Opinion: How innovation will shape physical retail’s future

Constant talk about the decline of the high street and digital versus physical is fuelling negative sentiment towards the retail industry.

But we know from our research and from what we see in Intu centres all year round that the physical store remains vital. Savvy retailers increase revenues by a skilful combination of bricks and mortar and online presence.

According to a recent report by Verdict, 89% of UK retail sales have ‘touched’ a shop, from a combination of store sales, click-and-collect or in-store browsing and research.

“Today’s consumer is channel blind. They want good service from their favoured brands wherever they touch it”

David Fischel

Today’s consumer is channel blind. They want good service from their favoured brands wherever they touch it.

The research also shows that 55% of consumers research online purchases that they eventually make in store and 75% prefer to try on clothes before buying.

New openings

This demonstrates that rather than becoming a dinosaur, physical space is alive and kicking. Even more interesting is where it continues to evolve and adapt, it is thriving.

Over the past year or so, Intu has seen international brands test and roll out across its centres. Tiger, Kiko and Smiggle have entered the UK market and have rapidly expanded and become popular across the country as a result.

Last year accessories retailer Lovisa followed fellow Australian company Smiggle into the UK, with two of its first five stores at Intu centres.

And it’s not just international retailers who are trialling physical space ahead of national UK expansion.

A number of brands are exploring innovative ways of marketing and selling within a shopping centre environment, such as traditional big box retailers like Sharps who are downsizing their footprint, as well as start-ups looking for ways to establish their businesses for the first time.

So when I’m asked about the death of the high street, I remind people just how innovative UK retail is, and about its long history of evolution and adaptation.

Evolution of retail

We should never consider it a physical versus digital fight but rather look at the unique opportunity for innovation that improves the customer experience and enhances sales.

This approach is vital to the industry, whether you’re a retailer or a landlord.

With innovation in mind, we recently launched Intu Accelerate, a 10-week incubation programme that will involve us working with some of smartest start-ups out there and the best talent to help spot new ideas and continue to shape the future of retail and retail property.

We’ve seen from our recent competition with Virgin StartUp to find the UK’s most innovative food entrepreneurs that there are some unique and exciting ideas and businesses out there.

Tapping into that and harnessing new ways of thinking is something we’ve done before and will continue to do so. This will ensure that our business continues to evolve and as an industry we continue to make UK retail the success it is today.

David Fischel, Intu