Jeremy Schwartz was the turnaround CEO of Pandora, the world’s largest jewellery company with 2,500 stores and e-commerce sites in 90 countries. Prior to that, Jeremy was Chairman and CEO of The Body Shop from 2013 to 2017. He also previously spent time at Sainsbury’s and, as Brand Director, he was the architect of the grocer’s turnaround in 2005 which saw a decade of growth after years in decline. He is the former Managing Director of L’Oréal UK and, as Innovation Director for Coca-Cola Europe, he invented Coke Zero. Jeremy is currently the Chairman of Kantar’s Sustainability Transformation Practice.
While watching my daughter at her gymnastics class last week, I overheard another parent talking about a kids’ birthday party they went to recently. It wasn’t the usual soft play centre but a more pleasantly scented… Lush store.
Now I must admit that, as both a retail analyst and parent, I had no idea that Lush hosted parties on its shopfloor. But it makes perfect sense – Lush isn’t just a shop but an experience. A wonderfully fragrant, sensory stimulating, bath bomb-making experience.
And that’s the kind of mentality that bricks & mortar retailers need today. You have to give shoppers something that a screen cannot. You need to embrace perpetual innovation. You need to continue to surprise and delight. And above all, as Theo Paphitis told me in an interview earlier this month, you need to have a reason to exist.
The Body Shop once had a reason to exist. Under founder Dame Anita Roddick, it pioneered ethical beauty in the 1970’s. Its focus on natural, fairtrade and cruelty-free products set the retailer apart from rivals, not to mention its strong stance on social and environmental justice issues. The Body Shop was genuinely ahead of its time.
Fast forward to 2024 and its overall proposition is still wildly relevant. The health and beauty category continues to thrive even in this tough climate and sustainable shopping has gone mainstream. And therein lies the problem. The Body Shop is no longer the only place on the high street that shoppers can turn to for ethical products. It’s not the cheapest. It’s not most convenient. And you could make the argument that it’s not the most inspiring. So what exactly is its USP?
The Body Shop may have once been a trailblazer, but they’ve settled into the status quo. Being an early mover doesn’t mean you stop moving. Standing still is the most dangerous thing you can do in retail. You have to continuously evolve in order to stay relevant to customers. If you don’t, someone else certainly will.
So how do you stay relevant in the ever-changing world of retail? Your customer should always be your North Star. Start with the customer and then work backwards. How can you elevate the customer experience? What needs aren’t currently being met? How can you ‘go beyond’?
In the beauty space, you only need to look to a brand like Rituals to see what’s possible. Their philosophy of slowing down and transforming routines into special moments is evident the minute you walk through the door. Customers receive a cup of tea or a hand massage. The store environment is calming and every product has a story. It’s unique, relevant and the perfect antidote to our fast-paced lives.
A key factor of Ritual’s success is its unique brand proposition. It views itself as a wellness and lifestyle brand, rather than a beauty brand, and therefore doesn’t see itself having any direct competitors. It also embraces technology to deliver a truly personalised experience and is continuously evolving its offer. This is how you win in retail today.
Look at some of the more notorious retail disruptors like Amazon. I’ve often attributed Amazon’s success to a relentless dissatisfaction with the status quo. Other high street retailers are now adopting a similar approach. Marks & Spencer CEO Stuart Machin refers to the business as being “positively dissatisfied” and now requires its head office staff to spend to spend a week on the shop floor. Morrisons is even inviting shoppers to join management meetings. Listening to your customers has never been more important. In today’s retail climate, no one can afford inaction.
