Page 32 - RLI June 2019

RLI RETAIL INSIGHT

OvercOming

The high STreeT BlueS

FoR THE LAST FEw yEARS, wE’vE bEEN ASkING IF THE HIGH STREET IS
dEAd. IF REcENT mEdIA HEAdLINES ARE ANyTHING To Go by, THE
ANSwER IS A RESouNdING yES. HERE, dAvId buckINGHAm, cEo
oF EcREbo SuGGESTS THIS IS NoT yET THE cASE ANd THAT RETAIL
bRANdS NEEd To INSTEAd FocuS oN EvoLvING ANd AdApTING.

he high street certainly seems to be struggling. High In a press release on the company website, Jeff Gennette, Macy’s,
profile store closures have been prevalent over the Inc. Chairman & CEO said: “The discovery-led, narrative experience
last few years, but retail really hit a slump with the of STORY gives new customers a fresh reason to visit our stores
Tdemise of BHS in 2016, a brand well-known to and gives the current Macy’s customer even more reason to come
shoppers since the 1920s. The likes of Maplin, Toys R Us, and back again and again throughout the year.”
Mothercare followed suit, all experiencing financial issues and In Europe, Austrian billionaire René Benko bought the German
store closures. Most recently, the news that 22 Debenhams chain of department stores, Kaufhof, which has just merged with
stores will close as a result of the brand going into administration the country’s other major chain, Karstadt, also owned by Benko.
has hit the headlines. Unfortunately, this is unlikely to be the last In a recent interview, he stated that he was positive about the
we hear of store closures and retailers in distress. future of the department store in general, especially in Germany
where they are located in bustling city centres. But he added that
IT’S NOT ThE ENd they need to do more than merely sell products; they need to
However, despite the constant negativity, it’s not quite the end evolve into a “luxury urban marketplace” that smoothly meshes
for the high street, it just needs to adapt; to new market conditions, with online retail – an approach that is working successfully for
increasingly demanding shoppers, and the continued advance of his Austrian brand Tyrol, following a redesign.
e-commerce retailers. And it’s not just up to the stores, but town
centres and the high street itself; evolving to meet customer AdApTINg TO chANgE
needs by transforming to become more attractive to shoppers, Looking at the UK high street specifically, the future of physical
including perks such as free parking and pedestrian-only spaces. stores depends on their ability to compete with online retailers,
while giving shoppers a reason to come into stores. This could
ThE STORy Of SUccESS mean using innovative tactics such as Macy’s narrative approach
Some stores are taking this revitalisation to heart, adapting to merchandising, relying on collaborations with other brands, or
to these new conditions and finding success in attracting and looking to transform the in-store environment.
retaining customers. In the US, the department store chain Experiential marketing is having a positive impact for many
Macy’s has reinvented itself by unveiling a new way of engaging retailers; turning shopping from being a chore, to being more of
with its customers. As a fixture in city centres since the 1800s, an experience. The recent opening of Primark’s new flagship store
Macy’s claims to be ‘reinventing retail’ by using STORY, an editorial in Birmingham is a good example of a retailer bringing this to life.
storytelling approach, to bring new life to merchandising. The The store, the largest Primark in the world, includes a range of
concept stores will focus on one merchandising theme at a time, experiences to attract shoppers into the store, encourage them to
and completely change every few months. stay in-store for longer, and keep them engaged once they’re inside.
From a barber and nail salon, to in-store restaurants and free Wi-Fi,
the retailer is using various tools and tactics to drive shoppers back
to the store and encourage engagement with the brand.
Technology can play a major role here, from empowering
sales staff with tablets, to streamlining the payment process and
eliminating frustrating queues at the point of sale. The point of sale
itself can evolve to become more interactive, enabling mobile staff
to take payments wherever they are in-store, as well as adding
functionality that can add to the overall customer experience,
such as using data to create relevant and personalised offers and
messages and deliver them to shoppers at the till.
Then there’s the use of digital signage to entice and inform shoppers,
innovative uses of augmented reality and virtual reality installations, and
practical technologies like self-help kiosks that bring the same level of
choice and convenience of online shopping into the physical store.

ThE fUTURE IS bRIghT
The future success of brick-and-mortar retail hangs on many
things. It’s about finding what works for individual brands and stores,
whether that’s an increase in the use of technology, collaboration with
other brands, or employing new marketing approaches. Retailers
that embrace these and other opportunities wholeheartedly are
likely to be at the forefront of the high street fight back.

32 RETAIL & LEISURE INTERNATIONAL JuNE 2019