Created in partnership with NTT DATA, Lore is designed to allow hyper-personalised communication with each customer based on natural language, just like a human being.

At the core of the solution is Eva, a conversational AI platform. Eva also integrates the power of the latest Open AI technology to deliver a solution that can understand written and spoken conversations with fluency.

Lore makes recommendations to customers and advises on beauty products based on their needs, redirecting them to the brand’s online store, or even letting consumers shop within the same application. 

Francisca Unda, key account manager at L’Oréal, explained that Lore “was the opportunity to better connect with our customers, making them feel truly supported and humanising the service, with empathy and containment.”

A retailer case study in the RetailX Beauty and Cosmetics 2023 report tracked how L’Oréal continues to strengthen its position as a beauty technology powerhouse. Its Research and Innovation team currently comprises 5,500 tech and digital professionals.

In 2023, the beauty retailer reported continued growth. Group sales increased by 14.6% to €10.38bn in the first quarter, with L’Oréal outperforming the market in all geographies. Sales were particularly strong in South Asia and the Middle East/North Africa as well as in Latin America.

“This performance demonstrates the strength of L’Oréal’s balanced multipolar model,” said Nicolas Hieronimus, CEO, L’Oréal.

“Mindful of the current uncertainties, we remain optimistic about the outlook for the beauty market, ambitious for the future and confident in our ability to keep outperforming the market and achieve another year of growth in sales and profits,” he added.

Future growth in the luxury division will be accelerated by L’Oréal’s acquisition of Australian, clean beauty brand Aēsop. The brand, which was previously owned by Natura & Co, is known for its skin, hair and body products.

L’Oréal is one of six beauty retailer profiled in the RetailX report. Download the full report for a look at Amorepacific, Charlotte Tilbury, Douglas, L’Occitane and Sephora. The sector report also examines the beauty & cosmetics sector as a whole, the extent to which consumers are shopping online around the world, developments over the last year and the trends that will continue to drive ecommerce forward.

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Co-op reported its undercover security guards detained 3,361 individuals across its 2,400 stores last year. Offences including burglary, abuse, harassment, and physical assaults on its staff.

The retailer had previously spent £200mn on security measures, including additional guards and a roving undercover team targeting crime hotspots. However, it has still recorded a 48% rise in shoplifting incidents to almost 298,000.

“This is not a few opportunistic shoplifters becoming more prolific. This is organised crime and looting,” said Matt Hood, managing director Co-op Food.

Reinforced till kiosks with secure doors and locked cabinets for bottles of spirits have been introduced, but Hood stressed that Co-op will not be using facial recognition systems unlike a number of other major chains.

Furthermore, Hood has joined retail bosses and the British Retail Consortium to call on the UK government to introduce a standalone offence for assaulting, threatening or abusing a retail worker. It comes as it was revealed two-in-five of those detained by the chain’s guards walk away as police had failed to attend an incident.

“People who are really organised can only be stopped by custodial sentences and the police. We need it to have consequences,” added Hood.

“The thing that concerns me more than anything is that we have colleagues who won’t bother to report [incidents] as they know they are not going to get a reaction.

“If you have detained somebody that has committed a crime and the police don’t turn up, you have to let them go. You can imagine how demotivating that is for people working in the shop and how motivating [it is] for shoplifters.

“Unless these crimes become something police act on, this will continue. It has been proved in Scotland that if you make it a specific crime to attack a shopworker, incidents come down. We need that to happen in England.”

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Located in Roblox’s virtual Outfit Shopping Mall, Mango’s immersive store will enable gamers to purchase Mango Teen digital garments, including collections available in bricks-and-motor stores, for their avatars. Designed with a Mediterranean aesthetic, mirroring the New Med design concept used in physical Mango stores, the space also aims to allow users to interact.

The Roblox introduction is part of Mango’s commitment to digital innovation and its work to create unique experiences, products and services for its customers in the physical, digital and virtual worlds.   

“As a global company, we want to respond to the needs of our customers in any moment, location or format. The arrival of Mango at Roblox represents a milestone because it will allow us to bring to this platform our passion for fashion, while strengthening our ecosystem of channels, by offering our customers differentiated products, services and experiences,” explained Jordi Álex Moreno, Mango’s director of technology, data, privacy and security.

The fashion retailer worked alongside its digital partner BrandNewVerse, to become a key collaborator of the Outfit Shopping Mall, which is described as a realistic shopping centre set on a Mediterranean island that will open this month on Roblox.

Discover how retailers are reaching customers through the likes of Roblox and Fortnite in the RetailX Europe Ecommerce Region 2023 report.

An exclusive feature by Jonathan Wright looks at how as the boundaries between social media and retail blur, so too have
the clear-cut distinctions between the online and real worlds.

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Outdoor and Cycle Concepts Ltd (O&CC) will work with technology company Pricer to introduce digital labels, in-store automation and communication to all 78 stores by the end of May 2024.

The cloud-based Pricer Plaza platform and customised ESLs were successfully piloted in the new Cotswold Outdoor store in Milton Keynes, and five more stores installed during Autumn 2023.

In addition to real-time price adjustment capabilities across its full chain of stores, O&CC is looking at the possibilities of using the solution to deliver more efficient picking of online orders for its Click & Collect service. The technology is also designed to enhance replenishment, which will ensure all products are available on the shelves at all times reducing shelf gaps and out of stocks.

Chris Jones, strategic operations director at O&CC, said: “Our mission is to inspire and support customers to get outside.  As well as offering the best brands and products, we provide exceptional in-store services, like 3D foot scanning, outdoor footwear and pack fitting, running gait analysis and ski boot fitting. 

“Installing a digital in-store pricing solution from Pricer will drive efficiency, improve sustainability, and ultimately enable our in-store teams to dedicate more time to serving our customers.  We’re delighted to be in partnership with Pricer to help achieve this ambition during 2024 and beyond.”

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Retail media is no longer limited to on-site and endemic brands
As retail media matures, retailers are starting to understand the opportunities of off-site media, and of selling ad inventory to non-endemic brands. Both are hugely attractive to brands: With the end of third-party cookies approaching, retailers’ customer data will hold the key to personalised customer targeting. In addition, The State of Retail Media Report found that only 37% of retailers currently offer off-site programmatic advertising – the rest are losing out on opportunities to increase revenue.

Those retailers who can master the art of reliably identifying customers on the open Internet, connecting with customers wherever they are and independent of which device they are using, will have the competitive edge. As will those retailers who can offer a unified retail media solution across on-site and offsite, with clear metrics for both that help brands properly attribute results and the success of their advertising campaigns.

We will see more new media formats
There is a clear appetite for retail media technology solutions that support new advertising formats including video and rich media. Channels such as on-demand streaming services and connected TV can be used by retailers and brands to deliver relevant and targeted ads to their audiences. In contrast, the practical reach of traditional linear TV campaigns is now only approximately 50% of their intended audience, according to Samsung Ads.

As streaming is becoming viewers’ default preference, connected TV presents an almost untapped but huge opportunity. It vastly increases the off-site advertising inventory and promises greater reach, capturing consumers at different points in their media journey. Plus, acceptance is growing amongst consumers who are willing to watch ads in return for free content.

Artificial Intelligence will power retail media growth
Brands are well aware of how powerful Artificial Intelligence (AI) is. Applied in retail media, it allows better use of the available customer data to more precisely target and measure advertising campaigns. Retailers can harness AI to improve the site experience, as well as for next-level personalisation. For brands investing in retail media, AI – used correctly – can make the retailer’s first-hand data smarter and more actionable.

In the next few months, we will see more retailers and brands employ Predictive AI to analyse usage patterns, identify customer intent signals and zoom in on their target audience with a granularity that they haven’t been able to achieve before. Coupled with using Generative AI to support the faster creation of personalised ads, this AI-based targeting will allow them to reach the right customers at the right time. Ultimately, advertising will be powered by smart technology that works in the background in near real-time.

Retailers are looking for new ways to monetise the physical world
One fast-moving trend is how retailers are finding new ways of monetising physical retail media, such as digital screens in stores. A study by Insider Intelligence found that for some leading brick-and-mortar retailers, in-store audiences can be considerably bigger than their online audiences. Retailers will want to capitalise on this in-store footfall. The challenge is how to target individual customers with tailored content – for example, using data from loyalty schemes –, and how to do it precisely and at scale.

This is a true omnichannel challenge as retailers will need the ability to make the connection between what they know about their customer and their location in real-time, joining the dots on the entire online and offline customer journey, to deliver truly targeted in-store advertising. They will also need to be able to analyse their data to close the loop on how both in-store and online advertising have affected online and offline sales. After all, return on ad spend is one of the most important metrics for nearly half of brands according to the State of Retail Media Report.

Retailers are outsourcing some of the retail media work
Due to the growing maturity, but also complexity, of the retail media market, more retailers are asking for specialist consulting services to help them understand and maximise their opportunities. This includes strategic advice on how retail media can be applied to their own business models, how to reach target customers with the most relevant content and how to measure and improve profit margins.

Increasingly, retailers are also looking for support with retail media sales. As their retail media offering sees growing demand, in-house resources alone are no longer enough; they need help accelerating their retail media growth. External retail media specialists can add another layer of expertise, complementing in-house sales teams and boosting the retailer’s ability to execute.

Some larger retailers will benefit from a full-service partner who can supply the retail media technology as well as the plethora of services surrounding it. While every retailer has different needs, for some brands, tapping into Retail Media-as-a-Service will be an interesting strategy alongside developing their own in-house resources, and this is another trend to watch in 2024.

Alban Villani, regional CEO for EMEA at CitrusAd

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A journey through retail and AI

This year’s Dreamforce event had a strong emphasis on AI, which the company has prioritised for nearly a decade, which Garf believes has revolutionised the retail industry.

“Every retailer needs an AI strategy now,” he stresses.

According to Garf, some retailers are cautiously exploring AI’s potential, while others are more advanced in their implementation. He adds: “Some retailers are crawling, some are walking and a very few are running towards AI.”

However, across the board, there is a common belief AI “is here, and is here to stay”.

Garf continues to emphasise the importance of having a well-defined AI strategy grounded in trust.

Trust in data and the authenticity of AI-generated outputs is paramount, according to the Salesforce VP. He claims retailers are not “just seeking shiny AI tools, instead are on the hunt for AI applications that solve business problems” and allow them to enhance efficiency and drive top-line growth.

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Golden quarter and the influence of AI

With the holiday season fast approaching, Garf highlights that AI would influence a staggering $194 billion in online sales, thanks to predictive and generative AI.

However, according to a holiday forecast by Salesforce, over the last 12 months, 13% of online orders were influenced by AI.

This comes as 10% of shoppers added they will use generative AI to get inspiration for holiday gifts this year.

“We’re seeing a balancing act happening between online and offline,” he continues.

“Consumers are being mindful of their spending. hey are being more value-based. They’re looking for better deals, better bargains, better promotions,” he states.

Key trends to watch

According to the former head of ecommerce and cross-channel operations at Lids, the retail landscape has undergone a drastic change in the past decade, with “significant acceleration” during the Covid-19 pandemic.

“The pandemic has moved us to a digital-first world,” he says.

“Even when customers step into physical stores, their smartphones are the portal to the retailer’s brand. This digital-first mindset has changed the role of physical stores and store employees”

As a result, Garf claims store associates have now been tasked with multiple responsibilities including serving as social media managers and fulfilment experts, on top of their day-to-day tasks.

The future of retail

According to Garf, as the digital landscape evolves retailers will be tasked with reimagining their strategies and adopting AI to meet the customer’s demands.

As a result, he expresses optimism about the retail market’s demand, but with a shift in focus.

He notes: “Retailers must focus on retention and loyalty because customer acquisition costs have been off the charts with marketing budgets also being scrutinised.”

“Personalisation and seamless experiences are becoming the new normal and retailers must embrace AI, not as a novelty but as a necessity,” he concludes.

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As a result, the CRM platform has partnered with the retailer to merge its internally developed technology to help the company get a 360-degree view of customers across its diverse portfolio of brands, including Williams Sonoma, Pottery Barn and GreenRow.

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Speaking at the 2023 Dreamforce conference in San Francisco, Williams Sonoma’s CEO Laura Alber said: “We put our customers at the centre of everything we do and are constantly focused on finding new ways to better serve them.

“We have always had a history of in-house innovation. However, bringing in Salesforce as a partner to help us augment that innovation and continually improve the connection to our customers, made sense.

Alber added: “They are not afraid to grow with us and help us scale our marketing email program while sharing a core value of trust.”

“AI helps our teams make more informed decisions, it creates efficiencies within our business, and it allows us to be agile as we connect with millions of our customers around the world on a daily basis.”

Salesforce president and COO Brian Millham concluded: “AI is changing everything – customer experiences, company operations, and work itself.

“The Williams Sonoma team is at the forefront of the industry, using data in a way that builds trust, and understanding, and elevates the entire customer experience.”

Click to download:

Click here to view the 2023 Europe Homeware Sector Report, which features 55 pages of market-leading research, a list of the 50 largest retailers and 49 RetailX figures, charts and graphs.

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According to the retailer, the new app has been designed to help both new and existing customers have simple access to all the essentials they need to craft.

By signing up for the Hobbycraft Club, customers will be provided with a digital club card through the app, which can be used in-store and online to build up loyalty points for additional discounts and vouchers.

Meanwhile, customers who download the app can also sign up for its offers of exclusive discounts and rewards including 15% off the first purchase, a free £5 gift voucher on their birthday, and loyalty vouchers and discounts.

Click to download:

Hobbycraft is ranked as a Top 50 retailer in the 2023 RXUK UK Top500 report

“There has been a huge increase in demand for arts and crafts over the past few years, with people using the pastime for mental wellbeing, entrepreneurial passion, social meetups and more,” Hobbycraft customer director Katherine Paterson said.

“Our passion for arts and crafts is at the centre of everything we do, and we want to continue building a crafting community that is accessible and affordable to all.”

Patterson added: “Through the launch of the new app, we aim to make crafting more convenient to both new and existing customers with simplified access to our huge product range, personalised project advice and inspiration, and even more savings and discounts available through the Club.”

The move comes as, earlier this year, Hobbycraft announced it is to launch new subscription schemes following the success of its Plus and Cut and Create subscription models.

The arts and crafts retailer’s head of digital marketing Bonnie Jackson and senior CRM manager Zoë Blythin told SubX World 2023 to “watch this space” hinting at there are many other aspects of crafts the company “wants to pursue in the future”.

Find out more about SubX World 2023…

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The new store features items from the technology giant’s private food brand, ‘by Amazon’, alongside its premium grocery range, ‘Our Selection’.

The site is also stocked with household essentials including, meat, fish, dairy and fruit and vegetables.

The new store also offers customers a variety of convenient ways to pay, thanks to its non-gated entrance, with customers able to scan their in-store code via the Amazon app at the exit gate or pay by tapping their credit or debit card.

“Whether you’re popping in for a morning coffee and croissant, lunchtime Meal Deal or grabbing a few items for dinner on the way home, we think customers will love shopping in our newest Amazon Fresh store,” Amazon Fresh stores director Matt Birch said.

“We’re excited to offer customers great value on a wide selection of products and a convenient shopping experience with more ways to pay. We’re looking forward to hearing customer feedback on their local Amazon Fresh store, and we can’t wait to be part of the Moorgate community.”

Amazon Fresh senior store manager Fadi Michael added: “We’re excited to join the Moorgate community, offering customers a wide variety of products that are also great value. The rest of the store associates and I can’t wait to meet our new customers and ensure they have a seamless shopping experience with us at Amazon Fresh Moorgate.”

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In what the ecommerce giant is hailing as its latest review innovation, the feature is now available to some shoppers in the US across a selection of products.

Amazon’s director of community shopping, Vaughn Schermerhorn, revealed it might roll out the feature to additional customers and categories in the coming months based on customer feedback.

“We want to make it even easier for customers to understand the common themes across reviews, and with the recent advancements in generative AI, we believe we have the technical means to address this long-standing customer need,” Schermerhorn said.

The move comes as Amazon CEO Andy Jassy revealed earlier this year that the ecommerce giant is investing heavily in generative AI, claiming the technology will be a “big deal” for the business going forward.

In a letter to its shareholders, Jassy said: “Over the last several months, we took a deep look across the company, business by business, invention by invention, and asked ourselves whether we had conviction about each initiative’s long-term potential to drive enough revenue, operating income, free cash flow, and return on invested capital.”

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