A man walks into a convenience store for a loaf of bread and a carton of milk. He knows the bread is on deal as a personalised message has been sent to his smartphone, while the shelf-edge video on the milk fixture informs him it has an extended shelf life of 14 days. He proceeds to the till to collect his digital loyalty ‘stamp’ and pays for his goods by touching his phone against an NFC-enabled device. Satisfied with his visit, he returns home on his hoverboard.
OK, so the hoverboard is still a work in progress, but the rest of this shopping scenario is perfectly plausible now thanks to new digital technologies that are enabling independent stores to compete on a more level playing field with the giants of the retail sector.
As our business barometer on page 42 shows, many independent store owners still view technology as an irrelevance or even something to be afraid of. Yet it has become-install. And with consumers showing an insatiable appetite for cutting-edge gadgets and gizmos, there’s no better time for indies to embrace it.Here are the key technologies you should be considering if you are an independent retailer:
Communal online store
What is it? A scheme that gives smaller indie retailers the chance to set up an online store together.
How does it work? The Foodie Local scheme allows retailers to customise their own online store, upload product information and manage home deliveries. Open High Street, meanwhile, is a Herefordshire-based online service that allows consumers to order products for delivery from a variety of retailers.
Why should indies use it? Foodie Local enables retailers to go online quickly with no upfront cost or complicated system integration and to reach new customers, drive sales and improve customer loyalty.
Energy-saving ‘packs’
What is it? A package of energy saving technologies.
How does it work? Retailers save money by collectively installing several technologies. EnviroGlow’s range includes high-efficiency air movement fans for fridges and voltage optimisers for freezers, as well as light bulbs and digital devices.
Why should indies use it? EnviroGlow users report savings on energy bills of up to 40% with a payback period on the investment of under two years. “The projections, project management and overall customer care has been outstanding,” says Bargain Booze senior development manager Roger Shenton.
Click & collect lockers
What is it? Goods are ordered from online stores and then delivered to a local dropbox in a c-store rather than to the customer’s home.
How does it work? The items are placed in a secure locker at a store of the customer’s choosing. The customer is then emailed a secure pick-up code that allows them to retrieve their goods.
Why should indies use it? Because it could be a potential moneyspinner. Firstly store owners can generate income from the locker owner taking space in their store. Plus customers picking up parcels may decide to shop. Amazon has locker partnerships with.
App loyalty schemes
What is it? Loyalli is a loyalty scheme available through a smartphone app.
How does it work? Consumers download the app, which shows them which businesses in their area are signed up to the scheme, then every time they make a purchase from a participant store, consumers scan a QR code at the checkout to collect a digital ‘stamp’.
Why should indies use it? The app increases customer retention and is a source of free advertising as customers are alerted to participating shops via their smartphone. Customers can then post details of their purchase on social media. Daily updated data allows retailers to analyse the programme’s success
Digital advertising
What is it? Shelf-edge digital advertising that delivers brand and marketing messages direct to consumers.
How does it work? Digital Vision’s network of screens allows brand messages to be varied by location and by time, and screens can be programmed to display new messages in minutes.
Why should indies use it? Point-ofsale screens can increase brand awareness and drive sales. When Russian Standard vodka promoted its brand in the Rhythm & Booze off-licence chain using Digital Vision screens, weekly lager sales rose 39% to 59% while Russian Standard’s share of in-store vodka sales increased from 6% to 9%. .
Wi-Fi
What is it? Wireless in-store internet
How does it work? Services such as BSkyB’s The Cloud allow businesses to provide in-store internet access for customers with Wi-Fi enabled phones, tablets, laptops and entertainment devices.
Why should indies use it? Consumers increasingly expect free Wi-Fi access wherever they are. For an annual fee of £99, The Cloud allows grocers to give consumers access to information and special promotions at point of sale. The landing page greeting customers as they log into the Wi-Fi is branded to match the individual retailer and can be used to point shoppers in the direction of special offers.
Extra long-life products
What is it? Ambient products such as sandwiches, juices and ready meals that employ cutting-edge technology in manufacturing to extend shelf life.
How does it work? It depends on the product but Coldpress juice bottles, for example, are filled chilled – rather than hot – and then placed in high-pressure vessels, which lock in the flavour.
Why should indies use it? For indies that don’t have the space or money for fridges and freezers, long-life ambient products reduce waste, enabling retailers to retain more margin. The technology also allows retailers to stock lines they could not previously offer such as ready meals.Extra l- bottles - uthat don’t for,-e, enabling retailers toThe technology also slines they could not previously offer such as ready meals
Online crime reporting
What is it? Facewatch is a free image-sharing and online reporting system targeting low-level crimes in shops, hotels and licensed premises.
How does it work? Members can post information and both moving and still images online where they can be viewed by the police and other retailers. Businesses can then place a ban on an individual or report the incident to the police on a case-by-case basis.
Why should indies use it? Aside from giving retailers the ability to share information on shoplifters, Facewatch cuts out the bureaucracy of paper reporting. It also enables analysis of crime trends at individual store and multi-site level.
Shop Scan Save
What is it? Shop Scan Save is a free iPhone and Android app that allows shoppers to redeem exclusive money-off deals at participant stores.
How does it work? Shop Scan Save holds a unique ID on a smartphone, which allows users to earn and redeem offers from 22,500 stores nationwide using PayPoint PoS.
Why should indies use it? The scheme boosts sales, encourages customer loyalty, and the technology itself is easy to use, according to Ramesh Patel, owner of Duchy Stores in Greater Manchester. Retailers save time by not having to deal with cut-out vouchers and the money is refunded automatically within six days.
NFC mobile payments
What is it? A means of paying for goods and services without the use of cash or credit cards.
How does it work? NFC enables smartphones and tablets to exchange data when touched together or brought into close proximity. Consumers pay by pressing their phone against an NFC-enabled device.
Why should indies use it? NFC is a more streamlined method of payment and enables the consumer to redeem coupons and vouchers, all of which will have a “profound effect on encouraging consumers to get back to the flagging high street”, says Paul Crutchley, market development director at the GSMA.
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