From the chaos of the end of the financial year through to the excitement of new technology developments, the UK retail landscape continued to evolve over the past couple of months, witnessing significant tech adoption, unique AI implementations, and continued growth. While many brands capitalised on consumer resilience and drove profits, others explored innovative approaches to technology implementation to enhance customer retail experience.

In our latest Retail in Review blog, we explore some retail trends and how the UK retail environment has evolved over March and April.

Tech Buzz: AI & Apple Vision Pro in Retail

Retailers have remained steadfast in their commitment to artificial intelligence (AI) investment over the preceding year, and the last couple of months have shown no deviation from this trend. In fact, there seemed a noticeable drive among UK retailers to explore new ways AI can transform their operations and customer experience. 

• UK fashion and homeware retailer, Matalan, claimed to be the first UK retailer to adopt a Generative AI (GenAI) tool that improves online product descriptions to elevate the online shopping experience and drive sales.
• Similarly, Boohoo Group is gearing up to introduce AI-powered search and merchandising across its brands, including PrettyLittleThing, Boohoo, Boohoo Man, and Karen Millen. The ongoing trust and financial commitments retailers place in AI, despite economic challenges, point towards a future where the technology plays a dominant role in retail.

While AI in fashion retail is buzzing, the wider retail industry is also looking to take advantage of its capabilities. In the last couple of months a number of retail brands, spanning from technology to grocery, have embraced AI in unique ways.

• For example, Tesco implemented an AI-powered solution that reduced energy costs by 10% across eight distribution centres, underscoring AI’s versatility in retail.
• Meanwhile, Amazon’s UK boss John Boumphrey emphasised the pervasive impact of AI within the company, stating that “every single team at Amazon” is looking at how Gen AI could transform the business for customers, sellers and employees. Boumphrey heralded Gen AI as the “most transformational technology for the retail industry since the arrival of the internet”.
• Consequently, Amazon unveiled plans to invest £600 million in European robotics and AI initiatives over the next five years.

Amid the ongoing AI hype, Apple Vision Pro has also prompted retailers to explore its potential to benefit customer experiences in retail.

Wayfair is extending the pilot of Decorify to Apple Vision Pro to let users view and select Wayfair items in 3D directly in their spaces. Decorify uses a generative AI model to create shoppable, photorealistic images of products. Although Vision Pro is still in its early stages in retail, retailers’ inclination towards the gadget in the early days indicates a promising future for Vision Pro in retail.

Closing the Books in Style

As the fiscal year 2023-2024 drew to a close alongside the first quarter of 2024, several retailers disclosed their financial performances. While ASOS posted an 18% fall in half-year sales, a number of retailers reported notable gains. 

Next demonstrated robust growth in annual sales, with pre-tax profit reaching £918 million.

• Similarly, Decathlon maintained its annual sales at £13.4 billion, achieving a net profit of £804 million amid continuous inflationary challenges.
• The direct-to-consumer online wine retailer, Virgin Wines reported an increase in pre-tax profit to £1.1 million, compared to £0.1 million in the same period last year.
• Meanwhile, British discount chain B&M said it expected a 9.8% growth in full-year profit, towards the higher end of its projections, supported by a 10% revenue increase driven by new store launches. 
• Tesco delivered a strong performance for the full year, with group sales climbing 7.4% to reach £61.5 billion.

These notable enhancements in sales and profitability across multiple retailers underscore consumer resilience amidst a challenging economic environment, including the cost of living crisis.

Growth, Expansion and Retail Sales

Recently, there has been a notable rise in physical retail as consumers show a renewed interest in in-store shopping. In order to capitalise on this appetite, brands continued to improve their brick-and-mortar offerings.

• Zara made headlines with its announcement to extensively enlarge its flagship store at Liverpool ONE, envisioning a spacious 42,000-square-foot area.
• Meanwhile, H&M opened a new concept store at 72 King’s Road in Chelsea.
• Menswear retailer, Moss, launched a new store at Clarks Village in Somerset and London saw Bath & Body Works inaugurate a standalone store located directly facing Sephora at its White City venue.

Such expansions and openings not only speak to these retailers’ commitment to enhancing customer experience but also reflect broader industry confidence in physical stores’ potential for growth and innovation. 

Heading in the Right Direction

In this evolving retail landscape, whether continued technology adoption or unparalleled growth and profits despite an economically challenging year, developments throughout the last couple of months point towards a positive outlook for the industry. Retailers that continue to innovate and live up to consumer requirements are likely to thrive, gaining a competitive edge in the market.

Want to know how technology can help you meet evolving consumer needs, get in touch.

Originally published in: Forbes

by Sergey Kozhevnikov, VP of Product Development at Teamwork Commerce

Technology’s role within retail is only growing in importance. Today’s consumers expect speed, convenience and high-quality experiences. Manual in-store processes not only slow down operations, but labor-intensive tasks take in-store associates away from the shop floor, reducing the opportunity to deliver the seamless and enjoyable experiences that shoppers now demand.

Modern technology innovations have proven themselves to be the solution to these challenges. We are now at a point where any retailer that isn’t operating with an all-encompassing technology stack is at a disadvantage to its competitors.

From the supply chain to the store, innovative solutions are helping retailers improve processes across their business. Omnichannel fulfillment provides customers with purchasing options that suit their needs. Item-level RFID enables real-time visibility of stock to optimize inventory management and streamline supply chains. Technology is allowing in-store visitors to complete transactions on their own with self-checkout or from anywhere on the shop floor with mobile point-of-sale (POS) devices.

Everywhere retailers look, technology is available to help them become more efficient, drive return on investment (ROI) and, most importantly, improve the customer experience. However, technology deployment is not necessarily a straightforward practice, and there are several considerations to make before taking the plunge.

Find the issue.

When it comes to technology adoption, it is wise to begin at the end. Retailers should ask themselves what the ultimate goal is. In an ideal world, they would know where the issue lies: too much in-store sales drop-off as a result of long queue times, high volumes of stock going to waste or poor customer satisfaction levels. Often, this is not the case.

Retailers must analyze their operations closely. An internal audit might highlight hidden issues that have gone unnoticed and need addressing as a priority. Finding the challenges and prioritizing the need to fix them can provide a clear pathway to technology implementation.

Once any issues have been uncovered, retailers must consider what the ideal picture looks like. Are busy stores creating shop floor congestion? A good problem to have, but a problem nonetheless. Retailers might set the goal of reducing in-store congestion at peak times by 30%. Objective outlined, the question now lies in how technology can provide the solution.

Source the solution.

Once the objective is outlined, there could be hundreds of potential solutions available from a range of technology providers. The biggest mistake retailers can make at this point is to simply jump at the first technology laid out to them.

Returning to the in-store congestion challenge, there are several potential avenues to explore. Retailers could look to improve their alternative sales channels to encourage more online or omnichannel sales, reducing the need to spend time in-store. They might look for a checkout solution—whether self-checkout or mobile POS. Alternatively, congestion might be caused by customers waiting around for a depleted staffing team to assist them, and retailers could look to automate more back-of-store processes to free up the time of their associates.

There is rarely one simple answer to an issue. Retailers should take their time, test different technologies and analyze which deployment—or deployments—can deliver the best results. Retailers must also ensure they partner with IT vendors that have a demonstrated track record of delivering valuable solutions.

Consider the challenges.

Even after the desired technology has been implemented, the process of integration can present its own hurdles.

One of the most obvious hurdles falls on deciding how to integrate the technology itself. Typically, retailers will choose to run a pilot rollout with the solution contained in one location. Taking place over a set period, the pilot will allow retailers to discover any initial issues—whether challenges exist around deployment itself or tweaks that need to be made once the solution is operational. It also allows retailers to get a feel for the technology in a day-to-day environment and pre-adjust components for a more seamless implementation ahead of full-scale deployment.

A lack of buy-in from the wider brand can also create challenges for retailers, especially those who are expected to use the technology daily. At this point, the onus falls on decision-makers to prove the value proposition to the wider business—and stakeholders might need convincing in different ways.

A CFO’s view on a seemingly expensive solution will be completely different from that of an in-store associate, who is being instructed to learn and leverage a potentially complex device. Where the CFO might need to be convinced of the long-term ROI, the in-store associate will need to know that they will receive full training on the device and, importantly, that they will be shown how the solution will make their job easier, freeing up their time to complete other tasks.

Either way, both parties must buy into the technology’s use case equally. They must also understand that deployment likely is not a quick fix, and patience is needed with all integrations. Only when an entire organization has an aligned view of technology can its value truly be recognized.

Think long-term.

Technology adoption is not a swift process. To keep up with ever-changing consumer trends, retailers must consistently review their technology requirements and improve their offerings wherever possible. Slowly, retailers can reach a point where they are utilizing an all-encompassing technology stack that communicates seamlessly in real time. But this cannot happen overnight.

While ROI can be delivered quickly, a long-term approach to technology investment can serve retailers well, delivering sustainable business results as they keep ahead of competitors with their integrations.

Importantly, retailers need to find the right technology partner who will guide them through the entire technology adoption process and help evolve their offerings over time. This will ensure that any technology implemented will be as effective as possible, as quickly as possible, to deliver high-quality customer experiences, as well as efficient processes that maximize returns for retailers.

Originally published in: NewDigitalAge

by Amber Hovious, VP of Marketing & Partnerships at Teamwork Commerce

Artificial intelligence (AI) has taken the retail industry by storm, empowering retailers to enhance their operations and performance across several sections of their retail ecosystem, from warehouse to in-store. According to Statista, retailers using AI and machine learning (ML) performed better than their competitors between 2023 and 2024, with an average revenue growth of 8.1%, compared to only 5.1% for retailers who did not use AI or ML solutions.

While AI is proving to be a game-changer in a number of areas within retail, its impact on customer experience is one of the key drivers of its adoption in the industry. In addition to helping retailers create highly personalised experiences, AI also plays a critical role in predictive analytics. 

Predicting trends with AI

Consumer needs are ever-changing as technology develops, and retailers must adapt to stay ahead of the game. Amidst these evolving consumer demands, there are often common patterns that emerge, which can allow retailers to predict what trend will come next. The challenge for retailers lies in being able to spot these patterns. For example, analysing historical data helps retailers anticipate the demand for products at a specific time, enabling them to optimise their inventory levels. However, manual processes for analysis are time-consuming and do not guarantee accuracy. As a result, retailers fall at risk of missing sales opportunities. 

To address this challenge, retailers have started to lean on AI. As per Statista, 60% of professionals stated that the most popular reason for using AI is to improve customer experience and predict customer behaviour and needs. By integrating AI-powered tools with their customer relationship management (CRM) systems, retailers can quickly and more accurately analyse historical data – such as customers’ purchasing habits, buying frequency, and preferences. As a result, they can predict trends and demand more efficiently and effectively, ensuring they have the right products at the right time to cash in on maximum sales opportunities.

The role of AI in personalising customer interactions

It is nearly impossible to provide tailored customer experiences to thousands of customers without the right technology. AI not only makes it possible but also does so seamlessly. AI-powered virtual assistants and chatbots are transforming the quality of customer service by answering queries or solving problems swiftly, tailoring each interaction in real-time. While AI is a game-changer in online customer service, its impact on the in-store customer experience is significantly valuable too.

Using AI-powered solutions, store associates can personalise their interactions with customers. If a customer often purchases items of a specific colour, AI will identify this pattern quickly and notify store associates, enabling them to make informed and personalised suggestions. This also enhances cross-selling opportunities for retailers, giving them extra knowledge of what their customers prefer.  

AI-powered solutions can also alert associates about restocked items that were previously sought after by a customer, enabling them to deliver proactive assistance. This not only increases sales opportunities for retailers but also positively impacts the overall customer experience. Associates can create personalised interactions, making customers feel valued. 

AI: what’s next?

Whether virtual assistants capable of personalising recommendations or chatbots offering real-time customer support, AI-powered solutions have redefined how retailers engage with their customers across online and physical stores. Over the next few years, the technology will become an integral part of retail operations, with 91% of retail IT leaders prioritising AI as the top technology to implement by 2026. As a result, AI-powered solutions are likely to dominate several areas of retail. 

As AI becomes more sophisticated, its integration into retail operations will only deepen, facilitating seamless, efficient, and tailored shopping experiences for customers and empowering retailers to drive efficiency and accuracy alike. 

While AI’s integration in retail is critical, the role of human value in the customer experience cannot be overlooked. Retailers must ensure they do not eliminate the human aspect of their customer experience. Those who can strike the right balance between humans and machines will pave the way for long-term success.

While the recent launch of England’s European Championship 2024 kit has stirred up some debate among the general English public, it is expected to be a hit in terms of sales. From home shirts to away shirts, hats to scarves, and jackets, any international football tournament featuring the Three Lions presents a significant opportunity for retailers to boost merchandise sales.

Sporting the right look has always been a key mark of support for any sports team around the world, and international tournaments seem to be one of the few events nowadays that will unite the English population. The summer of 2018 proved just how impactful sports can be on retail when Marks & Spencer sold out their waistcoat stock during the Russia World Cup, simply so that fans could emulate Gareth Southgate, the England manager.

As anticipation builds ahead of Euro 2024, kicking off in Germany, in June, retailers should be cognizant of the opportunities that the upcoming tournament will present over the next few months. In our latest blog, we explore how retail brands can make the most of Euros hype…

Stocking the Right Merch in Retail

Merchandise plays an important role in the build-up to any international tournament, but this doesn’t necessarily mean retailers must stock official shirts. Similar to the genius of M&S’ waistcoat push, brands can leverage Euros interest by simply finding the right products that land with their customer base. The trick lies in being able to find that niche.

Outside context plays an important role. Bucket hats, as well as retro t-shirts and shorts pairings typically become highly popular – the heat of the summer clearly influences purchasing choices. Retailers must use this context to cater to their audiences.

By integrating an effective reporting and analytics solution, retailers can gain real-time visibility of their performance, helping them to make better decisions, faster. With historical tracking of a range of factors – such as previous sporting events or last year’s summer sales performance – retailers can analyse trends to understand the type of products that will sell quickly during the Euros period. From here, it is simply a case of stocking the merchandise that suits the retailer’s customer base in the right context and watching it fly off the shelves.

A Short Window of Opportunity

Once the product selection is finalized, retailers must also consider the timeline they are working towards. Now that the official kits – and additional accessories – have been released, the hype will gradually build right up until England’s first game, when they kick off against Serbia on June 16.

This offers retailers a 3-month period, similar to that of the festive shopping season, whereby Christmas shopping begins as early as October. It is during this period that retailers must maximize their sales efforts, slowly ramping up their sales efforts as the Euros draw closer. Once the tournament begins, timing becomes imperative because as soon as England is knocked out, any interest will disappear, and leftover stock will cost retailers in the form of reduced sale prices and storage.

The tournament timings fall as follows:

Inventory is everything in these small periods of opportunity. Being able to find the right balance between under and overstocking products to maximise sales is paramount to optimising performance ahead of the Euros. Again, reporting and analytics will help retailers to better assess their required stock levels during the tournament.

However, Teamwork Commerce’s RFID-Powered Stock Counter Application provides retailers with real-time visibility into inventory status, allowing brands to keep on top of their stock levels with complete accuracy. It empowers users to make informed decisions based on up-to-date stock information.

Don’t Forget the Experience 

While retailers scramble to make the most of the short-term gains available over the next few months, they must also consider the opportunity to turn any quick wins into long-term success.

Merchandise sales introduce the potential of new customers who might have never thought to shop with certain retail brands previously. These are the opportunities that retailers must grab with both hands.

By delivering a seamless, personable in-store experience, retailers can leave customers feeling highly valued and satisfied. Ultimately, this encourages them to return to the retailer for a replicated experience in the future. These experiences can be achieved through a range of tactics.

From a simple, yet effective, greeting as customers enter the store, to personalised interactions through Customer Relationship Management (CRM) technology that tracks data such as purchase history, size and colour preferences, or even the name of a customer’s dog. Small gestures can make a big difference, and personalisation goes a long way to helping store visitors feel appreciated. Combined with additional perks such as personalised discounts, retailers can quickly turn a quick sale into a retained customer.

There is Always an Opportunity

The Euros will bring excitement to the nation, and for retailers, it brings the potential for enhanced sales opportunities and customer growth. These small periods of national hype can appear at any moment. We see it every year with January sales and Black Friday, and international tournaments have a similar impact. The key for retailers is to be ready, prepare effectively, and execute with a long-term view in mind.

To find out more about how Teamwork Commerce can help your retail business ahead of the Euros, book a demo today.