London in 2017.

  Chea, chief executive of Fixter, says: “We are delighted to have found in Renault an industry partner who shares both our vision and our ambition to reinvent vehicle maintenance for the future – simple, transparent and hassle-free. The expertise and resources of a major group like Renault, combined with Fixter’s agility and start-up mindset, will help us to go even further and faster in this revolution."

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AO to close German business and focus on the UK market

AO is to close its German business as shoppers revert to pre-pandemic buying habits and focus on the UK market. 

  The Bolton-based company, which has been selling in Germany since 2014, says that while German shoppers shifted further online during the Covid-19 pandemic, they have since moved back to their previous shopping habits. At the same time the market has since become more competitive and expensive to operate in, with rising costs in areas such as digital marketing. 

  Following a review, it has now decided to close the business, which currently accounts for about 10% of its total group revenue, at a cost of between nil and £15m. 

  Instead, it will focus on the UK market, where it is a leader in the pureplay electricals market and where it has confidence in both its strategy and long-term prospects. 

  AO says in a statement today: “Having evaluated a range of strategic options during the review process, the board has decided that closure of the German business is the best course of action. This decision was based on the continuing deterioration in the outlook for the German business, as well as the board’s responsibilities to shareholders and other stakeholders. The business will continue to trade for a brief period to facilitate a structured and orderly closure for its customers, suppliers and employees.”

  AO says it expects to continue to trade in line with expectations for the current financial year. 

  AO first announced the review of its German business in January, when it said that its German sales were down by 24% year-on-year in the third quarter of its financial year, contesting with a 12% fall in the UK market. 

  In a subsequent trading update, it said that it expected full-year revenues to come in at £1.6bn in the year to March 2022 – 6% lower than the previous year – and EBITDA to come in at about £8m, reflecting lower sales and higher logistics costs than the previous year, when it reported pre-tax profits of £20m. 

  AO is ranked Top500 in RXUK Top500 research. 

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DFS warns of slowing orders as consumer demand falls

DFS says orders have slowed as consumer demand has fallen in recent months. 

  The multichannel furniture retailer, ranked Top350 in RXUK Top500 research, says that while its orders grew by a double digit percentage in the third quarter of its financial year – to March 27 2022 – they have slowed in the fourth quarter. The fall in orders, it says, reflected Barclaycard findings that transactions fell by about 2.1% in April compared to pre-pandemic levels. That trend continued into May. 

  DFS says that in the second half of its financial year it had increased its weekly production and deliveries to record levels, but since April, both orders and production levels have fallen below expectations. Supply chain disruption has also been an issue. However, it says, it continues to retain its share of the market.

  The upholstered furniture retailer now expects full-year sales to come in at about £1.2bn, and pre-tax profits at between £57m and £62m. Both are ahead of pre-pandemic revenues of £996.2m and pre-tax profits of £50.2m in the 2019 financial year. Sales are also expected to be slightly higher than in the 2021 financial year, when DFS turned over £1.1bn, but its pre-tax profits are likely to be lower than the £99.2m that it reported that year. 

  DFS says that it expects to close the year with net bank debt of less than £100m, and that it continues to have further room for borrowing, with existing facilities of up to £215m. 

  By the end of the year it expects to have orders worth about £30m higher than pre-pandemic levels – equivalent to 2.5% of annual sales. 

  In today’s trading update DFS says: “It is difficult to forecast consumer behaviour over the next 12 months, but should the trends observed in April and May continue across FY23, this wold broadly balance the volume benefit from the elevated opening order bank. Following the growth of the group in volume terms relative to pre-pandemic levels, we also believe that we have the opportunity to drive further cost efficiencies from our scale.

  “However, our trading history shows that the group has gained market share during periods of furniture market decline, and we believe that we will remain well-positioned against the market, given our scale, brand strength and our integrated retail strategy.”

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Asda expands fast delivery partnership with Uber Eats

Asda has expanded its fast delivery partnership with Uber Eats. The supermarket has added a total of 88 stores to the scheme, giving customers delivery in as little as 30 minutes from 405 shops. In total, Asda has 645 shops. 

  Customers can also now start to order bundles of food that is regularly ordered together, on themes included a ‘vegan stock up’, ‘breakfast fry up’ and ‘build a sandwich’. In total, shoppers can now order from a range of more than 1,800 of the supermarket’s products on the Uber Eats app – from seasonal to everyday products. 

  Simon Gregg, senior vice president of ecommerce at Asda, says: “We’re seeing an increasing number of customers shopping for tonight as well as for tomorrow through the wide range of delivery options now available. Our partnership with Uber Eats means we’re able to offer rapid delivery in nearly 100 new locations, saving even more of our customers an extra trip.”

  In all, Uber Eats now delivers from more than 4,300 grocery and convenience stores around the UK, bringing customers products from Friday night takeaway food to essential groceries mid-week. 

  Alex Troughton, head of grocery and new verticals at Uber Eats UK, says: “Uber Eats customers have embraced grocery delivery and we’re thrilled to be expanding our offering with Asda to 405 locations across the UK. Its brilliant to see one of the UK’s biggest supermarkets invest in delivery innovation through their new in-app bundles.”

  The move is the latest news in the rapid expansion of fast grocery delivery that has grown quickly since the Covid-19 pandemic. In March 2022, a study from Wavemaker found that 9% of UK adults used a fast delivery service to get their groceries within an hour of ordering – and found that half of those who use them expect to be using them more within a year. The media agency questioned 2,000 UK shoppers about the delivery services they use and when, and why they use them for its Need it Now Revolution white paper. It found that use of fast delivery services is currently relatively low – compared to the 42% who order online from a supermarket, the 38% who order takeaways for restaurant delivery, and the 36% who order takeaways from a delivery service such as Uber Eats, Just Eat or Deliveroo - but that those who have used them are enthusiastic. 

  Asda is an Elite retailer in RXUK Top500 research.

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Retail sales fall online and offline in May as the ‘post-pandemic spending bubble bursts’: BRC/Barclaycard

Retail sales fell both online and offline last month as the cost-of-living crisis hit demand, the latest figures suggest. At the same time, the proportion of sales taking place online appears to have settled at about 39% of non-food sales, just over a year since the end of the last UK lockdown, according to the BRC-KPMG Retail Sales Monitor for May 2022. British Retail Consortium (BRC) chief executive Helen Dickinson says the post-pandemic spending bubble has burst as consumer confidence falls.

  Meanwhile, Barclaycard figures for the month suggest shoppers spent more on essential items as prices rose, but cut back in areas such as online subscriptions.

  How shoppers spent online

Online sales fell by 8.5% in May, compared to the same time last year – when they had fallen by 8.1% a year earlier, according to the BRC figures. At the same time, the proportion of non-food sales taking place online fell to 38.7% from 42.2% last May. That’s still 7.3 percentage points ahead of the 31.4% of sales that were online in May 2019. 

  “Online sales appear to have stabilised at a new normal,” says Helen Dickinson, chief executive of the British Retail Consortium (BRC), “with the share of total non-food retail sales coming through digital channels settling at around 39% compared with 30% pre-pandemic, though this is well down on lockdown peaks.”

  KPMG UK head of retail Paul Martin says: “Online, although still significantly higher than before the pandemic, has now experienced a double-digit decline over the last three months.”

  Barclaycard analysis suggests that shoppers cut back on spending on digital content and subscriptions (-5.7%). A fifth (21%) of shoppers questioned in its consumer survey said they were reviewing subscriptions and cancelling any they could live without. That included 18% who cancelled a TV or streaming service. 

  How shoppers spent across sales channels and in-store 

Sales across all channels fell by 1.1% in total compared to last May, when they had grown by 28.4%. That’s below the average both over three months (+0.7%) and 12 months (+4.1%). Total retail sales were 6.2% ahead of the same month in pre-pandemic 2019. 

  On a like-for-like (LFL) basis, which strips out the effect of store – and business – openings and closures, UK retail sales across channels fell by 1.5% on last year. A year earlier, they had grown by 18.5% in the first month that was fully free of the third UK lockdown.

  The BRC’s Dickinson says: “Sales continued to see declines as the cost-of-living crunch squeezed consumer demand. Higher value items, such as furniture and electronics, took the biggest hit as shoppers reconsidered major purchases during this difficult time. Nonetheless, fashion and beauty did well as people prepared for holidays abroad and the summer’s social calendar; with red, white and blue outfits adorning shopping carts ahead of the Jubilee weekend.”

  She adds: “It is clear the post-pandemic spending bubble has burst, with retailers facing tougher trading conditions, falling consumer confidence, and soaring inflation impacting consumers spending power. Supply chain issues including rising commodity and transport costs, a tight labour market and higher energy bills are forcing retailers to increase their prices, contributing to wider inflation. Profits may be squeezed further, as retailers continue to find efficiencies in their own operations and supply chains to reduce the impact of future price rises for consumers.”

  Food sales fell both in total (-0.7%) and LFL (-1.3%) in the three months to May, below the 12-month average (+0.6%).

  Non-food retail sales grew in total (+2%) and fell on a LFL basis (-1%) over the three months. That’s below the 12-month average (+7%). In May alone, non-food retail sales fell. 

  In-store sales were 31.5% ahead of the previous May in total, and up by 24.1% LFL. However, both are behind the 12-month average (+39.2%). Shoppers appear to be spending less in-store on non-food items than before the pandemic, with sales 57.5% lower in total than in May 2019. 

  KPMG’s Martin says the second consecutive month of retail sales decline shows shoppers becoming more sensitive to the cost of living. The biggest year-on-year declines were in homewares and computing, while sales of clothing, footwear and accessories rose both in-store and online. He adds: “The rising cost of living is going to remain the main story for retailers for the immediate future, with consumer confidence a key factor to watch out for.  Retailers will be hoping that a post-Jubilee and summer feel-good factor begins to improve confidence amongst some shoppers – as presently overall confidence levels are lower than sales may suggest. Cost and efficiency will firmly be top of agenda for most operators, and understanding how they can protect their margins whilst remaining price competitive for consumers.” 

  Susan Barratt, chief executive of grocery analyst the IGD, says: ““Whilst the last four weeks show modest growth, we increasingly expect that value sales are being boosted by inflation this year and that underlying volume trends are weaker as shoppers economise to manage the cost-of-living challenges they face.

  “Shoppers are finding it incredibly tough right now, and although the Chancellor’s announcement of a cost-of-living support package may have offered some respite, our Shopper Confidence Index data for May shows that shopper confidence is still incredibly low. Spending priorities are changing rapidly in reaction to continuous price rises, with shopper coping strategies differing by individual life circumstances.”

  Barclaycard research, meanwhile, showed that spending on essential items grew by 4.8% in May, as inflation and fuel prices (+24.8%) both rose, and that spending on travel (+189.7%) outpaced inflation. Shopping at supermarkets (-2%), on specialist food and drink (-0.9%) and in restaurants (-5.9%) fell, while energy costs grew by 34.5% on last May. Some 88% of survey respondents said they were concerned about rising household and energy bills, and 41% are looking for ways to save energy and water at home. 

  José Carvalho, head of consumer products at Barclaycard, says: “The cost of living squeeze is clearly influencing discretionary spending habits, with figures showing a decline in subscriptions, and a drop in spending at restaurants, bars, pubs and clubs. Despite this, there are some encouraging signs, particularly in travel industry, as Brits’ appetite for going abroad continues to grow as we approach the summer holidays.

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JD Sports sets aside about £2m against potential CMA finding of price fixing

JD Sports says it’s setting aside about £2m in its upcoming full-year results to cover a CMA fine and legal costs following a provisional finding that it may have colluded with Rangers FC and its kit manufacturer Elite to fix the price of replica kit online and in stores. 

  The Competition and Markets Authority alleges that the multichannel retailer worked with Rangers FC and its kit manufacturer Elite Sports Group to stop JD Sports undercutting the price at which Elite sold a replica Rangers top in the 2018/19 football season. It says that the Glasgow club was concerned that JD Sports was selling the Rangers replica top for less than Elite, which was then seen as the club’s retail partner, at the start of the season. The three reached an understanding, says the CMA, that JD Sports would raise its price for a Rangers adult short-sleeved home replica shirt by almost 10% – from £55 to £60 – to bring it in line with the price that Elite charged on its own Gers Online website. At the time, JD Sports was the only UK-wide retailer selling those products. Elite sold online through the Gers Online website and later in stores in Belfast and Glasgow. 

  Collusion amounting to cartel activity, says the CMA, continued between Elite and JD Sports over a longer period of time – running up to the end of the football season in 2019, when discounts were aligned so that the two could avoid competition and protect their profits margins at the expense of fans.

  The CMA says that both Elite and JD Sports have cooperated throughout its investigation and admit cartel activity, and both will receive a reduction on any financial penalties that it imposes. Businesses found to have infringed the Competition Act 1998 can be fined up to 10% of annual worldwide group turnover. 

  Michael Grenfell, executive director of enforcement at the CMA, says: “We don’t hesitate to take action when we have concerns that companies may be working together to keep costs up. Football fans are well-known for their loyalty towards their teams. We are concerned that, in this case, Elite, JD Sports and, to some extent, Rangers, may have colluded to keep prices high, so that the two retailers could pocket more money for themselves at the expense of fans.

  “These are the CMA’s provisional findings and the companies involved now have the chance to make representations to the CMA before it reaches a final decision.”

  JD Sports says it will now review the CMA’s provisional findings with its advisers, and that it intends to set aside about £2m in its full-year statement for the 52 weeks to January 29 2022, as its best estimate of what it will be likely to pay, both in fines and related legal costs. 

  In a statement, Rangers FC says that today’s statement of objections from the CMA represents only its provisional view. It adds: “It is not a finding that Rangers has broken the law and does not mean that the CMA will issue a final decision or impose a fine on Rangers.

  “Rangers is committed to operating its business in full compliance with all laws, including competition law, and treats this matter very seriously. As such, Rangers will review in detail the CMA’s preliminary findings and will be submitting its response to the CMA in due course. Rangers notes that it has cooperated with the CMA since the investigation was initiated and will continue to do so.”

  InternetRetailing has contacted Elite Sports Group for a comment, which will be added here in due course. 

  JD Sports is ranked Leading in RXUK Top500 research. 

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GUEST COLUMN Personalisation – a personal perspective

Over the years I’ve been in ecommerce there have been many themes that for a period of time have dominated the digital airwaves. Big data, internet of things, apps, the single view of the customer,

cross-channel/multichannel/omnichannel/no channel (delete where appropriate) and, most recently (and scarily), the metaverse have all had their time in the sun. Whilst some of these remain relevant, none have had the continuous presence as personalisation. For years now, it’s been a mainstay of ecommerce experience and marketing and there are literally thousands of tech providers promising to deliver it to your customers and achieve great results. 

  To define personalisation, it’s broadly the presentation of relevant products, services or content to a prospective customer based on data that has been collected about that individual. When I started in retail you basically had one offer and one message for everybody. Almost nothing was tailored and it was a case of ‘take it or leave it’. Now there’s almost infinite flexibility. With this breadth it’s tempting to try to do everything, but while some things are definitely worth doing, others aren’t. 

  So, what are the factors that determine why it works in some circumstances but not in others? I believe there are three principal dimensions that determine whether and how personalisation is going to be effective. 

  Intent

  Building an understanding of customer intent is truly the holy grail of retail. If you understand what a customer wants, it can help drive pretty much every aspect of your interaction with them. There are two principles that I find helpful when thinking of intent, namely drive and specificity. 

  Drive describes the level of customer intent. Is the customer determined to buy or relaxed about it (need vs want)? Are they in a hurry or do they have time to browse (now vs whenever)? Have they decided to buy from you or are they shopping around (you vs whoever)? How far have they gone in the buying process, e.g. looking at delivery options, adding to basket? 

  Specificity is related but has its own characteristics. Does the customer know what they’re looking for or are they looking for ideas or inspiration? Have they got all the information they need or do they need more to proceed? Have they searched for something generic, eg. ‘walking shoes’ or for something very specific eg. ‘Salomon X Ultra GTX’. 

  Clearly, the more drive and the more specificity you can glean, the better and the more valuable that consumer is to you and the more specific your personalisation should be. The more that you have to assume, eg. based on historic buying behaviour or looking at profile characteristics, the less valuable and the less you should tailor. 

  Preferences

  The idea is that the better you understand what someone does and doesn’t like, the better the recommendations that you present to them. It makes a load of sense, but it’s an area where the claims of technologists have always bothered me. At heart it’s because I don’t like the idea that my behaviour can be predicted by algorithms – surely I’m an independent-minded and spontaneous individual who cannot be tied down by AI! Well, clearly there’s something in between the two extremes and it may be instructive to think through where it is. 

  Looking at product categories may be helpful. There are some categories where preferences are integral to the purchase process, others where they’re less integral but still relevant and some where they’re incidental or irrelevant. 

  Let’s take grocery shopping first. This is an area where preferences are integral and where observed buying is a pretty good guide to predicted buying. It’s no surprise that CRM, big data and hyper personalisation emerged from this sector. Toiletries and cosmetics also fit this model of high repeat purchase and relevant brand or product preferences. 

  Fashion strikes me as being somewhere in the middle. The key preference here seems to be a brand preference which dictates the brands I choose to shop with. If you can present me with relevant alternative brands before I’ve started shopping perhaps that might tempt me to explore. This marketing arena seems the best application for personalisation. Once I’ve started my purchase journey I’m not sure there’s much value, other than reflecting my gender or remembering that I only really ever buy dull-coloured polo shirts (a scurrilous myth perpetuated by my wife). 

  At the incidental end is perhaps my most recent sector, furniture. For starters, frequency of purchase is low and repeat purchase almost unheard of, so it’s hard to make predictions on a customer’s next purchase. Added to which, it’s difficult to gauge preferences. What someone deems important in a sofa they might see as irrelevant in a dining table or pendant light. Perhaps at Heal’s we were missing a trick, but we really struggled to get much out of preference-based personalisation.  Instead we focused on intent-based programmes. 

  Whatever sector you’re in, have a think about whether customer preferences are integral, relevant or incidental to purchases. And of course, whether you have enough data points to glean these preferences. If you assume too much it may do more harm than good.  

  Channel

  The final dimension to consider is channel.  Personalisation tech can be applied at some level in every aspect of digital marketing and web experience, but some will be more valuable than others. 

  All customer acquisition activity benefits from personalisation or at least profiling. Being able to target the right message to the right person at the right time is one of the beauties of digital marketing. So this is a no-brainer. Another no-brainer is where a high level of intent has been shown. In these cases you’d be foolish not to follow up with personalised messages. 

  Where you choose to apply across other areas of customer experience and how much effort and resource you put into each is worth thinking about. Let’s take email as an example. If you’re a business for whom preferences are integral then you really should be personalising emails, or at the very least segmenting them. If you’re not, it may not be worth the effort.  Similarly with onsite experiences. You may be better off using standard algorithms to show alternative or complementary products, rather than imagining you can personalise them to what you assume appeals to the specific customer’s preferences. 

  Having looked at technology and its applications, I’ll finish with a word on what we found to be the most effective personalisation tool at Heal’s. It turned out to be good old-fashioned person-to-person interaction. After all, what could be more personalised than actually talking to a real person about your needs, your preferences and your questions. Our online chat feature, which connects customers to in-store team members, delivered more than 5% of total company sales in 2021. Our telesales operation (basically one expert person at the end of a phone line) was even bigger. It just goes to show that tech is important, but it ain’t everything. 

  David Kohn is a retail veteran whose experience most recently includes customer and ecommerce director at Heal’s, and previously commercial and digital roles at WHSmith, Waterstones, Borders and Snow+Rock Group. Now acting as an independent advisor, David remains on the look-out for interesting and effective innovations.

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WE DEMAIN : Au coeur du premier atelier de reconditionnement ouvert au grand public

C'est génial comme initiative. Et cela se passe à Caen. Le français YesYes fait le pari du reconditionné en toute transparence. Au point d'ouvrir un premier atelier ouvert au grand public.

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Dr Martens says iconic brand is stronger than ever as it prioritises direct-to-consumer sales online and in-store

Image courtesy of Dr Martens

Dr Martens today says its iconic brand is stronger than ever after a financial year in which direct-to-consumer sales were its top priority – and despite supply chain disruption. Almost half (49%) of Dr Martens brand sales were made direct to shoppers, with strong growth online and in its stores – and profitability rose as a result. 

  That came despite Covid-19 factory closures in south Vietnam – representing a third of its production – for more than three months during the year. At the same time, shipping times to the US nearly doubled. The brand responded by prioritising stock into its own, higher margin, direct to consumer sales channels. Covid-19 also hit demand in its smallest APAC region. However, 90% of production capacity is now up and running.

  The update comes as Dr Martens today reports revenue of £908.3m in the year to March 31 2022. That’s 18% higher than in the previous year. Direct ecommerce sales were 11% up on the previous year and 92% ahead of its 2020 financial year, when only 29% of direct sales were online. 

  Own store sales recovered in markets where Covid-19 restrictions had been lifted, rising by 86% on last year, and accounting for 20% of sales – seven percentage points (pp) ahead of last time. It opened 24 new stores during the year and plans to open more in the coming year, especially in the US. 

  The fast growth in direct sales came alongside 5% growth in wholesale, while profitability increased as more sales were direct. Gross margin grew by 2.8pp to 63.7%. 

  The fastest growth was in the Americas (+29%) and EMEA (+19%), although sales in its smallest region – APAC region (-10%) – were affected by continuing Covid-19 restrictions.

  At the bottom line, pre-tax profits of £214.3m were 207% ahead of last time. 

  Dr Martens chief executive Kenny Wilson says: “Today’s strong results have been driven by our proven DTC-first strategy and continue to build upon our track record of volume-led growth.”

  He adds: “Our results were achieved against unprecedented Covid-19 disruption in our supply chain, which our teams navigated with flexibility and dedication. We have always said that driving brand equity is our first priority as it will ensure sustainable growth in the decades ahead. Our recent comprehensive brand surveys shows that our brand is stronger than ever, with significant growth in awareness, familiarity and recent purchase. Dr Martens remains incredibly underpenetrated globally, giving us conviction in our future growth ambition.”

  Looking ahead, the brand now expects sales growth to be in the high teens in the coming year. In the medium term it aims to make 60% of sales direct to shoppers, with 40% via ecommerce. 

  Engagement strategy

Dr Martens continues to spend on marketing in order to build brand awareness and engagement. It has 9.8m followers across its social media platforms. That’s 8% up on last year. It says its Instagram engagement rate is strong in comparison with competitors, while it launched on TikTok last year and now has more than 300,000 followers, 18m views and 2m likes.

  Sustainability strategy

Dr Martens aims to reduce the amount of waste it sends to landfill to zero by 2028, by which time 100% of the product’s it sells will have a sustainable end of life option. In April 2022, it started its first trial of more sustainable repair and resale services – and says early results are encouraging.

It also aims to make all footwear from sustainable materials by 2040. 

  During the last financial year, it focused on trialling alternative materials, invested in the way it measures its carbon footprint, sourced all of its leather from tanneries that have Leather Working Group accreditation and reduced the plastic content of its shipping bags. 

  Dr Martens is ranked Top500 in RXUK Top500 research. 

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Frasers Group buys Missguided out of administration

Image courtesy of Missguided

Frasers Group has bought Missguided out of administration, and says it will operate as a standalone business within the group. 

  The group has spent £20m cash to buy intellectual property related to Missguided and its menswear brand Mennace, founded in 2017 from the administrators. 

  Michael Murray, chief executive of Frasers Group, says: "We are delighted to secure a long-term future for Missguided, which will benefit from the strength and scale of FG’s platform and our operational excellence. Missguided’s digital-first approach to the latest trends in women’s fashion will bring additional expertise to the wider Frasers Group."  

  The move comes days after Missguided called in administrators from Teneo Financial Advisory. Administrators will run the company under a transitional arrangement for about eight weeks. Missguided will then run as a standalone business within the Frasers Group. 

  Administrators earlier this week said Missguided had failed as the cost of running the business continued to rise, but shoppers were less confident to buy. It cited “increased supply chain costs, general cost inflation and softening consumer confidence in an increasingly competitive market”. 

  Commenting on the acquisition, Marcel Hollerbach, CIO of Productsup, says consumers’ interest in buying more sustainably also played a part. He says: “Missguided collapsed from a combination of factors, and while the cost of living crisis undoubtedly puts a strain on retailers, perhaps the most detrimental element to their demise is because the fast fashion giant fell short of meeting changing consumer expectations.” 

  He cites Productsup research that suggests 67% of shoppers are more likely to buy if they see clear information on sustainability. 

  He adds: “Research also shows the top priority for consumers is purchasing reusable (71%) and recyclable (70%) products. Therefore, brands must prioritise accurate product information on sustainability credentials if they are to appeal to this new era of eco-conscious consumers. Businesses looking to engage sustainable-conscious consumers will need to ensure their tech stacks can handle the multidimensional, multidirectional flows of product information to support faster speeds, more channels, and new innovations.”

  Missguided was founded by Nitin Passi in 2009 to sell fashion to women aged between 18 and 34. The fast fashion retailer sells exclusively own brand clothing, with about 400 new lines a week developed by an in-house design team to reflect emerging new trends. Today it serves 3m active customers online, delivering to more than 180 countries around the world. 

  The Manchester-based retailer previously went through a restructuring process at the end of 2021 as it looked to better match its costs to its performance. 

  Missguided is a Top250 retailer in RXUK Top500 research. 

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Administrators take charge at Missguided, hit by rising costs and falling consumer confidence

Image courtesy of Missguided

Administrators are now in charge at Missguided after the fashion retailer failed in the face of mounting costs and softening consumer confidence. 

  Teneo Financial Advisory was appointed yesterday to run the company, which is continuing to trade as administrators look for a buyer. Teneo says there is a high level of interest in buying the company, which it says has suffered from “increased supply chain costs, general cost inflation and softening consumer confidence in an increasingly competitive market”. 

  The retail brand will continue to trade while the joint administrators – Dan Smith, Daniel Butters and Benji Dymant – look to complete a sale of the business and its assets. 

  Gavin Maher, senior managing director of Teneo, says: “As we continue to see, the retail trading environment in the UK remains extremely challenging. The joint administrators will now seek to conclude a sale of the business and assets, for which there continues to be a high level of interest from a number of strategic buyers. We thank all employees and other key stakeholders for their support at this difficult time.”

  Missguided was founded by Nitin Passi in 2009 to sell fashion to women aged between 18 and 34. The fast fashion retailer sells exclusively own brand clothing, with about 400 new lines a week developed by an in-house design team to reflect emerging new trends. Today it serves 3m active customers online, delivering to more than 180 countries around the world. 

  The Manchester-based retailer previously went through a restructuring process at the end of 2021 as it looked to better match its costs to its performance. 

  News of Missguided’s failure comes amid warnings that many small and medium-sized businesses could be at risk. The Federation of Small Businesses warned on Monday that almost half a million businesses could fail within weeks without government support. Consumer inflation hit 9% in April, as energy and petrol prices rose along with food prices. 

  Missguided is a Top250 retailer in RXUK Top500 research. 

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Royal Mail expands Sunday delivery to all its retail and marketplace seller customers

Royal Mail is also using more electric vehicles to deliver. Image: SWNS/courtesy of Royal Mail

More than 12,000 of Royal Mail’s online retailer customers will be able to deliver to their customers on a Sunday from this weekend. Any retailer or marketplace seller using the Royal Mail’s Tracked24 service will be able to provide next-day delivery for items ordered on a Saturday. 

  The Royal Mail says the expansion of the service from 75 retailers to more than 12,000 small and medium sized businesses will revolutionise online shopping in the same way as Sunday opening did for physical shops. The change means that items can now be ordered on a Saturday for next-day delivery – enabling many retailers to offer seven-day deliveries for the first time. 

  Royal Mail’s own research, carried out by Mintel, suggests that 77% of shoppers say fast delivery times make them more confident to shop online. The company says its move comes in response to growing parcel volumes as more shoppers buy online – and want to receive their purchases seven days a week. 

  Nick Landon, chief commercial officer at Royal Mail, says: “We all know how convenient it is to order something online that will arrive the next day. It frees up time with the family, in the garden, or enjoying your favourite sport. Now you can do the same when ordering from thousands of smaller online retailers using our Tracked24 service, seven days a week. Royal Mail is transforming to make sure we deliver what you need now and in the future. This change will help thousands of businesses to offer the most convenient delivery options to their customers and to compete and grow.

  “The UK already trusts Royal Mail to deliver their purchases six-days-a-week both quickly and conveniently. From now on you can trust us to do just the same seven days a week.”

  Royal Mail said in May that it was talking to the CWU (Communications Workers’ Union) about a new pay offer worth up to 5.5% – of which 2% of salary is performance related – in exchange for changes to working conditions related to structural changes in the service that it offers – such as seven-day a week parcel deliveries. The offer has been rejected by the CWU and the two have been in talks. 

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Retailers set for Platinum Jubilee boost to spending in-store and online: studies

Retailers are set to benefit from Platinum Jubilee spending both in-store and online, a series of studies suggest. Footfall is set to rise along with that spending, as shoppers visit stores for celebratory purchases from food and drink to memorabilia, the research suggests. 

  Platinum Jubilee spending set to top £3bn

  Shoppers are set to spend £3.47bn over the course of the four-day Platinum Jubilee, a study suggests. 

The research, in which Opinium questioned 2,000 UK adults on behalf of VoucherCodes.co.uk, suggests that spending in-store on food and drink will come to £2.25bn alone, while retailers will also benefit from £0.61bn in spending on decorations and the same on Jubilee memorabilia, from plates to tea towels and coins.

  More than a fifth (21%) of those questioned said they were stocking up ahead of hosting or attending a Jubilee or street party. And 52% would like to see the four-day Bank Holiday weekend become a permanent fixture. 

  Angus Drummond, senior director, commercial, at VoucherCodes.co.uk, says: “The forecasted boost in sales over Jubilee weekend will undoubtedly be welcome news for the retail sector. After several recent reports of consumers being forced to cut back on spending due to the cost of living crisis, shopping from those celebrating this historical event will be well received. 

  “With the bulk of the Jubilee economic boost predicted to come from retail spending, and strong public support for the four-day Bank Holiday to be made permanent, we anticipate retail brands to follow the hospitality industry in throwing their support behind the proposal. A permanent early June four-day Bank Holiday weekend could help provide a healthy revenue boost for retailers looking for a strong start to the notoriously tricky summer months.”

  Footfall set to rise

The combination of the Platinum Jubilee with school half-term holidays is set to lift visits to retail locations from high streets to retail parks by an average 8%, analysis suggests. 

  High streets will see the number of visitors rise by 10% on the previous week, suggests business intelligence specialist Springboard, with shopping centres (+7%) and retail parks (+4%) both set to benefit. 

  Last week, visits to all UK destinations rose by 2.3% compared to the previous week, with boosts to high streets (+2.2%), retail parks (+2.1%), and shopping centres (+2.5%). Compared to the same time last year, footfall was 16.9% ahead across all destinations, and down by 16.1% compared to the same week in pre-pandemic 2019.

  Diane Wehrle, insights director at Springboard, says: “With just a modest rise in footfall last week, we are anticipating a boost this week generated by the Platinum Jubilee Bank Holiday combined with the school half term break. This is likely to be supported by weather that is forecast to be sunny on Thursday and Friday but not hugely hot, followed by cooler weather with occasional rain over the weekend, making visits to coastal towns and leisure venues on these days less appealing for many and increasing the appeal of retail destinations.

“Looking at last week, which was the week leading up to both payday and the school half term break, there was a modest rise in footfall across UK retail destinations last week from the week before. Footfall rose to an equal degree across all three key destination types, although the results varied from day to day across the week, with footfall impacted mid week by rain - particularly in high streets. The best performing day was Friday, buoyed by warm sunny weather.” 

  How the Platinum Jubilee could help brands build new relationships

The Queen’s Platinum Jubilee represents a retail opportunity for those selling across channels, a new study suggests. And Princess Diana wedding dress co-designer David Emanuel says the event represents a change to find new customers for their brands. Among international markets, US shoppers are particularly to be interested in buying Jubilee-related merchandise, he says, and that could offer new opportunities for the future.

  More than 9m Britons will make at least one commemorative purchase during Jubilee celebrations, according to research from customer engagement platform Emarsys. It questioned 2,001 UK adults and found 41% were excited by Royal events. Respondents named Platinum Jubilee coins, commemorative newspapers, tableware and t-shirts as items they were considering buying over the coming Platinum Jubilee weekend. 

  More than half (52%) said they would make retail purchases connected to the significance of the weekend, with the largest group planning to buy alcohol (23%), followed by food for a barbecue (20%), cakes and biscuits (19%), and traditional English food (15%). Some 58% said they had planned to celebrate the event, including by watching celebrations on TV (20%) or by having a barbecue (14%). 

  Over a third (36%) estimate they will spend up to £50 over the Queen’s Platinum Jubilee weekend, while more than a quarter (29%) don’t plan on spending anything at all.

  Fashion designer David Emanuel — co-designer of Princess Diana’s wedding dress — says the event represents  “Royal events like the Jubilee have always been a uniquely British opportunity for shoppers to spend, and that interest doesn’t stop East of the Atlantic. The interesting challenge for retailers and brands looking to make the most of the celebrations is navigating that network of consumers. With so many Americans keen to get involved in the big day, they need to meet customers where they want to meet, with the right content at the right time. Retailers must not only trigger a purchase but create loyal brand ambassadors that keep coming back for more — even once the Jubilee is over.”

  Lucy Davies, from Emarsys, says: “With modern technology, we’re more connected to these types of events than ever before. Today, the average Brit has four shoppable devices in their homes, and most of these will be beaming back clips and news on the day itself. For retailers, this is a fantastic opportunity to promote relevant, personally-targeted items to a highly engaged audience.”

from InternetRetailing https://ift.tt/M5jg1Bp via IFTTT

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How the cost-of-living and climate crises are combining to make secondhand clothing a growing area of fashion retail

Shoppers are now more likely to buy secondhand clothing. Image: Fotolia

Second-hand clothing is fast becoming a must-buy for shoppers negotiating both cost-of-living and climate crises, a new study suggests. That means the resale market is building online, according to the research from eBay Ads. 

  The findings come at a time when eBay UK is currently sponsoring Love Island, and has brought in celebrity stylist Amy Bannerman to style this year’s islanders with secondhand styles.

  The study questioned 1,000 UK adults and found that 30% say they are now making more considered purchases to get better value for money, while 19% are buying more second-hand items in order to save money. Some 25% bought second-hand clothing in 2021, as they become more conscious of fast fashion, and a quarter of respondents told the study that they try to upcycle or repair their current possessions before buying new, while 20% frequently buy secondhand, upcycled or refurbished products. 

  In January, searches for ‘upcycled’ rose by 40% on eBay, compared to the previous month, searches for ‘second hand’ (+24%) and ‘repair kit’ (21%) also rose over the same period. Searches for pre-owned were 19% up in January 2021 on January 2021, and rose by a further 38% in January 2022. 

  Sustainability is a further reason to buy second-hand;  19% of shoppers said shopping as sustainably as they could was very important to them, while 22% are conscious of sending items to landfill that could be repaired, recycled or sold, and 19% try to avoid unethical brands, or fast fashion. Searches for ‘biodegradable’ rose by 59% on eBay in January 2022, month on month. 

  The leading factors that concern environmentally-conscious shoppers are sustainable packaging (37%), shopping locally (30%), whether a product can be recycled (30%), the product’s lifespan, and its sustainable credentials (24%). 

  Elisabeth Rommel, global GM at eBay Ads, says: “Between the rising cost-of-living and a growing desire to make more sustainable purchases, UK consumers are increasingly thinking about how they can be savvy with their shopping. With upcycling, buying second-hand, and more sustainably sourced products all rising on shoppers’ agendas, retailers in turn need to be adapting to these evolving preferences in order to engage their customers and contribute to the circular economy. Whether it be offering a repair service, starting a second-hand shop, or making packing and materials more sustainable - retailers must tap into what really matters to consumers today, and communicate sustainability credentials clearly in their marketing and product information.”

Commenting, Elissa Quinby, director of retail insights at product design specialist Quantum Metric, says the past two years have seen a clear shift in consumers’ shopping values. 

  “In the wake of Covid-19 and Brexit, combined with the current cost of living crisis, we are seeing a big shift in the way people are approaching shopping for non-essentials," she says. "They are prioritising the things that really matter to them rather than buying on a whim. To combat this, retailers have to focus on providing high-quality goods at the best price, alongside a knockout customer experience in order to stand out in the marketplace. Seeing preloved fashion being celebrated on screen, and being talked about, is going to help everyone understand just how easy it is to achieve fashion on a budget.”

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Co-op, Morrisons, Sainsbury’s and Tesco to use virtual reality to test new environmental labelling

Image courtesy of the Co-op

Leading supermarkets are using virtual reality (VR) to trial environmental labels as the food industry moves towards developing a harmonised scheme.

  Co-op, Morrisons, Sainsbury’s and Tesco will be trialling new label formats over the summer. Recent customers from each retailer will be invited to shop in a virtual store and to share their responses. The trial will be used to assess consumer awareness and how easy the environmental label is to understand. They will also look at how information is communicated at the point of sale.

  The work is being led by grocery analyst the IGD, which aims to mobilise the food industry to support a single scheme. It is being supported by a steering group of senior industry representatives who range from the retailers taking part to M&S and Nestlé, Defra, WRAP and draws on the expertise of technical consultants Anthesis. 

  IGD chief executive Susan Barratt says: “Environmental labelling is a very complex area, so the fact we are taking a coordinated approach to drive consensus across the whole sector, with support from leading food companies, is an incredibly important step forward.

  “To be successful, any solution needs to be pragmatic, possible for the industry to adopt at scale and able to be used by businesses both large and small. We want to deliver positive, lasting change and look forward to assessing the results of these trials as they progress.” 

  The first phase of the research started in January 2022, under the auspices of Walnut Unlimted, to test and inform the labelling framework – such as which environmental measures should be included. Consumer research into how the labels should be designed is underway, while the designs produced will be tested in this summer’s VR trials. 

  Barratt says: “We recognise there is a growing appetite from all parts of the food system to measure and communicate the environmental impact of individual products, to drive positive change in consumption habits. We also know there is a real desire for collaboration, to champion a science-based approach to environmental labelling supported by robust consumer insights. We have been working in close partnership with senior industry representatives, NGOs and technical experts over the last few months to develop an environmental labelling framework; seeing this workstream now move into the trial phase is an exciting next step.” IGD shopper insight research suggests that eight in 10 UK shoppers recognise on-pack colours as a way to compare products or make healthier choices, while the same proportion can interpret nutrition labels on the front of packs. 

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