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Shoppers blame business rates and rents for poor in-store experience, new RetailEXPO research reveals 

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Written by Amy

Whilst UK shoppers see a continued role for retail on the High Street, consumers blame business rates and rents for holding retailers back in delivering innovative and engaging in-store environments,  the latest report from RetailEXPO revealed.

Original research of 2,000 UK consumers in the ‘Retail Trends: How retailers can harness digital to capture the consumer in 2020 and beyond’ Report from RetailEXPO revealed that over half of UK consumers (54%) felt the would always be a role for retail on the High Street, with a further 68% saying the High Street wouldn’t be the same without shops on it.

However, UK consumers blame current trading pressures for holding back retailers in creating the engaging in-store experiences that would drive footfall and secure retail businesses’ role at the heart of the High Street.  Half (50%) felt that the burden of business rates and rents was negatively impacting retailers’ ability to innovate and make their stores engaging.

With HMRC figures suggesting the number of businesses waiting for challenges over soaring business rates to be resolved has jumped by more than a third in just three months, experts are suggesting the proposed reduction of business rates of £10million a year from 2021 to 2023 under the Conservative’s spending plans do not go far enough to have a meaningful impact on businesses.

And, with 64% of shoppers saying they would shop elsewhere if a retailer didn’t provide an exciting or engaging shopping environment, this, RetailEXPO suggests, highlights the importance of providing enhanced customer experiences in-store to drive sales and improve performance.

Adding experiences into bricks-and-mortar retail was the top improvement for UK customers when it came to improving shopping journeys in-store, with 40% saying store events would improve customer experience.  28% wanted in-store events to support green initiatives that promote greener retailing, while a further 28% said they more community-based events and initiatives would make physical retail stores more engaging.  A fifth (20%) thought spin-off experiences that tapped into tribes or consumers with similar values, such as running clubs from sportswear brands or cookery classes for food and beverage retailers, would make brick-and-mortar shopping more appealing.

Matt Bradley, Event Director for RetailEXPO, said: “We know that the experience economy’s value – both in terms of its economic worth but also the value placed on experiences by shoppers – is growing.  And this presents a key opportunity for stores in delivering value where digital and pureplays simply cannot.  If most items can be purchased online, then the store needs to be a desirable destination that offers experience, inspiration, and memorable interactions to create a point of differentiation.”

For more insights and key takeaways for retailers looking to capitalise on the opportunity that new retail presents in 2020 and beyond, download the full report: http://bit.ly/RetailEXPODigitalConsumerReport

 

 

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Amy