Retail to reinvent itself

According to retail specialist and consumer goods consultancy Kurt Salmon, only 10% of UK high streets are still considered prime locations. This conclusion implies that 3,500 retailers can experience treat due to increasing costs, less consumer spend,

and the increasing growth of e-shopping.

The balance of sales and costs have changed, hence retailers have to look at their business and reinvent their trade. To anticipate on the though and technology driven economy, the number of retail spaces that had to close down is tripled over the past three years. “In a number of cases loss-making and profit-marginal stores can make up a double-digit percentage of the portfolio and over the next three years, there will not be a high street or town centre that will have not changed in some way as retailers look to reinvent themselves and their relationship with the customer,” says Helen Mountney, head of Kurt Salmon’s retail and consumer group in the UK.

To meet today’s consumer, retailers have to offer a more exciting retail environment, service, and be a multi-channel operator. While a new report on the retail sector shows that major retailers are looking to grow their online sales. Many are turning their attention to opening stores overseas, a key component of any growth strategy must remain driving incremental sales by reinvigorating their existing assets - traditional bricks and mortar outlets, which represent 80% of sales - almost £ 300bn.

A one size fits all mentality is no longer applicable to retail business of today says Kurt Salmon. Companies have to localize the product range and make sure they have a compelling shop experience to drag consumers away behind their computer. Further more, the consultancy company advises high street operators to team up on delivery services and promotions or even incorporate shops within leisure complexes to make their retail exciting and more attractive.

Image: T Side

Source: Retail 2011 by Retail Week in association with Kurt Salmon