Whitepaper: Understanding retail performance

The world of retail is ever-changing but, in recent years, the industry has been evolving at greater speed and consequence. While new technologies have propelled online retailers to almost unthinkable heights, the high street by comparison has taken a dramatic tumble.

The British Retail Consortium’s monthly footfall monitor said footfall was down 1.6% year-on-year in August; the worst result since April.

In 2018 alone, we have seen the likes of Orla Kiely, Poundworld, Toys R Us and Maplin fall into administration. House of Fraser, rescued from collapse following a last-minute buyout, is closing more than half of its stores. New Look is shutting 60 stores; Mothercare is closing 50. In the US, household names such as Sears are in serious peril, and a huge range of brands have had to scale back operations.

Brands as strong as John Lewis – which has enjoyed standout customer loyalty for many years – appear to be struggling, too. The John Lewis Partnership, which also owns Waitrose, reported a 99% dive in first-half profits this year.

In stark contrast, we have seen online giant Amazon flourish in the retail space. In April 2018 its revenue increased 43% year-on-year and rose to $51 billion – a staggering all-time high.

The retail landscape is experiencing soaring highs and plummeting lows. Even the grocery space – which maintains footfall for now as consumers still prefer to buy groceries in person – is not safe from disruption.

Just look at the growth of smaller craft brewers taking advantage of renewed consumer interest in local produce. Challengers like these, in a range of FMCG categories, are disrupting the established brand order.

Being successful isn’t necessarily about cutting-edge technology and ‘blue sky’ thinking – for many brands, turning fortunes around is an exercise in observation and implementation.

Retail performance – a methodology

Marketers need a joined-up approach to retail. KMMS Retail Performance is a modular methodology that covers the whole retail marketing lifecycle, and incorporates learning and optimisation into the process.

The Understanding Retail Performance whitepaper provides a comprehensive review of retail today and tomorrow and identifies how to thrive in this shifting landscape.

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