The changing habits of back-to-school shoppers
Welcome to Retail Wrap-Up, your source of sector-specific news and insights from retail professionals on LinkedIn, curated by LinkedIn News UK editor Aaron Toumazou .
In this edition, we look at the trends and news stories that have dominated discussion on LinkedIn this month, from how retailers are preparing for back-to-school shopping demand to new AI price haggling tools.?
We also highlight member’s posts around plans for clothing-only 马莎百货 stores, consumers' reactions to gentrification and the need for brands to market to niche media sources to capture new customers.?
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Every day's a (back-to) school day
Earlier this month it was reported that Gen Z was set to spend ￡4.3bn on back-to-school essentials in the fashion, beauty and technology categories.
"This is a pivotal moment for brands to engage with Gen Z," the managing director of retail marketplace at UNiDAYS , Derek Morrison, said in a statement, "particularly freshers who are projected to spend more than any other year group, with an average expenditure forecast of over ￡2,500 per student."
In a recent video published on LinkedIn , 谷歌 's managing director for retail and consumer goods, Sophie Neary , drilled further into what consumers would be buying in the lead up to school returns – "the UK's biggest seasonal moment after Christmas and Black Friday".?
Neary notes how customers are starting their back-to-school shopping search earlier than ever, with demand peaking in August.?
She also says that searches concerning help and inspiration are highest, with generic search terms overtaking searches for specific brands and thus suggesting customers are more open to discovering new options.
The cost of living remains a pressing concern for many back-to-school shoppers, however, with Neary divulging a 24% increase in comparison queries (a search query where users compare two or more items) on last year. "This indicates that shoppers are looking for the best value for their money and making their precious pounds work as hard as possible."
The evolution of high street hospitality?
Themed bars centred on activities such as axe-throwing, mini-golf, darts and ping pong have propelled the UK hospitality sector towards its first quarterly increase in outlet numbers in two years, according to the Hospitality Market Monitor by consultancies CGA , NIQ and AlixPartners .
According to Mark Warne , director of hospitality and leisure at Landsec , the latest data reflects what’s been happening at the many shopping centres and retail hubs it owns.
"Sales in both hospitality and leisure have grown every year post-covid. And since 2019, competitive socialising's footprint has gone up 101% in our retail destinations across the UK," he shared, noting that the number of brand partners Landsec has in this field has doubled.
The Debate
Will AI haggling tools transform how we shop?
Artificial intelligence is transforming the way we shop in countless ways, and this month, its ability to negotiate prices has taken centre stage. This emerging technology, highlighted in a post by AI and digital marketing expert Marcos Angelides , features tools such as Nibble that can secure additional discounts for shoppers and are already being integrated into e-commerce platforms like ASOS.com .
However, the value of this technology is still up for debate. For technical marketing expert Eran Levy and several others commenting on Angelides' post, AI haggling feels more irritating than innovative . "Want the same discounts and promotions that we used to offer automatically?" Levy asks. "Sorry, you need to go through a cringeworthy ‘negotiation’ with an AI model before you get it."
On the other hand, member experience professional Mark Sage sees potential in this approach . "What’s interesting is that it’s a form of member pricing. Today, you can walk into Tesco and pay sticker [full price] as a non-member or be a loyalty member and get the member price," he writes. "The dream of loyalty, though, has been to price based on a customer's price sensitivity … Combine [AI haggling] with loyalty data, and we’ll know your promotional sensitivity, purchase history, potential future value, and likelihood to churn. All that can go into the haggle."
What are your thoughts on the use of AI negotiation tools? Share your thoughts in the comments.
Food for thought
Can clothing stand alone at Marks and Spencer?
Off the back of a resurgence in its clothing division, 马莎百货 has announced intentions to open a range of clothing-only stores , with its first standalone shop due in London’s Battersea Power Station later this year.
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"This is a bold move by Marks and Spencer and they are clearly confident that fashion-only stores will perform well given recent volume growth in fashion sales," wrote retail consultant Jonathan De Mello in a LinkedIn post. "However, much of the attraction of M&S is in linked food and fashion trips, which this new offer will not benefit from."
What do you think of this development from Marks & Spencer? Share your thoughts in the comments.?
Has Gail’s become too big for its own good?
Residents of Walthamstow, London, are campaigning to stop GAIL's , a fixture of gentrified town centres all over the UK, from opening a new site in the area.
In a LinkedIn post by Koral Ibrahim , the founder of creative agency The Ready House , he explains that locals fear the upmarket bakery could drive out independent businesses in the area.
But Ibrhaim believes all this was preventable. "One of Gail’s key marketing drivers since its inception was to be perceived as a local bakery," he writes. "I suggested Gail’s started to honour the local communities they found themselves in by localising certain aspects of their menus. They haven’t, they won’t, and now the backlash begins."
Should niche media take more of brands' marketing share?
Shifts in search engine algorithms and the general retail landscape are forcing brands to think differently about where they have a presence.
For Christopher-Jacques Morency , the co-founder of a creative growth company, niche "new media" platforms have become increasingly important for brands. This includes everything from podcasts and newsletters to brand-fan social accounts and Reddit, Inc. , the latter of which has seen traffic nearly triple in a year.
“If publishers are doubling down on these 'new media' fan-to-fan platforms … to reach new audiences, then brands themselves, who are increasingly acting like media companies with their growing presence across social channels and content investments, should be following suit," writes Morency.
Is Aldi right to shun online?
As other supermarkets invest more in online services, Aldi UK scrapped its click-and-collect service this month, bringing up questions about discounters' relationship with e-commerce.
In a recent LinkedIn post, retail consultant Nicholas Found dissects the logic behind Aldi's move.?
"Part of the genius of Aldi’s proposition is streamlined operations and no-frills experiences," he wrote. "Adding click-and-collect to the offering introduces a layer of complexity that isn't just logistical."
He goes on to explain how passing the cost of click-and-collect onto customers would undermine its value proposition and that its in-store shopping experience encourages impulsive purchases that online shopping cannot replicate. However, he doesn't rule out the supermarket chain trialling online shopping when technology evolves to not burden its core business model.
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Cost Optimisation Expert Helping CEOs & CFOs Save Up to 27% on Overheads | LinkedIn Top Voice | ￡10.1bn Managed Spend | ERA Consultant | MD, CFO, Audit Chair
2 个月I do love the short sharp snippets this month Aaron. I do think more is made of the M&S Fashion only outlets that is needed - is this really so radical? I think a few years ago the flip the other way to mostly food only - that was radical! But it wouldn't take too much in a fashion only store to see a few food lines creep in - first a few sandwiches far easier than adapting the food only stores - now they were brave!
C-Suite/ NED/ ESG Trainer/ Director at CIOEL/ Strategy Podcaster
2 个月According to Statista, the size of the AI market in the UK is expected to stand at just over ￡4.5 bn this year. And the market following the nation's strong funding & innovation towards AI, it is expected to grow beyond ￡20 bn by 2030. This year the eCommerce market is projected to reach ￡98.4 bn & reach ￡143.3 bn by 2029 in the UK. Globally advertising spending leverages on AI technologies reached $370 bn & is expected to escalate to $1.3 trillion by 2032. Gen Z shoppers are set to buy products during the holiday season & retailers are planning to invest in AI, social media advertisements to attract them. Shopify brings an insightful read "AI in Retail: Use Cases & Examples"?? https://www.shopify.com/retail/ai-in-retail
Senior Consultant at Retail Economics
2 个月Thanks for sharing. Great update
Founder & CEO at JDM Retail | NED | Top 25 Retail Influencer | Top 100 Retail Tech Influencer
2 个月Fantastic news roundup as always.
Founder & Managing Director at The Ready House
2 个月Thanks for the mention. Great insights