Retailers are today bracing themselves for ‘Takeback Wednesday’ with the return of online purchases set to rise a phenomenal 80% today. This comes as consumers get back into the swing of reality on the first working day of the year, and return those unwanted Christmas gifts that just didn’t quite hit the mark.

With over half of online shoppers electing not use a retailer again if the returns process is difficult, it’s imperative that online retailers not only understand how to provide an optimum shopping experience, but that they strive to reduce returns altogether.

Steve Gershik, CMO at inRiver comments: “As consumers get back to work post-Christmas, the rush to return unwanted items begins. Reducing the volume of returns needs to be at the top of online retailers’ priorities for 2019 in order to limit the financial impact on their business.”

“While many retailers are focused on shifting as many goods as possible over the holiday sales period, if products don’t meet shoppers’ expectations, they’ll be returned instantly. Our recent research found that nearly a quarter of shoppers (22%) said the products they buy online rarely meet their expectations, causing nearly half to always return items (48%).”

“Understanding the reasons why consumers send products back will enable e-commerce businesses to focus on providing a better experience, reducing these occurrences. Shoppers need to know exactly what they are purchasing; it is up to retailers to deliver a product that is consistent with expectations. Ultimately, if customers feel let down by a retailer, they’ll go elsewhere in the future.”

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The UK retail environment is changing at the fastest pace in its history, says Apostolos Lambrianides, Group Marketing and PR Manager at The Delta Group.

If you were to believe the headlines, the death of the high street is imminent. Since the collapse of Woolworths in 2009 the UK retail scene has seen a wave of high profile administrations affecting the high street…those Friday evening trips to the local Blockbuster are a thing of the past!

However in reality retailers are learning to innovate – looking at new ways to engage with audiences and understanding the changing consumer dynamics that are determining the way they shop.

So here we have a look at some of the key consumer trends that have already impacted the way brands and retailers approach product positioning and marketing, as well as some of the new retail challenges and (and opportunities) you should be aware of now…before it’s too late!

The Millennial Market

The story of the millennial is only too familiar to readers of the Drum. Born between the early 1980’s and early 2000’s, these guys are digital natives who have grown up and matured with mobile technology and as such, expect to be able to use it in every aspect of their life. Constantly on a variety of social media platforms and documenting their every move, the convenience of the mobile device is paramount to this group. And unsurprising the UK’s 14 million strong millennial population are more likely to start and end their journey on their smartphones than any other age group, who have started turning their mobile device into a handheld wallet.

Improving the payment experience through self-checkout kiosks and advanced digital payment technologies is essential to keeping the millennial shopper. The relentless focus on perfecting technology has set a new standard across the industry that millennials now accept as the norm. Retailers must be able to provide streamlined, user-friendly systems and processes in order to retain the millennial.

However the challenge doesn’t end there for retailers, as a personalised retail experience is equally key. Whether this is online or in-store, millennials seek customer service professionals who understand their preferences and make recommendations tailored to their specific needs. Millennials want a customer-centric experience in which they feel wanted and valued. In order to do this, retailers need to closely examine what they’re currently doing with customer data, and ensure this information is being utilised to deliver a more personalised in-store experience.

The Conscious Consumer

Over the years, as manufacturers have looked towards cheaper and quicker ways of getting their products to customers, retail manufacturing practises have taken a serious toll on the environment. Second only to oil, the retail manufacturing industry is the most polluting industry on the planet. However, increasing awareness around these issues – thanks largely to the growing influence of the millennial audience (yes, those guys again) – has given rise to the conscious consumer.

Loosely speaking, being a conscious consumer means shopping and consuming with greater thought given to aspects of the product and business you’re buying from. Thoughts include: Are they Fairtrade and are their products responsibly sourced? And are they environmentally friendly? Ultimately this group aim to seek out ways to make positive decisions about what to buy and look for a solution to the negative impact consumerism is having on the world.

Another key concern for the conscious consumer is the way in which brands target audiences, both through advertising and the positioning of their products. As products and services expand to reflect the rich cultural makeup of the population, advertising efforts can be observed leading with non-centred perspectives that fall in line with a view to omni-culturalism, whereby effectively celebrating difference as the only norm. This progression demonstrates the need for brands to engage consumers around values less tied to traditional markers of identity such as race, geographic location and gender.

The Power of Omni-Channel

The omni-channel approach defines the new way in which consumers shop: by using all the options available to them. It could be using a desktop, laptop, tablet, smartphone, smart TV; they might go direct to a website to research a specific product or arrive through affiliate channels or email; engage through review platforms, apps and so on.

In the UK shoppers say that social media has an influence over what they buy (under 25’s – 60% and 25-34 – 50%), while conducting prior online research on the retailer’s own site or sites of other retailers led to 13% greater in-store spending among omni-channel shoppers.

Although not a retail strategy, it’s still essential to understand the multiple methods people use in their path to purchase as, ultimately, the more channels customers use the more valuable they are! A recent Google study found that omni-channel shoppers are three times more valuable to a brand, with Macy’s stating it is in fact as high as six times.

The Delta Group understands the challenges faced by international retailers, brands and entertainment companies that operate in fast-paced, competitive environments. For over 20 years, they’ve provided end-to-end marketing services designed to integrate supply chains and help companies improve their marketing agility, reduce costs and achieve maximum returns on marketing investment. 

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Many retailers have started their Black Friday sales in advance of the event on the 23^rd November and Savvy’s latest research suggests this year the sale will be bigger than ever. Insight Director, Alastair Lockhart, explores what the findings suggest about consumer behaviour this year and what this means for retailers.

Despite 84% of shoppers believing there is too much hype surrounding Black Friday, this year 53% of UK shoppers plan to buy something during the event, up from 43% who made a purchase in 2017. Around a third of shoppers expect they’ll spend more this year than they did last year.

The findings highlight how younger shoppers are driving growing interest in Black Friday, with 71% of 18-24 year olds planning to buy something.

Most shoppers expect to shop Black Friday online (84% of those getting involved), however 42% plan to buy something in-store – with older shoppers most likely to get out to stores.

In large part due to heavy discounting from retailers like Amazon and Currys PC World, electricals is expected to be the largest Black Friday category. 54% of Black Friday shoppers plan to buy electricals, with clothing and footwear the second largest category (41% planning to buy).

Although some retailers actively avoid participating in the Black Friday sale, Savvy’s research shows the event is a concrete fixture in the retail event calendar. 62% of shoppers believe all retailers should have a Black Friday sale, and almost one-third see the event as the most important sale of the year.

From the retailer’s point of view we continue to see a professionalisation of the event. Retailers are planning the event far in advance, buying stock specifically for Black Friday, and a growing number have extended the sale beyond a week. With consumer confidence fragile, Black Friday can provide an opportunity for retailers to kick-start Christmas spending – the challenge will be maintaining their profit margin during the crucial Golden Quarter of trading.

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Johnston Press Plc publisher of the i newspaper has launched a new news trade initiative targeted at independent retailers; “i’m on your side.” Created by HH&S and working in conjunction with the National Federation of Retail Newsagents, the campaign will run through 105 newsagents nationwide.

The campaign is designed to assist independent newsagents to recruit new subscribers to the i newspaper. Retailers will be guided to identify subscriber opportunities from their existing casual newspaper purchasing customers, local businesses and schools.

Identified potential subscribers will be offered a 4-week discount period together with a further introductory subscription offer. Retailers will be entered in a free prize draw for every registered customer, business or school targeted with the discount offer and guaranteed a bonus for every 6-day subscription take out.

Paul Bacon, Sales & Marketing Manager for i said “i’m On Your Side has been developed as a response to retailers who feel they can both introduce i to a new audience and gives existing buyers a good offer that will lead to increase in frequency of purchases. Using their local knowledge pro-active newsagents can target different parts of their community with a suitable offer and be well rewarded for their efforts with long term subscriptions which benefit their business”

Richard Thomson Johnston Press Publishing Director said “The independent news-trade is critical to the continued success and future growth of the i newspaper and this initiative directly benefits both the trade and the newspaper. I see this activity as being the start of an on-going programme ”

Consumers and local businesses will be offered a free copy of the Saturday edition of the i newspaper and 50% off Mon to Fri for the next 4 weeks. Consumers, local businesses and schools taking up the subscriptions offer will then benefit from a further 50% discount off the cover price for 3 months and then 30% thereafter.

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