Retail – Bluestones One

Innovation in the retail landscape

Nick Baldwin — Tue, 09 Feb 2021 16:18:58 +0000

Retailers constantly evolve and adapt to economic changes and the last year has been no different for changes in the sector. The high street has had to deal with both the impact of lockdowns and COVID-19 restrictions, and Brexit – even with these pressures there are several key innovations happening across the retail sector in the coming weeks, months and years.

Range Rationalisation

Many retailers are reviewing where they can improve efficiency, whether that’s across popular product lines like paper products, cleaners and sanitisers and dry goods such as canned vegetable, pasta and rice, or rethinking store layouts.

As part of this, retailers are undertaking range rationalisations. This enables retailers and suppliers to focus on the high-volume lines, have product available for shoppers and simplify in-store replenishment.

While this does mean that some brands and products will be missing from the shelves, it allows retailers to focus on the products consumers want while improving operating efficiency and using floor space effectively.

Click & Collect

As of 2016, it was reported that just over half of online retailers were offering a click and collect service – by 2023, the click and collect market is expected to grow by almost £10 million.

The pandemic has accelerated the rate at which new technologies have been adopted, especially contactless and self-service delivery (such as click and collect smart lockers) technology. In a time where footfall has dropped, click and collect has allowed retailers the opportunity to entice customers back to the store but safely.

As part of the adoption of click and collect across more stores, retailers will have the opportunity to review their store formats to enhance the customer experience, increase impulse purchases and streamline the staff required.

Shop in shop

As retailers rationalise their ranges and optimise the use of floor space, it allows them the opportunity to partner with other retailers to supply a shop in shop solution, with the concession brand occupying a set amount of space. There are benefits for both retailers such as shared costs, shared marketing, demand generation, speed to market and increased footfall.

The shop in shop agreement is popular among service stations and supermarkets and leads to improve the customer experience – think about book shops which have a coffee shop concession within them or service stations with a supermarket brand.

Supermarkets currently leading the way with shop in shop concessions are Sainsbury’s and Asda. Sainsbury’s acquired Argos in 2019 and swiftly brought the retailer into its supermarkets, benefitting from Argos’ strong delivery network and capabilities. Asda is currently trialling the shop in shop concept across two of its stores with a B&Q concession, with a further two to be added this year. We were proud to have supported the rollout of the trial store for B&Q in ASDA Sheffield, Drakehouse last year. Asda is also trialling a new convenience range called \”Asda On the Move\” at EG Group petrol stations in Ashby, Leamore and Primley in the Midlands.

Destination shopping

The future of retail is about delivering an exceptional customer experience and retailers are tapping into this by creating shopping “destinations”.

In part fuelled by the pandemic, consumers want to travel to one store for all their needs rather than having to shop in multiple stores. By successfully combining all their offerings, including click and collect and working with concession partners which complement their sector, retailers can become the store that people think of first when they want to buy something.

Checkouts

Retailers are always looking for ways to streamline the checkout process to improve the customer experience, cut waiting times and, accelerated by the pandemic, reduce social contact, and improve safety. As part of the review brought on by the pandemic, many retailers have increased the number of self-service checkouts available and changed queuing systems.

A survey by Capgemini found that 60% of adults are irritated by long checkout queues, which is why retailers are innovating their checkout processes, not just with self-service checkouts.

Most notably, M&S implemented an on-the-spot payment solution in 200 of its stores – the “Pay with Me” service enables a staff member to pick out customers who are waiting in a queue to pay for just a few items and quickly process their transaction via a handheld device. With each store operating to a maximum capacity during the Covid-19 pandemic, M&S said the service will help to free up space for more customers to enter stores.

Shrinkage

According to the ‘Retail Security in Europe. Going beyond Shrinkage’ report conducted by Crime&tech with the support of Checkpoint Systems, UK retailers are losing almost £11 billion annually. With the increase of self-service checkouts and the acceleration of checkout technology, retailers will need to review their security measures, so their annual loss figures decrease, not increase.

It is not only security measures which will need to be reviewed but inventory policies and technology, how shoplifters operate, and how countermeasures and security solutions are adopted and combined.

About Bluestones One

Over the last nine months, we have reviewed our position, identified how we want to develop our existing and new service offering and developed a three-year plan, focusing on acquisition, joint ventures and developing partnerships to help retailers deliver the above changes and innovations.

The last 12 months have been a record period for our business, and we plan to adapt and evolve further to continue on that path.

How will shopping be different in the future?

Nick Baldwin — Fri, 07 Jun 2019 08:39:09 +0000

Summary

How we shop and where we shop has already changed dramatically within the last 5 years (even within the previous year), and it will continue to change dramatically as consumer behaviours, technology and environmental demands evolve.

Many retailers, across various sectors, have already begun to implement changes to their brick and mortar stores to adapt to current pressures (from both the public, charities and government) and the next industrial revolution on the horizon, Industry 4.0.

What changes can we expect to see though, and which retailers are already ahead of the curve? Here are our top predictions, as well as the retailers that are part of the change.

Using new technology

What changes can we expect to see though, and which retailers are already ahead of the curve? Here are our top predictions, as well as the retailers that are part of the change.

Using new technology

Industry 4.0 isn’t just improving typical manufacturing processes; it is also having a direct knock-on effect with retailers in what has been coined Retail 4.0. With this digital revolution, consumers expectations have changed. Whether it’s the expectation of speed and convenience or seeking a memorable experience, retailers need to adjust to customers new sociological and psychological behaviours.

Amazon now has 12 stores across America that tick the boxes for speed and convenience, and memorable experience. The Amazon Go stores are designed so customers can walk in, grab want they want and walk out, all without having to queue or “check out”. Amazon describes their Go stores on their website as “pushing the boundaries of computer vision and machine learning to create a store where customers can simply take what they want and go.” Forbes even described the retail giant’s convenience shop as having the ability to change the way people shop. So far, a handful of retailers have tried to replicate the Go stores with their own checkout-free scan-and-go services, but none have yet reached Amazon’s use of technology. However, once new technology is implemented with one retailer, it usually snowballs, and experts predict that cashier-less stores will be the norm in 10 years.

A company that has successfully implemented a scan and go service is Nike. Businesses that don’t want to implement physical technology into their stores should follow the sports retailer’s lead. By packing their app with new features like unlocking in-store discounts and freebies, instant purchases and the ability to try on trainers without having to speak to staff, Nike has dramatically improved the shopping experience. By doing away with the need for banks of cash registers, Nike has also been able to redesign their store spaces with the customer in mind and display more stock on the shop floor.

It is a case of when, not if, that more retailers make use of the technology that is available to them right now – whether that is bringing tech in store or allowing customers to use it via the phone in their hands.

Talent attraction in retail merchandising

Nick Baldwin — Thu, 18 Oct 2018 08:54:14 +0000

What is behind the success of retailers’ merchandising? We spoke with the Bluestones One Retail Merchandising team, Gary White, Gary Lowe and Ashley Jewitt, about attracting the right talent to the teams who work day and night to ensure the country’s shops are ready and why it is an exciting career.

What are the current challenges affecting the attraction of retail merchandisers?

There are two main challenges in attracting new members to our retail merchandising teams:

Perception – there is a misconception outside of the industry that the workforce is transient, the role has little longevity or development opportunities and is a ‘stop-gap’ for some.
2. Competition – there are a number of companies within an industry that is quite niche and because of this competition for the best merchandisers can be quite fierce.

What can be done to combat these challenges?

We find the best way to attract and retain the best teams is through educating our applicants and existing teams on the scale and consistent nature of our activity. We work with a wide range of retailers so always have activity for our teams, keeping them consistently busy.

We offer opportunities to work within roles and projects that they haven’t been a part of previously as part of their development plan and grade each team member in order for them to understand how they are progressing and areas for development. This allows them to see a clear path for progression and a further incentive to improve themselves and their potential earnings.

Every single member of our senior management team has worked out in the field as a merchandiser, so there are clear opportunities for progression within the business. We also work extremely hard to engage with our teams on a personal and professional level so that we have that rapport and they are happy, we can ensure that they are enjoying their roles.

What is the profile of the ideal merchandiser?

We don’t necessarily look for experience, our focus is on displaying the right attitudes and behaviours as we can train them to become good merchandisers. Key for us is work ethic, customer service, timekeeping and flexibility. If they exhibit these sorts of behaviours then we are keen to work with them to develop their skills. There is a lot of time away from home as well so it’s key that they understand this before they start the application process.

What opportunities are there for new talent to get into the industry?

We (and most of our competitors) are recruiting for large periods of the year, this is in order to cope with the ever-changing demands of the retail industry, it’s a fast paced environment, where different sectors have different demands and different periods of the year where they will be busy. E.g. DIY may not be busy at the same time as Grocery and vice versa. We are finding more and more that we are getting approached by people from outside of the industry that want to try something different or they’ve been working in retail stores and seen our teams on site and chatted to them and like the sound of what we have to offer. There are always opportunities within the industry due to the ever-changing face of retail.

Why is it an exciting career?

As a career, it isn’t for everyone but the positives that we hear from our teams are: constantly different, meeting new people, building relationships with team members and customers, travelling and fun!

Our teams get to work in a variety of different sectors, delivering different types of projects throughout the year in different locations. They say “variety is the spice of life” and there’s certainly plenty of variety in what we do! The camaraderie built between the teams, other contractors on site and our customers is second to none, making it a fun environment for everyone.

Is the high street hotting up?

Nick Baldwin — Thu, 26 Jul 2018 14:43:54 +0000

Who said the high street was dead? With soaring temperatures in the UK, the public is shunning their computers and phones and heading to the Great British high street to part with their hard-earned cash.

According to the latest CBI Distributive Trades Survey, 32% of retailers said that sales volumes were up in July than compared to a year ago and 13% said they had to place more orders with suppliers as a result. A combination of the unusually nice weather (does this weather even belong in the UK?) and World Cup fever have been thanked for the boost in high street sales this July, which also saw 45% of motor traders report that sales volumes were up compared to this time last year (convertible anyone?).

These figures should be seen as a huge positive for the high street, especially following the results from the survey campaign #WDYT (What do you think?) which found consumers want more and better shops available to them. The survey, which was completed by 300,000 people, found that 78% of respondents worry about the high street and 70% are concerned about shops closing – proving that the public still back “popping into town” to do their shopping.

All the positives do come with negatives though – in the same CBI Survey, retailers reported that they expect sales to slow again in August and orders to flatten out. With subdued real wage growth, households are still feeling the financial pinch and retailers are still battling with the reduced costs online retailers are able to offer.

Along with the Government’s inquiry into high streets and town centres 2030 to examine how local areas are planning for the future of their high streets, this month’s results should be seen as a step in the right direction to securing the future of the British high street.

HSE guidelines: What are they?

Nick Baldwin — Wed, 14 Mar 2018 17:09:28 +0000

If you run a warehouse there will be numerous health and safety rules and regulations you must follow, from ensuring your staff are protected and correctly following rules, to how you store your stock. But, what exactly are the guidelines set out by the Health and Safety Executive (HSE) for your racking installations?

According to HSE guidelines, which aren’t legally binding but if followed are normally enough to comply with the law, it is recommended that any contractors inspecting or installing racking in your warehouse are some sort of SEMA approved expert. However, it is a warehouse owner’s legal responsibility to ensure that any people working in their warehouse are “competent”. The HSE CDM regulations state that if an owner has reason to believe that the person working in their warehouse is not “competent” and they do nothing about it, they are breaking the law.

While the HSE guidelines don’t have to be followed to the letter (unless stated explicitly as law or legal advice), they are a good starting point for companies new to occupational safety legislation. Making sure you actively follow the guidelines is good practice in ensuring your racking and warehouse are safe.

The HSE guidelines also cover what you should do before you even have a contractor in your warehouse to install your racking – and what we covered in our blog “does your warehouse need redesigning?” – and that’s to ensure you thoroughly plan. Before having new racking installed in your warehouse, it’s important to ensure your plans are efficient and safe – one way to be sure of this is to work with a SEMA approved installation company who is dedicated to the continuous improvement of their business.

Once you have the best possible racking installed in your warehouse, it is important to ensure it undergoes regular inspections and maintenance by, you guessed it, a SEMA approved company. The HSE recommends that you have an inspection at least once a year to ensure your racking is up to standard.

As a SEMA approved installation company and all our installers registered under SEIRS, you can be sure all your warehouse installations are completed to the best standard and comply with the law. We also provide a tailored aftercare plan to all our customers – all customers receive regular racking condition surveys and we assist them in demonstrating best practice as part of their own health and safety structure. All surveys and inspections are carried out to the Storage Equipment Manufacturers Association (SEMA) guidelines.

Get in touch with the Bluestones One Retail team to find out how we can help you.

Merchandising your store for Christmas

Nick Baldwin — Fri, 17 Nov 2017 16:56:25 +0000

Now Halloween and Bonfire Night are out of the way, shoppers’ thoughts are firmly set on the festive period as they hit the high street in droves for what has to be the most important time of year for retailers.

It doesn’t matter if you’re a small independent retailer or a major brand, making the most of your holiday merchandising is a sure-fire way to give your sales a seasonal boost. Here are some of our top seasonal merchandising tips to inspire you when putting together your Christmas store plans.

Visual promotion

The festive period is probably one of the best times to have the most fun with your visual merchandising – the key is to show some restraint though and have a clear plan of how the store is going to look. It is important to keep your brand, and customers, at the forefront of everything you do.

If you plan on making the most of every spare inch available to get your stock onto the shop floor, you need to ensure it is displayed in the right way. Visual displays like free-standing units, dump bins, and strategic signs can help you sell more while maintaining the appearance of your store.

Boost impulse buys

During the festive period, people are more likely to part with their cash but are also more likely to forget about the Christmas essentials. Take advantage of this to boost sales by strategically placing products near the till. By doing this and placing products in enticing displays and dump bins you can increase impulse buys dramatically.

Don’t forget to group similar products together as well – if someone is purchasing wrapping paper they will also likely need bows, gifts tags, sticky tape, and scissors. Grouping items together keep customers in your store for longer.

Highlight smaller ticket items

It isn’t just the big-ticket items that sell well at Christmas. There is a huge market for stocking fillers, so you’re doing yourself a disservice if you don’t give your smaller ticket items pride of place. By placing the smaller gifts next to your big-ticket items, near the till or near the changing rooms your ability to upsell will increase.

Decorations

Christmas is exciting but you need to fight the urge to go over the top and turn your store into a faux winter wonderland. With your seasonal merchandising efforts, the aim is to enhance your store and sales, not act as a disturbance to your customers. Your customers should be able to navigate your store with minimal effort and not have to overcome tinsel-tousled mess to find the items they need.

How to improve your POP installation

Nick Baldwin — Tue, 19 Sep 2017 13:59:20 +0000

We know how important point of purchase (POP) installations are in a retail environment, which is why it can be really frustrating when something goes wrong with them or they are not working as effectively as they could be.

We’ve had numerous retail customers over the years who have used other POP installers initially. They’ve called us because they’ve not been installed properly, they look untidy and they’re not working properly.

After completing thousands of POP installations, we’re in a great position to advise on what a good POP installation looks like. Here’s our advice…

Getting the right POP display

Getting the most out of a POP display starts at the very beginning. POP displays come in all shapes and sizes and picking the right display from the very beginning is important.

Nothing looks more untidy than products on a POP display that’s not suitable. We see it time and again where stores have been advised poorly by installers and shop fitters. Carry out research, go into competitor stores and see what POP displays they are using and for which products.

Typical POP issues

Check spelling before ordering POP displays and then check it again. There’s nothing worse than glancing over a proof, approving it and realising that upon taking delivery there are words spelled wrong or that the grammar is poor.

Don’t rely on the designer to double check the work, they may have hundreds of pieces going out that week.

Using the right material is important too, and this goes back to picking the right POP display for your products. By using a local supplier where possible, you can visit the warehouse or factory and see a physical copy of what your display could look like.

There’s nothing better than a POP display that is perfectly fitted to its products and if it’s possible to get a sample or view it before purchase that can help an incredible amount.

Having POP displays installed professionally

By working with customers all over Europe we often see an immediate solution for the improvement of POP displays. In small to medium size retailers in particular POP displays are often installed by the staff working there.

We can provide advice and installation services that can dramatically improve and deliver better sales results from existing POP displays.

If it’s a new display, expert merchandisers and installers can help advise on the techniques that will result in an increase in sales as a result of a better POP display.

Why are POP displays so important?

Nick Baldwin — Wed, 23 Aug 2017 10:34:33 +0000

Why are POP displays important? POP displays or point of purchase displays are evident throughout retail stores today. They feature in smaller retailers, family-owned companies and larger, international retailers.

Shopping in the United Kingdom is worth an estimated £358 billion in 2016 and recent reports have indicated that in-store purchase decisions have increased by 90%. This is in spite of e-commerce which offers customers a different arena in which to shop. Point of purchase displays have shown to have a positive impact on sales volumes.

What are POP displays?

A point of purchase display is a unit that is placed in a store specifically designed to increase a basket’s sale size. It is a marketing tool used by retailers, displaying marketing material next to a product. It promotes the benefits of products to the customer, encouraging them to make a purchase decision within the store.

POP displays are usually found where purchasing decisions are made, such as next to the checkout. Although they shouldn’t be confused with endcap displays, another merchandising tool used by retailers. An endcap sits at the end of an aisle and is often rented out by retailers to enhance the visibility of a product.

POP displays can be utilised in many different formats, however. The most popular is through the use of signage. Retailers are also adapting to modern technology and introducing digital signage and video to attract customers’ attention. Studies have shown that products with signs outperform their counterparts without by up to 20%.

Making the most of POP displays

As well as embracing technology to improve POP displays, retailers also use a variety of successful methods to increase sales. Some stores set out areas dedicated to pop displays, almost creating a mini store within a store. Some stores use pop displays as soon as customers walk through the door. Retailers such as B&Q showcase their best stock or seasonal stock at the entrance accompanied with eye-catching banners promoting the benefits. This instantaneous sales pitch prompts customers to begin thinking about products that they may not have even been coming in to buy.

POP displays also act as an additional staff member. The features and benefits on signage answer many questions that customers may have about the product. Customers don’t need to hang around waiting for a busy sales assistant to answer questions. Purchase decisions will, therefore, be made much quicker.

6 tips for improving retail merchandising

Nick Baldwin — Tue, 18 Jul 2017 12:48:29 +0000

Across the world, there are successful retail stores increasing basket sizes because of a few simple tactics. Ever noticed why some of the most exciting things are at the entrance of Costco? It’s because they want to showcase the best stock.

If you operate a small store, or even if you’re a manager of a large chain, we’ve put together 6 easy to implement merchandising tactics that will help add value to your shoppers’ basket.

Display the wants not the needs

Customers already know why they’re going into a store, more often than not it’s because they need something. Use a display to feature the higher value items that they want. For example, a customer shopping for screws in a DIY store is likely to get a sense of wanting if they see a high-quality cordless drill.

Break up the aisles with a display

Studies have shown that 20% of a store’s merchandise is looked over due to the monotony of aisles. By introducing areas with different layouts, customers refocus their attention on the products in that area.

Sell the lifestyle and benefits

An effective part of merchandising is showing the customer what the benefits are to them. By incorporating effective product signage and imagery customers can begin to buy into the lifestyle that you are promoting and they will have a better understanding of how the products can benefit them.

Showcase your best stock first

When customers walk into a store they want to be immediately impressed. By showcasing your high ticket items customers are seeing the best you have to offer as soon as they enter. B&Q is a prime example, effectively showcasing items such as hot tubs and BBQs during summer months.

Rotate the featured stock

It’s important that the everyday items remain in the same place so that returning customers know where to head. However, to increase basket size throughout the year, relevant stock should be rotated. After all, there’s no point in promoting BBQs in November (unless you live in Australia!)

Prop your window display

Customers are attuned to window displays of products. Almost every store on the high street showcases their products. To gain an edge over your competitors try incorporating eye-catching props that may not necessarily relate to your products but will grab the attention of the shopper.