There has been a reported loss of revenue and profits for Zara within the US and the UK in the last year, despite an increase in sales. Thankfully, this hasn’t stopped Zara from investing heavily into their UK branches, and more importantly, technology.
An article from Inditex hinted that a temporary pop-up store in Westfield Stratford would be opened last Friday but this pop-up store would be one like no other. One of Zara’s flagship stores is undergoing a massive transformation and is set for reopening in May with some pretty innovative and revealing changes within the retail and digital world.
With an integration of the offline and online in the retail industry, we could not only see a change in the way offline stores operate but also see alterations made in online user journeys and social media marketing.
The Pop-Up Store
The temporary pop up store has been designed for consumers to order and collect online purchases that have been made, as well as a click and collect service. This is a stern move towards the integration of the online and offline and Zara have spared no expense.
The argument against online shopping is that consumers still like to be able to see and experience the product. Consumers also love to try garments on, because in reality it never looks the same as it does on the model. The advancements in technology within the pop-up store (which will no doubt also be incorporated into the new flagship store in Westfield Stratford), have enabled this functionality with the creation of a mirror embedded product recommendation system. This system not only knows your size without you having to input it but also recommends other garments and accessories which compliment the garment you are interested in. This is an exciting step forward for retailers, buyers, and ecommerce. The detailed personalisation of this technology can only increase that all important conversion rate.
The Refurbished Flagship Store
This week marked the start of the much-anticipated refurbishment of Zara’s flagship store in Westfield Stratford. It has been planned that the new store will have four main sections; womenswear, menswear, kidswear and a section dedicated to online orders. This change comes from Zara’s ever-growing commitment to creating the perfect omni-channel experience.
The collection point will be formed of two small warehouses that allow for online orders to be collected in store by consumers whenever it suits them. Now, I know your thinking ‘Loads of retailers are providing click and collect services, what is so special about this one?’ Well, first of all no more waiting around in ques to collect your package. The system has been created so that it can scan a QR code as well as PIN codes that have been generated on ordering, so in just a few seconds your order is processed and placed in a mailbox within the store to be collected.
What else? You can now pay via the Zara and Inditex App, InWallet or even through a self checkout making paying in-store even easier, for those in a hurry. Not only is Zara committed to creating a more wholesome and consistent experience for shoppers, they are also dedicated to their own eco-efficient store programme which will lead to systems placed in the new store that aims at reducing energy and emissions as well as encouraging paperless receipts.
The Impact On Ecommerce
Evidently the impact is hard to predict as this pop-up store and the plans for the new Zara are the first of its kind, however, we can try. This innovation suggests a massive move towards Zara building an omni-channel experience, which people have been crying out for. The concept is based around the idea that no matter how a consumer has decided to buy, whether it is in store, on a mobile or through an app, their experience should always provide the same value. This hasn’t necessarily been the case, for instance with some retail stores they have products that are for online consumers only and similarly in the store, sales online and sales in-store do not always match.
If these advances made by Zara are successful then it could lead to a whole new way of shopping. Moving towards a merge of experiences between the offline and the online and will lead the way in other companies moving heavily towards the need for digital services.
Conclusion
It is early days yet and Zara will have a long way to go before they can start to fine tune the experience to reflect what the consumer actually wants. Nevertheless, they have shown initiative as well as the ability to adapt, by being the first big retail chain to make this kind of move. This move has put them ahead of their competitors in terms of innovation and trend setting. Zara have also demonstrated that there is a massive need for retailers that operate both in store and online to constantly refine and revolutionise the user experience in order to create more conversions.
Apex’s big prediction? Zara will heavily rely on a big push of social media marketing and PR from now on, with interactive videos planning to make a big wave this year they could really benefit from demonstrating their new technology to their big following.
