Retail Transformation Briefing: 24th 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
A compendium of stories awaits you in this week's Retail Transformation Briefing.
Did you know - you can get more info and perspective on all of the stories in The Retail Show podcast - it's the new sister show for my existing podcast and perhaps is the perfect way to help you stay up to speed with the ever-evolving world of retail. So be sure to tune in this is the perfect show for commuting, at the gym, walking the dog, doing the dishes or whatever you do when listening to podcasts! (By the way, I love hearing the various places and activities where people tune into podcasts! Do let me know where you listen to yours).
You'll find The Retail Show available in all of the usual podcast apps, including:
?? Spotify
?? Amazon Music
I hope this new podcast gives you food for thought and inspires some new thinking and new discussions.
Retail transformation news headlines
?? The CrowdStrike issues caused major IT outages across the world. There has been plenty of press about this so I'm sure you're up to speed! For more about what we can take away from this, check out the latest episode of the Retail Transformation Show podcast now, including what you can learn about your organisation's culture.
?? 谷歌 reverse their long-term plan to remove cookies from the Chrome browser. Instead, they're pursuing an "updated approach" that allows customers to opt in or out... which sounds a lot like the solution that's already in place. Whilst it's been 4 years since the initiative was announced, there have been a number of setbacks, including pushing back the implementation date 3 times. As a result, many companies have not yet acted or adjusted their approach. However, it's still worthwhile considering how your first party data strategy should evolve to help give insight and personalise the customer experience.
??? US electronics retailer 百思买 has reimagined how they present themselves to customers with a new purpose. The new purpose is about helping customers discover new tech products and their new tagline of "Imagine That" leans into this purpose. This new purpose aligns many aspects of their strategy, including video commerce, customer support and store revamp plans. Additionally, they've announced a new "spokes-hologram" character, named Gram, which will form a regular element in their marketing and ads.
?? Across the UK, 宜家 is looking to significantly expand its collection point partnership with 特易购公司 . The retailers have opened the 100th collection point based in a Tesco car park. An Ikea van arrives at the store, loaded with customer orders and fulfils orders straight from the van. The retailers announced that there are plans for the next 100 locations, meaning a total of 200 collection points, putting Ikea within 5 miles of 90% of the UK population.
?? John Lewis & Partners is trialling a repair proposition in collaboration with Timpson Group . Customers will be able to bring in their homewares and clothing for alterations and repairs. The trial is currently in 5 stores and will initially last for 16 weeks. There seems to be a significant portion of test and learn as part of the trial.
?? Online spending made a significant jump up during 亚马逊 's Prime Day promotion. Adobe Analytics observed that overall online spending increased by 11% in the US and 9% in the UK, relative to 2023, which suggests larger-than-inflation gains. These include Amazon's numbers as well as other retailers - some of which put on counter promotions. Amazon announced they saw record sales numbers and a record number of items sold. Additionally, ahead of the event, there were record numbers of new subscribers to the Prime subscription.
? Coffee chain Pret A Manger has dramatically altered its subscription pricing and proposition. The new subscription is offered at a much lower cost, but in return offers 50% discounts on coffee, not free coffees like the original model offered. The aim is to provide better value for all customers, rather than only a very small but elite group of customers. The subscription represented a disruptive transformation that aimed to help recovery after the pandemic lockdowns. It's good to see Pret continue to adjust and evolve the offering.
?? China is seeing a financial slow down, with both the middle classes and more premium customers cutting back on spending behaviours. Both of these customer segments have seen massive growth in recent years and have fuelled growth in the Chinese market. 贝恩公司 has found that wealthier customers are looking to cut back on extravagant luxury purchases. Meanwhile, the data suggests that middle class customers are looking to save on big ticket items.
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?? And finally, baker Greggs and retail bank Monzo Bank collaborated to offer a pop-up ATM, serving sausage rolls to customers. The pop-up only lasted for a single day in Newcastle and continues Greggs's track record of clever marketing events to attract press attention. However, there is sense in the collaboration as Greggs and Monzo already work together, with Monzo customers being able to get special Greggs promotions and discounts.
New on the Retail Transformation Show podcast: The fragile digital world: lessons from the CrowdStrike outages - #304
In today’s digital age, retail businesses heavily rely on technology to ensure smooth operations and customer experience. However, what happens when that technology fails? In this episode, we delve into the recent CrowdStrike outage that caused widespread disruptions, highlighting the importance of resilience and preparedness in the face of unexpected tech failures. Join me and uncover the lessons learned, the power of a strong company culture, and the critical steps retailers must take to safeguard against future outages. This is an episode you don’t want to miss if you’re keen on fortifying your business against the vulnerabilities of our interconnected digital world.
Listen to episode 304 of the Retail Transformation Show and discover:
Plus, check out these recent episodes:
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.