talking trade A changing landscape
The past few months have been challenging for retailers, but Andrew Goodacre, ceo of British Independent Retailers Association (Bira), believes there are positive opportunities ahead
nothing new. In reality, the more successful retailers have always adapted. We might normally associate these changes with stock ranges, product designs, investment in stores and technology within those stores. The difference this time was that non-essential stores were closed, and even the essential stores had to adapt to social distancing. In response we have seen independent retailers use their agile business model to create a different operational model, and these have continued even after the re-opening on the 15 June.
The internet was already there and known
my Cheese”. It suited me as it was short and easy to read. Whilst not perfect, this book highlighted the impact of change, the absolute need to accept changes, adapt quickly, enjoy making the change and be ready to do it all again. Change can inspire fear of the unknown and yet it can also be the catalyst for creativity, innovation, drive and new energy. When I look at what has happened to independent retail over the past few months, I am reminded of this book because the retailers’ ‘cheese’ has definitely been moved! We all knew retail was changing, and Covid-19 has taken the rate of change to a whole new level and at a pace that few were prepared for. In June, 50 per cent of non-food retail sales
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were online. Pre Covid-19 it was 20 per cent – 15 years of online growth has been achieved in three months. It’s a staggering statistic and the clearest indication yet that shopping behaviour has changed (or moved) for good. Changing in line with customer behaviour is
July/August 2020
any years ago, early in my management career, I read a business book called “Who moved
about. The same can be said for social media. Instead of looking at it from a distance, many more independents embraced it and used these tools far more effectively. As a result, many independents have sold much more online than usual, and many from a very low base. The ecommerce has been supported by really connecting with consumers through social media. During lockdown, we saw a real trend to shopping locally as customers were deterred from using public transport and did not travel in general. This is still an opportunity with recent research showing that 80 per cent of customers want to continue shopping locally. Independents have and can continue to make the most of this by using social media to tell consumers what is available locally. Many have done this with renewed energy and seen the rewards.
The shop being closed did not necessarily mean the business ground to a halt. We saw independents start deliveries and offer click and collect services for the first time. This was smart thinking with a change of mindset to move from opportunities nowhere to opportunities now here – and it was all done with social distancing in mind. Working from home has provided an unexpected opportunity for some businesses. We have seen the rise of technology for companies to hold meetings, talk to people through Zoom and Microsoft Teams. Socially we saw the rise of apps such as House Party, allowing friends to communicate. Independents have seen this technology as a sales
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opportunity. Boutique fashion stores have done fashion shows for customers via Zoom – friendly, interactive and fun. I even heard about virtual wine tasting organised by an independent wine merchant. These are great ways to stay connected with your target market and customer base. Readily available technology designed for corporate business being adapted and embraced by the entrepreneurial indie retailer, and with good results A further initiative has seen an increase in the
use of appointments for customers. An excellent way of helping shoppers overcome ‘queue fatigue’ by guaranteeing them entry at a pre agreed time, and also offering dedicated service. Particularly effective if you are selling on a more consultative basis and it is a high worth purchase, furniture shops being a good example where appointments have worked. I would say that necessity has indeed been the mother of invention and there are many examples of retailers embracing and adapting to change. A final word of caution, however. Lockdown may have finished but independents must continue developing their business model. The internet is even more powerful because as well as instant price comparison and convenience, it also offers safety and every retailer must increase its digital footprint. Furthermore, the virus has not disappeared, and we have already seen one local lockdown in Leicester and there is always the potential of a second wave. I end with a final question to the independent retailer – are you ready for a second lockdown? If not, start implementing the necessary change in your business to not only survive but flourish under such difficult circumstances.
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