A Low on the High Street

It’s been a tough week on the high street – it’s almost too painful to watch. Not in recent memory have we experienced such high profile losses on such a regular basis: Peacocks was the first to tumble, first axing all jobs at the Cardiff HQ and closing stores, followed by the parent company selling off the Bon Marche chain which, while it saves a large number of jobs, will still see 1,400 people out of work.

HMV is working on a buyout plan which will hopefully see life breathed back in to the once-loved music retailer, while others like La Senza and Past Times sadly haven’t made it.

But then you always have the flip side of the coin too: Primark reporting ‘exceptional sales’, Asda planning to open a large number of new stores and stalwarts Debenhams and John Lewis strongly bucking disappointing trading trends.

So what’s difference in these retailers?

First and foremost, these brands have shoppers’ trust. Trust matters on a number of different levels but the common denominator among these is that they are perceived as good value. At a time where value comes above everything else you want from a retailer, these brands have tapped into the consumer need and run with it. Yes, money is tight across the country but with Primark you can still look on-trend and have enough money for the things you need.

Asda consecutively beats other supermarkets on price, range and quality and not only that, the Northern-led marketing campaigns position Asda as a friendly neighbour – someone to help you out during these tricky times (cleverly using the theme tune to Dad’s Army in their advertising to re-create a nostalgic glow whilst thinking about  doing your weekly shop.) Morrison’s cleverly does the same thing and is reporting strong trading too.

John Lewis maybe slightly up the pricing spectrum but shoppers simply love their customer service – an essential value to offer in these turbulent times - and ethos of trading (‘Never Knowingly Undersold’). Debenhams is somewhere your Mum shops, so you immediately trust it and perceive it as good value.

The retailers who are falling by the wayside often just don’t have that love factor. With the onslaught from online only showing signs of ramping up, the point of difference for high street shops is trust. Put simply, we will continue to shop in places we trust. In times of economic hardship, we’re less likely to take risks with our spending, stick to brands we like and ones which offer great service and convenience. Many high street brands would do well to remember this when trying to draw people into their stores.

To keep up to date with how the high street is faring, use this useful BBC tracker http://www.bbc.co.uk/news/business-13977255