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High street master presentation for web

  1. 1. The High Street RebornA SeminarThursday 18th April 2013University College LondonEngineering Room 1.03Malet PlaceOff Torrington PlaceLondon WC1E 7JE
  2. 2. The High Street RebornAgenda1.30 – Registration2.00 – Chair’s Welcome - Ian Rutter, Senior Manager Engage Business Network2.05 – Bryan Roberts, Retail Insights Director, Kantar Retail EMEA2.30 – Richard Gomersall, Founding Partner, Insight with Passion2.55 – Refreshments3.10 – Richard Lemon, Associate Director, CBRE3.35 – Hugh Forde, Managing Director Retail, Trading and Training, Age UK4.00 – Panel Discussion – Questions from the Floor4.20 – Networking5.00 – Close
  3. 3. The High Street RebornIan RutterSenior Manager, Engage Business Network
  4. 4. Introduction• Over 30 per cent of the UK population are above the age of 50 and they hold 80 per cent of the wealth in the country;• There are currently more people above the age of 60 than under 18;• By 2083 one in three people will be over 60;• Since 2010, spend for households that include an individual aged over 65 has risen from £109 billion to £120 billion per year.• Social role changes, physical and mental abilities, and occupational changes amplify the diversity of older people in many different ways.
  5. 5. Introduction Projected population by age, United Kingdom, 2010 to 2035 millions Ages 2010 2015 2020 2025 2030 2035 0-14 10.9 11.5 12.2 12.5 12.3 12.1 15-29 12.5 12.6 12.2 12.2 12.8 13.5 30-44 12.7 12.5 13.2 14.0 14.1 13.7 45-59 12.1 13.0 13.2 12.5 12.3 13.0 60-74 9.2 9.7 10.3 10.9 11.8 12.0 75 and over 4.9 5.4 6.1 7.3 8.1 8.9 75-84 3.5 3.8 4.2 5.0 5.3 5.4 85 & over 1.4 1.6 1.9 2.3 2.8 3.5
  6. 6. Introduction
  7. 7. Introduction• "Over 60% of respondents would visit the High Street more often if it presented more opportunities for social interactions."• "Going shopping is a leisure activity for 1 in 3 participants."• "54% of participants shopping trips last one to two hours.“Ageing Consumers: Lifestyle and Preferences in the current marketplace, 2012. Age UK• "This may sound hopelessly idealistic. But those who see high streets purely as a commercial retail mix need to think again."Portas Review
  8. 8. Introduction• "If my review is the catalyst for change, encouraging shopkeepers, landlords, local councils and consumers to engage with an alternative, more optimistic vision of tomorrow, where everyone benefits, then it will have been worthwhile."Portas Review• "High Streets are a really important part of building communities and pulling people together in a way that a supermarket or shopping mall, however convenient, however entertaining and however slick, just never can."Portas Review• “High streets and town centres that are fit for the 21st century need to be multifunctional social centres, not simply competitors for stretched consumers. They must offer irresistible opportunities and experiences that do not exist elsewhere, are rooted in the interests and needs of local people, and will meet the demands of a rapidly changing world.”Action for Market Towns (2011) Twenty-First Century Town Centres
  9. 9. IntroductionThe Winchester Studio is David Lloyd Leisure’s second high street studio aimed atgiving clients of all fitness levels easy, flexible access to exercise and nutritionalservices – in the first initiative of its kind by a major health and fitness operator inthe UK."I am sure it will encourage morepeople in Winchester to be active,stay healthy and enjoy sport.”“David Lloyd Studio will not onlyboost the viability of our towncentre, but will also encourage usto be healthier and fitter. I triedpersonal training and the studio’sfitness equipment today, and I amalready tempted to improve myown fitness levels.”
  10. 10. Introduction"If you track the trajectory of retail from the first humble markets to the VictorianHigh Street through to the introduction of modern malls it’s clear that each kind ofretail becomes more and more organised. Malls are not always better, but they areoften more organised. As such, they can easily provide shared services from parkingto child care to gift vouchers to orchestrating variety in restaurant options."Aaron Shields, Fitch
  11. 11. Introduction“The most vibrant town centres offer a wide range of locally responsiveservices that create a comprehensive retail, cultural and community hub.This is crucial for the future of the High Street as it is an offer that itscompetitors struggle to match. Future Government policy mustacknowledge this, not treating retail in isolation, but empowering councils tointegrate the shopping offer effectively alongside other cultural andcommunity services.”Local Government Association response to The Portas Review
  12. 12. The High Street RebornBryan RobertsRetail Insights Director, Kantar Retail EMEA
  13. 13. What does the high street of thefuture look like?Why the impending death of the high street is your fault
  14. 14. 2012/13 – not a great deal of fun 14
  15. 15. And what do these retailers have in common?• Structural/economic factors• Secondary/retail park locations• Unsupportive suppliers, landlords & lenders• Niche appeal• Strong competition (rivals, online, supermarkets)• Troubled parent companies• Lack of investment in stores & staff• Poor assortment• Lacklustre execution• Underdeveloped multichannel capability 15
  16. 16. Fair to suggest that the climate is not hospitableSource: UK press reports
  17. 17. What is going on in UK retail? 17
  18. 18. What is online displacing? 18
  19. 19. Hypocrisy is the greatest luxury• Outpourings of grief accompanied the demise of Woolies and the administration of HMV• Putting the wringing of hands to one side, these retail brands failed due to a combination of strategic ineptitude and tangible shifts in shopper behaviour Retailing is the most democratic industry in the country. We have voted with our feet and we are beginning to get the high street that we deserve 19
  20. 20. Playing the blame game• European government(s)• National government• Local government• Banks• Landlords• Amazon• Supermarkets• The retailers themselves• Us 20
  21. 21. Real value = price + quality + serviceEDLP, Assortment,promo, customerfixed price, service,private availability,label convenience Private label, brands, solutions, experience, environment
  22. 22. Or looking at it another way... – retailers need to make the shopping trip QUICK – retailers need to have APPROPRIATE PRICES – retailers need to make the trip EASY or FUN
  23. 23. The “worst case” scenario:Retail OtherEmpty stores BookiesCharity stores Payday loans/pawnbrokersPound stores Fast feedersC-stores/symbol groups Coffee shopsHomogenous (last man standing) Chain pubsmultiples 23
  24. 24. The “worst case” – important caveats• Aside from empty stores – which are clearly unwelcome from a universal perspective – it is snobbery and elitism that deems many of these high street components as distasteful additions to the mix• Previous reviews have unilaterally decided (with little, if any, empirical justification) that certain types of business are ‘bad’• Policy should not be predicated on middle class whimsy, but on empirical evidence that evaluates economic benefit as well as social externalities 24
  25. 25. The “best case” scenario:Retail OtherEmpty stores BookiesCharity stores Payday loans/pawnbrokersPound stores Fast feedersC-stores/symbol groups Coffee shopsHomogenous (last man standing) Chain pubsmultiplesIndependent retailers MarketsSocial infrastructure Housing There will need to be a genuine & seamless fusion of bricks & clicks throughout 25
  26. 26. The “best case” – important caveats• There will be no undoing the past: shopper behaviour & retail structure have irrevocably altered• Clearly, economic & financial recovery (touch wood) might alter the pace of change and the evolution of high street mix• Achieving the best case will require some adjustments to the retail ecosystem..................... 26
  27. 27. Outlook• Don’t worry about the stable door, the horse is miles away• Nostalgia is an enjoyable waste of time• Dialogue & collaboration with the ‘baddies’ is essential• More science, less ‘Disgusted of Tunbridge Wells’• Proper, national joined up thinking is required, rather than a morass of regional silos & town teams• Thinking should be backed up by consultative dialogue / research with a variety of representative groups• Acknowledge, realistically, the overcapacity and the obsolescence• The future is multichannel, not online – we need to make our bricks more clicky 27
  28. 28. Richard GomersallFounding Partner, Insight with Passion
  29. 29. Retail Theatre For Town CentresBring your shop floor to lifeTo engage your customers and get them back on the High StreetRichard GomersallINSIGHT WITH PASSION
  30. 30. Who are we?
  31. 31. What do we do?
  32. 32. What do we do?
  33. 33. What we will cover today
  34. 34. Demise of our High Streets
  35. 35. Demise of our High Streets
  36. 36. Demise of our High Streets
  37. 37. Demise of our High Streets
  38. 38. Demise of our High Streets
  39. 39. Demise of our High Streets
  40. 40. Demise of our High Streets
  41. 41. Demise of our High Streets
  42. 42. Why we got involved … VALUES OF IWP  Access for All  Believe in communities  Belief that businesses which do good … get good
  43. 43. What we’ve tried to do… Press Campaign Raised the issues with the Govt invited to IWP WTCC CREATED 2009 2010 2011 2012 2013 We could see Ran our own decline of our Retail Clinics event to help towns and in 7 Yorkshire retailer in offered help towns and Huddersfield to local cities due to lack of councils response
  44. 44. We haven’t been quiet about what we think …
  45. 45. Why we continue to champion it… THINGS CAN BE DONE  Changing the fate of high streets is possible … It needs leadership  Don’t agree there is no future for towns … just need their own point of difference  Don’t believe the internet will take over … just need to give customers a reason to visit
  46. 46. Retail theatre – what is it ? …
  47. 47. It has history and pedigree …
  48. 48. Its about making your store look different …
  49. 49. Its about making your store look different …
  50. 50. Its about making your store look different …
  51. 51. Its about making your store look different …
  52. 52. Its about making your store look different …
  53. 53. Its about making your store look different …
  54. 54. Its about making your store look different …
  55. 55. It’s making sure your service feels different …
  56. 56. It’s making sure your service feels different …
  57. 57. It’s making sure your service feels different …
  58. 58. It’s making sure your people act differently …
  59. 59. It’s making sure your people act differently …
  60. 60. It’s making sure your people act differently …
  61. 61. It’s making sure your people act differently …
  62. 62. Retail theatre – what is it ?
  63. 63. Retail theatre – what is it ?
  64. 64. Retail theatre – what is it ?
  65. 65. Set you apart from the competition …
  66. 66. Become a destination to drive footfall …
  67. 67. Tell your brand story …
  68. 68. Encourage loyalty …
  69. 69. Why do it?
  70. 70. Why do it?
  71. 71. Why do it?
  72. 72. Why do it?
  73. 73. Driven communication …
  74. 74. Attracted and engaged customers through visuals…
  75. 75. Been informative and interactive …
  76. 76. Delivered on their mission / service promise…
  77. 77. How we deliver retail theatre …
  78. 78. Get a clear understanding of the situation …
  79. 79. Understanding
  80. 80. Bring the brand to life …
  81. 81. Bring the brand to life …
  82. 82. Compelling proposition …
  83. 83. Compelling proposition …
  84. 84. Communicate constantly …
  85. 85. Communicate constantly …
  86. 86. Engage at every opportunity …
  87. 87. Engage at every opportunity …
  88. 88. How we deliver Retail Theatre
  89. 89. Refreshment Break
  90. 90. Richard LemonAssociate Director, CBRE
  91. 91. Britain’s high streetsRomantic ideal or social necessity?Richard LemonAssociate Director – Planning, CBRE
  92. 92. Some questions• Is there a place for our high streets?• Does it matter if they disappear?• And if they are to survive, what will they look like in the future?
  93. 93. What the Government wants• Town centres that are: • Vital and viable • At the heart of communities • Competitive/provide for consumer choice • Diverse and individual
  94. 94. What’s been happening?• The rise of the hypermarket• More out of town retail parks• Consolidation: larger stores in fewer centres• Growth of online shopping
  95. 95. The rise of the hypermarket
  96. 96. More out of town retail parks... with a changing role
  97. 97. Larger stores in fewer centres
  98. 98. Growth of online
  99. 99. What this means Major centres Secondary centres Local and smaller district centres
  100. 100. Does this matter?• Of course it does!• Access to shops, services and amenities is essential to social inclusion• But tends to become harder for older people: • Increasing frailty • Declining access to private transport
  101. 101. Does this matter?Percentage of people reporting problems accessing key amenitiesby age group – EnglandAge of household Corner Super- Post Doctorreference person shop market Office16-44 1 1 1 245-64 1 2 2 265-74 3 2 3 375+ 7 8 7 7Source: Survey of English Housing 2004/5
  102. 102. A sustainable future for our high streets?• Not just a romantic ideal• Important for social inclusion• So how to secure their future?
  103. 103. So how do we do this?• Identify each town centre’s role• Be realistic about consolidation• Embrace ‘flagships and outliers’ model• Embrace omni-channel retail• Get the right development in the right place
  104. 104. The role of centres• What role can/should each town centre/high street play?• Should it be retail-focussed?• Or should it focus on services, leisure or community uses?• Need to adapt planning policy accordingly
  105. 105. The role of centres
  106. 106. Be realistic about consolidation• Some of our centres are simply too big• Vacant units discourage people from visiting• And dampens what demand there is• Need to focus on the core
  107. 107. Be realistic about consolidation
  108. 108. Embrace ‘flagships and outliers’ model
  109. 109. Embrace ‘flagships and outliers’ model
  110. 110. Embrace omni-channel retail• Combine the virtual and the physical• Go beyond multi-channel: • Buy online instore • Browse instore online • Different delivery options
  111. 111. Embrace omni-channel retail
  112. 112. The right development in the right place• Need to make the best of key development sites• What’s best for each centre?• And what will the market deliver?
  113. 113. The right development in the right place• New store in Forest Hill• Floorspace increased by 650sqm• Development also includes 11 homes above store• Serves as an anchor• Other retailers complement it
  114. 114. Concluding thoughts• There is a place for our high streets• They are crucial to social inclusion• But they need to adapt, otherwise they will decline• We need to find new ways of attracting people• Once in the centre, people are tempted to do other things
  115. 115. Concluding thoughts• The market is responding• But policy-makers need to guide change• And encourage and allow further innovation
  116. 116. ContactRichard Lemon, CBRETel: 020 7182 2389Email: richard.lemon@cbre.comTwitter: @rlemon_plannerWeb: www.cbre.co.uk/planning
  117. 117. Some final food for thought
  118. 118. Hugh FordeManaging Director Retail, Trading and Training, Age UK
  119. 119. The High Street Reborn Engaging with the older old What part can retailers play in opening the market Is there a place for retailers who specifically target the older consumer
  120. 120. Are older consumers ignored?“Just because I’m over 60 nobodywants to sell me anything anymore”Germaine Greer
  121. 121. Compelling, interesting andOur population is Although older Older consumers The over 55’s will engaging offersageing - over the shoppers will of tomorrow will also contribute to entice themnext ten years we represent a be far more the lion’s share of into buying. This will see an strong growth engaged and growth over the is a challenge, explosion of potential, retailers interested in retail next ten years, as most shopping growth among will need to work than their some 62% of all destinations have older age hard to persuade equivalents of retail growth not targeted older demographics them to spend today. (£48.7bn). consumer and as a result is a missed opportunity
  122. 122. Changing Markets source: The Government Actuary’s Department Worldwide Potential Supporting Ratio(PSR = 15-64s supporting 1 x 65) 1950 - 12:1 2000 - 9:1 2050 - 4:1 globally 2:1 developed world 50+ People 80% UK financial wealth 65+ Households £109 billion annual spending
  123. 123. Changing DemographicsTotal annual retail expenditure by segment £80,000 70 £70,000 60 £60,000 50 £50,000 40 2012 £40,000 30 2022 £30,000 % growth 20 £20,000 £10,000 10 £0 0 0-14 years 15-24 25-34 35-44 45-54 55-64 65-74 75+ years years years years years years years
  124. 124. Changing Age of BusinessA golden opportunity to target the older consumerand keep the high street aliveCurrently the over 50s hold 80% of the nation’s wealthThey are responsible for 40% of consumer spend – that’s £260 billion a yearThey are 20 million strong and growing fastYet only around 10% of marketing focus is spent on the over 50s!Older consumers are more likely to shop locally
  125. 125. Ageing Society : Design Challenges Reduced: Decline in • Mobility • Memory • Sight • Information processing • Hearing • Numeracy skills • Dexterity • Touch Physical Cognitive Economic Social / Emotional • Diminished access• Changes to income to social networks & spending patterns • Changes in emotional• Income value erodes needs / responses over time
  126. 126. Town Centre FuturesOlder consumers potential to heavily influence the future of our town centres 2035 – MEDIAN AGE OF POPULATION The high street and even stores themselves 2020 – 3 MILLION MORE are failing the older consumer. Research PEOPLE AGED 70 AND revealed that retailers could do much to improve ABOVE the shopping experience for older consumers 2015 – HALF A MILLION including tackling: FEWER TEENAGERS AND YOUNG ADULTS The lack of rest areas and seating Poor store layout (particularly narrow 2010 – MEDIAN AGE OF aisles and poor signposting POPULATION 39.7 Shelves at a height that are difficult (high and low) A lack of adequate toilet facilities Deep trolleys which are difficult to Source: Experian (Town Centre Futures 2020) remove shopping
  127. 127. Target the forgotten demographic Products and services that are aligned to their needs Personal care area Personalisation of product choice and usage regimes. Personalised service and advice Clear labelling Friendly, easy to access packaging Delivering better advertising, including via direct marketing, could give many companies an edge. this market is little researched and less understood than traditional targets - it must change to profit from Inclusive product design.
  128. 128. Improving Visual Packaging
  129. 129. Packaging Frustrating to openPotentially very dangerous
  130. 130. Implementing an age-friendly strategy for older consumers Strategic Intent Operational Actions To develop advertising that uses creative techniques that are Awareness – appoint a board-level executive to Communications tested with older customers drive the initiative throughout the company. Ensure the leadership team is aware and To ensure that all marketing collateral is physically suitable enthused for and understandable by older people Scoping – have a clear action plan to measure age-friendliness across all disciplines To include needs and behaviours of older people in the social networking strategy Prioritisation – devise a way to correlate the Online age-friendliness assessment with customer opinion and with corporate/brand values To regularly test websites and apps to ensure they provide a consistent online experience for all ages Training – recognise the team members will need to be trained to understand the needs of To ensure the retail store location, product placement, ageing customers Online ambience and sales staff address the needs of the older customer Testing – implement a process that ensures that any major capital expenditure and developmentProduct project is vetted for age-friendliness at the To design products/services that include the particular needs s earliest stage of older people without overtly referencing age Monitoring – regularly evaluate the quality of theSuppor To ensure that sales and support call centres and their staff touchpoints to measure progress. Also consider t are designed to respond to the needs, concerns and evaluating competitors’ performance frustrations of older customers
  131. 131. What retailers are doing to attract the older consumer Elderly shoppers in Chiba, just outside Tokyo, have never had it so good. While shopping for rice and apples, senior citizens can pop in for a diabetes check, top up on stocks and bonds, pull some yoga poses – and even bag a hot date! Funabashi new retail concept - A shopping mall designed with the elderly in mind. Older shoppers can access medical clinics, benefit from 5 per cent discounts on pension day, partake in any of 140 leisure activities ranging from calligraphy to hula dancing. Kaiser, one of Berlin’s biggest supermarket chains, has fitted out its elderly-friendly stores with brighter lighting, extra-wide aisles that can better accommodate mobility scooters, non- slip floors and even emergency call buttons. Source: Financial Times
  132. 132. In Nov 2012, Age UK launched the Age UK My Phone; an easy-to-usehandset developed and supplied by CyCell.
  133. 133. Panel Discussion