The Web & High Street Retail
Weekly retail spend £6.3 billion - February 2013
Online accounted for 9.7% of all retail spend
Department Stores 27% Y on Y online growth
300% - growth of mobile-commerce in 2012
High Street of the Future
Total store numbers will fall by 22%, from 281,930
today to 220,000 in 2018.
Share of online retail sales will rise to 21.5% by
A further 164 major or medium-sized companies
going into administration, involving the loss of
22,600 stores and 140,000 employees.
In spite of the Portas Pilots, the High Street will
continue to suffer: around 41% of town centres
will lose 27,638 stores in the next five years.
The retail model needs
Mark Prisk MP:
“As consumers, our behaviour has changed. High streets need
to respond to that change if they are to prosper. Online sales
are now 15 per cent of the market, so high streets need to
adapt to this quickly.”
Kim Kadlec, worldwide vice president, Global Marketing Group,
Johnson & Johnson, describes the change in mental models this
“We're entering an era of reciprocity. We now have to engage
people in a way that's useful or helpful to their lives. The
consumer is looking to satisfy their needs, and we have to be
there to help them with that. To put it another way: How can we
exchange value instead of just sending a message?”
It Can‟t Be Done
The 4 minute mile a barrier that humans could not
cross... until May 6, 1954. The day that Roger
Bannister, ran a mile in 3:59.3
In the next 3 years, 16 other runners beat the 4
Shoppers of the Future…
Shop in multiple ways
40% say multi-channel is important*
Check a store‟s website
Compare prices on phone, in store!
Delivery or collection dependant on need
There is a difference in IT skills from one retailer to another. Emailing orders
does not currently work for most business for different reasons: no access to
internet on site, clashes with current order taking processes.
Most retailers have not visited the website after a first time. Those who
have, feel the aesthetic of it needs to change to be more representative of
the locality and personal businesses. General consensus that not enough
emphasis has been placed in differentiating from the large supermarket
There is a level of anxiety amongst retailers about the amount of orders
received although retailers understand OHS still at its infancy.
Retailers that sell their product by weight or portioned are currently making
a loss in trim cuts.
Half of retailers would consider paying greater commission though only if
sales were to increase fairly vigorously. Ability to promote certain
products, make online offers or combination selling were mentioned by
All retailers have trust in OHS Team „I have every confidence‟ (Jill)
All consumers were very happy with the punctuality of the
delivery, packing and arrival conditions and the friendliness of the
All consumers felt it was important to support and use local stores
especially due to the might of supermarket chains like Tesco and
Difficulties have been experienced with the website. For instance, a
customer has asked for a search toolbar for locating items easier than
having to scroll down constantly. Also when scrolling you lose sight of
the basket, which means having to scroll all the way to the top again.
All customers have expressed the need to increase the range of items
available as it appears the basic items, such as milk, bread and
yoghurt, are not available.
More awareness of OHS is needed, one customer only discovered OHS
from reading an article about Mouse Trap on the Observer.