In a changing consumer world, retailers are being forced to think outside the box and come up with new ways to increase footfall. This is especially challenging for smaller retailers, with high rents and business rates often stripping back any profits their business makes and forcing them to seek other routes to success than the traditional high street store format.
Perhaps, for those struggling to attract passing trade, taking a unit in a transportation hub is worth considering. In the third quarter, figures from National Rail show that rail station retail spending grew by 4.74 per cent when compared to the July – September period in 2012.
This compared extremely favourably to the high street’s performance which, according to the British Retail Consortium (BRC), saw only a 1.5 per cent growth in sales during the same period.
Furthermore, the success of train stations was fairly evenly spread throughout the country, whereas high street figures tend to peak in London and the south east. King’s Cross performed best in the retail sales category with a 28.4 per cent growth posted, perhaps in part due to the recent refurbishment and development, while Edinburgh Waverly and Manchester Piccadilly followed close behind with 13.1 per cent increases apiece.
Retail commercial director for Network Rail, Hamish Kiernan, believes that train station retail growth offers retailers more options when it comes to trading.
He says; “The huge growth in sales at King’s Cross, where the new western concourse has given people a much wider choice of food, drink and retail brands, shows that investment in bigger, better stations can benefit passengers, businesses and the wider public.”
Setting up shop in transportation hubs is by no means a new technique, as for some time retailers have recognised the advantages of having a high daily footfall from which to attract passing trade.
In fact, some retailers have been known to eschew the high street entirely in favour of taking up units in transportation hubs – the most recent example being Tie Rack, which is in the process of closing down all high street outlets yet wishes to retain its place in airports around the country.
Convenience for consumers is another major boon when considering relocating a business to a busy commuter station, especially for those selling groceries or small gift items. This has been demonstrated by Asda, which last month launched a click and collect grocery service in the car parks of four busy London Underground stations and has so far seen positive results.
In the highly transitional retail industry, staying ahead of the game can mean the difference between success and failure of a new venture. With stations now outperforming the high street in terms of growth, retailers seeking alternative options may well wish to consider looking into the availability of units at their nearest large commuter platform.
