Time flies, and though it might feel like yesterday retailers were planning their strategies for the 2023 holiday season, the first two months of 2024 have already passed by in the blink of an eye. As we navigate through the beginning of the year, several UK retailers face challenges while many show significant signs of growth.

In our latest Retail in Review blog, we take a look at how UK brands are navigating through the initial two months of 2024 in the retail industry.

People in Focus: UK’s Noteworthy Retail Appointments

At the beginning of the year, the UK retail panorama witnessed a number of people moves and appointments, from C-level to Director-level. John Lewis appointed former fashion boss Peter Ruis to lead the department store chain and Pets at Home hired former Sainsbury’s exec Anja Madsen as its new COO for retail. Former Poundland Finance Director Dave Williams was also in the limelight as he joined Matalan as its new CFO, replacing Stephen Hill, who stepped down after 23 years with the company. These changes at the C-level only underscore the role of dynamic leadership in driving growth.

With digital expertise becoming more important to brands, the last couple of months saw retailers leveraging talent acquisition to strengthen their digital capabilities and stay competitive in the online space. Dunelm strengthened its boardroom’s digital expertise, bringing in ex-Amazon director Ajay Kavan and Daniel Taylor, the CEO of Paddy Power owner Flutter, whereas Asos named Anthony Ben Sadoun as its new Executive Vice President of digital products. It is clear that technology is vital, but human expertise also plays a critical role in the success of customers’ digital journeys.

Navigating Challenging Times 

While the industry saw several hirings at leadership levels, a number of brands announced their plans to reduce workforces and shut down stores. The Body Shop announced that it will be closing half of its 198 stores in the UK and cutting the size of its head office, leading to hundreds of job losses. Farfetch is also set to cut up to 30% of its total workforce as global e-commerce retailer Coupang takes ownership. Meanwhile, John Lewis is reportedly considering 11,000 job cuts as part of a major turnaround. These workforce reductions only reflect the challenging times being faced by global retailers. Amidst this challenging landscape, the UK entered a technical recession.

To effectively deal with these challenges and increase sales, retailers need to deliver high value for money. From competitive pricing and loyalty programmes to top-tier and exclusive customer service, brands need to make sure they create their unique competitive edge. To better understand customers and stand out, brands need to take a holistic approach to their retail technology. British retailers can take inspiration from US markets. Reiss recently deployed Mobile Point-of-Sale (POS) technology in its US stores to streamline in-store operations and deliver top-tier customer experiences. By using technology to deliver unparalleled customer experiences, retailers can increase sales opportunities.

Growth Continues

While some brands made job cuts, many others experienced significant growth, indicating consumer confidence despite economic fluctuations. According to the latest Office for National Statistics (ONS) report, January witnessed the largest monthly sales rise since April 2021, as retail value sales grew 3.9% after a record fall in December 2023. This rebound in sales reflects a potential recovery in the retail market. 

A number of brands in the UK seemed to have a great start to 2024. Pandora’s revenue hit £1.2bn and the brand announced 5% growth in its European market, demonstrating adaptability in the competitive landscape. Meanwhile, Shoe Zone announced that its profits had surged almost 20%. As a result, the retailer is expecting to open 25 new shops in 2024 and complete a “minimum of 25 store” refits. This reflects the retailer’s strategic approach to meeting evolving consumer demands.

Primark is set to invest a further £75 million into its UK store estate this year, taking its total investment to more than £100 million in its UK stores in 2024. As a result, the retailer will create 700 new jobs as it marks its 50th anniversary on British high streets. Primark’s continued investments in the UK market signal confidence in future prospects.

Looking ahead

While the recession news created uncertainty within the market, the UK retail landscape shows promising signs of growth. Although consumers are resilient, they have also become more demanding and fastidious about their purchasing decisions. Retailers who are agile and continue to meet evolving consumer expectations are likely to thrive in the industry.

Want to understand how technology can help you increase customer retention? Get in touch today!

As we commemorate International Women’s Day 2024, a day dedicated to honoring the achievements of women and advocating for gender equality, we reflect on the progress made and the work that lies ahead. This year’s theme, “Invest in women: Accelerate progress,” highlights the importance of empowering women and recognizing their contributions in all facets of life.

In this blog post, we sat down with Amber Hovious, our VP of Marketing and Partnerships, to discuss her insights on women’s empowerment and her leadership role in the tech industry.

Why do you think investing in women and celebrating their achievements is crucial?

Investing in women is crucial because it not only benefits women themselves but also society as a whole. When women are empowered and given equal opportunities, they can contribute to economic growth, innovation, and social progress. By celebrating women’s achievements, we inspire others and break down stereotypes and barriers that hold women back.

What changes are needed to ensure equal representation of women in the tech industry?

To ensure equal representation of women in the tech industry, we need to address several key areas. First, we must encourage more girls to pursue STEM (science, technology, engineering, and mathematics) education from a young age. This can be achieved through educational programs, many of which already exist, but can sometimes lack awareness and the mentorship needed to help them thrive.

Next, we need to create a more inclusive and supportive work environment where women feel valued and respected. This includes addressing unconscious bias, promoting work-life balance, and offering equal opportunities for advancement. It is tragic to have these young girls excel in STEM areas, only to lose them to a different field because of the barriers they face once they reach the workforce.

Finally, we need to ensure that women have access to leadership positions and are represented in decision-making roles. Studies have shown that diverse teams lead to better decision-making and improved business outcomes.

How can we break down barriers that hold women back in the workplace?

Breaking down barriers requires a multi-faceted approach. We need to address structural barriers such as unequal pay, lack of access to childcare, and inflexible working hours. Companies need to implement policies that promote gender equality, such as pay transparency and flexible working arrangements.

Too often, well-intentioned men aren’t even aware that they are guilty of sexism in the workplace. We need to challenge cultural and societal norms that perpetuate gender stereotypes and discrimination. This includes promoting positive role models, challenging unconscious bias, and educating people about gender equality.

Most importantly, we need to empower women to speak up and advocate for themselves. This includes providing them with the skills and confidence to negotiate for better pay and opportunities.

Who are your female role models that inspire you?

I have been inspired by many women throughout my career, but two that stand out are Jennifer Morgan and Brandi VanLoon. Jennifer Morgan’s journey from a business development role to CEO at SAP is truly inspiring. She has shown that with hard work, determination, and resilience, women can break through the glass ceiling.

Brandi VanLoon our VP of Corporate Affairs within Teamwork Commerce. She embodies the values of hard work, integrity, and kindness, and has been a source of inspiration and guidance for my own personal and professional growth.

What percentage of the Teamwork Commerce workforce is female?

Currently, our female workforce is 37%, which is higher than the industry average. I believe our female workforce percentage would be even higher if we had an equal distribution of male and female applicants. However, as we have discussed, the majority of applicants are male.

Despite this, we are proud of our commitment to gender diversity and inclusion and remain dedicated to increasing the representation of women in our organization. We also strive to encourage young girls to explore STEM fields, paving the way for future generations of women in tech.

Let’s Make a Difference

As we celebrate International Women’s Day, let us reaffirm our commitment to gender equality and women’s empowerment. By investing in women, celebrating their achievements, and breaking down barriers, we can create a more inclusive and equitable world for all.

Let us continue to advocate for policies that promote gender equality, support initiatives that empower women, and challenge stereotypes and biases that hold women back.

Retail shrink – and theft in particular – has continued to prove to be one of the most damaging factors in retail losses over the past year. According to NRF’s 2023 National Retail Security Survey, the average retail shrink rate last year increased to 1.6%, up from 1.4% in 2022.

With shrink rising in 2023, retailers across the sector are determined to overcome the issue in 2024. If they can improve their loss prevention practices – both across supply chains and in-store – retailers can minimize the financial impact of shrink, improve customer experiences, and drive overall business growth. In order to achieve this, many are turning to technology investment.

The Impact of Shrink on Retailers 

Occurring when companies lose inventory from causes other than sales, shrink will never completely disappear. A challenge that has remained prominent for decades within the sector, the current economic climate has only emphasized the negative impact shrink has on a retailer’s bottom line. 

A major contributor to rising shrink challenges is the shoplifting epidemic plaguing the retail sector, which accounts for 65% of total retail shrink. Whilst retailers are implementing measures to combat the issue of theft, they also need to take a holistic view of all factors affecting inventory loss, such as administrative errors, damaged goods and vendor fraud, and execute a strategy that works to protect the bottom line from all variables. 

New technologies and predictive analytic tools are assisting retailers in pinpointing individual causes of shrink on both the shop floor and within the supply chain. Armed with the ability to view stock information from across the organization in real-time, retailers can understand the root causes of their shrink issues and take steps to prevent them. 

Inventory Management Technology

Establishing dynamic inventory control systems allows retailers to access real-time data of the store’s inventory, enabling them to have full visibility and control of items across all retail channels. With the reduction of manual handling of stock levels, retailers can minimize the risk of human error within inventory management, further benefiting overall accuracy and reducing the opportunity for shrink.

Providing full control across retail channels, inventory can be tracked and the use of predictive analytics allows retailers to leverage a range of historical trend data to gain a full understanding of factors impacting shrink levels. With inventory levels accounted for with an efficient management solution, stores are able to streamline operations while gaining crucial insight into stock levels.

Having access to the right inventory management software and solutions is essential for retailers to maintain an accurate and clear view of inventory across their supply chain. This enables them to consistently manage operations across all channels and reduce the impact of rising shrink challenges.

Introducing RFID to Reduce Shrink 

One technology that is also playing a key role in improving loss prevention is item-level RFID. The technology is giving retailers the ability to streamline operations, while also providing further visibility to the factors contributing to loss. By empowering retailers with clear visibility of all products, tagged at item-level from the manufacturing stage through to sale, items can be tracked in real-time with high-quality accuracy. 

Deploying RFID solutions provides retailers with the ability to identify specific missing items, and track their history of movements across the retail chain. This allows them to gain a clear indication of where stock is lost, enabling retailers to take appropriate action in mitigating shrink.

Shrink Prevention in 2024

As retailers continue to face the challenges of remaining profitable in a highly competitive industry, they must ensure that they are deploying the right technological solutions to prevent inventory shrinkage tackle the shrink crisis.

Interested in hearing how Teamwork Commerce can help your retail business minimize shrink? Please get in touch.