A quick couple of interesting recent observations from the Aurora Fashion group (Oasis, Coast, Warehouse) on their vision for the future of multi-channel and the 'order anywhere, fulfil anywhere' business model that is becoming increasingly important in a world where shopping is changing and customers are expecting ever more from their shopping experience.
Rationalising the Store Portfolio
Mike Shearwood the CEO of the group has told Retail Week that retailers need far fewer stores for credible national coverage in the brave new world, alongside a well implemented multi-channel offering.
“10 years ago, to have UK coverage you needed about 150 stores,” said Shearwood. “To have good UK coverage now, 50 to 60 stores are all that’s required.” He said Aurora was “We’re currently looking at our portfolio very carefully to ensure we have the right coverage to sit alongside multichannel” and added that he could see scope for fewer, bigger 'more experimental' stores in the future.
I'd say this supports the theory that in order to keep people visiting bricks and mortar stores in a world where online ordering is becoming more convenient (eg more flexible delivery options, think Amazon lockers and the below...) and more embedded into our 'normal' shopping habits, retailers will need to maintain a real focus on the customer experience they are offering- sites, layouts, staff, experiences, that are exceptional and ensure the branch remains a 'destination spot'.....
Delivery Faster Than a Speeding Bullet (almost)
And finally from Drapers the news that Aurora demonstrates the sort of innovation and forward thinking that is necessary for retailers to flourish in the continued tough economic climate, by introducing further flexibility into its order fulfilment model with a new 90 minute delivery option, where, for a premium price (and in 10 key areas in the UK) your item will be despatched by courier to arrive with you within an hour and a half to solve your last-minute wardrobe/gift crisis..... Impressive....
Aurora group multichannel director Hash Ladha told delegates at the Drapers Fashion Summit that 'Offering the convenience of multiple ways to order and receive product was the future of fashion retailing.... “If we have got it anywhere, we have got it everywhere ......Retailers should open up their inventory...
And in further support of the 'customer in command' theme that I've recently touched upon, he added “there is only one brand now, and that is the consumer”.
It will be interesting to observe how many retailers will be able to compete with this sort of flexibilty of multi-channel/supply chain to keep up with the clearly defined vision of the likes of Aurora. E-Comm and M-Comm are key investment areas for retailers this year, but what impact will the economic climate have on their spending capability and keeping up with the ever evolving capabilities in this area???
And what will happen to all those retail (physical) spaces?
ReplyDeletePlus will Londoncentricity influence the 50 - 60 locations?
Interesting point- will big names prioritise primary sites in future with local high streets and small town centres beginning to look more diverse again- more independents etc? And will we see more pure play etailers follow the lead of N Brown and create bricks and mortar locations?
ReplyDeleteOr will we see such sites simply taken up with more coffee shops, estate agents, hairdressers?!