This week is the deadline for retailers to pay next quarter rent; reports suggest a new wave of cash starved retailers could be forced to shut their doors as a result.
Increasingly desolate high streets are showing visible signs of decline. Experian’s retail consultancy predicts the number of empty shops across the UK will hit 135,000 by end of 2009 – a record rate of 15% of the total. Of those chains that have closed administrators are only selling off a fraction of their estate, leaving a glut of empty stores.
Opportunities
With landlords under pressure, leasing deals can be done. With room for more negotiation, fledgling retailers or brands with aspirations to trial the high street may decide current market conditions present an opportunity.
Charities are getting in on the act. “C@ Walk”, a fashion retail brand run by animal charity PDSA recently opened its doors in Northampton. Irrespective of your thoughts on the branding and design, the store – stocked with new not second hand ladies fashion – proves that market conditions suit some.
C@ Walk by PDSA
Pop up
While pop up retailing isn’t new, they are usually premium or exclusive affairs; Tyler Brule’s “Monocle” and “Eco Shop” in Westbourne Grove are recent London examples. Product brands like Pepsi, with “Pepsi Proper” have used pop ups to create brand experiences in LA and New York, forcing people to reassess the brand, due mainly to the brands that they partner with.
Pepsi Proper poster
Executed correctly, pop ups provide the means to create an event and sell on the high street. Brand awareness can be created and loyalty generated without having to invest in full retail fit out, permanent staff and all other operational costs. At the same time brands can bask in the glory of bringing energy back to an increasingly gloomy sector.
All that remains to be seen is whether retail brands and brand owners are flexible enough in thinking to give it a try.
CORDthinking 