THE SMALL ARE THE NEW RETAIL Polarisation hitting the High Street
IT all started with Woolworths of course.
‘Woolies’, that iconic retail brand that became the ‘go-to’ shop for millions post war. But even the biggest can fall if they do not keep up with the pace of change - and from being a staple presence in the High Street, Woolworths faded from view.
Were they missed? Intially yes, but the world moved on, and even valiant attempts to keep the name up-front, such as the lady who managed the Woolworths branch in Dorchester by setting up a store called Wellworths has recently had to admit defeat - and watched as Poundland took over the site.
And in recent weeks, huge brands such as Comet, Jessops, Blockbusters, HMV have hit the buffers. - and it is likely that others will follow.
There is plenty of evidence that these chains, and others, have been operating on borrowed time - and it is equally true that economic growth wont resume until ‘dead wood’ have been put out of their misery and excess capacity eliminated across the sectors.
Retailing is going through a period of polarisation. Chains such as Poundland, Aldi, Lidl and Primark dominate the value-end of the market, whilst premium retailers such as Waitrose and the high-end brands like Burberry serving the well-off are also doing well. It’s the mid-market that has become a nightmare.
The rapid shift to online retailing has been the driving force for change - but nobody still knows what that means for the future of retailing in general or the High Street in particular.
However, former boss of Selfridges, Peter Williams writing in Retail Week last week, said, “One potential spark is that we are seeing the re-emergence of small retailers. With only a limited store presence and strong internet emphasis from the start, they are emerging as the new retail.”
What does this all mean for retailers (I prefer that description to ‘dealers’) in our industry.
Simply that they need to keep their eye on the pulse of the business. They should do what they do well and strive for customer satisfaction in all its guises. Just being independent, just being a family business, just being a specialist are not in themselves enough. They need to be the best independent, the best family and the best specialist.
The pendulum is swinging back to ‘small is beautiful’ - but that is a description that has to be earned.
