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By Tricia McKinnon

You are shopping for furniture and you just found a piece you absolutely love. Then the agonizing sets in. Will it? or won't it? Fit into your space? And even if it does fit will it look good next to that side table you bought last Christmas? That's where augmented reality shopping apps can make a difference. They let you see what a piece of merchandise looks like in your home before you buy it or if you want to buy a new pair of eyeglasses they can show you what the glasses look like on you without a trip to the mall. Use of augmented reality is still at its infancy with only 13% of people in the United States in 2021 having ever used augmented or virtual reality before to shop.

Many retailers are coming out with augmented reality apps to make it easier for you to buy the perfect item. Here are ten retailers that have augmented reality functionality in their apps. Maybe you should give one of them a try before your next trip to the mall or in the case of Amazon before your next order.

All of these apps are available to iOS and Android users with the exception of the Anthropologie and IKEA Place apps which are only available to iOS users.
1. Home Depot

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10 of the Best Augmented Reality (AR) Shopping Apps to Try Today

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Use these AR apps before your next shopping trip.

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Augmented reality is driving sales on top of engagement for fashion and beauty brands that are investing in the technology, either through social media platforms or on their sites.

On e-commerce sites, viewing 3D models in AR increases conversion by up to 250 per cent.

While AR skills are still nascent, tech platforms are investing in tools to make it more accessible.

SAN FRANCISCO- Last week, Tel Aviv-based influencer marketing agency Leaders Group introduced the first marketplace for people who design and build augmented reality filters. Called Creators AR, it operates like an Etsy-style marketplace: creators list their price and profile, and brands can commission them to design custom assets.

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Fashion and beauty brands are taking AR more seriously

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With the backing of big tech, augmented reality is becoming table stakes for fashion and beauty brands.

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Among all industries right now, few may be as open to innovation as the fashion industry. Indeed, the $2.4 trillion industry has always been a hotbed for new trends, whether in aesthetics or e-commerce.

With such a drive for all things new, fashion is now moving towards the latest in tech: augmented reality.

If you think about it, it makes complete sense! Augmented reality is a tool that can revolutionize how consumers interact with brands. With this tech, marketers can seamlessly blend real-time surroundings to boundless animated designs.

And consumers see the benefits as well. Around 62% believe that augmented reality can help them when shopping for goods.

Right now, augmented reality is only available at a handful of stores. Even so, the unique experience it brings allows fashion brands to showcase their forward-looking principles.

Augmented Reality for In-Store Millennial Clients

With about 73 million millennials making up the population this year, they are becoming the largest market for brands. One important characteristic of millennials is how tech-savvy they are. And for clothing retailers, it's all about capitalizing on tech and social media to captivate millennial customers.

Retail giant Zara does this by using augmented reality for their in-store displays. Customers can hold their mobile phones in front of a select shop window, and they will see models wearing pieces from the latest line.

Aside from the wow factor, the feature makes shopping convenient. Customers can just click on certain items to automatically purchase them. Zara also adopts augmented reality for online purchases. Packages show alternative outfits to the pieces delivered, enticing customers to make repeat purchases.

Analysts observe that while it is rare for physical stores to not be affected by the online marketplace, Inditex's innovation for its fashion brand Zara proves that brick-and-mortar stores can stay on top with the use of tech like augmented reality.

Augmented Reality in Online Shopping

While fashion brands like Zara are still going strong, it's a fact that e-commerce has got a fair chunk of the overall revenue. Global online retail sales are growing, with about 8.8% of the estimated total retail spending in 2018.

Hence, companies are looking to enhance the online shopping experience. One example is Gap's pilot app made in collaboration with Avametric.

Gap's DressingRoom

Named the " DressingRoom ", the augmented reality app lets customers try on clothes anywhere using a Google Tango-enabled device.

You can customize an avatar based on your body type and see how the different pieces of clothing will look from different angles. And, if you're satisfied with the item, you can buy it straight from the app.

Wannaby's Wanna Kicks

Another AR app developed for shoppers is Wanna Kicks, an iOS app that enables customers to try on different pairs of sneakers from the 3D models available. A shopper can just choose a pair of kicks, point the camera at their feet, and see how the shoes look right away. The app tracks your feet's movements, so you can walk around while trying on a pair - something shoppers commonly do in actual stores. The Belarus-based developer, Wannaby, is working further to make the "Try-On" AR app work while the user is standing in front of a mirror. Mimicking the in-store shopping experience can potentially drive more online sales.

But the augmented reality element in fashion is not limited to clothes alone. Accessories and cosmetics are also investing in the immersive tech.

One such brand is Tenth Street Hats.

Tenth Street Hats' Virtual Try-On

The California-based designer hat brand offers an augmented reality option on their product pages. Shoppers can select items tagged "Virtual Try-On", click the "Try it on in AR" button, and see how they look. According to the brand, engagement levels increased by 33% thanks to the augmented reality feature.

Sephora's Virtual Artist

Meanwhile, beauty brand Sephora launched Sephora's Virtual Artist in partnership with ModiFace. The app lets customers try on various makeup shades and combinations using their device's front camera. The app's face scan technology allows the user to see themselves wearing the cosmetics. It's so successful that it has been used as many as 45 million times in the first eight weeks.

What's Next for Augmented Reality in Fashion?

Fashion brands are recognizing the impact of augmented reality on how they can showcase and market their products. Whether it's a physical store or an e-commerce site, one thing is clear: augmented reality can help enhance the customer's shopping experience and affinity for the brand. And that's what matters most.

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How Augmented Reality Is Redefining The Fashion Industry | ARPost

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Among all industries right now, few may be as open to innovation as the fashion industry. Indeed, the $2.4 trillion industry has always been a hotbed for new trends, whether in aesthetics or e-commerce. With such a drive for all things new, fashion is now moving towards the latest in tech: augmented reality.

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WGSN footwear trends

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clarks loss of employees

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Aldo goes into administration

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FOOTWEAR RETAIL SALES

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Corporate Finance Director
18/01/19

Overview of the Market

The UK Footwear Retail market is estimated to be worth approximately £5bn and is forecast to expand by 1.2% per annum until 2024. The footwear retail market has enjoyed five years of strong and consistent growth rates, as a result of strong consumer confidence and rising incomes. Innovations within the industry, such as the rise of online retailing and click-and-collect services, have enabled retailers to unlock further growth but has also increased competition.

In recent years, a key theme running throughout the footwear retail market is the rising popularity of trainers and more casual styles of shoe. Retailers have had to adapt their offerings in order to profit from these changing customer preferences. There has also been an increase in clothing retailers bolstering their footwear offerings to compete with specialist stores.

The industry is forecast to continue growing over the next five years, however operators will need to introduce new strategies in order to limit the effects of competition. Footwear retailers have been fairly slow to adapt stores in the interest of improving the shopping experience, a concept that external rivals have wholly embraced. Growing external competition is likely to force industry operators to adjust and increase technology investment in the interest of sustained competitiveness. Regardless, consolidation is likely to occur, particularly at the lower value end of the industry, as footwear retailers continue to battle with supermarkets and major clothing retailers for market share. Online and mobile commerce sales are expected to account for a growing proportion of total industry revenue. Revenue is forecast to increase at a compound annual rate of 1.1% over the five years through 2023-24 to reach £5.2 billion.

Footwear Retail Companies

A profitability analysis on the sector from a pool of 287 leading UK-based Footwear Retail companies revealed the following points:

The most profitable 78 companies benefitted from an average profit margin of 5.9%

The least profitable 209 companies made an average profit margin of (0.2%); the industry average is 1.0%

86 Footwear Retail companies increased in value over the year with 38 companies increasing by more than 25%

116 companies decreased in value, 46 fell by more than 25%

62 companies have made a loss for two consecutive years

Based on analysis, companies were rated on their 'takeover attractiveness'. A total of 110 companies were given a 'Strong' rating whereas 73 companies were given the lowest rating, 'Danger'. 46 companies in the industry were highlighted to be highly attractive takeover prospects. London was the most attractive region for takeover prospects.

M&A Activity in the Sector

Market IQ data indicates a total of 46 significant deals in the industry from January 2011 to October 2018, with UK targets. Deals are only reported over a certain value threshold (c.£500k), therefore, it is likely that not all deals have been captured.

Upon breaking down the deal type, M&A activity within the sector is mainly categorised by acquisitions, with 41 since January 2011. There were also five management buy-outs. A geographical breakdown of the deals shows that the London dominates M&A activity, benefitting from 16 deals in the time frame. The South West was the closest, with 5 deals being completed. The rest of the deals are spread throughout other regions whilst slowly declining to Wales, with only one deal.

Deal flow has been reasonably small in each year with a downwards trend through 2011-2016. This contraction is characteristic of the after effects of the recession that ended in 2012. Brexit has clearly had an effect on M&A levels in the industry. In 2017, growth levels were good when compared to 2016. The contraction of M&A levels then continued. Forecasting ahead till the end of the year, following current trends gives only two to three deals. This contraction is due to the uncertainty that the EU referendum has caused in the past two years.

Industry Benchmarking Information - September 2018

Hallidays' client base consists of small to lower mid-market enterprises. Our benchmarking analysis reflects businesses with turnover below £20m, in line with the majority of our clients in this sector.

Footwear Retail Benchmarking

Using full company accounts filed in the last two years under the SIC-Code "47721 - Retail sale of footwear in specialised stores" or "4772 - Retail sale of footwear and leather goods in specialised stores", Excluding companies with nil turnover in either period, we have summarised key benchmarking information for businesses under £20m turnover in the table above. September 2018.

M&A Activity Source

Experian Market IQ (October 2018)
Search Criteria: SIC-Code "47721 - Retail sale of footwear in specialised stores" or "4772 - Retail sale of footwear and leather goods in specialised stores".

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Corporate Finance Director18/01/19 The UK Footwear Retail market is estimated to be worth approximately £5bn and is forecast to expand by 1.2% per annum until 2024. The footwear retail market has enjoyed five years of strong and consistent growth rates, as a result of strong consumer confidence and rising incomes.

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Earlier this month, I attended the FDRA Executive Summit, where I learned that while footwear sales have risen for the seventh straight year, same-store sales actually contracted -0.9 percent in 2017. According to a report released by FDRA, " Shoe Review Footwear Report 2017," the disparity between demand and actual sales will continue to spur fallout for the sector through 2018 as the industry responds to dull sales and declining store numbers. Footwear retailers are predicted to close hundreds of stores nationwide. On the contrary, there are still new stores being built that are having big success.

With demand for footwear strengthening, the report begs the question: "How can demand be high but same-store sales be falling?" The FDRA's report points to a number of factors including the weakening dollar, higher interest rates and record-high average duties on footwear imports last year. But the true disparity lies in where and how consumers are shopping, as big-box stores, online-only retailers and other channels capture a greater share of overall shoe sales.

So what are traditional footwear retailers doing wrong? As I mentioned in a recent First Insight blog, footwear remains one of the toughest segments in the retail industry. It's likely that many footwear retailers feel their hands are tied. With manufacturing largely based in China and not likely moving closer any time soon, product introduction cycles are long. Further, development costs are high and manufacturing is complicated. Add in consumers' need for fast changing fashion and ever-changing style preferences, and you have an industry model in a state of disarray and in need of drastic innovation and digital transformation - fast.

Dick Johnson, Chairman, CEO and President of Foot Locker, captured this sentiment best during his remarks at the Summit: "The old model of guessing eight to nine months in advance what the consumer might want isn't going to work anymore. We need to shorten product development cycles. The consumer wants new, the consumer wants fresh."

But how? Last year's overhaul to the U.S. tax system couldn't have come at a better time. With billions of dollars in savings being injected into the retail industry this year, footwear retailers now have a golden opportunity to invest in innovative solutions that can close the gap between their businesses and big box stores and online-only retailers. But that means changes to their existing platforms that inject new, innovative solutions to shorten the production cycle and ensure the products and pricing are in line with consumer expectations.

According to Carol Spieckerman, President of Spieckerman Retail, who spoke during the Summit, this is critical for survival. "The new model for retail is 'platform plus,'" she stated. "It's all about more, more, more. Retailers cannot focus on their core; they need to add pieces to their platform, to their core, to their foundation."

So what pieces? Most of footwear's innovation should be centered on data to streamline efficiencies, minimize production cycles, and align with the needs of modern consumers. Here are three digital technologies worth considering:
Voice of the Customer
Predictive Voice of the Customer data and analytics are powerful tools in determining pricing, selection and personalization of shoes in a way that can shave weeks or months off a development cycle. The success of this technology is built on using crowdsourced data to inform early-stage product development and merchandising.

"We've used predictive analytics for more than a year now to determine inventory positions on styles we believe in, and to determine how to best price products for the consumer as well as predict the average unit retail over the life cycle of the item," reported Alex Del , Chief Executive Officer of Camuto Group, in a recent blog. "We are seeing positive results across the board in terms of initial pricing and margin enhancement."
Optimized Line planning
Optimized Line Planning automatically integrates data from multiple sources - including historical sales data, trend data, competitive data, CRM data, social media feeds and forward-looking voice of consumer data - to determine the groups of product attributes which will resonate best with different consumer segments. It can also forecast the revenue share expected to be generated so designers and merchants can be more confident that their line plans will achieve their financial commitments and objectives.
3D CAD Technology
Retailers should also consider investing in new, innovative 3D CAD technology to test designs sooner in the product development lifecycle and improve forecast accuracy. By being able to test new products in digital form, retailers can significantly shorten the production cycle.

One great example of how 3D design can be leveraged is through the recently announced Material Exchange Platform from FDRA and PTC. The Material Exchange is an advanced platform that uses digital technology and data to allow companies to pull material specs and pictures into 3D design programs. Rather than sifting through dozens of physical material swatch books, they can now change materials and colorways instantly and continuously throughout the design process. It also enables development teams to gain line-of-sight into material costs, availability, quality, and compliance issues.

While data is key, you can't mention it without cringing a little due to news and the coming GDPR Guidelines taking hold at the end of this month. Summit panelists also mentioned the need for data protection being three times higher on the heels of Facebook's recent privacy scandal. It's worth getting up to speed on the ethics and regulations around data collection and usage. This article is a great primer on GDPR. We'll be talking more about what the Facebook fallout means for the retail industry in an upcoming post.

The retail industry at large is waking up to the power of data-driven technology. Walmart's purchase of Jet.com and Macy's purchase of Story and BlueMercury are great examples of traditional retailers amping up their platforms to better serve modern consumers. Footwear should not be an exception.

With this year's tax cuts, there will likely be no better time for footwear retailers, like the retail industry at large, to adopt innovative technologies. It doesn't need to be a guessing game anymore. "Innovation is key to the future," President and CEO of FDRA, Matt Priest, rightly noted during a panel he moderated on moving from analog to digital technology in footwear.

Now with a tailwind of additional tax dollars, footwear brands willing to invest in the right data-centered technologies to understand what their customers want and make a great differentiated product faster and priced right will be better able to reclaim greater share, and increased profits, in the evolving footwear industry.

... Read More

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Footwear Experts Say Retailers Must Innovate Or Bust

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With billions of dollars in tax savings being injected into the retail industry this year, footwear retailers now have a golden opportunity to invest in innovative solutions that can close the gap between their businesses and big box stores and online-only retailers.

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dawsonera.com: Direct access to your library's ebook collection

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Welcome to the latest episode of our Podcast series ' In Conversation' where we bring you inspiring stories, retail insights and conversation from fashion's most influential business leaders.
This week, Lauretta Roberts speaks to Broadcaster Gaby Roslin and Air & Grace Founder Claire Burrows.
Claire has spent spent over 20 years in the footwear industry and often found herself the only woman in the room at a range of meetings fighting the case for shoes women actually wanted to wear. Frustrated with the notion that comfort and style could not co-exist, she took the leap to go it alone and create Air & Grace which creates "shoes as covetable as they are comfortable" says India Knight of The Sunday Times.

Born out of Gaby's love for the brand, she decided to collaborate with Claire on a charity partnership for The Prince's Trust to create a limited edition design of the Copeland trainer, one of the brand's popular styles, which sold out in just over 2 hours.
"As an avid walker and Air & Grace addict (I have five pairs!) it was only natural for me to collaborate with Claire and her team to create a pair of trainers that could be worn to withstand city pavement pounding."
On this Podcast they discuss the formula behind a successful partnership; how fashion will be changed by Covid19; and the work they do for The Princes Trust.

To be the first to know when more episodes of our Podcast series go live, subscribe to our daily newsletter here.

Our Podcast series is staged in proud partnership with

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PODCAST: In Conversation - Broadcaster Gaby Roslin & Air & Grace Founder Claire Burrows - TheIndustry.fashion

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Welcome to the latest episode of our Podcast series ' In Conversation' where we bring you inspiring stories, retail insights and conversation from fashion's most influential business leaders. This week, Lauretta Roberts speaks to Broadcaster Gaby Roslin and Air & Grace Founder Claire Burrows.

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Retail apps help to drive engagement and build brand loyalty, and conversion rates are typically higher than for online and mobile shopping. And amid the store closures and crumbling consumer confidence brought about by the coronavirus crisis, apps' ability to connect shoppers with brands through their phones may take on even greater significance.

However, today's consumer is fickle, and apps must offer engaging content - not just an alternative shopping channel - if they are not to be deleted from shoppers' phones. Moreover, it would be a mistake to think of an app as a quick win: launching one requires investments of time and money.

Gain loyatly

Amanda David, senior consultant at ecommerce consultancy Practicology, says some retail apps can drive a conversion rate of up to 4%, compared with 1%-2% on ecommerce sites. Apps can collect more data on browsing habits and shopping history than websites, which helps retailers to refine personalised communications, and push notifications keep the app at the front of customers' minds.

"Retention and loyalty are easier to drive through apps, and push notifications and in-app messaging are very important to this," says David. "Retailers can experience up to 40% click-through on push notifications. Apps present a great opportunity to engage through relevant, targeted communications."

Having an app enables the customer to feel more attached to the brand

Terry Hunter, Astound

Terry Hunter, managing director of ecommerce consultancy Astound, agrees: "An app lets the customer feel more attached to the brand - it's literally sat on the screen of their phones every day. For retailers, functions such as push notifications and the ability to gather more data from shoppers give more control in an app."

While stores are unable to open and interactions with customers are restricted to the online world, an app can help to sustain customer engagement, and relevant content is what keeps them returning to it.

Young fashion womenswear brand Missguided, for example, is offering at-home workout videos in its app during the lockdown. The "Swipe to Hype" feature on its app, meanwhile, encourages users to browse through different items in the manner of a dating app - gamifying the shopping experience to engage its users.

Michael Langguth, co-founder and COO of app platform Poq, which creates apps for retailers including PrettyLittleThing, Missguided, Oasis and Hawes & Curtis, adds that while people are forced to spend more time at home, there has been a surge in retail app use and downloads.

"In countries where people have gone into quarantine, download numbers have spiked, and are as high as the holiday period," he says. "It's not just shopping - it's lifestyle and inspiration as people are trying to pass their time at home."

Outside the world of fashion, he flags furniture brand OKA's app as one that offers strong, story-based content. Retailers such as Matchesfashion and Net-a-Porter also devote large amounts of app space to inspirational content.

"Apps can help with keeping people engaged, so that when we're back in the real world people will go back into those stores," explains David. "Retail will have to ensure the best possible experience, and innovative content online and in apps."

On a practical level, part of this involves ensuring clear communication and a smooth experience through the app - and informing customers of current business challenges.

Liam Bateman, chief technology officer and founder of app development agency Silverchip, explains: "The app is currently one of the only touchpoints that some people have. It's a very delicate time, but an app can allow retailers to communicate what their situation is and keep customers informed."

Offer more

However, the advantages of engagement and increased customer interaction are rendered redundant if only small numbers of people are downloading and using the app.

Making your apps as "discoverable" as possible in the Apple App Store and Google Play Store is essential. It is also important to keep your app is as small as possible, and ensure that the download will not overwhelm users' phone memories.

"A big challenge is getting customers to download and use in the first place," says the founder of a technology innovation agency. "There's evidence that people use a very limited number of apps, and are resistant to new ones. If you do manage to get people to download your app, then you have their focus."

He adds that, once the app is downloaded, user experience is crucial. Functionality is no longer enough, and shoppers expect to be entertained - whether through gamification or high-quality editorial content.

He explains: "Apps need to reflect more than just efficiency. I want to shop on my phone, but there are now many channels to buy that item. If I can find a product elsewhere, efficiency isn't the only thing I'm looking for. We need to improve the digital experience [with inspiring content and entertainment]."

Lots of retailers just recreate the website in an app format

Amanda David, Practicology

Elsewhere, Yoox Net-a-Porter Group (YNAP) has invested into its app portfolio. In May last year, Net-a-Porter launched a shoppable content platform within its app, with the aim of creating a bespoke, luxury experience for its users.

"The design is smooth and intuitive, giving our brands a more visual platform and elevating our digital content experience," says Alison Loehnis, president of YNAP's luxury division. "The technology allows us to be even smarter behind the scenes, meaning we can give everyone a unique experience that will be further personalised over time."

Other tools helping to set apps apart from ecommerce sites include visual search - used by Asos, among others - and integrated loyalty cards, as seen in the John Lewis app.

Practicology's David says apps must set themselves apart from other ecommerce channels to drive sales: "Lots of retailers just recreate the website in an app format. But it needs to have a USP or add value - or why would a customer shop on the app rather than online? Unless it can complement the overall user and omnichannel experience, then it's not worth investing into."

Hurdles to jump

Despite the possibilities, there are practical difficulties to launching an app. In the current climate, when customers' spending is low but expectations are high, these could - and possibly should - dissuade retailers from launching apps anew.

Poq's Langguth explains: "In house, an app could take 12 months to develop. Often retailers think it's easy and similar to developing an ecommerce site - but it's very different and very technical to perfect.

"There are intricacies in the data handling and dealing with spikes in demand [such as around Black Friday]. Scalability questions can be quite big, and so can security issues. There is a lot to think about when you're building an app - and people often don't consider that."

The financial burden of an app is also something that retailers must take into account, says Astound's Hunter: "There is a cost to design the app and a cost to run the app. Once up and running, you have to do updates to both the ecommerce site and app, as things can very quickly become out of date. Ensuring they are aligned can be a challenge."

He continues: "If you start to lose focus on supporting the app and it falls behind, then you will lose the customer and they will delete it."

If an app is not already running, Hunter says investing into attracting shoppers to existing ecommerce platforms may offer more solid results than launching one for the first time.

With the right strategy, a gamified, bespoke app that focuses on communication - not just selling - can benefit customer engagement and sales conversion. However, in the current climate, an app should not be considered an easy-to-add necessity.

Long-term investment of time, resources and funds, as well as a close eye on consumer demands, is crucial.

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Beyond efficiency: the new rules for retail apps

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Retail apps help to drive engagement and build brand loyalty, and conversion rates are typically higher than for online and mobile shopping. And amid the store closures and crumbling consumer confidence brought about by the coronavirus crisis, apps' ability to connect shoppers with brands through their phones may take on even greater significance.

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Kurt Geiger donates first months profits to NHS

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Kurt Geiger donates first months profits to NHS

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The retailer plans to open 24 out of its 57 stores from 15 June.

The brand has chosen to start its phased reopening with some of its smaller "local" stores that have high levels of click-and-collect pick-ups, as well as all of its out-of-town outlets, as these are more easily accessible and have parking.

The following full-price Kurt Geiger stores will open from 15 June: Covent Garden, Trafford Centre in Manchester, Liverpool, Westfield London, Westfield Stratford City, Bluewater in Kent, Birmingham Bullring, Meadowhall in Sheffield, Lakeside in Essex, Newcastle Eldon Square, Brent Cross in London, St Christopher's Place, central London, Leeds and Portobello Road in London.

Outlet centres to open include: Cheshire Oaks, Gunwharf Quays in Portsmouth, East Midlands Outlet Village, York Outlet Village, Swindon Outlet Village, NEC Resorts World in Birmingham, London Designer Outlet in Wembley, Braintree Outlet Village, Ashford Outlet Village and Bridgend Outlet Village.

Kurt Geiger will also launch a "We are one" T-shirt available in black and in white on 15 June. All profits from sales of the T-shirt, which will be available to in store and online, will also go to NHS Charities Together to help the retailer reach its target of raising £1m for the charity by Christmas.

Clifford said: "As the 'new normal' way of life begins, we want to keep recognising the staggering efforts made by our incredible NHS throughout the pandemic and as such, we have committed to donating 100% of store profits for the first month of reopening to NHS Charities Together. These store profit donations, along with the profits from the sale of our 'We are one' tote bag and new T-shirt will help us reach that target by Christmas.

"There is no doubt that Covid-19 and lockdown has changed retail and fashion for the foreseeable future. I believe consumers will now shop with a 'conscience' and we all need to be more aware of making a positive impact in all we do. Likewise, fashion needs to be more sustainable and less changeable, which will result in fewer but more enduring collections."

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Kurt Geiger to donate first month of store profits to NHS

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The retailer plans to open 24 out of its 57 stores from 15 June. The brand has chosen to start its phased reopening with some of its smaller "local" stores that have high levels of click-and-collect pick-ups, as well as all of its out-of-town outlets, as these are more easily accessible and have parking.

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decrease in footwear sales

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According to IMRG Capgemini online retail sales in the UK grew by 23.8% Year-on-Year in April. Footwear and clothing experienced two-digit declines, as consumers shift their shopping patterns in a hot month

The conclusions come from the latest IMRG Capgemini Online Retail Index*, which tracked the online sales performance of over 200 retailers during the first full month the UK was under lockdown. As Covid-19 across the UK and forced restrictive measures to be put in place, brick and mortar stores closed and online sales growth surged to a 10-year high: +23.8% Year-on-Year (YoY).

According to the same source the increase in sales was driven by multichannel retailers with sales up by 35% versus online only retailers' increase of 8.3%. At a category level, the unusually hot April weather combined with lockdown triggered a massive rise in gardening sales. Building upon March's 94.4% YoY growth, this month's sales were up an unprecedented 288%. In a context of confinement, electrical sales also registered impressive 3 digits growth: 102%. Health & beauty sales grew above 80%.

As for clothing and footwear the performance did not result in such a nice picture. The clothing sector sales declined by 23.8% from April 2019. Footwear and menswear sales were down by 31.1% and 33.5% respectively.

Andy Mulcahy, Strategy and Insight Director at IMRG commented: "April's data shows that demand is following a very logical pattern: with stores closed, people who would usually shop in physical locations have no choice but to switch online. Hence it is the multichannel retailers who are securing the very strong growth at the moment, though whether it will be enough to entirely offset the loss of sales from those stores seems unlikely. This is only true for some categories though; even with stores closed, online growth for multichannel clothing retailers is still down -17.5%. The demand just isn't there at the moment".

It seems that Covid-19 has reshaped consumer spending patterns and shopping habits, as consumers in the UK focused on "purchasing for new environments rather than fashion". The question is when will demand return for clothing and footwear retailers? Even if and when stores re-open, will the consumer have the appetite to go back into stores as before?

The same source also points to the need of listening to customers and find ways of "becoming increasingly transparent, flexible and innovative in order to navigate the rocky and uncertain road ahead". Especially, as the mid-market segment is losing out to budget retailers. A trend which could co-exist with the fact that consumers are looking for brand trust and quality. This can result in a squeeze in the mid-tier where appealing to both needs has been traditionally harder to balance.
*IMRG is the UK's online retail association. Capgemini is player in consulting, digital transformation, technology and engineering services. The IMRG Capgemini Online Retail Index, which was started in April 2000, tracks 'online sales', which we define as 'transactions completed fully, including payment, via interactive channels' from any location, including in-store.

Image credits: Brooke Lark on Unsplash

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Footwear not profiting from 10 year high in UK online retail sales

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According to IMRG Capgemini online retail sales in the UK grew by 23.8% Year-on-Year in April. Footwear and clothing experienced two-digit declines, as consumers shift their shopping patterns in a hot month The conclusions come from the latest IMRG Capgemini Online Retail Index*, which tracked the online sales performance of over 200 retailers during the first full month the UK was under lockdown.

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How can retailers attract younger consumers?

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How can retailers attract younger consumers?

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While the woes of the high street is seldom too far from the money pages of our broadsheets, so too is there a regular focus on the intergenerational divide. It's often said that our youth of today have been squeezed by soaring housing costs, and are more acutely stifled than their older peers by the worst period of wage stagnation since the Napoleonic Wars.

Such generalisations leave themselves open to debate, but there is broad consensus that younger consumers are having a pretty tough time of it at present. Yet for all their travails, this particular age bracket still plays a vital role in powering the UK economy, and, from a retail perspective, their spending power continues to rise.

In fact, data from Statista showed that non-food retail spend for those between the ages of 18 and 34 actually exceeded that of over 55s (£48.1bn vs £47.7bn) in 2014, and is projected to surge to £53.8bn in 2019.

It therefore underscores the level of clout our youth can wield on the fortunes of struggling UK retailers, and why it is essential that retail business strategies should place emphasis on meeting the needs of this dynamic, ever-changing demographic.

Do Millennials and Generation Z exhibit similar trends?

We've identified the 18-34 age group above, and, broadly speaking, those who fall into this category are termed as 'Millennials' or 'Generation Z' (Gen Z). In the case of the former, they reached adulthood after the year 2000, while the latter were born in the late 1990s onwards. But when assessing these two demographics, one doesn't want to be overly simplistic, and these younger consumers do exhibit degrees of variance in their preferences and behaviours.

These differences are particularly noticeable when comparing 18 to 20-year olds, versus those over the age of 21. According to research conducted by ViSenze (in the UK and the US) last August, both younger and older millennials are equally enthused by the prospect of visual search (63 per cent versus 62 per cent). However, the younger contingent is more responsive to augmented reality as part of their retail shopping experience (37 per cent versus 28 per cent). Conversely, and perhaps somewhat surprisingly, older millennials in particular appear to prefer bypassing human interaction in favour of digital assistants and AI (31 per cent versus 25 per cent).

Yet despite such disparities, there are clear common denominators across these age brackets too. Chief among these is an embrace of technology, and increasingly eschewing the need for human interaction when making a purchase. For example, according to 365 Retail, a quarter of shoppers in the UK use self-service checkout. Of those aged 18-39 who use such facilities, 9 out of 10 agreed that they were a convenient and easy form of checkout. However, among those over the age of 60 who used them, less than half agreed.

Is a strong online presence particularly pertinent to Millennials?

Online shopping now accounts for more than one pound in every five spent in the UK, but is by no means the preserve of the young, and all generations shop online. Equally, omni-channel shopping is a feature across all age groups. That said, establishing a powerful online presence with real cut-through is essential when trying to attract younger consumers.

According to Statista, 95 per cent of Brits aged 18 to 24 made an online purchase in 2018. For those aged 25 to 34, this figure is equally prominent at 96 per cent. However, at the other end of the spectrum, less than half (48 per cent) of those over the age of 65 used ecommerce last year.

Which online channels should I use to target younger shoppers?

The Omni-Channel Retail Shopping Report, conducted by BigCommerce and surveying over 3,000 UK consumers, found some interesting trends. One of the key callouts was that both millennials and Gen Z shop to a large extent via social channels, including Instagram, Snapchat and Facebook.

Millennials in particular account for much of this, with more than 65 per cent indicating that they had made at least one purchase through Instagram over the preceding six months. The equivalent figures for Snapchat and Facebook were also very high; in and around the 60 per cent mark in each case.

Among Gen Z, nearly a third reported using Snapchat and Instagram. Yet among the baby boomer category, not a single respondent said they had used either medium to buy anything, while just 5 per cent used Facebook. It is thus pretty clear that social media holds the key to unlocking the market for younger customers.

This also overlaps with some other interesting conclusions in the study. It found that Gen Z rely more heavily on product recommendations than any other age group, along with social media adverts. Additionally, they are twice as likely to visit a retailer's social channels compared with their average American counterparts.

What other areas should retailers focus on with their online strategy?

For starters, website speed is critical. According to the BigCommerce research, speed is 2.5 times more important on a retailer's website to millennials and Gen Z shoppers than it is to Generation X (Gen X) and/or baby boomers. Convenience is king too, and even dwarfs price as a priority among those aged 18 to 35. These two age groups also put a great deal of value on a website having a loyalty scheme, while Gen Z in particular listed free shipping as being high up on the totem pole.

Brand reputation is also less important to millennials and Gen Z, and both favour personalisation to a much greater extent. In fact, the latter have grown up expecting a personalised shopping experience, so it is crucial that retailers are able to customise this at an individual level.

That is easier said than done though, with data coming at a premium. Since GDPR came into effect, those in the Gen Z and millennial categories have shown a much higher propensity for requesting that retailers delete their data than their older counterparts. Nevertheless, surmounting this challenge is pivotal in creating a personalised journey for those who want it most. Offering early access to new deals, loyalty schemes, faster delivery, free shipping and, indeed, the very promise of a more-personalised experience itself are just some of the carrots which can be dangled in exchange for customer data.

How big a role will mobile play for retailers?

It goes without saying that mobile optimisation is mission critical. For the first time ever, online sales over smartphone (40.4 per cent) eclipsed that of desktop (39.7 per cent) in Q4 of 2018, as per the Capgemini IMRG eRetail quarterly sales index. To put that into perspective, as recently as 2015, retail website visits for mobile and desktop were broadly equal. Yet in Q4 last year, the former outnumbered the latter by almost 3 to 1.

Unsurprisingly, this shift has been driven primarily by younger consumers, although what is particularly interesting is their clear preference for using mobile phone apps. Analytics company GlobalData revealed in a report earlier this year that 67.7% of those aged 16 to 24 prefer using retailers' mobile apps, rather than a mobile-optimised website.

This comes in well above the overall average of 61 per cent, and the forecast by GlobalData that mobile spending will increase 88 per cent by 2023 underscores the importance of app investment as a means of targeting millennials and Gen Z - not least as a means of driving loyalty, and edging out competitors.

How can retailers attract younger shoppers in store?

As per the findings of BigCommerce, UK shoppers of all ages identified being able to touch and/or sample a product as the principal reason for shopping in store. Yet there are other discernible points of variance. For one, Gen Z shoppers place a great deal of importance on speed, and also cite the ability to find better deals in store as a reason for heading to the high street.

A recent Royal Mail study found that 93 per cent of UK consumers buy retail products in store and online. One of the primary goals of any omni-channel strategy should be to bring the two closer together, especially for younger buyers. Data collected online can be used to personalise their in-store experience, while apps can be used in store for convenient loyalty points accrual, and even for payments and checkout. Concept stores are another inventive way of leveraging brick and mortar with an online presence, and have proved particularly popular with millennials. There is also an increasing shift towards using social events, and creating fun 'Instgrammable moments' in store to get younger feet through the door.

The point is that, subject to a bit of innovation, brick-and-mortar stores still have an important role to play within UK retail - especially with regard to younger consumers.

Are younger consumers drawn to retail finance?

The simple answer is yes. There is various literature which confirms as much, and one such study is the aforementioned BigCommerce survey. According to their study, the use of retail finance - or buy now, pay later equivalents - is more than 5 times higher among millennials than it is among Gen X. Even those who fall into the Gen Z category are twice as likely to use retail finance than their Gen X counterparts.

This is by no means about enabling irresponsible spending. On the contrary, younger buyers cite convenience, competitive rates and the ability to sensibly spread the cost of big-ticket items as the core reasons for favouring point-of-sale finance.

It is this inclusiveness of retail finance, which spares millennials and Gen Z shoppers the complexities and paperwork associated with applying for credit cards or loans from a bank, which is a major trump card for retailers. It opens up a wider range of products to this demographic, improves conversion, drives loyalty, and lays the foundation for boosting order values. In a difficult climate for retailers, these are potentially powerful gains, and a vital hook when it comes to capturing market share within these age groups.

What else do retailers need to keep in mind?

Retail finance is one aspect of improving the checkout experience, but other forms of digital payments are important too. As an example, mobile wallet use (eg: Apple Pay) is 10 times higher among millennials and Gen Z shoppers than it is with Gen X and baby boomers. Similar dominance is replicated when it comes to using PayPal facilities. Embracing the digitisation of payments, in addition to traditional methods, has a huge role to play in reaching out to these individuals.

Other priorities among younger consumers identified by market research is a penchant for brand-led experiences, loyalty towards retailers with a social conscience, a reliance on social proofing and influencers, the importance of feeling understood, and, perhaps counter-intuitively, a desire to engage with brands as little as possible along the way.

It's a tough set of circles to square, and makes for a moving target which is difficult to pin down. But for retailers and retail marketers, the rewards for exhibiting the innovation and foresight to get ahead of the curve are handsome. This isn't just the market demographic of the future - it's one with plenty to offer right now.

Related Articles:
How to set up an online store
Guide to increasing your retail finance sales
Guide to scaling up your online store

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How Retailers Can Attract Younger Customers | Lending Works Blog

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Younger consumers are not the easiest to pin down, but, for retailers, this demographic presents a golden opportunity to grow their market share. In this guide, we look at the various dynamics of this target market, and how best to attract them as part of an omni-channel retail strategy.

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Young and fashionable (article in downloads )

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Young and fashionable (article in downloads )

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How seven drivers of consumer behaviour will shape global markets over the next 10 years

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Senior Trends Analyst Diana Kelter and Senior Retail and E-Commerce Analyst Alexis DeSalva highlight a few key brands that spotlight Mintel's 2019 Global Consumer Trends. This discussion focuses on the retail sector and what brands are doing to stand out to consumers.

Diana Kelter is a Senior Trend Analyst at Mintel. She investigates how cultural, lifestyle and technology shifts take shape across sectors and leverages Mintel data across trend observations.
Alexis DeSalva is a Senior Research Analyst at Mintel. Alexis focuses on US Retail and eCommerce reports.

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[WATCH] 2019 Global Consumer Trends: Retail trends in a

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Senior Trends Analyst Diana Kelter and Senior Retail and E-Commerce Analyst Alexis DeSalva highlight a few key brands that spotlight Mintel's 2019 Global Consumer Trends. This discussion focuses on the retail sector and what brands are doing to stand out to consumers. Diana Kelter is a Senior Trend Analyst at Mintel.

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The future of Asia-Pacific's retail landscape will force a fundamental change in the way Asian companies are structured, managed and do business. The region is innovating in a new direction towards a future that suits its own aspirations and needs-and retail technology is leading that innovation. Asia-Pacific is also changing the framework and focus of globalisation, and that role will only increase.

In Mintel's new whitepaper, 'New Retail: The Futurenomics of Asia-Pacific', Matthew Crabbe, Regional Trends Director, Asia-Pacific, combines Mintel's latest research to paint a picture of what the future will look like for the economy, based on existing trends and trajectories in 'new retail', and its influences already being felt across the region.

'New Retail: The Futurenomics of Asia-Pacific' is broken down into four key discussion points, summarised below by Matthew Crabbe, Regional Trends Director, Asia-Pacific:

Digitisation: Futurenomics nears critical mass

"E-commerce growth is fast-moving and on a massive scale. According to Mintel estimates, e-commerce spending across Asia-Pacific* will increase from 3.6% of total retail spending in 2010 to 31.4% by 2020. What's more, from 2015 to 2025, e-commerce will rise in value by over 290%, and reach well over 37% of total retail value across Asia-Pacific*. This growth has created a new critical mass with the convergence of online and offline retail and services into 'new retail'.

"The online economy is a crucial part of Asia-Pacific's current and future economic growth. It is also a major part of the continuing integration of the economies and consumer spending patterns across the region. Meanwhile, Asia is not just innovating within 'new retail', it is also a hothouse of innovation in artificial intelligence, application of augmented and virtual reality, revolutionary concepts in food production, among many others. And 'new retail' is the focus of how all these developments are agglomerating to shape the 'futurenomics' of Asia. "

Integration: The value of experience

"'New retail' is a process, rather than a market, where the 'space' of e-commerce increasingly integrates with physical shopping spaces. It is also a part of a wider integration process into the broader digital consumer services environment, and across all consumer product sectors. Places and processes for shopping are integrating with entertainment, travel and socialising-which is great as a third (32%) of urban Thai consumers say they are spending more on leisure and entertainment in 2018.

"Brands are finding that they are being drawn into their own integration across sectors. Services brands are merging with retailers; retailers are becoming hoteliers; online platforms are becoming transportation provides-everything is mixing up. This means that brands must now engage with consumers across formats, platforms, technologies, locations, nations and sectors, and find relevance across more aspects of consumer lifestyles. "

Consolidation: More people in less space

"Asia-Pacific's population is rapidly urbanising into some of the world's largest cities, creating the potential for 'new retail' to develop faster in the region. In India, a quarter (25%) of urban internet users who shop for groceries do so from online supermarkets at least once a month. Meanwhile, in Indonesia, over half (56%) of urban smartphone owners have made a purchase through an online retail site or app.

"Urbanisation is likely to be significantly influenced in the future. To meet the needs of vast, crammed populations of tomorrow, cities will have to adapt to new technology. 'New retail', with the ability to reach anyone, anywhere, via their smartphones, offers a unique solution to connecting with consumers. Companies in the 'new retail' industry are encouraged to spread their influence across the region. In fact, 'new retail' is already expanding rapidly across the region through the influence of China's leading operators."

Migration: From brawn to 'e-brain'

"As Asia-Pacific's populations get older, there will be an increasing need for greater productivity as 'working age' populations shrink. This will drive the need for ongoing education and long-life learning to keep up with and adapt to new technologies. Mintel research reveals that as many as three in four (72%) urban Thai consumers say they want to learn a new skill, while three in five (59%) urban Chinese mums agree that early education should start as early as possible.

"Technology in production-manufacturing and agriculture, for instance-is leading to a shift from a 'brawn economy' to 'brain economy'. Already new technology has democratised the means of production. In an environment where ideas become currency, we see the emergence of what is now known as the 'Fifth Estate'. It is where outlier, disruptor and social groupings become instigators of change in mainstream society. 'New retail' will be the foundation upon which new economies will be built, and Asia-Pacific is leading the first wave. " Concluded Crabbe.
*Asia-Pacific estimates are based on the following markets: Australia, China, India, Indonesia, Japan, South Korea and Vietnam

For interviews with Matthew Crabbe, please contact Mintel's Press Office. Mintel's 'New Retail: The Futurenomics of Asia-Pacific' is available for download here.

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Mintel predicts the future of 'new retail'

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The future of Asia-Pacific's retail landscape will force a fundamental change in the way Asian companies are structured, managed and do business. The region is innovating in a new direction towards a future that suits its own aspirations and needs-and retail technology is leading that innovation.

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Covid 19 and fashion

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In order to survive in the lockdown, UK fashion retailers will have to show they can adapt to changing consumer needs. With clothing sales likely to decline even after restrictions are lifted, how can the fashion industry best adjust to this 'new normal'?

A strong decline in sales

Next's latest trading update highlights t he severe impact that COVID-19 is having, and will continue to have, on the UK fashion sector. The retailer has warned that the retail sales decline has been faster and steeper than it anticipated, and that it will lead to significantly lower performance in both the first and second halves of the year. Next's 32% fall in full price online sales was clearly impacted by its decision to close its warehouses and halt online sales for 18 days. This, however, gave it the time to re-organise its warehousing to ensure safety and social distancing, and has allowed it to be more prepared for the surge in demand it has seen since it reopened its online site on 14 April.

As one of the biggest clothing retailers in the UK, Next's sales results act as a bellwether for the UK fashion market. Many retailers can expect sales to continue to decline heavily, even once the full lockdown has been lifted, due to the disruption from continued social distancing and the economic consequences of the crisis, as it might take time for customers to return to their normal shopping habits. While Next is in a secure financial situation, many other fashion retailers in a less stable position will also have seen a similar drop in sales, and based on an expected prolonged decline that will last for at least the rest of the year, they are likely to find it much more difficult to recover.

Retailers need to adapt

As people continue to work from home, fashion is less likely to be seen as a spending priority. Fashion retailers will need to proactively approach the upcoming months and efficiently manage inventory, as sales drop and consumers prioritise essential items. Certain categories, such as loungewear and nightwear, are likely to benefit as people seek out more comfortable clothing to wear around the house.

Independent retailers could offer customers a more bespoke online service and may be able to be more flexible at a time when large online deliveries may be disrupted. In China, we saw sales assistants setting up social media WeChat groups with VIP customers for exclusive online fashion shows, and there is scope for higher-end fashion stores and luxury brands to offer something similar in the UK via WhatsApp.

Retailers need to spread their supply chains

Once the lockdown is over, retailers are going to struggle to sell Spring/Summer stock, so there is likely to be heavy discounting to encourage people to buy. However, many retailers have cancelled future orders and this will inevitably have a huge impact on global supply chains and could push factories in developing countries to the brink of collapse. This could impact availability of Autumn/Winter 2020 fashion, although many of the large retailers have spread the risk by having factories in different parts of the world and so can shift manufacturing.

Luxury fashion brands are most likely to see their supply chains impacted as many rely on textile suppliers and garment manufacturers in Italy, which has been in complete lockdown for a prolonged period.

Brands can show they are helping society

There is a growing need for some businesses to shift manufacturing and investment into supporting wider society. We are seeing some fashion businesses responding to these demands. LVMH, the parent company of luxury brands including Louis Vuitton, has started producing hand sanitiser to deal with the shortage. Dolce & Gabbana has partnered with Humanitas University to fund a coronavirus research project, while Giorgio Armani, Prada and luxury group Kering have all donated money to hospitals and to help the fight against the virus. In the UK, womenswear brand Three Graces London donated all of its net sales between 18 March and 1 April to homeless charity Crisis to help the most vulnerable amid the COVID-19 outbreak.

Consumers care how brands act, with Mintel research showing that most consumers would think twice about buying from a designer brand that acts in a way they disagree with. Mintel Trend On Displa y highlights how, in the digital world, brands have to become aware that all of their actions are magnified.

Brands that show empathy and support consumers during these unprecedented times are likely to be viewed favourably once the COVID-19 outbreak has passed.

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COVID-19 is putting huge pressure on UK fashion

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In order to survive in the lockdown, UK fashion retailers will have to show they can adapt to changing consumer needs. With clothing sales likely to decline even after restrictions are lifted, how can the fashion industry best adjust to this 'new normal'?

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Accessory growth

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UK Fashion Accessories Industry Report (Updated 2020) | Mintel.com

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Click here now for the most comprehensive market research reports on Fashion Accessories . In-depth, insightful, invaluable market intelligence.