Last month, eBay hosted a sold-out event in central London attended by retail industry influencers, analysts and members of the public. Entitled “The high street is dead! Long live the high street”, the evening saw a lively panel debate exploring how the UK high street is evolving in response to a confluence of factors: political, economic and technological.
Moderated by the Guardian’s technology editor Jemima Kiss, the panel included: Simon Mottram, founder and chief executive of renowned cycling and sportswear brand Rapha; Bill Grimsey, former chief executive of Wickes and Iceland, and author of The Grimsey Review into the high street; Ben Hammersley, respected technology commentator and former deputy editor of Wired; and Paul Todd, senior vice president of eBay marketplaces for Europe.
Packed into 90 minutes of discussion and Q&A, the overwhelming consensus from the evening was that the UK high street must change, but also that the opportunity afforded by new technologies to deliver innovation, growth and an improved experience is immense.
This sentiment was best characterised by Grimsey, who reminded the audience that “technology is going to impact us in a great way, but shops need to adapt … it’s a huge and exciting opportunity. But stop thinking about the butcher, the baker, the candlestick-maker, because that era is gone.”
Opening the debate, eBay’s Paul Todd highlighted the fundamental anthropological need for shopping. Regardless of the challenges faced by retailers today, physical shopping is not going away, he said. Commerce has evolved over time and will continue to do so, but now technology is driving this evolution.
As for e-commerce, Todd added: “This is a complimentary factor. It is not about online or offline. Online sales account for just 20% of retail sales – some analysts put it even lower.” Rather, he argued, the urban ecosystem is complex with successful retail centres mixing shopping with entertainment, convenient transport, smart planning and, increasingly, a connected infrastructure.
Mottram built upon this argument, reflecting upon his personal insights in building the Rapha cycling brand and its physical Cycle Club stores. Establishing a key theme of the evening, he talked about the essential need to develop shopper experience as an integral part of the retail offer: “It isn’t just about getting and selling more stuff … customers want experience, not products. If you can deliver greater experience, then you’ll get more value. Human interaction and community are all part of that.”
Taking this further, Mottram argued for physical retail as a crucial pillar: “Shopping has got to be as immersive and engaging and rich as possible – and I don’t think all of that can be done online”.
So what of the solutions and emerging themes across the evening to aid and revitalise the high street? 3D printing, augmented reality, virtual dressing rooms and same day delivery all featured. However, one prominent theme was also the comprehensive need for government and community commitment in enabling seamless connectivity. 4G, high-speed internet and in-store mobile experience were all mentioned as necessary in achieving a state of frictionless commerce.
Rob Skinner of PayPal, speaking from the floor, highlighted payment as an area where the technology is ready, but the seamless infrastructure as the critical catalyst is not consistent. “It’s not necessarily about technology; [shoppers] will use it when it is there,” he said. “It’s about functional connectivity and making things actually work that is important”.
The role of e-commerce as a driving force for entrepreneurialism and the assistance of innovative brands in achieving an omni-channel footprint – the practice of linking physical and online channels – was also hotly discussed. It was acknowledged that there is a need to create the right technology environment so entrepreneurs and SMEs can functionally bridge their offline and physical presence with a connected and mobil- driven shopping experience.
Todd asserted that a company like eBay can help deliver this, not only as a key technology partner, but also in helping businesses sell overseas. Building on this, he said: “At the click of the button, businesses large and small can sell cross-borders. There is a large market out there for our retailers outside of the UK and achieving this potential will help unlock the growth that will solve a lot of the problems faced by retailers today.”
A video recording of the event can be viewed via the Intelligence Squared YouTube channel here
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Paul Todd is the leader of eBay marketplaces in Europe
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