TRENDS

ACROSS THE PLANET

V4.13

RETAIL

TAP

TAPTRENDS

ACROSS THE PLANET

RETAIL

Welcome to Retail TAP. In this packed edition we look at some of the latest and greatest trends from the sector and give you a glimpse of the innovations that will drive the mainstream in years to come.

Nielsen uncovers why CPG brands can expect to see a 25% increase in digital sales and we take a look at why Walmart and American Express are forming an ever closer alliance. We lift the lid on how firms like ‘Moovit’ and ‘Avoid the Shopping Crowds’ have both been trialling consumer friendly solutions in the Netherlands in an effort to overcome the nightmare of wasting time waiting in busy stores and why ‘Rosie’ and ‘TaskRabbit’ might have you hopping for joy when it comes to predictive purchasing. For you fashionistias - if you have ever wanted to refresh your wardrobe but don’t want to buy new items, then Joshua Harris’ 3D clothes printing technology could be the very thing you’re after! We look at the £1.8bn of impact that 4G is bringing to the UK economy and how this is helping transform eBay’s business. And finally, Asda launches its £100 million Price Lock campaign to help UK Mums protect their budget. Enjoy!

RETAILTAP //4.13

RETAIL HEADLINES

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Contents

CoNTENTS

RETAIL INSIGHT CREATIVE CoRNER

oNLINE GRoCERy SToRE USES CUSToMER PURCHASE HISToRIES To PREDICT WHEN ITEMS WILL RUN oUT

GETTING IN ToUCH

APP USES SoCIAL MEDIA To DETERMINE HoW CRoWDED SHoPS ARE IN REAL-TIME IN THE NEWS

CoULD THIS BE THE FUTURE oF CLoTHES SHoPPING?

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RETAILTAP //4.13 RETAIL HEADLINES

RetAILHeADLInes

CLotHInG & FootWeARDEBENHAMS names new Divisional Trading Director of E-commerce

PRIMARK distribution unit acquired by LondonMetric Property ““

””JCPENNEY revives former pricing strategy“ ”

UK-based department store chain Debenhams has appointed Ross Clemmow as Divisional Trading Director of E-commerce, effective June 2013. Clemmow replaces Simon Forster, who left Debenhams at the end of last year to join Selfridges.

Ireland-based value clothing retailer Primark’s distribution unit in Thrapston, UK, has been acquired by LondonMetric Property from the Moorfield Real Estate Fund II for GBP60.5 million (USD97.58 million).

US department store operator JCPenney has revived its previously abandoned pricing strategy, according to Reuters. This involved increasing prices of its private labels then discounting them as a means of improving sales and margins.

GRoCeRYTESCO in talks with potential buyers of Fresh & Easy“

”UK-based retailer Tesco is understood to have been in talks with Aldi, Trader Joe’s and property investors over the likely sale of its US Fresh & Easy business, Retail Week reports.

WALMART extends Bluebird financial facilities“ ”Walmart in the US has unveiled expanded

security and funding capabilities for Bluebird, its checking and debit alternative, provided in conjunction with American Express.

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RETAILTAP //4.13 RETAIL HEADLINES

RetAILHeADLInes

eLeCtRICAL & oFFICesMAGAZINE LUIZA sees Q4 boosted by e-commerce“ ”Brazil-based electronics retailer Magazine

Luiza has reported consolidated gross revenue rose 15.2% in the fourth quarter of 2012 to reach BRL2.61 billion (USD1.34 billion).

LeIsURe & enteRtAInMentLAGARDÈRE SERVICES faces public tender process in French stations

TOYS ‘R’ US teams Babies brand with online parenting specialist ““

”””BOOKS-A-MILLION announces fourth-quarter and FY results“

French travel retailer Lagardère Services’ travel convenience stores have been given notice of competitive public tender from the French railway operator SNCF.

Toys ‘R’ Us, the US-based toys and baby specialist, has announced it is to form a strategic partnership between its Babies ’R’ Us brand and the online parenting specialist WhatToExpect.com

Books-A-Million, the US-based book retailer, has announced its financial results for the 14-week and 53-week periods ended 2 February 2013. The trading period reflects an extra week in 2013, creating a 53-week trading period.

For more inFormation on any oF the above headlines, reach out to tap@momentumww.com

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RETAILTAP //4.13

RetAILInsIGHt

RETAIL INSIGHT

CPG Brands Bridge the Gap Between Ecommerce Shoppers and Buyers. Brands must make it easier for CPG online shoppers to buy through digital channels.

• Grocery shoppers are already using digital in myriad ways, from product research to purchasing groceries online for at-home delivery or in-store pickup. Meanwhile, brands have been building robust websites, as well as employing video and social media to market their products.

• For shoppers, however, the divide between using digital to research products and actually buying them remains wide, according to a new eMarketer report, “CPG’s Digital Conundrum: Turning Digital Shoppers into Digital Buyers.”

• Nonetheless, the CPG category is poised for significant growth in online sales. According to october 2012 data from Nielsen, online CPG sales are expected to grow at a 25% compound annual rate from 2012 to 2015.

• While CPG brands have invested millions of dollars in creating robust brand sites and digital marketing campaigns – all in the interest of engaging loyal buyers – pushing the buy button is not happening as frequently in the CPG category as others. one reason is that this button isn’t available in many cases, especially on brand sites, which are not prepared to deal with the issues of fulfillment and shipping.

• Even when the option exists, the cost of shipping, premium prices and the wait for delivery can all disincentivise online shoppers. And these are not generation-specific issues. Better prices, free shipping and same-day service matter equally to millennials, Generation X and baby boomers, according to a February 2012 survey by Integrated Marketing Services.

• To resolve these issues, brands are turning to retailers such as Ahold’s Peapod, which offers a click-and-collect service, as well as third-party fulfillment services such as Quidsi’s Soap.com and Diapers.com.

• As CPG brands work with etailers to convert more shoppers into buyers, the relationship between these companies is becoming critically important.

• Sharing shopper insights, offering cross-merchandising opportunities and giving consumers auto-replenishment and shopping list applications on their sites are ways etailers can help brands increase sales, according to a Q2 2012 survey of manufacturers conducted by etailing solutions.

• Among etailers, etailing solutions found that 100% believed new product launches and exclusive product offerings would entice shoppers. Nearly three-quarters (71%) suggested exclusive web-only offerings. And more than two-thirds (67%) of etailers noted that stronger shopper insights from manufacturers and better display and description of products would be welcome.

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RETAILTAP //4.13

CReAtIVe CoRneR:RAF sIMons/FReD PeRRY sPRInG WInDoWs 2013bY stUDIoXAG, LonDon

RAF SIMoNS/FRED PERRy SPRING WINDoWS 2013 By STUDIoXAG, LoNDoN

‘Every week our team of retail designers meet in ‘Creative Corner’ and discuss what’s going on in the world of retail. After four weeks of sourcing some amazing creative work, ranging from trends to technology, we have selected this month’s highlight.

We have chosen this design for its elegant simplicity yet striking presence. The use of colour creates a playful window installation, promoting the detachable collar feature in their new collection. Hundreds paper of collars were individually folded and suspended from the ceiling in swarming formations.’

Kayleigh Hannah Retail Designer, UK

Mike Bowyer Retail Designer, UK

CReAtIVe CoRneR:RAF sIMons/FReD PeRRY sPRInG WInDoWs 2013bY stUDIoXAG, LonDon

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RETAILTAP //4.13 RAF SIMoNS/FRED PERRy SPRING WINDoWS 2013 By STUDIoXAG, LoNDoN

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RETAILTAP //4.13 APP USES SoCIAL MEDIA To DETERMINE HoW CRoWDED SHoPS ARE IN REAL-TIME

‘Avoid The Shopping Crowds’ advises consumers whether they should avoid certain outlets based on the number of shoppers in-store.

In a world where an increasing number of people are posting real-time updates about what they’re doing through their smartphones, it’s no wonder we’ve seen apps harnessing this data to provide a bigger picture. We recently saw Moovit enable commuters to determine accurate arrival times and levels of commuter crowding, and now ‘Avoid The Shopping Crowds’ is advising consumers whether they should avoid certain retail stores based on the number of shoppers.

Useful for busy periods, such as weekends or festive seasons, the app currently offers data for four stores in the Netherlands – Centrum, 9 Straatjes, Zuid and ArenA. By analysing social media check-ins, photo uploads, location-based tweets and live webcam activity, the developers are able to display accurate information regarding how crowded each store is, in real-time. Users can easily see for themselves how busy the locations are with a simple bar graph detailing the average crowdedness on each day of the week, although the app also gives advice such

as ‘Forget it’ if queues are likely. They, the creative agency behind the app, hopes to develop similar utilities for museums, the beach and ski resorts in the near future.

We ♥ tHIs!

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“’Check-ins, social sharing, GPS, digital technology: people are submitting more personal information than ever before. Tapping into ‘big data’ presents an unrivalled range of opportunities for brands, businesses and app developers to develop and deliver solutions that offer genuine value to consumers. However, brands also need to operate with a degree of caution. Whilst ‘Avoid The Shopping Crowds’ provides a useful and value-added service to shoppers, we need to remember that it is only taking into account publicly-submitted data. If only two people check-in to a shop, the data could suggest the store is very quiet, whilst in fact, there could be 300 non-digital shoppers browsing in the aisles!”

APP Uses soCIAL MeDIA to DeteRMIneHoW CRoWDeD sHoPs ARe In ReAL-tIMe

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RETAILTAP //4.13

Rosie is a platform for food shopping that learns users’ purchase routines to deliver items when they need them.

Shoppers signing up for the New york-based service first enter details about their household – how many people live there, their age and sex and information about their regular buying habits. They can then

browse items in the store and add them to their basket as they would with any other e-retail outlet. Purchased items are saved at a grocery store close to the user’s location and they can pick them up in their own time. Through the Rosie app, consumers are alerted when they might be running out of a particular item, based on smart algorithms and their purchase histories.

The service automatically finds the cheapest price for the item and reserves it in a nearby store. Alternatively – through Rosie’s partnership with personal errand service TaskRabbit – users can get someone to pick up their items for them.

oNLINE GRoCERy SToRE USES CUSToMER PURCHASE HISToRIES To PREDICT WHEN ITEMS WILL RUN oUT

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“The apps, digital tech and services that are really standing out in 2013 are the ones that are making consumers’ lives easier through smart, intelligent services. The increasing emergence of ‘smart devices’ such as smart fridges, coupled with consumer-submitted data, allows retailers, brands and businesses to automate much of the shopping process. Making a shopper’s life easier, and offering digital services that provide tangible value to daily tasks is a burgeoning trend: one that provides a wealth of opportunities to brands and businesses looking to marry shopper behaviour and insight with smart tech.”

onLIne GRoCeRY stoRe Uses CUstoMeR PURCHAseHIstoRIes to PReDICt WHen IteMs WILL RUn oUt

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RETAILTAP //4.13 CoULD THIS BE THE FUTURE oF CLoTHES SHoPPING?

Current clothing production is wasteful and takes up too much space.

This could be a problem when it’s predicted 75% of the Earth’s population will be living in cities around 40 years from now. Space is already a valuable commodity, but by the time this migration has taken place, space could be the most valuable.

That’s why Joshua Harris’ clothes printer has gained so much traction recently. His idea centres around the concept of feeding your old clothes into his machine and can then using that material to instantly print the next outfit you’ve had your eye on.

With 3D printing becoming so much more advanced, you may also be able to purchase cartridges of material from your favourite brand, such as Nike, insert it into the machine and print out this season’s hottest item.

Another thing that makes this technology so exciting is the environmental impact. your favourite outfit might only get a year or two of use before it’s thrown away. Plus it costs a lot of money to manufacture and transport in the first place.

Being able to print your clothes in-house (literally) would mean there are no wasteful transportation or factory costs associated with the clothes you buy. Not only is this saving you money, it’s saving the environment too, a combination your rarely hear these days.

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Technology has always been about making people’s lives easier; providing smarter solutions and initiatives that offer genuine value to the consumer. Technological development, coupled with strong environmental, or CSR (corporate social responsibility) initiatives are currently gaining much traction. Technology is not just about making our lives easier; it’s about ways in which we can look to a more sustainable future – and initiatives like this not only provide an environmental solution, but also offer new ways of getting personalised goods into consumers’ hands.

CoULD tHIs be tHe FUtUReoF CLotHes sHoPPInG?

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RETAILTAP //4.13 IN THE NEWS

Super-fast 4G network could boost the UK retail sector by £1.8 billion, new research released today reveals.

Representing a 113 percent year-on-year rise in mobile shopping, the introduction of 4G will compliment changing consumer behaviour, according to online marketplace eBay, which commissioned analyst firm Conlumino to conduct the survey.

Using your mobile to shop is increasingly popular, with 55 per cent of over 2,000 respondents saying they use their smartphone more now to shop online than the same time last year, though only one in 10 use their phone to complete the customer journey and make a purchase.

“Consumers today want convenience and speed,” said olivier Ropars, Senior Director of m-Commerce at eBay Europe.

“The arrival of universal 4G will bring with it a more immersive, instant and intimate shopping experience than ever before – putting the most exciting features of mobile retail as we know it into high definition”.

It won’t just turbo-charge the way we shop. It will truly give us the ability to shop anytime, anywhere.

That means an extra £1.8 billion of consumer spending up for grabs.

Retailers must act now and think about the virtual shop window, to turn this huge opportunity into an exciting reality.

eBay’s global forecast for mobile sales this year is $20 billion (£13 billion) while currently, an item is bought every second in the UK via a mobile device and experts are warning of the importance of being 4G-ready.

Retailers today must take every chance to engage consumers, inspiring them and giving them every possible opportunity to buy and interact with their brands”, said Neil Saunders, Managing Director of Conlumino.

An omnichannel approach is key to making this happen and with universal 4G on the horizon, retailers can’t afford to stand still.

In tHe neWs:4G CoULD boost UK RetAIL bY £1.8bn

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RETAILTAP //4.13 IN THE NEWS

Supermarket Asda has launched an advertising campaign highlighting its low price commitment ahead of the Chancellor’s Budget later today.

Committing to reduce the price of everyday essentials, Asda’s Price Lock campaign follows a £100 million investment in keeping prices down, on items such as bread, butter, eggs and milk, as it works to “support

cash strapped customers through times of austerity”, according to a statement.

Mimicking the Chancellor’s traditional appearance outside 11 Downing Street ahead of the Budget announcement, the grocer has dubbed Mums ‘Chancellors of the Checkout’ following the findings ofits latest Mumdex report which revealed that rising

costs are now three times as pressing for families as youth unemployment.

“Mums are telling us that they’re worried about the spiralling cost of living and could use our help,” Stephen Smith, Asda’s Chief Marketing officer, said.

“They want to see consistency across the essentials their families need most, giving them the reassurance, day in day out, that by the time they reach the checkout, there are no nasty surprises.”

Running over two days to coincide with the upcoming announcement, the advert will then make way for a wider campaign emphasising the importance of discounted goods, which will see the grocer reduce prices “for a minimum of 12 weeks”.

Smith concluded: “Although the ad is tongue-in-cheek, playing on the iconic red Budget box image, at the heart of the advert and Price Lock campaign is a very serious message.

As the UK wakes up to a sense of uncertainty ahead of today’s Budget, I hope that with our latest campaign, we can give Mums a little certainty at a time when their budgets are being stretched to the limit.”

In tHe neWs:AsDA LAUnCHes bUDGet-tHeMeD PRICe LoCK AD

RETAILTAP //4.13 GETTING IN ToUCH

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Editors: Callum Saunders, Anna Dalziel, Kayleigh Hannah, Mike Bowyer.

Sources: Springwise, PSFK, Planet Retail, Retail Design, Retail Gazette.