Town centres and retail

Blog Andy Drake – Managing Consultant

It was estimated that 11,000 high street shops closed in 2020 in Britain and a further 18,000 forecast in 2021. It’s an extraordinary rate of change, many contributing factors and again a consensus that the pandemic has accelerated a strong and inevitable shift to online. In reality, the story is more complex across retail sectors. Nonetheless, it leaves local authorities having to fundamentally rethink the future ‘now’, knowing that space is essentially oversupplied (both too many stores and too many big stores) in its current usage. So, at a macro level, the challenge will be about what will attract people back to town centres: with the likely imaginative use of space in a hybrid of retail, living and entertainment. So, attention and stand out will be important here too.

‘why should I visit?’

At the next level of thinking, retailers will have to think long and hard about how redesigning space ensures a balance between enticing consumers, but still creates a safe space. That in turn means retailers need to have great products and an attractive environment and experience, and so building mental availability as a retailer will become even more important: ‘Why should I visit?’

For the brands supplying retailers, particularly in FMCG, the likelihood is that first impressions will become significantly more important. Retailers in many sectors will have to ensure that shoppers have a feeling of safe space. Restoring retailer profitability will be essential given the events of the last year, and so it is likely that impacts for some will be simplifying the supply chain and rationalising ranges (ASDA recently announced a 40% reduction in SKU’s). If you then overlay shoppers’ likely reticence to spend too much time in stores, standing out at the point of sale takes on added significance. For brands, the importance of distinctive assets, building both mental and physical availability become crucial. Linking brands in people’s memory structures in the steps before entering stores and ensuring visual stand out at the shelf will determine category winners and losers. Fully understanding consumers, understanding and building your true brand distinction and ability to succinctly communicate and convey that will determine success.

Many brands and retailers have already been on a hugely steep learning curve, that in many instances have been about survival. We believe that throughout the consumer journey, attention becomes even more important and within that first impressions a prerequisite. The real opportunity for brand growth awaits those that can deliver.

This blog is part of a series on First Impressions.
Read the previous blogs here.