High street must adapt or die

To survive the economic upheaval high street retailers must embrace multi-channel shopping, according to Phil Duffy of global financial advisory and investment banking firm Duff & Phelps.

He stated: “There is a revolution taking place on British high streets today, one that is changing its face forever, impacting consumers, retailers and landlords alike. We need to recognise this change and both retailers and landlords need to adapt to survive. The driver for this is the rise of online shopping and the continued growth of the out of town retail park.”

According to figures from the IMRG Capgemini eRetail Sales Index, some £5.8billion was spent online in August alone, an 11% increase month-on-month.

Phil Duffy of Duff & Phelps commented: “This trend is expected to continue and with the increase in the number of smart devices – phones, tablets and the like – we would expect this to grow still further.”

He continued: “The message is therefore clear: If the high street is to survive then the sector needs to address the changing habits of the market and adopt a ‘bricks and clicks’ business model. Today’s consumer wants the flexibility this affords and retailers need to address this head on.”

Duffy further added: “Another major trend is the rise of what we would term ‘destination shopping centre’ and again this is going to affect not only shopping habits but retailers as well. Over the past decade the rise of the out-of-town shopping centre had been almost unstoppable and in many cases this has led to the rise of retail citadels such as The Trafford Centre in Manchester or Westfield in West and now East London. Those retailers that focus their energies in these hot spots are going to survive and arguably survive well in the current economy.”

He concluded: “Don’t’ take my comments that the UK retail sector is dead and buried. It is in fact in a period of incredible change. Those retailers that keep their nerve, and focus on adapting to changing buying habits, will be the ones that survive the current economic challenges. Let the market change and put the consumer in the driving seat and the sector will rebound.”