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why digital inclusion must bridge the high street divide

April 29, 2013 Darren Caveney

Tough economic times on our high streets are providing huge problems for independent retailers. Local authorities are doing what they can to help but could take advantage of digital opportunities. A new event aims to show them how.

by Alistair Johnston

If local government leaders want thriving town centres they must bridge the growing digital divide between retail chains and their town’s independents. 

 

Chain retailers are today investing millions in technology, from mobile shopping, to in store augmented reality, to advanced customer analysis. Our research for Digital High Street 2013 revealed how far these technologies are from the reality of most independents. The lead they will bring to chains in terms of customer engagement and online sales will put already strained local businesses under even greater pressure. It will be the breaking point for many.    

 

The reality is that without a sound online strategy most of your town’s independents will find it difficult to survive, let alone grow. The problem is, many don’t even know where to start. For digital inclusion to mean anything to local business, it must go beyond teaching residents to use email and a spreadsheet. Councils must find good people to engage with their retailers and teach them about social media and e-commerce. And that’s just a start. 

 

"All physical retailers will have to grasp new technology for future survival,” states last year’s Experian Town Centre Futures 2020 report, developed with the Association of Town and City Management (ATCM). “Technological innovation is changing the way we behave, particularly in terms of how we communicate, and buy goods and services. This is likely to have far reaching consequences for the way we shop and use town centres.”

 

According to both the Experian report and a recent report by IMRG, mobile commerce (or m-commerce) offers a key opportunity for independent town centre retail. Over 73% of smartphone users use their phone while shopping, and chains like Starbucks are investing heavily in smartphone apps. However our research revealed that for stretched independents m-commerce is a step too far. 

 

“Independent retailers have to grasp tablets and smartphones. The technology is now there for independents to compete, but the problem is implementation cost,” we were told by the award-winning retailer, Paul Turner-Mitchell. 

 

“Local councils spend money trying to stem high street decline, and offer grants for start-ups. That’s great, but what about their town’s small struggling retailers? I’d like to see match funding for digital development. If we want a diverse, thriving high street we need public sector involvement.”

 

In two weeks time, local government will meet with leading independents at Digital High Street 2013. Wider digital inclusion will be firmly on the agenda, and the findings will be published as an ebook. We hope this will spark debate and important decisions at government level. Without inclusive thinking now, our town centres will fall into the digital high street divide.   

 

To register for a copy of the Digital High Street ebook, join the news list here http://digihighst.com/contact/ 

 

Digital High Street 2013 is on 13-14 May in Halifax, West Yorkshire. You can read daily news and case studies at http://digihighst.com/blog/, and the full programme at www.digihighst.com.

Alistair Johnston is a high street analyst and co-founder of Redlab, an independent company producing events in social innovation. 

 

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