Thomas Cook recently opened its sixth concept store featuring apps and virtual-reality technology. Retail director Joanna Wild spoke to Rebekah Commane about how the brand is developing in an omni-channel market
Last year was a tough one for Thomas Cook. The travel giant closed 195 stores and cut 2,500 jobs.
But 2014 has been a turn‑up for the books, literally, with profits of £33 million reported for the three months from April to June.
The company has just opened its sixth ‘concept’ store, in Bluewater Shopping Centre in Kent, featuring the latest digital advances that allow customers to do their own research using apps and technology, while having agents on hand.
A review of how well the stores are working is under way, with a view to opening more.
Wild said: “Following a review of the stores at the end of September, we’ll look at opening additional stores in this design next year – we have to gather customer feedback first.”
Retail choice
She insists that the aim of the stores is not to move completely towards technology-based retail but to give customers the option.
“We’re extremely conscious with the Thomas Cook brand, which has such a far-reaching demographic, that we don’t go too far with it and get too modern and clinical.
“But equally we wanted to bring it into modern times and update the technology and look and feel of the stores. I think we’ve found the right balance.”
The Bluewater outlet follows the opening of concept stores in Leeds in 2012 and Stockton-on-Tees, Edinburgh, Bristol and Lakeside Shopping Centre in Essex in 2013.
They each feature an ‘Advice Bar App’, developed for Thomas Cook by Microsoft partner Infusion.
“I still believe there’s a need for brochures,” Wild added. “But the way you present them doesn’t have to be on a rack in a store. The whole merchandising question of how to present a product in a more digital way is what we’ve looked at.
“Our more traditional stores still carry brochures – there is a need to still present and merchandise in a way that meets customer demand and choice.”
When it comes to footfall, Wild explains that it’s been a tough market this year but insists the company is “holding our own”.
“With all the external factors going on, I can’t see a world where that will go away – there’s something every year, from ash clouds to what’s going on in Syria and Egypt. That’s just travel: it’s how we deal with it that matters.
“We’re coming to the end of our financial year and heading into a new one and we’ll no doubt have more external factors to tackle.”
Online target
Thomas Cook chief executive Harriet Green earlier told Travel Weekly that the company aims to take 50% of bookings online by the end of 2015, and Wild says that targeting the omni-channel market will balance retail with web-based bookings.
“It’s very much about how we play in that omni-channel space,” she said. “So for me it’s how we fit the offline business to our online business.
“We’re trying initiatives around the format of stores, such as these concept shops, but also looking at how we incentivise and train our own people.
“The customer is choosing whether they want to book with Thomas Cook so we need to retain stores so we are ready and waiting for our customers to book with us, however they choose to.”
Staff training
Wild admits that some staff are fearful of the words ‘digital’ and ‘omni-channel’, so new training programmes have been introduced as well as annual refresher training.
She adds that Cook will again run a retail experience event in the first week of December, with every person at every store going through the event with three main objectives: product knowledge, service and sales training.
“We have a year plan of educationals and we’re in the middle of organising one to our new destination Cape Verde,” she added. “It’s important when we are selling products that we can have our agents go and touch and feel the product.”
Currency sales are significant for Thomas Cook and generate millions in profit.
“Just over 80% of people who come into our stores are walk-in customers so we have to stay competitive with our [exchange] rates,” said Wild.
“Over the past few years we’ve had around 2,000 competitors come into that market so we have to make sure our rates and service are brilliant.”
With regards to the next stores to be converted, Wild says the plan is to assess and take action.
“We’ll wait for the insight from our colleagues and customers and then include that into our planning and decide where the next concept store will be.”