Thursday 19 November 2009
According to today’s Financial Times, Mothercare’s high street presence is to be reduced.
Mothercare is to focus on larger out-of-town outlets and to “shy away” from the less-profitable high street.
Oh dear, more woe for town and shopping centres stakeholders, if any was ever needed.
What will happen when Marks & Spencer announce their rationalisation programme and pull out of town and shopping centres? What if your asset is in one of these towns? What if you are a retailer trading in one of these locations? How will this affect the value of your asset?
Call me bearish, but this is only the beginning of a painful spell for the second-tier towns and cities that don’t fit the super-size strategy now being employed by the major retailers.
So what’s the answer?
Feel free to comment.
Mike.
Shopping centres are facing the imperative for change: the challenge of adapting to compete with out of town and on-line.
An improvement in the customer’s experience followed by rigorous management of performance is the only solution.
Feel free to comment.
Mike.
Sunday 1 November 2009
As the man-in-the-street with bills to pay, you know how things have changed – you know that you aren’t spending the same as you did this time last year, and that your views on what things you should spend it on are changing too.
You know that you aren’t alone in thinking that something big is happening to consumer-ism, as we know it. You kind of sense that a huge change is taking place and that things may never be the same again. And you know that if the majority of consumers are feeling this way, our industry could really suffer unless something gives somewhere.
Well it will pass, but only after we understand the nature of the changes that are taking place.
Here are a few of the more important things we can say goodbye to…
1. The spend-happy customer
2. Complex management structures
3. Landlord’s dominating power
4. Poor quality retail offer
5. A poor quality experience
6. Undiscerning shoppers
7. Expensive Refurbs
8. A failure to embrace on-line
If you are involved in the shopping centre industry, can you honestly say you know (hand on heart) what the customer expects (as an experience) when she visits your shopping centre? Do let me know if you’ve just answered yes.
The Bottom Line: The on-line and out-of-town channels are raising the customer experience bar.
Mike.