Omni-Channel Retail Implementation // House of Fraser (UK)

About Multi-Channel & Omni-Channel Retailing

Retail marketing channel trends:

Focusing on the store / pure online or mobile experience

Creating various points of sale, whether physical or digital, where the shoppers have more options to choose from

A merging of the various channels, so that a shopping trip may seamlessly begin in one channel and end with another. In 2015 – 2016, channels are predicted to include new Internet of Things-led channels, including Beacons and wearables, to give the customers a better omnichannel / “phygital” experience.

single-channel

multi-channel

Omni-channel

About this Case Study

• House of Fraser is a British department store group with over 60 stores across the United Kingdom and Ireland

• House of Fraser is a shopper-centric retailer, responding to shopper trends and utilizing digital innovations in order to help the shopper gain a satisfying shopping experience

• This strategy has helped the company increase sales, and the retailer is considered as one of the best multi-channel retailers in the UK, and in our opinion – an omni-channel best in class. All that, in what seemed like an old-world industry – department stores.

• Here’s how…

House of Fraser | Multi-Channel Strategy

• 2014 online sales > 14%• 30% of customers shop

online / online and in-store

House of Fraser | From Mobile to Omni-Channel

• In 2013, the retailer noticed a substantial increase in traffic from mobile and decided to invest in mobile technology

• In addition to launching a mobile site, the company launched an app for in-store or out-of-store use

• The app detects that the customers are in store and slips into store mode.

The app includes a scanner enabling customers to retrieve product information, check stock availability, and even pay & have the product delivered to their homes. The app offers a loyalty program - collecting points and receiving rewards.

House of Fraser | Beta Testing Strategy

• The retailer pilots new ideas before any wide implementation. This allows the company to innovate often, in brave new ways, without risking a lot of money

Recent pilot: beacon-enabled store mannequins on the Aberdeen store in August 2014, enabling stores to be shoppable at night when customers pass the windows. When shoppers are within the 50-metre range of mannequins, the beacons provide shoppers with further information on items the mannequin is wearing via the app.

House of Fraser | Omni-Channel, Amplified

• Buy and collect has been a huge success in e-commerce. Retailers have been partnering with other industry players, to offer wider collection capabilities.

• House of Fraser has partnered with Caffé Nero, to enable customers to come in the coffee shop at their convenience to pick up items ordered online from House of Fraser.

• In-store, customers collecting online orders check in at self-service kiosks when they enter the store. They will then receive a text message giving them an estimated waiting time and a link through which they can check their progress. The method allows shoppers to enjoy a more leisurely experience and House of Fraser to potentially gain further sales.

Contact Us | info@researchci.com www.researchci.com

Established in 2009 by Hamutal Schieber, Schieber Research is a premium market research boutique, providing tailor-made reports and competitive intelligence reports. We assist Israeli and Global firms, to make decisions which take into consideration the relevant market, consumer and shopper trends; and to know and consider the most important aspects of their decisions.