It’s that time of the year when everyone’s making predictions about what the big events of the next 12 months. Here are our pick of the retail trends for 2010:
1. The rise of click ‘n’ collect: Many of the multichannel pioneers (Argos, Halfords, DSGi etc.) have seen fantastic adoption of their click ‘n’ collect initiatives over the last year, contributing in no small part to the great results reported by the high street over the last few days. We can only presume that where some have gone, more will follow. Why? Today’s tech-savvy consumers want to compare and review products online before they seek the satisfaction of going to pick them up immediately from their local store. Due to the increasing cost of visiting the high street in terms of parking, petrol, time and the occasional Penalty Charge Notice (thank you Westminster Council), shoppers want to ensure that their journey is a successful one. Having found what you want online, clicking and reserving is still by far the fastest way of getting hold of your purchases. And the benefits extend to retailers too. Further integration of their online and offline channels allows for a truer understanding of consumer shopping habits and a more unified service offering, resulting in a more loyal customer base. The high street is making a come back…
2. Mobile apps.: The proliferation of smart phones and our seemingly unquenchable thirst for apps (according to Steve Jobs over 3 billion have been downloaded from Apple’s App Store to date) means only one thing… After eBay and Ocado both successfully launched smart phone apps last year, others will surely be following suit. Although pureplay e-tailers are clearly in a better position to deliver mobile apps in the shorter term, the larger multichannel players will be eying this space closely and working out what they need to do make it happen (and with what degree of functionality). Maintaining a permanent presence in the palm of your customer’s hand is an opportunity that’s simply too good to miss…
3. Increased IT spend: Despite the volatile economic climate, the first two predictions simply can’t happen without the supporting systems in place. A recent white paper by the Royal Mail claimed that UK retailers invest on average only 1% of turnover in technology. In banking it is 2-3%. Despite becoming a similarly information-led sector, IT spend simply isn’t on the increase and retailers are running a serious risk of being left behind. 2010 is set to be a year of change as the multichannel initiatives being put into place by retailers of all sizes reach the stage where investment is required to bring their operations up to date. We reckon this year IT spend is set to double. Software companies and systems integrators everywhere are rubbing their greasy palms…
