Current trends in retailing and the future of retail property. Andrew Bolitho -Property, Energy, Planning and Transport Policy Advisor
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1 Current trends in retailing and the future of retail property Andrew Bolitho -Property, Energy, Planning and Transport Policy Advisor
2
3 The BRC is the authoritative voice for retail recognised for itspowerful campaigning and influence with governments and as a provider of excellent retail information.
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5 Economic overview
6 Source: ONS
7 Source: ONS
8 Source: ONS & GFK
9
10 Rise of online retailing Expansion of the supermarkets into non-food products and lines Leases and renewals Recognition that there is too much retail space Increase in level of exports
11 Source: ONS
12 Source: Eurostat
13 Retail searches breakdown by device Total 10% 100% Mobile Desktop 109% 23% -3% 77% Smartphone Tablet 102% 57% 288% 43% Growth YOY Proportion Source: BRC
14 Source: Verdict
15 Vacancy rates Source: BRC
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17 Rise of online leading to changes in distribution Higher concentration of warehouse vs brick and mortar stores Delivery to door and click and collect Enhancing the customer experience Innovation in retail technology Multiple consumer offers in store i.e. coffee shops, childcare, health and education Managing the decline of retail on our high streets Providing solutions to oversubscription of retail space
18 Delivery of flexibility within change of use order temporary development rights for retail to residential April 2014 Drive towards enhancing energy efficiency in commercial buildings Minimum Energy Performance Standards Energy Savings Opportunity Scheme Greater focus on better town centre planning Delivering diversity to enhance the high street Providing long term clarity for investors/developers Enabling out of hours delivery
19 Delivery of consistent planning decisions at a local level Changes in the ways in which we shop Innovation in the customer experience and multiple instore offers Managing the decline of the high street Ensuring the right level of appropriate retail space remains both In Town and Out of Town Creating a vision for the future of retail Source: Bank of England
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21 Technology - Commerce e-commerce m-commerce Social media (f-commerce) Technology - Marketing and Advertising QR codes (Quick Response Codes) Near Field Communication (NFC) Interaction digital advertising Wi-Fi Technology - Supply Chains Efficient sourcing Inventory management
22 Seamless integration across the multi-channel platform E-commerce Sales growth of 20% per annum Accounts for 10% of all retail sales (c. 30 billion) Online retail searches growing by 40% M-commerce Sales growth of 150% per annum Accounts for 5% of online spend (c. 1.5 billion) Online mobile retail searches growing by 214% NFC mobile wallets Quick Tap Social media (F-commerce) ASOS first retailer in Europe to open Facebook shop
23 Future Developments 3D Printing Retailers Tesco is assessing the possibility of printing 3D products in-store, with its technology team currently testing 3D printers to explore future in-store applications. Amazon has launched a section of their website that sells 3D printer and supplies. Staples has plans to set up a new service called "Staples Easy 3D that will allow customers to upload their designs to Staples' website, then pick up the printed objects at their local store. Sainsbury s is preparing its 3D printing strategy to be revealed later this year. We have even seen this technology used to create 3D chocolate faces at FabCafe in Japan and by ChocEdge in the UK. Fujifilm In 2012, Fujifilm discussed introducing 3D printers using the established kiosk model that's been successful for digital photo printing. Kiosks would be placed in retail store and a catalogue of objects would be available for purchase, with the products on offer occasionally rotated to provide variety. Food NASA and a Texas-based Systems & Materials Research Corporation are exploring the possibility of using a "3D printer" on deep space missions to make food in space. 3D printing of food may be revolutionary for the food industry - tissue engineering reduces CO2 emissions with no animals, land use, chemicals or transport and is also heralded as a solution to food shortages.
24 Future Developments Rise of the robots Hointer, a US mens fashion retailer, is leading the way to robots running some of our retail stores. The store has no salespeople, confusing signs, or stacks of clothes to riffle through to find the right size. Instead, lines of clothes in hundreds of styles hang for you to browse through. When you find something you like, you scan the QR code on the tag, pick your size on the Hointer app with your smartphone, and your selection is automatically delivered to the changing room via a chute from the German robot-operated stockroom. To pay, you put your items in a bag, checkout by swiping your credit card at a station, and walk out the door. The store even offers free automated alterations It s as close to the ease of shopping online in the physical world as you can get.
25 Burberry Regent Street in London brings their online marketing in-store, to create 'Burberry World Live', which claims to offer customers the physical expression of the brand's most innovative digital launches in recent times. The store s features include a 22ft-high screen, 500 hidden speakers and a hydraulic stage. It also showcases RFID microchips on clothing and accessories, so when customers try on clothing the mirror transforms into a screen, which shows the garment on the catwalk. Related catwalk footage is also triggered when products are taken near video screens throughout the store. There is also a digitally enabled clothing gallery.
26 Thank You
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