Empty shops inevitable if retailers don't adapt
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Following the release of latest figures showing that there are twice as many empty shops in the North than the South, a leading marketing expert has called on retailers to adapt to meet the rapid change in consumer shopping habits.
Professor Heiner Evanschitzky, Chair of Marketing at Aston Business School, says that as online shopping grows, physical stores are becoming increasingly less relevant to consumers. Professor Evanschitzky comments: “Retail competition has been hotting up in recent years with the growth of discount retailers and online services. As a result, too much floor space has accumulated.
"The Big Four supermarkets have already taken action by introducing smaller stores in key commuter belts, meeting our need for ‘what we need, when we need it’, express-style shopping.
"But the heavy investment in smaller stores has led to an oversupply, with store openings in less than ideal locations. It’s therefore no surprise that stores are failing to attract customers and having to close their doors.” Professor Evanschitzky is urging High Street retailers to radically rethink their business models, moving away from the traditional concept of a shop in its entirety.
“The High Street needs to move away from being a place where we physically buy ‘stuff’ to being a place where we can find inspiration and experience what we’re interesting in buying.
"Retailers should open more ‘brand experience showrooms’, presenting brands and letting customers try them out in a relaxed, pressure-free environment. Customers would then be encouraged to go online to buy.
"This is the model Apple have been following, with the company now holding more cash than the US government. This approach will make the High Street a destination to become inspired, motivated and informed, putting it back into the heart of the community, boosting the fortunes of retailers and giving customers what they want.”
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