In this article we are going to look at trends in the retail industry. Some of these include how the retail industry is becoming more and more competitive and how the DIY market is resurging. We are also going to look at the introduction of new technology such as the Google store.
Google store
Google has expanded into the physical world with a retail store in New York City’s Chelsea district. The “Google Store” will showcase products from the company, its partners and third-party accessories.
The Google Store features an immersive experience. In addition to being a showcase of Google’s products, the store is designed to mimic an actual retail setting. To that end, the facade is adorned with changeable overlay graphics, dynamic two-sided displays and a custom transparent LED screen.
For starters, the store’s entrance has a 17-foot tall glass “Imagination Studio” that features changing exhibits. It is also home to the company’s latest product, the Pixel Slate.
At the back of the store is a collection of “sandboxes”, each highlighting a different Google product. This includes an interactive QR code scanner, a custom transparent LED screen and a hero product: a “Discovery Box”.
The best part is that customers can interact with the devices. As an example, they can share a photo from the room on social media and email it to their friends. They can also use a contactless checkout feature to make the checkout process easier than ever.
The Google Store has also launched a new Shopping Experience Scorecard. This is a tool that allows merchants to track a variety of metrics, including shipping speeds and return costs. While the scorecard won’t help you sell more, it will give you a better idea of what shoppers are looking for and how well you are doing at it.
Another useful tidbit is the fact that Google has a free inventory tracking solution for small merchants. Merchants can upload a local assortment to the business profile and then see which products are the most popular in their area.
Aside from the Google store, other tech-related trends include the growth of e-commerce in the United States, which has reached 15% of total retail sales last year. In addition, omnichannel shoppers are increasing in numbers, and retailers are leveraging technology to compete with e-commerce.
Other notable trends in the retail industry include Apple and Microsoft, which both have a well-established retail presence. However, retailers need to take a more holistic approach to the digitalization of the customer experience.
Kingfisher’s resurgence in the booming DIY sector
Kingfisher plc is Europe’s largest home improvement retailer. It owns B&Q and Screwfix. The company also owns a stake in German electrical goods retail chain ProMarkt. In addition to these brands, it operates in eight European countries.
Home improvement retailers have enjoyed a resurgence following the COVID-19 crisis. However, it’s not yet clear how this will affect Kingfisher’s bottom line.
With the majority of its revenues coming from the United Kingdom and France, the company is exposed to the rigors of the UK and French markets. But it has rebranded itself to ‘Powered by Kingfisher’ under new chief executive Thierry Garnier.
The home improvement market has undergone a transition, with retailers like Homebase no longer focusing on tools. Instead, the company has introduced eco-friendly products and launched a water conservation campaign.
While the company has been in a bit of turmoil this year, it still expects to see positive growth in most of its categories. The firm will give a trading update on Thursday.
Like-for-like sales in the first quarter of 2021 are forecast to be 24% higher than the previous year. Kingfisher’s total dividend is set at 8.25p per share. This is slightly lower than the 3.33p paid in the previous year.
In addition to its own results, Kingfisher will also be watching for signs of the wider industry’s recovery. Some of the country’s biggest DIY brands will report their sales.
Earlier this year, Kingfisher announced plans to open 50 Screwfix stores in the UK and Ireland this year. This is part of a larger plan to boost its home improvement retail operations.
The company said its like-for-like sales in the third quarter of the year were 15% higher than the same period last year. However, the owner warned that like-for-like sales for the rest of the year could fall between seven and three percent.
For the current financial year, the company plans to open another 29 Screwfix stores and to complete the reorganisation of its general merchandise business as Woolworths Group plc. At the same time, it will downsize some of its biggest B&Q outlets.
Technical innovation introduced by X5 Group
X5 Group, the largest retail company in Russia, is actively introducing technical innovation in its retail industry. The company operates Perekrestok, Kopeyka, Pyaterochka and Karusel chains. In recent years, it has introduced self-checkout tills in its stores. It also works with accelerators and venture capital funds.
As part of its sustainability strategy, the company promotes healthy lifestyle and availability of quality food products. Besides, it supports local communities through charity programs and equal opportunities for employees.
In December, the X5 Group adopted a sustainable development plan based on UN SDGs. It plans to install payment technology at 3,000 stores in Russia by the end of the year. However, this will depend on the results of the first pilot phase.
This month, X5 will implement self-checkout tills at its Pyaterochka stores. It is expected that this project will have positive response from customers. Using video and artificial intelligence, X5 will be able to monitor the freshness of products. Store staff will also be notified if they need to tidy sections.
Another pilot project, which was announced in 2010 under the head of Rusnano, is called the “Store of the Future”. The system would use RFID tags to allow customers to easily checkout. According to the head of Reyuniko, Martynyuk Mstislav, the goal of the project is to create a network of RFID tag readers in X5 stores in Russia.
According to Denis Levchenko, Head of Innovations at X5 Retail Group, the company searches for innovative solutions from around the world. Startups are invited to apply for the program. They will be evaluated by experts from the X5 Group, Beeline, Hoff, M.Video-Eldorado and other partners.
X5 also launched a program called Plug and Play, which works with startups from around the world. It enables startup founders to pitch their solutions to retail and tech partners. Last year, X5 was the first Russian company to join the program as an anchor partner.
Currently, X5 operates two prototype stores. One is 20 square meters and uses a mobile app. The other is 30 square meters. The store features shelving control projects.
Barrier to entry
When a firm is entering a market, it faces a number of potential barriers. These include legal, regulatory, operational, and financial factors. Depending on the industry, these barriers may be natural or artificial.
For example, a lawmaker may create a statutory monopoly to prevent competition. Similarly, an industry might have a licensing requirement, or a municipal government might provide a single business with the right to do a certain type of work. Other examples of barriers to entry include the availability of qualified personnel, capital requirements, and location.
A key factor in overcoming barriers to entry is mindset. It is important for new players to have a unique value proposition to differentiate themselves from competitors. This can be achieved by delivering low-cost products and offering improved features. In addition, new entrants will need a large marketing budget to build awareness and attract prospective customers.
Another major barrier to entry is the availability of store locations. Consumer retailers might lack shelf space for additional brands. They might also have long-term contracts with distributors to sell a specific brand. Customers may not be willing to make a change from an existing brand.
An existing company’s brand and customer loyalty serve as a strong barrier to entry. This is an artificial barrier because it is imposed by the existing firm. However, a brand’s unique image can be used to develop a following and create a niche market.
The cost of starting up a new business is another key barrier to entry. Most firms, especially in the retail industry, require a significant investment before they can even begin operations.
Many firms enjoy a competitive advantage in the form of economies of scale. Their distribution networks, customers, and other assets can benefit them by making them more difficult for new players to enter.
The best way to overcome these barriers is to have a well-thought out plan. Without a roadmap, a business may not survive. Often, businesses that succeed at overcoming barriers to entry have a strong return on investment, which is attractive to investors. Using modern technology to develop a niche market is an effective way to overcome these issues.
