Fiona Rayner, Head of Experiential and International at Blackjack Promotions, shares how travel terminals have the opportunity to create captive experiential activity that help engage potential customers.

Are travellers likely to spend more thanks to duty free/tax free?

The two have become blurred, and ‘duty free’ is not the offering it once was. There are still savings to be found in duty free at airports versus the high street, but the message terminal retailers are focusing on is offering shoppers something they can’t get on the high street. Airports are currently leading this, but as it isn’t dependant on a duty free/tax free hook, it could be translated into any terminal; I expect we will see more rail station retailers following suit.

Are travel terminals bucking the doom & gloom of the high street?

It’s certainly true that people still think of airports, travel retail and flying as glamorous – we all still look forward to going on holiday and that association with airports is perennial. I don’t think train travel is quite there yet, although I have noticed some of the major rail providers are trying to reignite ‘Golden Age’ excitement in their marketing campaigns to encourage people to think differently about train travel.

Due to the sheer volume of people airport terminals have to process, they tend to be technologically progressive spaces and technology is being harnessed to refresh the retail experience at these sites. Traveller demographics affect traffic flow throughout the day and retailers are able to use digital screens to change the duty free environment; the store design and ‘wallpaper’ can change at the flick of a switch. This creates an exciting and more relevant experience for shoppers.

Major train stations have ramped up their experiential offerings too, making the most of the captive ‘passing trade’ to create immersive moments and provide product sampling that helps to engage potential customers. We’ve seen an increase in specific place-based associations such as Paddington Bear at Paddington station, and Harry Potter at King’s Cross St Pancras, which tell a story and bring joy in a way high street shops are not traditionally placed to deliver.

Are certain retailers likely to perform better in terms of sales at travel terminals rather than the high street?

The main thing about travel terminals in particular is that they are able to understand their customers a lot more because they understand them as passengers first – and this provides key insight for retailers. If you think about the high street, you know your demographic, but you don’t necessarily know when they will be coming into the store. If it’s raining, they may not bother to pop out to the shops on their lunch break. These variables don’t have the same impact on terminal retailer trade. They are making an intentional journey, so retailers are able to better identify customer demographics, be they a commuter who wants convenience, a holiday maker who wants a travel exclusive, or a business traveller who wants gifts, it’s easier to make bespoke and targeted offerings based on the kinds of travellers you have coming through. Destination targeting can be employed. For example, if you have a train arriving from Edinburgh, you are unlikely to target shoppers with whisky. You know the journey the customer is taking, therefore the retail offering can be bespoke.  In train terminals in particular they are selling ‘impulse purchase’ products and can streamline what they are presenting because they have a heads-up on who is coming through the doors. Retailers providing a ‘one-stop shop’ experience are likely to perform well, as we have seen in the example of a major high street newsagent who have increased sales by diversifying their offering at terminal retail sites.

WHSmith’s travel arm is making profit while its high street sales are slumping – why is this?

In April, a leading high street newsagent diversified their retail portfolio at Gatwick North terminal when they introduced a pharmacy into the store. By offering more services, they are better able to service the time-poor clientele we often find at terminals, and increase spend per-customer. They have clearly taken a good look at their terminal retail demographic and responded by offering the customer what they want and need.

If you would like to find out how Blackjack Promotions can help you, get in touch with Fiona Rayner at Fiona.Rayner@abm.com

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Katy Brown, Associate Planning Director at Haygarth Group, considers whether the rise of automated technologies last year has really changed the way we shop. 

Automated technologies have been a hot topic inside the marketing bubble for some time, but many predicted that 2018 would be the year they reached their potential – with both retailers and consumers.

Let’s reflect on three predictions, and what the year behind us says about the year ahead.

The UK was certainly armed with the tech needed to make 2018 the year that marketers got to grips with Voice, according to Marketing Week – with huge Christmas 2017 sales theoretically changing the way consumers completed any number of online tasks overnight.

But did this really change the way that we shop? Depends who you talk to. Google claims that 44% of users buy through their voice device every month, but third party estimates for Alexa commerce range from 16% down to a tiny 2%. It seems that despite the wealth of “skills” that brands can now teach Alexa, the usage reality is more mundane: music, weather, and boiling an egg.

Recent years saw social networks unlock APIs to give brands greater powers within their messaging platforms, and so we anticipated a proliferation of chatbots this year. But after the immediate launch of some sexy but gimmicky ones, has their use really passed in to the mainstream and everyday?

Research by AI specialists Ubisoft shows that three quarters of UK consumers have yet to interact with one. Of the one in four who have, nearly half find them “annoying”, whilst three quarters find them impersonal. The most motivating factor for interacting with a chatbot is to get a fast answer – so when the shopper has time for a richer interaction, they’re not yet top choice.

Automated retail formats grabbed headlines, with Amazon announcing it would be bringing its Go format to London, and Sainsbury’s and Co-op also claiming to be developing new, seamless formats.

WHAT IT ALL MEANS

Whilst these innovations make for a smoother experience, they only affect one part of the purchase journey: transaction>exit. This is nothing new – self checkout and scan-and-go have been around for some time, and have successfully demonstrated to retailers that they can trust (most) shoppers. The only thing that Amazon’s “Just Walk Out” model does differently is the way that they monitor baskets and payment.

Not all kinds of shopping can be reduced to simply the buying of stuff. In some categories, we welcome the opportunity to be entertained and educated during the process. At the moment, automated technology can only go so far to deliver this.

Trust and empathy

The argument against the inevitable ubiquity of automation comes down to two factors: trust and empathy. Over time we might build trust in automated services, but this can only happen through repeated, satisfactory encounters. What is missing from an interaction with a robot, although it might beat a human on speed and accuracy, is empathy – a trait which (currently) can’t be authentically embodied by an algorithm.

The uptake of voice shopping is a case in point: we need to spend a little more time with Alexa until we trust her to make brand choices for us, or chat to her about our tough day.

Investing in skills

We’re undoubtedly moving to a retail world where some human roles become less necessary, but with this comes a risk that automation will not just make consumers lazy but will cause a downskilling of the staff who do remain.

I was on my local high street last week and, on the spot, decided to buy a wireless keyboard as a Christmas gift. Eschewing my normal tech buying process (Google it > Prime it), I headed to the nearest with the intention of not only receiving the expert advice I needed, but walking out with the right product under my arm.

What actually happened, when I managed to attract the attention of a member of staff, was this:

Me: “I want to buy a wireless keyboard that’s compatible with my dad’s LG Smart TV. You sell both. What are my options?”

Assistant: “Nah – no, I dunno about compatibility. You’ll need to Google it.”

Needless to say, I left without making a purchase. This scathing review is based on one encounter, but does hoist a red flag for retailers.

Mastering the mix

It is essential that retailers don’t lose sight of those uniquely human skills of empathy and trust when blending staff and technology. For the meantime, there are still areas where humans trump robots – entertainment, advice, upselling, warmth, familiarity – and the retailers who will survive the high street’s tough times will be those who combine technology and skilled personal interaction to create a shopping experience that is both fulfilling as well as seamless.

Haygarth is an award-winning creative agency that create powerful brand and retail ideas that amaze and persuade people to buy.

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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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Fiona Strong, Managing Director at Ark-H Handling, explores how Black Friday can be both a blessing and a curse for retailers and fulfilment houses.

Introduced from the USA several years ago, the Black Friday phenomenon, like so many American imports, has had positive and negative effects on the UK market in almost equal measure.

Initially the new concept in sales promotion led to a massive rise in on-line sales, as internet retailers rushed to capitalise on this frenzy of armchair bargain-hunting.  Sales spiked, web-sites crashed and the shopping world went Black Friday mad. The high-street trembled as the statistics for year-on-year on-line shopping sales shot through the roof and the world of fulfilment and distribution was caught on the hop.

As time has gone by the Black Friday effect has begun to diminish somewhat, although this is still the busiest period for sales, both on-line and on the high street. Designed to ‘kick-off’ the holiday season (Thanksgiving) in the US, Black Friday has, to a marked extent, become the starting pistol for pre-Christmas sales in the UK.

Mainstream retail has caught up with on-line, with stores building television campaigns designed to capture both on-line and footfall sales. Shoppers looking for bargains still flock to find the best deals, in the ether or on the pavement, but the one-day pressure has eased.  Many retailers have sought to up-stage the Black Friday event with earlier offer days with Amazon Prime day being a ‘prime’ example.

The on-line shopping bonanza continues to grow and flourish and it is now expected that sales will rise and rise. It is the rush to discount that has slowed slightly, with retailers of all descriptions recognising that this is more of a rush to bottom than a race to the top. The benefits to consumers remain and special deals abound but no longer in the staggering proportions of a few years ago.

On-line fulfilment services too have adjusted to meet demand and it is no longer so difficult for companies to fulfil the peak in demand. Gone are the days when neither websites nor warehouses could cope with the Black Friday effect.

Predictions for 2018 suggest that the average Brit will spend about £220 on Black Friday. This is significantly less than last year but it is also predicted that many more people will take part. So the overall spend on the Black Friday weekend will still probably top out at over 7 billion pounds.

The Black Friday phenomenon is both a blessing and a curse for retailers and fulfilment houses alike but, given the need for them to keep the customers satisfied and sales rising now that everyone has got the hang of the idea, on aggregate they are probably better off with it than without it.

Ark-H Handling has over 28 years of proven expertise in delivering a comprehensive range of handling & fulfilment solutions. They provide unparalleled levels of service and expertise delivered through industry leading systems & facilities, combined with outstanding staff and a commitment to quality.

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