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It’s no secret that High Street retailers, both small independents and larger corporations, are struggling in the current post-recession economy. The rise of digital and e-commerce also means that many retailers need to re-consider their offerings to customers, taking into account particularly ease of use, convenience, quality and pricing.
A great example of this currently is Superdrug. The retailer celebrates its fiftieth birthday this year, and to mark the occasion they are due to open up three new store formats. The new formats are initially trial based but if successful, will be rolled out across the UK.
The first concept is a beauty store, initially opening in Cardiff, offering cost effective, quick and easy beauty treatments. These will include eyebrow threading, manicures, pedicures and so forth. Superdrug bosses claim they have identified a lack of these stores on the current High Street and there is strong customer demand for such stores. If this trial is successful, Superdrug will look to open between 20-50 beauty stores in the UK.
The second concept is pharmacies within doctor’s surgeries, again offering convenience to customers. Superdrug realise their in-store pharmacies are not convenient for every type of customer, only those willing to travel into town centres. By offering this service they are widening their potential shopper reach by demographic and geographic location.
The third concept Superdrug will be trialling are well-being stores, aiming to strengthen their competitive positioning against Boots. These stores will offer healthcare services, such as consultancy and health checks.
The above multi-million pound format investments will also include bright and colourful store designs, allowing Superdrug to stand out against all other competitors on the High Street. Superdrug claims the designs will resemble ‘candy stores.’
In addition to the above store formats, new technologies are also being trialled at various other Superdrug stores. These technologies include: magic mirrors that take pictures of customers, allowing them to change their hair colour, aiding in the decision process. It is also looking to expand its own-brand products and also integrate smaller, more ethical suppliers into their in-store and online offerings.
Significant changes to retail offering like the above can be daunting for a brand, especially when the market is so uncertain and success isn’t guaranteed. There are multiple factors to consider when making decisions to make sure that they are the right ones for you and maximise your chance of success.
However, in light of the competition from online and out-of-town retail, innovation on the high street is needed. Retailers need to think creatively about their offerings and positioning to give shoppers the reason to visit them. Cutting-edge market research and consumer insight from FSP can inform your decisions, including on location strategies and retail offering, to ensure you are maximising current opportunities and develop in an innovative, but relevant, way in the future.
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