Independent retail is here to stay

COMMENT: Times are tough for bricks-and-mortar retail, says Mandeep Singh, chief executive and co-founder of independent retailing network Trouva. In 2017, the number of restaurants entering administration was up by 20%, while recently we’ve seen significant store closures by retailers such as M&S and Maplin. The picture seems bleak; just step on to many British high streets, with struggling identikit chains and endless betting shops offering consumers little variation and even less inspiration. The Local Data Company reports that more than 3,000 comparison goods retail units were lost in the past year. The big perceived threat to offline retail has long been online. However, though it seems counterintuitive, the future lies in the interweaving of online and offline. Customers already shop this way – online giants such as Amazon are opening physical shops in key US cities, while a study by Bazaarvoice showed that 82% of smartphone users research online before purchasing in-store. The problem is that most multiples have been slow to adapt to technological shifts and haven’t invested in building great retail experiences, which will ultimately result in their demise. Bucking this trend, the savviest independents – perhaps precisely because they don’t have the economies of scale of multiples – have been quick to recognise how technology can help fund and support offline presences. Our 450-strong community of independent boutiques use our technology platform so they can use their shop space to serve online orders as well as footfall. It’s vital that we use technology to support quality independents, as they can offer unparalleled shopping. They provide unique products, bespoke customer service and beautiful, experiential retail spaces. Indeed,  many of our independents use their shops for events, workshops and cafés. Ultimately, this is a fundamental part of what a sustainable future for our high streets looks like. It epitomises the quality and convenience that consumers increasingly expect. So while bricks-and-mortar retail isn’t dead, the industry must recognise that rent structures of the past are unsustainable as retail changes beyond recognition. Independents can move quickly and take space vacated by chains, but they don’t have the history of trading in other sites that means multiples can be perceived as safer tenants. Independents can bring quality to high streets but they shouldn’t be used just long enough to make an area fashionable so rents can be increased (which, exacerbated by the antiquated rates system, drives independents out and allows chains in). Instead, we must recognise that independents are a key part of the core tenancy base that can attract desirable destination footfall, and be a shining light in the future of our high streets. Mandeep Singh was previously a private equity investor at BC Partners and a retail strategy consultant at OC&C.