Bricks and mortar showrooms: adding value to the High Street
Despite the ongoing popularity of online shopping, KBB retailers are fighting back with something the internet can never offer – product knowledge, customer service, and dedicated after-sales service. Andrew Vaux reports
There’s no doubt that it’s tough times for retailers trying to run their businesses on the UK’s High Streets.
The last few years have brought forced Covid closures, a cost-of-living crisis, and increased competition from online retailers.
And when you consider the advantages that online shopping offers, it’s hardly surprising that business is booming for companies that conduct their sales via digital channels:
- You can make purchases wherever you are, at any time of day;
- You don’t have to battle your way through crowds of shoppers;
- You don’t have to worry about transport or parking costs;
- You don’t have to go out in extreme weather conditions;
- There are more products to choose from;
- No risk of disappointment from goods not being in stock;
- Your goods can be delivered to your door;
- You can often get goods for less;
- You can read online product reviews;
- You can perform price comparisons with other shops without walking an inch;
- If you spot someone talking about a product (on social media, for example), you can buy it straightaway.
It’s clear therefore that bricks and mortar shops will really have to offer something unique if they’re to keep pulling in the sales.
Jon Munnery, an insolvency and company restructuring expert at UK Liquidators, part of the Begbies Traynor Group, recognises the challenges retailers are facing.
He says: “The retail landscape is ever-changing and 2024 looks to see no end to the challenges faced by the high street as retailers tackle the prospect of tempting customers into their stores at a time when consumer confidence is low and discretionary spending power is squeezed.
“The shift from in-store to online is nothing new – neither is the shift from the high street to out of town retail parks. It’s clear that the way we shop has been in transition for many years. However, the bad news for the high street is that what these changes have in common is that they’ve been consistently taking footfall away from our town and city centres.”
Munnery adds: “The high street is vital for those unable to access out-of-town retail parks and those without the means – or desire – to conduct every retail transaction online. If we want to future-proof our high streets, this will require us to change how we view them, and what we expect our town and city centres to offer.”
Experience
So, what are KBB retailers doing to respond to these ongoing challenges?
James Roberts, director at Leeds-based Sanctuary Bathrooms, accepts the attraction of the internet: “The internet will always impact showrooms because of the convenience factor,” he says. “Many of the customers we speak to are simply short of time to be able to get to their local showroom.”
But despite this, he’s quick to point out what can be done.
“The way to combat it is to try and make it more of an experience,” he explains. “From our perspective, this is about creating realistic displays that customers can identify with and highlight many of the problems they face when shopping for bathrooms, and not just lifeless displays.
“Customers also want to be given a reason to visit and that includes offering personalised and tailored experiences with clear research and not just pushing what’s best for the retailer.
“Also, offering knowledge and support on-hand throughout all stages from research to fitting, plus a chance to see the latest products for themselves.
“You must invest in the showroom and make it memorable to incentivise people to step away from that convenience, spread word of mouth, and see that in-person is just as good or even better than the internet, as useful as it is.”
So, what about the argument that cost-conscious customers can secure great deals and bargains by searching on the internet?
Justine Bullock, co-creator and designer at award-winning luxury bathroom retailer The Tap End in Pontyclun, Wales, believes in the quality and price point of her products.
She says: “We’ve got a starting price which we tell clients on first contact, and if a prospective client focuses too much on cost early on, we make it very clear that we’re not comparable with the internet.
“This open and honest approach really filters out clients who are looking for a bargain, which we know we can’t offer. We find that for each client who’s looking for a budget solution (that would be best suited to online shopping) there are an equal number of clients who want a design, service, support and something better quality than what they could find online themselves.”
“We very rarely get a client say that they compared our quote to online and found it cheaper – our quotes don’t include codes, colours or names of things, so it would be a bit of a mission for them to achieve a true like-for-like cost comparison.
“If it does happen, we’d rather lose the sale than compete as we don’t want to be known for discounting and competing in this way. You attract what you do, and we’re very committed to attracting clients who value the whole service.”
Statistically speaking
A recent survey by Micro Biz Mag – a media title for small businesses in the UK – reveals the ongoing popularity of online shopping.
89% of all people interviewed made an online purchase in the last year;
91% of those aged 25 to 34 made an online purchase in the last year;
11% of all interviewees hadn’t made a single online purchase in the last year.
A changed world
Now in its fourth decade of trading, RFK kitchens is a leading, full-service kitchen specialist in Warwickshire. The company’s CEO, Trevor Scott, recognises the decline of the high street over the years.
Scott says: “Back in the day, we all had a Grattans or a Freemans catalogue on the coffee table and many of us bought clothes, electronics, and household items on ‘The Drip’ via these outlets.
“This didn’t really affect the High Street as going down the shops on a Saturday was an experience to be shared with friends and family and often involved a coffee and a bite to eat. Having recently been to a large shopping mall I didn’t really notice anything much had changed, but go down any normal High Street and well, it’s simply depressing!
“But even edge-of-town retail parks are struggling, with plenty of parking places most of the week and many of the weekenders looking for bargains in between stops for a skinny latte and a toastie. And why is this? Online shopping.
He adds: “Here in the UK, as a very computer and smart device savvy nation, we’ve embraced online like no other European nation. The USA now ranks 2nd behind China for online purchasing but the UK sits firmly in 3rd place with a global (not UK only!) 14.5% share of the e-commerce market, which is a staggering statistic!
“The UK alone online now represents 27% of all retail sales, but even more incredible is that over 89% of those sales are made by businesses who have no physical high street presence.”
But despite this doom and gloom, Scott believes there’s nevertheless a bright future for service-based retailers as shoppers recognise the added value they provide which can’t be found online.
Scott comments: “It’s been a perfect storm and now the lid is well and truly off Pandoras Box it can never be put back on, so we all have to learn to deal with it or find a new way to earn a living.
“Service-based retailers still, thank goodness, have a place in the bricks and mortar environment, so the likes of KBB retailers have a fighting chance of not just surviving, but thriving.
“Our customers still want and indeed need to touch and feel the products before purchase. They need to make up real-time mood boards using actual product samples to select their ideal colourways.
“They want to see ovens, hobs and other products in action and learn of the features and benefits that best meet their needs and budgets.”
He adds: “But most of all they want to be guided through the whole process by an expert in their field – a KBB specialist.
“Someone who’s worked and been professionally trained within this industry who can come across to clients as confident and knowledgeable who in turn gives their customers the confidence to place their order with them.
“Someone who’ll follow through post-sale and ensure the project is fulfilled exactly if not beyond expectation. They’re not buying a pair of trainers for £100 – they’re purchasing and making a lifestyle decision that’s going to cost them many, many thousands of pounds and this can’t be achieved with any degree of certainty online-only.”
Scott concludes: “The main takeaway here is that as a KBB specialist you must sell all those things that can’t be bought online – that includes service, product knowledge, design expertise, state-of-the-art showrooms, not to mention project management and after-sales support as well.”