Mark Casci: Struggling high street stores should look to supermarkets for inspiration

Sure, fashion giant Next last week posted worse than expected figures for the Christmas period and warned over “hard times” in the next 12 months.

The news was followed within hours by BDO’s latest analysis of high street activity which showed a poor end to a dismal year of trading and the fourth consecutive December with no high street sales growth.

Its data also showed that online sales had rocketed in the week before Christmas, up 51.1 per cent for the week – a figure not beaten since the first week of 2015.

And, with costs set to increase thanks to increases in commodities and wages the picture is not looking to rosy.

Sophie Michael, Head of Retail and Wholesale at BDO LLP, said: “With such a weak base for December 2015, any further decline can only be seen as a poor result for retailers.

“Coming at a critical juncture, this fourth negative December in succession highlights the magnitude of the challenge that lies ahead for 2017, when consumers will more keenly feel the bite of inflation and a falling pound.”

The last four years have seen some of country’s biggest names in retail go to the wall or massively reduce their operations, with BHS and Woolworths consigned to the history books and HMV a shadow of its former self.

However this week we are likely to see a slightly different picture emerging from some of our mainstays.

Marks & Spencer, for so long viewed as a barometer of the UK retail market, is now widely expected by most analysts to report that the long-awaited recovery to its clothing arm has begun, with the firm expected to report its first overal sales growth in nearly two years.

On the same day we will hear from M&S we will also see results from John Lewis, Mothercare, Debenhams and Primark and then truly begin to get an understanding of where our high street lies, with the former highly likely to report a strong boost in sales, aided an abetted in no short order by the massive success of its new Leeds store at Victoria Gate.

So why are some high street brands getting it so right and others so wrong? The answer lies in one tried and tested area - namely that of customer service.

Those that make life easy for the consumer, those that offer first class online and instore service will be the ones that prosper.

In the world of retail today consumers are spoilt for choice, being able to take their pick of what the world has to offer from their laptop, smartphone or tablet.

The likes of Amazon and Asos will deliver to wherever the shopper wants within in some cases just a few hours. There’s no secret of the fact that in today’s climate the consumer is king and queen, and those retailers that serve as loyal courtiers will be those that avoid the chopping block.

For proof, look no further than the supermarket industry. For the past few years these once unstoppable retail juggernauts have endured twin pressures of the march of the discounters and the rise of online shopping.

However by taking the former on at their own game and embracing online retail they have put the customer at the heart of their business model, a method which has delivered success since the dawn of capitalism.

Morrisons is expected to be one of the big Christmas winners in this week’s trading updates, a prospect unthinkable even a year ago.

Its founder Sir Ken always said that the secret to retail success was “value”, ie good products at good prices.

In 2017, an extra dimension is added to this proposition, namely that of convenience.

Will it be easy? No.

But the road map is there for those who wish to succeed.