High-street stars enter stage right

The success of internet selling has altered the shopping landscape,forcing brands to adapt as they compete for customers' cash. There are several approaches but one thing is certain - understanding the importance of retail theatre is becoming crucial.

The Westfield Stratford City shopping centre in east London houses, among others, more than 300 shops and 70 restaurants. Facundo Arrizabalaga / AFP

What do home-baked cakes, student nights and classic films shown on a big screen have in common?

The answer is they are all tricks used by British retailers to convince customers it is worth visiting their shops.

The huge success of internet shopping means retailing is undergoing a profound revolution.

What most experts agree on is customers now need to be given a reason to get off their sofas and come to the stores - whether as an experience, a leisure activity or merely for (almost) instant gratification.

Phil Wrigley, a retail veteran who is now chairman of Majestic Wine and property developer LXB Retail, forecast recently that by 2025 shopping malls and leisure centres across the world would converge to become "leisure villages in which we take brief holidays".

He argues internet shopping will cause retailers to operate "fewer, bigger stores" focused on providing experiences for customers.

Land Securities, one of the Britain's biggest developers of shopping centres, refers to this as the biggest shift in retailing since the industrial revolution.

"We expect that by 2020, 20 per cent of sales will come from the internet," says Lester Hampson, the company's head of retail development. "That can be seen as either a threat or a challenge for shopping centres.

"With a good transactional website, a retailer really only needs 100 stores to cover the UK. This means that some of the secondary town centres will be under immense pressure. Retailers want fewer, better-located stores."

In Land Securities' new Leeds shopping centre in the north of England - which is being built next to the city's office quarter - a fifth of the space is slated for restaurants and catering outlets. That is double the amount of catering space such a centre would have had five years ago.

"Restaurants increase the dwell time that shoppers spend in centres. It changes shopping from a chore to a leisure experience," says Mr Hampson.

Developers are thinking beyond the bland "food court' offer and bringing in independent restaurateurs and deli food outlets as well as the recognisable chains.

"One of our main inspirations is markets," he says. "We constantly look at what makes markets so attractive to people.That means an eclectic mix of food offerings, even a street-food element, but it needs to be of the highest quality."

The Leeds scheme also has a cinema, a bowling alley and a gym.

"We are providing reasons for people to come",which is particularly important in times of austerity, says Mr Hampson. A single car journey to a shopping centre can combine shopping with a full day out.

Providing the customer with reasons to return is now core to the retailing business in the United Kingdom, from the trendiest stores such as Abercrombie & Fitch to the high-street stalwart, Marks & Spencer.

Last year, M&S introduced a new look in 15 pilot stores, which was designed to make its clothing brands easier to find and also featured upgradedfood halls with artisan bakeries, deli counters and international food brands.

According to a spokesman, stores with the new look have performed 2.5 per cent better and have achieved higher rates of return than other stores. The refurbishment programme has now been rolled out to 92 more shops, representing 15 per cent of the group's space.

For its part, John Lewis has also been refurbishing stores. Last monthit unveiled a new 4,000 square foot beauty hall in its London storeon Oxford Street, which showcases premier brands as well as many other niche products.

The £8 million (Dh45.7m) revamp followed a successful introduction of a food hall in its flagship store several years ago, where traditional fresh fish and meat counters were located alongside a lavish cheese room and bakery.

The retail group is even looking to bring travel agents into its stores, in a tie-up with the luxury holiday operator Kuoni as a way of offering the customer more.

Revamping and redesigning property is expensive but even smaller independent shops can think hard about promoting their businesses and bringing customers back for more, says Kate Hardcastle, an independent consultant who advises businesses on "retail theatre".

One piece of retail theatre Ms Hardcastle loves is in the fashion retailer Anthropologie's branch in New York's Tribeca neighbourhood.

"I was greeted by the assistant serving her homemade cakes. It was very easy and personable and homely. They really know their customer," she says.

Lush, a seller of natural beauty products, stacks its scented soaps and bathing treats like fruit in a market. Their sales material is hand-written, often chalked up on blackboards and is unique to each store.

"It would be far easier to mass-produce their point-of-sale information but this way the personality of the brand comes through. The staff are saying,'We've tried this and tested it.' They are ambassadors for the products," says Ms Hardcastle.

Disney has also completed a successful retail relaunch. According to Ms Hardcastle, the company has now embraced the fact that its customers are children. So stock is placed at child's height and stores are themed around characters, rather than organised in a logical "adult" way.

Apple stores are often held up as a model of successful shopping "experiences". Some customers spend hours there looking to play, learn and buy. Staff are all passionate about the products and can speak comfortably to tech-literate customers, as well as those less savvy.

But Ms Hardcastle has a pertinent criticism.

"Their crowd management needs to be looked at urgently," she says. "At certain times of the weekend, you can't get near the products. If someone is looking to buy, that's a real turn-off and they are often walking out of the door."

It is not always clear if Apple'sstores are showrooms, drop-in clinics or collection points, she says.

Retailers and property owners are struggling to define what the stores of the future will be.

In the GCC, where developers have relied on building bigger and better stores to attract shoppers, it may be that bringing a human or individual touch back to retail is the way forward.

Only one thing is clear: if you're in retail, it's no longer enough just to have stores.

As for the customers: they may be sniffing the air for homebaking or checking out their fellow customers.

What they're not doing is just shopping.

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