The event looked at techUK’s recent report on how retailers, local authorities and government can leverage technology and digitisation to address the challenges facing physical retail and build even more meaningful connections with consumers. The discussion was chaired by Matt Vickers MP, Co-Chair of the APPG on the Future of Retail and hosted by Tanni Grey-Thompson DBE.
The BRC’s Chief Executive set out how technology is already impacting retail and how businesses can harness new tech to improve efficiency, boost customer engagement and cut emissions. However, the retail industry needs a more sustainable cost base in order to invest and make the most of new technology and for that, a cut to the business rates burden is essential.
Helen spoke to how technology is – and will continue to – drive change in retail, and how it is already being utilised by retail businesses to adapt and thrive to that transformation, through the integration of channels, the adoption of smart footfall trackers and software to help understand consumer trends. This change is consumer-led: Helen explained that changes underway in retail are a response to evolving shopping habits and preferences. For example, shoppers increasingly see physical and online retail as part of the same package, with an ever-diminishing divide. Different business models – click and collect, ordering in store for home delivery and so forth – are testament to this shift in perceptions.
Helen expanded on this point, setting out that ‘retail’ and the ‘high street’ are not interchangeable terms. The high street is home to a range of other businesses and services, which should be considered in any discussion on the future of high streets and town centres. Retail is an integral part of the high street offering, but the role of leisure, hospitality, services, co-working and residential space needs to feature in plans for community spaces. Overall, a successful high street is one that understands and meets the needs of the people who use it.
Beyond understanding and adapting to consumer behaviour, technology also has an immense role to play in supporting operations, including through the streamlining of logistics and efficient store energy use.
If there is one policy intervention that government can make to help high streets, town centres and physical retail more broadly, it is business rates reform. Helen set out how the rates burden has grown since the tax’s introduction, and how it is increasingly out-of-step with the realities of the market. Other speakers were unanimous in their agreement that addressing the rates burden is crucial if high streets are to thrive, in-line with government aims on levelling up.
The BRC is a co-sponsor of the APPG on the Future for Retail, helping to shape the group’s work programme. If you’re interested in attending any upcoming events or would like to suggest ideas for the APPG to explore, please get in touch with Tom McCarthy.