Scott Storey, MD of CTS Retail, is concerned that retailers who focus on their high street presence alone could now be on borrowed time and that the future of retail lies in an integrated approach which combines the high street proposition with a fully functional online presence, enabling customers to continue to shop with their preferred brands in whichever way they prefer.
“Retailers are fully aware that the recession has impacted retail sales across the board, but what is perhaps more important to acknowledge is that customers’ perceptions of the function of the high street have changed too,” explains Storey.
“Once upon a time, it was considered an ‘experience’ to go and spend a day shopping somewhere like Oxford Street or at a big high street shopping mall. What we are noticing is that increasingly, the pressures of everyday life coupled with the recession and the surge in e-commerce has meant that more people than ever are simply using the High Street as destination for their shopping needs, rather than viewing it as the leisurely experience they once used to. This has a huge impact on the sales of retailers who relied on the mass of impulse purchases that results from people simply taking the High Street as a way to socialise, relax and pass away the time.”
According to Storey, this fundamental shift in the way consumers view the high street means that retailers are having to step up their multi-channel activities in order to maintain market share.
“Retailers most recently demonstrating this approach include Maplin and their new mobile application** and Co-op pharmacy opening an online store.*** It is also interesting to see how Clinton’s has embraced ecommerce into its proposition, now offering its customers very similar services via their website to the likes of Moonpig.com. I remain firm in my view that there will always be a place for the high street, but retailers needed to switch on and start being creative if they want to retain market share,” says Storey.
* http://www.retailgazette.co.uk/articles/00222-clinton-cards-rebrands-stores-as-sales-drop-further
** http://www.retailgazette.co.uk/articles/00324-maplin-makes-multichannel-commitment-with-new-app
*** http://www.retailgazette.co.uk/articles/11231-coop-pharmacy-opens-online
“Retailers are fully aware that the recession has impacted retail sales across the board, but what is perhaps more important to acknowledge is that customers’ perceptions of the function of the high street have changed too,” explains Storey.
“Once upon a time, it was considered an ‘experience’ to go and spend a day shopping somewhere like Oxford Street or at a big high street shopping mall. What we are noticing is that increasingly, the pressures of everyday life coupled with the recession and the surge in e-commerce has meant that more people than ever are simply using the High Street as destination for their shopping needs, rather than viewing it as the leisurely experience they once used to. This has a huge impact on the sales of retailers who relied on the mass of impulse purchases that results from people simply taking the High Street as a way to socialise, relax and pass away the time.”
According to Storey, this fundamental shift in the way consumers view the high street means that retailers are having to step up their multi-channel activities in order to maintain market share.
“Retailers most recently demonstrating this approach include Maplin and their new mobile application** and Co-op pharmacy opening an online store.*** It is also interesting to see how Clinton’s has embraced ecommerce into its proposition, now offering its customers very similar services via their website to the likes of Moonpig.com. I remain firm in my view that there will always be a place for the high street, but retailers needed to switch on and start being creative if they want to retain market share,” says Storey.
* http://www.retailgazette.co.uk/articles/00222-clinton-cards-rebrands-stores-as-sales-drop-further
** http://www.retailgazette.co.uk/articles/00324-maplin-makes-multichannel-commitment-with-new-app
*** http://www.retailgazette.co.uk/articles/11231-coop-pharmacy-opens-online