FUTURE of retail FIGURE 36:


UK RETAIL MULTIPLE AND INDEPENDENT OUTLETS


Annual net loss/gain in outlets


2000 4000


-12000 -10000 -8000 -6000 -4000 -2000 0


+263 +831 -601


-2,481 -4,010 -6,537 -7,648 -9,877 -10,059 2015 2016 2017 2018 2019 2020 Independents Multiples Source: Local Data Company


is where the real push is, coupled with retailers trying to understand the power of customer data and who their customers are in a physical environment as well as online. “That is why we’re seeing significant


activity in loyalty, because loyalty cards identify who you are no matter what channel you’re in. So, you might browse online, then go into a store and speak to a sales assistant who can see what you’ve browsed.” Simpson identifies ‘retail media


networks’ as increasingly important. She explained: “When you go into a supermarket and see banners saying, ‘Here is a new chocolate bar’, that is retail media. Grocers have done this for a long time, but other retailers are cottoning on to it as digital retail media. So, when you search for something online, sponsored products appear at the top. Brands pay retailers for that. “This has increased as a revenue


channel for retailers over the past 12 months. They can make a lot of money from it because they give brands data on who purchased. “This isn’t just happening with


retail. A major hospitality group has its own media network. Airlines will


2021 2022 -3,627 -1,483 -1,013 -1,521 -1,442 +2,157 +262


Retailers are realising the reason people come into a store is to interact with store associates. They are the magic of a store and it’s about empowering them with data and insight to allow them to give the best possible service


be thinking about this as well – not just advertising in seatback magazines, but the drinks offered on board as well as what people are shown online.” Walton suggested: “The next step


is fully formed ‘social commerce’. This isn’t particularly new. You’ve been able to buy stuff through links to products on social media, but it has been about advertising and links. That is changing. We’re going to see online retail within social [media] sites, which poses a threat to retailers if the social platform takes care of the logistics. “We could see a big increase in


online sales coming through social sites because that is where people spend their time online, not on retailers’ sites.” Simpson added: “I would extend that


to the gaming industry. We’re seeing many more brands show up on gaming platforms in ways they hadn’t before. Across social and gaming, the challenge for retailers is to hold on to their customer data. These channels might be new areas of revenue growth, but the customer data is held where the transaction is.”


TRENDS IN PHYSICAL RETAIL She noted a shift in the experience in stores, arguing: “Before the pandemic, there was a trend in-store to have digital screens and virtual reality kiosks. Retailers are realising the reason people come into a store is to interact with store associates. They are the magic of a store and it’s about empowering them with data and insight to allow them to give the best possible service. We see that empowerment through data as a trend that was once just in the luxury space.” Walton agreed, saying: “Something


THE RATE of retail closures slowed, with openings by


independent retailers marginally outpacing closures (Figure 36)


that has changed in the last year is the idea that the customer experience is based around experiential retail, Instagram- able spaces or being able to play a video game. A large proportion of shopping and loyalty is based on customer experience and the best customer experience involves a helpful, knowledgeable shop assistant.


Travel Weekly Insight Report 2024 27


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