RTIH’s Neil Ainger reports from Retail Technology Show 2023, which is taking place today and tomorrow at London Olympia.
“We cannot do a lot about the [tough] economic environment,” said Peter Cowgill, ex-Chair of JD Sports from 2004-2022 and now a non-Executive Chair of The Fragrance Shop, in a wide ranging discussion about the present tough times during the opening day of Retail Technology Show.
The cost-of-living crisis, due to the pandemic and war in the Ukraine, is impacting retail. But Cowgill advised the thousands of RTS attendees to focus on the fundamentals, such as:
· Differentiating yourselves from the competition
· Using technology to drive retail efficiency [and margins]
· Focusing on customer service, and so on.
“If you are the best in your marketplace then you will win despite the [tough] environment,” he said. “During my era at JD Sports we had the 2008 global crash. But we carried on winning.”
Indeed, during Cowgill’s time at JD Sports from 2004-2022, it went from a UK-centric store-based retailer towards embracing online and expanded into 27 territories, obtaining FTSE100 membership.
As the moderator of the opening fireside chat at RTS 2023, Andrew Busby of Retail Reflections, said: “If you invested £2,000 back then you’d have £1 million+ now”.
Nerve wracking moments during Cowgill’s era at JD Sports included its expansion into the US. “I didn’t sleep for four days,” he admitted, “but if we wanted to fulfil our ambition to become a global brand then JD Sports had to be in the US.”
“There wasn’t a day where I didn’t have some anxiety. But you obviously don’t convey that, and JD Sports was mega successful over my period.”
“Marginal operators tend to fail when times get tough,” added Cowgill, while stressing that focusing on the fundamentals was the best way to navigate the present tough times in the global economy and in retail, where labour shortages and other factors apart from the economic downturn, are also key trend factors, alongside artificial intelligence (AI), general technology, payments, Open Banking and so on – all much discussed in London, UK.
#RTS2023 Is absolutely packed! With 11,500+ of you registered we’re not SURPRISED! – there’s still time! JOIN YOUR UNIVERSE today! https://t.co/DgZZe0zNS3 pic.twitter.com/q6EZu7LzPr
— The Retail Technology Show (@RetailTechShow) April 26, 2023
The Fragrance Shop
Cowgill went on to discuss his new venture, The Fragrance Shop, where he is a non-Executive Chair, admitting that retail is “a drug” that he couldn’t resist getting back into.
“We’re trying to make it the first for fragrance [vs its key UK competitor, The Perfume Shop -Ed.],” explained Cowgill, as he outlined its growth plans online, and via its imminent London shop on the prestigious Oxford Street in the UK.
“Oxford Street grabs the attention of key suppliers and will have a lot of [test bed] innovation,” said Cowgill.
“If it’s successful we plan to roll-out the model to other key UK retail centres such as Manchester, the Meadowhall and Metro malls in Yorkshire and Newcastle, and so on.”
There are a number of similarities with his previous at JD Sports, maintained Cowgill, when pointing to the fact that both it and The Fragrance Shop are:
· Branded retailers: “This means you need to secure distribution from major brands that are protective of their brand identity,” explained Cowgill, while re-emphasising the importance of the imminent Oxford Street store in this regard.
· Service: is vital for a branded retailer. Even if people come in-store, or online, knowing what they want customer service is always a key fundamental.
Trends: working from home
In a concluding session with the packed audience at Retail Technology Show 2023, Cowgill took questions from attendees.
Many of them focused on if the new generation of workers are different or not, and require different management tactics to attract staff during an era of labour shortages?
“I prefer people to work in the office,” answered Cowgill frankly.
“However, you have to move with the times and perhaps be more flexible than we were in the past. Some work from home (WFH) tasks that demand concentration can perhaps be performed better at home, and childcare, less commuting and other benefits are evident.”
“But I prefer the office. I think it helps train up newcomers better, immerses them in the brand identity and transfers the energy and ambition of a company.”
About Neil Ainger
Neil is a hugely experienced freelance business and technology journalist. Further details here.
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