Having packed away the last of the decorations, attention immediately turns to the performance of the retail sector, so often a barometer of how the nations’ financial health is perceived. This year perhaps these figures will be looked over more intensely as we not only analyse footfall but the rapidly changing buying patterns so graphically highlighted by Black Friday and the relentless online 24 hour sales campaigns that have ensued in the weeks that followed.
It is predicted that by 2020 34% of retail sales will be online compared to 14% today. Growth of e-commerce will be at the expense of physical stores particularly those in marginal shopping locations.
By 2020 it is predicted that there will be a 27% decline in sales from stores resulting 31% fewer High Street stores. However prime/destination venues such as Westfield will thrive. Retailers will explore how they can best optimise their store portfolios in this multichannel age.
In summary, as we start 2016, these changes add up to retailers and their employees facing unparalleled pressure to change. Career Directed Solutions is already working with retailers and their staff to effect this change in terms of:
- leading change
- focusing on changing career paths, and
- assisting those leaving the sector to find exciting
When Sir Mike Darrington left Greggs one of his most notable achievements was that throughout a period of sustained change there were only 150 redundancies through a highly successful period of transition. It is unlikely this ratio will be repeated by retailers in the months ahead as the effect on human resource will be high.
Henry Armstrong, Director Retail Sector, Career Directed Solutions
