After too long a break, Retail round up of news is back.
Primark opens second Oxford St Store; coincides with Morrisons’ announcement
Fashion retailer Primark opened a second store on London’s Oxford Street, and one of its biggest stores in the UK.
The new 82,400 sq ft store is spread over four trading floors and features large screens displaying products and promotions throughout. Opening ahead of the Christmas trading period, the store will create 1,443 new jobs and has a capacity for almost 2,500 shoppers.
Source: Retail Week
Primark has a strong reputation for good quality, stylish fashion and basics at very competitive prices targeted principally at the under 35s – assets on which the supermarkets need to compete in the fashion market.
The opening coincides with Morrisons’ announcement that it will launch its first clothing range next March. The initiative follows two years of planning, and the supermarket aims to challenge rivals Tesco, Asda and Sainsbury’s.
Tesco’s Philip Clarke calls an end to the space race
Tesco’s Group Executive, Philip Clarke, has said that the supermarket has called time on the old retail ‘space race’. In this new world, retail will not be about buying large swathes of new real estate, but about how supermarkets relate to its customers and their communities.
In a comment piece in Retail Week, Clarke insightfully argues that apps have become the new high street. He added: “Digital does not just offer smart new ways to shop. It gives us the opportunity for a warmer, more meaningful conversation with our customers, local communities, our colleagues and the suppliers who we work with.
In an additional piece in the FT, Clarke calls on the government to address both the problem of squeezed household budgets and the opportunities for consumers created by the digital and mobile technology.
Tesco stresses service by ‘Making Moments Matter’
Tesco has launched a new campaign - ‘Making Moments Matter’ - to stress the improvements it plans to make to customer service. It coincides with the end of a conference this week in which store managers from across the country learned more about the Making Moments Matter programme, and follows major increases in staff numbers, staff training and ongoing store revamps.
Our spaceID research which looks at the values of supermarket shoppers shows that ‘pleasure’ is a key battleground for supermarkets. Even amid tightening wallets, the research shows that more enjoyable shopping and ad experiences are becoming even more important
Lidl launches its first TV campaign
Lidl has launched its first national TV ad campaign aimed at converting top-up shoppers into full weekly ones.
The German discounter has looked on as rival Aldi has boosted popularity and sales through its well-received series of ‘Like Brands’ TV ads. Lidl has stuck to its traditional press ads.
But it is currently touting its advertising account, thought to be worth around £18m, to agencies to create a concept to rival Aldi’s successful TV campaign.
Online retail sales down during Olympics
Contrary to expectations, internet retail sales dropped during the Olympics, devoting their time instead to watching sport.
Data from Office for National Statistics show that internet purchases fell from 9% of total retail sales in July, to 8.1% in August.
This is not to say people were not dual screening. Our Olympics Twitter research shows that the Olympics were a huge success in terms of online interactions. It does show however, that if people enjoy TV content sufficiently, they are less likely to be doing unrelated activities online.
Waitrose Twitter gaffe? No...
Waitrose recently asked its Twitter followers why they shop at the supermarket, starting with the phrase "I shop at Waitrose because" and using the hashtag #WaitroseReasons.
The result? A wave of jokes about the supermarket’s upper crust image, including gems such as, "I shop at Waitrose because I once heard a 6yr old boy in the shop say "Daddy does Lego have a 't' at the end, like Merlot?", "I shop at Waitrose because Tesco doesn't stock Unicorn food #waitrosereasons", and I shop at Waitrose because the butler's on holiday. #waitrosereasons".
Do these mean the event was a disaster? Social media demonstrates how brands cannot control what people are going to do with content. People have interacted with the brand, they’ve had some fun, and it's resulted in praise from some quarters and good feedback. Doesn't sound bad to me.
Sainsbury’s launches venture with Nectar owners
Sainsbury’s announced on Thursday a joint venture with Nectar owners Aimia, to allow its suppliers to advertise across all of its communication channels.
Insight 2 Communication (I2C) aims to provide a ‘one-stop shop’ solution to suppliers across both targeted and non-targeted channels and will allow suppliers to showcase advertising material through in-store displays, direct mail and online and in magazines.