An interesting development in luxury Retail is happening in the US.

Various brands are opening stores closer to where their customers are^[1] .

With travel and dining having been off limits, some customers have turned instead to increase their luxury spend. To cater for this demand, luxury retailers, such as Gucci and Watches of Switzerland have been opening stores in the wealthiest neighbourhoods.

Sometimes these stores are in locations that would not have been seen as ‘traditional’ for luxury retailers. It highlights how payments data can be used in creative ways to help retailers plan their bricks and mortar strategies.

These Retail brands were able to see where their customers were ordering from during lockdowns and have been making decisions based on that payment data to grow their revenue.

Innovation is second nature to luxury brands

With the constant cycle of new collections in fashion and watches and jewellery, innovation is nothing new for luxury brands. It’s second nature for them to react quickly to changing circumstances.

It's estimated that Chinese shoppers accounted for 35% of luxury sales in 2019^[2]  and more than two thirds of growth. A great deal of that was high net worth individuals buying Tax Free goods while travelling abroad.

When travel was largely halted due to COVID-19, outbound tourism almost completely dried up and with luxury Retail forming a significant part of international travel, brands had to adapt their approach.

They did so with new online services such as live streaming, moving to online stores and some have also been innovating with new multi-brand boutiques^[3] which reflect the changes to the Retail landscape post-pandemic.

Payment innovation drives luxury brand success globally

Shoppers expect a fluid Retail experience wherever they are, wherever they shop and whatever channels they choose. It's Retail on their terms.

Expanding internationally can quickly become very complex. That can be a challenge for retailers as they try to integrate a lot of different systems, especially stock management, to ensure a consistent global brand experience for their customers.

A true unified payments platform that connects to inventory systems across all markets and channels is crucial to deliver shoppers expectations.

Retailers need to know they have local support making it important for your payments partner to have offices around the world. That way retailers get global reach and local market expertise.

Having one payments partner means all your stores can quickly benefit from innovative new ways to do things as soon as they emerge. Take mobile terminals as an example. They are changing the payment moment as they allow staff to become more than just assistants. They can take payments, recognise loyal elite customers when they’re linked to your CRM system and deliver the sort of service that shoppers of luxury goods demand.

Mobility should be capable of accepting all payment types from cards to digital wallets. Now that travel is beginning to open up again, you need to be ready to let customers pay in the currency of their choice.

If they are eligible for VAT refunds, the latest terminals can process these immediately. Your savvy staff can then encourage them to spend the refund in store to increase your revenue.

Your staff are your ambassadors

At the heart of every great in-store payments moment is a staff member who can build trust and respect in a matter of seconds.

This isn’t something that comes naturally to all people, so it must be nurtured.

The best brands have always invested in staff training to give their people the tools they need to make a winning impression. Since many shop assistants may be feeling a bit nervous or anxious as shoppers return to stores, now is the best time to invest in more training.

This gives them the reassurance and skills they need to make the best use of today’s payments technology and to recognise the cultural differences of shoppers so they optimise in-store sales.

You can be then be confident you’ll deliver the exceptional service your customers deserve.

Let us help you put the icing on top of your payment moments.

Sources:

^{[1] Washington Post} 

^{[2] Reuters}

^{[3] Jing Daily}