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1、30/03/2023INDEPENDEN T P U B L I C AT I O N BY#0862R AC O N T EU R.NE TFUTURE OF RETAIL&ECOMMERCEARE WE READY FOR IN-STORE ROBOTS?HOW TO COMBAT TRIANGULATION FRAUD0806THE RISE OF THE DE-INFLUENCERS14R A C O N T E U R.N E TF U T U R E O F R E TA I L&EC O M M E R C E0302Reports editorIan Deeringhe bas
2、ic idea underlying the 15-minute city is sim-ple:if were living in any part of it,our shopping,leisure,healthcare and transport facilities should all be within a quarter of an hours walk or leisurely bike ride from home.The concept has earned Professor Carlos Moreno several accolades since he propos
3、ed it in 2016 as a wayto challenge the dominance of the motor car and so make urban environments greener and more liveable.Given its associations with the use of traffic restrictions such as ultra-low emission zones,the 15-minute city has also attracted conspiracy theories about ghetto-isation.But p
4、eople neednt worry too much about such an outcome,however unlikely that is,because the first real working models are stillsome way off.Nonetheless,retailers should note that local authorities have become significantly more interested in urban centres than out-of-town developments of late.Councils in
5、 Birmingham,Oxford,Sheffield and Waltham Forest,north London,are all exploring the potential of the 15-minute city,for instance.“The concept is being imple-mented here by maintaining local centres where there is already a good spread of facilities,including for shopping,public transport,health and l
6、eisure,”says a spokes-man for Oxford City Council.“Keep-ing all of these clustered together attracts more people to a given area and helps it to stay vibrant.”Stressing the importance of main-taining footfall in keeping such facilities viable,he adds that the council will“direct new develop-ments,in
7、cluding workplaces,as much as we can to our district and local centres.Where the council owns shops,for instance,its vital to set rents at a level that community businesses can afford.”During the Covid crisis,the London Borough of Waltham Forest conducted an extensive research project,including focu
8、s groups,to learn exactly what its residents wanted from their localities.“We knew that old-fashioned con-cepts of cities didnt always make people healthier and happier,”says a spokesman for the council.“We want everyone to be able to meet most,if not all,of their needs within a walk or short bike r
9、ide from home.”The result has been a plan to intro-duce a 15-minute neighbourhood that supports local retailers and uses low-carbon modes of transport,such as cargo bikes and electric vehicles,for last-mile deliveries.The pandemic has helped to build support for Morenos ideas,which are based on the
10、desire to make local communities more cohesive.Thats the view of Tom Whittington,direc-tor of retail and leisure research at real-estate giant Savills.He says:“As things began to open up after the lockdowns,people started to experience the 15-minute commu-nity themselves.Part of that change was what
11、 we call retail reinvention.”A change in footfall patterns resulting from the widespread adoption of hybrid working means that areas that once mainly hosted shops,for instance,might see more developments devoted to leisure,say,thereby widening the range of facilities on offer in those areas.“With mo
12、re people working from home,local shops that were busy only on Saturdays may find that they have customers throughout the week,”Whittington says.He adds that traditional out-of-town players such as Ikea and B&Q,both of which are opening high-street stores,will gain access to a whole new group of con
13、sumers who dont have cars.Since January,B&Q has been test-ing smaller store formats under a new blueprint known as B&Q Local.Eight such stores have opened so far and another is due to start trading inSutton,south London,in the next few months.Customers will find everything that they might expect to
14、see at a conventional DIY super-store,including kitchen and bath-room design services,according to the firms strategy and development director,Chris Bargate.“Our stores have traditionally been located out of town,so the launch of B&Q Local means that more custom-ers will have our products and ser-vi
15、ces on their doorsteps,”he says.The reimagined high street is even attracting the attention of department stores and garden cen-tres.Products that were previously sold only at John Lewis are being stocked in branches of Waitrose,while Dobbies,the 150-year-old garden supplies chain,has opened Little
16、Dobbies in Edinburgh,Bristol and Chiswick,west London.The 15-minute city also has impli-cations for ecommerce,notes Peter Blackburn,international commer-cial director at InPost,a logistics operator specialising in parcel deli-very and collection lockers.These lockers can“expand the breadth of postal
17、 services available in a local area and bridge the gap between online and high-street shopping”,he says.Blackburn explains that parcel lockers are ideal for“trip-twinning”,in that they provide a quick and easy way for shoppers to receive or return online purchases while nipping out to their local hi
18、gh street to grab a coffee or a few groceries.The idealised 15-minute city may still be something of a utopian con-cept.But,with its principles of local-ism,convenience and eco-friendly transport already finding strong support from local authorities around the world,its piecemeal adoption is likely
19、to be significant inthe future of retail.High-street ken:whos sitting pretty for the 15-minute city?FUTURE OF RETAIL&ECOMMERCEAlong with the continuing popularity of hybrid working,a growing movement espousing eco-conscious localism is changing urban shopping patterns.This has already prompted sever
20、al retailers to rethink their bricks-and-mortar strategiesDistributed inSimon BrookePublished in association withAlthough this publication is funded through advertising and sponsorship,all editorial is without bias and sponsored features are clearly labelled.For an upcoming schedule,partnership inqu
21、iries or feedback,please call+44(0)20 3877 3800 or email Raconteur is a leading publisher of special-interest content and research.Its publications and articles cover a wide range of topics,including business,finance,sustainability,healthcare,lifestyle and technology.Raconteur special reports are pu
22、blished exclusively in The Times and The Sunday Times as well as online at The information contained in this publication has been obtained from sources the Proprietors believe to be correct.However,no legal liability can be accepted for any errors.No part of this publication may be reproduced withou
23、t the prior consent of the Publisher.Raconteur MediaYouGov,2023Industry leaders rely on Celigo to integrate their ecommerce processes.Learn more at L O C A L I S MMarc Ambasna-JonesA journalist specialising in business,technology and sustainability.His work hasbeen published in TheGuardian,Computer
24、Weekly and ERP Today.Simon BrookeA freelance journalist with25years experience ofcovering topics such as finance,marketing and communications for awiderange of outlets.Ben EdwardsA freelance journalist withmore than a decade of experience.He specialises in writing about business,finance,technology a
25、nd the law.Virginia MatthewsA Fleet Street-trained reporter,editor and columnist with extensive experience of daily news andfeature writing for daily and weekly publications.Amy NguyenA researcher and writerfocusing on the nexus of sustainable business,fashion and supply chains.Emily SearesAn award-
26、winning businessjournalist andeditor who writes forawide range of nationalpublications.Ouida TaaffeThe editor of Financial World,the magazine of the London Institute ofBanking&Finance.Shepreviously covered the telecoms market.Jonathan WeinbergA freelance writer,mediaconsultant and trainerspecialisin
27、g in technology,business andthefuture ofwork andsociety.ContributorsTraconteurraconteur.storiesraconteur-media/retail-and-ecommerce-EditorSarah VizardSub-editorChristina RyderChief sub-editorNeil ColeCommercial content editorsLaura BithellJoy PersaudDeputy reports editorJames SuttonDesign/production
28、 assistant Louis NassDesignKellie Jerrard Harry Lewis-IrlamColm McDermottSamuele Motta Sean Wyatt-LivesleyDesign directorTim WhitlockIllustrationCelina LuceyCampaign managerShira GoldwaterHead of productionJustyna OConnellAssociate commercial editorPhoebe Borwell Richard Klune via Getty Images Bus s
29、topPost boxPharmacyGP surgeryParkPrimary schoolOff-licenceNurseryParcel drop-offSupermarketBankSecondary schoolBarber/hairdresserRestaurantShopping centreFEW BRITONS CONSIDER IT A PRIORITY TO HAVE A SHOPPING CENTRE WITHIN 15 MINUTES WALK OF THEIR HOMESUK consumers responses when asked:should the fol
30、lowing amenities be within a 15-minute walk of all homes in your neighbourhood?90%6%87%8%5%85%7%8%84%8%8%81%9%10%74%13%13%70%12%18%67%18%15%65%16%19%59%12%29%55%15%30%49%18%33%46%17%37%38%19%43%28%17%55%4%Should Dont know Should notR A C O N T E U R.N E TF U T U R E O F R E TA I L&EC O M M E R C E05
31、04What the revised data protection and digital information bill means for retailers ver since the EU General Data Protection Regulation(GDPR)came into force in the UK in 2018,it has attracted both praise and criticism,often in equal measure.Nonetheless,the common view held by politicians,lawyers and
32、 IT experts in light of Brexit has been that Westminsters approach to regulation in this area will diverge from that of Brussels.Such a split became even more likely on 8 March when the govern-ment introduced the second itera-tion of its data protection and digital information bill to Parliament.(Th
33、e original bill on which its largely based stalled after its first reading when Liz Truss became prime min-ister in September 2022.)This is a generally promising de-velopment for UK retailers working under the GDPR.The bills enact-ment could lighten the data man-agement burden,do away with risk asse
34、ssments and maybe even relieve some firms from having to employ a dedicated data protection officer.Whatever happens when the bill is finally enacted,public trust has to be maintained.Thats the view of Gavin Freeguard,interim head of public policy at the Open Data Insti-tute,the not-for-profit resea
35、rch body co-founded by Sir Tim Berners-Lee.Freeguard fears that the proposed legislation risks“diluting the exist-ing rights,protections and redress mechanisms that provide trans-parency”over how personal data is stewarded.Data protection impact assessments,which are designed to identify and mitigat
36、e risks when processing personal data,can be“aboon,not a burden”to business,he argues,adding that provisions in the bill should also deal with the need for better infrastructure to support data intermediaries.“All this is particularly vital given the excitement surrounding genera-tive AI,which is dr
37、iven by data.The thrust”will stay the same in keeping high standards in data protection.But he adds:“Changes to the cook-ies regime,proposed in the original bill and retained in this revision,may mean that consent is no longer required for the use of certain ana-lytical cookies and similar technolo-
38、gies where the data is being used to improve services or websites.This will be well received by ecommerce businesses and website users alike.”James Cull is a solutions engineer at Rokt,an ecommerce tech provi der that includes Dominos Pizza and Ticketmaster among its clients.He thinks that the GDPRs
39、 requirement on retailers to secure consent before using data for marketing purposes has generally detracted from the cus-tomer experience.Cull hopes that the legislation will give clear guid-ance on the proper use of data for direct and indirect marketing.This would offer consumers“a smoother and s
40、atisfactory ecommerce jour-ney”,given that they want“a rele-vant shopping experience similar to one theyd receive when speaking to a great salesperson in a store”.He suggests that a focus on“legiti-mate interest”in the use of direct marketing would help retailers.For instance,if the personal data us
41、ed by marketers is handled correctly and respects all data privacy rights,it could then be processed for that purpose on a particular website.Cull explains:“This would enable retailers and brands to create a more relevant customer experience thats tailored to each individuals needs.This might even i
42、nclude quality measures such as frequency caps or the complete suppression of ads to existing customers,offering a supe-rior experience in every case.”Sarah Pearce is a partner specialis-ing in data privacy and security at law firm Hunton Andrews Kurth.She says that questions remain about the UKs ab
43、ility to satisfy the EU authorities that its new provi-sions remain“essentially equiva-lent”,bearing in mind that it took more than a year of talks to persuade Brussels to sign a so-called data adequacy agreement in 2021.This was a formal recognition of the UKs high standards in data protection,allo
44、wing the continued inflow of personal data from the EU.But Pearce adds that many retail-ers would welcome the bills state-ment that records of processing will be required only for entities using processing activities that are likely to pose a“high risk to the rights and freedoms of data subjects”.Sh
45、e adds:“Most online retailers are unlikely to be carrying out suchprocessing.The removal of this obligation,which some see as overly burdensome,is likely to be wel-comed by the industry.”The governments second attempt at reforming the GDPR focuses on cutting red tape and business costs.Canit achieve
46、 this without removing crucial safeguards?right regulations,as part of an open and trustworthy data eco system,will let us unlock benefits.But the wrong ones could result in undesira-ble outcomes that diminish the po-tential returns to both society and the economy,”Freeguard warns.“Such outcomes inc
47、lude the prolif-eration of data and practices that arent trusted.”Sarah Simpson,a senior associate in the intellectual property team at international law firm Katten,accepts that the governments main aim with its new bill is to lighten the regulatory burden.There are clear benefits in it for retaile
48、rs,she says,although there are concerns that proposals which would remove cookie consent banners from web-sites could result in more profiling and tracking,reducing transpar-ency surrounding the collection of personal data.“Changes to the rules governing direct marketing for instance,broadening the
49、so-called soft opt-in to include a simple means of refus-ing such marketing materials will be hugely beneficial to retail com-panies,”she predicts.“At present,the soft opt-in is limited to where individuals have bought goods or ser vices from businesses previously,enabling such businesses to conti-n
50、ue marketing to them.”Simpson explains that,if the legis-lation lets retailers target consum-ers they dont yet have a relationship with by simply giving them the chance to unsubscribe by clicking an opt-out link,this could have a big impact on the“potential to market to individuals theyre unable to
51、tar-get at present,thereby increasing sales and improving revenue”.But she warns:“If customers arent given the option to control how their data is collected,they may seek clar-ification of this in other ways,such as via subject-access requests.These are an administrative headache CONSUMERS PRIORITIS
52、E THE RIGHT TO ACCESS DATA HELD ON THEMPercentage of UK consumers giving the following responses when asked:what do you consider to be your most important right relating to the personal data that organisations hold?Jonathan WeinbergR E G U L AT I O NEArisSu via iStockthat can be hugely costly for bu
53、si-nesses to deal with.”There are also concerns that retail-ers that sell to markets in the EU could need to abide by both the new UK legislation and the GDPR.Other legal experts believe that the proposed changes concerning cookies will turn out to be limited.Andrew Kimble,a partner specialis-ing in
54、 data protection at law firm Womble Bond Dickinson,is one of them.He says that the bill is“not quite the rewrite of the GDPR and cookies law that was perhaps antici-pated”,suggesting that its“main 8%8%5%20%The right to access my personal informationThe right to move my personal information from one
55、organisation to anotherThe right not to be the subject of automated decision-making and profilingThe right to have inaccurate personal information rectified(or completed if it is incomplete)Information Commissioners Office,202114%The right to restrict the processing of my personal information14%The
56、right to be forgotten/to have my personal information erased15%The right to object to the processing of my personal information16%The right to be informed about the collection of my personal informationCommercial featureillennials those born between 1981 and 1996 are now the worlds largest con-sumer
57、 group.But gen Z the genera-tion born between 1997 and 2012 is hot on their heels.So how do their ecommerce expectations differ?And more importantly,how can merchants meet them?“With millennials,theres an expecta-tion that the payments process should be smooth,seamless and always work,”says Moshe Wi
58、negarten,chief revenue officer at Ecommpay,an international payment service provider.Gen-Z consumers feel the same way.But they also take such experiences which many retailers have worked hard to achieve for granted.“Its a baseline for them,”says Olga Karablina,head of payment product development an
59、d partner relations at Ecommpay.“Its about what else you do on top to ensure theyre happy and willing to come back.”In fact,one bad payment experience could push them into the arms of a rival retailer.“If theres a glitch their card has funds on it,but its been declined and they dont know why you los
60、e the customer,”says Winegarten.This may not happen as often with gen Z as it does with millennials.the checkout process to ask for per-sonal information,or requesting card details,could potentially damage con-version rates among gen-Z customers.Buy now,pay laterBoth generations are keen to see alte
61、r-native payment options at the check-out including buy now,pay later(BNPL).These services allow consum-ers to spread the costs of their pur-chases,often while incurring little to no interest.One in ten gen-Z consum-ers expect to use BNPL more over the next five years,as is an even higher per-centag
62、e of millennials(14.2%).In addi-tion,Ecommpays research found that around 57%of 16-to 24-year-olds,and almost 56%of 25-to 34-year-olds,feel the increasing cost of living and infla-tion will encourage them to use such services more.Gen Z is less worried than millen-nials about getting into debt throu
63、gh BNPL,with twice as many millennials citing it as a concern compared with gen Z(36.3%versus 18%).Likewise,the risks of late charges and more interest were only of concern to 17.2%of gen Z,whereas 27.9%of 24-to 34-year-olds thought this was an issue.Ecommpays new BNPL solution helps to address thes
64、e fears and ensure responsible lending,as it uses a robust risk scoring system tailored to different industries,like retail or travel.When asked if businesses were doing enough to educate consumers about the BNPL option at the checkout,only 36.8%of gen-Z respondents said no compared with 52.9%of mil
65、lennials.When it comes to regulation,35.3%of gen Z said that BNPL needs to be fur-ther regulated.Millennials feel even stronger about better regulation,with 60.7%of respondents pushing for more rules to be implemented within this credit category.This appears to show that millennials are more up-to-s
66、peed with both the benefits and potential risks of BNPL.However,when asked what changes would encourage them to use BNPL as a payment option,twice as many gen-Z respondents cited more pre-con-tractual explanations with clarity on processes and support(22.8%versus 10.9%).This shows that gen Z are per
67、-haps not as confident as they might seem about precisely what BNPL ser-vices entail.“Yes,there has to be a fast,friction-less flow at the checkout to mitigate the chance of an abandoned basket,”says Karablina.“But in the case of BNPL,its the responsibility of a trusted lender to provide a clear mes
68、sage within this flow of payment to help the consumer fully understand what theyre doing.”Looking aheadAlthough open-banking payment options have yet to make much impact on ecommerce not least because the likes of Apple and Google Pay already offer consumers quick and secure means of paying by card
69、it doesnt hurt to offer millennials and gen Z a range of options at the checkout.However,the fact that only 13.9%of gen-Z consumers believe they com-pletely understand what open banking is and how it is used,compared with 24.1%of 25-to 34-year-olds,suggests that gen Z may not grasp how checkout opti
70、ons like pay by bank actually work.Looking ahead,social shopping is likely to grow in importance.“Gen Z wants to buy what they see on Instagram,and being able to take payments in that space is something were beginning to see and support,”says Winegarten.Gen Z is also the most open to paying with cry
71、pto,with 23%of 16-to 24-year-olds saying they would use it if it were offered as a payment option.Ecommerce merchants need a trusted partner who understands these generational nuances.Because while millennials and gen Z share some similarities when it comes to pay-ments,they also differ in countless
72、 subtle ways,such as their approach to new options like BNPL and crypto,their dislike of account creation require-ments and overall brand loyalty.The merchants that recognise this and adapt their processes accordingly will ultimately be those who succeed.For more information visit According to resea
73、rch commissioned by Ecommpay,millennials are twice as likely to use a credit card than gen Z and far more keen to use a debit card too(52.9%versus 31.5%).Gen-Z con-sumers are less bothered by the lack of a local payment option,however,with just 6.7%of 16-to 24-year-olds claiming it would cause them
74、to aban-don the checkout as opposed to 12.4%of millennials.Ecommpays research also found that almost two-thirds(65%)of gen-Z respondents were“very likely”or“somewhat likely”to abandon the checkout in the middle of an online payment if their preferred payment method isnt available.For millenni-als,th
75、e figure is even higher at 78.7%.Thats a lot of lost sales simply due to the lack of additional payment options,like Apple Pay or Google Pay.Furthermore,22.3%of gen Z are likely to abandon the checkout process if they have to make an account on the merchants website or app a consid-erably higher per
76、centage than for mil-lennials(13.1%).Gen-Z shoppers also feel almost twice as uncomfortable as millennials when it comes to sharing their card details online(20.1%versus 10.5%).This suggests that slowing down Why retailers cant afford to ignore generational payment preferencesMillennials and gen Z b
77、oth want fast,frictionless payment experiences,but there are also key differences between the generationsIn the case of BNPL,its the responsibility of a trusted lender to provide a clear message within this flow of paymentEcommpay,2022M22.3%of gen Z are likely to abandon the checkout process if they
78、 have to make an account on the merchants website or app78.7%of millennial respondents are very likely or somewhat likely to abandon the checkout in the middle of an online payment if their preferred payment method isnt available57%of 16-to 24-year-olds feel inflation and the increased cost of livin
79、g will encourage them to use BNPL servicesR A C O N T E U R.N E TF U T U R E O F R E TA I L&EC O M M E R C E0706nyone who has visited a branch of Currys recently or perhaps a Decathlon in Spain or even a Lowes hardware store in San Francisco may already have encountered a retail robot.These few exam
80、ples mark the start of something huge on the high street if a forecast by tech analyst ABI Research is to be believed.Last year it predicted that the annual revenue of the emerging sector providing retail robotics could exceed$8.4bn(6.9bn)by 2030,so perhaps wed better get used to the idea of seeing
81、more silicon-based shop staff.Robotics,and automation more generally,represent an opportunity for retailers as they wrestle with the constant challenge of managing the omnichannel experiences they offer while their costs rise and shoppers habits change.This technology was first used by the retail in
82、dustry in back-office functions such as ware-housing,but it has been adopted more recently for last-mile fulfil-ment Co-ops use of home delivery robots from Starship Technologies,for instance and assistance on theshop floor.Bearing in mind how deeply the self-service checkout has divided opinion amo
83、ng supermarket shop-pers over the years,it should come as no surprise that not everyone is efficiency and the human touch,re-ducing the amount of time that front-line employees need to spend on low-value tasks could give them more scope to work on turning visi-tors to their stores into loyal custom-
84、ers and even brand advocates.Its a view shared by Stuart Higgins,partner at management consult ancy BearingPoint.He suggests that using robots to do menial work should enable store staff to spend more time on“more value-adding and satisfying roles focused on im-proving customer satisfaction and sale
85、s”.He cites the KettyBot as a good example of this.The key,of course,is to under-stand what customers might want from their human and synthetic shop assistants respectively and to work out how to deliver those things.Although some of the early breed of in-store robots might seem a little gimmicky,Hi
86、ggins suggests that some retailers have made real pro-gress in finding ways for them to make the shopping experience smoother and more efficient.“We saw a recent example of this in Zaras concept store at Battersea Power Station in London,”he says.“If a customer wants to collect an online order from
87、here,they simply take their confirmation email and scan the barcode on it at the col-lection point.”Behind the scenes,all parcels awaiting collection are held in a small,highly automated warehouse.Acting on the barcoded informa-tion,its loading system will locate and retrieve the requested parcel,pr
88、esenting it to the customer through a hatch.This is,Higgins says,“a brilliant example of back-of-house robotics smoothing the customer journey.Atthe same time,it frees store col-leagues to work on more customer-facing tasks.”Its the sort of thing that PAL Robotics has been doing with its StockBot,wh
89、ich has been adopted by sports retail giant Decathlon.Deploying robots effectively in a store is a complex undertaking,says Alexandre Saldes Barbera,director of innovation business development at PAL Robotics,which also has a humanoid retail bot called ARI.“The store is a dynamic environ-ment,”he sa
90、ys.“The retailer may be changing things around in it daily.”To this end,StockBot can perform automated inventory counts several times a day if required.Its also able to pinpoint the location of any given product on the premises.Such applications should,for the moment at least,be the preferred direct
91、ion for retailers to take when it comes to automation,according to Higgins.He also throws shop-floor cleaning into this mix,citing Marty,the googly-eyed bot that pat-rols US grocery outlets run by The Giant Company.“One thing is certain,”he says.“The democratisation of robotics in the workplace will
92、 enable more au-tomation projects in the near future and the faster,more agile deploy-ment of these technologies.”This,he adds,should help retailers to increase the efficiency of their store operations and improve cus-tomer satisfaction.In a sense,this is about going back to basics retailers should
93、deter-mine the most common niggles their customers have and how this new tech could solve these recurring problems.Knights points to the growing influence of gen Z,the first fully digital-native generation that has grown up not knowing a time when ecommerce didnt exist.“Gen-Z shoppers want self-serv
94、ice options and they expect accurate in-ventory information and rapid ful-filment,”she notes.“Many surveys have found that theyre also in fa-vour of robots.”Thats the challenge.Where can retailers get the most return from automation and deliver the sort of seamless experiences that all con-sumers,no
95、t only gen Zers,increas-ingly demand?Robots almost certainly have a role to play in areas such as inventory and fulfilment.Given the drive for improved omni-channel experiences,this makes a lot of sense.The value of putting bots on the shop floor,giving them faces and asking them to schmooze custome
96、rs may be harder to gauge.If you do go down that route,just be careful what you name them although there are probably worse things to happen to a robot than viral humiliation on social media.Marc Ambasna-JonesFamilies,especially those withyoung kids,have generallybeen mesmerised by the robot and wha
97、t it can doThe democratisation of robotics in the workplace will enable more automation projects in the near futureRetailWire,Brain Corp,2021MOST LARGE RETAILERS ENVISAGE THAT ROBOTS WILL BE DEPLOYED IN NON-CUSTOMER-FACING ROLESLarge retailers most common responses when asked:which activities are li
98、kely to be most effective applications for robots in your business?head of commercial initiatives and retail design at Currys.“Families,especially those with young kids,have generally been mesmerised by the robot and what it can do,”says Sykes,who admits that staff in the four stores trialling the n
99、ew tech were“apprehensive”about their plastic colleagues at first.They feel far less threatened now,recognising that the KettyBots are there not to take their jobs but to help them deal with customers on the front line,he stresses,adding that the bots have generated a wealth of useful data about the
100、ir interactions with customers.And the name?“Were we to perma-nently introduce these robots into our stores”,Sykes says,“we would look to work with our colleagues to find them a new name.”For now,the KettyBot reflects how some of the worlds larger retailers are thinking,according to Miya Knights,ret
101、ail technology consult-ant and co-author of Amazon and Omnichannel Retail.She reports that robots are part of a more gener-al move towards in-store automa-tion.Two notable examples she cites are the adoption of Volumentals 3D foot scanner by several shoe retailers and Targets partnership with vendor
102、 Clockwork to provide a machine offering 10-minute mani-cures to busy shoppers.As retailers continue to automate,it raises an obvious question about their motives:are they really trying to improve the customer experience or are they seeking to reduce their labour costs?Its likely to be a bit of both
103、,accord-ing to Knights.She suggests that,while companies face a real chal-lenge in balancing technological The idea of being greeted by an in-store robot might put some people off their shopping,but the next waveof automation is already hitting the high streetDo androids dream of electric kettles?Wh
104、y retails getting roboticA U T O M AT I O Na fan of this latest development certainly not the SoftBank cust-omers who assaulted its friendly hum anoid bots in 2015.(Last year the Japanese conglomerate con-firmed that it was discontinuing their production after slashing jobs at its robotics arm,as th
105、e demand for them hadnt met expectations.)Even Currys new robot has been mocked on TikTok for having a name similar to the slang term for the veterinary tranquiliser thats widely abused as a recreational drug.Perhaps thats a little unfair.The KettyBot,named by its Chinese man-ufacturer Pudu Robotics
106、,is going down a storm,reports Ainsley Sykes,ACommercial featuren business,trust is everything.Without it,it is impossible to build a successful and sus-tainable brand.And consumers are less and less likely to forgive if they feel taken for granted.It is perhaps surprising,then,that so many ecommerc
107、e retailers are fail-ing to meet consumer expectations around trust,putting their brands at risk.Shoppers regularly complain about intrusive data tracking processes that lead to them being bombarded by irrele-vant product recommendations.They are also tired of being followed around the internet for
108、weeks after vis-iting a retailers website.More worryingly,customer data breaches have become commonplace,putting company reputations at risk.In January,a major cyber-attack on sports-wear giant JD Sports led to the personal and financial information of 10 million people being exposed.Retailers face
109、growing regulatory scru-tiny and are under pressure to change.But how can they offer a truly personal-ised shopping experience while protect-ing privacy?Digital trust is everything A lot of problems link back to prac-tices originated by the worlds biggest How brands can bridge the online trust gapCo
110、nsumers are fed up with retailers that mishandle their personal data.How can ecommerce firms maintain their trust and protect privacy?tech firms,says ngel Maldonado,the founder and chief executive of Empathy.co,a leading ethical com-merce search and discovery platform.“Over the years the biggest pla
111、yers have tried to commoditise consumers and treat them as objects,and smaller retail-ers have copied their ideas,”he says.“But just as you dont hear about people trusting tech giants like they did 10 years ago,those same questions are now being asked about retail brands.As a result,consumers are mo
112、ving towards those brands that make digital trust a priority.”The Information Commissioners Office(ICO),which regulates UK ecom-merce firms,has significantly strength-ened its rules.Consumers must now be given the option to accept or reject a companys data collection policies when they arrive at its
113、 website.Choosing reject means denying retailers an important stream of intelligence.However,there are still loopholes retailers can abuse.Customers that do not allow their data to be collected can have their location tracked via their IP address,for example.And their per-sonal data will often be go
114、verned by separate agreements between the retailer and its suppliers that the cus-tomer is unaware of.“You can still end up getting unso-licited emails or being exposed in a data breach,all of which erodes trust,”says Maldonado.How Empathy.co helps to solve the problemEmpathy.co works with over 500
115、brands worldwide to help them bridge this trust gap while also offering a truly person-alised shopping experience through search and discovery.Clients ranging from SMEs up to giants such as Zara-owner Inditex,French grocer Carrefour and US retail group Kroger have benefited from its ethical search a
116、nd discovery tools.Using responsible AI,the Empathy Platform allows retailers read-only per-sonalised experiences that dont need to integrate consent-tracking banners or synchronise privacy policy pages.Empathy.co also gives consumers more control over their data when they interact with a search box
117、.For example,a consumers search history or prefer-ences can be stored within their sphere of privacy and control.According to Empathy.cos Retail Trust Index,a survey of thousands of UK con-sumers,only one in five consumers trust the leading UK retailers.The regulatory pressure to improve customer da
118、ta han-dling is also likely to increase.A McKinsey survey of more than 1,300 business leaders and 3,000 consumers globally found that establishing digital trust in products and experiences that leverage AI,digital technologies and data can also promote growth.Such companies were more likely than oth
119、ers to see annual growth rates of at least 10%on their top and bottom lines,it found.However,only a small percent-age of those surveyed were set to meet the necessary standards.Ecommerce firms must adapt to this new normal of ethical commerce or risk being left behind,Maldonado says.“A decade ago wh
120、en we started we were very much swimming against the tide.But now the tide has turned and retailers that dont move with it are likely to struggle in the years ahead.”For more information please visit empathy.co/learn-moreThe tide has turned and retailers that dont move with it are likely to struggle
121、 in the years aheadDATA-CONSCIOUS CONSUMERSConsumer behaviour and attitudes toward data privacy in online and in-store retailIof UK consumers are already changing their online shopping habits in an effort to protect their datafeel their personal data is more secure when they shop in personshop in st
122、ores specifically to avoid online tracking activitiesof consumers dont trust any of the UKs leading retail brands50%70%60%20%Empathy.co,2022Scanning shelves to monitor stock levelsOrder pickingMoving product loads (in the back room and on the shop floor)Checks on pricing accuracyFloor cleaningPlanog
123、ram compliance21%21%35%35%47%59%R A C O N T E U R.N E TF U T U R E O F R E TA I L&EC O M M E R C E0908This sophisticated online scam,which is fast gaining popularity among criminals,is hard for etailers to combat.Nonetheless,security experts believe that merchants could and should do more to protect
124、 themselvesarea that will be fuelled by the cost-of-living crisis as shoppers continue to seek better value for money.”While there is plenty of detection tech available to help merchants protect themselves,there are several basic preventive measures they can take.So says Monica Eaton,founder of Fi91
125、1,a specialist in chargeback fraud prevention.“One thing a merchant can look for is suspicious patterns relating to the card being used,”she advises.“Instead of immediately celebrating a significant growth in sales,peel back the onion layers and check that all those orders are legitimate.That could
126、be done by checking the card numbers or the volume of transac-tions this fraud is often committed using bots.If you see a spike of 100 orders all coming in on one day,thats a huge red flag.”Eaton suggests that merchants send emails to customers as a way to gauge whether transactions are gen-uine.If
127、these messages bounce back undelivered,thats another telling indicator that all is not right.Sheikrojan notes that IP addresses can also provide potential clues about where orders are coming from.“Fraudsters can easily change card details and other variables,such as shipping addresses,but they can l
128、eave traces behind by using the same or similar IP information or device fingerprints,”he says.“Com-panies should be extra cautious if they spot that a user is attempting to hide the true IP address.”More intelligence-sharing among merchants could also help them to defend themselves more effectively
129、 as a collective,Reitblat adds.“Businesses dont often want to discuss fraud,because they are ashamed about falling victim to it,”he says.“But the only way to stop it and really reverse the advantage that fraudsters have is to talk to each other and collaborate.”Shoppers also have a role to play in c
130、rime prevention.If an offer on an ecommerce site seems too good to be true,theres a distinct possibility that a fraudster is lurking on the other side of that deal.This form of fraud might not directly affect the original customer,who could well receive their bargain purchase and not have their deta
131、ils stolen,but its far from a victimless crime and,ulti-mately,everyone loses out to it.their credit card provider,the merchant will discover that it was defrauded when it receives a charge-back demand.Little evidence can be traced back to the fraudster.There is no comprehensive data on the scale of
132、 the crime because it can be hard to pinpoint and often goes unreported,written off by mer-chants as a cost of doing business.But experts believe that it consti-tutes a significant proportion of all card-not-present(CNP)fraud.In January 2019,a study published by Juniper Research estimated that CNP f
133、raud would cost retail busi-nesses worldwide an average of$26bn(21bn)annually over the five years to the end of 2023.One criminal gang operating from Southeast Asia made about$660m in November 2022,aided partly by triangulation fraud,according to Signifyd,a software developer spe-cialising in fraud
134、prevention.The crime was“extremely well coordinated and precise”,reports Xavier Sheikrojan,senior risk intelli-gence manager at Signifyd.“It in-volved not only triangulation fraud but also a mixed bag of techniques s consumers hunted for bargains in the run-up to Christmas last year,many could have
135、unwittingly helped cybercriminals to pocket millions of pounds through an ecommerce scam known as triangulation fraud.In this type of fraud,a criminal posts fake listings on an online marketplace,advertising goods at a heavy discount to attract customers.Having taken payment for a product through th
136、e marketplace,the fraud-ster then uses credit card details stolen from someone else to obtain that product from a legitimate mer-chant.The merchant fulfils the fraudsters order and ships the pro-duct to the original customer,with neither party aware that any crime has been committed.Eventually,once
137、the person whose details were stolen disputes the payment with Ben EdwardsJuniper Research,2022including account takeover and add-ress manipulation.”Sheikrojan points out that the gang started on a small scale,probing var-ious merchants weaknesses first be-fore launching a wider attack.Such fraudste
138、rs are usually large criminal enterprises using different teams with specialist skills,such as acquir-ing stolen credit cards or manipulat-ing customer-service agents into processing orders that have been blocked by the merchants systems.“The fraudsters are turning to AI-based technology such as mac
139、hine learning in the same way merchants have been doing to protect their rev-enues.This trend is driving the scale and speed of these attacks,”he says.“We shouldnt see these fraudsters as hoodie-clad loners in dark garages.We should see them as well-funded and highly organised businesses.”Festive pe
140、riods are a particularly happy hunting ground for triangu-lation fraudsters.For one thing,the increased ecommerce traffic enables them to blend in better.For another,shoppers are more primed to seek bargains and so will be less wary of deals offering big discounts.Also,because a gift buyer is more l
141、ikely to ask a merchant to ship their order directly to the recipient,the fact that the billing address differs from the delivery address wont automatic-ally arouse suspicion.Another reason why triangulation fraud is hard to spot is that the per-petrators will often focus on goods worth less than 30
142、0.These could be anything from sunglasses and head-phones to nutritional supplements and pet supplies,Sheikrojan says.The crime is not only committed on legitimate online marketplaces,reports Michael Reitblat,co-founder and CEO of fraud-prevention plat-form Forter.In some cases,fraud-sters have buil
143、t their own ecommerce sites,potentially enabling them to steal credit card details.While the growth in etail market-places and the broader shift to on-line shopping during the pandemic have fuelled triangulation fraud,the economic downturn may also give it a further boost.Thats the view of Francesca
144、 Titus,a partner and bar-rister specialising in white-collar crime cases at McGuireWoods.“Fraud is on the increase across the board.This is the latest type to emerge,”she says.“Its a clear growth Warning sines:how to detect and prevent triangulation fraudInstead of immediately celebrating a signific
145、ant growth in sales,peel back the onion layers and check that all those orders are legitimateC R I M EAKasper Rasmussen via UnsplashONLINE SHOPPERS ARE LOSING MORE AND MORE TO FRAUDCombined global value of ecommerce payment fraud losses$10bn$40bn$50bn$20bn2020$30bn202120222023(projected)Commercial f
146、eaturen a world of complex algo-rithms,measuring the suc-cess of your ecommerce strategy by how far a customer has to walk in their slippers feels slightly out of step.But so-called slipper distance is one of several strategies retailers are using to meet growing customer expectations around online
147、pur-chases and returns.“Convenience is king for online customers,”says Toby Hay,managing director of ecommerce marketing at logistics giant FedEx.But that can mean different things to dif-ferent people.Hay explains that,while UK consum-ers mostly prefer home deliveries,cus-tomers in the Nordics favo
148、ur delivery to out-of-home pick-up points such as stores or lockers.“That preference is evolving now in the UK as out-of-home availability and acceptance have increased recently.Soon there will be a tipping point when it becomes con-venient,cost-effective and sustaina-ble enough for Brits to prefer
149、using it.Thats your slipper distance when you can almost stumble out of your house and find a delivery or collection point.”This out-of-home strategy has become a key lever in delivery options used by retailers to keep pace with the explosion in ecommerce demand.in line with their rivals offers arou
150、nd speed,cost and delivery notifica-tions to help customers plan and pre-pare,”Hay explains.He points to 2021 research from Sendcloud,which found that for 90%of consumers,delivery is an important factor when choos-ing one online store over another.Meanwhile,78%of consumers feel that speed of deliver
151、y is important.“But customers are not just judging their experience against other retail-ers anymore.They want the best digital experience full stop.You are now also competing against the convenience being offered by the pizza guy deliver-ing in 20 minutes and letting you track their progress in rea
152、l time.”To win this battle of competitive convenience,Hay says retailers are thinking like a customer and starting to customise experiences at scale.“Given that convenience is such a key factor for many people in purchasing decisions,failing to provide a tailored service can lose business,”he states
153、.“Communicating more regularly with customers about their delivery needs is critical,as is working out what their preferences are because these can change at the drop of a hat.The one-size-fits-all delivery model does not work anymore.”FedEx has a system called FedEx Delivery Manager to help both re
154、tailers and customers take ownership of the delivery.Customers can change the delivery date,get it sent to a different address,or get it delivered to a neigh-bour,a retailer or a nearby FedEx loca-tion and receive an estimated deliv-ery time window along the way.Retailers can also be more proac-tive
155、 and predict customer behaviour through the use of data.“Delivery companies typically have good data on what shoppers prefer when it comes to deliveries or collections,and retail-ers have good data on which products are selling well or need to be delivered quickly,”Hay says.“Data is the fuel of the
156、21st century.You can determine whether a customer has a preference for a particular delivery day or deliv-ery point.We are moving towards mass personalisation using data to know that a customer is always at home on a Tuesday but likes to go for a coffee at 3pm for an hour.We can then predict when an
157、d where they want their deliv-eries to be made.”Hay says that thinking like a customer also means developing more knowl-edge about the competition.“One of the best things a retailer can do is act like a customer and shop with a com-petitor.Compare that experience with your own and learn from the goo
158、d and the bad,”he says.By being smarter around deliver-ies,retailers can also better prepare themselves for economic downturns.“During Covid,when a lot of people had more disposable income and ecommerce was growing,it was easy to hide poor performance,”Hay says,“Every online retailer was a winner to
159、 a larger or lesser degree.But in times of economic crisis,the competition for customer spend increases.The more you can drive convenience for the consumer the more competitive you will be.”Convenience,however,is also asso-ciated with a negative environmental impact.Retailers must be both con-venien
160、t and responsible,but there are challenges.“Almost 80%of customers say they would consider a sustainable delivery option but only 7%are willing to pay for it,”Hay explains.“But the good news is that by using more parcel points and lockers,we all take a step towards more sustainable operations.”This
161、is a win-win solution for retailers and customers,making deliveries more sustainable and convenient.FedEx has also been trialling the use of e-cargo delivery bikes in locations such as Copenhagen and Glasgow.“Weve found that in denser urban environments you can be enormously cost-efficient on a bike
162、.For final mile journeys you can take five vans off the road and replace them with three cargo bikes,”Hay says.As well as being a good option for customers showing a preference for more sustainable deliv-ery options,receiving packages by bike can be faster due to fewer stops and no hold up in traffi
163、c or difficulties parking.Its all about understanding the cus-tomer and providing the right service,says Hay.“We offer shipping to keep people shopping.”To find out more,visit delivery was once a compet-itive benefit but now its expected as a standard option by customers.Click-and-collect services i
164、n-store were also once a rarity but are now much more common.“With the bar continually rising,it is no surprise that customers today expect multiple delivery options,”says Hay.“The pandemic has further heightened and changed these expec-tations because of the different ways we now live and shop.Duri
165、ng Covid,most of us were at home,making deliv-eries a lot easier.But peoples patterns and preferences are now more diverse.We may be at home or in the office or in between the two.So,the customer definition of delivery convenience,when and where they want their par-cels to arrive,has become very per
166、-sonal and situational.”While consumers start to demand delivery at any time,almost around the clock,they also expect control and visibility of their deliveries too.Over the Covid years,customers have also become much savvier when it comes to digital purchases,from booking holidays online to buying
167、groceries or even cars.“Retailers have always competed on customer experience and conveni-ence.In ecommerce,they need to be Competitive convenience:offer shipping that keeps customers shoppingWhat do online retailers need to offer to stay competitively convenient and keep customers coming back?The o
168、ne-size-fits-all delivery model does not work anymoreof consumers say that delivery cost is important when selecting an online storeof consumers say that speed of delivery is important when selecting an online storeSendcloud,2022I90%78%R A C O N T E U R.N E TF U T U R E O F R E TA I L&EC O M M E R C
169、 E1110Convenience,speed and efficiencyCost-effectivenessPersonalisation of services and offersAccess to unique offersBetter customer serviceNone of the aboveOF THE SUBSCRIBERFor some time,the subscription service has been a popular model for food retailers and home entertainment platforms.But,since
170、the Covid crisis and the consequent upsurge in ecommerce activity,players in several other sectors havebeen experimenting with subscriptions.This is not surprising,given that most consumers consider themselves subscribers in some form and that their spending on subscriptions remains strong despite t
171、he cost-of-living crisis95%of shoppers have at least one subscription for a product or service90%of those subscribers have maintained or increased their spending on subscription services in the past 12 months84%of shoppers expect to maintain or increase their subscription spending over the next 12 m
172、onthsSUBSCRIPTION SERVICES ARE POPULAR WITH ALL AGESSubscription service behaviour worldwide,by age groupWHY DO CONSUMERS CHOOSE TO SIGN UP?Percentage of global consumers citing the following as the main benefits of the subscription services they useSubscriberNon-subscriberNeither subscriber nor non
173、-subscriber51%42%41%36%22%7%18-to 24-year-olds25-to 34-year-olds35-to 44-year-olds45-to 54-year-olds55-to 64-year-oldsOver-65sSUBSCRIPTIONS ARE EQUALLY POPULAR FOR WOMEN AND MENShare of consumers globally who consider themselves subscribers to services or products94%96%MenWomen93%96%95%97%97%96%2%4%
174、3%4%2%3%1%1%1%1%1%3%2%2%3%3%3%3%3%10%13%15%17%18%22%24%22%2%9%8%10%13%13%12%9%8%29%45%35%43%47%45%45%53%49%41%59%36%39%43%44%47%Travel and leisureTechnologyFood,beverage,diningChildrens goodsHealth,beauty,fitnessProducts for petsHousehold essentialsEntertainment(eg,TV streaming)Spending intentions a
175、mong consumers with subscriptions worldwide,by subscription typeIncreaseNo changeDecreaseNot sureResponses from non-subscribers when asked to indicate which services they would be most interested in subscribing toeDreams Odigeo,OnePoll,2022R A C O N T E U R.N E TF U T U R E O F R E TA I L&EC O M M E
176、 R C E1312n 2022,there were nearly 53 million Google searches and social media conver-sations focusing on sustainability in fashion a trend that has been growing over the past five years,according to research by Brandwatch.This increasing con-sumer interest has prompted retail-ers to create new cate
177、gories such as resale as a service,enhanced by advances in tech such as artificial intelligence.The trend has also fuelled the growth of both repair schemes and recycling pro-grammes,which convert waste into reusable material.Some players have developed their own resale marketplaces.They include eth
178、ical pioneer Patagonia and even fast-fashion giant Zara,which offers resale in addition to repair services.Others are partnering with online con-signment and thrift stores such as ThredUp or selling through mar-ketplaces including Poshmark Vestiaire and Collective.Mean-while,social ecommerce platfor
179、ms Depop and Vinted have emerged to offer their target audience fashion-and eco-conscious digital natives an easy way to trade in second-hand garments.Uniqlo is converting parts of its key city-centre stores to Re-Uniqlo Studios,offering accessible repairs and recycling.And Selfridges has set out am
180、bitious plans for half of all sales to be sustainable by 2030.To this end,it has already increased sales of pre-loved items by 240%,administered 28,000 repairs and rented out 2,000 pieces via its Reselfridges initiative.Despite such notable initiatives,the public generally remains scep-tical of reus
181、e,repair and recycle programmes.Commendable though these are,solving fashions huge sustainability problem will require far more concerted action globally.One organisation that under-stands the scale of the industrys challenge is the Waste&Resources Action Programme(Wrap),a char-ity promoting the cir
182、cular economy with an initiative called Textiles 2030.Wraps latest Textiles 2030 Annual Progress Report states that the number of improvement actions taken by companies in the sector to reduce their carbon and water foot-prints increased between 2019 and 2021.Yet this was not enough to counteract th
183、e significant growth in the volume of clothes and home textiles on sale.With several companies overstat-ing their eco-credentials,high-profile incidents of greenwashing have not helped to reduce consum-ers understandable mistrust in the industry.Thats the view of Jane Shepherdson,an expert in sustai
184、nable fashion and chair of My Wardrobe HQ,a luxury rental platform.She believes that several high-street and fast-fashion retail-ers are using reuse,repair and re-cycle schemes simply“to make themselves look more responsible.Consumers totally see through that.We have seen way too much greenwashing f
185、rom some of these guys,who are obviously just trying to increase footfall.The consumer is not stupid and deserves the res-pect of these brands.”Shepherdson adds:“For a brand to successfully offer reuse,repair and recycle programmes,it needs either some proven credentials or a pro-duct that is so wel
186、l made and in demand that it makes sense.”Established names in the luxury segment,with their heritage and focus on quality that can stand the test of time,are most likely to meet both criteria.Given that high-end garments are better made and more durable than most,they are less likely to end up in l
187、andfill.Hanushka Toni is the founder and CEO of Sellier,a platform special-ising in the resale of luxury goods.She observes that the aftercare schemes offered by high-end brands are“often a chief driver of purchasing decisions.Consumers who invest in luxury goods are more inclined to repair and reus
188、e them,rather than discard them,because they view such products as valuable and worth preserving.”Nevertheless,the continuing popularity of fast fashion and its disposable ethos represents a mas-sive stumbling block.“Ultimately,fashion is about con-sumption.We dont have infinite natural resources to
189、 meet the de-mands of the worlds growing popu-lation,”points out Lydia Brealey,founder of sustainability consul-tancy Enkel and a former high-street fashion buyer.“Sustainability is about protecting resources for future generations,so no brand can justifiably claim that its being sustainable when it
190、s still churning out products.”Zara,which puts about 2,000 new styles on the market each month,and Chinese ultra-fast-fashion giant Shein which adds more products than that to its website on most days have both come under scrutiny recently for establishing resale platforms.Their critics have accused
191、 such initiatives of being incongruous with their pile it high and sell it cheap business models.Other fast-fashion players have faced a backlash for their attempts to market themselves as environ-mentally conscious businesses.Boohoo,for instance,appointed socialite Kourtney Kardashian to the role o
192、f sustainability ambassa-dor last September.“Some companies might position themselves as being environmen-tally friendly,but there can at times be little to no evidence of their planet-positive actions,”says JNae Phillips,insights editor at Canvas8,a specialist in analysing consumer behaviour.“Peopl
193、e are becoming more aware of greenwashing and are increasingly calling out brands on social media.”She adds that the firms attracting most consumer scepticism tend to be those with“big,bold and brash campaigns that arent backed up with behind-the-scenes action that aligns with their intentions”.H&M
194、rolled out a global reuse and recycling scheme 10 years ago,partnering with Looper Textile Co to collect unwanted garments from consumers in its European mar-kets.Despite its status as an early adopter,it accepts that there is more work to be done in this field,noting that“recycling is only the fina
195、l loop,not the entire solution”.The retailer says that it needs to change how it designs its products,to ensure that they have longer usable lives,and expand its rental offering,which is currently availa-ble in only four stores.One of the main concerns sur-rounding recycling programmes is the lack o
196、f transparency surround-ing what actually happens to the unwanted clothing.“A lot of scepticism about take-back schemes and the like arises because they are often positioned as recycling or circular solutions,which is misleading given the current landscape,”says Philippa Grogan,sustainability consul
197、tant at Eco-Age.“If a collection scheme recovers poor-quality garments or unmanageable fibre blends such as polycotton,the post-consumer materials are unlikely to be recy-cled,repaired or resold.”It also comes down to effective communication from the brand.It should disclose why it has a take-back p
198、rogramme in place,the strat-egy for the materials collected,what proportion of recovered cloth-ing is ultimately discarded and how the scheme fits with other sustaina-bility initiatives the company may have in place.H&M reveals that the main prob-lem it faces when ramping up the use of recycled fibr
199、es for new cloth-ing concerns the lack of recycling solutions that can work on an industrial scale.To address this,its investing in new tech with its tex-tile recycling partner,Renewcell.Some of the mistrust surrounding such schemes is also linked to the publics general perceptions of the company co
200、ncerned.Understanda-bly,consumers are more sceptical about fast-fashion brands sustain-ability initiatives.The scheme operated by Marks&Spencer,on the other hand,has attracted little scrutiny,as this long-established household name still commands a lot of trust.M&S established its so-called Plan A s
201、ustainability programme back in 2007,with the aim of becoming a net-zero business across its entire supply chain and product range by 2040.As part of this,it became the first big UK garment retailer to enter a national clothing recycling partnership.It has since added rental collaborations,reuse-and
202、-recycle capsule collections and resale partnerships to its offering.Carmel McQuaid,head of sustain-able business at M&S,stresses that transparency is paramount if firms are to earn and maintain the trust of wary consumers.“Through our Family Matters Index report,we know that more than a third of co
203、nsumers consider the climate crisis when purchasing clothes,”she says.“But rental,re-sale and repair programmes are simply not viable if they dont have quality at their core.”Another trusted high-street re-tailer,the John Lewis Partnership,has also been dipping its toes into the circular economy.But
204、 George Barrett,the firms sustainability and ethics manager,acknowledges that its work here is just starting.“Our customers and partners are pushing us to provide accessible and affordable solutions in this space,”he says.“Theres more that we can and will do.That includes building on our range of pr
205、e-loved and refurbished products,making rental as user-friendly as possible and providing repair services across our product ranges.”There is always the possibility that legislation will accelerate the industrys efforts.While the UK has yet to make a definitive move in this respect,France has introd
206、uced la-belling laws that will oblige brands to disclose information about the environmental footprints of their products.This will include data on repairability,recyclability,recycled material content,traceability and the presence of plastics.“This is about building a narrative with customers,devel
207、oping auth-enticity,trust and a sustainability strategy that aligns with your brand values,”Brealey says.Given that sustainability will not be going out of fashion any time soon,brands and retailers that are establishing themselves as genuine leaders in these areas seem far better placed than the la
208、ggards and greenwashers to thrive in the med-ium to long term.Reuse,repair and recycle schemes can helpto reduce the rag trades massive carbonfootprint,but greenwash-wary consumersneed to be convinced that suchinitiatives arent a passing fad Why fashions three Rs are a difficult sellEmily SearesWe h
209、ave seen way too much greenwashing from some of these guys,who are obviously just trying to increase footfall.The consumer is not stupidThredUp,GlobalData,2021OLDER CONSUMERS ARE UNCONVINCED BY RESALEShare of consumers willing to buy resale apparel worldwide,by generationS U S TA I N A B I L I T YIs
210、vetikd via istockGen Z42%Millennials42%Gen X32%Baby boomers16%Commercial featureast July,the state of Colorado introduced a retail delivery fee,levying$0.27 on every order delivered by a motor vehicle if an item included in the order is also sub-ject to the Colorado sales tax.Earlier this year,Minne
211、sota followed suit,enacting its own retail delivery fee.It was a simple change but one that hinted at the vast network tax com-plexities that sit beneath the surface of an evolving and increasingly con-nected marketplace.As consumers flock towards digital platforms to buy products and ser-vices,reta
212、ilers across sectors are gain-ing a valuable foothold in new global markets and basking in boosted sales.But while business booms,merchants and marketplaces must get to grips with the shifting tax rules that follow-and quickly.“What Minnesota and Colorado,and eventually other states and other countr
213、ies around the world,are doing is implementing legislation and taxes on delivery fees because of the boom in ecommerce,”says Sacha Wilson,senior director at Avalara.“Ultimately,every country will have its own new regulations,so if you want to be effi-cient as a retail business,you need to be on top
214、of tax compliance from the outset,”he continues.Shoppers and retailers are adapting their practices in step with the oppor-tunities that ecommerce provides,and regulation should remain a critical con-sideration.The trend towards subscrip-tion commerce is an example of this.Along with the promise of
215、recurring rev-enue,these models are bound up in an entirely new set of sales tax compliance requirements,particularly for retailers that sell subscriptions overseas.NFTs and delivery fees:how to walk the tax compliance tightrope Tax compliance is never an easy task for retailers.As they bump up agai
216、nst new markets,new models and new technology,getting it right is getting complicated“If you sell digital goods,doing so via a subscription model can change those products into an ongoing digital service,which alters the tax rules surrounding them,”Wilson explains.“Resolving tax issues after the eve
217、nt can be incredibly expensive,leaving you paying backdated taxes,and,potentially,penalties and interest as well.”Changing tax policies are an inevi-table response to growing trends and technological developments.And the expanding metaverse is no exception.The sale of non-fungible tokens(NFTs),which
218、 can range from digital artwork to virtual fashion items,triggered a host of questions about the logistics of taxing in a virtual plain.Last year,Washington and Pennsylvania became the first US states to tax the sale of NFTs.Other states are likely to join the club in 2023.Some NFT creators have beg
219、un adding physical goods as well as virtual goods and services to their NFT offer-ings,adding another layer of complex-ity to decisions around which transac-tions would be subject to sales and use tax and how the jurisdiction of each order is defined.The precedents set in this new arena have ramific
220、ations beyond the NFT market.Many traditional retailers,including luxury brands,are adopting metaverse technology to boost sales,using augmented reality(AR)to allow customers to try on luxury fashion items virtually.Even Cartier has joined the metaverse,creating a virtual timeline of its prestigious
221、 Tank watch,from its 1917 launch to the present-day Tank Franaise,which people can try on via Snapchat-powered AR.“Taxing the metaverse is still a grey area,but consultations are taking place among governments,and there is no doubt that change is coming,”says Wilson.“As retailers incorporate more of
222、 these new world technologies in their sales strategies,it is something they need to be aware of.”The global trend toward more vig-orous tax enforcement has increased the need to focus on mitigating com-pliance risks.Wilson points to the value of automated tools and tax solutions,including those off
223、ered by Avalara,that prevent additional tax compliance,duties,and cross-bor-der tariffs from becoming barriers to global business growth.“Successful businesses are con-stantly testing the market,and there are so many new channels and tech-nologies to experiment with,”he says.“The metaverse is new,an
224、d its grow-ing in popularity.Brands are using 3D gaming platforms to engage with cus-tomers.But they need to be anticipat-ing changes in tax rates,rules and com-plexity.Its about being prepared.”For more information visit the metaverse is still a grey area,but consultations are taking place among go
225、vernments,and there is no doubt that change is comingR A C O N T E U R.N E TF U T U R E O F R E TA I L&EC O M M E R C E1514he so-called de-influencing trend is making corporate marketing teams around the world sit up and listen.It hap-pens when people take to social media and urge their followers no
226、t to buy certain goods.They may be doing so to promote cheaper,more sustainable alternatives to the products in question,highlight un-ethical practices by the brand mak-ing them or call out misleading advertising by another influencer.The practice,occurring mostly on Instagram,TikTok and YouTube,is
227、gaining significant traction.Mentions of de-influencing on these networks increased by more than 3,000%between 1 January and 10 March,according to research con-ducted by social analytics platform Brandwatch.Common associated hashtags include#whatnottobuy,#overconsumption and#antihaul.The internet ha
228、s democratised access to information(and misinfor-mation)about brands and products.Its spread on social media is beyond the control of companies,so it can be a problem for them.Traditionally,the big beasts of the creator economy have wielded their influence on their millions of follow-ers to help co
229、mpanies market their wares.The growing popularity of channels with algorithms that fav-our short video content has proved useful for the success of in-app shopping features.More than a quarter of social media users have bought a product based on an in-fluencers recommendation online,according to res
230、earch by Kantar.But you dont need to have mil-lions of followers to be influential.Micro-influencers defined as those with between 1,000 and 100,000 fol-lowers have become increasingly valuable to brands.Research by YPulse has found that 58%of mil-lennial and gen-Z consumers dont consider the size o
231、f an influencers following as a factor in their trust-worthiness.(The level of engage-ment that micro-influencers can command does seem to be plat-form-dependent their engagement rates on TikTok stood at 17.9%last year,versus 3.9%on Instagram and only 1.6%on YouTube,according to Influencer Marketing
232、 Hub.)Content posted by ordinary shop-pers can also be hugely influential.Research by consumer experience platform Nosto indicates that 79%of viewers find that such material has a strong effect on their purch-asing decisions,whereas only 9%cite content published by influenc-ers asimpactful.Faced wit
233、h the de-influencing trend,how should brands and retail-ers change their approach to influ-encer marketing and social media engagement generally?Melanie Kentish is managing partner of Dentsu Creative UKs tal-ent and influencer division,Gleam Futures.She believes that“the most successful partnerships
234、 come when there are shared values between the influencer and the brand.Integrity is vital they should authentically love your offerings.”Kentish points out that brands campaigns tend to be most success-ful when they give influencers total freedom to talk honestly,even if that means they arent total
235、ly positive about a given product.As the cost-of-living crisis contin-ues,such authenticity has become even more important to consumers,especially in the fashion and beauty sectors.Last year,YouGov found that 40%of UK adults had reduced or even stopped spending on clothes as inflation hit a 40-year
236、high.In putting the fast-fashion seg-ments colossal environmental cost under the spotlight,de-influencing has harmed the sales of key players such as Shein and Boohoo.But the other end of the market has not been immune to its effects,with luxury brands such as Olaplex,Dior Beauty and Kim Kardashians
237、 Skims com-ing in for criticism questioning the value for money they provide.“As a brand,you cant control the narrative nor should you want to,”stresses a spokesperson for cosmet-ics retailer Lush.“For us,its all about listening to what our commu-nity is saying.”Kentish agrees that companies should
238、treat critical reviews as valu-able information.“Take on board any feedback about your branding,price or product,”she says,advising firms to open direct lines of commu-nication with consumers offering constructive criticism.In extreme cases such as the cancellation of a product online,a companys sal
239、es,product and social media teams must work together quickly to formulate a response.Thats the advice of Imogen Coles,UK influence lead at advertising giant Ogilvy.“Reactions to de-influencing at any level should always be an inte-grated effort.Its the reason that our corporate teams sit alongside o
240、ur consumer and influence depart-ments,”she says.As a trend,de-influencing may actually be beneficial for many brands,especially when its promot-ing responsible consumption.A sentiment analysis by Brandwatch has found that 22%of online con-versations about de-influencing indicated consumers happines
241、s at being given the chance to become more informed and sustainable with their purchasing decisions.Using the clout of influencers to encourage people to adopt more sus-tainable lifestyles is important,says Besma Whayeb,director of Ethical Influencers,a community of more than 1,200 influencers in 65
242、 coun-tries.She also keeps a blog called Curiously Conscious,which covers“sustainable fashion,clean beauty,low-impact lifestyle and more”.Whayeb,who has gained 26,000 social media followers since 2014,argues that an influencer has“a huge responsibility to their audi-ence and,wider than that,to peopl
243、e and the planet”.On fashion speci-fically,Besma believes its crucial to scrutinise brands employment practices and the ecological effects of their production processes.“To constantly push buying new clothes,especially during the cost-of-living crisis,is inauthentic,”she says.“I like to focus on cir
244、cularity,interspersing content with reviews focusing on a brands supply chain.”In 2021,Lush made the bold deci-sion to step away from Instagram,and TikTok(it remains active on YouTube).A spokesperson explains:“We dont want customers to have to come to meet us in an unsafe place,but we still work wit
245、h influencers and have gotten creative in how we approach that.”Today,the company prioritises in-person events and online com-munication formats such as pod-casts over traditional influencer marketing on social media.It has also established a presence in the virtual world of Decentraland.Lushs resea
246、rch into digital en-gagement with The Future Labora-tory has found that 70%of adults in the UK,the US and Japan think that a brand should leave a social net-work if it considers that platform to be unethical.Moreover,62%respect brands that care more about a social networks ethics than the number of
247、people they can reach on it.Brands and retailers need to focus on authenticity and value align-ment if they are to remain attuned to their customers needs and stay flexible in their approach to influ-encer partnerships and social media marketing in general.Developing a customer-centric feedback proc
248、ess that engages their audiences will prove valuable.Messaging focused on the responsi-ble production and consumption of products can also help instil trust and attract eco-conscious consum-ers.Most crucially,companies can navigate the complexities of influ-encing and,indeed,de-influencing by rememb
249、ering that social net-works offer a space for communities,constructive conversations and pow-erful calls for collect-ive change.Amy NguyenAs a brand,you cant control thenarrative nor should youwant to.For us,its all about listening to what our community is sayingTo constantly push buying new clothes
250、,especially during the cost-of-living crisis,is inauthenticThe backlash against glib influencer marketing and the conspicuous consumption it promotes is well under way.How can brands and retailers ensure that they dont gettargeted for criticism?Insta karma the rise of de-influencer marketingS O C I
251、A L M E D I ABrandwatch,2023SOCIAL SHOPPERS DONT EXACTLY LOVE THE DE-INFLUENCERSResponses of consumers using social media for shopping purposes when asked to name their overriding sentiment about the de-influencing movementT Klaus Vedfelt via Getty Images17%Disgust41%Anger22%Happiness16%Sadness1%Sur
252、prise3%FearCommercial featurevery day were bombarded with messages about the future.Will AI make us obso-lete?Is the high street dead?With new possibilities for person-alisation,advancements in AI,and an ever-expanding metaverse to play with,retailers can often become con-sumed with determining whic
253、h trends will take off.But while future gazing has its merits,customer data and insights sit at the heart of all future developments.Or at least they should.Not taking time to understand your customers could make placing a bet on which trends will come to fruition a doomed lot-tery.So why do retaile
254、rs chase trends rather than data?“Many retailers are desperate to find applications for trendy technologies often through fear of missing out,”says Rachel Smith,experience director at ecommerce consultancy Wunderman Thompson Commerce&Technology.“But its not always clear what prob-lems these technolo
255、gies solve for cus-tomers and how best to apply them,”she continues.Companies could waste millions and lose customers by following trends without first asking two very important questions:what do my customers want now,and how will this impact the future?Smith believes that building up cru-cial custo
256、mer insights now is the best route to identifying the most pertinent trends for the future.Brands and retail-ers dont just need to understand what is possible using AI or the metaverse but need to ask themselves whether these trends are truly in step with consumer demand today and tomorrow.Todays cu
257、stomers set tomorrows trends.Are retailers listening?Innovations in ecommerce and retail might capture the collective imagination,but cutting-edge trends can cut both ways if customer insights are overlookedAlthough this might seem like the sensible approach,accord-ing to research from Wunderman Tho
258、mpson,most buyers(52%)dont believe retailers understand the cus-tomer journey.And the ramifications can be huge,with 58%saying they wouldnt shop online with a retailer that failed to meet their expectations.Bringing customers cross-channel experiences to life can be perceived as a challenge.But Smit
259、h argues that one of the simplest and most effective tools for illustrating what customers endure is a customer journey or expe-rience map.This map provides a visual rep-resentation of the customers end-to-end experience over time and draws together quantitative and qualitative insights.“Theyre grea
260、t for identifying frictions and opportunities and align-ing organisations around a common goal,especially when the responsibil-ities span multiple functions in siloed organisations,”she explains.While web metrics like cost per click and average order value(AOV)remain valid,taking a broader look at c
261、ustomer experience can deliver even deeper insights.“We need a complete shift away from understanding sales from a siloed business perspective to under-standing the entire customer journey from the consumers perspective and how this can and will affect business performance,”says Smith.Regular qualit
262、ative research can be a critical competitive differentiator.“These insights can help you under-stand customer missions,mindsets,and the why behind certain behav-iours,like why people drop out of the process at a particular point,what elements of the product description worked and didnt work,or why t
263、hey favour your competitor,”she explains.Investing time and effort in under-standing this is money well spent.And most importantly,organisations that implement change based on these insights often see an increase in key growth metrics of conversion,AOV,revenue and retention.But it shouldnt be a one-
264、and-done.“If your customer research was done pre-Covid,its of limited value because the world has changed so much,”says Smith.“Even if it was done six months ago,it wont reflect the changes were seeing because of the cost-of-living crisis.”This means that your future gazing could be built on insight
265、s that are no longer relevant.A retail reality check is in order.Before implementing AI,building stores in the metaverse,or even cre-ating a space-commerce strategy,businesses should ask their customers what they actually want and need.Smith concludes:“None of us can say for certain which future tre
266、nds will become the new normal in retail and ecommerce,”she says.“But if you understand your customers,youre better prepared and have probably already started planning for whatever may come next.”For more information visit wtcom.co/wtc-cxEMany retailers are desperate to find applications for trendy
267、technologies.But its not always clear what problems these technologies solve for customersR A C O N T E U R.N E TF U T U R E O F R E TA I L&EC O M M E R C E1716 If a customer needs tocall or email you beforecompleting an onlinepurchase,the problem inevitably lies with the website,not the shopperhere
268、 was a time when im-poverished students across the UK knew that posing as a customer in a shop or restaurant to record the warmth of the wel-come or the quality of the quail was a quick way to earn some cash.As retail moves online,mystery-shopper projects involving digital experiences,such as web ch
269、ats and online journey surveillance,are helping retailers to address their most complex customer-service challenges.What were once paper-based reports with undercover in-sights have been supplanted by end-to-end mystery-shopping soft-ware that provides objective,up-to-the-minute assessments.Retailer
270、s gain insights into overall service standards,real examples of both good and bad practice and even recommendations to boost sales and enhance their digital presence.Teams of mystery shoppers im-personate customers to buy online,make complaints and engage with brands via social media.They test as mu
271、ch of the customer journey as possible,from web page navigation and email enquiries to fulfilment times and the returns process.“Physical mystery shopping was about auditing the use of in-store merchandising or the sincerity of the sales assistants smile.But todays initiatives take a multi-channel a
272、pproach across the entire shopping experience,”says Dave Pattman,MD,customer experience practice,at Gobeyond Partners.“Rating an online sale is reasonably straightforward.But tracking what happens after the purchase,par-ticularly if a shopper wants to re-turn an item or make a complaint,offers real
273、insights into how your business succeeds or fails in turn-ing a new customer into a lifelong advocate for the brand.”Poor-performing employees were once able to challenge the findings shopping projects,they can provide insights that might explain why a retailers sales processes may not always go to
274、plan.The quality of the firms website may need atten-tion,rather than the professional-ism of its staff,for instance.“When it comes to muddled or in-adequate information on websites,I still hear clients complaining that customers are behaving illogically or arent doing it right,”Pattman says.“But,if
275、 a customer needs to call or email you before completing an online purchase which reduces your profit per sale we find that the problem inevitably lies with the website,not the shopper.”Whether its a sketchy FAQs sec-tion or lack of transparency around delivery times,mystery-shopping programmes high
276、light why cus-tomers“dont always behave as marketers would like them to”and can also offer practical solutions.A typical provider of mystery-shopping services will charge about 19 for a phone call and 99 for a video recording.For large retailers,these projects might track 40,000 online purchases and
277、 2,000 tele-phone interactions.But,while mystery-shopping pro-grammes arent necessarily cheap,the usual alternative is free cus-tomer reviews.Given the brevity and anecdotal nature of such mat-erial,Tamsin Palmer,operations manager at Customerwise,thinks it would be a mistake to rely on it.“Social m
278、edia reviews tend to rate a businesss customer service as either fantastic or lousy.There is often very little in between,”she observes,adding that mystery shopping provides a far more nuanced assessment.“Its compiled by experts and its factual,detailed and impartial,”Palmer says.“Its recommendation
279、s are more pertinent than a hasty review by a customer,which might have been fired off in a fit of enthu-siasm or pique.”Theres no doubt that customer reviews can draw attention to a business for good or ill.But to drive improvements in customer service or employee behaviour,a one-star or five-star
280、rating can leave firms craving more details.“Customers who leave online re-views wont necessarily tell you that they called to make a sales enquiry but no one bothered to call them back,”observes Janet Wood,founder and director of The Silent Customer.“And those reviews wont inform you that a custome
281、r would have signed up to your social media platforms if these had been made available to them.Mystery shop-ping does all of that and more.Andit can uncover missed revenue opportunities and motivate change in the workforce too.”Some projects focus on key demo-graphic groups on the full website journ
282、ey,from finding the website to completing a transaction.In most cases,though,under-cover shopping projects will track phone interactions still a favoured method for shoppers who want to register a complaint and social media channels.But packages are based on the needs of the organisa-tion and many w
283、ill also audit email communications and video.Some programmes will run for as long as three years,usually when a retailer wants to benchmark long-term behavioural changes among its employees.On the other hand,one-off projects designed to high-light a single facet of CX live chats,for instance may ru
284、n for just a few weeks.Mystery shopping also enables retailers to benchmark their prac-tices against those of their rivals.It is the quest for competitor intelli-gence that prompts many retailers to try mystery shopping.Palmer thinks she knows why.“The explosion of retail channels is making shoppers
285、 behave in new ways.It is vital for retailers to keep up with their changing behaviour and expectations of a brand or in-dustry,”she says.Ultimately,if you can see how your competitors are dealing with customer queries and complaints online and how that benefits or detracts from their overall financ
286、ial performance you might decide to modify and adjust your own proto-cols accordingly.Far from its origins in personal store visits,undercover shopping is using remote videoand audio recordings to reveal problems that could be harming the shopping experience for online customersNo hiding place for p
287、oor serviceVirginia MatthewsHGS,FINN Partners,2022RETAILERS ARE USING NUMEROUS MEASURES TO GAUGE THE QUALITY OF THE CUSTOMER EXPERIENCE THEY OFFERResponses of retail C-suite members in the US,UK,Canada and Australia when asked to rate the most important metrics for assessing their CX efforts of face
288、-to-face mystery shoppers,but digital programmes have made mystery-shopping insights more objective.The widespread use of covert video and audio which can include recordings of employees working remotely leaves impolite or ill-informed team members with nowhere to hide.Emma Carmody is the owner and
289、managing director of Xperior,a social media monitoring company that helps companies to improve their customer service.She points to the fact that retailers subject to certain regulatory standards are obliged to monitor employees per-formance.As an example,she says that it would have been“unthinka-bl
290、e”to buy a car through a click-and-collect service 10 years ago,but this has become routine ever since the Covid lockdowns.“With negotiations often conduc-ted online or over the telephone,car dealerships are using covert audio and video recording to ensure that sales people arent cutting corners on
291、matters such as affordability simply because the customer isnt physically present,”Carmody says.Staff agree to ad-hoc surveillance before signing their employment contracts.Evidence of any bad ser-vice can be invaluable in identifying gaps in training.The use of mystery shoppers is often highly unpo
292、pular among employees,but Carmody believes that offering rewards for good service is more effective than shaming poor performers.While in-house training is the primary focus for many mystery-C U S T O M E R E X P E R I E N C ET75%Better margins89%Customer retention ratesUK FIRMS THAT WORK TO IMPROVE
293、 THEIR CUSTOMER EXPERIENCE COULD SEE30%Greater lifetime values of customersKPMG,2022he past year has been one of the most challenging for UK ecommerce businesses in recent memory.Putins war in Ukraine has pushed up operating costs and made consumers cut their spending.A recession looms,albeit a shal
294、lower one than previously feared,but things are likely to get worse before they get better.Yet innovations in etail tech con-tinue apace and the UKs online shopping market remains one of the most dynamic in the world.So what trends can retailers expect to see over the next 18 months and how should t
295、hey prepare for these?One of the biggest challenges will be providing the best customer ex-perience.Never has understanding customers been more important to help retailers personalise their of-ferings.Yet new rules on the collec-tion of third-party data have made the job harder while pushing up the
296、cost of acquiring customers.Its forcing etailers to find alterna-tive solutions,including the greater use of first-party data.Encourag-ingly,there will be many new oppor-tunities to gather such material in 2023-24 as consumers return to the high street and retailers develop multichannel platforms.Br
297、icks-and-mortar shops will be-come inc reasingly important as they are repurposed into experien-tial spaces that showcase a retailers products and its brand,rather than simply shifting units.Consumers are also likely to do more of their shopping on social media,which will open up new data touchpoint
298、s.“A single-customer view is becom-ing more important,”says Graeme Howe,director of eCommerce Expo,the UKs largest ecommerce event,which will take place at the ExCeL London centre on 27-28 September.“Its about understanding the cus-tomer journey from start to finish.Did a given shopper find you on s
299、ocial and buy in a store?Or was it some marketing content that led them to your website?If you under-stand how a customer is engaging with you,it greatly enhances your ability to influence the process.”Leading retailers have traditional-ly worked in silos,with digital teams having few interactions w
300、ith divi-sions such as sales and marketing.But most are breaking down these barriers,enabling them to capitalise on the data they have.Continuing this will be vital as the economic outlook darkens.While customer experience may take centre stage in 2023-24,retail-ers cant ignore other trends likely t
301、o shape ecommerce over the com-ing years.For example,there is growing emphasis on brand creden-tials,including customer reviews.Sustainability remains high on the agenda too as firms work to meet the UNs climate goals.Online fashion companies have been forced to re-think their production processes,f
302、or example,and weve seen growth in second-hand and rental markets.New tech will continue to shape the landscape,especially AI,aug-mented reality and the metaverse.But Howe warns brands not to chase every shiny new innovation before getting the basics right.“Take mobile,which accounts for 70%of UK re
303、tail transactions,”he says.“Retailers must refine their apps and make payment processes frictionless.You also have the prob-lem of online returns,which are be-coming hugely expensive.Expect to see more returns policies being tightened over the coming months.”These topics and more will be discussed a
304、t the expo.It will enable attendees to experience the latest inecommerce technology and hear visionary speakers discussing the issues of the day.“In challenging times,its vital to share best practice,”Howe says.“With more than 300 exhibitors and two days of seminars,this expo will be focused on prep
305、aring the ind-ustry for a potentially bumpy but exciting period of change.”Visit ecommerceexpo.co.uk to register your interest in attending the event,which is freeto retailers and brandsIts about understanding the customer journey fromstart to finishI N S I G H TTGraeme HoweDirector,eCommerce ExpoGr
306、aeme Howe,director of the eCommerce Expo,explains why retailers have to remain nimble astheir costs keep rising and consumers cut backCustomer acquisition Revenue growthBrand recognitionTalent attraction 8%9%14%23%R A C O N T E U R.N E TF U T U R E O F R E TA I L&EC O M M E R C E1918D E PA R T M E N
307、 T S T O R E SGoing down:the destabilising demise of the town-centre department storesimple walk through the town centre of any large UK town will show that times are tough for department stores.Many stand shuttered and empty.The volume of sales at dep-artment stores fell by 11%between January 2020
308、and January 2023,according to the Office for National Statistics,but the rot had started long before the Covid crisis.Debenhams,which was once the largest department store chain in the UK,closed its last high-street shops in May 2021.The same month also accounted for Jenners the Harrods of the North
309、 in Edinburgh,along with other shops in the Frasers Group.Even John Lewis,long the beacon of value-conscious middle-class aspiration,has been forced to contemplate selling a minority stake in the business,which would put an end to its much-admired 100%employee-owned structure.But why should anyone c
310、are about department stores?By definition,they sell almost everything under one roof from haberdashery and kitchenware to millinery and soft furnishings but online shops and specialist stores will often offer a greater selection at a lower price.with plentiful free parking and a wide range of stores
311、 had become particularly popular with wealthy young aspirational consumers.In 2000,Ipsos Mori reported that the high street appealed most to the“traditional working classes”,while out-of-town centres were the place for more“prestige-conscious and materialistic shoppers”.That might not have mattered
312、for town-centre department stores,ex-cept that the purchasing power of their predominantly working-class clientele was shrinking.When Are You Being Served?,the sitcom set in the fictional department store Grace Brothers,was at the peak of its popu-larity in 1977,the median disposable household incom
313、e in the UK was 10.3%lower than the mean average(a figure skewed upwards by the super-rich).By 2021,the difference had increased to 18%,indicating that the gap between rich and poor had widened significantly.This factor explains why depart-ment stores at the top end of the market have been largely u
314、ntouched by the problems affecting the rest of the sector.“They have a resolute focus on lux-ury and style,often with a singular view of the world and a customer base thats largely immune to eco-nomic woes,”Cross notes.He adds that high-end players such as Harrods,Fortnum&Mason,Harvey Nichols and Se
315、lfridges have“generally flourished”in recent years,despite the pandemic.“All of this has clearly been far harder for regional department stores.”The problems that have come with the decline of regional high streets are not lost on the government.Its“Build back better high streets”campaign aims to en
316、able the“evolu-tion of high streets into thriving places to work,visit and live”.But cash-strapped local authori-ties around the country will have to do most of the work to achieve such an outcome.So what can they do?The genteel spa town of Harrogate,North Yorkshire,lost its Debenhams in 2021,althou
317、gh it still has a dep-artment store left.This has gone through several hands over the years,but its current owner is Hoop-ers.The chain was established in 1982 a time when planning authori-ties were busy approving out-of-town developments.Hoopers has four branches remaining,having left five other to
318、wns around England.The challenge is clear to Richard Cooper,leader of Harrogate Borough that it would be“complex,distortive and would not raise sufficient reve-nue to fund the scale of business rate relief stakeholders have called for”.Instead,there will be a“generous”revaluation package in April th
319、at cuts total business rates paid by the retail sector by roughly 20%while increasing those of large distribu-tion warehouses by 27%.The national Covid lockdowns of 2020-21 were a fatal blow to many regional department stores,but the sectors demise had been decades in the making.The roots of its tro
320、ubles can be traced back half a century.The first blow actually seemed to be benign,if not a boon.From the early 1970s,local authorities encouraged the construction of out-of-town shopping centres that brought in ad-ditional business rates and enabled them to pedestrianise town centres.John Lewis,a
321、stalwart of the high street under various local names since the 1930s,opened its first out-of-town store in 1972.As more people bought their own car 45%of households in the UK had one by 1975,according to the RAC driving to out-of-town shop-ping centres became fashionable.But,because most regular sh
322、opping was done by women who tended not to be the driver in a household,the high street still reigned supreme.That would change as vehicle own-ership increased and more women became drivers.By 1981,for in-stance,15%of British households owned more than one vehicle.By 2016,the year in which a third o
323、f households had two vehicles or more,out-of-town shopping centres Debenhams closed its final department stores in May 2021.The former flagship store on Oxford Street is being redeveloped into sustainable office and retail space.The loss of a grand emporium from the high street often has a grievous
324、domino effect on atowns retail economy.Is the ailing regional department store sector beyond redemption?Ouida TaaffeThe closure of a department store in regional town is a blow that knocks outthe two front teeth ofa high streetCouncil.“We want to ensure that our high streets are prosperous in the fu
325、ture and we need to look at new ways of achieving that,”he says.“They need to be attractive and inviting,providing something you cant get athome by looking on your laptop,tablet or smartphone.”Knaresborough and Ripon are two towns in the borough that host weekly markets offering“unique and homemade
326、produce”,he adds,and theres a monthly farmers mar-ket in Harrogate itself.“Weve recently partnered with anartisan market that operates reg-ularly in our picturesque Valley Gardens and also the grounds of Knaresborough Castle.Again,this provides something thats unique and unobtainable online,which ca
327、n complement what businesses on the high street offer,”Cooper says.Cross points out that a few town centres have held up well.He attrib-utes the decline of others to reasons including a lacklustre response from local authorities that have failed to appreciate the shifts in consumer behaviour and“the
328、 pivotal role the high street plays in supporting the local community”.Harrogate Borough Council,by contrast,is well aware of such fac-tors.With these in mind,it has set up a destination management organi-sation for the district.This works with several partners to host events,attract visitors and co
329、urt investors.The overall aim,Cooper says,is“to create a strong local economy for businesses and residents”.That is,of course,easier said than done.Regional department stores were often big employers.Beatties in Wolverhampton,for instance,once employed 800 people.With its beauty parlour,hair salon a
330、nd cafs,it was a real focal point.Beatties closed its doors for the last time in 2020.Most of the grand art deco building it occupied is due to be converted into flats,with some space retained for retail units.Stephen Simkins,deputy leader of the City of Wolverhampton Council,said in August 2021:“We
331、 need to ensure that a building of this im-portance is brought back into use.We have been working closely with the owners to ensure that they have the support needed to bring this scheme forward.”As this special report goes to press,the planned redevelopment has still not started.Part of the delay m
332、ay bedown to Wolverhamptons wider plans in line with Westminsters levelling-up policies.The city is one of the governments first two so-called pathfinder locations and it is working with the Department for Levelling Up,Housing and Commu-nities on three main investment plans mixing residential,leisur
333、e and commercial developments.Yet there may be a light at the end of the tunnel for the few town-centre department stores that are hanging on in there.Since the end of the Covid crisis,people seem to have been rediscovering the high street in attractive tourist destinations such as Harrogate,at least.“Figures released in mid-March show that visitors to our district are making a greater economic im