Page 38 - March 2021

RLI RETAIL INSIGHT

Retail Transformation -

A New Dawn

Lockdown 3.0 will undoubtedly leave sections of the retail industry
facing some difficult decisions. And whether it results in intuitive
transformational programs that reshape physical stores to support
omni-channel shopper journeys, or scaling back brick and mortar
operations completely, having an experienced end-to-end service
solution partner can ensure the transition is smooth, expertly
managed and timely. Craig Bennett, CEO of Sigma, explains.

or retailers, the thought of seeing 2020 in their rear view For retailers, a road to future success will be reimagining in-store strategies,
mirrors, and the fresh hope of a new year to trade their way to integrate new omni-channel models such as buy online, pick up in store
to recovery is certainly a positive one. The reality however, is (BOPIS) - a channel that grew 28 per cent year-over-year in February 2020
F perhaps somewhat different, with most non-essential stores compared with 18 per cent in January - or grocery delivery (up by 57 per
forced to shut their doors and ‘essential’ retailers facing a new challenging cent during the same period).
landscape in which to operate. Similarly, creating immersive retail experiences that hone in on so-
For many, it has justified a swifter shift to online-first strategies and digital called ‘retailtainment’ to elevate shopping to new heights, will increasingly
platforms, particularly for retailers who have for some time relied on a supersede the conventional retail model of rows and rows of clothes
large physical store presence. Sadly, as the economics of running high on hangers, basic changing rooms, or products displayed side by side on
street outlets has grown increasingly demanding, retailers have been left basic shelving.
to re-evaluate their portfolios in terms of location, rent and profitability, We have already seen some exciting examples of brands investing in
and even consider closure. large-format shopping centres and concept stores, offering a rich range
The result is a need for more dynamic structures that are able to of experiences by blending retail, music, dining and entertainment in a
seamlessly adapt to handle the ongoing uncertainty - including allowing single space. At the same time, they continue to invest in ‘digital-in-store’,
buildings to close or reopen as necessary at short notice - to drive to intrinsically balance online, as well as offline activities, while delivering
maximum value out of the spaces. innovative and creative solutions that maximise available spaces.
In order to deliver more viable long-term commercial options, some Virgin Holidays, for instance, opened a new chain of retail concept stores in
retailers are seeking to create multi-occupancy and multi-purpose 2019. Faced with increasing competition from digital disruptors like Airbnb,
facilities, or launch smaller workspaces to efficiently distribute employees and a growing preference for online holiday bookings, the brand sought
across locations, cities or regions. to deliver an intuitive store that utilised sensory elements to create an
Such a progressive design led approach has already been demonstrated immersive shopping environment, allowing shoppers to get in the holiday
by John Lewis’ plan to convert as much as 302,000sq ft of its 678,700sq ft mood and try out various elements of the Virgin Holidays experience.
-nearly 50 per cent - of the company’s flagship London store on Oxford While retailers ranging from Boots in Covent Garden, to Primark in
Street into flexible retail space. While fashion retailer Next’s partnership Birmingham, have invested in large-format, concept-led, city-centre stores
with supermarket Morrisons to trial new collect and return ‘Pods’ in the to drive their business growth.
latter’s car parks, is a further example of the inspirational fusion of diverse
commercial real estate. DyNamic structures
In an increasingly challenging marketplace, and against a backdrop of
New store coNcepts growing investment in e-commerce to meet growing demand, it remains
For brands that are focused on maintaining a physical presence, new to be seen whether the traditional large-format city centre store will
challenges have emerged, especially as the ongoing health pandemic continue to survive in a post-pandemic world.
further heightens the importance of putting the customer first, particularly Whatever the future holds, retail brands can seamlessly and cost-
where customer safety is concerned. effectively deploy complex transformational programmes across entire
Although customers did return to high street stores - with footfall up estates, while reducing the spread of Covid-19 at the same time.
85.2 per cent in December - they did so with a new appreciation for
hygiene and guardedness when it comes to human interactions. Retailers,
therefore, have had to invest considerable time, effort and resources
to make stores safe, investing significant amounts on coronavirus safety
procedures, including implementing social distancing measures and
increased cleaning practices.
Of course, this is just the first step towards meeting evolving consumer
behaviours. Today’s customers are not only seeking safer shopping
environments, but also an experience that not only replicates the
normality they were accustomed to before lockdown, but offers
enhanced consumer interaction and engagement that goes beyond just
purchasing a product.
Intuitive transformational programmes that support omni-channel
shopper journeys, deliver genuine human connections, exceptional
customer experiences and drive purchasing opportunities - likely within
a smaller physical footprint - have, therefore, become even more critical
to success in the ‘new retail world’.

38 RETAIL & LEISURE INTERNATIONAL MARCH 2021