Retail battle lines drawn for 2015

UK retailers must focus on seven key pillars for success this year as outlined in a new report “Winning the Retail Battle in Britain in 2015”.

It has been released by retail insight specialist Kantar Retail and Manchester-based global law firm Squire Patton Boggs.

Selective technology, creative click and collect and rethinking stores are all priorities for year ahead.

The key areas highlighted include consumer insight and how best to respond to the changing face of the UK population, understanding continually evolving shopper  psychologies, technological innovation and serving shoppers seamlessly across all channels, especially mobile.

The report also recommends moving beyond price considerations to a new economy of time and ease, personalisation of pricing and service and having fewer stores, but making them more theatrical and connected.

Kantar Retail director of retail insights, Bryan Roberts, said that a year after the first report with Squire Patton Boggs was launched and in the wake of Mary Portas’ high street review, the number of retail failures had slowed, but was clear 2015 will still be a challenging time.

“The British Retail Consortium has reported that many retailers expect sales to grow during 2015 and they will invest in more staff, showing that amidst the tough times, UK retailers are rising to the occasion and continuing to innovate to remain competitive.” he said.

Head of retail at Squire Patton Boggs Bryn Doyle said an increasingly important element of any plan for growth was the retailer’s omnichannel strategy.

“It is interesting that while click and collect brings the worlds of online and in-store together, transitioning store staff to deal with the challenges this brings has created issues for many retailers.

“Many do not have the contractual flexibility that is needed to meet this customer demand and staff  are not appropriately incentivised to look at the bigger picture.”

John Lewis managing director Andy Street said that Kantar Retail and Squire Patton Boggs’ report sheds light on key retail issues for 2015.

“It also wisely argues that after all we are still retailers, and as such our task is to have a ruthless focus on what the customer wants,” he said. “The winners will be those who correctly anticipate the changing nature of customer demands.”