The state of the UK physical retail space - Part 4: Green shoots
Vaccination rates are increasing, transmissions are decreasing, deaths (thankfully) dwindling close to zero – and we can now shop without social distancing. Tentatively.
Retail spaces are open and hitting encouraging footfall figures and there is a consumer appetite for real-life shopping, so all things considered, the world is making progress. However – that is not to say that the work is done for shopping places.
A theme running through this blog series is how retailers need to be pro-active and be prepared to do things a bit differently to maintain and develop the engagement with their customers. There’s no need for a crystal ball provided that retailers embrace the tools at their disposal to keep in touch with their audience. Customers expect interaction to be informative and relevant to them – to inspire them to visit and spend. It is time to get back to basics: Solid planning; simple, clear messaging; focus on the customer.
Too much time is spent (unwisely) on watching what is going on elsewhere. On-line retail is here to stay. Amazon is not only here to stay but will continue to push boundaries and explore bringing technology to bear in the form of Amazon Fresh and Amazon Salon. The term ‘retail Darwinism’ will become ever more prevalent as the comings and goings on the high street continue. Everything runs its course – consumer habits change with every new generation – whether X, Y or Z – each have their own approach to what they consider to be relevant, and increasingly physical retail has to embrace the fact that nothing lasts forever.
The approach should be to deliver the best possible experience to the existing audience for as long as the offer is viable. Awareness of how consumers consume – information, technology, media, fashion – will be key to evaluating the life expectancy of future brands. Those that do this best – either on-line, or in physical spaces, will be the winners. Getting as close as possible to their customers will allow them to be flexible and innovative and make the best use of their chosen sales platform. With fingers crossed, the landlord/tenant relationship, town planning and government legislation on business rates will all work together with creative retailers to provide not only a vibrant physical experience, but also one that can evolve quickly to avoid a repeat of the void laden shopping spaces that we see now.
The mobility of consumers and their access, appetite and proficiency with technology means they don’t need vast numbers of physical stores or spaces without defining points of difference. We also know that the fiscal costs of renting, fitting out, staffing and promoting a physical space is prohibitive to having an extensive store estate akin to Debenhams or Top Shop. There won’t be as many shopping places as we’ve enjoyed in the past. The ones that remain will diversify – plans are already underway in places such as Maidenhead to redevelop town centres to bring back the multi-use format of residential, office and retail/leisure space to return to a more community feel to our ailing town centres. Developers here will be looking to add retailers that add value to the project, and provide shoppers not only with everyday needs, but what they want.
As long as humans crave interaction and real life experiences, physical retail will have a role to play in our lives. Touching, feeling, sharing, laughing – eating out, drinking – being sociable – all these essentials of our existence ensure a future for shopping places. Who or what fills these spaces is not as certain, but those brands that put their customers at the centre of their world, have a specific mission, an ability to flex, and a passion for embracing change and new things, are the most likely candidates.
To chat about all things retail – from mapping customer journeys to delivering impactful brand communication that drives revenue – please drop us a line!
Alex Venner, Strategic Marketing Director at CAKE, has over 20 years’ experience creating and leading strategies for some of Europe’s leading retail property owners and managers. alex@wearecake.agency