High Street says: “Rumours of my death are greatly exaggerated”
Added: (Mon Aug 23 2010)
Pressbox (Press Release) -
I have been reading reports that the High Street is just about dead on its feet and is about to keel over at any moment: don’t you believe it. Sure, the retailing scene is changing fast. Online retail sales are rising faster than those in the High Street. But don’t let us get carried away here, let us look at the retail scene in proper perspective. In 2009, the latest year with full year figures available, online sales reached 10% of total retail sales. Put another way, this means that 90% of all retail sales were made off-line, that is in bricks and mortar shops on the High Street and in Shopping Malls (Figures from Centre for Retail Research).
I agree that e-commerce is a great way to boost retail performance and increase the size of your customer base. There are a number of brilliant examples of online retail businesses that are producing excellent results. Moonpig.com, an online greetings card retailer had sales of £31.3m in 2009. A great sales revenue derived from selling a unique product online. Another online retailer who is doing very nicely is Net-a-Porter. Founded by a fashion journalist, Natalie Massenet, the founder pocketed £50m when the business was sold earlier this year to a Swiss luxury goods company for a figure of £350m. E-commerce is big business, and getting bigger. Having unique products that are not found elsewhere is a key element in the success of Net-a-porter and Moonpig. Another successful online retailer that has unique products in its range is Notonthehighstreet.com. They do deals with suppliers that tie them into selling solely to Notonthehighstreet, thereby completely eliminating any competition with those products.
There is no doubt that online retailers are growing their sales faster than High Street retailers. But the most successful retailers of all are those that operate Clicks and Mortar businesses, with both online operations and High Street shops. They are getting the best of both worlds. Retailers with both online and High Street operations showed sales increases of 18% whereas online only retailers had sales increases of just 8%*. As a Retail Consultant who has operated successful multi-channel retail businesses, I believe this proves that the future of successful retail belongs to those retailers who create an integrated and holistic approach to reaching the customer. (*Sales figures from July 2009/July 2010: IMRG Capgemini e-Retail Sales Index).
The message to anyone already in or thinking of starting up in retail today is, get integrated: online and instore.
To offer a joined-up retail proposition to the customer a retailer should consider these key elements:
Brand Consistency
Ensure that the customer experiences a consistent experience with your brand when they enter your physical store or your website. Yore different sales channels must consistently and positively market your products, through up-selling and cross-selling both online and offline.
Customer Relationships
Investment in CRM systems to ensure that your customer is recognised and treated well whether they are approaching you instore or online.
Also treat each customer as an individual. Tailor offers and sales to that individual. Do not adopt a “one size fits all” approach.
Be Accessible and Helpful
Your sales consultants in your stores are helping and assisting your customer to buy. Your approach online must be equal to your help instore. Add click to call or click to chat functionality to your website.
Keep it Simple
Your store layout and merchandising make it simple for customers to buy your products. Your website should do exactly the same. It should have easy navigation and hassle-free shopping cart. You should be delivering a superb customer experience: both online and instore – be consistent, be integrated, be successful.