Tag Archives: high street

Positive news for UK retail

Recent yearly results published by Dixons Carphone are good news for all retailers, whether multiple or independent.

Despite price increases and decreasing consumer confidence following the Brexit vote, Dixons has been able to beat the downward trend, increasing pre-tax profits by 10 per cent and like-for-like sales by four per cent compared with 2016.

Looking at the whole of the UK, some key categories have seen lower sales. With TV, for example, seeing a 14.9 per cent unit sales decrease last year, it’s positive news for UK retail that the number-one consumer electronics retailer is proving that consumers are still heading to the high street to buy household tech.

As an agency that represents tech brands in UK retailers, including Dixons Carphone, Gekko’s results in-store agree with theirs, with sales having increased by 5.6 per cent relative to the same period in 2016.

One category that has been particularly significant in improving results for tech retail has been the smart home. Still a growing sector, expected to be worth $58.47 billion (£45.3bn) globally by 2020, the smart home is enthusing consumers to upgrade their appliances and home technology.

In a recent campaign for a smart-home brand, Gekko’s training team created a 68 per cent uplift in knowledge among store staff, which helped deliver a healthy 36 per cent sales uplift in the following weeks.

For independent retail, the strong results seen by Dixons Carphone set an optimistic tone. Gekko knows that 74 per cent of consumers prefer to shop in-store, because it allows them to see, touch and experience the product before buying. Dixons’s results show that consumers are still heading to the high street when looking to purchase a high-ticket item.

These ‘considered purchases’ – products that shoppers need time to think about before deciding it’s right for them – require that additional assistance only found in physical retail.

To match the large retailers in their success, independents need to create a welcoming, ‘showroom’-style atmosphere that will encourage shoppers to try out products before they buy.

A conversation with knowledgeable store staff can easily transform a browser into a customer. Developing categories, such as the smart home, are important areas for potential growth.

Set your store apart by offering shoppers an experience they can’t find in larger retailers, and you too can see these positive results.

Read more at: http://ertonline.co.uk/opinion/positive-new-for-uk-retail/

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Sunday Trading – The 7 Day Shopper

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The rise and fall of the UK high street is well-documented and never far from the news agenda. With retailers scrutinising sales figures and competition being fierce, extending opening hours across Sunday could be a vital first step to rejuvenating the high street and beyond this, the UK economy.

Unlike any nation in Western Europe, the UK is unique in that we like to shop, whilst other nations shop out of necessity, we in the UK like to make our retail therapy more of a sociable brand experience. For a long time now people in the UK have used Sundays as they do Saturdays – to carry out one of their favourite hobbies and pastimes, shopping.

George Osbourne’s recent announcement to shake up Sunday trading laws comes as no surprise. In our current consumer climate, purchases are firmly becoming ‘any place, any time’ and Sunday is no longer an exception to this. Combining the rise of consumer appetite with the reality that people lead extremely busy lifestyles means people want to have the choice to shop for more than six hours.

We are witnessing a shift in the way consumers are buying their goods. There is a lot to be said about people moving online, however a recent article from Forbes reported a 95 per cent of retail purchases worldwide are still being made in-store. This alone should be enough to make the retail industry step up and cater to shopper demand.

As well as ensuring they are adapting to customers developing shopping habits, for retailers, the change in Sunday trading laws is an open door of opportunity. Although we should consider those individuals who want to keep Sunday as a sacred day, looking at this from a commercial point of view – this is all about maintaining a strong, healthy economy in our 24/7 lifestyle, the balance is for retailers to make it work respectfully for everyone’s benefit and lifestyle choices.

Currently in some communities or high streets, stores choose not to open due to the high cost of staffing and overheads costing retailers money instead of making a profit. The laws give retailers the ability to create thousands of jobs through the same trading hours offered the rest of the week, having the option to bring staff in and pay them for longer than 6 hours of work and generate millions of pounds in extra income.

Not only will the changes mean more money in people’s pockets, they will help to boost the UK economy and in a sense help reinvigorate communities and the high street.

The shake up of trading laws is not surprising as sticking to traditional, some say outdated laws, links back to a consumer world that ultimately no longer is reflective of the UK’s lifestyle and desire to shop whenever and wherever they like.

 

Read more at: http://bit.ly/1IGTLVD

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Who Can Save Our Faltering High Streets? Why Not the Mega-Brands?

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The plight of the UK High Street is well-documented. With countless retailers closing and sales figures dwindling year on year, the High Street question is one that many are keen to answer before a great British institution disappears before our eyes. HMV and Jessops were given last-minute reprieves when faced with the gallows, but as we move forward it’s inevitable that more big names will fall upon the hardest of times, with fewer being granted a second chance.
 
There have been a number of solutions mooted as means for saving the High Street. A government minister has also suggested consolidating retail spaces within towns by converting empty units into affordable housing. What’s clear is that initiatives are sorely needed to truly bring life back to dead commercial business districts, so here’s an idea:  Why not ask major brands to sponsor the High Street? Many may feel that it’s perhaps about time corporations demonstrated a bit of social responsibility and gave back to the communities from which they profit so ostensibly.
 
With the point of purchase increasingly becoming ‘any place, any time,’ the emphasis shifts to experience – the need for brands to curate spaces dependent not entirely on sales, but immersive, engaging environments. Environments that consumers can spend time in without any obligation, experience the brand and perhaps become a long-term advocate tied-in on an emotional level.
 
With this in mind, why shouldn’t the biggest brands think bigger? Under the term umbrella branding, the P&Gs, GSKs and Unilevers of the world have all made moves in recent times to bring their masterbrands to the fore and develop a relationship with consumers for the first time in their histories. So why not think beyond single retail units and engage their wider portfolio to create a real immersive experience that also gives back to the community at the same time? Cellular carriers have done this to great effect, as have some CE brands. Of course, I can’t fail to mention Apple, the most profitable retailer by square footage, which Microsoft is presently trying to emulate in the US.
 
Take Unilever, a global masterbrand that has made a concerted effort to place social responsibility at the heart of its operations. Notably, its ‘Sustainable Living Plan’ sits front and centre within the organisation’s modern-day mission and is deemed a ‘strategic response to the challenges our world faces.’ Furthermore, it has partnered with D&AD to create a brand new award, the White Pencil, for the best example of design and creativity that has social good at its core and sets purpose above profit.
 
Unilever has a vast portfolio of brands, including Marmite, Walls, Lynx, Ben & Jerry’s, Dove and Persil to name just a few. According to the figures, it holds over 400 brands worldwide with over two billion consumers using them daily. So why couldn’t they utilize these brands and take over empty retail units? It would both promote the shared ideals and values of the Unilever proposition, but also deliver a unique experience that our towns desperately need.
 
Furthermore, in addition to retail units allocated to various brands within the portfolio, retail space could also be offered to small businesses and students, in order to showcase and sell their products and talents. The current environment makes it challenging for entrepreneurs to start up and an investment from a brand would provide both a valuable platform for budding business owners and also a little bit of hope, too. Plus, such an investment would be a very small price to pay for the opportunity to create a High-Street-wide brand experience.
 
Lastly, much debate has centred upon local communities becoming increasingly homogenized and such a move would go a long way to sparking some life back into our towns. The High Street is so much more than the point of purchase and it’s vital not just to our economy, but also to our society. What better way to engage a community than by injecting some belief, inspiration and positive energy into a struggling economy?
 
Although the burden of responsibility appears to be a hot potato at times, the seeds of social consciences are still sprouting and emerging. It requires bold thinking, indeed, but, in light of tax scandals and ethical controversies, it offers an opportunity for such brands to truly put their money where their mouths are, give back and perhaps change the shape of the High Street for new generations.

Read the full article at http://www.brandingmagazine.com/2013/09/20/mega-brands/

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