This week's retail news 'you may have missed'.....
At mdj2, we’re passionate about retail and always looking to share our news, views, and insights. With so much information out there, we wanted to share just a small selection of retail news headlines from last week that we found interesting…?
?AO director says negative reviews drive better ‘everyday business decisions’.
AO’s director of consumer and brand Vicky Monk said?negative reviews drive the company to “be better” and make “everyday business decisions” as it reached 500,000 reviews on?Trustpilot.
The?online?electricals?retailer has recently amassed half a million reviews on the platform with a score of 4.8 out of 5, with 94% of reviews marked as good or excellent.
But Monk told Retail Week that, instead of focusing on the positive reviews, the group “obsesses” over the negative to make the company better.
“Trustpilot is really embedded in the business from a consumer lens as it’s about how they feel about us – whether it is good or bad,” she said.
“It’s important to us to be really focused on how we make that journey better for our customers ultimately.”
Some of the negative reviews were common among a?range of customers, which caused the?AO team to take measures to prevent similar issues from occurring again.
Monk said the group had received?feedback on delivery notification delays, for example when customers do not receive texts to let them know they have an early morning delivery.
“We now text customers the day before to let them know if their delivery is expected in the early time slot to make sure they’re up and prepared,” she said.
AO has also made improvements to its delivery tracking to make sure everything is up to date for customers.
“If we were just to ignore what customers are telling us on Trustpilot, just because we want to sit there and congratulate ourselves on the fact that we’ve got over 400,000 four- and five-star reviews, that just wouldn’t feel right to us.”
Monk said working on the negative reviews means AO can take preventative measures, which then gives the team the small wins of “removing friction, removing pain points for customers and removing costs from the business”.
“The less that goes wrong, the more efficient the business is and our customers ultimately love the service they get from AO.”
https://www.retail-week.com/electricals/ao-director-says-negative-reviews-drive-better-everyday-business-decisions/7045661.article? (Subscription required)
Homebase for sale for second time within four years.
Homebase is up for sale for the second time within four years, with potential buyers such as B&M and The Range already sounded out on a deal.
Restructuring company Hilco Capital, which purchased Homebase for ￡1 in 2018, is thought to have been in talks with a number of parties about offloading the DIY chain.
Hilco snapped up Homebase from its former Australian owner Wesfarmers, which forked out ￡340m for the?business?18 months earlier.
The Australian conglomerate company was accused of underestimating the competition from brands such as B&Q and not understanding the differences between British and Australian retail.
Hilco launched a CVA to reduce rents and shut shops at the chain, however, Homebase ended the arrangement 18 months early after renegotiating the majority of its leases and improving profts.
The investment firm initially put Homebase up for sale in 2020 in a bid to capitalise on the pandemic boom for home improvement companies.
In January,?Homebase chief financial officer Andy Coleman stepped down?from the business after six years, and was replaced by Simon Luscombe, who has been the retailer’s director of finance the last seven years.
House of Lords launches review into high streets.
The House of Lords has kicked off an inquiry into the regeneration of British high streets following mounting pressure from retail leaders to review the state of local town centres.
The investigation is looking into how high streets?can be regenerated and “become more resilient and attractive”.
The built environment committee said it will consider the different uses by various communities and businesses and what is essential for them to flourish economically and socially.
Chair Lord Moylan said: “High streets, which many people consider as a hub for their communities, face numerous challenges. Our inquiry will explore how high streets can be regenerated and become more resilient and attractive.”
John Lewis boss Sharon White has been one of the sector’s biggest voices in campaigning for a governmental review.
Last year, she branded?UK high streets as “looting grounds”?for criminal gangs and claimed the rise in shoplifting and antisocial behaviour, encouraged by years of?shop closures,?was destroying local high streets.
M&S boss Stuart Machin and Currys CEO Alex Baldock have both blamed?“unjustifiable” business rates?for the deterioration of town centres.
Machin described the?rates as “daylight robbery”?and said it was “why high streets and city centres are increasingly full of vacancies and dodgy shops”.
?Sports Direct opens new flagship store in Cardiff as it launches new outdoor category.
Sports Direct is opening a new flagship store in Cardiff today as it launches its new outdoor category.
Spanning?60,000 square feet, the store will feature the latest technology, design and interactive shopping experiences including in-store seasonal showcases, interactive digital mannequins, and innovative product finders.
The retailer said the flagship will aim to take the outdoor shopping experience to new heights with features such as a terrain tester for footwear, weighted bags, and scan & learn stations. The store’s customers will also be offered a free 60-day Strava trial that gives access to local hiking routes via the Strava route planner.
Outdoor brands stocked in the store will include The North Face, Columbia, Salomon, and Sports Direct’s own Karrimor brand.
In addition to the new outdoor concept, the Cardiff flagship will feature specialist sporting areas for the retailer’s football, rugby and running categories.
Ger Wright, Frasers Group managing director, sports,?said:?“As we continue to elevate our unique proposition, the opening of our new Cardiff flagship store marks the launch of our eagerly anticipated new outdoor category concept as it continues to be a growing area of interest for our consumers.
领英推荐
“Driven by the strength of our expansion into Europe, the engaging and innovative outdoor concept supports our mission to become the number one sporting goods retailer in EMEA.”
?Next eyes rescue bid for The Body Shop.
Next is considering a rescue bid to acquire parts of The Body Shop after the retailer’s UK operation was placed into administration earlier this month.
The retail group is understood to have contacted administrators at FRP Advisory to express an interest in acquiring assets as part of any sale process it decides to launch, Sky News?reported.
The Body Shop owner Aurelius?filed for administration?of the retailer’s UK operations last week in a move to restructure the business.
Next is said to have been monitoring the ethical beauty retailer for a while, and people close to the group confirmed it had expressed an interest in assembling a deal.
However, one obstacle to a possible deal of The Body Shop is that its brand and intellectual property (IP) assets are not part of the administration process.
It is understood that Aurelius is financing the rest of the business, and as part of that has secured major assets including stock and IP.
FRP is expected to decide whether to launch an auction in the coming weeks, with a sale of the restructured business in its new form back to Aurelius looking a likely outcome.
This week, administrators said it will retain “more than half” of the The Body Shop’s 198 UK stores and?axe around 40% of head office roles?as part of a mass restructuring of the business.
FRP said the reduced store footprint would coincide with “a renewed focus on the brand’s products, online sales channels and wholesale strategies, bringing the brand in line with industry peers and supporting a return to financial stability”.
Hundreds of staff impacted by the store closures and head office redundancies have been advised?to claim for “wrongful dismissal” through Acas, the government’s advisory, conciliation and arbitration service.
?How is AI Reshaping the Retail Industry.
Artificial Intelligence (AI) is revolutionising the retail industry, fundamentally changing how businesses operate and interact with customers. With the integration of AI-powered technologies, retailers can enhance customer experiences, optimise operations and drive revenue growth. Keep reading to explore how AI is reshaping the retail landscape and revolutionising the shopping experience.
Personalised Shopping Experiences
One of the most significant impacts of AI in retail is the ability to deliver personalised shopping experiences to customers. By leveraging AI algorithms, retailers can analyse vast amounts of customer data, including purchase history, browsing behaviour and demographic information, to tailor product recommendations and marketing messages. The same goes for other industries, say, the online casino industry, where casinos?with instant withdrawal?use AI to analyse player history and data. According to recent studies, over 70% of consumers expect personalised experiences when interacting with retailers online. AI-driven personalisation improves customer satisfaction, increases conversion rates, and boosts sales.
Inventory Management and Forecasting
AI-powered algorithms enable retailers to optimise inventory management and forecasting processes, reduce stockouts, minimise excess inventory, and improve overall supply chain efficiency. AI algorithms can accurately predict demand and adjust inventory levels in real time by analysing historical sales data, market trends, and external factors such as weather patterns and economic indicators. Retailers using AI for inventory management have reported up to a 50% reduction in out-of-stock incidents and a 30% increase in inventory turnover.
Enhanced Customer Service and Support
AI technologies, such as chatbots and virtual assistants, are transforming customer service and support in the retail industry. Chatbots equipped with natural language processing (NLP) capabilities can engage with customers in real time, answering inquiries, providing product recommendations and assisting with purchases. Over 60% of consumers have interacted with chatbots when shopping online, highlighting the growing acceptance of AI-driven customer service solutions, according to?a survey by Statista. By automating routine inquiries and tasks, retailers can improve response times, streamline operations and deliver seamless customer experiences across multiple channels.
Predictive Analytics for Pricing and Promotion
AI-driven predictive analytics enable retailers to optimise pricing strategies and promotional campaigns based on consumer behaviour, competitor analysis and market dynamics. By analysing historical sales data and identifying patterns, AI algorithms can recommend optimal price points, determine the effectiveness of promotional offers and anticipate consumer demand fluctuations. Retailers leveraging AI for pricing optimisation have reported up to a 10%?increase in revenue?and a 20% improvement in profit margins.
Streamlined Checkout Processes
AI technologies, such as computer vision and sensor fusion, revolutionise checkout processes in brick-and-mortar stores. Automated checkout systems,?powered by AI algorithms, enable customers to scan and pay for items without the need for traditional checkout counters or cashiers. Retailers implementing AI-driven checkout solutions have observed up to a 30% reduction in wait times and a 40% increase in transaction speed. By streamlining checkout processes and reducing friction points, retailers can enhance operational efficiency and improve the overall shopping experience for customers.
Future Implications and Opportunities
As AI continues to evolve, its impact on the retail industry will only intensify, presenting new opportunities and challenges for retailers. Embracing AI-driven technologies allows retailers to gain valuable insights into consumer behaviour, streamline operations and stay ahead of competitors in an increasingly competitive marketplace. However, the widespread adoption of AI also raises important ethical considerations regarding data privacy, algorithmic bias and the future of work. By prioritising transparency, accountability and responsible AI practices, retailers can harness the full potential of AI while safeguarding consumer trust and privacy.
Harnessing Data for Decision-Making
In addition to enhancing customer experiences, AI empowers retailers to make data-driven decisions across various operational facets. By analysing customer behaviour, market trends and operational metrics, retailers can identify opportunities for process optimisation, product innovation and strategic growth initiatives. AI-driven analytics enable retailers to extract actionable insights from vast datasets, uncovering hidden patterns and trends that inform decision-making at every level of the organisation.
The Evolution of Retail Workforce
As AI technology becomes more prevalent in the retail industry, the nature of retail jobs and workforce roles is also evolving. While AI-driven automation streamlines routine tasks and improves operational efficiency, it also necessitates workforce upskilling and reskilling initiatives to adapt to changing job requirements and technological advancements.
Retailers are increasingly investing in training programs and digital literacy initiatives to equip employees with the skills and knowledge to leverage AI tools effectively. Additionally, AI technologies create new opportunities for workforce augmentation, enabling human workers to focus on higher-value tasks such as customer engagement, creative problem-solving and strategic decision-making. As the retail workforce evolves alongside AI, collaboration between humans and machines will drive innovation and propel the industry forward.
Conclusion
In conclusion, AI is reshaping the retail industry profoundly, revolutionising how retailers engage with customers, manage operations and drive business growth. By embracing AI-driven technologies and leveraging data-driven insights, retailers can create more personalised shopping experiences, optimise inventory management, enhance customer service and drive innovation across the entire retail value chain. As AI continues to evolve, its transformative impact on the retail industry will shape the future of commerce, driving innovation and redefining the way we shop and interact with brands.
?
?
?
?