Retail Transformation Briefing: 10th July 2024
Oliver Banks
I help retailers drive operating model transformation and change // Consultant & Advisor // Author: Driving Retail Transformation // Podcast: The Retail Transformation Show // Keynote Speaker
With the UK’s general election now over, the new government looks to get to work to fulfil the promises and vision that has been laid out. There are many aspects of Labour’s manifesto for change, and as part of that, there are some elements which impact or adjust the retail sector, including:
In the latest episode of The Retail Show, I’m exploring the statements behind these goals and highlighting what we as the retail industry should look out for over the coming weeks/months/years.
Take a listen to the episode , and if you’ve not already subscribed to the podcast in your usual podcast app, then go and click that subscribe button now. The Retail Show my new weekly podcast and is the perfect accompaniment to the Retail Transformation Briefing.
Retail transformation news headlines
?? John Lewis & Partners is hoping to bring more colleagues to the shop floor and is looking to suppliers to fund this. The proposal has been made by Executive Director Peter Ruis and involves renegotiating contracts with fashion brands so they can pay the department store a lower rate of commission in exchange for getting more employees to work on their concessions. The initiative could lead to over 10% growth rates and delivers benefits to everyone involved, especially customers!
?? Selfridges are embracing the summer of sport and are looking to partnerships to help bring this to life. Working with Snap Inc. , they have launched an AR-enabled “locker room” area. Featuring smart mirrors and other tech integrations, it’s set to draw people in for fun and social engagement. Selfridges are also partnering with sports brand Champion , for a 2 month revamp of their Harry Gordon’s bar area. Featuring retro sports memorabilia and livestreaming sports, they’re hoping this will be a slam dunk / home run / goal / ace / insert your own sporting analogy here ??
?? TikTok Shop are running a major recruitment drive to level up sellers on the channel. In the UK, they’re launching the “￡1 million club” and are looking to support businesses and creators as they work towards a ￡1m revenue on the platform. The club allows businesses to access commission-free periods, complementary fulfilment services, training, support and exposure bonuses. Tiktok are also planning a sale event to directly counteract against 亚马逊 ’s Prime Day promotion.
?? Holland & Barrett are partnering with Next to open new shop-in-shop style concessions. The initiative begins with a 3 store trial, starting today. The stores will range around 1000 best-selling lines and should complement Next’s offering whilst making effective use of spare space in store.
?? Co-op are partnering with EG Group to use franchise agreements to drive growth in petrol/ fuel forecourts. Co-op bring convenience store expertise and an established operating models. This is a good partnership where both parties are specialising in their own unique area. The Co-op grows their convenience store estate, whilst EG starts to build a retail experience that’s more friendly to those charging EV vehicles.
?? Additionally, Co-op are working with Walmart Commerce Technologies to supplement colleague experience and enable online fulfilment. The Store Assist feature enables omnichannel fulfilment to become more streamlined, making it more efficient and enjoyable for colleagues to fulfil online orders.
?? Carlsberg Group and Hudson's Bay Company (HBC) are making big acquisitions. Firstly, Danish beer brewer, Carlsberg, is buying UK soft drinks manufacturer Britvic plc for ￡3.3b / $4.2b. Creating a beverage powerhouse. Meanwhile, HBC, the owner of Saks Fifth Avenue , will acquire rival department store Neiman Marcus Group for a $2.65b price tag. SAKS GLOBAL will be the new part of the HBC group, combining Saks Fifth Avenue, Neiman Marcus and the other luxury retail aspects of the group. The value for both of these acquisitions is in the synergies of building the group, including negotiating power, reach, cross-pollinating the existing customer base, and enabling operational efficiencies.
?? High-end department store Fortnum & Mason are launching new subscription services and are leaning into their iconic tea to act as the theme. Customers could sign up for regular orders of tea / biscuits / chocolate or all of the above. It’s great to see Fortnum & Mason continue to innovate and explore with new business models.
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Are we seeing the democratisation of retail right now? The barriers to entry are being crushed. All sectors of retail, supply chain, manufacturing, product design and commerce is essentially becoming open source and accessible to all. This welcomes a flood of competitive start-up businesses that can compete on a level playing field with established global corporates. In this episode, join me to explore what this means for incumbent retailers and customers.
Listen to episode 302 of the Retail Transformation Show and discover:
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Keep transforming better,
-- Oliver
?? I help retailers build effective operating models and drive transformation - with hands-on consulting services or advisory support.
?? I speak about the evolving retail industry and delivering transformation and also host two retail podcasts.
?? My book, Driving Retail Transformation: How to Navigate Disruption and Change , is out now.