![\"Retail](\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\")
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![\"How](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2023\/06\/Copy-of-Product-design.png\" "\\"How")
<\/div>\nWith the end to the cost-of-living crisis nowhere in sight,<\/span> the consumer is becoming ever-more <\/span>cost-conscious, sustainably-aware and tech-savvy.<\/span><\/p>\n Retail giant\u2019s like Boots, Clarks, M&S and Next are paying close attention to the shifting landscape and altering what they do to stay relevant for the fast-changing shopper.\u00a0<\/span><\/p>\n \u201cWe have to be in the right place for our customer \u2013 whether it\u2019s physical bricks and mortar, online, Instagram, metaverse \u2013 we have to be where our customer wants us to be,\u201d says Clarks chief information officer Simon Clarke at Retail Gazette\u2019s Future Consumer Debate last month.<\/span><\/p>\n The metaverse is high on Clarks\u2019 agenda. The footwear retailer\u00a0became one of the first high street brands to make its metaverse debut when it launched on Roblox last year.<\/span><\/p>\n One year on and the footwear retailer teamed up with Empire Music in May to hold a concert with afrobeats artist Fireboy DML.<\/span><\/p>\n Clarke says the metaverse has been \u201chugely successful for us as a brand\u201d, noting that the number of active players topped nine million last month.<\/span><\/p>\n It has helped to introduce the retailer to new customers and improve the brand experience, he says.<\/span><\/p>\n \u201cWe want to bring the brand along and keep it relevant,\u201d Clarke explains, adding that most people were first introduced to the footwear brand when they were getting new school shoes.<\/span><\/p>\n However, despite embracing the metaverse, the retailer is not yet trading through the platform.<\/span><\/p>\n While Clarke is a great believer in the metaverse, Christine Kitching \u2013 a senior executive at Ben Sherman owner Marquee Brands \u2013 says the group\u2019s debut was a damp squib.<\/span><\/p>\n \u201cWe had some good press but [the metaverse] was not a good investment for us.\u201d<\/span><\/p>\n \u201cA lot of money was pumped into it and we got some clicks\u201d but it was an \u201cultimate flop\u201d, she says.<\/span><\/p>\n Similarly, senior vice president at THG Ingenuity Herculano Rodrigues says the retail group has \u201ctested and played around with the metaverse\u201d but unlike Clarks, it\u2019s not a key part of the strategy.<\/span><\/p>\n \u201cDo we see [the metaverse] as a very important channel for our growth? Probably not.\u201d<\/span><\/p>\n \u201cIn terms of priorities and where we want to invest more, the metaverse is a little bit further down at the moment.\u201d<\/span><\/p>\n Another way retailers, such as Boots, Next and THG, are getting closer to its customers is through the use of data.<\/span><\/p>\n \u201cIt helps us inform many things, the first thing is establishing and identifying customers who have a propensity to buy beauty,\u201d says Next Beauty chief executive Amanda Scott commenting on the retailer\u2019s partnership with Google, which shares consumer data with the retailer.<\/span><\/p>\n \u201cWe can identify them and serve them personalised content on site, which is a big opportunity being a young part of the Next business.\u201d<\/span><\/p>\n Similarly, Boots director of consumer marketing Hollie McClellan says it collects data around product purchasing lifecycles, which has helped it to improve<\/span> <\/b>its onsite product recommendations.<\/span><\/p>\n THG has taken a similar approach, creating profiles for users based on their habits to create targeted campaigns.<\/span><\/p>\n \u201cWe obsess on data all the time,\u201d says Rodrigues. \u201cThe detail is where we are going to make profit so we have to focus continuously on it.\u201d<\/span><\/p>\n \u201cIt\u2019s about taking that data, understanding what is that persona, and the real golden nugget is getting the right context.<\/span><\/p>\n \u201cFor example, a MyProtein sports person who\u2019s trying to bulk up and a sports person who\u2019s trying to do a triathlon; they are two different sports persons [with] different purchasing traits.\u201d<\/span><\/p>\n Retail nowadays requires an omnichannel presence, with businesses engaging with customers through multiple digital and physical touchpoints.<\/span><\/p>\n \u201cWe\u2019re obsessed with it,\u201d says Sophie Lynch, head of online and omnichannel customer experience at M&S.<\/span><\/p>\n She points out that the customer does not see online and stores as differents parts of the business so they must be \u201creally seamless\u201d across all channels.<\/p>\n However, operating online comes with its own challenges, and as McClellan points out the competition is much fiercer.<\/p>\n \u201cIt\u2019s quite simply easier to shop with different brands online as you can instantly check prices across different retailers.<\/span><\/p>\n \u201cBeing the best on price online is really important and having the best promotions available,\u201d she says.<\/span><\/p>\n As loyalty becomes more fraught amid the cost-of-living crisis, retailers have stepped up their offers to retain and attract new customers.<\/p>\n \u201cWe\u2019ve worked really hard [on loyalty], particularly to up our ante and not take it for granted that we are a massive industry brand and have a big reputation,\u201d says Lynch.<\/span><\/p>\n \u201cPeople naturally enjoy our Sparks program. We really worked hard to curate some individual experiences \u2013 there\u2019s been a lot to test and learn.\u201d<\/span><\/p>\n Earlier this year, M&S trialed a premium paid-for loyalty tier, Sparks Plus, where members could receive perks worth over \u00a3200 on top of existing Sparks benefits for a yearly fee of \u00a3120.<\/p>\n Improving the omnichannel experience is vital for a lot of retailers but for Boots, the physical store remains \u201creally important\u201d in the customer journey.<\/p>\n \u201cThat in-store interaction [for the beauty customer] is really important because they don\u2019t trust the online tools we have at the moment,\u201d says McClellan.<\/span><\/p>\n She points out how in-store workers are \u201creally important\u201d for consultations and product recommendations.<\/span><\/p>\n The increasing rate of returns has become an ongoing bugbear for retailers. <\/span>In fact, despite a drop in online sales, retail returns surged 26% last year as consumers tightened their belts amid the cost-of-living crisis.<\/p>\n Jigsaw chief executive Beth Butterwick says the returns problem is \u201call about cause and effect\u201d and it can be solved by helping people to buy the right thing in the first place.<\/p>\n \u201cWe saw that \u2018Amazon effect\u2019 during Covid, where people had time at home and were ordered tons of Jigsaw product \u2013 and it was coming back. Things have died down since then.<\/span><\/p>\n \u201cWe have spent lots of time thinking about \u2018does the photo look realistic?\u2019, \u2018have we described the right fabric and fit to make her buy the right thing to begin with?\u2019.\u201d<\/span><\/p>\n As part of its quest to cut down on returns, Jigsaw launched a concierge service with Harper where shoppers can get a wide array of clothes sent to their house to try-on before purchasing.<\/p>\n \u201cOur average basket value is just under \u00a3200 online or \u00a3800 through the service and it\u2019s about 30% conversion rate.\u201d<\/span><\/p>\n Conversely, Immaculate Vegan \u2013 a sustainable fashion website \u2013 has disincentivised returns by introducing a charge to do so.<\/p>\n \u201cWe don\u2019t do free delivery or free returns,\u201d explains founder and chief executive Annick Ireland.<\/span><\/p>\n \u201cTo a degree, if we\u2019re not doing free delivery then people can\u2019t buy multiple sizes in one style and think they can send it back.<\/span><\/p>\n However, she says the retailer has included \u201cas much information as possible\u201d on product listings to encourage its shoppers to \u201cmake a considered purchase\u201d.<\/p>\n At Next, Scott says that as 80% of returns are done in store, the returns process has to be \u201creally slick\u201d.<\/p>\n \u201cWe\u2019ve generated cost efficiencies by using staff that work in stores during their quieter times to process the goods and absorb some of the costs that you would have paid for in your DC. <\/span><\/p>\n \u201cIt works brilliantly for fashion. Every unit of stock has a unique identifying code so that makes the whole process slick, in terms of handling it,\u201d she says.<\/span><\/p>\n Consumers have undoubtedly tightened their spending in the face of soaring bills and economic uncertainty, however, they are still environmentally conscious.<\/p>\n THG\u2019s Rodrigues says the weight between sustainability over price \u201cfluctuates\u201d regularly.<\/span><\/p>\n He points out the group has seen \u201cdouble digit growth\u201d of the eco delivery option available on its platforms, which ensures the last mile of the delivery is completed on foot, by bike or electric vehicle.<\/p>\n Butterwick stresses that retailers have \u201ca really big job to do on educating the customer on the value of price in quality\u201d.<\/span><\/p>\n She says that Jigsaw was built on slow fashion \u2013 curated collections based on quality finishes instead of pumping out multiple seasonal and trendy collections.<\/p>\n However, she acknowledges that most consumers do not view products with durability and cost per wear in mind.<\/p>\n She does say that the Jigsaw customer is now thinking more about \u201cwearing things in different ways\u201d rather than buying new outfits.<\/p>\n The fashion retailer has upped its training with store staff on both the concept of slow fashion and on how to give styling advice to encourage rewear.<\/p>\n It seems the future consumer isn\u2019t just encouraging retailers to rethink how they approach and engage customers, but also how they can improve their processes along the way.<\/p>\n![\"Clarks](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2023\/06\/k-cica-white-pink-lifestyle-group-square-consr-mtg-d2o4fg6k-2022-05-16.jpg\")
<\/p>\nGetting closer to the customer<\/b><\/h3>\n
Creating a seamless omnichannel experience<\/strong><\/h3>\n
![\"M&S\"](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2023\/05\/MS-leeds-1.jpg\")
<\/p>\n![\"Boots](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2023\/06\/dsc01443-scaled.jpg\")
<\/p>\nSolving the returns problem<\/strong><\/h3>\n
![\"Jigsaw\"](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2023\/06\/Jigsaw_fashion_shop-front_ST.jpg\")
<\/p>\n![\"Next\"](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2023\/06\/Shutterstock_157631879.jpg\")
<\/p>\nPrice vs sustainability<\/strong><\/h3>\n