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High-Street or High-Tech?

The future of shopping no longer revolves around retail. It is all about the in-store experience.

Words: Trifonia Asmar Image: Hero.com

Retailers begin to transform today’s shopping into tomorrow’s experience. As today’s customers’ demands rise, so must the customers experience in stores.

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While e-commerce is an emerging market, brands are striving to entice consumers back to the high street in order to keep their stores at the top of the market. New trends suggest that the combination of both online and in-store experiences will be the key in upholding the future of the UK high street. From the in-store activities to the digital mirror; what are the main trends which will get retailers shinning at the top?

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The UK high street rut has been all over the headline in 2018, forecasting declining sales for high-street retailers. The Office of National Statistics’ report show that shopping sales have only risen 1.5% compared to 2017. Although there is a slight increase in annual sales, the quantity of items being brought from December 2017 to February 2018 shows a decline of 0.4%.

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Furthermore, the Office of National Statistics’ retail sales index analyst Andreas Constantinou explains how online shopping could also be a factor to consider when looking at the slow income on the high street, “as of February 2018, 17.2% of all retail sales were internet sales.”

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Nevertheless, although it may be an obvious correlation there is no hard evidence. It can only be presumed that e-commerce has had a direct knock on effect on the act of physical shopping. “While it is possible to explore the differences in growth between internet and non-internet sales from available data, it is difficult to establish a causal link between the two with certainty from this information alone,” Andreas explains.

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Despite this, businesses continue to suffer as average prices are rising. Therefore, it comes as no surprise that retailers begin to do all they can to help rebuild their market. For many combining both physical and online shopping is the answer. For others, service is the key. H&M visual merchandiser Amy Monteith says, “I think a good retail experience goes back to the basics. Good customer service and fashion knowledge from all staff members is key.”

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Service with a smile, being greeted at the door, personal stylists? It is just not enough anymore. With America’s department store chain Nordstrom opening its first service focused store with no merchandise, named Nordstrom Local, it seems like the world of retail is in the midst of a new era. Nordstrom Local offers the customer a life of luxury whilst indulging in a spot of shopping. Although the store will include some garments for shoppers to try on, there will be no inventory or purchasing within the store. The purpose of the Nordstrom Local is to keep shoppers from feeling overwhelmed by too much choice allowing customers to enjoy shopping again.

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A spokesperson at Nordstrom says, “as the retail landscape continues to transform at an unprecedented pace, the one thing we know that remains constant is that customers continue to value great service and convenience. Finding new ways to engage with customers on their terms is more important to us now than ever.” For those who wish to purchase items from the retailer there will be a personal stylist on site who can navigate and bring in the pre-ordered garments for the customers, along with online pickups and tailoring of purchased items, making them the perfect fit. The department store will also host a range of leisure services perfect for any ‘girls’ day out’ whilst the customers waits to receive their new items. From nail services, cafes, bars and onsite alterations and tailoring, Nordstrom Local has become a multi services for its consumers.

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Spanish bzand, and one of the UK’s leading retailer, Zara opened its first online and offline flagship store in Westfield Stratford in May. The innovative store reached a 4,500-square meter radius where it is split into four main sections offering the traditional women’s, men’s and kids’ lines along with the addition of the dedicated online and offline collection area. The new sector of the store will feature an automated pick up collection, enabling customers to pick up purchases made online in and out of the store. The new intelligent system is designed around the optical barcode reader which is able to scan codes and accept pins given to the customer upon making the order. Within a few seconds the computer will deliver the order to the in-store mailbox where the customer can efficiently collect their new purchase.

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The vending machine service not only makes shopping quick and easy it also allows the customer to be in control. But how does this work? Behind the scenes of the online and offline technology, will stand two small warehouses holding the stock along with a robotic machine, Zara’s dynamic robot which will move through its small warehouse and handle the orders. With the dimensions to work with up to 2,400 packages concurrently there will be no long queue or hanging around for staff. The chairman and CEO of Inditex, Pablo Isla, stressed the relevance of both concepts in the company’s latest press release, saying that they mark “another milestone in our strategy of integrating our stores with the online world, which defines our identity as a business.” 

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However, although Zara is moving technology forward with their new robotic staff, could this lead to job losses for the human staff members already with the brand? “The most valuable part of any retailer is their people. They make the difference whether the brand makes a sale or not.” says Alistair Crane, CEO of Hero.

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Hero is a consultancy of designers, engineers, retail specialists and data scientists, who together help strategize new technologies which will improve customer services. Crane along with his partner, Adam Levene, launched Hero just two years ago. A company which, not only works with global retailers to transform billions of analogue retail spaces into smart stores of the future, but who is in support of in store staff. Making their job service-driven and valuable to any company. “What you want is a human who tells you what looks good and what doesn’t look good, you want to feel like someone has your back,” says Crane.

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Focusing on immediacy and the ultimate experience for the consumers Hero enforces a new strategy to build the bridge between the associates and customer in order to stay connected to the customers, wherever they are. From live video chats of the staff shop assistance presenting the clothing, to offering advice and assistance with ordering products, Hero is there to give customers the best possible experience within the retail brand. They aim to give the retailers a way to keep control of their customer’s relationship. “Brands should not be questioning if they need less working people but thinking ‘do they need to be more productive.'" concludes Crane.

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European fashion retailer Mango has found a way to merge its high-tech experience and high quality staff service as one. Recently announcing its partnership with telephone company Vodafone, they introduced the first phase of the digital fitting room installation within its high-street stores around the world. With Mango recognising that in 2015 the e-commerce market reached over £500 billion, the development of the digital mirror aims to blend the brands online retailing and physical shopping experiences.

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The new concept allows Mango’s customers to have the power when shopping. Upon trying their chosen garments in the fitting room the shoppers can scan their items via the digital mirror to contact the shop floor staff. Making their shopping experience systematic and service-driven, the shopper is able to request different sizes, colours and style through the mirror, delivering the message directly to the staff. Adding to the experience, the mirror also has a mind of its own, becoming the customer’s new best friend. Features include the mirrors suggestions of additional clothing to complement the clothing chosen or extra styling items to complete an outfit. A mirror and fashion friend, what more do you need? The concept has been designed through Internet of Things (IoT), a network of physical devices, allowing the brand to constitute a digital transition and create a unique experience for its customers.

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The success of the high street lies in an equilibrium between experience and customer satisfaction. With retailers adding high tech features within stores and working on customer service it is time to question if the future of the high street relies on our robot friends and their technology or is it simply down to better in-store service? 

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