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The Future High StreetAnthony Shapland
27th June 2019
Confidential – Colliers International 2017
Anthony Shapland, BSc (Hons), MRICS
2
• Director and Head of Development Advisory
• 37 years as advisor and principal
• Sainsbury’s and Marks and Spencer
• Government Taskforce looking at Town Centres in 2013
• Around 800 staff in 14 offices in the UK
• Global real estate brokerage company
• Multidisciplinary offer across the country
Confidential – Colliers International 2017
Colliers International - Global
Confidential – Colliers International 2017
Colliers International - Services
High Street Evolution
Confidential – Colliers International 2017
1950s – PresentThe Evolution of our High Streets
Confidential – Colliers International 2017
1950s – PresentThe Evolution of our High Streets
Confidential – Colliers International 2017
1950s – PresentThe Evolution of our High Streets
150 Years of ChangeSainsbury’s
Confidential – Colliers International 2017
Retail - 40 Years of ChangeWhat drove this situation?
Confidential – Colliers International 2017
SupermarketsRetail Change
Confidential – Colliers International 2017
Out of TownRetail Change
Confidential – Colliers International 2017
Shopping Centres Retail Change
Confidential – Colliers International 2017
Big Box RetailRetail Change
Confidential – Colliers International 2017
Car Free – High Wycombe
Confidential – Colliers International 2017
Car Free - St Austell
Confidential – Colliers International 2017
ParkingMSCP
The Internet
Confidential – Colliers International 2017
Confidential – Colliers International 2017
The Rise of the InternetRetail Change
Confidential – Colliers International 2017
Home deliveryRetail Change
Confidential – Colliers International 2017
Channel Hierarchy Retail Change
• One in every five pounds spent with UK retailers is now online. –
ONS June 2019
Confidential – Colliers International 2017
Channel Hierarchy Retail Change
Annual total retail sales, store-only sales and online-only sales
Confidential – Colliers International 2017
Channel Hierarchy Retail Change
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1950s 1960s 1970s 1980s 1990s 2000s 2010s 2020s
High Street Out of town Internet
Retail Trends
Confidential – Colliers International 2017
General Retail Trends
• Demand for shopping centres falling
• Changing consumer behaviour
• Online increasing, but differing experiences
• 20+ years of continuous shopping centre development
• Retail not as important as experience
• Pure retail centres have never existed
• Active and passive leisure becoming more important
• Decline in global brand coffee shops!
• Independent is good
• Shorter leases
Confidential – Colliers International 2017
General Retail Trends
• New way of thinking – online (clicks) want shops (bricks)
• Independents have access to global logistics
• Customer engagement, not sales performance = sticky
customers
• Data collection is vital
• Physical shops increase online sales!
• Amazon Go, launched in 2016, still only has one shop
• Augmented Reality (AR) is the next “big thing”
• Technology to augment the experience is here
• Store in Store
Confidential – Colliers International 2017
General Retail Trends
• Health & Beauty and Entertainment -11%
• Coffee shops and restaurants -3.7%
• Services -5%
• Store closures in the UK at 14 per day – over 5,000 pa
• Rental growth flat - Vacancy rate up
• Burberry profits down 36%
• Superdry +3.1% in revenue - instore declined by 2.3%
• Experience rather than retail will prevail
• Placemaking and Heritage are vital
• Long opening hours require activities and events
• Food & Drink offer is good
Confidential – Colliers International 2017
General Retail Trends
• Too many shops
• Too many goods
• Too much choice
• Too much competition
• Too much waste
• Price wars
• Total cost of occupation
• Not sustainable
Retail remains about people clustering and dwelling in the same place to
experience and enjoy their surroundings – “doing stuff and connecting”
The Future High StreetTechnology to Enhance Experience
Confidential – Colliers International 2017
Concept StoresRetail Change
Confidential – Colliers International 2017
Technology in retailRetail Change
Virtual mirrors
Connected shopping experience
Multi channel retail
Confidential – Colliers International 2017
Technology
The Future High StreetFood & Beverage
Confidential – Colliers International 2017
Evening EconomyOpportunity?
Confidential – Colliers International 2017
Altrincham ‘Foodie’ MarketManchester
Confidential – Colliers International 2017
Street food
The Future High StreetAll Doom and Gloom?
Confidential – Colliers International 2017
The Modern High Street?
Confidential – Colliers International 2017
The Modern High Street
Confidential – Colliers International 2017
Debenhams
• 166 UK Stores – “Stores too large”
• 26 weeks to March 2019 sales down 7.4%
• Underlying earnings down 36.6%
• New owners – Barclays Bank and Bank of England
• Closed in Australia - £18.3 million loss in Ireland
• Blames IT costs and leases for poor results
• Bad bricks and bad clicks
• Seeking to reduce number of stores and half the floorspace
The Future High StreetThe Right Skills
Confidential – Colliers International 2017
• Almost last, but not least – if is relevant at all levels
• Many reports, guides, economics, retailing, people
• Customer service training has always focussed on the premise that
‘the customer is always right’. Keeping a customer happy was the
best way to retain clientele. Is this enough?
• Customer service staff require the following essential skills;
✓ communication skills
✓ active listening skills
✓ problem solving skills
✓ upselling, or suggestive selling skills
✓ technical skills - product knowledge
Skills, Training and Education - 1
Confidential – Colliers International 2017
• Can a robot do the job? Recent research by Alphabeta shows that
35% of a retail sales assistant’s job is susceptible to automation
• This leaves 65% of work time of a retail sales assistant’s job that is
less susceptible to automation.
• What skills should we focus on when training in customer service?
• Customer Care skills and building trust through credibility (the
customer trusts what I say), reliability (the customer trusts me to do
what I said I’d do) and intimacy (the customer trusts me with their
needs & wants).
• Spend less time on self-orientation and more time listening to the
customer.
Skills, Training and Education - 2
Confidential – Colliers International 2017
• Consultative Selling skills – asking the right questions to determine
customer needs. Who, What, When, Where, Why, How? Allow the
customer to speak 80% of the time. If a customer talks, they are
comfortable; if they're comfortable they like you; and if they like you,
they are more likely to buy from you.
• Creating a memorable experience - remembering the customer’s
name and their last purchase. It’s not what you do, but how you do it.
A customer could shop online - however if the customer has a
good relationship with the sales assistant it is more likely they will
return for advice.
• With training and confidence, a retail worker will spend nine hours
less on physical and routine tasks like stocking shelves and nine
hours more on tasks like helping customers to find what they want
and providing them with advice.
Skills, Training and Education - 3
The Future High StreetTown Centre Opportunities
Confidential – Colliers International 2017
• Who owns our town centres?
• Who manages our town
centres?
• Point of differentiation
• Clutter / Signage / wayfinding
• Upper parts
• Total cost of occupation
• Car parking / cost
• Wi-Fi
• Spaces – hard and soft
Town Centres and Retailing
Confidential – Colliers International 2017
• Out of Town is changing
• Shopping Centres are changing
• Big Box is changing
• Leisure is changing
• Destination
Town Centres and Retailing
Confidential – Colliers International 2017
Initiatives Portas, Grimsey, Government, Universities, Private Sector
Who are the anchors?
What are the anchors?
We all have a part to play
Training and skills
Leadership
Government
The BID
“By becoming gathering points for whole communities, who also offer a great
experience facilitated by technology and incorporating health, entertainment,
education, leisure, business / office space and shops at the heart of a thriving
community hub, every high street can have a positive future.”
Confidential – Colliers International 2017
• There is no simple answer – multi level issues
• Everywhere is different and unique
• There are global trends, which we must understand
• Retail is moving faster than ever before
• Government policy and planning are vital
• A mix of retail, business, entertainment, tourism and culture
Summary
“Ghost Town to Boom Town”
Thank you