In recent weeks, household brands like New Look, Paperchase and Superdrug have announced closures, whether on specific high streets or altogether. This has been an ongoing trend due to financial problems caused by the Covid-19 pandemic, the cost of living crisis and the upcoming recession.
This will have several long-standing consequences for the high street as we know it, some of which may actually be beneficial for smaller businesses. UK Shopfront has resultantly done a deep dive into these changes, allowing retailers to prepare and adapt.
Increased Competition
Larger retailers tend to attract a higher amount of customers due to their reputation as an established brands. As a result, smaller businesses will now have to try harder to attract these customers to their own sites, whether by introducing creative new marketing tactics, such as attractive shop fronts or by offering sales and discounts.
With every retailer trying as hard as possible to capitalise upon this opportunity for business, retailers and brands should consider investment into innovation, customer service and new technologies to succeed.
Deceased Footfall
Major retailers are only closing on some high streets, namely the ones that they have performed poorly. This subsequently leads to a reduction in convenience for consumers, meaning they are likely to perceive the high street in a negative way and be less willing to visit.
As a result, footfall is likely to be redirected to busier streets, meaning the original street could be impacted by less traffic. However, this could lead to new opportunities for other businesses to fill vacant spaces, which may have the opposite effect.
Shifting Consumer Needs
With many retailers relocating to online sites only, there will be an inevitable change in shopping habits. Whether customers only purchase specific items online or some items become only available on the high street, this could have a drastic impact on what businesses retail.
This could benefit smaller shops, which will be able to profit from higher prices and an increase in customs.
Higher Costs
As major retailers benefit from wholesale prices or economies of scale, they are able to purchase a greater number of products for a reduced price. As small businesses cannot afford these bulk costs, the high street will likely witness higher costs for retailers and consumers.
Due to the cost of living crisis and the incoming recession, there may also be price hikes due to the rising cost of logistics, taxes, rent and bills, which may be passed to the customer. Small businesses in more affluent areas may resultantly benefit from this increased income, but poorer areas may struggle.
Emphasises Sustainability
During times of economic crisis, people feel an increased need to support their local shops and neighbours. This is especially relevant when larger retailers close, as this sparks a shift toward locally sourced and produced items, boosting the community.
There is also a reduced impact on the environment, as large retailers often ship products from overseas or across the country, with large supply chains. These are detrimental to the environment, meaning the high street loss is the environment’s gain.
UK Shopfront is a leading retailer and installer of shopfronts, shutters signs and much more based in London.
Marina Vassilopoulos writes for UK Shopfront
