the future is bright...
We meet Catherine Erdly, Founder of Future Retail which she set up to help those in the retail sector reach their full potential.
She has 20 years' experience working with businesses of all sizes from high street giants to start ups putting a toe in the water looking at all angles from how to make the most of time to managing money and launching new products.
You’ve worked with successful retailers such as Paperchase and Coast. How do you think chains like them are going to fare over the next couple of years?
Well both have had problems recently. Coast has now moved into Karen Millen and Paperchase has closed a number of stores. They are obviously not alone, a lot of the big name retailers are struggling and have been for a few years - it’s the costs of day-to-day business and suppliers in the FarEast are becoming more expensive. There’s also changing consumer habits to consider, obviously shopping online and now people are looking for different things when they shop. There’s more conscious consumerism, we’re buying less - they don’t want as much stuff in their lives and they also want to make a connection when they buy.
If a chain has 200 shops across the country it can be seen as impersonal and corporate. Then with the state of retail at the moment companies can be put in to a state of fear, which makes it really hard for corporates to be creative. It’s hard for staff in the industry too, there are people in retail I know who’ve been made redundant two or three times in succession and they are just wondering where else to go. There doesn’t seem to be an awful lot of visionary leadership at the moment to stop everything and ask where they are going with strategy, with details such as tech and how to work with it.
Retail is fundamentally very 'old school’, very ‘wheeler dealer’ and now stores need to think about how they are connecting with their customers.
I’d say that a chain that has done this well is Lush. They have turned things around and they understand their customers and how to connect with them. Their values and ethics run through everything they do as a business. One example that demonstrates this is when they were designing a store and they discovered that the glue they were using was tested on animals. They stopped everything, all the construction workers downed tools until they got a different glue in. That is a great indicator that they do what they say because that would have been a great cost and inconvenience to them and I am sure that the glue would not have been noticed or investigated by anyone but they made that decision because they wanted to be true to their values.
Another company that has evolved with the times is FarFetch which is a technical company that facilitates fashion and also Ocado, basically a tech company that has becomes famous for robot packing, grocery delivery and sells warehouse technology to other companies. Traditionally retailers have focused on bricks and mortar but there are traditional stores like Superdrug who have understood the need to embrace the customer and are doing brilliantly creating a micro community. For example they held a vegan pop up event recently and a Colour of Beauty showcase of their more affordable ranges for all skin tones. They’ve seen that success is going to come to those corporate chains that get back on the ground with customers and listen to what they really want.
What advice would you give an independent store owner who may be struggling with sales at this moment?
I would say a good starting place is to recognise its strengths because an independent store is better placed than most with this new wave of customer connection. They will know the provenance of their products, they will understand the story because its why they chose the products they sell in the first place. There is genuine connection with the community and the customer because they are part of that community.
It’s about recognising what online platforms like Amazon can’t do and offer as an experience. This is where customer care really comes into its own - that traditional warm welcome, remembering the customer’s name, being interested in them, having a chat - telling them that they thought of a customer when a product came in and that it can be or has been ordered in case they’d like it.
Of course online shopping is still a smaller percentage than in-store shopping but as more and more people have started to shop online they are now going back to craving in-store experiences. So I would say work with your community, immerse yourself in it. There’s a great retailer in South East London that is a haberdashery and they offer loads of workshops and craft circles for free every Wednesday. You can go in and have a chat, meet new people. There are bookshops that do the same. I know of a retailer who has an amazing kids’ bookshop - she actually started as an online shop but needed a space to store the books so used shop space and she assumed that no-one would come in but low and behold they did - there is a need for people to pop into places and ask an opinion or see if the latest book has come in or could be ordered. She hosts beautifully illustrated storytelling events and has built great relationships. It’s so important that shops are seen to be giving something to the community because it builds such a strong bond and rapport.
A lot of retailers are investing in technology that can personalise the shopping experience - they are mapping out the customer journey so they can understand exactly what people do when shopping. The difference is human versus machine. The corporates have to invest in technology but the independents have first hand knowledge and experience.
What do you think the future for pop up shops are? They would be a great start for entrepreneurs testing the market but some regional landowners may not want to offer the space short term. What’s your view?
I think it makes great sense for landlords to recognise the purpose and benefit of a pop up as it’s a fantastic opportunity for both sides. Brands online are now looking to be sold offline and a pop up is a great space for this. Its’a trend that we’re starting to see with e-commerce businesses particularly the beauty brands opening physical stores.
Other types of stores where this works is the increasingly popular community shops. If the landowners worked on kitting out the empty spaces with generic items such as counters and shelving then there could be an easy and quick turnaround. A great example of someone doing this well is Rachel Bisiker at Kids Arcade in the Cotswolds and also The Mamahood in East Dulwich or Janet’s list in Shoreditch.
I know that some landlords can’t seem to see the benefit in renting out to pop ups and see it as wasted use of prime rent locations and this just blows my mind. I would do anything to avoid being empty and even with a pop up its the chance to see the space being used to its best capacity which is surely inviting for long-term renters?
For anyone looking to move from a side business to full time retail business what three pieces of advice would you give them?
Engage with the community, grow your business by getting to know them. Using social media and also emails, to build your audience is a great way of seeing who you are talking to and what they are saying.
Of course it’s really important to be clear as to why you are doing this in the first place - you need to understand what you’re selling and who you’re selling it to.
Being sure of your own brand values is vital before you start. For example Lucy and Yak ethical clothing is doing phenomenally well at the moment, it has a huge amount of loyal customers and there are dedicated Facebook groups where everyone discusses how much they love their clothing. They have a ‘Join the Comfort’ movement and people feel like they are part of their tribe sharing the same values.
The company has a fabulous tale and the brand has stayed true to that and grown with it. Their story is that they sold dungarees on D-Pop and then they met a tailor on their travels in India so they made some more and sold them. They’ve done so well that the tailor now has a factory and makes hundreds of pairs and their livelihood is literally woven throughout everything that they do. They are strong in zero waste, they employ local seamstresses and they are the perfect example of those moving with the times and doing what it takes to do well in 2019 and beyond.
When you’re thinking of moving from any kind of side hustle it’s really important to be realistic about your budget. Go through the numbers and be sure. I work with a lot of companies like this - smaller businesses who need some one on one advice whether it be how to get into trade shows to product launches.
One of the reasons I started doing what I do is that I love the innovation of independents and I do all I can to help them with all kinds of areas such as pricing, business basics or getting into more specific areas such as cost structure. I also have a lot retailers taking part in the workshops I run such as planning. It could be that a business is doing well, that they’ve got on track and they are looking to get help to know where to go next.
What would you say would be the best way of marketing your business as an independent at the moment? Particularly locally.
Social media is hugely important and also not forgetting email marketing. With Instagram you can engage with a community and build email lists. Word of mouth is great marketing and best way to identify who the true fans are.
Some areas to look at developing include:
- converting more people to come to your website
- getting more people to come and visit you in-store
- focusing on how to convert visitors into buyers
- how to get customers buy a little more each time they visit
- woo customers into buying from you more frequently
Do you see a trend emerging with the type of shopping we’ll see in the future?
The kind of shopping we’re seeing now and will undoubtedly see more of in the future is one that cares about a retailer’s story.
In 2012 I worked for a company called Green Baby, I was delighted to get the job as I’d used the products on my kids when they were little. They were early for their time because when they launched, twenty years ago, we were in a recession and when money gets tight anything ethical or organic just seemed like a ‘nice to have’ and not vital.
Nowadays it’s different - an ethical outlook and running of a company is important to customers. If you can’t talk openly about the supply chains, sustainability and workmanship customers are not impressed. There are behind the scenes wake up calls now like Stacey Dooley’s coverage of the retail industry and David Attenborough’s programmes on ocean plastics and so every retailer’s story must be transparent to survive - it can’t be murky. There’s a fabulous brand called Aerende that works with people with mental health problems and groups of refugees. It’s a social enterprise that supports projects and products made in the UK. They won an Appear Here pop up award for the work they’ve done and they are definitely a retailer to admire.
How would you engage with a younger generation of shopper?
To survive a retailer has to show to be a brand that cares passionately and genuinely to attract Generation Z (18 - 24 year olds). They want to connect with brands and there is a certain level to which people value the transparency of a firm.
It’s easy to do that with social media of course. Nowadays people don’t want to see something that’s hyper edited or hyper perfect, they want the truth of the story. It can obviously still be a beautiful post but it has to be real. Also something to be aware of is that Gen Z is less tolerant of technology that doesn’t work for them. For example any gimmicks where you can scan and get items deliver but then it doesn't work perfectly is not good enough.
The rest of us have seen technology evolve and perhaps can be more forgiving but for Gen Z they expect everything to be totally seamless.
I think that stores and retailers have got the investment in technology slightly wrong - it seems to be all about personalisation (let’s face it those pop ups can be annoying) or pressing a button in store on a Smart mirror and seeing a coat you’ve put on in many different colours but actually it would be much better to invest in technology so that stock levels are not running low - that would make customers much more satisfied.
The work on tech that’s important in retail is the ‘last mile’ the most expensive part of the process which is delivery. It can arrive in bulk at its destination but then it costs a lot of money to get each package delivered to the right retail space. The co-op is trialling a delivery robot and Amazon is promising more deliveries by drone so we’ll see where it ends up.
There are some great sites now that merge online with physical store shopping that’s really convenient and means that you feel you’re doing your best to support local. It’s called Near St and works on a similar premise to Amazon where you type in what you need and then it lists all the local shops that offer that product and how much it costs. It’s great because local shops are supported and it means you don’t have to wait for delivery but have the convenience of seeing at the touch of a button what you need and where it is.
Are there any parts of the world that you think have got it right with regards to retail and what details could we learn?
I had to contemplate this for a while and originally thought about buzzing cities like New York but in fact places like Fifth Avenue have a lot of empty shops now. So I would have to say, hand on heart, that it’s London. I was talking to a retail expert from Canada recently and he said to me ‘London is looking great’.
Simple place-making to keep somewhere alive is vital and London is doing that. Seven Dials in Covent Garden for example is a thriving area - the landlords have thought about a great mix of shops, along with great entertainment, food and drink. There are also vibrant places like BoxPark that are cropping up all over London in places like Shoreditch and Croydon. Another place I really like is Coal Drops Yard, a fantastic retail development in King’s Cross with fabulous architecture and a lot of interesting content.
Where do you like to shop and why?
I love to shop locally. I will walk down my lhigh street and happily have a little poke around and see what’s happening.
I also like looking at the offers from a group I’ve set up called Female Founders in Retail - all the members have fantastic designs and products.
For more on Catherine and to see her latest blogs, advice, courses and workshops go to: