It’s been another sad day for the High Street here in the UK with the High Street giant Mark’s & Spencer (est. 1884) announcing it’s intent to close 100 branches.
Like House of Fraser (est. 1849) in June of 2018 who had to let 6,000 jobs go, a key factor is the move toward online buying.
If you’ve been following our emails, blogs and content for a while, you’ll recall we predicted this trend would continue, not just for our UK subscribers, but globally. We said this not to scare people, but to warn people to take action.
But even if you don’t take our word for it, here’s what the independent experts have to say about the current crisis:
Lack of investment and innovation
Diane Wehrle of market research firm Springboard says the worst department stores “haven’t changed in 10, maybe 20 years.This is because they have not invested enough in upgrading their shop floors, product ranges or online offerings. As we have had access to global products our standards as consumers have increased – we can also buy anything we want online,” she says.
Ms Wehrle adds that their unique selling point – offering a host of different brands under the same roof – has also been weakened in the internet age.
High Street slowdown
These problems come amid a general slowdown on the High Street linked to weaker consumer confidence, online competition and rising overheads such as a higher minimum wage.
But Ms Wehrle believes struggling department stores could have weathered the storm better: “If a retailer blames the demise of their business on these pressures alone they are probably hanging by a thread.”
She points to John Lewis as an example of a group that has adapted well in changing times by ramping up its online presence and investing in its store experience.
Do you see a common trend here?
Do you see a common trend here?
You are vulnerable in business if you do not have the right online presence.
As Paul Martin, head of UK retail at Accountancy Group KPMG, says: “With the overall market not growing, it is all about market share, and 20% of that market is held by online players. If you don’t have the right online offering, again, you will struggle.”
Online giants such as Amazon have had a huge impact on the high street as more consumers see online shopping as cheaper and easier than going to the shops. And while overall retail sales growth is weak, online sales continue to shoot up.
So if you’re an existing business owner looking to leverage the opportunities of the digital economy, or if you’ve never generated any income online and you’ve no idea where to start, but you do know you need to educate yourself, then Stuart would like you to join him for a FREE TRAINING WEBINAR on how to make your first £10K online.
CLICK HERE TO REGISTER FOR STUART’s FREE WEBINAR
What if, all you needed to be in business when you woke up each day was a laptop and wifi, and what if you could work on something you were personally enthusiastic about?
Take action and register here for Stuart’s FREE webinar to find out how that “What if…” is perfectly possible for you.