Future Trends for Retail
Nine key trends and the technology that will
influence future consumers and shoppers
Alex Fennemore
Senior Planner
Haygarth
alex.f@haygarth.co.uk
@aphlex
www.haygarth.co.uk
The future is exciting…
But let’s not get too carried away.
There’s amazing stuff happening out there but
it’s important to recognise that the mass
market are not early adopters.
And whilst the cutting edge will be pushing
boundaries farther than ever before there will
still be a huge market for traditional retail
service.
High tech bad service is still bad service.
9 key trends
Oneline
Mobile
technology
Individualism
Transparency
Local community
“Retail-tainment”
Retail
technology Ethics &
environment
Self service
Advancements in mobile phones
Multimedia convergence has been talked about
for a number of years but the growth of
smartphones is accelerating this trend.
Devices are increasingly becoming multimedia
computers and future developments in their
capabilities will have a huge impact on retailers.
Shoppers can have instant access to a wealth
of information when they makeAugmented reality
a purchase
decision.
Augmented Reality on
phones
Such as price comparison and reviews, not just
what the retailer or brand are telling them.
Phones are not just purveyors of information but
also media touchpoints too, leading to a whole
host of targeted communications based on
behaviour and geo-location.
This will only increase as smartphones move
towards mass adoption. Holographic projections
Transparency
“Personal recommendations and consumer
opinions posted online are the most trusted forms
of advertising globally” Nielsen 2008
Transparency is the freedom of information. The
connected world has empowered consumers to
seek out information at the click of the mouse.
The transparency trend is a maturing theme that is
set to become more and more powerful.
With smartphones as the portable facilitator,
customers now expect to instantly find product
information, customer reviews and price
comparisons for all their purchases.
That’s retail-tainment
Retailers and brands are providing richer, more
entertaining consumer experiences to capture
customer attention.
As goods and services become commoditised and as
quality goods and top quality service becomes
expected, the way that retailers can differentiate
themselves is through staging events.
A company should use their services as a stage and
goods as props to engage individual customers in a
way that creates a memorable event.
As some products become more complex and
therefore requiring greater level of service and
assistance in store, greater emphasis is put on staff
engagement.
In short the stores of the future will be a form of
entertainment as well as shopping especially in the
UK where shopping is as much a pastime as sport or
going down the pub.
Retail Technology
Advances in retail technology will help transform the
retail environment and cater for new customer
expectations.
We’ve already seen the likes of Microsoft Surface in
stores, expect to see more digital and interactive display
Digital POS solutions.
RFID technology, already in mass usage, will become
more commonplace in retail and consumer products.
Enabling instant recognition of customers at every
touchpoint allowing displays to be tailored for specific
customers in and out of store - like 4D CRM.
Social media aggregators pulling info from web, videos,
price matching – transparent pricing & customer reviews
posted in real time, in store, to give searchable ratings.
Improved EPOS, stock systems and centrally or locally
RFID
Microsoft Surface controlled digital POS will free up staff to spend more
time interacting with customers.
Self-service
Self-service technologies free up time
for staff to be selling, demonstrating
and/or creating that more memorable
experience for customers.
In-store vending machines for lower
interest categories.
The capability to pay with your mobile
phone using Near Field
Communication or SMS to ease
queuing in busy times.
Holographic and/or augmented reality
displays to help shoppers.
NFC payment
Oneline - the merging of Online and offline
Online retailing has thrown down the gauntlet to traditional
retailers and highlighted a number of areas where high street
stores under perform.
Consumers see the online and in-store arms of retailers as
one brand, not as different often competing departments.
Consumers are using the (mobile) internet to research,
visiting stores to experience and going back online to find
reviews, and price comparisons.
Successful retailers will merge the best What ONLINE does best What IN-STORE does best
of online and offline in both
Open 24/7 Experience real products
environments so they provide the best
Easy search and comparison Take the product home with you
consumer experience wherever you
shop. Reviews and pricing information Social interaction
Not pressured to buy Recommendations given for you
Individualism
The growing trend of individualism will continue as
technical advancements allow products and services to
be customised to personalised tastes.
Shoes, t-shirts and even M&Ms are already available.
There are a number of sub trends here with some
customers wanting to express their own creativity while
others want brands to “Do-It-For-Me”, either way mass
market globalised products are starting to be customised.
Local & Community
As part of the backlash against globalisation and the
monotony of high streets, customers and retailers are
increasing turning to local suppliers and engaging in
community based activity.
Technology is redefining the meaning of local – local is
not just about geography but also about opinions.
Communities are no longer limited geographically and
online groups are exploiting their crowd power to be
heard and get what they want.
Location based social media such as Foursquare and
Gowalla will also enable opportunities for marketing to
be done on a hyperlocal and personalised basis –
providing it’s relevant and not done because it can be.
Ethics and Environment
Although predictions about the longevity
of this trend are mixed (because it should
become business as usual rather than a
trend), there is no doubt brands are falling
over themselves to prove their eco
credentials.
Consumers have been willing to accept inferior products to
support the cause, but are increasingly expecting their eco
products and services to be superior and comparably priced
to non-eco alternatives.
This won’t just affect products – retailers will need to make sure they pay attention to
what consumers care about and the environmental/ethical role they are playing with
the products they range and the stores themselves.
The iPhone app gives consumers instant information on products while standing at
fixture in store by scanning barcodes for health and environmental ratings.
A great example of 3 trends merging together (technology, transparency & ethics) is
the GoodGuide. A website that lets consumers get detailed environmental, health,
and social info on more than 50,000 products and companies in US.
In summary
These key trends will influence consumers lives and will therefore impact on retail.
Products considered pure science fiction just a few years ago are now a reality and for each new
innovation, countless new possibilities are unlocked.
Possibilities that not only can entertain customers but also free up staff to interact more with them
The retail environment has found itself playing by completely different rules and the advent of online
retailing has turned age old traditions and practices on their head. Traditional retailing is in many ways
playing catch up.
Successful retailers of the future operating in a permanently connected world, will have to evolve quickly
and seamlessly with the wants and needs of its customers to avoid being very quickly found out and
subsequently ignored.
For those that do pay attention, they will be able to convince customers to see their store as the enjoyable
way to shop. Whether that’s due to increased efficiency or a better more enjoyable experience this leads to
a competitive advantage in the shopping centre or on the high street.
HAYGARTH GROUP LTD ('THE COMPANY')
terms & conditions of business
5. Company obligations
The Company promises to supply the Goods and Services using reasonable skill and care. The Company will also use all
About these Terms & Conditions:
reasonable endeavours to follow the Client’s instructions and to faithfully reproduce any information supplied by the Client.
- they apply to all business conducted between the Company and the Client, and all other Terms &
The Company will make every effort to ensure that any marketing communications campaigns it designs on behalf of
Conditions are excluded unless they are in writing and signed by an authorised representative of the Company;
the Client comply with the relevant statutory requirements and voluntary codes normally applied within the advertising,
- variations can only apply if agreed in writing by a Director of the Company;
sales promotion and direct marketing industries, including, but not restricted to, the Advertising Standards Authority
-they are to be construed and have effect according to English law and the Client and the Company shall submit
and the British Codes of Advertising and Sales Promotion.
any dispute to the exclusive jurisdiction of the English courts;
- if any Condition or part of a Condition is held to be unlawful or unenforceable, the rest will still apply.
- variations to these terms purportedly agreed by e-mail shall not be contractually binding unless, and until,
The Company shall treat as confidential all information (written or verbal) supplied to it by or on behalf of the Client in relation
confirmed by non-electronic hardcopy in writing and signed by a Director of the Company.
to the Services, unless such information is in general circulation. The Company has the right to use as it sees fit any general
marketing information obtained in relation to the supply of the Services. The Company will keep with care any materials entrusted
1. Definitions
to it by the Client and will return them on completion of the Services if so requested by the Client. If the Company recommends
‘The Client’ means anyone who receives a cost estimate, submits a brief, places an order or buys any Goods or Services
a supplier with whom the Client contracts direct, the Company shall not be liable for the performance by that supplier of its duties
from the Company, and includes their staff, agents and subcontractors.
under the contract, and the Client shall satisfy itself as to the supplier’s suitability. The Company shall not in any event be liable
‘The Services’ means anything that the Company does for the Client at their request.
for any consequential loss or loss of profits suffered by the Client. The Company shall not be liable or deemed to be in breach
‘The Goods’ means anything that the Company purchases on behalf of the Client at their request.
of this contract by reason of any delay in performing, or any failure to perform, any data downloads, website maintenance
or development obligations in relation to externally hosted websites if the delay or failure is due to any cause beyond our
2. Quotations
reasonable control.
All quotations and cost estimates are based on information available at the time. Any subsequent additions,
alterations or corrections requested by the Client will be subject to additional costs. Acceptance of the quotation
6. Client’s obligations/indemnities
is deemed to imply acceptance of these Terms & Conditions. Where timescales are specified in the quotation the
The Company relies on the accuracy of information and instructions provided by the Client. Any statements of fact provided by the
Company will use all reasonable endeavours to comply with the timescales.
Client should be correct and able to be objectively substantiated, and any statements of opinion provided by the Client should be
reasonably and honestly held. The Client must inform the Company without delay if they consider that any claim or trade description
3. Invoices/payment
in any communication relating to the Client’s product or service is false or misleading, and must be able to support any claim
Invoices are payable within 28 days of the date of invoice. Any invoice queries must be made in writing within 15 days
made with objective factual evidence if required. The Client must ensure that all information concerning their products which
of receipt of invoice. The Company reserves the right to charge interest at 4% above the NatWest Bank base rate from
is required by statute to be displayed, is so displayed. The Client shall ensure that no work commissioned involves the infringement
time to time, calculated monthly, on any invoices not settled within 28 days. Some projects may require payment in
of a patent, registered design, copyright or other property right. The Client accepts all liability and shall indemnify the Company
advance for certain Goods or Services; this will be clearly stated on the cost estimate and invoice, and the Client agrees
in respect of any claims, costs, damages, or proceedings brought against the Company, caused by or relating to the supply of the
to pay these invoices immediately on presentation. Delivery of the Goods or Services may not be made by the Company
Services (including, but not limited to, any breach of the Client’s obligations under this clause), unless these are directly due to
unless such advance payment has been received. In the event of cancellation or termination of a contract, the Company
negligence by the Company. This indemnity includes costs and expenses incurred by the Company, and shall continue after
has the right to charge a cancellation fee to cover the work done up to the date of cancellation, and any costs incurred
termination of the contract.
or contracted up to that date.
4. Repeat fees
Please note that the level of agency fee quoted for any project is based on that project being run once only, unless otherwise
7. Copyright
agreed in writing. We therefore reserve the right to charge additional fees should any of our concepts be repeated, with or
The copyright on all designs, concepts and artwork created by the Company belongs to the Company unless otherwise agreed
without our input or assistance, such fees to be not less than 75% of the original agreed agency fee unless otherwise agreed
by a Director in writing. If any such designs or concepts are used by the Client without the Company’s agreement, or for
in writing. Any additional implementation fees will be negotiated according to input required.
a purpose other than that for which they were originally commissioned, the Company reserves the right to charge a
fee for such use.
8. Suspension/termination
If any circumstance whatsoever which is outside the Company’s control causes a delay in providing, or inability to provide,
the Goods or Services, the contract will be suspended until the circumstances cease. The Company will keep the Client
informed of the situation at all times, but will still be entitled to payment for work done up until the circumstance occurred,
and will not be held liable for any loss caused by such circumstance. The Company reserves the right to terminate any contract
by written notice to the Client, if the Client consistently fails to settle invoices by the due date, or after written requests for
payment, or if in the opinion of the Company the Client at any time becomes unlikely to be able to pay debts as they fall due,
without affecting any of the Company’s other claims or rights under these Terms & Conditions.
HAYGARTH DESIGN LTD(‘THE COMPANY’)
About these Terms & Conditions:
5. Company obligations
- they apply to all business conducted between the Company and the Client, and all other Terms &
The Company promises to supply the Goods and Services using reasonable skill and care. The Company will also use all
Conditions are excluded unless they are in writing and signed by an authorised representative of
reasonable endeavours to follow the Client’s instructions and to faithfully reproduce any information supplied by the Client.
the Company;
The Company will make every effort to ensure that any marketing communications campaigns it designs on behalf of
- variations can only apply if agreed in writing by a Director of the Company;
the Client comply with the relevant statutory requirements and voluntary codes normally applied within the advertising,
- they are to be construed and have effect according to English law and the Client and the Company
sales promotion and direct marketing industries, including, but not restricted to, the Advertising Standards Authority and
shall submit any dispute to the exclusive jurisdiction of the English courts;
the British Codes of Advertising and Sales Promotion.
- if any Condition or part of a Condition is held to be unlawful or unenforceable, the rest will still apply.
- variations to these terms purportedly agreed by e-mail shall not be contractually binding unless, and
until, confirmed by non-electronic hardcopy in writing and signed by a Director of the Company.
The Company shall treat as confidential all information (written or verbal) supplied to it by or on behalf of the Client in relation
to the Services, unless such information is in general circulation. The Company has the right to use as it sees fit any general
1. Definitions
marketing information obtained in relation to the supply of the Services. The Company will keep with care any materials entrusted
‘The Client’ means anyone who receives a cost estimate, submits a brief, places an order or buys any Goods
to it by the Client and will return them on completion of the Services if so requested by the Client. If the Company recommends
or Services from the Company, and includes their staff, agents and subcontractors.
a supplier with whom the Client contracts direct, the Company shall not be liable for the performance by that supplier of its duties
‘The Services’ means anything that the Company does for the Client at their request.
under the contract, and the Client shall satisfy itself as to the supplier’s suitability. The Company shall not in any event be liable
‘The Goods’ means anything that the Company purchases on behalf of the Client at their request.
for any consequential loss or loss of profits suffered by the Client. The Company shall not be liable or deemed to be in breach
of this contract by reason of any delay in performing, or any failure to perform, any data downloads, website maintenance
2. Quotations
or development obligations in relation to externally hosted websites if the delay or failure is due to any cause beyond our
All quotations and cost estimates are based on information available at the time. Any subsequent additions,
reasonable control.
alterations or corrections requested by the Client will be subject to additional costs. Acceptance of the quotation
is deemed to imply acceptance of these Terms & Conditions. Where timescales are specified in the quotation the
6. Client’s obligations/indemnities
Company will use all reasonable endeavours to comply with the timescales.
The Company relies on the accuracy of information and instructions provided by the Client. Any statements of fact provided
by the Client should be correct and able to be objectively substantiated, and any statements of opinion provided by the Client
3. Invoices/payment
should be reasonably and honestly held. The Client must inform the Company without delay if they consider that any claim or
Invoices are payable within 28 days of the date of invoice. Any invoice queries must be made in writing within 15 days
trade description in any communication relating to the Client’s product or service is false or misleading, and must be able to
of receipt of invoice. The Company reserves the right to charge interest at 4% above the HSBC Bank base rate from time to time,
support any claim made with objective factual evidence if required. The Client must ensure that all information concerning
calculated monthly, on any invoices not settled within 28 days. Some projects may require payment in advance for certain Goods
their products which is required by statute to be displayed, is so displayed. The Client shall ensure that no work commissioned
or Services; this will be clearly stated on the cost estimate and invoice, and the Client agrees to pay these invoices immediately
involves the infringement of a patent, registered design, copyright or other property right. The Client accepts all liability and
on presentation. Delivery of the Goods or Services may not be made by the Company unless such advance payment has been
shall indemnify the Company in respect of any claims, costs, damages, or proceedings brought against the Company, caused
received. In the event of cancellation or termination of a contract, the Company has the right to charge a cancellation fee to cover
by or relating to the supply of the Services (including, but not limited to, any breach of the Client’s obligations under this clause),
the work done up to the date of cancellation, and any costs incurred or contracted up to that date.
unless these are directly due to negligence by the Company. This indemnity includes costs and expenses incurred by the
Company, and shall continue after termination of the contract.
4. Repeat fees
Please note that the level of agency fee quoted for any project is based on that project being run once only, unless otherwise
agreed in writing. We therefore reserve the right to charge additional fees should any of our concepts be repeated, with
or without our input or assistance, such fees to be not less than 75% of the original agreed agency fee unless otherwise agreed
7. Copyright
in writing. Any additional implementation fees will be negotiated according to input required.
The copyright on all designs, concepts and artwork created by the Company belongs to the Company unless otherwise agreed
by a Director in writing. If any such designs or concepts are used by the Client without the Company’s agreement, or for
a purpose other than that for which they were originally commissioned, the Company reserves the right to charge a
fee for such use.
8. Suspension/termination
If any circumstance whatsoever which is outside the Company’s control causes a delay in providing, or inability to provide,
the Goods or Services, the contract will be suspended until the circumstances cease. The Company will keep the Client
informed of the situation at all times, but will still be entitled to payment for work done up until the circumstance occurred,
and will not be held liable for any loss caused by such circumstance. The Company reserves the right to terminate any contract
by written notice to the Client, if the Client consistently fails to settle invoices by the due date, or after written requests for
payment, or if in the opinion of the Company the Client at any time becomes unlikely to be able to pay debts as they fall due,
without affecting any of the Company’s other claims or rights under these Terms & Condition