Can young people save the high street?

If you've got a smart phone you'll no doubt have pulled it out at some point when shopping at a large shopping centre, retail outlet or high street. Aside from the quick WhatsApp, Facebook check or a post of "the lunch to die for" on Instagram, theres other times when shopping we likely reach for our small box of internet goodness.

Most of us at some point have used our phones when out shopping to check the price of a product in other outlets, possibly online, or even 2nd hand on auction sites whilst stood right in front of the product we *might* buy.

OK hands up - I've done it - for TVs, shoes, trainers, music and even furniture.

But. Whilst we're all reading news of the decline of the high street, death to many big department stores, with Sports Direct Group buying most of them going under, there is actually a good thing happening here. There's an upward climb in micro footfall, and its driven by young people, mobile search traffic and the desire (need?) for product urgency. (What I mean by 'micro footfall' is a specific segment of footfall in the wider data set - a climb might not necessarily been seen overall).

Product Need

According to a Google/Ipsos report “Shopping Tracker,” - an online survey report in the summer, 61% of shoppers would rather shop with brands that also have a physical store opposed to brands that are only online. This is often driven by the immediacy of need.

Nearly 80% of shoppers will go to the store to buy when they have an item they need or want immediately. I myself would easily be one of these. I rush around a lot - and am often in need of something that most likely, I forgot to bring with me (!) so having the ability to use my phone for a click and collect or a stock check to then go and buy is of great use for me.

Next Day Delivery

Speaking to someone over a lunch recently, he tells me of his disbelief that when his wife realised on Sunday afternoon that she had forgotten something for school the next day. She ordered a next day Amazon delivery, and had the product in her hands by 7.30am on the Monday. Not all retailers of course have that luxury of logistics at their disposal, but goes to show that whilst stores are closed on Sunday afternoons and before they open on Monday a customer can order, pay and receive their product.

Now, the reality is, next day delivery sometimes counteracts some of the physical store experiences, and this is still not a tangible experience until you've parted with your money and the delivery is received. It also has a degree of risk for those shopping out of urgency of 'will it actually turn up on time'?

But, can young people be the saviour of the high street?

Interestingly whilst the 61% of shoppers above was from an adult survey of over 2000 18+ shoppers, the 80% statistic is from the same report by Google/Ipsos in the U.S. but this data is drawn from studying shopping habits of consumers aged 13+ and studied over 3600 consumers across this age range.

Additionally, in a recent poll from YouGov and Colliers International, it was found that over 75% of 18-24 year olds find shopping in their closest town or city centre appealing, compared to just 54% of people over 55. Naturally this could be skewed by where exactly the responding audience lived, but trusting that YouGov had an appropriate spread this is positive news and interesting in what often is seen as a demographic who are disinterested, not targeted by town centres and perhaps looked at as a demographic with less money to spend.

img. source - https://www.telegraph.co.uk/business/2018/06/28/rise-discerning-young-shoppers-throws-lifeline-high-street/

In the same Colliers/YouGov Poll young people were asked "what are the advantages of online retailers opening physical stores". The resounding majority of over 60% stated that the ability to physically see and try products prior to purchasing was most important.

These snippets of insight do show that there are a variety of younger audiences genuinely keen and interested in being in and around their town centres, to shop, experience life, culture and of course grab a coffee. It suggests that whilst ASOS and online retailing can be at their fingertips with easy return options, that actually physical store experiences are still of significant interest in younger shoppers.

Digital drives shopping. Fact.

More than three quarters of consumers (thats over 75% for those as good at math as me) across Europe start their shopping journey digitally. This could be research, or inspiration through Pintrest or other means as well as more tangible product browsing. This isn't just physical product or clothing - this extends to over half (56%) searching for grocery options online! (data source - study by UM agency engaging 50,000 adults).

If you look at places like fashion retailer Missguided, who until recently have been an online-only store and have started to open physical shops. The beauty of what they have done is that they have listened to their customers needs *digitally* and what has been working for them there, and replicated that brand experience in store. Naturally, customers expect the same brand and overall experience online and in-store, so their highly "instagrammable" stores are a roaring success, as well as gathering new loyal customers.

When brands don't wake up

We all know that digital influences so many walks of life now - thats not a revelation. What is interesting though is how so many retail brands and physical stores are not embracing the changing demographic, landscape and digital advances; leading to failing stores and for some, crumbling businesses.

Just this month we've seen Evans Cycles get bought out just before administration, Debenhams are in crisis, and earlier in the year among others, Toys R Us and House of Fraser disappeared. When you look under the skin its no surprise at all.

House of Fraser clearly didn't appeal any longer to almost any audience, let alone Gen Z. Richard Danks, brand director, Portas Agency when talking about House of Fraser puts it like this:

"Having gobbled up the nation’s independent department stores and filled them with concession after concession - a perfect model for the brand-hungry flashiness of the nineties and noughties - today, they’re left with soulless shells where you dawdle from one brand’s ‘mat’ to another with no sense of hubbub, heart and soul, or differentiation,”

This quote above for me, almost epitomises the current high street scenario in most areas of the UK.

Down to Margate

Lets look at Margate in Kent. The main high street had the life sucked out of it from the Westwood Cross retail park development a couple of miles down the road back in the early 2000s. Now almost a town in its own right, its continued to be the go to place for retail in the area. Yet its boring, characterless retail park appearance with big brands and large car park numerous coffee shops and the cinema do nothing for community, vibrancy and retail experiences. Margate High Street has fizzled out with boarded up shops and minimum footfall.

However, with the launch of the Turner Contemporary in 2011 being a significant positive catalyst for cultural and economic change in Margate, the past few years has seen the old town completely revitalised, new startups appear, new life breathed into a number of repurposed retail units and a variety of activity to continue its growth into a seaside destination for much more than just a seaside holiday.

Whats that got to do with retail? Well, everything. Retail 'places' have to become better at bringing life to their customers. People want more from a retail destination. They want more from a shopping experience. And at the smallest level, but perhaps the most vital, they want more from the physical stores themselves.

Building Frictionless Experiences

I used to be a youth worker, and ran projects in schools. If you don't say what you mean and are hard to understand, young people completely get the better of you. When it comes to retailing, physical space and brand offering, brands need to be clear, they need to be available, and they need to be offering the most slick and frictionless experiences as possible both digitally and physically. If not, consumers will go elsewhere.

The cutting reality of digital, the internet and data availability is that consumers can be so light and minimal with personal organisation as they have their smartphone. They expect brands and retailers to serve their wares up direct, understand their consumer needs and habits and provide their shopping opportunities with ease and in the most accessible way imaginable. Those that do this well, listen to their customers' ever changing needs and adapt and respond, will do well.

Retail reimagined

The beauty of the time we're in right now is that digital and consumer behaviour has never been awash with so much opportunity. Rightly or wrongly, people use their smartphones for almost everything now, and thats only likely to continue to increase.

The retail sector needs to find ways of building consistent, connected and collaborative experiences for the right audiences. Can young people be the saviours of the high street? Who knows. But they sure as need to be included in town centre strategic plans, brand communications, demographic engagements and experience building to reimagine what retail and our town centres could be like.

Here at Bakehouse, we're working with some large property companies, landlords, town centres and small retail outlets, helping them to reimagine experience using digital and technology. We'd love to listen to your ideas and see how we can help.

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