Department Retailing - Mintel

Online

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• In June 2012, Debenhams introduced free Wi-Fi to its 167 stores, following a trial run with O2 in three UK stores. Using the Debenhams app, the service enables customers to access information, special deals, check stock for sizes and availability and arrange for bulky goods to be home-delivered.

Source: Debenhams

• House of Fraser used social media to attract a younger consumer base. In a partnership with the National Union of Students, House of Fraser offered a 10% discount to students that liked its Facebook page in February 2012.

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In-store experience

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• Debenhams announced plans to dramatically revamp the exterior of its Oxford Street flagship store in January 2013. As part of the revamp, the retailer will introduce an over-cladding system to create a ‘Kinetic Façade’ that will move in response to the wind, creating a direct interface between the built and natural environments. The revamp is scheduled for completion in November 2013, and has been designed by artist and sculptor, Ned Kahn, in conjunction with Archial Architects.
• As part of its latest drive in the beauty category, Harvey Nichols has introduced beauty product vending machines in its department stores. A Beauty Mart vending machine was installed in the Fifth Floor Knightsbridge restaurant, selling products such as skincare. This enabled sales to be extended outside of normal trading hours. The vending machines will be installed in more stores in 2013.

Source: Harvey Nichols

Mintel Inspire Trends: This innovation ties in with Mintel’s Inspire trend Cool Vending. Consumers’ demand for 24/7 access to just about everything has radically altered the way we shop. It’s decreased our patience when it comes to things like store hours, delivery time and the prospect of driving across town to rent a movie. This phenomenon is still relatively young in the West. But there is a growing sense that consumers have become conditioned by their online purchasing behaviour to consider buying big-ticket or highly personal items from a machine – no need for a salesman or clerk to conduct the transaction – which indicates enormous potential growth and innovation in the world of vending.

• M&S introduced contactless payment to 25 of its busiest London stores and Simply Food stores in August 2012, following a trial at railway station stores.
• Selfridges launched a No Noise Campaign in January 2013, in an attempt to reduce the audio and visual noise that people living in London experience every day. The retailer situated pods around the store that delivered positive and calming messages and opened a Quiet Shop selling popular items with their branding removed, such as Heinz Baked Beans. As part of the initiative, the department store retailer also opened a Silence Room located on the retailer’s fourth floor, created as an area for husbands to relax while their wives shop, keeping them in the store for longer. Before entering the room, customers must remove their shoes, gadgets and anything else that may make a noise.

Diversification

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• In July 2012, Harrods announced plans to open branded hotels in prime locations worldwide, such as London, New York, Paris and China. Set to be built on sites already owned by Qatar Holding, the hotels will look to add value to the retailer.
• John Lewis teamed up with the travel firm Kuoni in October 2012 to sell holidays. As part of the partnership Kuoni concessions were introduced to four stores.
• M&S launched its own bank with the first opening in its Marble Arch flagship. With the venture M&S looked to capitalise on the strength of its brand and hugely trusted status in an industry that has suffered from a poor image among customers.

Mintel Inspire Trends: This ties in with Mintel’s Inspire trend Extend My Brand. While the concept of brand extension is hardly new, it has taken on a different meaning in the wake of the recession. Tighter budgets caused consumers to take stock of their spending behaviour and in particular, re-evaluate whether or not their go-to brands were worth the cost. As such, established brands have begun to leverage that trust in new ways; namely, by extending it into new categories. For instance distrust and disappointment with the banking sector has opened the doors to outsiders like Tesco and Walmart. Brand extension is also blooming via the concept of one-stop shopping, where retailers offer ancillary goods and services alongside their standard fare. This appeals to a convenience-driven consumer looking to kill two (or more) birds with one stone.

Multichannel

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• House of Fraser was reported to be testing online concept stores in Aberdeen and Liverpool in October 2012. The stores will feature banks of iPads, computers and interactive screens, which consumers can use to access more than 1,000 brands.
• John Lewis opened its first small department store in Exeter in October 2012. Measuring 65,000 sq ft, which is less than half the size of an average John Lewis department store, the store features interactive information screens and digital store guides. To generate interest in the new store six weeks prior to opening, John Lewis launched a two-floor pop-up shop in Exeter in September 2012. The shop acted as a click-and-collect hub, and sold a narrow range of products across fashion, beauty, consumer electronic and home products.

Source: John Lewis

• M&S opened its new concept store at Cheshire Oaks in August 2012, which is the second-largest store in the retailer’s portfolio. The store features a host of in-store innovations, including free Wi-Fi, 12 ‘Browse and Order’ points, a click-and-collect area and a large touchscreen in the new-look beauty department that enables customers to receive a virtual makeover. iPad equipped assistants are also on hand to help customers.

Source: M&S

Sustainability

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• John Lewis committed to developing a ‘closed loop’ waste plastic strategy in January 2013, which will see thousands of tonnes of plastics waste from Waitrose and John Lewis shops recycled into usable products.
• M&S launched a nationwide clothes recycling initiative in partnership with Oxfam in April 2012 fronted by TV star and campaigner, Joanna Lumley. The ‘Shwopping’ campaign encouraged customers to bring in their old or unwanted items of clothing to be recycled. In October 2012, the retailer unveiled its first recycled product– a coat made from wool provided by customers in M&S stores or via Oxfam. The limited edition shwop coat went on sale in selected stores across the UK and online in October 2012. Costing £89, the garment was half the price it would have been if made from virgin wool. In the same month, M&S hosted a live knitting installation in its Marble Arch store as part of Wool Week. It offered customers the opportunity to co-create custom pieces of knitwear with New York artist, Andrew Salomone.

Source: M&S

• In June 2012, the retailer launched the world’s most sustainable suit as part of its Plan A sustainable business strategy. All materials used to make the suit are sustainably sourced.
• M&S became the first major retailer to become carbon-neutral in June 2012. In the month, the retailer reflected on the progress it had made in the first five years of its Plan A programme, with 138 of its 180 ethical and eco commitments met, and a further 30 on track.