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Britain's high streets should be fighting back

Britain’s high street businesses are entrenched in a period of crisis - but many could be doing more to tackle it.

A study carried out by the Centre for Retail Research reported that 62,000 shops will fold in the next five years, a figure which represents more than one in five existing retail outlets.

The independent retail analysis group estimates that the closing of this many businesses will mean unemployment for as many as 316,000 workers. Added to this perfect storm for Britain’s high street are the projected figures for online shopping over the next few years; by 2018 it has been predicted that online sales will account for 22 per cent of sales, up from the current rate of 12.7 per cent.

My opinion? Retailers should view these shocking statistics as a wake up call, heralding a return to staff training basics. High street shops have been losing out for years to the out-of-town retail parks. This is obviously partly because of the convenience of the all-in-one-place aspect, but it is also the case that many high street shops are not doing enough to help themselves.

There should be a renewed drive on staff training, with a focus on building lasting relationships with customers, which in turn will lead to brand loyalty and therefore a healthier bottom line. From the smallest family business to international banks, clothes chains and mobile phone companies, the time to hone employees’ interpersonal skills is now.

Online companies such as Amazon have quickly gained massive popularity and put various local book and record shops out of business, but they can never provide the personal service of a local shop.

Professor Joshua Barnfield, in his recently published report, Retail Futures 2018, predicts that the first high street closures will be pharmacies and health and beauty stockists, then shops selling books, cards, stationery, gifts, DIY and music.

In an interview with the Daily Mail, Professor Barnfield stated, “The total number of UK retail stores will fall by 22 per cent over the next five years from 281,930 to 220,000 in 2018.

“If no action is taken, store vacancy rates could almost double to 24 per cent. Already this year, 16 major retailers have gone into administration operating 1,985 shops and employing 14,719 staff.

“By the end of 2018, research predicts that a further 164 companies will go bust, taking 22,600 stores and 140,000 employees with them.”

Compounding the crisis, Planning Minister Nick Boles believes that the demise of the high street should be embraced and that empty retail units should be transformed into affordable housing. Among Mr. Boles’s suggestions are the relaxation of planning laws that will permit shops to be reclassified as private dwellings and a shortening of commercial streets.

But I am just not convinced that it’s closing time for Britain’s businesses just yet.

The point is that people still appreciate the kind of relationship and/or experience that the high street shop can provide. However, it is absolutely vital that these businesses ensure that their staff members have been meticulously trained. They should be armed with all the skills they need to build strong relationships with customers.

The truth is that, while out-of-town complexes undoubtedly win on price, they cannot provide the more social, more leisurely shopping experience that the high street can deliver. The high street firms should capitalise on these strengths further by developing sales and service techniques that make the customer feel valued.

This was posted in Bdaily's Members' News section by Doug Tucker .