Retailers are feeling the pressure at the moment. Slow consumer spending coupled with a shift to digital purchasing have created a challenging environment.
Hawkin’s Bazaar, LaSenza and Barratts have all entered administration within the last few months and the likes of Tesco, Next, HMV and Game are all down in terms of like for like sales.
Despite these conditions, a number of retailers have performed exceptionally well. John Lewis, M&S, Debenhams and SuperGroup have all seen increases in like for like sales.
So, what have they done to succeed where others have failed? John Lewis has embraced new digital opportunities and has invested in improving the store retail experience with £250million for ‘innovative retail concepts’. This appears to have been a successful strategy with John Lewis being named ‘best buying experience’ and their MD, Andy Street, confirming that "sales during the four weeks to Christmas Eve were outstanding”.
However, alarmist reports on the high street are not confronting the real issue of how changes in consumer culture are impacting on purchasing behaviour. This interesting piece from Trend Watching gives an exceptionally important insight into four drivers for a ‘retail renaissance’.
1. OFF=ON: How the benefits of shopping online can now be had offline by consumers too.
2. RETAIL SAFARI: How experiences still rule.
3. INSTANT STATUS FIX: How shopping in the real world delivers instant status gratification in a way that online (still) can’t.
4. CITYSUMERS: The future of consumerism is urban, and urban culture is retail culture. On a global level.
What is clear from John Lewis’ success and Trend Watching is that online must be used with high street stores to create an entertaining and interesting experience for the consumer.
There is little doubt that the retail environment is changing. What is important is to adapt to the changing needs of consumers while embracing technological change, not resisting it.
Paul Barnes
Media Analyst
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