"Quote...unquote"

This week’s choice quotes from the retail technology world…

“We will not tolerate retailers on online marketplaces, especially those based abroad who are not within reach of the German tax authorities, doing business without paying sales tax. The bill is to protect honest businessmen from competitive disadvantages.” Ulrike Demmer, spokeswoman for the German government

“In order to survive, House of Fraser needed a £70 million investment promised by C.banner, or hope Sports Direct founder Mike Ashley (who already holds 11% of HoF shares) would make a much-needed loan. But apart from needing an urgent cash injection, the true heart of the problem for House of Fraser is outdated stores and an even more outmoded website.” ParcelHero’s Head of Consumer Research, David Jinks

“In many ways, Japan’s retail technology is ahead of the US, but their options for autonomous checkout were not appealing. When we show them what Standard can do with very little hardware and no scanning at all, they are generally blown away. We’re really excited to get started with Paltac to revolutionise the future of retail.” Michael Suswal, Co-founder and COO, Standard Cognition

“Next’s results show a promising glimmer for traditional retail, in a context where, for several periods, the clothing giant has performed better than expected. Moreover, the company’s ability to capture more custom at full price sets it apart from many rivals who are still resorting to heavy discounting activity in order to attract sales. Looking at some of the factors that have boosted Next’s performance, we can see that the retailer benefitted strongly from a long spell of good weather and likely a lift in consumer sentiment during a period that also included the Royal Wedding and the World Cup.

That noted, we know that historically Next has been equally sensitive to weather patterns, citing unseasonable weather in the past when sales trends haven’t gone to plan. This factor, which is well out of retailers’ control, plays a crucial role in the fortunes of fashion retailers, which is why its digital division is so important; the strength of its online offer absorbs many of the pitfalls to which physical retailing is subject.

Its online offer radically outperforms retail stores, with the online division witnessing growth of 15.5% in full price sales compared to a 5.3% decline for the same in stores during the first half of the year. What’s important to note here is that online revenue has historically accounted for a little less that the retail stores division; takings are not usually split 50/50. So the fact that online has the power to drive up overall growth is really significant. Furthermore, despite the additional costs of warehousing and distribution, its online business is also considerably more profitable than its physical retail division.

We also know that sustained interest from overseas customers is helping to drive growth through online, albeit from a smaller base. This tells us two things: Firstly, that Next’s digital capabilities means it is well-positioned to benefit from a steady rise in cross-border trading. Secondly, that - in the context of a saturated and highly volatile domestic market - it is prudently choosing to follow the money in smaller/emergent markets, which will no doubt reap benefits in the long term.” Anusha Couttigane, Senior Analyst, Kantar Retail (Fashion & Luxury Goods)

"Since our data security review uncovered last year's breach, we've been working around the clock to put it right. That's included closing off the unauthorised access, adding new security measures and launching an immediate investigation, which has allowed us to build a fuller understanding of the incident that we're updating on today. As a precaution, we're now also contacting all our customers to apologise and advise on the steps they can take to protect themselves." Dixons Carphone Chief Executive Alex Baldock

“Would you believe us if we told you it was the weather? Sorry about this! We're experiencing a high volume of traffic.” Vue