FSP Retail

FSP Retail Blog

The times they are a-changin’ – Threats and Opportunities

Posted At : 10 September 2009 15:14

In a period of change, the vital task is, amongst the threats and opportunities, to distinguish the important from the transitory. Is the abolition of the Needs Test really the most important issue in urban regeneration? Perhaps leadership rather than facilitation is what is needed. If performance is king, the evidence suggests that the UK already has too much retail space. Retailers generally are not over-trading. FSP research indicates that the greatest opportunities lie in remodelling and making better use of existing space, not in creating yet more.

Change is not a choice but our response is. Many of the current changes revolve around the realisation that the world is finite, it has limits. Similarly, consumer expenditure cannot expand indefinitely. In these circumstances, making best use of what is already available is an understandable response. It can be seen in climate change concerns leading to the phasing out of non-directional incandescent light bulbs. Even politicians talk about using less, with the focus on areas of public expenditure to be cut. Consumer attitudes have changed, so John Lewis has published an updated version of the wartime pamphlet, Make Do and Mend.

Retail property development is changing too. Can it really work by better satisfying existing shoppers, rather than by attracting additional new shoppers? Research by FSP demonstrates that over a calendar year, satisfied shoppers on average spend over 70% more than unhappy shoppers. In marketing, it has long been known that it is more effective to get more from existing customers than to recruit new ones. The challenge to developers is not how to increase the number of shoppers but how to create satisfied customers.

Satisfying customers is not a one-off job, it is a continuing process. This takes us back to the start – the times they are a-changin’ and it’s a permanent state.