Don’t believe the online hype as boohoo and Asos buy high street stalwarts
There was much excitement among the e-commerce brigade at the start of this week as boohoo bought the Debenhams brand and website for £55 million and announced it would take it online only.
Shunning the firm’s 118 stores will lead to the loss of around 12,000 jobs.
boohoo “intends to rebuild and relaunch the Debenhams platform, helping... to lead the fashion e-commerce market, and grow into new categories including beauty, sport and homeware.”
There was no mention of Debenhams' current online spend and how much of it is driven by in-store browsing, or by brand familiarity based around the store estate. But that's for another article…
Fellow fast fashion pureplay, Asos, is, meanwhile, in talks to buy the Topshop, Topman and Miss Selfridge brands – also with plans to take them online only
Over the past couple of days, RTIH has been bombarded with offers of comment from various e-commerce players.
And, with a couple of exceptions, they have all been pushing the following message: this is yet more proof of the shift towards online shopping.
The coronavirus pandemic is accelerating a Darwinian movement in retail. The high street is done for. Yada yada yada…
But let’s take a step back for a moment, regain our senses and remember that the percentage of UK retail sales that are online currently stands at around 26%.
Let’s also factor in that, when we finally conquer the coronavirus and everything opens up again, people will flock back to high streets, shopping centres and retail parks.
Also of interest: Asda wins RTIH bricks and mortar innovation award
Don’t take our word for it. Check out this recent comment by Sam Perkins, Retail MD at The Very Group, which operates Very.co.uk.
“While many of the trends we saw over Christmas have endured into January, we slowly expect normal service to resume as the vaccine roll-out begins to take effect and Covid-19 measures start to lift,” he said.
“We believe there will be pent-up demand among customers, who will be keen to resume normal life, go out and go on holiday, which in turn will see a gradual return to more normal online buying patterns.”
“This will benefit non-food retailers and we think fashion, in particular, will be resurgent.”
This is not to underestimate the acceleration of e-commerce across all demographics.
All physical retailers need to have a solid digital strategy or they won’t survive. Well, all except Primark, but they’ve always marched to the beat of their own drum.
Ultimately, though, the customer is the channel. Too often last year, the conversation was focused on e-tailers thriving whilst their high street rivals dwindled and died.
When in fact during 2020, online became offline and offline became online. And there will be a further blurring of channels this year, with retailers, both physical and digital, ramping up their omnichannel offerings, mindful of the fact that the one constant is change.
Human beings naturally desire physical experiences
Going back to the boohoo and Asos acquisitions, far from being the beginning of the end, these could actually benefit the high street, Daniel Whytock, CEO at DownYourHighStreet.com, reckons.
Independent shops will have the opportunity to prosper as consumers look for alternatives to the household names that have been acquired and taken online, he argues.
“I predict that within five years we will see high streets offering a more unique experience,” Whytock says. “Independent retailers will thrive as they are small enough to adapt quickly to changes.
“And with these large brands leaving the high street, smaller retailer will be the ones offering consumers a place to shop in person – where they can talk to someone, feel and see the goods they want to purchase, and know that returns can be processed quickly and easily if needed.”
He adds: “Also, shopping is, for many, a social activity. So once the restrictions are lifted many people will be looking for that in-person experience to complement their online shopping.”
The way consumers interact and engage with physical stores will change significantly in a post-Covid 19 world. Check out, for instance, Situ Live, a new experiential retail concept, which will launch at Westfield London during the spring.
It will feature live theatrics and storytelling performances across six curated arenas: ‘Fitness & Wellbeing’, ‘Connected Home’, ‘Nutrition Kitchen’, ‘Entertainment’, ‘Home & Mobile Working’ and ‘On The Move’.
The aim is to allow consumers to connect with brands, with an emphasis on personalisation, picking products suited to their lifestyle, complemented by advice from Situ Live’s team.
Retailers have always adapted to challenging times and 2021 will be no exception. At the same time, however, there is one constant.
As Whytock puts it: “Even with the rise of e-commerce, consumers wanting their shopping the very next day and at the best price, let’s not forget that human beings naturally desire physical experiences and the retailers that offer the best experience will prosper on the high street in years to come.”
Amen to that.
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