Retailtopia; Retail Vision for 2020

A panel of retail, payment and consumer experts – led by London Business School Professor Patrick Barwise, Chairman of Which? – has unveiled a vision for British retailing in 2020. The ‘Retailtopia1’ vision looks beyond the huge short-term

challenges facing the retail sector and suggests a positive future for British shopping in an increasingly internet-connected and mobile society. It describes a far more personalised, interactive and seamless experience for customers who will use technology to shop across virtual and physical boundaries anytime, anywhere.

Professor Patrick Barwise, chair of the Retailtopia panel1, said: “The UK is already a global leader in online shopping, with nearly £30 billion of sales coming through this channel in 20112. But retailers face tough challenges in the current economy. There’s a danger that a focus on short-term profitability and reduced investment in innovation could damage our long-term ability to create the best shopping experience in the world and ensure that we’re still a global leader in 2020.”

The Retailtopia vision focuses on the potential benefits for both customers and retailers. It aims to get retailers thinking about the strategic investment and staffing decisions they need to make to exploit the opportunities. The Retailtopia panel believes that, by promoting success across every retail channel in their home markets, British retailers can also open up new opportunities internationally, which has often proven to be risky for traditional bricks-and-mortar operations.

It also foresees retail environments that take full advantage of wireless technology – giving customers helpful, personalised ways to connect with the store before they even reach it. In-store, contactless payments will increasingly allow retailers to release staff from behind the tills, cutting costs and improving the customer experience.

Aspects identified as shaping UK retail strategy by 2020 include; physical stores will still be vital but will have increased focus on complementing digital strategies, retail experiences will be more customised, personal and interactive, retailers will offer customers a seamless branded multi channel experience, and social media will increasingly complement advertising as a tool in shaping consumer brand perceptions.

Professor Barwise added: “While the management culture in British retail has been evolving, the pace of competition and globalisation means there is a need to invest further in new commercial skills. UK retailers may need to refresh their board rooms to ensure that there’s good understanding of the new business models required to succeed in a multi-channel environment.”