the future high street - chambermaster.blob.core.windows.net · supermarkets retail change....

The Future High StreetAnthony Shapland

27th June 2019

Confidential – Colliers International 2017

Anthony Shapland, BSc (Hons), MRICS

2

• Director and Head of Development Advisory

• 37 years as advisor and principal

• Sainsbury’s and Marks and Spencer

• Government Taskforce looking at Town Centres in 2013

• Around 800 staff in 14 offices in the UK

• Global real estate brokerage company

• Multidisciplinary offer across the country


Colliers International - Global


Colliers International - Services

High Street Evolution


1950s – PresentThe Evolution of our High Streets

150 Years of ChangeSainsbury’s

Retail - 40 Years of ChangeWhat drove this situation?


SupermarketsRetail Change


Out of TownRetail Change


Shopping Centres Retail Change


Big Box RetailRetail Change


Car Free – High Wycombe


Car Free - St Austell


ParkingMSCP

The Internet


The Rise of the InternetRetail Change


Home deliveryRetail Change


Channel Hierarchy Retail Change

• One in every five pounds spent with UK retailers is now online. –

ONS June 2019



Annual total retail sales, store-only sales and online-only sales



0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1950s 1960s 1970s 1980s 1990s 2000s 2010s 2020s

High Street Out of town Internet

Retail Trends


General Retail Trends

• Demand for shopping centres falling

• Changing consumer behaviour

• Online increasing, but differing experiences

• 20+ years of continuous shopping centre development

• Retail not as important as experience

• Pure retail centres have never existed

• Active and passive leisure becoming more important

• Decline in global brand coffee shops!

• Independent is good

• Shorter leases



• New way of thinking – online (clicks) want shops (bricks)

• Independents have access to global logistics

• Customer engagement, not sales performance = sticky

customers

• Data collection is vital

• Physical shops increase online sales!

• Amazon Go, launched in 2016, still only has one shop

• Augmented Reality (AR) is the next “big thing”

• Technology to augment the experience is here

• Store in Store



• Health & Beauty and Entertainment -11%

• Coffee shops and restaurants -3.7%

• Services -5%

• Store closures in the UK at 14 per day – over 5,000 pa

• Rental growth flat - Vacancy rate up

• Burberry profits down 36%

• Superdry +3.1% in revenue - instore declined by 2.3%

• Experience rather than retail will prevail

• Placemaking and Heritage are vital

• Long opening hours require activities and events

• Food & Drink offer is good



• Too many shops

• Too many goods

• Too much choice

• Too much competition

• Too much waste

• Price wars

• Total cost of occupation

• Not sustainable

Retail remains about people clustering and dwelling in the same place to

experience and enjoy their surroundings – “doing stuff and connecting”

The Future High StreetTechnology to Enhance Experience


Concept StoresRetail Change


Technology in retailRetail Change

Virtual mirrors

Connected shopping experience

Multi channel retail


Technology

The Future High StreetFood & Beverage


Evening EconomyOpportunity?


Altrincham ‘Foodie’ MarketManchester


Street food

The Future High StreetAll Doom and Gloom?


The Modern High Street?


The Modern High Street


Debenhams

• 166 UK Stores – “Stores too large”

• 26 weeks to March 2019 sales down 7.4%

• Underlying earnings down 36.6%

• New owners – Barclays Bank and Bank of England

• Closed in Australia - £18.3 million loss in Ireland

• Blames IT costs and leases for poor results

• Bad bricks and bad clicks

• Seeking to reduce number of stores and half the floorspace

The Future High StreetThe Right Skills


• Almost last, but not least – if is relevant at all levels

• Many reports, guides, economics, retailing, people

• Customer service training has always focussed on the premise that

‘the customer is always right’. Keeping a customer happy was the

best way to retain clientele. Is this enough?

• Customer service staff require the following essential skills;

✓ communication skills

✓ active listening skills

✓ problem solving skills

✓ upselling, or suggestive selling skills

✓ technical skills - product knowledge

Skills, Training and Education - 1


• Can a robot do the job? Recent research by Alphabeta shows that

35% of a retail sales assistant’s job is susceptible to automation

• This leaves 65% of work time of a retail sales assistant’s job that is

less susceptible to automation.

• What skills should we focus on when training in customer service?

• Customer Care skills and building trust through credibility (the

customer trusts what I say), reliability (the customer trusts me to do

what I said I’d do) and intimacy (the customer trusts me with their

needs & wants).

• Spend less time on self-orientation and more time listening to the

customer.



• Consultative Selling skills – asking the right questions to determine

customer needs. Who, What, When, Where, Why, How? Allow the

customer to speak 80% of the time. If a customer talks, they are

comfortable; if they're comfortable they like you; and if they like you,

they are more likely to buy from you.

• Creating a memorable experience - remembering the customer’s

name and their last purchase. It’s not what you do, but how you do it.

A customer could shop online - however if the customer has a

good relationship with the sales assistant it is more likely they will

return for advice.

• With training and confidence, a retail worker will spend nine hours

less on physical and routine tasks like stocking shelves and nine

hours more on tasks like helping customers to find what they want

and providing them with advice.


The Future High StreetTown Centre Opportunities


• Who owns our town centres?

• Who manages our town

centres?

• Point of differentiation

• Clutter / Signage / wayfinding

• Upper parts

• Total cost of occupation

• Car parking / cost

• Wi-Fi

• Spaces – hard and soft

Town Centres and Retailing


• Out of Town is changing

• Shopping Centres are changing

• Big Box is changing

• Leisure is changing

• Destination

Town Centres and Retailing


Initiatives Portas, Grimsey, Government, Universities, Private Sector

Who are the anchors?

What are the anchors?

We all have a part to play

Training and skills

Leadership

Government

The BID

“By becoming gathering points for whole communities, who also offer a great

experience facilitated by technology and incorporating health, entertainment,

education, leisure, business / office space and shops at the heart of a thriving

community hub, every high street can have a positive future.”


• There is no simple answer – multi level issues

• Everywhere is different and unique

• There are global trends, which we must understand

• Retail is moving faster than ever before

• Government policy and planning are vital

• A mix of retail, business, entertainment, tourism and culture

Summary

“Ghost Town to Boom Town”

Thank you

the future high street - chambermaster.blob.core.windows.net · supermarkets retail change....

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