Retail emotional affinity
Manning Gottlieb OMD
To survive recession and the onslaught of e-tail competition, retailers need to cut through the glut of price-driven promotion and make an emotional connection with shoppers.
For many retailers, life can be difficult and somewhat depressing. In recent weeks, JJB Sports, which has been a fixture on almost every UK high street for 40 years, ceased trading with the closure of 160 stores (20 were bought by rival Sports Direct), while high-street camera chain Jessops shut down all its 187 stores and consumer electronics giant Comet has shut all its 236 stores.
How many more retailers are teetering on the brink of failure? The economic forecast in the UK and across many parts of Europe suggests that we will sadly see plenty more retailers confined to the history books. The latest economic data suggests that we will not bounce back from this recession any time soon, and may well see many more years of stagnation. This is something retailers haven't had to experience before. In the past, there have been a couple of tough years to ride out before getting back into growth again. Surviving a long period of low growth will be a challenge for retailers who are used to seeing year-on-year increases.