Retail News CRM

Tag: Retailer

  • Japan’s small retailers gain global e-commerce platform presence

    Japan’s small retailers gain global e-commerce platform presence

    The Japan External Trade Organisation is offering free international e-commerce site access to small-scale domestic retailers to help them sell products in 18 markets abroad.

    The initiative is expected to bolster exports for small and medium-sized businesses, taking advantage of the global popularity of Japanese products as international online trade remains on course to reach US$994 billion next year – up from $530 billion two years ago.

    Twenty four e-commerce sites, including Japan’s Rakuten; China’s Alibaba, Red and JD; and Singapore’s Redmart are signed up to participate in the program, featuring selected Japanese products on their platform without charging listing fees.

    Walmart’s Seiyu and British retailer Ocado will bring Japanese products into markets outside of Asia.

  • Two-hour on-demand delivery platform has Arrived in Australia

    Two-hour on-demand delivery platform has Arrived in Australia

    Think two-hour delivery is years away for Australian retailers? Wrong. It’s already on offer and customers are ready and willing to pay extra for the service.

    Despite some reports suggesting the service won’t be widely available for another decade, eDelivery just launched its on-demand two-hour delivery platform this year, using cutting-edge technology and Uber-style crowdsourcing.

    “The technology is a world-first. It’s super fast, it costs under $8 an order and from the moment the customer places the order online, it takes two hours to have it delivered to them with our 24/7 delivery service,” says eDelivery CEO Carl Popovic.

    Here’s how it works

    1. Customer makes an order online.
    2. The order is directed to the closest location to be picked, packed and labelled within 45 minutes.
    3. Once the order is ready for delivery, it’s directed to eDelivery for collection through its IT platform that is integrated with the retailer’s.
    4. The order is then directed to the private driver network, a crowdsourced network of self-employed drivers who are fully compliant and trained.
    5. The app technology selects the most suitable delivery vehicle of the order. Orders are batched for delivery every 15 or 30 minutes, depending on their size.
    6. A notification is issued to the closest driver. Driver accepts the order via the app and is directed to the store, where he/she scans each parcel and confirms delivery.
    7. With delivery underway, drivers are given the most direct and quickest path for multiple collections and deliveries.
    8. Customers are given a 10-minute advance SMS delivery notice.
    9. At each delivery point, the driver obtains proof of delivery signature, then goes onto the next delivery.

    What customers want

    Even in the past couple of years, consumer expectations have skyrocketed, particularly in terms of delivery, according to PwC’s 2018 Global Consumer Insights Survey. Nearly a quarter of respondents said they would be influenced to buy from a particular retailer if they offered fast or reliable delivery. More than 40 per cent of online shoppers said they would pay extra for same day delivery or for the option to receive their packages within a one or two-hour window of their choosing.

    “When retailers are up against the likes of Amazon who have excellent delivery services, it’s essential that they can compete with a similar offering,” Popovic says. “Customers don’t want to wait for their purchases for a week or two anymore. It’s just not good enough.”

    Two-hour delivery is particularly useful for retailers in the liquor, chemist, grocery, office supplies, hardware, telco or fast fashion categories. Shoppers who go online to fulfil a prescription don’t want to wait for antibiotics in two or three days’ time, neither do those planning to stock up on bubbly for a party they’re hosting tonight.

    At the moment, eDelivery is in talks with department stores, major electronics retailers and chemists to roll out the service.

    “In today’s world, it’s extremely important to be able to use a crowdsourced environment to complete the delivery process. It’s on-demand, it’s cost-effective, it’s efficient, it’s compliant – it basically ticks all the boxes in order for us to fulfil a two-hour delivery service,” says Popovic.

    “It’s time that Aussie retailers step up their game and give customers what they want.”

  • Why retailers struggle to expand globally

    Why retailers struggle to expand globally

    Global retail may be becoming more homogeneous due to international expansion by various chains, but the success of internalisation is patchy within and across retailers, and there have been failures on an industrial scale.

    This made me curious as to why a retailer fails in some markets and not others. It turns out there are a few common themes. Here’s what I’ve been able to discern from some of the more notable and/or recent failures and market withdrawals.

    Walmart loses the culture wars

    The Arkansas-based behemoth closed 269 stores worldwide in 2016, just over half of which (154) were in the US. Its efforts in Germany and Korea were two examples of a lack of cultural understanding and demonstrate why cut-and-paste is ineffective.

    Walmart pulled out of Germany in the late noughties, having learned that what is “customer service” in one country may be offensive in another. German customers, for example, were offended by greeters and Walmart’s 10-foot rule (greeting/interaction/eye contact if coming within 10 feet of a customer). Germans didn’t like having their groceries bagged or taken to their cars. Walmart was also using plastic bags in a country that’s very eco-conscious. Walmart’s employee policies and lack of understanding of German labour laws and unions resulted in it being considered anti-democratic, and its employee “no fraternisation” policy grated. To add insult to injury, EDLP pricing wasn’t a differentiator in a country with Aldi, Lidl and Kaufland.

    Walmart also pulled out of South Korea in the late noughties. The retailer didn’t understand the cultural importance of Korea’s local fresh food markets and that Koreans understood the nature of supermarkets as having a dry-goods focus rather than food and beverage. Koreans are frequent shoppers doing top-up shops, not the stock-up trip nature of a Walmart format. And the company’s locations outside cities didn’t work because Koreans wouldn’t travel to shop.

  • H&M announces opening date of new Botany store

    H&M announces opening date of new Botany store

    H&M has announced the opening date of another bricks-and-mortar store in New Zealand, with the launch of Botany Town Centre location set for 2 May 2019.

    The retailer currently operates four stores in the country, with plans to open a 5th location at Tauranga Crossing on 4 April 2019, making the Botany store its 6th location.

    Last week, the fast fashion giant revealed there is already a 7th store in the works. It is set to open at Chartwell Shopping Centre this winter.

    The Botany Town Centre shop marks H&M’s third location in Auckland, following the opening of H&M at Sylvia Park Shopping Centre in October 2016 and Commercial Bay in 2018.

    Spanning approximately 2000sqm, the single-level store will showcase apparel and accessories for men, women, kids and baby.

    “We are thrilled to finally announce the opening date for our third Auckland store, and look forward to greeting our customers with an incredible fashion destination within a superb shopping centre” said Daniel Lattemann, country sales manager for H&M New Zealand.

    H&M entered the New Zealand market in 2016.

  • Kathmandu suffers a data breach, customers potentially exposed

    Kathmandu suffers a data breach, customers potentially exposed

    An unidentified third-party has breached Kathmandu’s website and potentially accessed customers’ personal information and payment details, the outdoor retailer revealed on Wednesday.

    The business was alerted to the breach, which took place between January 8 and February 12, 2019, through bank fraud monitoring.

    A Kathmandu spokesperson told that the business is currently investigating how many customers are affected by the breach, but that it remains an ongoing process.

    “Whilst the independent forensic investigation is ongoing, we are notifying customers and relevant authorities as soon as practicable,” Kathmandu chief executive Xavier Simonet said.

    “As a company, Kathmandu takes the privacy of customer data extremely seriously and we unreservedly apologise to any customers who many have been impacted.”

    The business has enlisted the help of external IT and cyber security experts to assist in investigating the circumstances, and to confirm which customers have been impacted.

    While the financial impact of the incident is still unclear, the dual-listed retailer saw its stock price fall to $2.31 per share after the announcement, though rebounded to $2.37 by the end of trade.

  • UNIQLO to Launch UTs Celebrating Megahit Capcom Game Series  Monster Hunter and Street Fighter

    UNIQLO to Launch UTs Celebrating Megahit Capcom Game Series Monster Hunter and Street Fighter

    UNIQLO, Japanese global apparel retailer, announces that it will launch a special UT (UNIQLO graphic T-shirts) collaboration collection that celebrates the megahit game series Monster Hunter™ and Street Fighter® from Capcom, a leading worldwide developer and publisher of video games. The Game by Street Fighter UT collection will begin rolling out at UNIQLO stores and through UNIQLO.com starting Monday, April 15. The Game by Monster Hunter UT collection will be available in Mid-June.

    Making its arcade debut in 1987, the Street Fighter game series is considered the progenitor of the fighting game boom that began in the 1990s. A new collection of unique UT designs celebrating the Street Fighter franchise highlights world warriors such as Ryu and Ken in various designs. Street Fighter®UTs include designs with controller button commands, as well as a pixel art rendition of a rare double K.O. from the game. Artwork from the latest Street Fighter title popular in the international esports scene, Street Fighter® V: Arcade Edition, features dramatic illustrations of the games’ iconic characters.

  • Today’s demanding consumers need tech-savvy food retailers: Walmart India CEO

    Today’s demanding consumers need tech-savvy food retailers: Walmart India CEO

    Food is the largest retail consumption category in India, accounting for 33 percent of the overall consumption expenditure. It is also the largest opportunity area, especially in times when market dynamics are changing dramatically, and consumer behaviour is no longer generic.

    Indian consumers are becoming more and more indulgent with food (and vegetables), and they are experimenting with new and foreign cuisines; they are seeking variety and are open to international brands. They profess to enjoy foreign food and are ready to pay more for premium or organic food items. This is a huge shift from the last decade.

    The changes to Indian consumer behaviour are being driven by increasing incomes, younger profiles of consumers and growing access to the Internet.

    According to Krish Iyer, President & CEO, Walmart India and Chairman of India Food Forum, the key trend certainly is for on-demand food.

    “There are a lot of pressures on the disposable income of the consumer. Factors like rising costs of real estate and the need to invest in health – important today because of the awareness and education on health are taking away good chunk of consumer’s disposable income and the expectation of value is increasing,” Iyer said on the sidelines of India Food Forum 2019.

    Expectations, he said, have built up because the consumer has a lot of options, making him more demanding of quality and other conveniences. “Today’s consumer is time-starved. Working couples want ready-to-eat, on-the-go and on-demand food, and this is driving a lot of consumption,” he added.

    To meet the shift in consumer demands, FMCG players are gearing up make the changes in their retail stores.

    Share of E-Commerce in The Retail Pie

    Iyer stated that the share of e-commerce is set to rise over the next 10 years aided by a rise in the Omnichannel format. This, despite the growth in brick-and-mortar retail from 2 percent to 12 percent.

    “What works for today’s FMCG players is a ‘go-to market (GTM) strategy’. This is particularly true for small and medium enterprises who want to launch products. Since GTM is more about digital first, they use the opportunity to connect with consumers in today’s highly connected phygital environment,” he said, talking about the big change which the FMCG sector is witnessing today.

    He stressed on the fact that it is extremely important to bridge the gap between physical and digital retail, especially since the consumer is going digital in terms of experience as also his touchpoints.

    Tech-Savvy CX At Walmart

    Sharing his insights gleaned from years at being at the helm of Walmart India, Iyer explained that that by enriching customer experience, Walmart has observed that the consumer has started purchasing more using the Omnichannel format – Rs 180 over Omnichannel versus Rs 100 spent at the physical store.

    While citing technology adoption as the key to retail growth, Iyer also talked about the four key challenges that retailers need to face head on: food security, safety and nutrition, food wastage and sustainability.

    “Feeding a rising world population of 10 billion, amid rising deaths of infants due to malnutrition and changing climatic conditions are key challenges. In India, phenomenal efforts are made on the regulatory front for safety and nutrition that will follow with awareness, compliance and enforcement of law. Significant investment amounting to Rs 92,000 crore in food processing in catchment areas is needed to overcome the wastage of 30 percent of all food and 40 percent of fruits and vegetables in the country,” he concluded.

  • H&M profit drops due to online investment

    H&M profit drops due to online investment

    H&M profit dropped in the year to November 30, the Swedish fast-fashion retailer blaming investment in its online business for the decline. The world’s second largest clothing retailer embarked on a transformation program last year, investing heavily in logistics and digital technology aiming to improve the shopping experience and product range. This included an upgrade in its mobile app, faster deliveries and the rollout of click-and-collect.

    The company is also working on a new H&M concept store.

    In the last three months of its financial year, the company spent around US$48.5 million on logistics and technology, including resolving problems it flagged earlier last year.

    H&M CEO Karl-Johan Persson said the upgrade in the company’s logistics systems inevitably resulted in increased costs but will lead to a range of improvements for customers.

    “Against a backdrop of rapid changes in the fashion industry, in 2018 we accelerated our transformation to future proof our business, ending a challenging year for the H&M Group and the sector with strong signals that we are on track,” he said.

    Persson said it may have been a challenging year for H&M and the industry but after a difficult first half, there were signs the company’s transformation efforts were beginning to take effect.

    H&M posted a 5 per cent increase in full-year revenue to $22.7 billion, while in local currencies, net sales rose by 3 per cent. Profit fell by 21.8 per cent to $1.36 billion from the same period last year.

    Online sales rose 22 per cent to SEK 30 billion ($3.2 billion) and now comprise 14.5 per cent of the company’s total revenue.

    “With a stronger customer offering and the ongoing improvements in buying and logistics, we expect this trend to continue,” Persson said.

    “While this performance is still some way off the targets that we set at the beginning of 2018, these positive signals confirm we’re making progress across all our strategic focus areas: to create the best customer offering; a fast, efficient and flexible product flow; a stable scalable tech foundation; and adding new growth through store and online expansion.”

    According to Persson, the company opened three new fulfilment centres in the fourth quarter with a total of around 230,000sqm so it can offer customers faster deliveries and a wider assortment while reducing the capacity constraints that slowed them down in some markets in 2018.

    “We have also completed our online transition with investments in 2018, enabling us to successfully migrate online in Germany to the new platform earlier in January 2019,” he said. “With this, all H&M online markets are now on the new platform.”

    Persson said the difficulties with the logistics upgrade in some of their markets earlier in 2018 led to additional costs in the fourth quarter.

    “Applying lessons learned, we have not increased investments to secure upcoming transitions.”

    He added that while these initiatives have a short-term impact on margin, they will lead to continued improvements for their customers, driving increased profitability in the long term.

    “With the transformation now underway, capital expenditure will reduce this year compared to last and we will continue to shift the balance of our investments towards digital.

    “Changing consumer behaviour and technological innovation will continue to transform how and when people shop, we are building a business with the flexibility to respond to this constant evolution.”

  • Judge extends Sears lifeline to mid-January

    Judge extends Sears lifeline to mid-January

    Embattled US department store Sears has been granted yet another lifeline, with a bankruptcy auction now scheduled for January 14. That will give billionaire hedge fund operator Edward Lampert, Sears biggest shareholder and former CEO, one final opportunity to preserve the business. At Monday’s auction, he will bid against rival parties seeking to liquidate the business, described by GlobalData Retail MD Neil Saunders as “more like a patient in a coma than a fully functioning retailer”.

    Sears filed for Chapter 11 bankruptcy protection in October and the independent directors of the 126-year-old company are seeking its liquidation, seeing it as the only means by which creditors can retrieve some of the $5 billion in debts it owes. Lampert wants the remaining 425 stores trading under the Sears and Kmart banners to remain open, convinced it can return to viable trading.

    Saunders disagrees and says talk of a potential liquidation of the company suggests the much-storied retailer is now at the end of its long road to collapse.

    “Its recent journey to this point has been characterised by incredibly poor strategic decisions, chronic underinvestment, and continuous financial machinations designed to keep the company afloat. All of this impacted trading, which has remained dire.”

    Saunders says while Lampert has worked hard to rescue the remains of his empire, there is simply not enough financial firepower left in the company to persuade investors of his bid. Indeed, the terms of the deal put forward by Lampert would only likely delay the inevitable and make it far more difficult for creditors to extract their money.

    “Moreover, his track record in putting the company on a sound financial footing has been less than impressive, and we believe this has undermined his credibility with stakeholders.”

    Saunders says there may be interest from people who see value in elements of Sears business such as the automotive side, the online operations, the brands, and the various home services. Those operations include brands like Kenmore appliances, DieHard batteries and Wrangler jeans. “As such, parts of Sears could live on even if the company as we know it will disappear.”

    According to The Wall Street Journal, Sears, which merged with rival Kmart in 2005, has been losing money for seven years under Lampert’s leadership. Sine April 2007, the company has shed 200,000 staff, lost $30 billion in shareholder value and closed more than 1700 stores, leaving it with less than 700 now.

    Saunders says Sears will act as a case study in how not to run a retail operation.

    “It also serves as an example that even the once most powerful and cutting edge of brands can easily fail in a retail environment where change and evolution are the order of the day.”

  • Coupang to become an authorized Apple retailer

    Coupang to become an authorized Apple retailer

    Coupang, Korea’s top e-commerce platform, has been selected as an authorized retailer to sell Apple products, the company announced Friday. It said that the e-commerce giant was selected to become an authorized reseller of Apple products, and the service will begin sometime this month. The products that will be offered include iPad Pros, MacBooks and Apple Watches, as well as related accessories.

    Coupang said that its shoppers can get access to Apple products that carry a full Apple warranty and come with after-sales customer services from Apple.

    “Coupang will be an attractive purchase channel for customers who love or want to experience Apple products,” said Navid Veiseh, Coupang’s senior vice president of global e-commerce. “We will continue to expand the range of premium electronics brands like Apple, which, when combined with our Rocket delivery and RocketPay services, make Coupang the first place for customers to turn when shopping for premium electronics.”

    Coupang is known for its fast Rocket delivery service that sends items purchased the following day.

  • Korea to ban plastic bags in supermarkets

    Korea to ban plastic bags in supermarkets

    Large supermarkets are banned from giving or selling plastic shopping bags to customers. The Ministry of Environment announced Monday that it will completely prohibit grocery franchises and supermarkets over 165 square meters (1,776 square feet) from selling or giving away single-use plastic bags from New Year’s Day. While it discouraged stores from providing plastic bags before, the ministry enforced a total ban through a revision to the Act on the Promotion of Saving and Recycling of Resources in an effort to cut plastic waste.

    Some 13,000 supermarkets are affected. If they offer disposable plastic bags, they risk fines of up to 3 million won ($2,690). The only kind of one-use bags stores can sell are the disposal bags accepted by district waste collectors. Stores will be encouraged to sell or offer paper and other non-plastic grocery bags instead.

    Supermarkets can continue to offer customers small plastic bags for wrapping items like fish and meat.

    The revision to the law also prohibits some 18,000 bakeries from handing out plastic bags free of charge.

    The ministry said it will give a grace period of around three months to help stores adjust to the change and work with local government bodies to ensure that the regulations are followed.

    Earlier this year, seven of Korea’s largest grocery and bakery franchises, including E-mart and Lotte Mart, signed voluntary agreements with the ministry to reduce disposable waste.

    That initiative has produced notable results. Paris Baguette and Tous Les Jours, for example, used 74 percent fewer plastic bags in November last year compared to the same period 2017, according to the ministry.

    “It’s necessary to reduce use of disposable waste for the environment and future generations,” said a spokesman from the ministry. “We request the people’s active participation to promote a green consumer culture.”

  • Retailers, mall operators embrace high technology

    Retailers, mall operators embrace high technology

    Malaysian retailers and mall operators are jumping on the technology bandwagon, adopting technologies such as shopper tracking systems and facial recognition cameras, using data analytics to capture important shopper information. Sunway Velocity Mall general manager centre management Danny Lee said the mall completed the installation of its shopper tracking system in early December that identifies a unique ID of each mobile phone carried by shoppers, and is testing the system now.

    “It enables us to know how many times a person comes to the mall and where they go. At the same time it tells us the number of shoppers at the mall and is able to give us an accurate count of how many people visit the mall every week or month. This is phase one.

    “This will then later link into us getting data of who they are so that we can use that as an intelligence system to know our customers and to push promotion to them. For example, we’d be able to detect automatically if it’s your birthday today when you visit the mall, and if there’s a special promotion in certain outlets during your birthday, you’d get certain discounts. We’ll be working on that in phase two,” Lee said recently.

    “How the system works is that it will detect shoppers who carry smartphones. The shoppers’ travel history, traffic pattern will be recorded. Insights of shopper traffic flow in the mall, visit frequency (new traffic or returning traffic) and dwell time can be viewed on the online portal. There is also provision for integration with mobile application (to identify shopper profile to offer more personalised engagement), as well as additional reports based on user requirement.”

    Adding that it has a formula to include children and discount double counting, Lee said Sunway Pyramid had rolled out the shopper tracking system first, followed by Sunway Velocity.

    “It lets us know whether our campaign for a period of time is effective or not compared to other campaigns. In this mall (Sunway Velocity), we have 55-56 sensors throughout the mall. So it covers different zones and it can track where a person goes to, from one zone to another, and capture how many people are there. At what time, how many people are there in this atrium… we’re able to generate reports on that,” explained Lee.

    He revealed that the set-up costs for this system range from RM120,000 to RM150,000, with recurring costs of RM10,000 every month per mall.

    “Some malls have (this system) but not many have this in the Klang Valley, compared with malls in Singapore that have a lot more.”

    Meanwhile, MRCA Academy, the training arm of the Malaysia Retail Chain Association (MRCA), is promoting awareness on technology adoption, especially in the areas of facial recognition and data analytics, to help MRCA members be more efficient in running their retail businesses.

    MRCA Academy deputy chancellor Stan Singh-Jit, who is also National ICT Association of Malaysia councillor, said technology will be a catalyst that will help retailers grow their business and that it is a tool that retailers should take advantage of.

    Stan is the founder and principal consultant of Ironhorse Asia Sdn Bhd, which provides solutions for in-store point-of-sale requirement, head office merchandising needs, warehousing, supply chain management, web-store, internet business, social media consultation, maximising return on investment via customer analytics, harnessing on merchandising analytics, among others.

    He said while the recording of images is illegal due to the Personal Data Protection Act, there is another facial recognition technology that captures the identity of shoppers in a different way.

    “It tails the person… it tells you whether the shopper is a male or a female and gives you the person’s age group. If I have data today that tells me the people that come to my store, their age and gender groups, I’m able to do more of what I’m selling. This is an important factor that is missing in the retail scene.

    “Facial recognition can tell whether the person is a staff or supplier. If a customer walks past your store but doesn’t walk in, it can also tell you how many people didn’t come into your store. It’s a way to find out why people don’t come in. And if my store is here but you spend more time looking at the merchandise there, that tells me a story,” explained Stan.

    He said this method differs from a footfall counter machine, which counts every walk-in, walk-out and hence the latter may not produce accurate numbers.

    He disclosed that since this facial recognition technology is new, there are five proofs of concept for such technology in the Klang Valley at the moment, of which one is for a department store. He said that a camera may cost some RM130. A department store may have three to four floors and many cameras on each floor.

    “All good things about buying begins at the store and there are many touchpoints in the store. As a customer walks into the store, how do you capture those points… how do you prioritise the value…. we’re helping MRCA members to understand the technology and how they can use it,” he said.

  • Vietnam’s PVOIL seeks multiple partners

    Vietnam’s PVOIL seeks multiple partners

    Vietnam’s second-largest oil retailer, PV Oil, is seeking multiple buyers, instead of a single strategic investor, for a 44.72 percent stake. Although many investors expressed interest in becoming strategic partners with PetroVietnam Oil (PV Oil), including British-Dutch oil company Shell, South Korea’s SK Energy, and Idemitsu, a Japanese petroleum company, complicated administrative procedures have discouraged them, analysts say.

    PV Oil requires a strategic partner to hold the stake for at least 10 years.

    According to a new and revised divestment plan for PV Oil, the company is expected to raise at least $300 million from the divestment, Cao Hoai Duong, CEO of PV Oil, said.

    The bidding is expected to start in 2019.

    Last December, Deputy Prime Minister Vuong Dinh Hue had approved that state-owned PetroVietnam, the parent company of PV Oil, would reduce its ownership in PV Oil to 35.1 percent by selling a 44.72 stake to strategic investors.

    In January this year, VND4.18 trillion ($184 million) was raised through the sale of a 20 percent stake in PV Oil in an initial public offering (IPO).

    Vietnam maintains a 49 percent cap on foreign ownership limit in PV Oil.

    PV Oil runs 540 filling stations on its own and has about 3,000 locations operated by agents, mostly in northern Vietnam, as well as about 120 gas stations in Laos.

    PetroVietnam is one of the three biggest state-owned groups in Vietnam and a major contributor to state coffers.

  • Dickson Concepts unveils HK$1bn new retail format

    Dickson Concepts unveils HK$1bn new retail format

    Dickson Concepts has unveiled a new luxury retail concept merging the cutting-edge technology with a personalised styling service, to be launched under the Harvey Nichols banner. The first flagship store for the new format will be unveiled at Pacific Place in Autumn next year, with plans to expand the concept globally.

    Dickson Concepts says it plans to invest HK$250 million on the Pacific Place store and up to a further HK$1 billion in technology and technology-related companies, together with additional stores abroad.

    The project has evolved from the strategic partnership between Dickson Concepts and its Harvey Nichols Group subsidiary in the UK, announced in March, in which the parent company gained access to the department store’s digital expertise and will use it to create a seamless inventory across the UK and Hong Kong businesses, allowing customers to shop the entire range and even consult with store staff online. The move has trebled the number of products available to shoppers.

    In a statement, Dickson Concepts said it will build on the Harvey Nichols business based on two formats – one being the flagship new format store just announced, the other the traditional flagship store format which Harvey Nichols Landmark operates under.

    “Together, the two formats will allow Dickson Concepts to maximise and fully develop the potential of Harvey Nichols in different parts of the world.”

    Day and night service

    The new concept store will allow Harvey Nichols to offer “day and night service” for the first time, with in-store stylists serving customers during the day and Harvey Nichols’ UK stylist network servicing the e-commerce platform during the night.

    “The service will allow customers to shop live and obtain styling advice from Harvey Nichols’ stylists in Hong Kong and the UK via instant messaging, photo sharing, and live video streaming, even during late evening in Hong Kong. Products selected can then be shipped directly to the customers’ home, office or our Hong Kong store for personal service and immediate alteration by our expert tailors as maybe required, thereby creating a service that is unmatched by pure online operators,” the company said.

    The live online shopping functionality is powered by global retail technology company Hero, with which Harvey Nichols signed a strategic partnership in June.

    “Technology is core to Harvey Nichols’ new store format and is carefully interwoven into the store to drive the most immersive, enjoyable, and personalised shopping experience possible,” the company said.

    “In its new retail format, Harvey Nichols’ online exclusive offering will be interspersed into the presentation of physical products to provide customers with the full view of the most up to date and exciting products available, while allowing even frequent customers to explore and discover new product stories on every visit. Customers will be able to scan any digital products showcased in the store directly onto their own smartphones, or alternatively be served with an expert team of stylists.”

    The Pacific Place store will feature an online style lounge where dedicated stylists will work to provide each customer with product recommendations built around the customer’s personal taste, needs and preferences.

    “This will allow each customer to be presented with a selection of coordinated outfits that are completely tailored to them, without experiencing the frustrations of surfing through thousands of products available online to find the perfect piece.”

    The new store will be located on the second level of the current Harvey Nichols store at Pacific Place, and will showcase three times the offering. The existing store will be reduced in size from 84,000sqft to 42,000sqft,  resulting in a large reduction in fixed costs and substantially increased sales due to the significant increase in products and brands offered. “As such, the new format will allow Dickson Concepts to maximise sales densities and profits, compete against pure online operators, while offering customers the most curated product and service offering possible,” the company said.