Showing posts with label Mary Portas. Show all posts
Showing posts with label Mary Portas. Show all posts

Wednesday, 14 December 2011

Mary Portas on retail: The future isn't the past

Mary Portas’ 55-page review into the future of Britain’s failing High Streets can be summed up in seven words: The future doesn’t lie in the past.
She begins her lengthy examination of traditional town centre retailing by gently pointing out that a key part of the problem is the failure of planners, retailers, landlords and even the public at large to face up to reality.
That reality is that supermarkets and shopping centres have thrived because they offered something which High Streets shaped by another era were always going to struggle with. The days when shoppers could park on the street and meander from shop-to-shop were dying as long ago as the 1960s and 1970s.
From the 1980s onwards, the writing has been on the wall: people leading increasingly busy lives have been looking for four key criteria from their retail experience – convenience, value, speed and an experience (as opposed to a simple transaction). Supermarkets, shopping centres and websites easily tick those boxes. High Streets don’t
Yet planning policies and councillors on planning committees have persisted in trying to preserve an economic model which fractured long ago. I’ve heard many a councillor say that they don’t want a big supermarket on their doorstep because of the damage it might do to local shops.
They should read this one paragraph from Mary Portas’ report:
“The phenomenal growth of online retailing, the rise of mobile retailing, the speed and sophistication of the major national and international retailers, the epic and immersive experiences offered by today’s new breed of shopping mall, combined with a crippling recession, have all conspired to change today’s retail landscape. New benchmarks have been forged against which our high streets are now being judged. New expectations have been created in terms of value, service, entertainment and experience against which the average high street has in many cases simply failed to deliver. These reasons alone conspire to create a new shopper mindset which cannot and should not be reversed.”
Or to put it more succinctly, shoppers have already left the High Street behind. A policy which seeks to preserve it in its current form is almost certain to prolong its suffering and delay its recovery.
Mary Portas may not be the first person to delve into the future of retailing, but councils would do well to pay particular attention to her investigation because it comes at a critical time – and there is an absolutely crucial difference in her approach.
Where others have carried out academic, economic and planning-based analyses, her report is that of a retailer and consumer. Where others focused on improving process, she started with a simple question: what do shoppers actually want?
They clearly don’t want the High Street to carry on trying to serve up a pale imitation of supermarkets or shopping centres. It therefore has to do something different.
What is that something different? Clues are beginning to emerge. It would be about a mix of uses which may still take in some conventional retail formats, but would also look at services which cannot be delivered online and work better locally, socially useful services (like council departments themselves), residential use, leisure and event-based use.
Councils do need to look long and hard at the continuing relevance some of their policies and consider whether they infact do more harm than good. Refusing a planning application for a particular type of shop because it involves a different use is barking mad if the property stays empty. And surrounding the car-borne consumer with parking restrictions, price rises and traffic wardens is an open invitation to go elsewhere. What value is there in a short-term hike in parking revenues when it contributes to the long-term decline in business rates?
The authorities who impact on the way our High Streets operate have got to take on board the scale of the change that has happened in retail and its whirlwind speed. Decades ago, shoppers used to trawl the shops and the streets physically looking for ‘bargains’. These days they go on discount websites, receive email alerts and, in some cases, wield smartphones capable of what’s known as Near Field Communication – so the store can ‘talk’ to them when they walk past.
Against that background, sitting in a council chamber and voting to block a supermarket development is like facing a tsunami with a bucket. Or telling consumers they should go back to a time when they had to spend more time looking for a limited variety of goods which cost more.
Your average independent small-town retailer cannot hope to compete with a global, technology-driven onslaught. Mary Portas’ point is that they shouldn’t even try – they should do something else.
That’s where the debate about the future of retailing in Nottingham’s town centres and high streets has to go next.

Wednesday, 17 August 2011

Retail: What will it take for independents' day to happen?

A shattering silence on this blog for the past couple of weeks because I’ve been up in Northumberland on holiday. There was a shattering silence there, too – in all sorts of ways.
While the rest of Britain was (I’m told) gripped by the riots frenzy there was a smashed window at a small police station somewhere near Sunderland and, er, that’s it.
I stayed in the middle of nowhere a few miles outside Alnwick. Beautiful rugged countryside, so dark only a couple of lights were visible in the distance at night, while the only noise was the distant hiss of tyres from a road up in the crags and the sheep being driven into a different field. Bliss.
It took me a few days to get used to the total absence of an internet connection and an intermittent mobile phone signal, though. But they were an early clue as to why this – and other parts of Britain - remain unspoilt.
The biggest clue was in Alnwick itself. It’s an attractive market town just off the A1 whose major draw is the Castle, where some of the exteriors for the Harry Potter movies were filmed. It’s also the only town of any size for miles around.
What struck me was how few national retail fascias there were on its main shopping streets. Yes, there was a WH Smith, a Boots, a Dorothy Perkins a Morrison supermarket and, outside the centre, a Sainsbury superstore.
But its main retail pitch was nearly all local – a butcher, a hardware store, a kitchenware and furniture business, an estate agency, the usual charity shops, a couple of pubs/bars, the odd local country clothing/fashion store, some gift/trinket shops. There is also Barter Books, which is a story in itself. A clone town it ain’t.
Is that a good or a bad thing, though?
Well, there’s been an ongoing debate about the loss of independent retailers and the dominance of national chains serving up the same flavour wherever you go. Indeed, a government-ordered review into this very subject is currently being carried out by Mary Portas, the former Harvey Nichols branding director who found fame as TV’s Mary Queen of Shops, advising independent retailers.
She’d find plenty to occupy herself in Alnwick. Some of the independents were excellent (notably the butcher, which does a damn fine pie). Some weren’t and they clearly lacked either turnover or imagination (or both).
What that translated into was that there was no compelling reason to go to Alnwick and shop for the sake of a browse and a casual purchase. The independents did not serve up the range or the consumer experience that national chains do.
I’m guessing that the national chains will tell you that the demographic data of a community as sparse as rural Northumberland simply doesn’t stack up for them. They’d ask you to hop in the car and drive down to Newcastle or hop on the train up to Edinburgh if you want the full-on shopping show.
Was my experience that of city people tragically hooked on shopping not knowing what to do? No – it was a story about the way the economy works. Major retailers need big catchments with a good wodge of money within a short drive. If it isn’t there they won’t come.
The independents who do set up shop would need to be very savvy to make good money – especially in a town like Alnwick, where tourism makes demand seasonal.
Yet they clearly survive, and there were few empty shop units that I could find.
Could the debate about independent shops learn something from a place like Alnwick? May be – but I’m not sure it’s an entirely optimistic message.
None of the independents were what I’d call indulgence shops. They were in the main places where you go because you need something. The only independent which you could really call a magnet – Barter Books, the book swap-shop housed in an old railway station – is unique, almost a national institution.
Alnwick’s independents survive because there is little competition. They are small-scale enterprises which didn’t look like they made a lot of money and they benefit from being in the only sizeable centre for miles around.
Tellingly, I suspect that the one Sainsbury store on the edge of the town employs more people than a dozen of the independents in the centre.
This isn’t an argument in favour of big retail – national chains are one-size-fits-all operations who have questions to answer about their treatment of supply chains and their regular failure to invest in great service.
But their absence doesn’t guarantee an alternative high street full of brilliantly run or endearingly quirky independents with a distinctive regional flavour. Some of the shops I saw were either utilitarian or just off the pace.
Good retailing is a mix of good products and great service coming together to provide value, and that doesn’t have to be the preserve of big national chains. But it would take a clever, committed and resourceful independent to meet those criteria.
Are they out there? I'm not sure. And the irony underneath this article is that it was drafted while sitting in Alnwick's newest retail arrival - Costa Coffee...