Is retail being drawn to larger cities?

I went on a shopping trip to Leeds at the weekend and I was a little shocked to see how busy and vibrant it was on a week in late January (at the end of the Blue Monday week) when we are told that people have little or no money. It was cold. It was overcast and it looked like it was a typically British winter day. As the day went on the cold was added to by some drizzle yet there were still thousands upon thousands of people going about their shopping, eating in restaurants and sitting in coffee shops.

Contrast this to my local town which is deserted on a Saturday afternoon except a few men in and out of the bookies and the pubs.

So I thought back to other visits to big cities I have made recently and there is a definite trend emerging. The big cities are taking retail away from the small towns. I suppose it is inevitable if you think about it. The fact that a big city has ample parking, good transport routes and a huge choice of shops will always make it more attractive than a local small town. The fact that many cities (Leeds included) have developed the number of indoor shopping areas only adds to the attraction.

An ongoing trend?
There were so few vacant shops and people were out, even in that weather, selling on the streets. There were student demonstrations in different parts oft the city against eating meat and Donald Trump (surely there is a link there?) and this only added to the vibrancy of the city as a destination. Several coffee shops and cafes were full and were turning people away and some of the restaurants had long queues outside as people waited to be seated.

It all lead me to ask two questions-

1. Is this something that will continue to happen?
2. Is it something that we should embrace?

Let's take a look in more detail.

Is this something that will continue to happen

The short answer is - I can'y see why not. Having a local High Street that caters for people Monday to Friday while going to bigger and better shopping destinations on the weekend is something that will keep on rising in my opinion. The fact that retailers are happier to invest in places where they know they will generate a good footfall helps them to feel more secure.

A central location that offers more then just shops is another ideal for the visitor. I would happily spend the night in a hotel and do a weekend break somewhere like Leeds because there are museums, sports venues, concerts and other things going on all the time. It turns shopping into only a part of the reason to visit a city but an important part of it at the same time.

Is it something that we should embrace?

This blog has been set up to champion the High Street, so it may feel as though I am betraying my roots by proposing we abandon our local High Street on the weekend and trot off to our local city. But the High Street needs to evolve to survive. I think that there are destination High Streets and there are more functional High Streets. The first will be somewhere you go at the weekend while the latter is fine to pick up a few bits during the week and will survive well enough on that.

Read about different ways of creating brand advocacy

This is a follow up to my last blog entry (see http://mytimeinretail.blogspot.com/2015/10/see-how-converting-loyal-customers-into.html) where I looked at converting customers into loyal customers and then into brand advocates. Today's blog is concerned with different strategies for enacting this conversion. There are many different ways of doing this, and as a retailer you will have to find your own way but I'll look at some examples. It's all about creating that relationship with your customers that transform the way they feel about you and how they shop with you.

Loyalty schemes

These have become more abundant in all forms of retail after the success of the Tesco Clubcard. Every coffee shop, large and small, will give you a free coffee after you buy 6 or 8 or 10 with them. But for me, a loyalty scheme should be about more than just trying to twist someone's arm to come back. Loyalty is one thing, but were looking at brand advocacy as the target here. The next step is to offer your loyal customers something that other customers can get. This can be one-off products that the rest of your customers can't buy, invites to exclusive events, the first chance to see new products or another exclusive that only your very best customers can get hold of. These customers will talk positively about you and some will become advocates.

Events

As I've mentioned above, having an event that gives exclusive content to your best customers creates brand advocacy. A new product launch, products that you just can't get anywhere else or additional benefits to chosen customers promotes advocacy. If you have a guest list of certain customers that gain access to these feature then you're creating the next level of customer. If your best customers get a free cup of tea, a personal shopper, somewhere to store their shopping whilst they browse or extended guarantees as a set of examples then they are more likely to return and to tell their friends,

Exclusives

As unintelligent retailers compete more on price and race to the bottom, the intelligent ones are looking onwards and upwards. Exclusives is a huge area to build your advantage over the competition. If you can sell something that no one else sells then the customers of that product will come to you. Of course this means that your sourcing of the product needs to become a focus. Either it's products you make yourself or you need to have an exclusivity conversation with your supplier. Having an exclusive could mean

• a short-term exclusive (for the first month)
• a different design or packaging of an existing product
• a different size to what is available elsewhere

If you then add a high level of customer service, an event or a loyalty scheme to add to your exclusive then you're heading down the road towards brand advocacy.

Is it time for a major retailer to champion the High Street?

He question us rhetorical, but needs to be asked anyway.

In the light of Marks & Spencer's disappointing results today, does someone need to take a stand?

Is there a retailer out there that will say - "Actually we want to do our offline business solely on the High Steet."

Traditionally I would say that Wilkinsons, jewellers, the banks and bookmakers are High Street stalwarts.  Will one of these emerge from the pack and put their wholehearted support behind our town centre High Streets?

Let's have a positive mood to lead the market forward in saying we will protect our traditional High Streets and begin lobbying the government to do more to protect it.

How to increase town centre High Street footfall

Figures released today have shown that retail footfall dropped by 0.1% in April.

However footfall in out of town locations rose by 4% - the 4th month in a row that there had been an increase.

This is more evidence that the government 's town centre first policy is not working.

So what next.  I've looked at certain points in prior blogs relating to how this can be tackled.  Changes to the business rates in vacant shops and incentives from government to help local councils provide free parking are two ways that I think will have a massive impact.

The march of Click & Collect should also see some improvements in town centre footfall and sales figures.

What about YOU as a retailer - what are you doing to keep your High Street vibrant?

Do you have a town centre retail committee?

If so, are you on it?

Are you organising events and incentives to promote your town?

Do you cross-refer to other local retailers?

I think a prime example of the last point is  linked to weddings. A florist should always have a link to a bridal gown shop, a limo hire company, a local wedding cake company - and vice versa.

Local communities of like-minded retailers are stronger together.  Hosting town centre events for Easter, Christmas, Mothers Day, etc will make the whole town sing, encourage people to visit many stores and increase both footfall and sales.

Do this in addition to the moves I have previously outlined and there's a profit to be made!

Councils 'ignoring town centre policy'

The Association of Convenience Stores have said that since the "town centre first" policy was launched, 76% of approved floor space was out if town.  The policy was Government guidance to help keep our Hugh Streets vibrant and to consider the impact of planning decisions on town centres.  The Association claims that local councils are ignoring planning guidance.

The Government needs to go further than this if they want to maintain the vibrancy of town centre High Streets.

They should give cash to councils that make their High Street parking areas free for people that spend on the High Street. The cuts that central Government has made to local councils has forced them to charge for every service and try to make their own money in every way they can.  This affects people's choice of whether they go to the High Street, pay to park and always have an eye in the clock, concerned about a parking ticket. The contrast is out of town, free parking, plenty of time and often more choice.

To compete, High Street have to start with the parking issue.  If you provide free parking for those who spend a certain amount in the town, maybe get your parking attendants to be a little more human and sort out the staff parking situations then it will go a long way to redressing the amount of floor space approved in town centres, as shoppers and retailers will want to return.

Can the Government be radical on landlords with vacant shops?

It seems such a shame when there are rows of empty shops in certain Town Centres.  In my local Town Centre there is a shopping precinct and there is a string of shops with no tenants.  There is a relief on paying rates for the first 3 months - and I agree with this, as it can take a little time to find tenants and find the right tenants.

Where I propose that the Government push a little harder is after the 3 months have passed.  I suggest that business rates in empty shops go to 150% of what they are when occupied - what greater incentive would there be to ensure landlords find a tenant and keep our High Streets vibrant and full if choice.

Do payday lenders have a place on our High Street?

As I looked through the BBC news pages, this article caught my eye.

http://m.bbc.co.uk/news/business-26382481

There are payday lenders on most High Streets, so is greater regulation a good thing for other High Street retailers or not?

For

Well, on a selfish level, there more disposable income our potential customers have in their hand, the more they have to spend in our shop.  Providers of essential items of grocery or personal hygiene products will welcome our loyal customers being able to continue spending.  In the UK we have little manufacturing industry, so a large part of our economy is driven by consumer spending.   The local plus it may provide is jobs for a couple of local people and rent for what may be a local landlord.

Against

In terms of the greater good of our community, money leaving local people as high interest payments and arriving in the profits of international corporations does us little good at all.

It may be our staff that are borrowing in this way, which if used irresponsibly then can lead to longer-term financial woes.  This could eventually lead to absenteeism or, inextreme cases, employee theft.

I am against the "Nanny state" and I think that people should be free to make their own decisions.  There is obviously a market for payday lenders, as they have become hugely successful.  This needs to be balanced with financial education (preferably in school.)

Not everything can be bought on the High Street - James Hunt: The Biography

Valentine's Day gets me thinking…

I look forward through the year, after Valentine's Day for the other days, holidays, events and festivals that will see an increase in trade for the High Street.  Of course the level of trade will depend on your location and the type of retail business you are, as well as other factors.  However, there are certain UK events that will see an increased footfall in your High Street and you will need to be ready with staffing and high-profile window displays to make the most of this.

Some such events are-

Mother's Day

Easter

Father's Day

End of school year

Football World Cup

School Summer holidays

Back to School

Halloween

November 5th

Christmas

Ensure you have diarised far in advance what you are going to do for these events, even if they don't directly relate to your business - as I stated earlier, there will be an increased footfall in and around you.  Speak to other retailers in your town and see what events you can plan together.  Join or form a retailers association to pool ideas, knowledge and budgets to make a big event in your High Street.

Preparation is the key!

Some things you can't buy on the High Street - MP3 version of NOW That's What I Call Disney

Speed of service is key for most High Street shoppers

Although quality of service and spending as much time as possible with each and every customer, the dynamic can change for many of your customers on the High Street. There are time constraints, mostly in the week, from the ticking clock on their parking space, childcare, returning to work from a lunch break and generally trying to fit necessary shopping into an already busy lifestyle.

High Street customers have less time than those in edge if town stores.

As quality, successful retailers we react to the reduced amount of time our shoppers have.  We need to man the tills, with a back up available nearby, especially at lunch time. Staff lunch breaks need to be worked around this. Putting a positive spin on this with your team will help with morale.

Stock replenishment needs to be complete before and after the busy hours over lunch time.  This ensures availability for lunch time shoppers (especially important if you sell lunch food items) and keeps your replenishment staff ready to assist customers on the shop floor and tills.

Management need to be visible on the shop floor and available to motivate their team at this vital time of the day.

Let's gear our teams up for this important time of the day and ensure we make the best if our High Street location.

Some things you can't buy on the High Street - Kindle version of The Husband's Secret