Maintaining profitability as a high street retailer has always been a precarious business.
That’s why, in Warrington and other towns across the country, the high street can seem to be in a state of flux, with shops changing custodianship almost from one week to the next.
Over recent years, this phenomenon has not just affected the small independent stores. Some of the largest chains have been struggling, and many have disappeared entirely. Woolworths, BHS and Toys R Us were among the highest-profile casualties, while Marks and Spencer, Mothercare and House of Fraser have all faced financial difficulties in the past year.
Is ecommerce killing the high street?
High street trading is more difficult than ever, and shop units that used to be like gold dust are now standing vacant for extended periods of time. Unsurprisingly, much of the blame for this has been laid at the door of ecommerce, and with online brands like Asos, Amazon and Boohoo reporting record profits while the high street retailers struggle to break even, that is no surprise.
But the online world is one that is here to stay, so perhaps instead of seeing ecommerce as a threat, the key to high street success in 2019 and beyond is for retailers to find ways to use it to their advantage.
Omnichannel retailing
The most successful retailers are the ones that understand the power of every different channel to market. Today, many of the small independent businesses you see on Warrington High Street are ones that started out online on channels like Shopify. As the business grew, they were able to develop sound backoffice skills, for example through Shopify inventory management processes, that they could then translate into success in a physical store.
For businesses like these, ecommerce is the bread and butter, while branching out into the high street has allowed them to engage with both existing and new customers on a more personal and physical level.
Omnichannel means more than just offering online or offline shopping. It is about understanding buyer behaviour and how a customer might, for example, first look at options online, then make a more detailed evaluation in store, then go back to the online platform for the final purchase.
Old dogs, new tricks
It’s not just a case of the new online sellers inheriting the high street, however. Some highly established stores are thriving like never before in the new era. While House of Fraser was teetering on the brink of collapse, its main rival, John Lewis, was enjoying a period of unprecedented prosperity. This is a brand that positively encourages consumers to use multiple channels for shopping. For example, it provides WiFi so that after trying an item in store, customers can then complete the purchase online if they prefer to do so. In addition, Paul Coby, the former John Lewis CIO, claims the company invented the concept of click and collect, an offering that customers have been enjoying since 2014.
Boots and River Island are other examples of high street retailers that are bucking the trend and thriving financially in these changing times. It can be no coincidence that these are also retailers that have embraced an omnichannel approach.
