SWL's Retail Radar - 08/05/24

Retail Radar, from SWL, provides you with a snapshot of the latest retail news from the UK and around the globe. These narratives highlight key events, emerging trends, and notable advancements, providing a deep dive into the dynamic retail landscape.

Delivery lockers are preferred by over half of UK shoppers for online purchases, according to InPost & Retail Economics

New research from InPost , the UK's premier parcel locker delivery service, in collaboration with Retail Economics , has unveiled a remarkable trend, which is that more than half of British shoppers now rely on delivery lockers for their online purchases. This trend is particularly pronounced among younger demographics, with Gen Zs at 71% and Millennials at 68%.

The surge in locker usage is attributed to its growing appeal, driven primarily by convenience (36%), cost-effectiveness (19%), and speed (17%). Security concerns (12%) also weigh heavily on consumers’ minds, especially as one in five consumers report missing items from their doorsteps, a figure that climbs to one in four for residents of flats and apartments.

As locker visibility increases, so does their adoption rate. In fact, nearly a quarter (24.8%) of locker users consider it their most frequently used delivery option, trailing only behind home delivery (74%) and surpassing alternatives like 'click and collect' (21%). Impressively, more than half of locker users rank them as their top or second choice for delivery, with over 71% placing them in their top three options.

While convenience remains paramount, consumer behaviour is increasingly shaped by sustainability concerns. Parcel lockers offer a greener alternative by reducing carbon emissions through centralised delivery points. This aligns with the preferences of the majority (84.2%) of shoppers, who view lockers as an environmentally friendly solution, thanks to their ability to consolidate shipments and minimise delivery attempts.

Lidl aims to open hundreds of new stores across the UK

Lidl GB has ambitious plans to establish hundreds of new stores across the UK, aiming to connect with a broader customer base. Lidl are looking to expand into key areas like Bristol, Birmingham, and Berwick, alongside strategic locations within London such as Wandsworth, Fulham, Hoxton, and Canning Town.

Lidl has unveiled a list of desired locations for new stores, with a focus on bolstering its footprint in cities like Edinburgh, Leeds, and Liverpool, as well as towns like Woking, Wadebridge, Dumfries, and Didcot.

This expansion coincides with Lidl's 30th anniversary in the UK and follows a year of substantial infrastructure investment, most notably the opening of its largest global warehouse in Luton.

Lidl are actively seeking prime locations with easy access and high foot or vehicle traffic to support their growth strategy.

7-Eleven could return to the UK market as part of its expansion plans in Europe

International convenience giant 7-Eleven may stage a comeback in the UK as its parent company, Seven & i Holdings , sets its sights on further European expansion.

At Seven & I Holdings' recent investor relations day, a presentation unveiled plans to enter 10 new countries by 2030, with Europe identified as a top priority, according to Better Retailing.

Although 7-Eleven had over 50 stores in the UK during the 1980s, these were sold off in 1997 when the company exited the market.

The presentation was believed to have outlined strategies for the convenience retailer to establish a presence in new territories, including the UK. For its European expansion, 7-Eleven presented two models, a master franchise and a joint venture or acquisition.

Under the master franchise agreement, Seven & I Holdings would have minimal direct involvement, focusing instead on consultation and logistical support while earning revenue through royalty payments.

In contrast, the joint venture and acquisition model would involve active participation from partner firms, with global staff being utilised to assist in launching the brand in new countries. This approach could potentially yield higher income for Seven & I through store revenues and dividends.

Auchan successfully concludes the acquisition of DIA’s operations in Portugal

French retailer 欧尚 has completed its acquisition of DIA Group's Portuguese operations, significantly amplifying its store presence in the country. Following approval from Portugal’s Competition Authority (Autoridade da Concorrência - AdC), Auchan announced the successful finalisation of the deal.

Initially disclosed in August 2023 with a valuation of €155 million, the acquisition grants Auchan ownership of 483 Grupo MiniPre?o stores, complementing its existing 100 outlets.

This expansion boosts Auchan's Portuguese network to a total of 583 stores, encompassing 30 gas stations, four warehouses, and a digital store.

The strategic move looks to strengthen Auchan's foothold in the convenience format, complementing its existing MyAuchan banner operations and franchising investments.

Moreover, this acquisition elevates Auchan's employee count in Portugal to 11,000 and the company pledges an additional €100 million investment over the next three years to modernise and enhance the Minipre?o stores.

Sam’s Club has successfully deployed AI-powered technology at more than 120 US stores

Sam's Club , a membership retail club affiliated with 沃尔玛 , has implemented cutting-edge AI and computer vision technology across over 120 sites throughout the US.

Introduced at the Consumer Electronics Show in Las Vegas in January 2024, this system revolutionises the checkout process by automatically verifying members' purchases, eliminating the need for manual checks by staff.

Using advanced computer vision and digital technology, the system captures images of shopping trollies in the exit area after the payment has been made, whether at a register or via the Scan & Go feature, ensuring all items are accounted for.

This innovative technology has vastly improved the shopping journey, with over half of members experiencing smoother exits and a remarkable 23% reduction in average departure time.

Initially deployed in 20% of its locations in the first quarter of 2024, Sam’s Club aims to extend this technology to all its sites by year's end.

In a crackdown on shoplifting, JD Sports is introducing forensic tagging sprays

JD Sports Fashion is stepping up its security measures nationwide in response to a recent surge in shoplifting incidents, by implementing tagging sprays across its stores.

In collaboration with forensic security experts SelectaDNA , the sports retailer is deploying a sophisticated marking system to bolster its security infrastructure.

The tagging sprays function by depositing a unique synthetic DNA and UV marker on both property and perpetrators. This innovative technology enables authorities to trace stolen assets back to their rightful owners and link criminals to crime scenes.

This initiative is particularly aimed at addressing the escalating trend of "steaming" in JD Sports stores, where organised gangs swiftly enter targeted locations, intimidate staff, and make off with large quantities of merchandise.

Ian Williams, Head of Retail Profit and Asset Protection for JD Sports in the UK and Ireland, emphasised the necessity of such measures in the face of a significant increase in retail crime nationwide. He highlighted the dual purpose of the tagging sprays as both a deterrent and a tool for aiding in the apprehension of perpetrators in what he described as a challenging environment. Williams also stressed the effectiveness of forensic marking technology, which raises the stakes for criminals and enhances the likelihood of successful arrests, even in the face of evolving criminal tactics.

Mango sets its sights on launching 20 new stores across the UK

MANGO is set to significantly expand its presence in the UK this year, with plans for over 20 new store openings.

The focus of Mango's expansion efforts will be on strengthening its footprint in London and Scotland, while also making its debut in cities across Northern Ireland, central England, and southern England.

London will see the launch of four new stores, with the remainder strategically distributed across other priority locations identified by Mango.

Primark is expanding its presence in Italy with the opening of a new store in Parma Retail

Global fashion giant Primark has unveiled plans to expand its footprint in Italy with the opening of a new store in Parma. This move underscores Primark's commitment to the Italian market.

Set to open its doors in 2026, the new store will find its home within the 'Parma Retail' shopping centre, currently undergoing a transformative redevelopment into 'Parma Promenade' by Eurofund Group .

This announcement marks Primark's second venture into the Emilia Romagna region, following the successful launch of Primark Bologna at the 'Shopville Gran Reno' shopping centre in 2022.

Primark's presence in Italy is growing, currently boasting 15 stores nationwide, with this number set to increase to 16 with the imminent opening of its Turin store on May 9th.

Occupying an expansive 3,400 square meters, the upcoming Parma store will offer Primark's renowned in-store experience. It will showcase the latest fashion trends in women's, men's, and children's wear, complemented by an array of beauty products, homeware, accessories, and everyday essentials.

B&Q introduces recycling stations for plastic plant pots in its stores in the UK

In a concerted effort to promote sustainability, 百安居 is rolling out plastic plant pot recycling stations at over 100 of its UK stores this year, allowing shoppers to embrace more eco-friendly practices.

Customers will have the opportunity to deposit their unwanted pots at these stations, where the DIY retailer will undertake to recycle them, by transforming them into new planters.

For those in need of new planters, B&Q will offer the Blacksmith Planters made entirely from 100% recycled plastic. These weather-resistant planters will be available for purchase at B&Q stores for ￡4.

Samantha Dyer , Head of Quality and Sustainability at B&Q, emphasised the company's dedication to effecting positive change through concrete actions. She underscored the company's commitment to innovation, which lies at the heart of their mission to facilitate more sustainable choices for customers.

These recycling stations represent a tangible step towards repurposing discarded materials and aligning with B&Q's overarching goal of making sustainability more accessible and convenient for its customers.

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