Retail Battle Of Economics

I hate to be a gloom mongerer - I am naturally a positive person and I urge other people to see the cup as half full. However, when every day seems to throw up another struggling business to wash it's woes in public I fear for the recovery of an economy, which is in downturn. Recession, downturn, monetary problems - it all amounts to the same thing it isn't working - something is massively broken. I always think that if you are a business struggling to make a profit but others in your sector are thriving it's a matter of diversifying your trade or market share and moving forward. The depressing thing is that when lots of other businesses in your market share are also struggling it's time to feel worried. This morning I read news  about Bonmarche and Peacocks two high street clothing stores who approach administration due to lack of funding options and no buyer as yet in sight. They are just the top of a long list of retail stores that have crumbled under the strain of economics. Should we be worried that our high street will soon be devoid of life and those long trading companies and familiar names will disappear forever?

I know everything at the moment gets blamed on the recession and a lot of high street retail stores are suffering due to people's lack of money, but it sets me to wondering is it all to do with the recession or is that just like blaming everything on an omnipresent known cause? I look at my local Peacocks store - over the years they have changed from being a competitively priced store with a home range and middle of the road clothing for kids and adults. The metamorphic refurbishment turned this family orientated store into a shiny outlet with lots of fashion posters, sleek fittings and trendy kid’s clothes. The prices remained reasonable for a while but then prices started to hike up and these did not reflect the quality of the clothing on offer. Could it be that Peacocks moved away from their core market and tried to enrapture a customer who wanted modern fashion at lower costs but lost sight of what value for money their old ranges were?

Large out of town supermarkets are also another trigger to the high street’s demise. Many stores are open 24 hours throughout the year (even during bank holidays) offering free parking, convenient loading and even a café for supper when you’ve finished shopping. The alternative for many is to bustle into the local town centre pay a large amount of money for 3 hours parking and run the gauntlet of nonchalant retail staff and supposed special offers. So to the superstore we go and there we can pick up a pair of work trousers, have our eyes tested and buy a bit of chicken for dinner. We may also renew the car insurance and pick up a new credit card whilst waiting for our photos to be printed. If we pay a bit more than normal it’s just part of the convenience of having it all under one roof – or is it? Supermarket chains have weaned consumers away from the high street and are now in full command of these wondrous ships of enterprise!

Retail in general is a victim of its own desire to be all encompassing and ubiquitous and I'm not sure what the answer is - can we stop some retail businesses being greedy? Can allegiances be formed between independents to make a stronger stand? Perhaps free parking on certain days, more short stay convenient parking and more genuine money saving offers (don't get me started on the monthly 'sales' we have to endure) from retail and shopping centres would benefit retailers. Retailers could offer reciprocal special deals like a free coffee from a local cafe and a discount for a local store combined. I also think that retail stores need to understand that customers are savvy - we know that the 'special offer' they show is not really saving money or the 'everything must go' is just stores offloading their junk it is patronising to think otherwise! Consumers want real value for money and value added when they visit a shop so friendly staff, a clean tidy store and a good range of value for money items is essential. Dare I say - back to basics?