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Interserve rw 121012_lr[1] Interserve rw 121012_lr[1] Document Transcript

  • SPONSOREDREPORT October2012 YOUR STORES, YOUR BRANDWhythein-storeenvironmentisanimportantpartofthecustomerexperience Inassociationwith
  • Through innovative programmes, genuine empowerment and deep collaboration, we have fashioned transformative change – creating one team that is a perfect fit for this major shopping centre. In fact, with 1.4 million square feet of retail space, 10,000 retail staff and 240 stores, it is less a shopping centre and more a small community. Protecting and projecting that community’s brand now lies at the heart of everything we do and going above and beyond to deliver exemplary customer service has become a passion. With a World Class Customer Service Award secured, alongside sustainability targets, £1 million of efficiency savings and a measurable increase in retail sales, we are bringing all the benefits of single source supply to the shop floor. If your facilities management is in need of retail therapy, come shopping at Interserve. www.interserve.com/support Scan this QR code using your smart phone and see how Interserve’s vision can benefit your operations.
  • INTRODUCTION Facilitiesmanagement is a vital part of retail contents In-store environment 34 Why stores are having to work harder to entice the consumer and convey a retailer’s brand effectively Editor-in-Chief Chris Brook-Carter 020 7728 3593 Acting Features Editor Anna Richardson Taylor 020 7728 3590 Supplements and Projects Production Editor Tracey Gardner 020 7728 4129 Art Editor Jon Hart 020 7728 3519 Production Manager Paddy Orchard 020 7728 4111 Advertising Manager Paul Stewart 020 7728 3555 Commercial Director Mandy Cluskey 020 7728 3586 Managing Director, Retail Tracey Davies 020 7728 3567 In association with F acilities management in retail is an often overlooked area. Some would think this is because it doesn’t have a core role to play in the retail experience, even though it fundamentally does. Facilities services shape our every day experiences. How clean a shop window is; if rubbish is on the shopfloor; how well maintained the changing rooms are; or whether the lift or escalator work. Cleaning, maintenance and security may not be glamorous but they are vital in shaping and enhancing a customer’s perception of the retail environment. Good facilities services should in fact be barely noticed by the customer, but this doesn’t mean they shouldn’t be considered in a retailer’s decision-making process. This is why Interserve has decided to investigate the correlation between facilities services and brand management. Brands are about creating a perception around a product, but it is a retailer’s facilities that deliver the in-store experience. The research found that, although 99% of respondents believe cleanliness and state of repair are important, only 39% and 24% respectively see these disciplines as playing a part in their brand strategy. More concerning is that only 25% of retailers see their facilities management as able to differentiate them from their competition. I’ll remember that next time I walk past a dirty shop or use a broken changing room. In one of the most customer-centric industries, facilities services should be at the core of decision making. Tony Sanders Managing Director – Commercial,Interserve October 12, 2012 Retail Week 33www.retail-week.com
  • 34 Retail Week October 12, 2012 www.retail-week.com in-store environment r etailers’ bricks-and-mortar stores have to aim for increasingly ambitious goals in the face of mul- tichannel development. They can provide a retailer with a distinct advantage over online pure- plays, but also work effectively along- side online channels to enhance the shopper journey. The stores of today have to offer an experience that inte- grates seamlessly with other channels to entice the customer, and retailers are looking to deliver this through a slew of new formats and concepts. In August, Victoria’s Secret unveiled its new flagship store on Bond Street, which includes a giant two-storey video screen playing footage from the brand’s fashion shows, while Marks & Spenceropeneditssecondbiggestshop in Cheshire Oaks, which features a host of in-store innovations, including iPad-equipped assistants and ‘virtual makeover’ touchscreens. Meanwhile, Burberry recently opened its long-awaited flagship store on Regent Street. It houses the world’s largestin-storescreen,onwhichimages andvideofromthebrandaredisplayed. Raisingthebarheightens thein-storeexperience The role of the in-store environment is increasingly important and complex, as stores have to work harder to entice the consumer and convey a retailer’s brand effectively.Retail Week looks at how in-store standards need to meet customers’ expectations Primark also opened a new 82,000 sq ft flagship store on Tottenham Court Road, with a giant LED screen carrying the retailer’s promotional videos, and Aurora Fashions launched new concepts for its Oasis and Coast brands in London. In fact, a multichannel approach will complement,ratherthancompete,with bricks-and-mortar retailing over the next two years. It will drive increased traffic to stores, according to a recent study by CBRE, which canvassed 50 international retailers with a combined store network of more than 32,000 stores globally. In addition, investment in new and existing stores is the number one priority for many interna- tional retailers. The report, The Role of Real Estate in the Multichannel World, predicts that over the next two years, the store is expected to play a significant role in the deliverynetwork,withshoppersopting to pick up from store as well as home delivery. And in-store delivery on online fulfilment is set to play an increasinglyimportantpart–twothirds of retailers intend to use their shops to fulfil online orders at least occasionally. The research also found that within the next two years, 72% of retailers will operate the same or a greater number of stores in their domestic markets (see box, p35). Multichannel behaviour is encourag- ing shoppers to visit stores and is driving additional business to retailers, says Peter Gold, head of cross border retail EMEA at CBRE. “Shopping will continue to be a social experience – store portfolios are not about to shrink,” he says. “The fundamentals of good retail management remain but, ultimately, it is the retailers with strong brands and who understand their engagement with customers that will succeed.” The old adage ‘location, location, location’ remains paramount, but ‘con- sumer, consumer, consumer’ is an M&S’s Cheshire Oaks store has ordering points and virtual makeover touchscreens “It Is not about buIldIng a huge stoRe, It’s about buIldIng a shoppIng expeRIence” Marc Bolland, M&S
  • October 12, 2012 Retail Week 35www.retail-week.com about giving the customer the right experience,whichrequiressteppingup store design, use of technology as well as staff training. Alasdair Lennox, creative director at design consultancy Fitch, stresses that understanding what Fitch calls the shopper’s ‘mind state’ is vital in keeping a customer happy, especially in this increasingly splintered retail environment. According to Lennox, there are three key mind states – locating, exploring and dreaming. Most shops are built around the ‘locating’ mind state – where a customer looks to find a specific product. Locating is therefore about naviga- tion, direction and signage, while ‘exploring’ is about accessing edited amounts of knowledge and informa- tion, and the dreaming mind state provides inspiration to the customer – an almost untapped commercial area, says Lennox. Understanding these different mind states is key and should inform different shopper experiences. “If brands understand the shopper mind state and then create compelling experiences around those, that will create a happier shopper,” explains  Victoria’s Secret on Bond Street has a video screen showing footage from the brand’s fashion shows In association with equally important message to retailers in today’s multichannel age, adds Gold. As M&S chief executive Marc Bolland saidattheCheshireOaksstoreopening: “Itisnotaboutbuildingahugestore,it’s about building a shopping experience.” a mirror to the retail brand So how does the store of today need to reflect a retailer’s brand, and how hard does it have to work to meet customers’ expectations? “We’re trying to make the stores very experiential so there’s a seamless expe- rience between the web and a reason to go to store,” says Ian Dudley, group property director for Aurora Fashions andKarenMillen.Hepointsoutthatit’s almost expected these days to provide a certain level of technology and interac- tivity in stores. The new Oasis store, for example, boasts iPads instead of tills and wi-fi connectivity. “We’re trying to embrace as much of the new technol- ogy as possible,” adds Dudley. “Every- one’s got to up their game to make sure it’s worthwhile going to the stores.” The spend on different areas of the store has also evolved, Dudley adds, withAuroraspendingalotofmoneyon fitting rooms, for example, which used to be almost an afterthought. It is all the future of the store n Within the next two years, 72% of retailers will operate the same or a greater number of stores in their domestic market n 60% of retailers say they will need more shop space across their total network as a result of their multichannel strategy in two years’ time n Retailers are divided on their plans to take stores in “secondary cities” and “small towns” with a similar number saying they will increase as decrease n Online retailing is set to grow faster than store expansion over the next two years; however, retailers are set to increase their coverage of both channels n Online retailing will play a significantly greater role in emerging markets including Central and Eastern Europe, Asia Pacific and the Middle East Source: The Role of Real Estate in the MultichannelWorld “eveRyone’s got to up theIR game to make suRe It’s WoRthWhIle goIng to the stoRes” Ian Dudley, Aurora Fashions Lennox, who also points out that there is a great correlation between the con- sumer’s experience and them buying higher value products. And that’s not about pure style or aesthetics. “Making the store look nicer isn’t the correct answer going forward,” adds Lennox. “It’s about understanding the mind state at the different channels and then creating the most appropriate experience.” In addition, there has been a shift towards online shopping being more
  • P sychologists deem that a first impression can be formed in as little as seven seconds and it can take at least three times as long to change this original perception. Put this figure into the context of a retail environment; where brand perceptions can have a direct impact on customer loyalty and, as such, are instrumental in maintaining footfall and achieving sales growth and it’s easy to see why retailers are placing the customer experience at the top of their agenda. But, where does the role of facilities management fit into this ethos? At Interserve we understand that the right facilities management provision, delivered in partnership with the retailer or managing agent, can enhance the in-store or shopping centre brand experience to ensure that positive, lasting impressions are formed. First impressions Consider the issues that may arise if a facilities team is not doing its job effectively. It is this team’s responsibility to manage the environment that a customer sees. A retail store that is not being cleaned properly will soon portray a negative image, dirty windows, lights that aren’t working, a cafe where there are no clean tables… all very basic examples, but all demonstrate the value that the right support, delivered in the right way can add to the customer experience. Of course, facilities management is much more than a functional role. Retail is a people business and facilities teams are often at the fore, not just in front-of- house services where they may be the first point of customer interaction, but also through the engineering teams behind the scenes that ensure that equipment is functioning properly. The face of the brand Interserve has therefore placed protecting the brand at the heart of its offer by training its staff to deliver customer service that is aligned to the retailer’s values. Since securing one of the largest total facilities management and small works contracts in the UK, Interserve has been delivering better for less for a large financial institution: including a 25% cost saving, and 100% pass rate in front-of-house services. We have taken in our stride 1,600 retail sites, more than 80 office buildings, 900 remote ATMs and many more critical facilities. With a response that matches efficiency and accountability, with flexibility and operational excellence, Interserve is protecting and projecting their brand at every touch point. Elsewhere, Interserve has helped increase footfall by 39%, while projecting one shopping centre brand to 37 million visitors. Through innovative programmes, genuine empowerment and deep collaboration, Interserve has fashioned transformative change – creating one team that is a perfect fit for this major shopping centre. Protecting and projecting that community’s brand now lies at the heart of everything we do. With a World Class Customer Service Award secured, alongside sustainability targets, £1m of efficiency savings and a measurable increase in retail sales, first impressions count in retailEnhancing the in-store and shopping centre experience allows positive, lasting impressions to be formed, according to Interserve Facilities management and staff training help to improve a customer’s shopping centre experience Interserve is bringing all the benefits of single source supply to the shopfloor. One team Facilities management is about much more than services and support, it is about investing in the way employees and customers interact with your company and embody your brand. And at the core of that is people and culture. Our people are often the first point of contact for your customers. And it is their behaviours that are instrumental in shaping your customer’s experience and perceptions. That’s why quality matters at every touch point and why our staff are trained in customer interactions. We recognise that first impressions count, so we make the best impressions first. By embracing your culture, understanding your brand and embodying your values, Interserve can ensure the right support is delivered in the right way, by the right people, to the right people. For further information please contact Tony Sanders on 020 7902 2000 or email tony.sanders@interserve.com AdverTising FeATure
  • October 12, 2012 Retail Week 37www.retail-week.com in-store environment  about the rational experience, while physical stores are more about the emo- tional experience. “They need to tell a richer story and engage much more,” adds Lennox. “It will be increasingly about heart over head, and the experi- ence is where it’s all about.” Beyond design But designing and rolling out a store opening is only the start of the journey – keeping the store relevant is not just about the capital investment in the store opening, says Lennox. “Some retailers are actually putting less into the store build and shifting it towards the ongoing service level – towards brand ambassadorial staff, for instance.” Remaining flexible in the store’s design, while ensuring it remains rele- vant is key, but maintaining standards in store – in its customer service, clean- liness and state of repair throughout its life – are also vital. According to a survey by support services company Interserve, nearly 80% of retailers questioned said the In association with “It WIll Be aBout heaRt oveR head, and the expeRIence Is WheRe It’s all aBout” Alasdair Lennox, Fitch Your stores, Your brand This attitude to in-store facilities management is borne out by findings from an Interserve survey: Do you think customers are more or less concerned by the cleanliness and state of repair of the stores they shop in than they were two years ago? To what extent do these stores facilities manage- ment functions impact on your organisation’s brand positioning? (Bars show percentage of the total respondents selecting the option) To what extent is facilities management and store experience by your organisation part of its brand strategy? How much does the impact of brand image in your stores get discussed when looking to reduce running costs? 0 10 20 30 40 50 0 10 20 30 40 50 0 10 20 30 40 50 60 70 80 0 5 10 15 20 25 30 35 40 40% 29% 25% 6% 1 2 3 4 5 0% 22% How do customers express their satisfaction or dissatisfaction with the state of repair of your store? (Respondents chose all that applied) 0 10 20 30 40 50 60 70 80 61% 40% 19% 32% 7% 38% 3% 25% 53% 19% Who has responsibility for defining the store experience aspect of your brand management? 0 5 10 15 20 25 30 5.5%5.5% 24% Store design team They comment to our store staff It’s always considered It is a crucial part in our business strategy In-store cleaning They are much more concerned than two years ago Store operations team They contact our customer service staff It’s sometimes considered It plays an important part in our business strategy Security services They are a little more concerned than two years ago Marketing team They fill in customer satisfaction surveys for us It’s rarely considered It plays a small part in our business strategy Customer services They are not more or less concerned than two years ago Store managers/area managers They comment on social networking sites such as Twitter and Facebook It’s never considered It plays no part in our business strategy Maintenance They are a little less concerned than two years ago Facilities managers Trade suffers in stores that are less well maintained Window cleaning NB ReSpONDeNTS CHOSe A NuMBeR FROM 1 TO 5, WHeRe 1 IS NOT AT ALL AND 5 IS A LOT They are much less concerned than two years ago Other We don’t know/measure how satisfied or dissatisfied our customers are 14% 29% 22% 49% 35% 4% 12% Following the opening of a store, keeping up standards in maintenance and cleanliness is crucial to provide the right in-store experience. Tony Sanders, managing director at Interserve, says: “We’re all aware of how important the shop-front is in terms of shaping a customer’s expectations. However, the focus is often on the layout, colours and designs, rather than cleanliness. But it is these often overlooked factors that really shape a customer’s impression.” Sanders adds that facilities services are much more than services and support. He explains: “It is about investing in the way employees and customers interact with your company and embody your brand.” Burberry’s flagship on Regent Street houses the largest in-store screen 
  • 38 Retail Week October 12, 2012 www.retail-week.com in-store environment store experience and facilities manage- ment was a crucial or important part of their brand strategy (see box, p37). In addition, 40% believed that cus- tomers were more concerned now than twoyears ago aboutthestateof repair of thestorestheyshopin,whilemorethan half believed that the state of stores was extremely important to customers’ perception of a retailer’s brand. As one respondent put it: “The store is the main selling point to your business, get this wrong and the potential customers do not even walk through the door. It has to be 99.5% right – this then will flow down to your company and brand image.” “Stores have been evolving over the past few years to adapt to their role as being a more social and engaging experience,” says Tony Sand- ers, managing director of commercial at Interserve. “But to deliver this personal and engaging experience requires even cleaner, smarter and well-presented facilities.” So attention to the in-store experi- ence needs to be paid at all levels, from the high-profile opening, to the detail of facilities management – a formula that can only grow in importance as the retail landscape continues to evolve. the importance of facilities management In association with If done right, facilities management can give our customers a professional and consistent brand image across the board. Clean and well-presented outlets result in a more appealing retail space which influences our customers’ inclination to buy.” It can positively influence brand image by providing a positive retail environment, which encourages customers to return.” Facilities management has a positive influence on brand image by ensuring that the store is clean and presentable, which then enables displays to be eye-catching.” It reinforces the brand values and secures the brand as reliable and of high quality.” By replicating the overall brand experience in the shop experience, it can influence the brand image – and by not creating any distractions from the shopping process.” [It can lead to] increased positive feedback through many mediums, higher levels of customer satisfaction driving higher footfall, sales and so on.” The store is the main selling point to your business, get this wrong and potential customers do not even walk through the door. It has to be 99.5% right, this then will flow down to your company and brand image.” When you want to market part of the store portfolio into upmarket or premium segments, yes, facilities management can influence the persuasiveness of your brand positioning and image.” presentation of premises and offer reflects the staff and company’s attitudes to both service to customers and quality of products.” It affects the brand highly – if the store doesn’t look great, it won’t attract customers.” Primark’s new store on Tottenham Court Road has an LED screen displaying promotional videos “delIveRIng thIs engagIng expeRIence RequIRes smaRteR and Well- pResented facIlItIes” TonySanders,Interserve Some of the survey respondents share their thoughts on how facilities management can positively influence their brand to enable an improved customer experience 