In the United Kingdom, retail techniques have always shown signs of change since the mid-1960s amid the emergence of modern technology (Thomas, Bromley &Tallon, 2004). Retailing was adopted mostly by businesses located in cities and towns. These businesses were referred to as the high street. They were very effective, particularly in the 18th century (Chaparro-Peláez, Agudo-Peregrina & Pascual-Miguel, 2016). However, the emergence of online marketing seriously impacted on their operations. The optional sale techniques used in the high street market transformed from the development of households with an auto to substantial shopping scale conditions.
To infuse vitality back to the main street, it is contended that concentrating on making a social space instead of a "retail attractor" helps owners to limit imminent dangers to the physical retail stores (Findlay & Sparks, 2009).Town focuses will profit by figuring out how to modify the picture of high streets to make it a more alluring retail space. For instance, reports by lay out a progression of suggestions to make the high streets all the more engaging to consumers. By utilising discourse analysis cases, this investigation will predominately look at the viability of such activities on the neighbourhood high streets and the suggestions for retailers. The retail sector has become the centre of attention in the UK, especially at a time of complex and rapid evolution. Today, there are centralised policies like the improvement of the town centres and high streets. According to DCLG(2012a) and prominent evaluations shows there are substantial importance and concern for the retail economy by politicians as well as the industry in general. Grimsey et al. (2013) found that 46.6 percent of traders in the UK were considered to have a high possibility of failing. The issue of recognizing outmoded retail settings are vital to the key stakeholders in town centres. However, a concise, reliable, valid and precise conceptualization of the dynamics affecting the high street markets needs to be considered for the survival of this sector.
The study demonstrates that many perspectives regarding the high streets is directed to expert storehouses and relates particularly to specific partners. The data is left unused and of no meaningful value. Even so, while there has been an appalling reasoning about the high street, a substantial portion of it has been done in disconnection once in a spell supported by any sort of inventive vision (Prashar, Vijay & Prasad, 2016). Of note is that an extensive audit truly divulges the reasons why there is a steep decline of the high streets. As such, there is need to consolidate literature regarding the subject. Indeed, it is clear that sales outlay on the street businesses is dwindling and the pattern is set to carry on this trajectory.
The present concerns have raised and reframed consumers' desires about high streets and town focuses. Comfort has turned into the 'trend expression'. The present state depicts a period of consumerism and, thus, the high street needs to adjust accordingly given that shoppers are pursuing alternatives that are convenient for them. Kollewe (2017) records that the UK consumer environment continues to be challenging especially the homeware and clothing markets. The trend reveals that recent times has witnessed an increase of the retail floor space by 30%. On the other hand, the retail space around the local area has fallen by 14% (Kilby, 2013). The resulting improvements have been facilitated by superb arrangement rules and guidelines.
Literature gaps
Validity and reliability
The sources which were utilized in the research process was obtained from trusted, where personal sources and blogs were avoided. Also, the study used the most recent resources to ensure that the information obtained is up to date. The study can be relied upon in that the material relevant information concerning the problem under examination.
The bias of the literature
While so many studies suggest that internet could frequent the ultimate danger for high street shops, most have failed to establish the probable underlying reasons behind the drift. Some have argued that the availability of the internet and technology advancement is the major reasons why the customer is abandoning the high street. The studies have failed to decide the satisfaction level in both setups to find out the most satisfying mode of shopping. In the study, the customer has cited that the current tradition mode has failed to fully cater for the customer and to acknowledge trends of a customer. The study suggests that other than the availability of the internet, customers could be leaving because they are unhappy about long queues, poor customer service or in search of an exciting and unique shopping experience. Besides so many factors, available resources have failed to underscore that the need for change in imminent and that the current customer wants a change. Even though E-commerce has negatively impacted high streets, the latter has failed on its end to extensively research on the reasons why customers are leaving and how to elevate the current status. In addition, they have predicted that the trend of online shopping will continue to rise and they have failed to require critical measure that firms should take in order to have a competitive edge.
Research approach
The research heavily involved the use of accessible materials that have been searched and published by other researchers. Common search engines such as Google scholars and online libraries were used in the process. Some of the questions that aided in the process included; reasons why persons shop online, reasons why people prefer high street shops, the future of street stores and barriers to online and off-line shopping mode. By typing the above questions into the search engine, relevant documents were obtained. The search was also limited to reflect the most recent years for the validity of the materials.
Literature review
Are the declining sales in the high street as a result of e-commerce?
E-commerce verses high street shopping
E-commerce is increasing perhaps more than ever before. Studies show a gradual rise in the level of sales taking place on the internet. In addition, hardly a weak go without hearing of a shop closed. According to a research conducted by Daniel, Wilson and Myers (2002), the online spending in the USA increased by 14.5% compared to the previous years, where the value of sales rose up to %37.66 billion. The figures are significant and critically show the vitality and the speed at which internet business is gaining momentum. In this light, most people prefer to buy their commodities through the internet as opposed to the traditional high street shopping (Daniel, 2003). While the online business platform is gaining weight and booming, high street business is losing value and could soon diminish in the near future.
E-commerce has fundamentally changed consumers shopping experiences as well as expectations. Quayle (2002) conducted a research to show the trends of online purchasing where the findings were interesting. The report depicted that 80% of all Americans had shopped online in the year 2017, compared to 21% that had made purchases in the year 2000 (Quayle, 2002). The trend is predicted to continue. The pattern predicts that there will be more and more consumer shift from traditional business to online platforms (Turban et al, 2017). There is no doubt that the increase in the e-commerce poses a danger to the high street retailers in the. Feasibly, traditional retailers should keep up with the challenges that are presented by the emergence of online platforms, or they will all die before the year 2030.
The high street market plays a critical role with regards to economic growth and development. In a briefing paper concerning business statistics in the UK, Rhodes (2015) divulges that more than 2.9 million people earn their living through activities carried out in this market (Wallace, 2017). Nevertheless, the market has confronted several challenges that jeopardize its existence. Policies that support shopping advancements have been recognised as a genuine risk to high street retailers as they discourage consumers from the high street stores and hence, consider negative ramifications on the community (Grimsy, 2013). Due to constant threats from the Internet and unique shopping techniques, the high street needs to increment the value of goods and services they offer to their clients. Besides, shopping experiences and delivery times are key approaches for drawing consumers to the autonomous retail stores and the customary high street (Thomson & Laing, 2003).
Most shoppers have argued that the current business model in the main street fails the modern shopper or customer. The effect puts them in immense danger of collapsing in the near future. The report shows that, of the surviving businesses, 30% are labelled in danger of collapsing and a substantial number of shops have been making losses of the last two years (Kim and Peterson, 2017). With online shopping, a customer is only required to request for the commodities and set a date co tallest the same (Omar, 2018). The experience with e-commerce saves them time and money thus remaining the most legitimate option in all the time. If the current shops and stores will not restructure their business model, they will definitely lose customers at the expense of online platforms.
Reasons why people shop online
The convenience of the internet doing the shopping
The easiness and convenience of e-commerce online purchasing administer it an advantage compared to other modes of purchase (Chaffey, 2015). Most people prefer online shopping due to its convenience and easiness; they are allowed to buy their commodities while comfortably sitting in their homes. Statistics show that more and more consumer are joining the online platform each new down. According to a report conducted by Falk and Hagsten (2015), high street figures slammed to their biggest fall over the recent past, and online sale rose up to 21.5%. The effect has led to the closure of most high street shops in the UK over the recent past (Nica, 2015). For example, Britons have witnessed the downfall of a number of their favourite shops. Notably, Woolworth, which has been in operation over the last ten decade, collapsed in the year 2008 and Blockbusters in the year 2013. With online shopping being on the rise, more and more traditional markets will continue to fall (Gomez-Herrera, Martens & Turlea, 2014).
Easy to make comparisons
While purchasing goods online allows the consumer to make a comparison of an extraordinary variety of products from different stores and have the commodities delivered at your own experience, a substantial number of consumers preferred shopping from high street shops. The study shows that, while customers agree that online shopping has shaped the exercise quite easy, there are factors that deter them from fully adopting process (Singh & Prashar, 2014). The most cited the reason is that many grocery shops will have the tendency to dispose of some of the commodities that are likely to go off in the near future (Villa, Ruiz, Valencia & Picón, 2018). In this light, the likelihood of collecting law quality grocery is very high. Additionally, high street shops offer a discount on good bought in bulk something that is not common in online shopping (Rankin, Kamizaki & McLean, 2015). Consequently, grocery shoppers prefer shopping from physical stores compared to online shopping. While e-commerce is taking place in many sectors, high street shops nevertheless have a place in the market.
Reasons why high street shops are collapsing
Many retailers are dying and will continue to die because they failed to embrace changes in the current digital world. So many examples of a large high street retailer choose to bury their heads in the sand, while more if not all businesses went digital. According to Simpson and Docherty (2004), Jessop and HMV failed because they were reluctant to do digital part of their core business. Even though business capitalizes on commoditizing products and services, failure to utilize digital sense to improve customer engagement touch points is a detriment in the long run of the business (Turban, 2018). Customers today are looking for an exhilarating experience that could make them feel valued and respected. While ensuring the store has all commodities in the store is important, improving on digital experience is equally important as it ensures the business has a competitive edge.
The decline in sales in the high street markets has resulted from the emergence of superstores and threats from shopping centres. Nevertheless, Gazit (2016) thinks the high street is not at risk of extinction, but rather changing to meet the technological disruptions of the current age. What is more, it is stated that development in retailing methods has contributed to the loss of an asocial aspect of the community. According to Kures and Ryan (2012), a people’s social investment and implemented networks are considered the most significant assets. Conversely, there is need to keep up the vitality and viability of conventional town centres. The effect of this approach is a critical concept in consideration of the future success of the high street as it signifies the extent to which a town centre is occupied (Prashar, Vijay &Parsad, 2016). Even so, the viability signifies the level of actualised investment. While retail shopping on the high street is a key factor in conveying an increased footfall to a town centre, it is significant to offer more than a shopping environment for consumers (Vizard, 2013). Further, entertainment can as well enhance the commercial viability and consequently help to support the high street market. The decline of town centres can have an additional effect on employment, the appeal to the area, and the competition of prices. In this regard, the declining sales in the high street market do not only result from the development of e-commerce but also from the existence of many other factors.
The number of sales of any business affects its success. Sales development on the high street is not only impacted by the superseding fiscal conditions but also variations in the customer’s consumption pattern as well as their ability and willingness to go out for shopping (Chen, 2009). In this regard, the necessity for more prominent adaptability from retailers, not just those situated around the local area, is fundamental. The ultimate objective should be to enhance the capacity to respond according to the market’s dynamic changes. Besides, retailers should possess the capacity to show adaptability from multiple points of view (Mennecke & Strader, 2003). For instance, by operating in a wide variety of store sizes, increasing the working hours, gathering information about consumer behaviour among others helps to improve retailer’s position in the market. The consumer purchasing pattern has progressed toward a point of becoming less unstable. The instability of the consumption pattern is a substantial threat to the high street markets. In any given business, consumer demand rules its profitability. According to Allport(2005), the consumers' expanded price affectability is both a reason and an impact of the polarization that has happened among retail administrators, especially in the footwear and clothing market.
Is it still conceivable to be successful on the high street?
Benefits of shopping from high street shops
No hidden charges
Shopping from high street has no hidden charges. The consumer can determine the cost of a commodity and other charges before constituting the purchase. While there are a couple of tools that can help one to find the desired good, customers should be aware of the hidden charges that are associated with buying goods online (Parker, Ntounis, Quin & Grime, 2014). Return fee, browsing cost and delivery fee are some but few charges that a customer must be aware of. For example, Tesco supermarket charges $3 to $6 on delivery slot from Monday to Thursday (Bly, Gwozdz & Reisch, 2015). Other supermarkets deliver goods at a flat-rate fee and on free bases if you spend a certain amount in the purchase of goods. The combination of all these hidden extra charges makes online purchase more expensive compared to the traditional method. While online purchase seems like a lucrative business, hidden charges make it expensive and as a result, a substantial number of consumers choose to stick to high street shops.
The readiness of the products
Things bought at from the high street shops are taken home for use immediately. Contrary, when a customer’s place on order online, they have to wait for some days before the actual delivery is done (Gomez-Herrera, Martens & Turlea, 2014). The convenience and speed of the delivery are the greatest predicaments that crop up while buying online. Studies show that, albeit many online shops have an order tracking system, there are chances of inaccuracy to happen (Idris, Edwards & McDonald, 2017). In addition, the delivery person might show up in a customer’s home when they are at work or out somewhere with friends. The problem is far worse when returning a faulty product back to the store. On top of this, vast of the population of in the UK leaves at far away location where e-commerce does not offer delivery(Lim, Baharudin & Low, 2016). Though some of the shoppers have agreed that online shopping is a lucrative opportunity, the delivery mode becomes faulty making some customer run away from online platforms.
Quality of the product
Given the enormous volume of good that online companies are dealing with on a daily basis, it is very dense to conduct quality for checks for every time sold. The issue of quality is even more complicated when it comes to cloth shoppers (Valmohammadi & Dashti, 2016). The sizes of clothes vary from brand to brand and a customer could buy a product thinking that the size will fit, only to be disappointed in the end. Besides, the reviews and research that a customer conducts before making a purchase do not always assure the products quality (Krizek, & Johnson, 2006). Shopping from high street shops offer the consumers a chance to try before purchasing (Mullaney, Lucke & Trueman, 2015). Furthermore, there are perpetually a bunch of fraudulent sellers who manipulate product information in order to mislead customers. All of the above flaws are rare cases when it comes to high street shopping (Kearney, 2015). A customer will have a firsthand experience with the goods before making a purchase. In this light, the customers will always prefer high street shops compared to online platforms.
The reason why people don’t shop online
Flaws in the payment method
Payment method is another barrier that hinders customer from buying online. Whether a customer is using credit or debit cards or any other available digital payment method, chances of digital payment failure fail while effecting the transaction (Kabanda & Brown, 2015). A technical glitch or even internet failure results to a customer's account to be debited with a precise amount that is never credited to the seller's account. In addition to this, when a customer realizes the faultiness of the transactions, it takes more than seven days to collect the same (Perera, Ruikar, Ingirige & Obonyo, 2017). This is a rare case when goods are purchasing goods from high street shops. As a matter of fact, the transaction is completed immediately, and the commodity is paid for. Chances of failure in payment mode are one of the hindrances that make it hard for making a purchase online.
Perception and inbuilt resistance
How consumers perceive online shopping is another barrier that hinders online shopping. Studies show that people, who are not price or convenience sensitive, may not have a particular reason for shopping online (Kinuthia & Akinnusi, 2014). Further studies show that non-internet users or non-online buyers find online shopping hard, complicated, expensive or unsafe (Abou-Shouk & Eraqi, 2015). The findings suggest that while most business turns to online platforms, they have failed in the sense that they do not orient target customers on online platforms. Further research indicates that people's perception about online shopping is likely to be influenced by word to word from intimate acquaintances and family members (Agarwal & Wu, 2015). This suggests that there is a substantial proportion of the larger population still has an inbuilt perception of online shopping.
Cyber-security measure
Studies show that lack of stringent cyber-security measure is one of the greatest hindrances that deter people from shopping online. Undoubtedly lack of cyber-security is a major throwback on the internet today (Wrigley & Lambiri, 2014). E-Commerce site preserves important records regarding a customer which includes phone numbers, addresses and even bank account (Lim, Baharudin & Low, 2016). Where there are no strict measures to secure such sites, customer's data are at the risk of falling into wicked hands that can sabotage it in return (Reimers & Clulow 2009). Most of the big online platforms have commendable measures to secure customers information through the same cannot be said about smaller business sites. Internet insecurity is and has inevitably been a problem when it comes to online shopping.
Return and guarantee policies
Unclear return and guarantee policies in online platforms are far more complicated compared to those of a high street shop. While buying goods online, a customer is unclear about the quality of the product unless he or she gets hold of the good in his/her hands (Kabanda & Brown, 2015). A report shows that it is a common phenomenon to return good bought online by the customers. Lamentably, the majority of the online shoppers have vague return policies making it hard for consumers to buy good from them (Kearney, 2015). In addition, the sites fail to mention the guarantee policies and refuse to take back or replace a damaged commodity. This effect is uncommon on high street shops as the customer has the time to inspect the good before compensating for them.
Unnecessary pop-ups
While online buying experience is hailed by a number of consumers, some still feel that it is far behind from the actual satisfaction. Some activities on the internet are user-unfriendly and very irritating. While browsing the internet, there are a number of unrelated adverts that keep popping out (Annett‐Hitchcock & Xu, 2015). A recent research indicated that 40% of the consumers stopped browsing the internet in the next fifteen minutes, with 20% turning to the high street markets to look for what they require (Bornioli, Parkhurst & Morgan, 2018). As a result, the time is taken to find the desired commodities increase and thus does the cost of browsing on the internet. In addition, there are too many options, lower customer service, company websites not being personalized enough and lack consumer support (Carmona, 2015). A combination of all of the above makes online shopping difficult thus giving high street shops an added advantage.
The future of high street shops
All is not bad for the high street stores in that, as customers come to obtain their goods, they make use of some of the stores. Accurately boutique arrangements are doing so well on this type of arrangement. It can be argued that online shopping does not kill high street shops but rather it only enhances customer experience (Mazzarol, 2015). In these light, retail shops should make use of the opportunity that is created by the e-commerce; they should stock a variety of products as well as positions themselves in places of excessive concentration (Agwu, & Murray, 2018). By doing so, they will remain competitive in the market and could even be chosen as one of the stores to stock online goods (Rahayu, & Day, 2015). Instead of mealy viewing e-commerce as the probable source of death of high street retailers, they should restructure their way of accomplishing things to confirm that they have the competitive world. The study evaluated the effect of E-Commerce on the high street market by focusing on different aspects of the market.
Conversely, it is arguably to claim that there is a possibility of success in the high street market. The stores continue to be critical to the retail markets in spite of the growing raft of concerns and outlay connected with it (Waithaka, & Mnkandla, 2017). As a means of advancing their position in the market, retailers ought to acquire new techniques where their product and street offerings, along with the store experience appeals to the customers. Besides, the means should convince prospective consumers to shop from the high street businesses more often. With the stores presenting more of a social and convergence environment, businesses can learn new ways from differentiating their products to create exclusive selling points to consumers (Kwon and Kim, 2012).
Conclusion
In the UK, High street shops have attracted a lot of interest in the recent past. The most cited reason behind the attention is the decline in sales and profit for the retailers. With the advancement of technology in almost all sectors, most of the consumers opt to purchase their goods online as opposed to the traditional high street method. As a result, UK has registered extraordinary drift in terms of customers, who prefer to shop at the comfort of their homes. Consequently, many retailers undergoing the decline in sale blame internet as the major cause.
The study has determined that there are many people currently employed in the high street markets. It is approximated that about 2.9 million people are employed in this sector. In this regard, the e-commerce has not completely occupied the sector. There is, nevertheless, a likelihood of success in this market is appropriate measures are implemented. Observing the emergence of digitalisation, it is conclusive that the UK economy was highly affected, consumer spending increased, and the economy impressively expanded (McDonald, 2013). This is an apparent evidence that the e-commerce plays a critical part in economic development and expansion. On the flip side, the decline of the high street market considers the economy accruing a substantial loss. The loss is attributed to the elevated rate of unemployment associated with the decline of the high street market. Incidentally, it is vital to point out that the role of the high street market in economic development cannot be undermined. As a means of developing their position in the market, firms can perceive novel approaches where their street and product offerings along with the shop experience can intrigue and appeal to customers and even attract them to the street stores. The high street offerings provide more of a social environment. As such, businesses can learn how to segregate and position their products to develop exceptional selling point to the consumers.
Arguably, while the internet has developed a dramatic shopping experience for the consumers, it has also cost high street sellers in one way or the other. From the existing literature, the number of online shoppers is increasing day by day and the trend is predicted to continue in the future (Chen, 2009). The effect has left many worried that high street shops could be of the danger of extinction in the next two decades. Nevertheless, the study has critically analyzed all benefits of shopping online, benefits of shopping in the high street shops, barriers to internet shopping and reasons why people shop online. Each of the two shopping modes has a unique set of a characteristic which places them at an advantage or disadvantage over the other. Also, there are a number of reasons why customers shop using a particular method and not the other. Although online shopping has caused some decline in sales and profits of high street shops, a high street shopper should look the other way and capitalize on what they can do best to withstand the competitive market.
Beforehand, the study analyzed substantial barriers or difficulties associated with online shopping. Default payment method, difficulties within the delivery methods, problems associated with the quality of the products and incomprehensive police are some but few examples of such problems. Despite the fact that customers are facing a bunch of problems while shopping online, they still use it anyway (Kwon & Kim, 2012). The effect suggests that even when the method is not all-encompassing, the satisfaction derived from shopping online is way too far. In this regard, it can be concluded that online shopping is not the major cause of sales decline in sales.
The study also highlighted some of the moor benefits associated with buying from high street shops. In addition, the study exposed the reason why some people opt to buy from the retail shops as opposed to the internet platform (Waithaka, & Mnkandla, 2017). Even though people are changing their shopping experience there are cases in which they prefer the old method. There are cases and instances that are not compatible with online platforms. In this regard, retailers should capitalize on these areas to ensure that they take full advantage and reap maximum benefit.
In addition, reasons why people shop online suggested that there is a loophole in the high street shopping method. The convenience they derive from the same is beyond comparison (Mennecke & Strader 2003). They are allowed to shop from the comfort of their homes as opposed to the tedious process of walking up and down the store looking for the desired product. In this view, retailers should work on this shortfall by going digital to ensure that the customer does not get lost in the middle of a process.
What used to be prime retail properties are now cheaply affordable storage spaces for any growing online business. The former scenario is as a result of the emergence of many shops and stores going out of business in the last ten years. There are significant advantages that have accrued by operating out of an ex-shop rather than a warehouse (Razin, 2007). One of the advantages is the cost related benefit. It is more gracious and more economical to run and operate former shopping spaces than more massive warehouses (Villa et al, 2016). Secondly, the location related advantage was that most shops will be located closer to transport hubs and city-centres. In this regard, they are effective locations to run any businesses from them. Location is of supreme significance within the merchandising industry. Nevertheless, the issue of location undesirability continues to be overlooked in spite of noteworthy apprehensions over the feasibility of various aspects of this multifaceted sector.
From the study and the literature review above, it is clear that the reason why people are shopping online is undeniably to achieve the satisfaction they are not getting from high street shops. Therefore, high street shops collect some of the blame associated with the decline in sales and profits. They have failed the consumer by fully not living up to their expectations. In this regard, they should restructure and embrace technology to ensure that they will have a more prolonged stay in the industry (White, Afolayan & Plant, 2014). Some shops saw the opportunity presented by the internet and opted to acts as a collection point. They are now keen and vigorous in the market. The Internet can vie as a solution to the current problems customers are facing, rather than the ultimate death of high street. To wrap it up all, e-commerce has wiped the high street at an extensive rate which is predicted to continue if the latter is not willing to change old habits and embrace technology and new trends
Reference
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