The retail landscape has changed significantly over the last 10 years and is set to evolve rapidly over the next decade too. Many factors have contributed to this situation but the main advance has been the growth seen in online retail commerce.
Online Retail Commerce during next 10 years
It is predicted that by 2028, 53% of all retail sales will be made online which is an increase of around a fifth of what it is now. As the next generation known as Gen Zs merge into adulthood, the expansion of ecommerce is only set to grow further. Whilst our generation has forcibly sought to morph and understand the current digital era, in contrast the Gen Z generation from a very young age has grown up in a familiar digital world and are fully accepting of it. This generation knows how digital works and already has visions for how they want it to work in the years ahead. How these ideas transpire into job roles and entrepreneurial ideas of the future will create a whole new and exciting revolution in digital online retail commerce. Embracing cryptocurrency and adopting AI opportunities means that we are only at the very beginning of the next digital era.
In a recent article by The Guardian -“Half of UK retail sales will be online within 10 years”, the editorial quoted, Richard Lim, of Retail Economics “Successful retailers have always had to reinvent themselves to stay relevant. However, the pace of change will inevitably prove too fast for many. It definitely feels like the digital retail revolution is only just getting started.”
We are all too well aware of the recent media reports regarding Topshop owner’s Arcadia who has become the latest predominantly high street retailer to close stores and renegotiate rents to prevent the business going into administration. Across the UK, landlords are being asked to re-evaluate their rents and councils are being urged to re-assess their business rates to prevent more towns and cities from becoming redundant.
They say that we have a housing shortage so are retail shops the answer?
It has been argued that 5to create a more sustained and successful outlook for the high streets, owners of high street properties which are rapidly becoming brown-field sites should be seriously considering changing building uses into multi-occupancy housing. By driving the community back into the centre of towns and cities, the retail sector would have a more improved opportunity to thrive once again. If young people and families live in towns and cities where shops are on their door-step they are more likely to use them in conjunction with their choices of online retail commerce. This means, that online retail commerce still has its place, but offers a situation whereby it can work in harmony with physical retail.
In addition, walking to a shop rather than getting into a car will not only improve fitness and wellbeing but will also be more environmentally friendly, surely this is a win, win situation for everyone.
Here at Crendon Insurance Ltd, we support local businesses throughout the UK who operate in online retail commerce and the traditional retail sector. To find out how we can support your company against liability of employment, stock, delivery and dropshipping or buildings and construction insurance through re-generation, please contact our insurance team for further details.
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