Post on 28-Nov-2014
description
The High Street Reborn A Seminar
Thursday 18th April 2013
University College London
Engineering Room 1.03
Malet Place
Off Torrington Place
London WC1E 7JE
The High Street Reborn
Agenda
1.30 – Registration
2.00 – Chair’s Welcome - Ian Rutter, Senior Manager Engage Business Network
2.05 – Bryan Roberts, Retail Insights Director, Kantar Retail EMEA
2.30 – Richard Gomersall, Founding Partner, Insight with Passion
2.55 – Refreshments
3.10 – Richard Lemon, Associate Director, CBRE
3.35 – Hugh Forde, Managing Director Retail, Trading and Training, Age UK
4.00 – Panel Discussion – Questions from the Floor
4.20 – Networking
5.00 – Close
The High Street Reborn
Ian Rutter
Senior Manager, Engage Business Network
Introduction
• Over 30 per cent of the UK population are above the age of 50 and they hold 80 per cent of the wealth in the country;
• There are currently more people above the age of 60 than under 18;
• By 2083 one in three people will be over 60;
• Since 2010, spend for households that include an individual aged over 65 has risen from £109 billion to £120 billion per year.
• Social role changes, physical and mental abilities, and occupational changes amplify the diversity of older people in many different ways.
Introduction
Projected population by age, United Kingdom, 2010 to 2035
millions
Ages 2010 2015 2020 2025 2030 2035
0-14 10.9 11.5 12.2 12.5 12.3 12.1
15-29 12.5 12.6 12.2 12.2 12.8 13.5
30-44 12.7 12.5 13.2 14.0 14.1 13.7
45-59 12.1 13.0 13.2 12.5 12.3 13.0
60-74 9.2 9.7 10.3 10.9 11.8 12.0
75 and over 4.9 5.4 6.1 7.3 8.1 8.9
75-84 3.5 3.8 4.2 5.0 5.3 5.4
85 & over 1.4 1.6 1.9 2.3 2.8 3.5
Introduction
Introduction
• "Over 60% of respondents would visit the High Street more often if it presented more opportunities for social interactions."
• "Going shopping is a leisure activity for 1 in 3 participants."
• "54% of participants' shopping trips last one to two hours.“
Ageing Consumers: Lifestyle and Preferences in the current marketplace, 2012. Age UK
• "This may sound hopelessly idealistic. But those who see high streets purely as a commercial retail mix need to think again."
Portas Review
Introduction
• "If my review is the catalyst for change, encouraging shopkeepers, landlords, local councils and consumers to engage with an alternative, more optimistic vision of tomorrow, where everyone benefits, then it will have been worthwhile."
Portas Review
• "High Streets are a really important part of building communities and pulling people together in a way that a supermarket or shopping mall, however convenient, however entertaining and however slick, just never can."
Portas Review
• “High streets and town centres that are fit for the 21st century need to be multifunctional social centres, not simply competitors for stretched consumers. They must offer irresistible opportunities and experiences that do not exist elsewhere, are rooted in the interests and needs of local people, and will meet the demands of a rapidly changing world.”
Action for Market Towns (2011) Twenty-First Century Town Centres
Introduction
The Winchester Studio is David Lloyd Leisure’s second high street studio aimed at giving clients of all fitness levels easy, flexible access to exercise and nutritional services – in the first initiative of its kind by a major health and fitness operator in the UK.
"I am sure it will encourage more people in Winchester to be active, stay healthy and enjoy sport.” “David Lloyd Studio will not only boost the viability of our town centre, but will also encourage us to be healthier and fitter. I tried personal training and the studio’s fitness equipment today, and I am already tempted to improve my own fitness levels.”
Introduction
"If you track the trajectory of retail from the first humble markets to the Victorian High Street through to the introduction of modern malls it’s clear that each kind of retail becomes more and more organised. Malls are not always better, but they are often more organised. As such, they can easily provide shared services from parking to child care to gift vouchers to orchestrating variety in restaurant options."
Aaron Shields, Fitch
Introduction
“The most vibrant town centres offer a wide range of locally responsive services that create a comprehensive retail, cultural and community hub. This is crucial for the future of the High Street as it is an offer that its competitors struggle to match. Future Government policy must acknowledge this, not treating retail in isolation, but empowering councils to integrate the shopping offer effectively alongside other cultural and community services.”
Local Government Association response to The Portas Review
The High Street Reborn
Bryan Roberts
Retail Insights Director, Kantar Retail EMEA
What does the high street of the
future look like? Why the impending death of the high street is your fault
2012/13 – not a great deal of fun
14
And what do these retailers have in common?
15
• Structural/economic factors
• Secondary/retail park locations
• Unsupportive suppliers, landlords & lenders
• Niche appeal
• Strong competition (rivals, online, supermarkets)
• Troubled parent companies
• Lack of investment in stores & staff
• Poor assortment
• Lacklustre execution
• Underdeveloped multichannel capability
Source: UK press reports
Fair to suggest that the climate is not hospitable
What is going on in UK retail?
17
What is online displacing?
18
Hypocrisy is the greatest luxury
• Outpourings of grief accompanied the demise of Woolies and the administration
of HMV
• Putting the wringing of hands to one side, these retail brands failed due to a
combination of strategic ineptitude and tangible shifts in shopper behaviour
Retailing is the most democratic industry in the
country. We have voted with our feet and we are
beginning to get the high street that we deserve
19
Playing the blame game
20
• European government(s)
• National government
• Local government
• Banks
• Landlords
• Amazon
• Supermarkets
• The retailers themselves
• Us
EDLP,
promo,
fixed price,
private
label
Private label, brands,
solutions, experience,
environment
Assortment,
customer
service,
availability,
convenience
21
Real value = price + quality + service
Or looking at it another way...
– retailers need to make the shopping trip QUICK
– retailers need to have APPROPRIATE PRICES
– retailers need to make the trip EASY or FUN
22
The “worst case” scenario:
23
Retail Other
Empty stores Bookies
Charity stores Payday loans/pawnbrokers
Pound stores Fast feeders
C-stores/symbol groups Coffee shops
Homogenous (last man standing)
multiples
Chain pubs
The “worst case” – important caveats
• Aside from empty stores – which are clearly unwelcome from a universal
perspective – it is snobbery and elitism that deems many of these high street
components as distasteful additions to the mix
• Previous reviews have unilaterally decided (with little, if any, empirical
justification) that certain types of business are ‘bad’
• Policy should not be predicated on middle class whimsy, but on empirical
evidence that evaluates economic benefit as well as social externalities
24
The “best case” scenario:
25
Retail Other
Empty stores Bookies
Charity stores Payday loans/pawnbrokers
Pound stores Fast feeders
C-stores/symbol groups Coffee shops
Homogenous (last man standing)
multiples
Chain pubs
Independent retailers Markets
Social infrastructure Housing
There will need to be a genuine & seamless fusion of bricks & clicks
throughout
The “best case” – important caveats
• There will be no undoing the past: shopper behaviour & retail structure have
irrevocably altered
• Clearly, economic & financial recovery (touch wood) might alter the pace of
change and the evolution of high street mix
• Achieving the best case will require some adjustments to the retail
ecosystem.....................
26
Outlook
27
• Don’t worry about the stable door, the horse is miles away
• Nostalgia is an enjoyable waste of time
• Dialogue & collaboration with the ‘baddies’ is essential
• More science, less ‘Disgusted of Tunbridge Wells’
• Proper, national joined up thinking is required, rather than a morass of regional
silos & town teams
• Thinking should be backed up by consultative dialogue / research with a variety
of representative groups
• Acknowledge, realistically, the overcapacity and the obsolescence
• The future is multichannel, not online – we need to make our bricks more clicky
Richard Gomersall
Founding Partner, Insight with Passion
Retail Theatre For Town Centres
Bring your shop floor to life
To engage your customers and get them back on the High Street
Richard Gomersall
INSIGHT WITH PASSION
Who are we?
What do we do?
What do we do?
What we will cover today
Demise of our High Streets
Demise of our High Streets
Demise of our High Streets
Demise of our High Streets
Demise of our High Streets
Demise of our High Streets
Demise of our High Streets
Demise of our High Streets
Why we got involved …
VALUES OF IWP
Access for All Believe in communities Belief that businesses which do good
… get good
What we’ve tried to do…
IWP CREATED
2009 2010 2011 2012 2013
We could see
decline of our
towns and
offered help
to local
councils
Ran our own
event to help
retailer in
Huddersfield
due to lack of
response
Raised the
issues with
the Govt
invited to
WTCC
Press
Campaign
Retail Clinics
in 7 Yorkshire
towns and
cities
We haven’t been quiet about what we think …
Why we continue to champion it…
THINGS CAN BE DONE
Changing the fate of high streets is possible … It needs leadership
Don’t agree there is no future for towns … just need their own point of difference
Don’t believe the internet will take over … just need to give customers a reason to visit
Retail theatre – what is it ? …
It has history and pedigree …
Its about making your store look different …
Its about making your store look different …
Its about making your store look different …
Its about making your store look different …
Its about making your store look different …
Its about making your store look different …
Its about making your store look different …
It’s making sure your service feels different …
It’s making sure your service feels different …
It’s making sure your service feels different …
It’s making sure your people act differently …
It’s making sure your people act differently …
It’s making sure your people act differently …
It’s making sure your people act differently …
Retail theatre – what is it ?
Retail theatre – what is it ?
Retail theatre – what is it ?
Set you apart from the competition …
Become a destination to drive footfall …
Tell your brand story …
Encourage loyalty …
Why do it?
Why do it?
Why do it?
Why do it?
Driven communication …
Attracted and engaged customers through visuals…
Been informative and interactive …
Delivered on their mission / service promise…
How we deliver retail theatre …
Get a clear understanding of the situation …
Understanding
Bring the brand to life …
Bring the brand to life …
Compelling proposition …
Compelling proposition …
Communicate constantly …
Communicate constantly …
Engage at every opportunity …
Engage at every opportunity …
How we deliver Retail Theatre
Refreshment Break
Richard Lemon
Associate Director, CBRE
Britain’s high streets Romantic ideal or social necessity?
Richard Lemon
Associate Director – Planning, CBRE
Some questions
• Is there a place for our high streets?
• Does it matter if they disappear?
• And if they are to survive, what will they look like in the future?
What the Government wants
• Town centres that are:
• Vital and viable
• At the heart of communities
• Competitive/provide for consumer choice
• Diverse and individual
What’s been happening?
• The rise of the hypermarket
• More out of town retail parks
• Consolidation: larger stores in fewer centres
• Growth of online shopping
The rise of the hypermarket
More out of town retail parks... with a changing role
Larger stores in fewer centres
Growth of online
What this means
Major centres
Secondary centres
Local and smaller
district centres
Does this matter?
• Of course it does!
• Access to shops, services and amenities is essential to
social inclusion
• But tends to become harder for older people:
• Increasing frailty
• Declining access to private transport
Does this matter?
Age of household
reference person
Corner
shop
Super-
market
Post
Office
Doctor
16-44 1 1 1 2
45-64 1 2 2 2
65-74 3 2 3 3
75+ 7 8 7 7
Percentage of people reporting problems accessing key amenities
by age group – England
Source: Survey of English Housing 2004/5
A sustainable future for our high streets?
• Not just a romantic ideal
• Important for social inclusion
• So how to secure their future?
So how do we do this?
• Identify each town centre’s role
• Be realistic about consolidation
• Embrace ‘flagships and outliers’ model
• Embrace omni-channel retail
• Get the right development in the right place
The role of centres
• What role can/should each town centre/high street play?
• Should it be retail-focussed?
• Or should it focus on services, leisure or community uses?
• Need to adapt planning policy accordingly
The role of centres
Be realistic about consolidation
• Some of our centres are simply too big
• Vacant units discourage people from visiting
• And dampens what demand there is
• Need to focus on the core
Be realistic about consolidation
Embrace ‘flagships and outliers’ model
Embrace ‘flagships and outliers’ model
Embrace omni-channel retail
• Combine the virtual and the physical
• Go beyond multi-channel:
• Buy online instore
• Browse instore online
• Different delivery options
Embrace omni-channel retail
The right development in the right place
• Need to make the best of key development sites
• What’s best for each centre?
• And what will the market deliver?
The right development in the right place
• New store in Forest Hill
• Floorspace increased by 650sqm
• Development also includes 11 homes above store
• Serves as an anchor
• Other retailers complement it
Concluding thoughts
• There is a place for our high streets
• They are crucial to social inclusion
• But they need to adapt, otherwise they will decline
• We need to find new ways of attracting people
• Once in the centre, people are tempted to do other things
Concluding thoughts
• The market is responding
• But policy-makers need to guide change
• And encourage and allow further innovation
Contact
Richard Lemon, CBRE
Tel: 020 7182 2389
Email: richard.lemon@cbre.com
Twitter: @rlemon_planner
Web: www.cbre.co.uk/planning
Some final food for thought
Hugh Forde
Managing Director Retail, Trading and Training, Age UK
The High Street Reborn
Engaging with the older old
What part can retailers play in opening the market
Is there a place for retailers who specifically target the
older consumer
Are older consumers ignored?
“Just because I’m over 60 nobody
wants to sell me anything anymore”
Germaine Greer
Our population is ageing - over the next ten years we
will see an explosion of
growth among older age
demographics
Although older shoppers will represent a
strong growth potential, retailers will need to work hard to persuade
them to spend
Older consumers of tomorrow will
be far more engaged and
interested in retail than their
equivalents of today.
The over 55’s will also contribute
the lion’s share of growth over the next ten years, some 62% of all
retail growth (£48.7bn).
Compelling, interesting and engaging offers to entice them
into buying. This is a challenge,
as most shopping destinations have not targeted older consumer and as
a result is a missed
opportunity
Changing Markets
source: The Government Actuary’s Department
50+ People 80% UK financial wealth
65+ Households £109 billion annual spending
Worldwide
Potential Supporting Ratio
(PSR = 15-64s supporting 1 x
65)
1950 - 12:1
2000 - 9:1
2050 - 4:1 globally
2:1 developed world
Changing Demographics Total annual retail expenditure by segment
0
10
20
30
40
50
60
70
£0
£10,000
£20,000
£30,000
£40,000
£50,000
£60,000
£70,000
£80,000
0-14 years 15-24years
25-34years
35-44years
45-54years
55-64years
65-74years
75+ years
2012
2022
% growth
Changing Age of Business A golden opportunity to target the older consumer
and keep the high street alive
Currently the over 50s hold 80% of the nation’s wealth
They are responsible for 40% of consumer spend – that’s £260 billion a year
They are 20 million strong and growing fast
Yet only around 10% of marketing focus is spent on the over 50s!
Older consumers are more likely to shop locally
Ageing Society : Design Challenges
Physical Cognitive
Economic Social /
Emotional
Reduced:
• Mobility
• Sight
• Hearing
• Dexterity
• Touch
Decline in
• Memory
• Information processing
• Numeracy skills
• Changes to income
& spending patterns
• Income value erodes
over time
• Diminished access
to social networks
• Changes in emotional
needs / responses
The high street and even stores themselves
are failing the older consumer. Research
revealed that retailers could do much to improve
the shopping experience for older consumers
including tackling:
The lack of rest areas and seating
Poor store layout (particularly narrow
aisles and poor signposting
Shelves at a height that are difficult
(high and low)
A lack of adequate toilet facilities
Deep trolleys which are difficult to
remove shopping
2035 – MEDIAN AGE OF POPULATION
2020 – 3 MILLION MORE PEOPLE AGED 70 AND
ABOVE
2015 – HALF A MILLION FEWER TEENAGERS AND
YOUNG ADULTS
2010 – MEDIAN AGE OF POPULATION 39.7
Town Centre Futures Older consumers potential to heavily influence the future of our town centres
Source: Experian (Town Centre Futures 2020)
Target the forgotten demographic
Products and services that are aligned to their needs
Personal care area
Personalisation of product choice and usage regimes.
Personalised service and advice
Clear labelling
Friendly, easy to access packaging
Delivering better advertising, including via direct marketing, could give
many companies an edge.
this market is little researched and less understood than traditional targets -
it must change to profit from
Inclusive product design
.
Strategic Intent
To develop advertising that uses creative techniques that are
tested with older customers
To ensure that all marketing collateral is physically suitable
for and understandable by older people
To include needs and behaviours of older people in the social
networking strategy
To regularly test websites and apps to ensure they provide a
consistent online experience for all ages
To ensure the retail store location, product placement,
ambience and sales staff address the needs of the older
customer
To design products/services that include the particular needs
of older people without overtly referencing age
To ensure that sales and support call centres and their staff
are designed to respond to the needs, concerns and
frustrations of older customers
Implementing an age-friendly strategy for older consumers
Co
mm
un
ica
tion
s
On
line
O
nlin
e
Pro
du
ct
s
Su
pp
or
t
Operational Actions
Awareness – appoint a board-level executive to
drive the initiative throughout the company.
Ensure the leadership team is aware and
enthused
Scoping – have a clear action plan to measure
age-friendliness across all disciplines
Prioritisation – devise a way to correlate the
age-friendliness assessment with customer
opinion and with corporate/brand values
Training – recognise the team members will
need to be trained to understand the needs of
ageing customers
Testing – implement a process that ensures that
any major capital expenditure and development
project is vetted for age-friendliness at the
earliest stage
Monitoring – regularly evaluate the quality of the
touchpoints to measure progress. Also consider
evaluating competitors’ performance
What retailers are doing to attract the older consumer
Elderly shoppers in Chiba, just outside
Tokyo, have never had it so good. While
shopping for rice and apples, senior
citizens can pop in for a diabetes check,
top up on stocks and bonds, pull some
yoga poses – and even bag a hot date!
Funabashi new retail concept - A
shopping mall designed with the elderly
in mind. Older shoppers can access
medical clinics, benefit from 5 per cent
discounts on pension day, partake in any
of 140 leisure activities ranging from
calligraphy to hula dancing.
Kaiser, one of Berlin’s biggest
supermarket chains, has fitted out its
elderly-friendly stores with brighter
lighting, extra-wide aisles that can better
accommodate mobility scooters, non-
slip floors and even emergency call
buttons.
Source: Financial Times
In Nov 2012, Age UK launched the Age UK My Phone; an easy-to-use
handset developed and supplied by CyCell.
Panel Discussion