2012 – The end of high street shopping?…….Never

The prediction that retail sales will grow by only 1% in 2012* suggests this may be a pivotal year for retailers. With a move away from high street and towards online for many retailers – will the store of the future actually have a physical presence?

When on line retail began at the end of the 90s, predictions were that the high street would be deserted, but it isn’t. And even though stats say online shopping spend is growing faster than on the high street, the fact that the high street still exists is surely positive in itself. While the internet has become the obvious place for most people to order books and gadgets, most food and fashion shopping still takes place in-store, with customers preferring to see their goods before they buy.

The cost of running retail premises are continuing to increase, with Retailers spending £14.5 billion in rent every year and sadly, one in seven UK shops lies empty – and this is expected to rise in 2012. Online retail bears its own running costs, though minimal in comparison, but as ecommerce growth continues, stores may be forced to close in favour of this more financially viable option.

High street shopping has been pin-pointed as an important social activity, which can only be seen as positive. But the question still remains as to whether customers are now using stores merely as a means to browse their product before they purchase online or as a means of picking up or returning items. As a sole online store, Amazon released a US app last year which enabled the customer to scan in-store items to determine how much cheaper they could get the same product online – this may just be mirroring what the customer was already doing themselves.

Mary Portas’ recommendations to the government have highlighted some worthy points, but will they ultimately make a difference? Time will be the teller, and 2012 could be the turning point for retail as we know it today.

*Research house - Verdict