Lucy discusses the immense pressure on retailers to evolve in today’s competitive landscape:
It's no secret that retailers are under increasing pressure. Over the last two decades, eCommerce has grown to commandeer a significant share of the retail pie, paving the way for challenger brands, big and small, to disrupt the market.
As the competition continues to grow, traditional retailers are having to evolve rapidly to keep pace with the rate of change. Not only are they having to offer new services and platforms, but they are also having to find ways to be distinctive and stand out amongst the noise. It is no longer enough to rely on existing brand equity and reputation-retailers need to consider completely repositioning themselves to ensure they resonate with today's consumers.
No easy feat to execute. Brand transformations are complex, especially when navigating them within legacy businesses. But, done right, they present a significant opportunity for reinvention.
Debenhams turnaround; a use case for best-in-class. Just four years ago, the historic department store chain was on its knees. But, since being acquired by online fashion powerhouse Boohoo in 2021, Debenhams has been on a journey to turn itself into a thriving digital marketplace - and it appears to be working. In its latest financial results, Boohoo reported Debenhams had boosted its sales by 53 per cent over the previous year and cut its losses from £11m to less than £1m.
Clearly, beloved retail brands still have huge potential to cut through. They just need to tread carefully.
Balancing the future with the past.
Arguably, the most significant risk in modernising a brand is losing sight of its past. Brands shouldn't forget why customers fell in love with them in the first place, and modernisation shouldn't come at the expense of a heritage story and strong legacy.
Why? Brands, especially those with a long history and strong awareness, offer a huge amount of value.
If a retailer fails to embrace this, it risks not only losing these advantages but also alienating its existing customers. Those customers will surely notice if a brand strays too far from its roots and acts inauthentically.
Boohoo didn't need to buy the Debenhams brand for £55m to launch an online fashion and beauty marketplace. The business could have created one from scratch. Clearly, Boohoo understood the value of the Debenhams name, its 250-year heritage, and its trustworthy reputation. That's why they made sure to keep the core of the Debenhams brand intact - continuing to provide easy access to a wide range of quality brands.
As an agency, we follow a simple rule: never do anything that doesn't elevate the brand, and never do anything at the expense of what you've already built. When Co-op decided to ditch its traditional Christmas TV ad, we worked with them on a digital and social media-led alternative. The charitable campaign supported local community causes, keeping the grocer's heritage as a co-operative at the heart of its brand while updating its approach for the digital era.
A 360-degree approach
True brand transformations don't stop at a refreshed logo or a new campaign. Every single touchpoint between the brand and consumer needs to change with it, and for retail brands, that's often an exhaustive list. Everything must reflect the brand, from tone of voice and colour palettes to social assets and soundscapes. Like the dot-to-dot drawings of our childhoods, without a connection between all the dots, you don't enjoy the picture in full.