Higher tech
With stores forced to close for much of last year, many retailers have enhanced their online platforms and mobile applications as well as introducing new concepts, such as virtual shopping.
Although moving retail to online platforms can be viewed as a defensive strategy to maintain overall sales, investing in digital applications presents retailers with an opportunity to drive overall sales by modernising their offering, as well as providing customers with an improved and more convenient service in the future.
So what innovations have we seen?
Virtual shopping
While their stores have been forced to close, upmarket retail brands, such as Sandro and Ralph Lauren, have introduced virtual shopping experiences. Although it is challenging to replicate the interactions in-store, remote shopping experiences represent a concerted effort to offer customers a personalised experience through online channels. Sales assistants are on hand by video link to guide customers through the store and assist them with their requirements.
Luxury brands such as Gucci increasingly recognise the value of virtual shopping experiences. Gucci Live, launched in June, is designed to connect shoppers with assistants in a studio designed to look like a shop. Virtual experiences extend to retailers outside of fashion, too. The American household goods retailer, Wayfair, features VR showrooms where customers can see a room come together as they fill their basket with products.
Mobile applications
The increased need for contact-free shopping and payment options has also fuelled a substantial growth in demand for e-commerce mobile applications. A recent report by AppFlyer suggested that shopping app usage spiked by 156% in Q2 2020, driven by the initial lockdown restrictions.
All retailers are having to respond to these trends. Marks & Spencer announced in November that it would be expanding the use of its `scan, pay and go' app, which allows customers to avoid the need to queue and pay for their shopping. During the pandemic, this has had the benefit of stopping customers congregating at checkouts during busy times.
In store experiences
As they have become more familiar with using e-commerce platforms, customers will increasingly expect a more immersive experience in store too, enhanced by digital touchpoints. For instance, Uniqlo has incorporated AR technology into its stores and has placed LCD screens within store mirrors, creating an augmented fitting room that allows shoppers to see what they look like in the clothes `virtually', without having to try on any of the clothes.
Similarly, IKEA Place (seen above), the company's AR application, allows customers to try products in real time and `the app automatically scales products, based on room dimensions, with 98% accuracy' according to the company.
Opportunities
Restrictions on non-essential retail have completely transformed the sector in 2020, presenting bricks and mortar retailers with considerable challenges. The shift in consumer behaviour towards online platforms, e-commerce and mobile applications is a permanent one, and retailers must respond to these trends to offer an omni-channel user experience and maximise customer experience.
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Jamie Parker