Friday, December 3, 2021

Is Retail On The High Street Dead? NO! Here’s Why

Is Retail On The High Street Dead? NO! Here’s Why I Think It’s Very Much Alive

High street retail has going through a tough time in recent years with hundreds of stores closing, but here’s why I think there is still a place for physical shops for many years to come.

Even with the rise of Amazon and other online retailers 85% of retail sales are still made offline. Over 20% of stores are not even fully engaged online.

In a strange twist, Amazon and other online retailer are opening offline stores in the high street and malls!

Apple has huge flagship stores in London and other major cities.

Online retailers Gymshark and The Fashion Bible are also set to open large flagship ‘bricks and mortar’ stores in prime retail space next year. Gymshark, which only started online ten years ago, is opening an 18,000 square foot store in London’s Regent Street, one of the most expensive and sought after retails real estate areas in the world.

Just down the road, London’s luxury department store group Selfridges is being sold to a Thai conglomerate for up to £4bn.

The famous UK retailer owns 25 outlets, including the enormous flagship store covering a whole block in prime position on London's Oxford Street, and branches in Dublin, the Netherlands and Canada. The iconic store was founded in 1908 by US retail magnate Harry Gordon Selfridge and featured in an ITV television drama.

Current owner, the billionaire Weston family, agreed sale terms with Central Group in the last few days, according to the Times and BBC.

Central Group was started in Bangkok in 1956 and is still a family-owned group. The business has been taken global by the founder's son, Samrit Chirathivat, and now boasts 3,700 shops around the world, from supermarkets to electronics outlets, and department stores in Europe.

How will Amazon, Gymshark and The Fashion Bible prosper where the likes of Debenhams died after over 100 years of successful trading?

The answer is twofold.

Firstly, Debenhams, and other stores like Gap and House of Fraser, had lost their way and failed to stay current. This can happen in mature businesses which lack innovation and do not change with the times.

Secondly, and more importantly, online retailers have a massive advantage over traditional bricks and mortar shops. They know their customers!

Amazon knows everything about its customers like me, whereas most shops I walk in and out of know absolutely nothing. Even when I buy something they have no record of me other than a card transaction.

Unless stores change their ways and start engaging with their customers and potential customers they will face a tough time ahead. But those who adapt, like Argos and Next who combine online with offline sales, will survive in the business war for our money.

If you are a retail business owner and need help getting online, contact me – charles@charleskelly.net

Average House Prices Continue To Rise

The annual growth of an average home in the UK rose slightly to 10% in November, up form 9.9% on the previous month, according to the Nationwide Building Society’s data.

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Stock Markets Volatile As New Covid Restrictions Introduced

Markets were down again today after rallying from earlier losses, as uncertainty fears could stall economic recovery.

RPI UK Inflation Rate Hits 6%

The inflation rate as measured by the Retail Prices Index (RPI) is 6%, but the new measure of inflation, the Consumer Prices Index (CPI), stands at 4.2%. Most of us know that real prices are rising much faster than the official rate. Fuel and gas prices have doubled for some and many will face a hard winter.

Could UK Interest Rates Rise?

The Bank of England’s Monetary Policy Committee (MPC) meets on 16 December amid rumours that base rates could rise to curb rising prices.

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