Gordons Retail Insights: Why creating retail experiences is essential for success
In the second of two articles, we provide BusinessDesk readers with exclusive insights from Yorkshire law firm Gordons’ recent event exploring ‘The Future of Value Retail’.
Revealing the findings of independent research commissioned by the firm, the event was hosted by Gordons’ retail partner, Andy Brian and featured a panel of experts comprising Nick Glynne, managing director of Buy It Direct; Ian Schofield, head of the own label products team at Iceland; and Jonathan Sands, chairman of global brand design consultancy Elmwood.
To download a free copy of the report click here .
There are many reasons for the continued success of value retailers, not least a change in consumer attitude. Over 80 per cent of respondents to Gordons’ research believe it has become more acceptable to shop at discount or value retailers. However, if value retailers are to continue their impressive growth, it is important that they think beyond price alone, and create in-store ‘experiences’ for their customers.
Elmwood’s Jonathan Sands highlighted the power of retail experiences when he spoke about US value grocer, Trader Joe’s, which he described as a “value retailer with charisma”. He said: “Trader Joe’s has a cult following because it has adopted a distinct personality. It is very good value but it’s also got a brand attitude – and value brands must adopt a personality.”
Jonathan added: “You have got to be famous for one thing and only one brand can be the cheapest, so the rest have to do something else. We’re seeing huge growth in experiential retailing because value brands of the future need to become charismatic. Pound brands shouting about price are just competing on a rational basis and they need to start engaging emotionally too in order to be sustainable.”
Retail experts: The panel comprised (from left) Nick Glynne, managing director, Buy It Direct; Andy Brian, retail partner, Gordons; Ian Schofield, head of own label, Iceland; and Jonathan Sands, chairman, Elmwood.
He referenced another American retailer, Target, which turned each of its stores into a brand experience at Christmas using beacon technologies. “You could even Skype Santa – gone are the old days of sitting on an old man’s knee, you could Skype him in Lapland, from Target. It’s all about experience and it provides a great opportunity for retailers,” he said.
Iceland’s Ian Schofield agreed that retailers must have a point of difference. “You’ve got to have lots of ideas and you’ve got to go for it even if some don’t work.”
Ian suggested that the addition of wi-fi into Iceland stores is the first step towards providing experiential retailing for customers.
He said: “We have wi-fi in every store because we know that experience is going to come. Customers are interacting more and more, they’re even talking to each other in store over wi-fi and we must be ready to provide an experience, whatever it needs to look like.”
Nick Glynne from Buy It Direct told how providing an experience – such as events for customers – has helped the online retailer to add value and get more margin in a busy online market.
Drones Direct, the group’s newest brand, offers free flying lessons to anybody that buys a drone, with a ‘drone zone’ in its own showroom and monthly flying lessons. “There are always ways to fight back and not be dragged down on price,” he said.
Ian Schofield added that events provide another way of getting price-conscious customers into store. He said: “Consumers today are so savvy, they know how much things cost so they must have a reason to visit. Retailers are putting a lot of effort into events like Valentine’s Day and Halloween, and they will continue to do so. The European Championships this summer, for example, will change again how we market our goods around football. There will be a lot of activity, even in smaller retailers that are limited on space.”
It is clear there are challenges ahead for value retailers, but there are opportunities too. It seems from Gordons’ research and the subsequent discussion that the value retail sector is more than ready to embrace those opportunities.
To download a copy of ‘The Future of Value Retail’ report click here .
