BHS collapses into administration
Austin Reed files notice for administration with 1,000 jobs at risk
It’s with huge regret that I read those headlines, which represent the demise of iconic high street brands that most of us grew up with. I remember excitedly unwrapping Christmas gifts bought by my aunt from BHS, which were far trendier than I was used to.
There’s endless speculation about what went wrong, but the unifying theme seems to be that traditional retailers simply lost touch with their purpose and vision, and their target shopper. They lost saliency in today’s highly competitive retail landscape.
While many of us may immediately think of Marks & Spencer for tights, Robert Dyas for household goods and H&M for accessible fashion updates, the brands that are struggling have lost their unique selling point (USP) and as such their definable role in people’s busy lives.
To stay in touch today, retailers need to signpost shoppers to their core strength so that they become the go-to destination for key shopping missions, either for immediate fulfilment (dinner tonight) or research and inspiration (decorating ideas). Successful retailers are changing the shopping experience in-store to reflect their USPs and reinforce why they exist.
Staples has announced that it will find other uses, beyond selling products, for its stores. A portion of its brick-and-mortar locations will be allocated to a mix of high-end workspaces, conference rooms and private phone rooms –bringing to life, literally, its unique promise: “to make it easy” to make more happen.
The White Company is seeing great results from its lifestyle store in Norwich, bringing all its white, grey and beige product ranges together in a total lifestyle concept along with style advisers, to offer a more personalised and inspiring shopping experience (while no doubt increasing basket spend at the same time).
Stacey Cartwright, chief executive of Harvey Nichols, is re-establishing the brand’s purpose as the department store that is “the place to be” – the club that doesn’t require a membership.
“No one had fallen out of love with us, but we’d fallen off their radar,” she explained. Probably the cleverest new initiative, which showcases its accessible exclusivity, is an online marketplace where you can buy products that aren’t part of the Harvey Nichols’ edit.
“So if you’re looking for a particular shoe, and you want the colourway we didn’t buy, you can access that,” she added. The next stage is a digital wardrobe via an app. “In this digital world, if people just want stuff they’ll go on their mobiles and buy it. So you’ve got to create entertainment”.
In addition, brands losing foothold on the high street are behind the curve in imagining their online retail business and have subsequently lost touch with younger people. Retailers who are driving growth in the UK have long had an integrated shopping experience, for example Zara, which continues to see sales surge online, with a higher spend per customer from those purchasing on its website.
A strong USP doesn’t mean retailers can’t innovate and diversify. John Lewis is still universally famous for being “never knowingly undersold” while continuing to expand the range of brands it stocks. Equally, Zara has diversified well into good value, on-trend homeware through its standalone Zara Home store.
My belief is that holding fast to a USP doesn’t signify a lack of progress. Far from it, in fact. As Doug McMillon, the chief executive of Wal-Mart Stores has said: “Retail history is very clear. Those that are unwilling or unable to change, go away”.
Sarah Todd is chief executive of Geometry Global UK
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