Bill Taylor: Changing face of our High St as future of retailing becomes uncertain

Bill Taylor

A walk down Dannevirke's High St shows some tough times for parts of the retail sector in our town. I would venture to say walk around many retail areas in New Zealand or globally and similar signs of stress would be evident.

While the past few years have seen economic growth they have also seen the demise of many retailers from the big names downwards.

The easy answer is to blame the growth of online retailing. Certainly in recent years online retailing has become more attractive with better websites, mobile apps and has become more user friendly with features like easier returns policies.

Digging a bit further we can find more subtle reasons why bricks and mortar retailing is struggling.

In days gone by when we were considering purchasing an item we would frequently go from store to store comparing products and deals. As we did this other items would attract our attention and either be purchased or go on a wish list for future purchase.

Nowadays we are more likely to let technology do the work and have thoroughly researched our options on the internet before travelling directly to the store our research has pointed us toward.

The internet has also seen a rise in second-hand trading platforms ranging from Trade Me to local buy and sell groups.

The majority of retail areas and malls were developed many years ago when retail was quite different. Many shops no longer carry the same levels or type of stock that require the large floor areas that were needed in the era they were built.

For years self help experts have told us the road to happiness comes from enjoying experiences rather than accumulating material possessions. It may be that more people are now listening to this advice and this has been part of the cause of the growth seen in the hospitality and travel industries.

More subtly consider the growth of social media. Here there are abundant posts of people having a great time, these opportunities seldom exist in a retail store.

Retailing continues to become more competitive. Small changes to the minimum wage and rents can see many business models become unprofitable. This can cause a domino effect as one retailer closes and reduces the foot traffic to its neighbours who in turn suffer and fail to maintain profitability.

The future of retailing remains uncertain but it is highly likely that it will be hugely influenced by the rise robotics and driverless vehicles. Before you think this is years away, fast operator Domino has been working on drone delivery of its pizzas in New Zealand since last year.

Whatever the future is we can be assured it will be nothing like the past and probably nothing like we can currently imagine.

*Bill Taylor is a Dannevirke
accountant and businessman with extensive experience in these fields. He is an active member of the community having sat or currently sitting on several boards and committees.

*The opinions expressed in this article are those of the author. Professional advice should be taken before acting on any matters relating to the contents of the article. No liability is assumed by the author, any organisation to which he is connected or the publisher for any losses suffered by any person or organisation relying directly or indirectly on this article.