Handbags, flowers, and desserts! What can Sweden learn from London's retail trends?

London is a densely populated city, which means they make use of all available space. New retail developments have sprung up in places that necessarily blend old architecture and infrastructure with new store designs. For example, at Coal Drops Yards in Kings Cross, stores are squeezed into abandoned railway arches and coal storage areas. The irregular store sizes and shapes mean that standard store designs and layouts cannot be used. While this is undoubtedly challenging, it also offers a unique opportunity to create a fresh and interesting customer experience. Many of the stores at Coal Drops Yard are international chain stores, like COS, yet visiting them feels like entering unique, independent boutiques. The distinctive spaces create a sense of exclusivity.

Takeaways for the Swedish retail industry

Using space in unusual ways and designing unique physical store layouts can create fresh and interesting customer experiences, and even a sense of exclusivity.
 

Trend #2: Instagrammable store fronts

One can hardly walk 10 metres down any high street in London without encountering a storefront adorned with bowers of multicoloured imitation flowers. While the excessive use of plastic is undoubtedly bad for the environment, the blooms are rather pleasing to the eye. They also make an enticing backdrop for Instagram and TikTok photos and videos—a trend actively encouraged by retailers, some of whom offer customers the chance to win prizes if they upload photos of the blooms with appropriate hashtags. This is, of course, a budget-friendly way of advertising in social media. A similar trend has been observed in the new generation of art venues that are designed specifically with photo sharing in mind.

Takeaways for the Swedish retail industry

Encouraging shoppers to share pictures of your physical store is a budget-friendly way to generate social media advertising. Arrange interactive displays, colourful settings and flattering lighting to help visitors get the perfect snap.
 

Trend #3: Sustainability in-store

Sustainability is hardly a new trend but, in London retail, we saw it manifest in some new and interesting ways. Several of the clothing stores we visited had dedicated a considerable amount of floor space to a tailor service. The service offered alterations and repairs to clothing purchased in-store, ostensibly to extend the life of the items in the name of environmental sustainability. Offering in-store repair and alterations is not an entirely new trend. Indeed, Levi’s have offered alterations in their stores for many years and Nudie have made repair a key part of their offering. However, the location of the tailor service (front and centre) and the number of square metres of the sales floor it occupied (up to 25) was a clear signal that this is an important part of the store offering. This was mirrored in Selfridges, London’s famous department store, where a large area of the prestigious ground floor has been given over to 'Reselfridges', where preloved luxury bags and accessories are resold and repaired. 

Takeaways for the Swedish retail industry

Integrating sustainable services, such as repair, and selling preloved items may attract new customers with an interest in sustainability. 
 

Trend #4: The decline of digital

A few years ago, interactive digital solutions in physical stores were trending in London and elsewhere. Digital tables that revealed a product’s origin and makeup, smart mirrors, self-scanners, and self-checkouts, were all attractions in flagship stores. During our latest trip to London, we looked for these kinds of interactive digital solutions but found none. Self-checkout was still available in many physical stores, particularly, but not only in grocery retail. And digital signage was ubiquitous in all but the most high-end stores. But the much-hyped digital interactivity was nowhere to be found.

Takeaways for the Swedish retail industry

Retain digital solutions that add convenience or convey information effectively. Avoid gimmicky interactive digital experiences with short lifespans.
 

Trend #5: Dessert

One particularly tasty trend we spotted in London were the multitudes of micro-stores and small restaurants selling sweet treats. Cafés and food stores are, of course, nothing new but these very specialised, small stores often sold only one kind of dessert—Japanese souffle pancakes, cookie dough sundaes, or square croissants, for example. This trend could be linked to the decline in alcohol consumption among young people, who perhaps prefer to socialise over fika instead of beer. However, it is also worth noting the novel and aesthetically pleasing nature of many of the desserts, which makes them particularly instagrammable. See trend #2.

Takeaways for the Swedish retail industry

Stores or shopping centres that create space for micro-eateries serving instagrammable desserts might enjoy more footfall as well as more social media exposure.
 

Text by Carys Egan-Wyer, Centre for Retail Research at Lund University