Retailers are under threat and need to reinvent their high street stores to increase consumer interest, according to specialist retail and consumer goods consultancy Kurt Salmon.
A new report shows that retailers are looking to increase their online sales and turning their attention to opening stores overseas. However, in order to drive their growth strategy, they need to invest in their UK stores, which represent 80% of sales, almost US$479bn (GBP300bn).
Kurt Salmon said only 10% of UK high streets are now considered prime locations. This leaves 3,500 under threat from losing high profile fascias as retailers re-assess their portfolios following an increase in costs, lower consumer expenditure and the impact of online shopping, the report found.
“In buoyant times, even poorer performing stores provided some contribution to sales and margin but the balance between sales and costs has shifted and retailers now have to re-evaluate,” said Head of Kurt Salmon’s retail and consumer group in the UK, Helen Mountney.
“Retailers can no longer have a ‘one size fits all’ approach to their product offer. They need to have real insight into their customers and ‘localise’ the product range and the layout of a store so that it is compelling to people in their catchment area.
“They also need to add more theatre and excitement so that there are compelling reasons for a shopper to venture into the high street rather than order what they want from their mobile or laptop,” added Mountney.
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