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Current trends in retailing and the future of retail property Andrew Bolitho - Property, Energy, Planning and Transport Policy Advisor.

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Presentation on theme: "Current trends in retailing and the future of retail property Andrew Bolitho - Property, Energy, Planning and Transport Policy Advisor."— Presentation transcript:

1 Current trends in retailing and the future of retail property Andrew Bolitho - Property, Energy, Planning and Transport Policy Advisor

2 LobbyingIndustry data and informationMedia managementOn Pack Recycling LabelGlobal

3 BRC Membership

4 The BRC is the authoritative voice for retail recognised for its powerful campaigning and influence with governments and as a provider of excellent retail information. The BRC represents Over 80% of the retail sector30,000 small and medium sized retailersOver 75 major retail membersOver 190 fascias wide range of large to small, out-of-town to high street, Located in London, Brussels and Edinburgh


6 Economic overview

7 Source: ONS


9 Source: ONS & GFK


11 Rolling 3-month average Source: BRC

12 % change year-on-year

13 Source: BRC % change year-on-year (3 month average)

14 Source: BRC Vacancy rates


16  Rise of online retailing  Expansion of the supermarkets into non-food products and lines  Leases and renewals  Recognition that there is too much retail space  Increase in level of exports

17 Source: ONS

18 Source: Eurostat

19 Source: Verdict

20 Floor space and shop numbers

21 In Town and Out of Town


23 Technology - Commerce e-commerce m-commerce Social media (f-commerce) Technology - Marketing and Advertising QR codes (Quick Response Codes) Near Field Communication (NFC) Interaction digital advertising Wi-Fi Technology - Supply Chains Efficient sourcing Inventory management

24 Seamless integration across the multi-channel platform E-commerce Sales growth of 20% per annum Accounts for 10% of all retail sales (c. £30 billion) Online retail searches growing by 40% M-commerce Sales growth of 150% per annum Accounts for 5% of online spend (c. £1.5 billion) Online mobile retail searches growing by 214% NFC – mobile wallets “Quick Tap” Social media (F-commerce) ASOS first retailer in Europe to open Facebook shop

25 Desktop 77% Mobile 109% 23% Smartphone 102% 57% Tablet 288% 43% Total 10% 100% Growth YOY Proportion -3% Retail searches breakdown by device Source: BRC

26 Future Developments 3D Printing Retailers Tesco is assessing the possibility of printing 3D products in-store, with its technology team currently testing 3D printers to explore future in-store applications. Amazon has launched a section of their website that sells 3D printer and supplies. Staples has plans to set up a new service called "Staples Easy 3D“ that will allow customers to upload their designs to Staples' website, then pick up the printed objects at their local store. Sainsbury’s is preparing its 3D printing strategy to be revealed later this year. We have even seen this technology used to create 3D chocolate faces at FabCafe in Japan and by ChocEdge in the UK. Fujifilm In 2012, Fujifilm discussed introducing 3D printers using the established kiosk model that's been successful for digital photo printing. Kiosks would be placed in retail store and a catalogue of objects would be available for purchase, with the products on offer occasionally rotated to provide variety. Food NASA and a Texas-based Systems & Materials Research Corporation are exploring the possibility of using a "3D printer" on deep space missions to make food in space. 3D printing of food may be revolutionary for the food industry - tissue engineering reduces CO2 emissions with no animals, land use, chemicals or transport and is also heralded as a solution to food shortages.

27 Future Developments Rise of the robots Hointer, a US mens fashion retailer, is leading the way to robots running some of our retail stores. The store has no salespeople, confusing signs, or stacks of clothes to riffle through to find the right size. Instead, lines of clothes in hundreds of styles hang for you to browse through. When you find something you like, you scan the QR code on the tag, pick your size on the Hointer app with your smartphone, and your selection is automatically delivered to the changing room via a chute from the German robot-operated stockroom. To pay, you put your items in a bag, checkout by swiping your credit card at a station, and walk out the door. The store even offers free automated alterations It’s as close to the ease of shopping online in the physical world as you can get.

28 Burberry Regent Street in London brings their online marketing in-store, to create 'Burberry World Live', which claims to offer customers the physical expression of the brand's most innovative digital launches in recent times. The store’s features include a 22ft-high screen, 500 hidden speakers and a hydraulic stage. It also showcases RFID microchips on clothing and accessories, so when customers try on clothing the mirror transforms into a screen, which shows the garment on the catwalk. Related catwalk footage is also triggered when products are taken near video screens throughout the store. There is also a digitally enabled clothing gallery.


30  Rise of online leading to changes in distribution ◦ Higher concentration of warehouse vs brick and mortar stores ◦ Delivery to door and click and collect  Enhancing the customer experience ◦ Innovation in retail technology ◦ Multiple consumer offers in store i.e. coffee shops, childcare, health and education  Managing the decline of retail on our high streets ◦ Providing solutions to oversubscription of retail space

31  Delivery of flexibility within change of use order ◦ temporary development rights for retail to residential – April 2014  Drive towards enhancing energy efficiency in commercial buildings ◦ Minimum Energy Performance Standards ◦ Energy Savings Opportunity Scheme  Greater focus on better town centre planning ◦ Delivering diversity to enhance the high street ◦ Providing long term clarity for investors/developers ◦ Enabling out of hours delivery

32  Delivery of consistent planning decisions at a local level  Changes in the ways in which we shop  Innovation in the customer experience and multiple in- store offers  Managing the decline of the high street  Ensuring the right level of appropriate retail space remains both In Town and Out of Town  Creating a vision for the future of retail Source: Bank of England

33 Thank You


35 What is NFC? short-range wireless technology which enables data to be transferred between smartphones and other devices. The technology is still in early development stage, but there is a growing number of retailers trialling NFC in-store – particularly in France. What is the development? French hypermarket, E. Leclerc, has introduced NFC tags on its products in France. Why do we like it? Shoppers simply tap NFC tags with their mobile phone to add products to a virtual shopping basket. NFC tags call up product information, such as allergen information. Prior to shopping, smartphone owners can set a shopping budget which is monitored by the app. Users also receive discounts or promotions that are embedded in the tag. Products can be paid for in-store via the app, and also ordered for home delivery

36 What is the development? John Lewis, Ocado and Argos introduced ‘pop-up’ QR code stores in the UK to encourage 2011 Christmas sales. Why do we like it? John Lewis:  Rolled out to 129 UK stores; customers could ‘click and collect’ items before 2pm the next day, avoiding the Christmas queues.  54% increase in the use of ‘click and collect’  The QR code stores were placed in Waitrose windows, meaning shoppers could conveniently combine their grocery and Christmas gift shopping. Ocado:  The UK’s first virtual store.  Ocado’s QR code stores make use of empty high street shop fronts. Argos:  consumers point their smartphone at the QR code alongside a product whilst travelling through London Paddington station, and collect it from an Argos store the same day.

37 What is the development? Meat Pack, a shoe retailer in Guatemala famous for its heavily discounted designer shoes, in collaboration with Google, launched a discount marketing app called ‘Hijack’ to entice consumers from competitor stores around the mall. Why do we like it? Using GPS tracking, Hijack recognizes consumers entering competitors’ stores and triggers a discount that starts at 99% and decreases by 1% each second until they enter the Meat Pack store. Those who reached the stores faster, got better deals. Over 600 customers raced to the store, being ‘hijacked’ from competitors, with the highest discount received a massive 86%.

38 What is the development? PayPal and Zapp, a mobile phone app company, have both independently developed their own mobile payments service without the need for a wallet. Why do we like it? Zapp:  Zapp and Worldpay, a payments firm, have callaborated to provide a service that enables smartphone users to pay for products in-store with their phone. Consumers can simply enter a code or scan a barcode at the till using their mobile, with the payment taking only 12 seconds.  WH Smith, Lidl, Superdrug, and McDonalds have signed up to the scheme which will be available to the online banking customers of Barclays, NatWest, Lloyds and Nationwide by 2014. PayPal:  Products can be paid for in-store by checking-in with the app which is then identified by the stores tills and charged for by the cashier. The customer’s profile is also sent to the till, allowing staff to treat customers as regulars.  Restaurants may give customers access to their PayPal bill, enabling them to add items to their bill without troubling staff.  A ‘Bill me Later’ Service is incorporated so credit is accessible in seconds.  Users can pay for products and have them ready for collection before they even enter a store.  PayPal’s app includes all its existing services, allowing consumers to effortlessly switch between their payment sources.  The Bingham Hotel (London) allows users to use a ‘Pay with Your Face’ service by simply showing their face to the receptionist, and if it matches their PayPal profile photo the room is charged to their PayPal account.

39 Lego uses augmented reality to boost sales Lego has introduced augmented reality displays to its own-brand stores, which enable customers to hold a product box up to a screen to reveal what the model looks like when built. The displays are already demonstrating results, customers who engage with them are spending between 20-40% more than customers who don’t.

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