Who will lead the high street resurrection?

We may never know what Nietzsche thought of the UK retail sector. However, with today’s troubles, there is a good chance that he may well have felt the need to update his famous quote; ”the high street is dead... and we have killed it.” Walk down any UK high street and it is clear that things are not as they once were. Household names are disappearing at an alarming rate, while more and more units are being converted into flats or other residential uses. The high street as we knew it is dead. Having played a fundamental role both economically and socially; whatever happens to the high street will have an effect beyond just stores disappearing. All that being said, right now the speed with which shops are going is truly shocking. In 2018 alone, the UK had a net loss of 7,550 shops. And why should we be surprised? Shoppers can head into a town centre to pay more for a product or click a few buttons on their phone and get the same item cheaper. The convenience of the high street is not on its own enough to save it. The demise of Debenhams, House of Fraser, Marks and Spencer and The Arcadia Group is sadly predictable against this backdrop. The danger though is that as each store closes, it creates a cascade effect as consumers have less and less reasons to head down to the local high street. Over time the remaining stores come under even more pressure which can run the risk of creating a vicious circle. Not just retail Away from retail, though and the state of the high street doesn’t get any better. Recent news of Jamie Oliver’s restaurant business collapse demonstrates the tough trading conditions that the hospitality sector is suffering with too. And while these are bad, for the first time ever banks overtook pubs for as the fastest declining category in town centres last year. As more of our lives move online, it is not just the retail sector that is struggling and turning our town centres and high streets into graveyards. The real worry though should be that this all has a big impact on the most vulnerable members of society such as the elderly. With many elderly people lacking the IT and technology skills that younger generations have when a bank or store closes they are often faced with no other alternatives and so forego services that for many years they have enjoyed. We need a saviour This is a bad place to be. For the sake of our communities and economy, we need to resurrect our high streets. However, it is equally clear that we can’t bring the high street back in its previous form or move to a highly tech-driven approach that utilises day-to-day shopping behaviours. What is needed is a new street model that meets all of today’s consumer needs without limiting or degrading customer experience service or delivery. To do this we need all of the high street stakeholders to work together. This means that as well as retailers, hospitality businesses; local councils and even commercial letting companies need to look at what they can do. As recent research from KIS Finance has highlighted, the areas that consumers want fixed are not solely the responsibility of traders. Things like free parking and better transport links will need to be driven by councils and local authorities, while better checkout processes and improved shopping experiences will have to come from retailers and hospitality businesses. What we need to create are steering groups that include representatives from each stakeholder group. To guide the next phase of the high street is going to be a major challenge. Issues such as rapidly changing customer and human behaviour along with ever increasing demands on customer experience mean that the window of time needed to review, plan and deliver these change strategies is getting ever smaller. Right now time is something the high street has very little of. So while we push for steering groups to be established, retailers can still make changes to improve the high street and their position on it. One way to do this is rethinking the in-store experience. For instance, having shops laid out as experience zones or where products can be tried and tested is one way to do. Going a step further, businesses can look provide services such as gyms or yoga classes either within or near a store. Over time, these uses can pull customers back into stores and offer a genuine experience rather than just a place to buy products. The power of returns As well as looking at the function of a store, retailers can also make even smaller changes and still see a big benefit in terms of getting customers back into shops. In Valitor’s latest report on the After Payment Emotional Experience (APEX) it was found that over half (54%) of consumers expect at least a basic level of care after making a payment. A key part of the APEX is returns, which are now a big focus for consumers. In fact, nearly two thirds (60%) of shoppers will not go back to a retailer again if they have issues with returning a product. In addition, over a third (38%) of consumers want to be able to return a product to a physical store. Retailers should look to leverage their physical presence to offer a better returns or refunds process and develop this as a point of differentiation to online competitors. Raising our high streets from the dead is no small feat. Long term, creating steering groups that take in the perspectives of all stakeholders will lead to more joined-up thinking and more reasons for consumers to head down their local high street. However, retailers should not rest on the laurels. Rethinking how their existing stores are used and how customers can be drawn in will help. Focusing on returns policies too can also give physical stores a way to compete against online retail. The high street as we knew it is dead. Nonetheless, by preparing and planning now, we can save the high street and create something better from its ashes. Angus Burrell, General Manager UK, Omni-channel solutions, Valitor

Who will lead the high street resurrection?

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