Global and British Retail Trends and their Impacts on Town

Centres

Steve Gilman OBE

My Career• 75-76 Bank Clerk, Police Cadet, Barman• 76-80 MFI Trainee, Asst, Store, Area Mgr• 80-83 Dodge City –B&Q Store Mgr• 83-84 Brown Bear Store Mgr• 84-96 B&Q Store, District, Regional Mgr• 96-98 B&Q Director of Operations UK• 98-00 B&Q Director of International Dev• 00-05 B&Q International Director• 05-08 CEO B&Q Asia/Kingfisher Management

Board Member

200120022

00

0

20032004

20052006

20072008

20092010

Google AdWords Pay Per

Click system starts

Dotcom Bust

The world does NOT

collapse due to

Y2K bugs

PayPal is acquired by eBay

launches

blazes a trail by launching a mobile

commerce site

Credit card companies create PCI DSS: Payment Card Industry Data Security Standard

Blizzard Entertainment

launches World of Warcraft, a MMORPG

starts social news service

Google acquires YouTube

Western Union sends final telegraph

message, which heralds the demise

of the Telegraph machine

Twitter starts enabling

microblogging with SMS tweets

Amazon launches TextBuyIt to enable

SMS product searches, price

checks and purchasesMagento open

source eCommerce release by Varien

Google introduces Android, the mobile operating system

Groupon offers deal-of-the-day group

buying

bought by Oracle

Internet retailers focus on extending

social shopping inside social

networks, especially Facebook

iPad launches

Amazon reports its first profitable year

Mark Zuckerberg starts FaceMash at

Harvard which becomes Facebook

Apple launches iTunes store

launches

First Internet Retailer Conference and

Exhibition

Google Checkout launches

launches

US Broadband Internet users reach

200 millionGoogle AdWords surpass $21 billion

Apple launches iPhone with full web

browsing and downloadable apps,

advancing ecommerce

begins developing social network

games

launches first social commerce

application in Facebook

Microsoft introduces Bing

Amazon and Overstock.com lose

New York online sales tax battle

What's changing?- The Speed of Change

iPad 2 !

the shape of change…

what’s going on now?

Downsizing

Small Formats Largest retail area in Europe

Flexible retail spaces

Etailers with retail presence

High St moving Out of Town

Out of Town moving to High St

technology now provides alternate shopping

solutions…

pick-up points

vending…24/7

any location selection

collection…

then why visit a physical store?

It’s the..

…thing!‘Shopper-

tainment!’

Environment

Human Service

Social HubsEducation

it’s all about the

social experience!

Recreating the

personal social

media experience

what makes a

great retail

experience

?

…the focus of an

Apple store isn’t

on selling but on

building

customer

relationships

with the brand!

Learning

Passion

Service

Community

Apple operates the most

successful stores in retail

history but…

A great retail experience is about creating value for customers…

Product

… and

tailored

services.

Genius Bar

Home Improvement Consultants

Beauty

I can do it …..

so where will they be?

Out of Town

High Street

Somewhere else?!

where are the ‘right’ locations?

Out of Town moving to High St

High St moving Out of Town

Retailers will increasingly have

more diverse location portfolios

Underground

what factors will shape them?

Sustainability

TechnologyDemographic

s

Local vs. Global

Customer Attitudes

CommunityGrow Your Own Areas

Retailers will focus on enabling customers to do it themselves

Customers able to

rent workshop space

for their projects

Education space where customers can learn.

Access to expert help

and advice.

Bringing the community in-store

education

demographics

Ageing Population

Rest areas

Personal Shoppers

Single locations

for product collection?

Increasingly, females

control and influence

household

spending

Stores will increasingly target female shoppers

technology

Real Time

Prices

Virtual Assistants

Free Wifi for

Mobile payment

Social networking

Multi-channel Journeys

No Checkouts

Virtual Room

Sets

sustainability

Rising energy costs…

Climate change…

Government legislation…

Consumer expectations…Business and Consumer…

KEY CONSUMER UNDERSTANDING

1) Consumers have a much wider choice where and how to buy

2) Women and Older Consumers are increasingly important

3) High Streets need to become easier to access and more “Entertaining”

4) Improved Environment in which to shop, e.g. Covered pavements etc

5) Innovative Retailers need to be encouraged into High Streets

6) Customers want Education as well as Shopping Experience

WHAT NEEDS TO BE CONSIDERED BY CENTRAL GOVERNMENT

1) “Leveling the Playing Field between E Retailers and Physical Stores

2) Retail Rate levels on High Street and Out of Town Stores

3) Valuing Town Centres contribution to the “Big Society”

4) Simplyfing Planning Permission, whilst maintaining safeguards

What Needs to be Considered by Local Government

1) Creating Partnerships between Local Authorities, Retailers and Consumers for what they want from “Their” High Street

2) Embrace Change in Retail Channels and develop Strategy yo include High Street, Out of Town and E Commerce – Free WIFI

3) Make High Streets More Accessible for Customers on Public Transport, Road initiatives and Car parking initiatives

4) Make High Streets more desirable to Shop in, Pedesrianisation and Weather Proof Verandahs etc

5) Develop High Street Plans which incorporate Sustainability for Retail Business and the Environment

6) Market Town Centres to New and Innovative Retailers

7) Develop “Event Lead” Initiatives to encourage High Street usage for All Age Groups but on different days