the retail world is changing · traditional shopper online shopper multichannel social future the...
TRANSCRIPT
A report by Verdict Consulting for Webloyalty
March 2011
‘Getting ahead in a multichannel world’
Guy Chiswick
16th May 2012
The retail world is changing
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
Customers can shop when, where and how they want
The evolution of the consumer and the drivers
Traditional shopper
Online shopper
Multichannel
Social
Future
The Internet
Convenience
m-commerce
Information
Drivers Pre 1990’s
2020 and beyond
1990
1999
2008
2010
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
Use of multiple channels is now commonplace
53.9%
85.1%
92.9%
95.2%
52.0%
7.8%
Online shops
Physical shops
Internet sites
Telephone/ call centres
Catalogues
Mobile commerce
32.2%
Newspapers & magazines
23.8%
Retailer magazines
Traditional retail
The Future
The percentage of consumers using various channels at any stage of the purchasing process
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
And shopping trips are only going to become more personalised
A future shopping trip
Online In-store
Research products, availability and prices online
Product selection and details sent to mobile phone
Go to shop to view the product
Find product in a shop
Mobile used to scan products for price comparison and
product information
Customer locates nearest shop with
best price and availability using GPS
map
Customer finds online is cheaper, uses
mobile to go online and buy the product
Mobile used to reserve item at chosen store
Mobile used to download or redeem mobile coupon
Once payment is made, customer receives mobile coupon via text to redeem
against next online purchase
Message from retailer with recommendations
Customer logs into store, receives
update of deals and personalised
product suggestions
Customer reviews product and asks for
opinion Order product in store and
track delivery
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
Mobile has grown rapidly
52.0
62.9
71.877.3 79.3
28.2
2009 2010 2011 2012 2013 2014
% of UK population that uses m-commerce (at any stage of purchasing process)
3.8%
9.8%
% of UK shopping population that shop online via mobile phone
2009 2014
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
Mobile integrates well with other channels
Stores Catalogues Online
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
Mobile increases the probability of multichannel shopping
Compare
Research
Click & collect
Social/Opinion Purchase
Price check
Availability
Locate
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
Retail spend is declining in stores
All retail spend Non food retail spend
4.9 (£8.0bn)
95.1 (£154.1bn)
1994
87.7 (£280.3bn)
12.3 (£39.3bn)
2014
Store Non store 8.5 (£7.9bn)
91.5 (£85.1bn) 82.1 (£145.3bn)
17.9 (£31.7bn)
1994 2014
Store Non store
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
Fewer stores are being opened
-0.8
-1.3
-1.0-0.8
-1.7
-2.7
-3.3
-2.0
-0.3 -0.2
0.1
210,000
220,000
230,000
240,000
250,000
260,000
270,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-3.5
-3
-2.5
-2
-1.5
-1
-0.5
0
0.5
Stores Y-on-y grow th %
0.9
0.4
0.7
1.2
-1.5
-2.1
-1.8
-0.9
0.10.3 0.2
520
530
540
550
560
570
580
590
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-2.5
-2
-1.5
-1
-0.5
0
0.5
1
1.5
Space (millions sq ft) Y-on-y grow th %
Stores Space
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
Stores will look very different in the future
The store Fewer and larger
The staff Specialist, service
The layout Immersive & interactive
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
High street is losing its retail crown
1994 2014
High street
Neighbourhood
Out-of-town
Non store
4.9%
23.9%
21.0%
50.2%
12.3%
31.7%
17.9%
40.2%
Percentage share of total retail spend by location
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
0
200
400
600
800
1,000
1,200
1,400
1,600
2010 2011 2012 2013 20140
10
20
30
40
50
60
70
80
90
Online share Store numbers
6,000
6,100
6,200
6,300
6,400
6,500
6,600
6,700
2010 2011 2012 2013 20140
5
10
15
20
25
30
35
40
45
Online share Store numbers
Music & Video Electricals
38,500
39,000
39,500
40,000
40,500
41,000
2010 2011 2012 2013 2014
0
2
4
6
8
10
12
14
Online share Store numbers
14,400
14,420
14,440
14,460
14,480
14,500
14,520
14,540
14,560
2010 2011 2012 2013 20140
1
2
3
4
5
6
Online share Store numbers
Clothing Health & Beauty
Stores on the verge of a tipping point
Private & Confidential. Webloyalty International Limited is a company registered in England, company registration number 05922626, and its registered office is at Charter Court, 50 Windsor Road Slough, SL1 2EJ. ©2012, Webloyalty International Limited
Key action points
Multichannel retailing is developing rapidly .
Consumers want to shop how, when and where they want Information overload leaves us confused M-commerce will help drive multichannel integration
Loyalty harder to achieve
Establish a presence Offer flexible fulfilment
Consistent message M-commerce is the missing link that connects all channels
Consumer interaction should be personal and bespoke
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2
3
4
5
Consumer and retail trends Actions retailers should take
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1
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What are retailers doing about it?
What are retailers doing about it?
What are retailers doing about it?
What are retailers doing about it?
‘Thriving in a multichannel world’
Coming soon…
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