In our latest ‘PropTalk: Insights from Real Estate Experts’ blog, we spoke with Andrew Goodacre, CEO of British Independent Retailers Association (BIRA). In his role, Andrew represents BIRA on the Department of Business Retail Sector Council, serving as a member of the British Retail Consortium’s Policy Board.
Since taking over BIRA’s leadership in 2018, Andrew has expanded membership by nearly a third, by ensuring the needs of independent retailers are heard by government decision makers. Prior to leading BIRA, Andrew spent many years in the hospitality industry, which helped to reinforce his belief of the importance of local high streets to the fabric of local communities and their contribution to the government’s levelling-up agenda.
NextRivet: Since you primarily work with independent retailers, how have you seen smaller businesses stay competitive with larger competitors in the space? Especially in terms of fulfilment capabilities offered and technology solutions available?
At BIRA, 95% of our members are shop owners. During the COVID-19 pandemic, we saw a shift in attitude from many independent retailers that we work with, regarding their attitude towards e-commerce and retail technology. Prior to the pandemic, I think many saw the internet as a real threat. But when physical shops were closed, online became the only way to sell, and so it was embraced as an opportunity for these retailers to stay in business during a global shutdown.
However, I think investment in technology by smaller retailers is still limited, as many of them remain focused on local shopping and being the best retailer in their subsector. Many will still only view competition within 15 minutes of the shop. I think there is also a cost issue of technology with many smaller retailers not willing to take the risk.
Independent retailers remained competitive by adopting e-commerce strategies during the pandemic, and continuing these afterwards. But, in terms of mass-fulfilment strategies or global shipping, they remain focused on their local communities.
NextRivet: As CEO of BIRA, what are some key trends that you have noticed when retailers and retail real estate owners are looking to optimize commercial spaces? Are smaller locations relying on technology similarly to larger commercial real estate?
The use of commercial space on high streets or in shopping centers is changing. This is undeniable. Retail used to be the dominant service offered in these destinations, but not any more. We are seeing shops close, then be replaced by leisure and hospitality opportunities. These are what I like to call ‘service retailers’, as they utilise the space to offer an experience to customers.
In the UK there is a general acceptance that there is too much retail space, and some of the larger units have remained empty for quite some time. While this is happening, the UK has a housing crisis. It makes sense therefore to regenerate areas by ensuring there is a mix of commercial and residential so that local economies can thrive. It also helps transform these retail spaces into community hubs. By bringing people closer to retailers, we actually help drive sales.
In terms of the use of technology, there is no doubt that large retailers are more readily exploring the opportunities as they look to increase productivity. At times this is at the expense of person-to-person contact and strong personal service. This sacrifice, of a more personalised experience, may be the answer to how smaller independent retailers can compete.
NextRivet: One of your key priorities at BIRA, driven by your previous experience in the hospitality industry, is to ensure high streets are ingrained into the fabric of local communities. In your opinion, how can retail real estate owners establish this sense of community while filling leases?
We need to curate places in town centres and high streets that are diverse, inclusive and safe. Retail, hospitality, culture, leisure, green space and residential. These are not mutually exclusive objectives but all very dependent on each other if the ‘place’ is to thrive.
The reimagining of commercial spaces we have seen over the last couple of years has been incredibly positive for this. As consumers demand more from their retail spaces, we have seen these sites flourish into central pillars of the community.
NextRivet: Do independent retailers rely more on in-person shopping than larger retailers? Should this inform retail property owners strategy?
Yes, this is in some ways the USP for the independent retailers. Since COVID restrictions ended in July 2021, the penetration of online sales as a total of UK retail sales has consistently fallen. This indicates that we started to undervalue in-person retail too soon. People still enjoy going to the shop to see products, especially if it is for a bigger purchase.
The search for certain products or services probably begins online, but consumers will often enjoy going into the shop to finalise their decision. With that in mind, the challenge for the independent retailers is to make sure that they are found in the searches. With larger retailers employing analytics teams, sometimes it can be difficult to be one of the first options to come up in a Google search.
NextRivet: Last question, what keeps you up at night?
The obvious answer that hangs over all of our heads: remembering to respond to emails!
Seriously though, I really admire people who have the spirit and courage to start their own business on a high street. I want these people to succeed and be rewarded for their bravery. This is what drives me to ensure that myself and BIRA personally have done all we can to help them succeed.