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UK retail competitors shake hands to keep afloat in face of the menacing online medium

Thursday 10 March 2016 11:29 CET | News

UK retailers are partnering with their rivals in order to put on shelves fashion brands from competitors to fill empty spaces caused by the online sales uptake.

In a shift in strategy aimed at making the space profitable and avoiding store closures, retailers such as Tesco have also started experimenting with gyms and children’s play areas, Reuters reports, cited by jinsight.com.

The brands have 20,000 square feet of the store’s 120,000 sq. ft., replacing space previously taken up by Tesco’s toys, stationery and technology offer, some of which are now only available on its website. In the four months since the brands went in, shopper numbers at the Woolwich store have risen.

A Tesco spokesman said the changes at Woolwich were illustrative of Tesco chief executive Dave Lewis’ strategy to turn around the business, giving shoppers more choice so they start to see superstores as the most convenient way to shop again.

“We are always looking at new ways our stores can meet the needs of local customers. We’re pleased with the feedback from customers in Woolwich who tell us they like the store’s convenient range of fashion options,” he said.

Thousands of small shops have disappeared from UK towns in recent years, unable to compete with the lower costs and prices of online outfits and bluechip retailers such as Tesco and Marks & Spencer could join the exodus.

Online sales in the UK, as a percentage of total sales, rose to 15.2% in 2015 from 13.5% in 2014, according to the Centre for Retail Research, compared with 11.6% in Germany, 8.0% in France and just 2.5% in Italy.


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Keywords: UK, retail, competitors, deal, online medium, increase, rival, online sales, online platforms
Categories: Payments & Commerce
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Payments & Commerce