While physical store profit margins more than halve in eight years in the UK, ‘Store of The Future’ flagship opens at Selfridges, London

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.

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.

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.  

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. 

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. 

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.”

 

From MAKR SHAKER - bar-tending robots serving visitors' favourite cocktails in Smartech, Selfridges.

Photo by Lucia carpio

“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.

Wasteful World: Study reveals our collective delusion on hoarding possessions.

Findings from a recent study reveal one of humans’ most common demons that many of us who have recently moved homes can relate to – and that is we tend to collect too much stuffs than we need, thus resulting in a lot of wastage.

Are we collecting more than we need?
To conduct a recent survey, relocation company Movinga polled 18,000 heads of households in 20 countries with the following questions: What percentage of your wardrobe hasn't been worn in the last 12 months?; What percentage of your grocery shopping ends up as waste?; Since your most recent move, what percentage of your transferred belongings are still not in use? The company then collated the responses with data from the World Bank and other scholarly studies on the topic.

The Berlin-based relocation company Movinga have just concluded a study that reveals the world’s most deluded countries in a bid to highlight our collective issues with waste and hoarding.

Says Glenn Miotke a spokesperson at Movinga:
“With the oceans becoming ever more polluted with plastic, and the fast fashion industry bigger than ever, it’s time to start encouraging individuals to really consider whether they really need more.”  

In this study which studied the collective delusion we face as a society when it comes to hoarding and waste had revealed that the UK, Switzerland, Canada suffer the biggest lapse in judgement on their consumption levels.

UK comes in place 17 with an average delusion of 23.33%, an average delusion of 39% for clothes that people think they wore during a year, an average delusion of 10% for food waste, and 21% for relocation.

The USA wastes the most food, according to the study, but Belgium is the most deluded about their grocery shopping waste and Russians are the most realistic when it comes to their habits.
Overall, Russia was the country with the lowest level of delusion with 3.33% and Switzerland had the highest with 26.33%.

For this unique study, Movinga had conducted a poll among 18,000 heads of households in 20 countries and compared individual’s perception on how much they own versus how much they actually use to reveal the level of cognitive dissonance we live in.

The results revealed that individuals are unable to perceive their own part in the global issues we face in terms of over consumption and waste generation, and Movinga hopes this study can raise consciousness and spark a discussion on how we do our part to help.

“At Movinga, we are personally invested in ways to make the moving process more effective and less stressful for our customers, however we are becoming increasingly aware of our responsibility towards the world we live in.” Says Glenn Miotke a spokesperson at Movinga. “With the oceans becoming ever more polluted with plastic, and the fast fashion industry bigger than ever, it’s time to start encouraging individuals to really consider whether they really need more.”

The full study allows the responses to be filtered based on these categories for a more in-depth exploration of the findings.

You can find the original tables on Movinga’s website. 

Britons spend more on fashion than the French, says report

British fashion shoppers rank eighth on a list of heavy spending consumers in Europe with £1,000 spent annually on clothing and shoes on average, according to an article in Fashion Network reporting on figures obtained from EU statistics agency Eurostat.

Ranking above the UK are Estonia, Portugal, Italy, Austria, Lithuania, Latvia and Luxembourg.  

Putting UK eighth position at the top third of a list of 26 countries, the UK is also ranked much higher than French shoppers who are often regarded as more fashion-concerned.  

The French reportedly spend £600 a year but rank 23rd on the list, above only Hungary, the Czech Republic and Bulgaria.

The gap between neighbouring British and France has widened in the past decade with Britons spending 5.6% of their household budgets on fashion in 2016, which was 0.5% higher than in 2006. The French at the same time spent 3.8% of their household budgets, a fall of 0.8% over the same 10-year period.

Of course, a lot of what Britons buy goes unworn.  The article also pointed out that according to a recent survey by Weight Watchers showed that UK women and men have around £10 billion of unworn clothing in their drawers and wardrobes, or around £200 per adult.