Could New Technology be Saving the Retail Industry?

Could New Technology be Saving the Retail Industry? The past few years have been tough for retailers but there is a growing sense of positivity in the sector. This infographic casts an eye back over the recent turmoil and investigates how new technology is aiding the industry in its recovery. Three Year Trend for Retail Failures CLOSED Companies Failing Stores Affected Employees Affected 2011 31 2,469 24,025 2012 54 3,951 48,142 2013 47 2,469 24,940 (Source: The Centre for Retail Research) Casualties (hmv) OCKROSTER JESSOPS The Problem The Problem The Problem Increasing competition from online flrms streaming flms over the internet Sales of CDs and Improving quality of DVDS undermined by competition from online retailers and cameras on smart phones means people think less about buying a dedicated camera. and smart TV. music downloads. The Outcome The Outcome The Outcome 528 82 187 stores closed stores closed stores closed 4,190 jobs lost 1,623 1,500 jobs lost jobs lost The High Street An estimated 1 in 7 shops are vacant across the UK TO LET 1 3.4% (Source: The Guardian) Footfall was up 3.4% in 2013 on 2012 showing a marginal return of customers to the high street How consumer spend might change across key sectors in 2014 illnil 78.6% 69.0% 65.5% 62.1% 58.6% 48.3% 44.8% 44.4% 37.9% Clothing Food Homewares DIY Furniture Flooring Electricals Beauty Television Entertainment, DIY, electricals and beauty are growth sectors Chart shows how retailers think consumers spend will change for key retail sectors in 2014 compared to 2013 (Source: TLT Solicitors) Online Retail 16% like-for-like growth for the online retail market in 2013 M-commerce Mobile retail is influencing market growth - twice as much spent on mobile devices in December 2013 £1.45 Billion E3 Billion compared to the previous year (Source: Capgemini) Dec 2012 Dec 2013 Technology in Retail The giant leaps in technology over the past few years have given rise to a host of opportunities for retailers to take advantage of. All retailers are confident that technology can help growth 81.3% 100% Say technology has helped improve the efficiency of Are confident technology will help businesses the business grow 43.8% Believe it is important to be an early adopter of new technologies Chart shows how strongly retailers agree with these various statements on technology (Source: TLT Solicitors) Mobile payments Near Field Communication (NFC) payment terminals allow retailers to process payments with the wave of a bank card or smartphone. VIf you are looking to upgrade your terminals there is little cost difference between terminals with or without the NFC function V Mobile payments in retail is set to grow hugely in 2014 with the launch of the new mobile payment app called Zapp in Autumn Location-based marketing Location based technology can be used to pinpoint a consumers location and provide location-specific advertisements on their mobile devices. SALE • 70% of UK customers welcome location 25% based commercial messages that they have 50% permitted (Source: GI Insight) • 58% happy to receive if strong relationship ie. loyalty/ membership (Source: M&C Report) • 59% personalising offers matter FREE (Source: M&C Report) Click and Collect For online shoppers who prefer not to wait for their order, or pay extra for home delivery, click and collect is an additional service that retailers can offer to enhance the customer experience. Collect+ is a recent innovation that allows retailers of any size, from online giants to start-ups to launch their own click and collect service by delivering online purchases to over 5,250 local corner shops. The orders can also be returned to retailers in the same way. Check out their website http://www.collectplus.co.uk/selling-online/ 5,250 newsagents Evidently the retail industry is starting to recover but competition is still rife. Maintaining a competitive edge in retail is hugely important. This can be achieved through the adoption of new technologies and of course from reviewing and implementing cost reduction strategies to help improve the bottom line. ReSolve has access to a variety of funding sources for retail businesses. ReSolve can recommend the most appropriate for your company and help to structure and negotiate the facilities. Cedar Dean is the UK's leading commercial lease restructuring specialist. They have a proven track record in achieving significant cost reductions in the retail sector resulting in real business changing performance. For more information on these respective services, please speak with a specialist team below for a free, no obligation discussion. www.resolvegroupuk.com 020 7702 9775 www.cedardean.com 0207100 6013 RE SOLVE cedardean commercidl proporty rostructuring