M-commerce to ‘explode’ say retail experts

MOBILE-commerce will continue to grow, while new trends such as click and collect will shape the retail landscape, experts believe.

A debate organised by accountants BDO and Manchester Business School also suggested that the tough times the sector has endured in the last few years will continue this year.

There will be fewer high profile casualties in the sector as many on the critical list a year ago , such as Comet, JJB Sports  HMV and Jessops, have gone into administration over the last 12 months.

Don Williams, head of retail at BDO, told the event: “We expect the retail market to be about the same, in terms of money spent, as 2012.

“The sector still faces a hell of a lot of headwinds, and consumers are cautious and want new products and to be excited.”

He said retailers should take heed to four areas – omni-channel, supply chain, international markets and operational discipline in terms of managment of store portfolio.

With regard to omni-channel retailing he said wireless 4G connectivity would benefit retailiers using augmented technology, while supply chains – in the wake of the horsemeat scandal in the food retail sector – are of primary importance.

“The consumer has been very forgiving of brands which they wear, where for example there have been issues with use of child labour in their supply chains – but I don’t think they will be as forgiving with products we eat,”

He expects more retailers to “vertically integrate” by owning their own abbatiors and meat processing plants, but warned this could lead to higher prices.

Manchester Business School academic and retail analyst Tarlok Teji says we are in the “age of the agile consumer.”.

He says digitial technology and access to information has had a profound influence on consumer behaviour.

He said: “These customers are agile in adjusting spending habits, complex in shopping patterns determined by life stage, life style or shopping mission and will use the internet on the move to research before making the purchase.

“The agile consumer will instantly share the news of a bargain buy or poor service via social media.”

North West businessman and mobile technology expert Keith Curran said retailers needed to invest heavily in quick and secure digital infrastructure or risk being left behind.

“There will be either the quick or the dead, such is the explosion in m-commerce and the change in consumer habits.”

Mr Curran said data harvested from customers’ devices would prove to be an invalauable weapon for retailers as it will allow them to determine theri location, spending habits and shopping preferences.