This innovative UK-based department store has managed to achieve growth through the implementation of multi-channel, and then omni-channel, retail strategy. We briefly explore the strategy that made House of Fraser an industry case study for innovation.
2. About Multi-Channel & Omni-Channel Retailing
Retail marketing channel trends:
Focusing on the store / pure online
or mobile experience
Creating various points of sale,
whether physical or digital, where
the shoppers have more options to
choose from
A merging of the various channels,
so that a shopping trip may
seamlessly begin in one channel
and end with another.
In 2015 – 2016, channels are
predicted to include new Internet of
Things-led channels, including
Beacons and wearables, to give the
customers a better omnichannel /
“phygital” experience.
single-channel
multi-channel
Omni-channel
3. About this Case Study
• House of Fraser is a British department store group with over 60
stores across the United Kingdom and Ireland
• House of Fraser is a shopper-centric retailer, responding to shopper
trends and utilizing digital innovations in order to help the shopper
gain a satisfying shopping experience
• This strategy has helped the company increase sales, and the retailer
is considered as one of the best multi-channel retailers in the UK, and
in our opinion – an omni-channel best in class. All that, in what
seemed like an old-world industry – department stores.
• Here’s how…
4. House of Fraser | Multi-Channel Strategy
• 2014 online sales > 14%
• 30% of customers shop
online / online and in-store
5. House of Fraser | From Mobile to Omni-Channel
• In 2013, the retailer noticed a substantial
increase in traffic from mobile and decided
to invest in mobile technology
• In addition to launching a mobile site, the
company launched an app for in-store or out-
of-store use
• The app detects that the customers are in
store and slips into store mode.
The app includes a scanner enabling customers to retrieve
product information, check stock availability, and even pay &
have the product delivered to their homes. The app offers a
loyalty program - collecting points and receiving rewards.
6. House of Fraser | Beta Testing Strategy
• The retailer pilots new ideas before
any wide implementation. This
allows the company to innovate
often, in brave new ways, without
risking a lot of money
Recent pilot: beacon-enabled store mannequins on the Aberdeen store in August
2014, enabling stores to be shoppable at night when customers pass the windows. When
shoppers are within the 50-metre range of mannequins, the beacons provide shoppers with
further information on items the mannequin is wearing via the app.
7. House of Fraser | Omni-Channel, Amplified
• Buy and collect has been a huge success in e-commerce.
Retailers have been partnering with other industry players,
to offer wider collection capabilities.
• House of Fraser has partnered with Caffé Nero, to enable
customers to come in the coffee shop at their convenience
to pick up items ordered online from House of Fraser.
• In-store, customers collecting online orders check in at self-
service kiosks when they enter the store. They will then
receive a text message giving them an estimated waiting
time and a link through which they can check their progress.
The method allows shoppers to enjoy a more leisurely
experience and House of Fraser to potentially gain further
sales.
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