Saturday, July 22, 2017

Is the high street fighting back?


Recent years have seen countless headlines about the death of the high street, as the digital revolution sent the heads of traditional bricks-and-mortar retailers spinning.

This Christmas though, the high street was gifted an uptick in footfall for the first time in six years, according to the latest figures from Springboard released this week. 

Although the statistics were modest, just a 0.2 per cent drop in footfall instead of 2015’s 2.2 per cent, it could well mark a turning point forthe UK’s high streets at such a crucial time.

Further statistics from sources like intelligence company Verint suggest the majority of shoppers believe speaking with a person will always be an integral part of the retail experience.

Nottingham Business School’s Professor Cassidy suggests the high street may have never been on its death bed: “There is a view that the ‘death of the high street’ has always been exaggerated. Although the UK high street has clearly suffered a loss in direct sales as online retail has developed, there have been related benefits to High St footfall from this.

“In particular, the trend for those who order online to ‘click and collect’ and so continue to visit stores.

“There has also been an increase in retail sales generated from tourist spending, particularly in London, since the pound’s sharp fall against other currencies following the EU referendum in June.

“However, having said all this, high street retailers overall delivered a fourth Christmas in succession of declining sales to cap a dismal 12 months for the sector.”

“The ‘death of the high street’ has always been a meaningless concept.”

Andrew McVicker, director at retail property consultancy firm FSP, added that the recent Christmas figures didn’t go far enough to quash fears of high street decline.

“We don’t really buy into death of the high street; there’s always going to be winners and losers.  Yes, there’s an inevitable consolidation of the high street but I don’t see this concern being offset by the recent Christmas figures. 

Despite this, footfall may not be the most accurate indicator of the high streets’ current health. 

“Our national research shows that footfall doesn’t necessarily equal turnover and while footfall may be up versus previous years, shoppers perceive their spend per visit to be going down,” McVicker said.

“Instead, we’re seeing a trend towards the rise of the savvy, experiential shopper, opting for higher frequency, lower spend visits. People need to go out in the world to see touch and experience but unless the experience and offer is compelling, they will go home and buy online.”

READ MORE: High street experiences first footfall uptick since 2011

Lead analyst at Fung Global Retail & Technology John Mercer argues that the concept of the high street itself is inept, and that the focus should shift to the shopper.

“The ‘death of the high street’ has always been a meaningless concept,” he said.

“Retail is shaped by consumer demand: if consumers want to buy online or in shopping centres or on a local high street, then the retail landscape will be shaped around that demand.

“Retail is neither a museum nor a charity, and shoppers cannot be forced to shop where they don’t want to purely for the sake of preserving the concept of a high street.  

“Similarly, looking at footfall numbers can give a misguided view of retail demand. Footfall is declining not only because more sales are goi


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