Newly published data report that UK retailers are
suffering from diminishing profit margins drawing concern for
the UK overall economy, at a time that retailers are gearing for Christmas
sales, even without complications of a general election. However, those retailers, especially fashion brands, that are focused on
the value, convenience and luxury segments remain generally resilient, compared
to the struggles of mid-market operators.
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Strategic partnership and in-store pop-ups give shoppers new physical retail experiences at a time when retailers
are faced with increased challenges presented by online shopping, growing operating costs and inflexible leases.
Photo by Lucia Carpio taken at London's Harvey Nichols during a recent pop-up shop launch.
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The new study has found that store margins for the top UK
retailers “have dropped from 8.8% in 2009/10 to 4.1% in 2017/18.” According to
new data published by global professional services firm
Alvarez & Marsal
(A&M), in partnership with
Retail Economics, store-based profit margins have plunged,
faced with growing operating costs, inflexible leases and the rise of online
shopping, thus leading to the steepest decline in shoppers’ footfall,
and resulting in a wave of store closures, while
demand for UK retail space is at its lowest since 2007.
Richard Fleming, Managing Director and Head of
Restructuring Europe, A&M, said a new era of retail is emerging, which
means "new opportunities exist for forward-thinking incumbents, entrepreneurs
and investors."
Despite the challenges in the sector, UK retailers are being
urged to continue to invest in their in-store shopping experience, as
bricks-and-mortar shops are expected to account for 65% of retail sales over
the next five years. And while the rise
of online shopping has threatened the future of in-store shopping, the study
found that 25% of Millennials and Gen Z continue to visit a flagship shopping
destination at least once a week - more than their older counterparts, with
45-54-year-olds saying they visit on average just once every six months.
In London, luxury department store Selfridges has long been admired by
its ability to strike a balance between offering desirable lifestyle goods and
leisure through strategic partnership that gives unique experiences to its
shoppers. One of its newest additions is to have
Smartech, an experience-led tech concept store, open a new flagship in the lower ground floor of Selfridges on London’s Oxford Street, within its tech-products section.
Smartech is a new “tech playground” where more than 80 carefully
curated cutting-edge innovation pieces are on show to give visitors unique lifestyle experiences.
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Photos above and right by Lucia Carpio. |
Fronted by exclusive robotics, IoT,
smart art, FemTech, snaps-taking spectacles and the very latest in Deep Tech, it’s said to be the
largest and most experiential shop-in-shop at the iconic London department
store.
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Smartech is a concept store, designed with
discovery in mind, created for people to have fun,
diving into a future filled
with surprises
Above, visitors engaging with Waterlight Graffiti, a surface made up
of thousands of LEDs that
are illuminated
by contact with water, allowing the user to treat it as an
electrical canvas.
Photo from Smartech.
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Dubbed by the Financial Times as
“The Store of The Future”,
Smartech is billed as "a window onto what the world’s creating, bringing life to a new era
of ground-breaking makers, creators and start-ups."
Covering 200sqm, Smartech introduces a state-of-the-art
store designed by renowned British designer, Robert Storey – previously of
Prada, Hermes and Off-White.
Smartech aims to open your mind to what culture, tech, art
and sustainability will look like in the not-so-distant future. Incorporating
contemporary and sustainable influences, Smartech’s innovation space “showcases
a new design identity, embodying a never-before-seen mixed reality of tech and
futurism combined with modernity,” according to founder Jacov Nachtailer.
He said, " Everybody is talking about innovation, but you don’t have
a physical space to try, discover and buy. People come to Selfridges to
discover, which is why they’re the perfect partner for Smartech, to amaze and
amuse their customers with the world’s latest innovations.”
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From MAKR SHAKER - bar-tending robots serving visitors' favourite cocktails in Smartech, Selfridges.
Photo by Lucia carpio
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“As the digital revolution continues to transform everything
from politics to pop music, we want give people who create things a platform to
tell their story and shine light on new ideas. Pushing the boundaries of where
tech, art and creation collide has been a driving force behind our success,”
said Nathalie Bernce, CEO of Smartech.
Smartech has been turning the retail game on its head, with huge success, experiencing an aggressive global growth over the past three years and over 143% above target year on year, In addition to Selfridges, Smartech concept stores are also found in high-end department stores around the world including Paris, Milan, Berlin, Amsterdam, Rome, Zurich and Copenhagen, with another 10 stores opening within the next 12 months.