Retailers are going through a traumatic time. Already this year La Senza axed 81 shops after the firm went into administration, The Peacock Group collapsed due to net debts of £240m and even Tesco announced a decrease in retail sales.
HMV announced such disappointing Christmas sales that it has now outlined a new multi-channel strategy. The appointment of a new head of insight and ecommerce, Paul Stevens will push HMV’s online offering forward this month.
The advancement of online retailing and media downloading is forcing retailers to change the way they work. According to a recent Government-commissioned report, by 2014, less than 40 per cent of retail spending will be on the high street, with many customers deciding to do most of their shopping online.
Competition in the tech market is particularly fierce, with CDs and DVDs being sold cheaply in supermarkets and the rise of online digital downloads taking a large share of the market. It is not going to be easy for HMV to differentiate itself in an already overcrowded market, particularly when big players like Amazon have established online profiles.
The answer for HMV is to place equal importance on its online and offline offering. The aim is to simplify the HMV website, whilst expanding the service and product portfolio to movie rentals, live ticketing, digital music and device sales. Better online integration of its PureHMV loyalty programme will also launch this year.
Online retailing is providing a lifeline to brands like HMV that have been struggling on the high street for many years. However, it must embrace a multi-channel approach (stores, online, click and collect) and engage with customers across all retail platforms to set itself apart from the Amazons of this world, whilst remaining competitive.
Keeping the high street alive and kicking is vital, not just for HMV but for the UK in general. Without it we will lose the ability to touch and try products, whether this is testing a smartphone or games console. Of course, it is harder for companies like HMV, given the nature of their existing product range and the proliferation of digital downloads.
However, I think that if we lose the high street it would be a great loss to the community up and down the country. Some responsibility for sorting out the high street must fall on the local authorities, who could do worse than embrace a few of the ideas put forward by Mary Portas’ 28 point plan, at the end of last year.
Hannah Byrne
Let us know what you think about the move to online retailing - would you miss hitting the high street?