Can High Street Stores Rise to the Challenge Presented by Online Retailers?

The UK high street is facing a huge challenge against which it must cunningly adapt to survive. Penny (2013) explains that the primary culprit is the internet, which is the gateway to e-commerce. Many large British firms have had to close their doors for the final time, or have had their high street presence severely diminished. Woolworths, Blockbuster, Game, Comet, Jessops and HMV are among those affected, as well as numerous independent retailers.

In an article in the Guardian, Tim Lewis cites figures from the British Independent Retailers Association which shows that town centre chains lost 30 stores a week in the first half of 2013. Many independent shops are holding their ground, however their future is uncertain.

Image Credit: The Sun

Although the UK recession has added to the high streets woes, a major factor in these firms struggle is that they have been slow to adapt their strategies in response to the huge step up in competition stemming from online retailers such as Amazon, who's cut throat prices make it difficult for high street stores to remain competitive. Many businesses regard their high street position as their primary source of income, but it is becoming essential to evolve and encompass online retail into their operations as well as the traditional high street route to market. According to BBC News (2013) December 2012's strong growth in online shopping prevented overall retail sales falling, with 17.7% growth in online non-food shopping.

The only successful high street area was department stores, with Debenhams, House of Fraser and John Lewis all reporting sharp rises in December 2012 sales. Department store's appeal comes from their offering a vast variety of products under one roof, much like many online retailers. They have all also benefited from their strong online offerings, particularly John Lewis with their click and collect service.

This highlights the appeal of ease of shopping to British consumers. From my personal experience I am much more likely to order something because of the convenience of purchasing from wherever I happen to be located and the added benefit of a lower price.

Image Credit: The Guardian

According to Lewis (2013) 10% of all UK retailing sales stem from e-commerce and in the past year UK visits to Amazon have increased by 80%. One in seven UK high street shops now remain empty, so what can be done to counter this problem?

Digitalising the High Street

One possible way could be an initiative that was formed in 2012, My High Street which  is an innovative e-commerce network that aims to bring all the independent retailers across the UK together to showcase their high street goods online in a way that is affordable to them. Unlike traditional e-commerce it aims not only to drive online sales, but also to ensure that independent high street retailers have a presence online while showcasing towns as retail destinations, with the intention of bringing in more footfall. The video below shows how MyHigh.St propose to help the high street stay in business.

               


Another scheme is The Open High Street which, according to O'Connell (2012) keeps things much more local than My High Street, allowing local retailers to offer a click and collect or delivery service for their produce. The scheme was successfully piloted in Hereford in 2012, with a very slick pilot website (pictured below) which looked very user friendly and professional. Another advantage is even if you buy goods from different stores, for example the butchers, bakery and greengrocers, there's only a single checkout and delivery charge. There doesn't appear to have been much movement since this pilot which is a shame as it looked to be an excellent scheme.

Pilot Website for The Open High Street

The high street is an integral part of local economies and livelihoods throughout the UK and it would prove disastrous if the decline that we have experienced in recent years continues. With any luck high street retailers will be able to fight back and continue to grace our high streets with their presence, as opposed to the boarded up shops that we have become far too accustomed to.


Works Cited

BBC News (2013) "Online shopping bolsters Christmas sales". BBC News (Online) Available at <http://www.bbc.co.uk/news/business-20932684>

Lewis, T. (2013) "Going online can save high street shops". The Guardian (Online) Available at <http://www.theguardian.com/local-government-network/2013/nov/07/high-street-shops-online-independent-retailers>

Penny, G. (2013) "How Retail Has Changed: Online vs The High Street". Fourth Source (Online) Available at <http://www.fourthsource.com/ecommerce/how-retail-has-changed-online-vs-the-high-street-14859>

MyHigh.St (2014) "Homepage" (Online) Available at <http://myhigh.st/>

O'Connell, J. (2012) "Could virtual high streets save local shops?" The Guardian (Online) Available at <http://www.theguardian.com/money/2012/sep/15/virtual-high-streets-local-shops>

The Open High Street (2014) "Homepage" (Online) Available at <http://openhighstreet.com/>