Uk retail


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Uk retail

  1. 1. September 2011
  2. 2. UK Retail and Lloydspharmacy initiative
  3. 3. Some statistics <ul><li>UK retail sales over £293bn 2010 </li></ul><ul><li>UK retail employed over 2.9m people end 2009, 11% of total UK workforce </li></ul><ul><li>2010 - approximately 286000 retail outlets, 9% of all UK VAT-registered businesses are retailers, total number 188000 </li></ul><ul><li>However, number of empty shops has trebled since 2007 to 29000, 14.5% </li></ul><ul><li>Latest BRC figures for August, sales up 1.5% compared to 2.8% August 2011. Food doing better than non-food </li></ul>
  4. 4. Consumers <ul><li>Consumer confidence poor </li></ul><ul><li>Fear for their job </li></ul><ul><li>Rising inflation and pay freezes leading to less disposable income </li></ul><ul><li>VAT rise January 2011 </li></ul><ul><li>Paying off debt </li></ul><ul><li>Focus on value </li></ul>
  5. 5. Retailers <ul><li>Many retailers closing or reducing number of stores </li></ul><ul><li>Increasingly concentrated market with multiples dominant </li></ul><ul><li>Some success stories e.g. supermarkets, John Lewis, poundstores </li></ul><ul><li>Shopping malls doing better than high street e.g. Westfield Stratford </li></ul><ul><li>Ecommerce, mcommerce, multichannel </li></ul>
  6. 6. IT in retail <ul><li>Some retailers still investing and trialling </li></ul><ul><ul><li>Tesco investing £27m in IT infrastructure </li></ul></ul><ul><ul><li>Ocado trialling use of smartphone for shop wall </li></ul></ul><ul><ul><li>Wilkinson trialling contactless payments </li></ul></ul><ul><ul><li>Sainsbury trialling iPad holder to watch Sky Sports via Sky Go app </li></ul></ul><ul><ul><li>However, trials are expensive for suppliers and can take up to three years of development </li></ul></ul>
  7. 8. Lloydspharmacy Innovation Day <ul><li>How it started </li></ul><ul><li>How it developed </li></ul><ul><li>What was the result </li></ul>
  8. 9. Lloydspharmacy <ul><li>Lloydspharmacy is a community pharmacy chain with over 1,650 pharmacies </li></ul><ul><li>2009 turnover £1.8bn </li></ul><ul><li>Employs approximately 17,000 staff </li></ul><ul><li>Dispenses over 151 million prescription items annually </li></ul><ul><li>Vision is to become a great healthcare brand </li></ul>
  9. 10. How it started <ul><li>Notification of a Lloydspharmacy supplier innovation day in south east England </li></ul><ul><li>Early May 2011, made direct contact with Innovation team in Lloyds </li></ul><ul><li>Initial discussions to explain Enterprise Ireland, our clients and what we could offer </li></ul><ul><li>Clarification from Lloyds as to what they wanted to do </li></ul>
  10. 11. Initial scoping <ul><li>Legal agreement – confidentiality agreement signed by both parties </li></ul><ul><li>Clarification from Lloyds as to product/service areas on which they wanted to focus </li></ul><ul><ul><li>Retail Solutions map </li></ul></ul><ul><ul><li>Lloydspharmacy areas of interest </li></ul></ul>
  11. 13. The questionnaire <ul><li>Identification of potentially relevant suppliers </li></ul><ul><li>Lloydspharmacy pre-qualifying questionnaire sent to 47 Irish companies </li></ul><ul><li>25 companies returned questionnaires </li></ul><ul><li>12 were selected by Lloyds to meet them in Dublin </li></ul>
  12. 14. Preparation <ul><li>Meeting format agreed with Lloyds </li></ul><ul><li>In-depth conversations with Lloyds as to their strategy and requirements </li></ul><ul><li>Briefing disseminated to Irish companies </li></ul><ul><li>Logistics </li></ul><ul><ul><li>Lloyds flights, hotel etc </li></ul></ul><ul><ul><li>Booking facilities at Eastpoint </li></ul></ul><ul><ul><li>Client timings, car parking </li></ul></ul>
  13. 15. Results? <ul><li>Twelve company meetings with six Lloydspharmacy personnel at Eastpoint yesterday </li></ul><ul><li>Lloyds feedback? </li></ul><ul><ul><li>Quality and suitability of companies they met? </li></ul></ul><ul><ul><li>Service of Enterprise Ireland? </li></ul></ul><ul><ul><li>What worked? What didn’t? </li></ul></ul><ul><li>Client feedback? </li></ul><ul><ul><li>Useful to them? </li></ul></ul><ul><ul><li>Meet their expectations? </li></ul></ul><ul><ul><li>More of the same? </li></ul></ul>
  14. 16. Next steps <ul><li>Feedback on the specific company meetings </li></ul><ul><li>Follow up conversations and meetings between companies and Lloyds </li></ul><ul><li>Phase 2 – other product and service areas </li></ul><ul><li>More of the same with other retailers </li></ul>