It seems a bit odd to think about the storied high streets of Europe adopting modern technology and embracing e-commerce. But statistics show that these areas are affected by retail technology and e-commerce just as any other retail property type. According to a report from Interactive Media in Retail Group (IMRG), footfall along UK high streets has decreased by over 25% between 2007 and 2013, as consumers moved to making retail purchases on-line.
The good news is that many high street retailers are getting smart and evolving to combat this trend.
Business 2 Community recently detailed some high street retailers that are adjusting to the challenge.
The strategy for John Lewis includes opening a number of smaller “digital” stores that will guide customers using interactive technologies to help them find what they need. Oasis, which was named one of the top omni-channel fashion retailers in the world, is adding technology to allow customers to order items on-line and collect them in the store.
Oasis stores also use iPads to find out-of-stock merchandise in a warehouse for delivery directly to the customer.
Even the UK government is assisting with retailers’ attempts to combat falling foot traffic.
The Telegraph recently reported that British high streets will not need to seek permission to add collection points for “click and collect” customers.
Penny Mordaunt, High Streets minister, said in the article, “Click and collect is set to be the next big thing on the high street, as discerning online shoppers look to the convenience of the high street as much as their computer screens,” the Tory minister said.”
Sean Gillies, head of retail for Savills in London, recently stated, “Most UK retailers are now aware of the benefits and limitations of technology to drive sales and market share. A well-designed website can lead to far higher level of customer engagement and informed purchasing decisions. The reality is, however, that internet sales are not necessarily profitable sales unless driven via a click-and-collect format where the retailer has the opportunity to upsell the customer when in store.”
Enhancing existing stores with technology is proving successful. But what about all those empty spaces? The high streets have an answer for those too.
Nexus Engage, a company focused on “transforming unused space into amazing consumer engagement experiences,” recently installed an interactive display in an empty store window to advertise the Microsoft Surface 2. According to an article on RetailGazette.co.uk, this campaign “achieves over 90 percent engagement with shoppers.” In fact, the project saw “31,662 customers interacting with the window in its first week…”
Even with these technology and omni-channel changes, however, the consensus seems to be that brick-and-mortar stores are here to stay. “Although consumers are more comfortable than ever to do their shopping on-line, specifically the ‘High Street’ luxury shopping experience cannot be replicated virtually. Customers seeking luxury goods will continue to venture into brick and mortar stores in order to be serviced by sales professionals and romanced into purchasing the product,” said Lindsay Ryder, first vice president in the Toronto office of SRS Real Estate Partners.
With all the hi-tech action on the high streets, it’s evident that e-commerce and retail technology affect more than just malls and traditional shopping centers. Embracing these changes can increase sales and foot traffic.