UK Retail in 2020
There has never been a year for retail like 2020 for many reasons, businesses closing, people losing their jobs and the way we all shop changing. So what does UK Retail in 2020 look like?
At the beginning of 2020, the High Street was already struggling, footfall was down, over the previous 12-18 months our shopping habits had changed, we wanted items quickly and easily. Big companies had suffered, right back to Woolworths, BHS and Blockbusters are just some of the stores closed in recent years, have a look at this list of shops that have gone, how many do you remember?
UK Retail in 2020
A big improvement was needed, councils making changes to the way they charge for parking, towns looking for ways to get people back to the High Street. This all changed in March, with the National Lockdown firming in place and shops closing their doors until mid-June. Whilst these shops where closed online companies were operating, look at Amazon who went from strength to strength. For the most part, they still offered Next Day Delivery, or at most 2 days, yes there was a short while where they extended that but it didn't last long.
If you had a small business that operated online then you at least still you could still make money, it had its struggles but helped out. There was a panic from those that hadn't set this up and it highlighted the fact that if you own a small independent business you need to embrace online as well as your physical store.
There has been a big push for people to where possible to shop local and shop with small businesses. This is all good but also we as shoppers need to change, you can buy almost anything from Mr Amazon, two clicks of a button and it'll be with you tomorrow, they've made it too easy. The one thing they can't offer is that personal touch, there is no face behind the company, and that is what retailers need to show.
During the lockdown SSX Creative worked with several independent companies, getting them online, using social media and getting their name out there. We have the ability to be flexible, to offer things they can't, change things quickly and also using social media build up a loyal customer base.
One of the first companies we dealt with were starting from zero, they had at most 70 items listed of around 5,000, and didn't use social media and now also had a closed shop in the middle of a High Street. We set off with a plan between us, get items listed quickly, firstly we hit eBay hard with the listings, whilst in the background setting them up a Shopify store. eBay gave them a huge boost, £15k in each of the months.
Before it would have been fine to run the shop but if you don't also sell online you run the risk of losing a massive opportunity to grab new customers.
One of the other companies we work with had already built up a very loyal Facebook page and also a great Facebook group which started in April and now has over 3,000 members. Over lockdown, we offered the group special offers and exclusive deals and we were rewarded over the months to around 100 orders. All very valuable to help keep the business moving during the most difficult time.
The Views from a Retailer in 2020
To get a real insight I wanted to get the views of someone who has their own business, Paul Bone owns Quadrophenia Alley in Brighton. Previously he has also run a successful menswear shop for over 20 years in Sussex.
I think that 2020 has been the most challenging year in retail since WW2. Aside from the obvious challenges with the way people shop i.e. social distancing, masks etc. the fact that we were instructed to close for 4 months, was the most devastating. Business was difficult beforehand with the uncertainty over Brexit and the cross over to internet shopping, some businesses who weren't necessarily cash-rich, relied on their turnover, that came to a sudden halt.
Some people will believe that the government didn't do enough for retail businesses, I think they did, they were in a no-win situation, they were damned if they did and damned if they didn’t. The furlough scheme, no rates to pay for 12 months and the government loan facility all helped soften the blow.
For our business, the most calamitous thing for us was the fact that we missed all the great weather during lockdown period along with the bulk of the year's bank holiday weekends, that we rely on so heavily. Despite all this, in my opinion, all that the pandemic has done is moved retail forwards 10 years, shopping habits were changing, the high street needed to adapt, businesses need to adapt, councils need become more retailer friendly and landlords need to adapt. This was all going to happen anyway.
From our perspective, once we reopened at the end of June we benefitted from the fact that everyone took their holiday in the UK and business was good, only to have the rug pulled out from under our feet in November.
Paul Bone
Changing Independent Retail
How do you get people back to the High Street? Confidence needs to come back, to know that your shop is safe, that you have safety measures in place. As a business there is only so much you can do, things you've been doing for years, now mix in social media and your website and it'll give you a better chance. In 2020 over 30% of retail sales will have been completed online, this is up 34.7% on 2019.
As retailers it will come down to building on the loyal customers you have, and gaining valuable new customers. There is a big push to support small independent businesses from Google and AMEX, use the resources that they provide, Google Reviews, Small Business Saturday and also local Facebook groups. Traditional mail drops aren't going to work and are expensive, same applies to print adverts, you could spend that budget to Facebook adverts and get a much better return.
Getting a customer in store is the hard part, offer them something, and use the unique selling points. Do you have free parking? A special offer? What about a loyalty card? Customers what to feel special, spend over £x and get a free gift, once you have them in store try to gather extra info, can you send them something on their birthday?
The start of 2021 is going to carry on being difficult especially as it looks like Lockdown 3 will be arriving in January. Embrace online, and don't dismiss it.
