LONDON, 2016-Jul-19 — /EPR Retail News/ —
New research by Verdict and British Land shows:
- 89% of all UK retail sales touch a physical store
- True Value of Stores includes click & collect and online sales browsed in store
- Under 35 year olds use stores the most
- Londoners are more likely to visit a store as part of their shopper journey
- Click & collect and online sales browsed in store boost UK physical sales by +5%
- Boost rises to +9% when excluding Food & Grocery
- Electricals show a boost of +32% as online sales rely heavily on stores
Beyond the True Value of Stores, there is a ‘halo effect’:
- Stores improve brand awareness, customer service and trust
- Hence physical also contributes to online sales that do not directly touch the store
- Click & collect spend is set to double by 2021, driving growth in the True Value of Stores
- Retailers that can offer a seamless omnichannel experience for shoppers are likely to outperform
The True Value of Stores formula and the potential ‘halo effect’ – Source: Verdict
Charles Maudsley, Head of Retail for British Land, said: “This research demonstrates the continued value of the physical store and the important role it plays in the lives of consumers.
“It builds on our knowledge of why people shop, to better understand how they shop across channels. We see retailers responding to this through their flagship and local stores. British Land’s strategy reflects this approach. Our lifestyle-oriented Regional and Local centres deliver a mix of retail, food & beverage and leisure to meet a range of shopper needs.
We see retailers responding to this through their flagship and local stores. British Land’s strategy reflects this approach. Our lifestyle-oriented Regional and Local centres deliver a mix of retail, food & beverage and leisure to meet a range of shopper needs.
Leading retailers and landlords need to continue to embrace omnichannel to future-proof physical stores and meet the needs of consumers today and tomorrow. We are investing in our portfolio to support a variety of shopper journeys, enhance and broaden the appeal of our assets, and create Places People Prefer.”
Ben Dimson, Head of Retail Business Development for British Land, said: “The True Value of Stores research reveals a number of thought-provoking insights, such as the importance of stores for under 35s, and the varied role of the store across sectors.
“Data is integral to the way we run our business. Understanding how physical stores influence online sales helps us ensure our retail strategy is deep rooted in the mindset of the consumer. We expect to see continued demand for physical stores from a variety of operators, and this research helps to cement their place within retailers’ plans in an omnichannel age. Even online pure-plays are dipping their toe into the world of physical, taking pop-up space or temporary units. In doing so, they benefit from the ‘halo effect’ that stores offer – generating online sales and strengthening customer relationships.”
Notes to Editors
About British Land
We are one of Europe’s largest publicly listed real estate companies. We own, manage, develop and finance a portfolio of high quality commercial property, focused on retail locations around the UK and London offices. We have total assets in the UK, owned or managed, of £20.0 billion (of which British Land share is £14.6 billion) as valued at 31 March 2016. Our properties are home to over 1,200 different organisations ranging from international brands to local start-ups. Our objective is to deliver long term and sustainable total returns to our shareholders and we do this by focusing on Places People Prefer. People have a choice where they work, shop and live and we aim to create outstanding places which make a positive difference to people’s everyday lives. Our customer orientation enables us to develop a deep understanding of the people who use our places. We employ a lean team of experts, who have the skills to translate this understanding into creating the right places, and we have an efficient capital structure which is able to finance these places effectively.
In April 2016 British Land received the 2016 Queen’s Award for Enterprise: Sustainable Development as part of Her Majesty The Queen’s 90th birthday honours. The Award is the UK’s highest accolade for business success and is given to companies which bring major economic, social and environmental benefits through their own business success. It was awarded to British Land for continuous achievement in all these areas over the last five years.
Further details can be found on the British Land website at www.britishland.com.
About Verdict Retail
Verdict Retail is a retail research agency and consulting firm. Our work focuses on all aspects of retailing and consumer behaviour, which we deliver through bespoke reports, projects and presentations and through our leading edge Intelligence Centre platform. We work with many of the world’s leading retailers, property firms and those in the financial sector to help them maximize success by developing a thorough understanding of the sector and its likely future performance. We also work with many retail suppliers, from manufacturers to professional services firms.
For updates, please follow us on Twitter or visit www.verdictretail.com.
About the Research
Verdict conducts regular surveys of UK online shoppers to gauge their interaction and spending across a variety of retail sectors, channels and fulfillment methods. Each March and October, a sample of 10,000 consumers representative of the UK online shopping population are asked about their shopping habits over the previous 12 months. This research is based on the March 2015, October 2015 and March 2016 surveys. Participants were asked about how their order was delivered or collected, and how they interacted with the retailer’s store prior to making the online purchase.
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Source: British Land