Is the High St dead?
It has recently been reported that vacancy rates in the High
St are at an all time high with a significant number of these vacant lots being
described as ‘long term sick with little or no prospect of reoccupation as
shops’.
It’s really easy to be gloomy and to blame politicians, the
state of the economy, out of town shopping, the internet and a host of other
factors for this situation. The reality is that consumer behaviour has changed
and it is not going to change back no matter what the politicians and planners
do or how the economy recovers.
So shops RIP?
No. And here’s one reason why.
A few weeks back a friend of mine bought some tiles online
to be collected from his local DIY store. When he went to collect the assistant
advised him that he had checked all the tiles to make sure they all had the
same batch number; asked if he had the right grouting; advised him on the right
tools to buy; and provided some advice on how to do a good job.
Brilliant.
And lest anyone thinks that this thinking is only relevant
to the traditional retailer, think again. Such thinking also applies to anyone
who sells stuff. And that must be just about every business in the land.
But for High St retail to survive it must learn to think
differently about what it does and how it does it.
The traditional way of thinking about the role of the shop
has been as a stage in the Sales Funnel, the place where consumers came to buy.
And as a customer journey this was seen as a total linear process. The internet
and in particular mobile connectivity has changed all that and with it new
retail business models, think click and collect, have emerged and will continue
to emerge. As someone said ‘if you are in bricks and mortar you must be in
digital too…or you are dead’.
Consumers now will come into the shop armed with all the
latest knowledge, will look at the products, will go back online to read
reviews, compare prices and hopefully buy. This journey looks less like a
Purchase Funnel, more like a Purchase Fishbone. And must be understood.
Consequently whereas in the past the bricks on the High St were
the place the shopper went to buy. But going forward the store will be the
brand and product showcase that drives revenues across all channels, less a
profit centre and more an essential brand overhead that helps build meaningful
product and brand saliency.
In this world the store is a destination that will augment
the brand experience and will be focussed less on driving sales and more on
engaging the customer through dramatic customer experiences and in-store
theatrification.
And in this environment the role of the sales assistant is
vital. As customers become increasingly well informed they expect more from the
service they receive in store. They expect their store assistants to be
empowered, informed and able to match the high level of knowledge of the
consumer but also add to it and provide additional value. After all, if automation can take care of
the purely transactional or navigational aspects of service, then investing in
a human had better offer something more for their money and give customers a
compelling reason to venture into a bricks-and-mortar store.
And if you want to see the future take a peek inside a Nike
store, an Apple store or Selfridges. These stores direction sign the future and
for any local High St to survive as a retail centre every butcher, baker and
candlestick maker needs to examine these trends and think how these might be
applied closer to home.
The connected, always on consumer is here to stay as are out
of town shopping centres. And as we can’t put the toothpaste back into the
tube, everyone with an interest in the High St needs to embrace these changes
and think long and hard how to respond.
So what do you think about the future of retail? Do you
think it’s on its last legs? Where have you seen examples of great retailing
that fills you with optimism for the future of the High St.
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