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Consumer CX E-commerce Fashion High Streets Non-food retail Podcast Retail leadership Retail trends

Retail Veteran Nigel Oddy on Treating Shoppers as VIPs

Natalie speaks to Nigel Oddy, currently CEO of the UK and Europe’s leading golf retailer American Golf, and previously CEO of House of Fraser, New Look, Matalan and The Range.

The video version of this episode is available on YouTube and is part of a special collaboration with the Richmond Retail & E-commerce Directors’ Forum. Nigel will be speaking at the event alongside leaders from across the industry – Tesco, Charlotte Tilbury, TikTok, N Brown and more. 

In this episode, Nigel gives us a sneak preview of what we’ll be discussing at the event. He shares what it was like running New Look during the pandemic, his biggest successes, what motivates him, the importance of spending time on the shop floor and why you must treat your shoppers as VIPs.

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AI Consumer CX Fashion High Streets Podcast Retail leadership Retail trends Returns Technology

The Future of Retail with Chris Browne

Chris Browne, former Global Retail Director at Ted Baker, joins Natalie to discuss:

  • Visual AI and the opportunities for fashion retail  
  • How tech can enhance the shopping experience
  • Addressing the perennial problem of returns
  • What Western retailers can learn from Asia
  • Chris’ vision for the future of the high street

Prefer video? You can also watch Natalie and Chris’ conversation on YouTube.

This episode is part of a special collaboration with the Richmond Retail & E-commerce Directors’ Forum. Chris will be speaking at the event alongside leaders from across the industry – Tesco, Charlotte Tilbury, TikTok, N Brown and more.

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Consumer CX Economy High Streets Podcast Retail leadership Retail trends

TV Dragon Theo Paphitis on Successful Retailing

Natalie speaks to TV dragon, retail magnate and small business champion Theo Paphitis live on stage at Springfair. They discuss:

  • Digital transformation and the impact on retail
  • Why stores are assets in today’s digital era
  • High street struggles – business rates, rents and levelling the playing field
  • Failing fast in business
  • What will retail look like in 2034?

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Fashion High Streets Podcast Retail leadership

N Brown Retail CEO Sarah Welsh on Women in Retail

Sarah Welsh, CEO of Retail at N Brown, joins Natalie on the podcast to discuss:

  • What are the barriers to getting women in retail leadership positions?
  • The importance of representation – how should we nurture future female leaders?
  • Who has inspired Sarah throughout her career?
  • How has the shift to flexible and hybrid working impacted women?
  • How does N Brown drive the wider EDI&B agenda?

This episode is part of a collaboration with the Richmond Retail & E-commerce Directors’ Forum. It’s available on the usual channels (Apple and Spotify) or you can watch a video version on YouTube.

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AI Economy ESG High Streets Inflation Podcast Retail leadership Store of the future

Helen Dickinson on the BRC’s 2024 Retail Manifesto 

Helen Dickinson OBE, CEO of the British Retail Consortium, joins Natalie on the podcast to discuss the BRC’s 2024 manifesto. They discuss: 

  • Business rates: how is the retail industry disproportionately affected and what does reform look like?
  • Retail jobs and impact of AI: how can the industry continue to attract and retain talent?
  • Shoplifting and staff abuse: what more can be done to deter retail theft?
  • ESG: how can retailers accelerate their transition to net zero and what are the BRC’s policy recommendations? 
  • Tax-free shopping: did the government underestimate the impact of scrapping this and might we see a U-turn?
  • The everywhere economy: what is the BRC’s vision for the future of retail?

This episode is available on the usual channels (Apple and Spotify) or you can watch a video version on YouTube.

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Consumer Economy Electricals Fashion Non-food retail Podcast Supermarkets

Why Currys is Nick Bubb’s 2024 Pick

Wonderful to have Nick Bubb on the podcast this week. We discuss:

🎄 Christmas trading results – winners and losers.
💻 Why electricals retailing is poised for a comeback in 2024.
📉 What JD Sports’ and Burberry’s profit warnings tell us about the state of retail.
🛍 What went wrong at John Lewis and whether Peter Ruis can revive the brand.
👗 Frasers’ stake-building strategy – what is the end game for Asos and Boohoo?
🛒 Supermarket switching and the importance of physical stores in food retail.

TLDL: skip to 26 minutes to hear 3 reasons why Currys is Nick’s tip of 2024. Last year, he picked Marks & Spencer so I’d listen up!

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Consumer Discounting Economy Inflation Podcast

A Year of Stagnation

Paul Martin, Global Retail Lead and Head of UK Retail at KPMG is the first Retail Disrupted guest of 2024. In this episode, Paul and Natalie explore:

🔹 The bifurcation of retail winners and losers.
🔹 Why consumers will be battening down the hatches in H1.
🔹 Breaking down the BRC-KPMG December sales data.
🔹 Promotions, margins, and the importance of stock visibility.
🔹 Economic outlook and impact of attacks on container ships in the Red Sea.
🔹 Opportunities for retailers in 2024 and beyond.


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AI ESG Retail trends

3 Retail Trends You Cannot Ignore in 2024

Paid partnership with Manhattan Associates


After years of volatility and disruption, might 2024 bring some much-needed stability?

I’m optimistic that we are safely out of ‘permacrisis’ mode, but that doesn’t mean that 2024 will be uneventful. Technology will continue to disrupt the status quo, improving operational efficiencies and taking the customer experience to new heights. Here are 3 areas to watch:

AI: From Intrigue to Implementation

The buzz and excitement of generative AI bursting into the mainstream dominated the headlines in 2023, with ChatGPT alone reaching 100 million users within just a couple of months. But things will really begin to heat up in 2024: this will be the year of deployment. AI is no longer hype; it’s reality. We are on the cusp of another ‘smartphone moment’ where AI will disrupt every aspect of the value chain – from product development right through to consumption.

From a customer experience perspective, the holy grail of hyper-personalisation is finally within reach. AI-powered shopping assistants are not the future, they are here now. Rich, real-time, relevant experiences are rapidly becoming the norm. I’m personally excited to see how AI develops in our kitchens, helping consumers not only with meal inspiration but also reducing food waste, and also how AI-enabled virtual try-ons might help tackle the perennial problem of returns.

Tech-Enabled Human Touch

As retailers recognised the value in repurposed, tech-infused stores, the collective view on bricks and mortar shifted from ‘liability in a digital era’ to ‘top asset’. The industry’s primary goal of the past decade has been digitising our physical spaces. As we look ahead to the next decade, the focus will shift to making our digital spaces more physical, more immersive, more lifelike. We’re already seeing this with the rise of virtual try-ons, liveshopping, social commerce and virtual shopping consultations, to name a few. Mixed reality is coming. In the future, we really won’t know where the physical world ends and the digital one begins.

As e-commerce transitions from its current static, transactional state to one of multiple dimensions, physical retailers will need to ensure they are leveraging their staff to provide a unique, elevated experience. Retailers must look to technology here to help democratise concierge-level service, allowing staff to serve the customer in both an efficient and highly personalised way – that’s everything from clienteling to allowing customers to pay on the spot or swiftly collecting or returning an online order. Tech-enabled human touch will differentiate the winners from the losers in 2024.

ESG: Firmly Back on the Agenda

In recent years, progress on the ESG agenda may have been quietly stunted as both retailers and consumers prioritised cost efficiencies. However, it’s safe to say that this is one trend that is never going away, and I believe sustainability will be a top priority for retailers in 2024 and beyond.

Transparency will be a key theme this year. Consumers look to retailers to guide them in their decision-making and, with heightened awareness around both greenwashing and bluewashing, there is simply no hiding behind false claims or labels. Retailers will be judged on their authenticity. They should be striving for honesty over perfection. Retailers must have full visibility over their supply chain and be able to effectively communicate their practices and standards to consumers. I believe we’ll see greater demand for product durability and traceability around retailers’ broader circularity efforts. Increasingly, shoppers will want to align with brands whose values reflect their own.

 

Categories
Consumer Economy Inflation M&A

2024: We’re Not Out of the Woods Yet

Falling consumer demand combined with a barrage of rising costs is set to create a challenging six months ahead for the retail sector – according to the latest assessment by KPMG/RetailNext Retail Think Tank (RTT) members.

With early indications of a disappointing Christmas trading period for some retailers, particularly in non-food categories, and food retailers resorting to increasing the level of promotions in order to drive sales this year, there will be very little respite for the retail sector as it enters 2024, according to the latest KPMG/RetailNext Retail Health Index (RHI).

Setting the scene for the challenges that lie ahead, the RHI, which assesses the state of health of the UK retail sector by considering the three key drivers of demand, margin, and cost, concluded that beleaguered consumers will hit the pause button on spending even further in the opening months of 2024. Despite having more money in their pockets than they did in Q1 23 due to reductions in National Insurance Contributions, wage growth outstripping inflation and lower fuel bills which has helped to boost household income slightly year on year, consumer sentiment is likely to remain low as the mood music around an ailing economy impacts their willingness to spend, the RTT concluded. 

The RHI has recorded a deterioration of retail health every quarter since Spring 2022 and this is predicted to continue in the first half of 2024, hitting 66 points by the close of Q1 24, a figure last seen in the height of the pandemic in 2020 when the UK was in lockdown. While the opening months of 2024 are likely to see a continued downturn in consumer demand, especially in non-food categories, it is just the calm before the storm as Q2 24 will see the sector hit by rising costs, including a hike in the minimum wage and a 6.7% business rate increase for most retailers. While demand is likely to pick up in Spring 2024 (Q2 24) as consumer confidence builds, rising costs will hit retailers, particularly those whose finances are not stabilised RTT members concluded, signaling potentially higher insolvency rates for small retailers and a boost in M&A activity – particularly in fashion and pure online retail, where there will be pressure on consolidation.

Highlights from the KPMG/RetailNext Retail Health Index included :

  • With household financial assets outweighing financial liabilities by £4 billion, the ability to spend will be polarised between households.
  • Savers enjoying higher interest rates are unlikely to be tempted to spend savings in early 2024.
  • Health and beauty are expected to be the only non-food category to see growth in the opening months of 2024.
  • Luxury retail and big-ticket categories will continue to experience a downturn in sales.
  • Sales growth for the big supermarkets in 2024 is likely to be more subdued, with the boost from grocery price inflation dropping away and pressure on volumes continuing.
  • Growth in 2024 will come from the discount and value retail channels.
  • London retailers face a ‘double whammy’ of rising business rates given the bulk of London’s retailers are multiples, and the fact that business rates in London are significantly higher than in the rest of the UK.
  • Further promotional activity is expected as retailers look to clear down excess stock and react to falling consumer demand.

Commenting on the RHI, Paul Martin, UK Head of Retail at KPMG, said:

“Despite Black Friday sales going deeper and lasting longer than last year, indicators so far are that Christmas trading this year has been one of the worst since the pandemic hit, and although there is still all to play for in the final weeks of December, it is looking as if it’s too late turn fortunes around.   Whilst food retailing sales growth has been weaker than seen over Christmas last year, sales of non-essential goods have been deteriorating rapidly and will continue to do so as consumers keep an even tighter grip on the household purse strings.

“It has taken a long time for the economic challenges to feed through to consumer resilience, but it looks as if it’s happening now, and is set to stay with us, at least until spring.  The UK retail sector will likely continue to see significant downward pressures on demand, and margin, for the early part of 2024 but this could turn a corner by April, just as hefty increases in minimum wage and business rates hit the bottom line.  Retailers will be holding their breath for some good news in the Chancellor’s Budget in March.

“Retailers have been remarkably resilient over the last few years and are now well versed in being agile to cope with economic shocks and changing consumer demands. Pressures on consumers from high inflation may be easing, but the economy faces headwinds from the lagged impact of monetary policy tightening and rigid fiscal policy settings.  For the next few months, we expect the retail sector to continue to tread water as it moves from dealing with one shock to another.”

What the RTT members said:

Jonathan De Mello, Founder & CEO, JDM Retail Ltd:

Moving into 2024, with residential rents continuing to increase, more and more fixed-rate mortgages running out and inflation staying relatively high, the first two quarters of 2024 at least will likely see lower consumer demand and a concurrent impact on retail sales and margins.”

James Sawley, Head of Retail & Leisure, HSBC UK:

“We’ll see less distress in 2024, as many small businesses gave into the conditions of 2023, characterised by high inventory levels (low cash), peak inflation, peak energy cost and the rising cost of capital. We now have normalised inventory, low freight costs, falling inflation, and a clearer idea of where interest rates are settling, as well as an extension in business rates relief.  We are likely to see consolidation in some segments of the sector where high costs, intense competition, and softening of demand will make it a compelling or necessary move”.

Nick Bubb, Retailing ConsultantBubb Retail Consultancy Ltd: 

“Q4 23 saw a lacklustre performance with volume pressure in non-food categories and the real sense that consumers are tightening their belts.  Whilst a lot depends on what we see happen over the next few weeks, there has already been a lot of discounting and this is likely to continue after Christmas as well. As for the outlook for the retail sector in general, much will depend on when the Bank of England feels able to start to lower interest rates, to relieve the pressure on “big ticket” spending, although this is unlikely to be before the second half of 2024.”

Maureen Hinton, Retail Consultant:

“With costs rising and consumers remaining selective in their spending, retailers will need to deliver compelling offers, backed by strong finances, to succeed in 2024.”

Mike Watkins, Head of Retailer and Business InsightNIQ UK:

“After two years of falling volumes in food retailing, there is likely to be a return to volume growth in 2024. For many supermarkets, the quest to gain shopper loyalty – frequency of visits and total shopper spend – will intensify. The extension of loyalty schemes has helped pull back some spend lost to discounters. NIQ research shows that 54% of shoppers said that price discounts via loyalty cards were the promotional mechanic most likely to encourage them to spend with everyday low prices a close second (34%). This reinforces the need for the supermarkets to maintain transparent price strategies, price locks, and price matching.”

Miya Knights, Retail Technology Magazine, Publisher and Consultant: 

“With stagnant demand, 2024 will be a year of two halves in terms of retail health.  Competition is fierce and retailers will need a differentiator.   Technology investments will continue to help separate retail winners from losers throughout the year, just as it has increasingly done for over 25 years now, and at an accelerated pace ever since the pandemic.  However, where it may have previously been enough to adopt and deploy technologies that allowed operators to catch up to their competitors, those who genuinely innovate using IT and digital will succeed next year.”

Natalie Berg, Retail Analyst and Founder of NBK Retail:

“As we look ahead to 2024, it’s worth calling out that whatever is thrown at retailers, they will be far better equipped to handle it than they might have been just a few short years ago. I wouldn’t suggest that 2024 will be uneventful, but I think retailers can certainly welcome more stability. The worst of the cost-of-living crisis is behind us, and although consumers have been surprisingly resilient thus far, we’re certainly not out of the woods just yet. Consumers will continue to exercise caution and restraint, leaving retailers to contend with somewhat muted demand, heightened expectations and cost pressures of their own – from business rates to hefty increases in minimum wage requirements from April 2024.”

Charles Burton, Director, Oxford Economics:  

“Despite further falls in inflation and, from the middle of the year, the Bank of England potentially starting to reduce interest rates, we expect the UK economy will struggle to gain momentum in 2024. Household spending generally will only grow slowly, and likewise retail sales. There will be some variation across the UK, with the south (London, South East and South West) performing better than average, with the Midlands, North East, and Scotland faring less well. This is very much a reflection of job losses in the industrial sectors feeding into overall regional performance.”

Categories
High Streets Podcast Supermarkets Technology

The Shoplifting Epidemic

Chris Noice, Communications Director at the Association of Convenience Stores, joins Natalie to discuss Britain’s shoplifting epidemic. They explore:

  • The scale of the problem and factors driving the growing wave of shoplifting.
  • What motivates shoplifters and is it a victimless crime?
  • Cops in shops – will we see more retailers and shopping centres collaborate with the police for in-store police stations?
  • From equipping staff with body cams to hiring undercover security guards – what more can retailers do to deter theft?
  • Retail staff abuse and the issue of under-reporting.
  • The rise of middle class shoplifting and how automation is exacerbating the problem.
  • Will retailers see more TikTok-inspired mass shoplifting rampages?
  • How can the government take action to curb the rise in shoplifting?

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