The retail landscape has been changing and evolving ever since online retail businesses allowed consumers a greater choice whilst shopping from home.
But is it just the internet to blame for the shrinking footfall on our streets?
May 2019 figures showed sales had declined 2.7% according to the latest BRC-KPMG Retail Sales Monitor.
This compared to a 4.1% increase for May last year.
So what do retailers need to do to reverse this worrying trend?
The ‘buzz’ word at the moment seems to be around ‘Customer Experience‘.
Gone are the days when people used to specifically spend a whole day just shopping.
It seems that now you can buy a new outfit, have a coffee, play mini golf, sign up for a mortgage and book a holiday all in the same store.
Customers want choice, they want convenience, they want to walk away from a shopping trip with their entire ‘to do list’ checked off, yet also feel like they’ve had a fun day out.
Retailers who aren’t investing in the physical space, are citing business rates as a permanent barrier. Couple this with an antiquated taxation system that means that retailers must pay huge sums of money, regardless of whether they’re making money – and you can see why many are in a ‘Twist or Bust’ scenario.
Now is not the time for retailers to cut back on investing in Customer Experience.
It’s going to be a rocky H2 for the sector and we certainly expect more insolvencies before the busy Christmas trading period.
If you would like a free market appraisal of your retail debtors just CLICK HERE.
Abacus Credit Insurance Brokers