High Street 2020: Apple stores and glorified post offices

Stephanie Clifford of the New York Times reports on the growing trend of retailers using their brick-and-mortar stores to gain an advantage over online-only shops like Amazon, taking advantage of easier delivery, more comforting payment mechanisms, and the ability to browse:

In April, Walmart began allowing shoppers to order merchandise online and pay for it with cash at a store when they picked it up.

Even without the cash option, in the six years since Walmart has allowed online items to be picked up in stores, customer demand has been high. More than half of the sales from Walmart.com are now picked up at Walmart stores, Mr. Anderson said.

With the cash option, Walmart was trying to appeal to customers who did not have bank accounts or credit cards. Walmart says the majority of in-store purchases are made with cash or debit cards, and that about 15 percent are made with credit cards.

Retailers have varying motivations for doing this. Clifford discusses the Container Store, an American chain that sells containers (brand simplicity, there):

The Container Store has also been pushing a drive-through service, a reflection of its altered approach to online shopping. Initially, executives viewed the pick-up-in-store feature as a way to draw consumers into stores and encourage customers to buy more. Now, they would rather close the deal on an online order as soon as possible so shoppers do not go elsewhere or forgo the merchandise altogether.

The piece ends with Alison Jatlow Levy, a retail consultant at management consultants Kurt Salmon predicting a convergence, with physical stores moving more and more towards a "showroom" model, and online-only retailers opening stores for the same purpose.

That may be the case in the medium-term, as the two styles of retailing meet at an equilibrium, but it seems unlikely to last. A physical location is a tremendous fixed cost to run, and while Clifford gives many stories of tangential benefits from doing so, none of them seem game-changing. If a business already have a chain of stores and a website, merging the two in the many ways described seems like a no-brainer. But if it doesn't, it's hard to see how the bottom line would actually be affected in any way but negatively.

What seems more likely is that as many of the benefits which can be abstracted from the cost of running a shop will be. As Felix Salmon points out, there are advantages to retailers in being able to take cash payments, even for online orders, and having somewhere to ship bulky goods for collection seems to be popular as well. But both of those things require little more than a posh version of the Post Office; somewhere which can handle the more methodical side of the transaction for a number of businesses at once. And such companies already exist.

All that would leave is the showroom aspect of the physical store. Can any company gain enough extra sales through physical viewing of items to make up for the extraordinary increase in cost? There are probably a few categories where the answer is yes.

The most obvious is products that are already sold in showrooms due to the high cost of the goods: cars, boats, motorbikes and so on. Things which people really need to see and touch before buying, and which are so valuable that a single sale can make a day. There's a second advantage as well, which is that cars are so bulky that the showroom essentially doubles as the warehouse. A car retailer which decided to move online only would still need to have physical premises almost as large, just not in quite as expensive a location.

Clothes are the other clear winners. People still really like being able to try on things before they buy. But the problem for many retailers is that you can go to, say, Office to try on some shoes, then buy it from a cheaper retailer online. Office loses a sale, but still pays for the advertising.

The solution to that is retailers like Apple. Famously, the company doesn't care if people go into their shops purely to use them for the free internet; their aim is to get as many people using Macs, iPads and so on as possible. That doesn't mean that it isn't relentlessly sales focused – it is – but if, at the end of a trip to an Apple store, you go home and buy a MacBook from Amazon, it still gets the sale. Apple stores are just as much about advertising as retail.

It doesn't paint a particularly rosy picture for the high street of the future – lots of high-end, single-brand stores peppered with glorified post offices – but it's probably better than the alternative thesis, where everything becomes a coffee shop.

A Meerkat posts a letter. This definitely relates to the content of the article. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Getty
Show Hide image

The joy of only winning once: why England should be proud of 1966

We feel the glory of that triumphant moment, 50 years ago, all the more because of all the other occasions when we have failed to win.

There’s a phrase in football that I really hate. It used to be “Thirty years of hurt”. Each time the England team crashes out of a major tournament it gets regurgitated with extra years added. Rather predictably, when England lost to Iceland in Euro 2016, it became “Fifty years of hurt”. We’ve never won the European Championship and in 17 attempts to win the World Cup we have only won once. I’m going to tell you why that’s a record to cherish.

I was seven in 1966. Our telly was broken so I had to watch the World Cup final with a neighbour. I sat squeezed on my friend Colin’s settee as his dad cheered on England with phrases like “Sock it to them Bobby”, as old fashioned now as a football rattle. When England took the lead for the second time I remember thinking, what will it feel like, when we English are actually Champions of the World. Not long after I knew. It felt good.

Wembley Stadium, 30 July 1966, was our only ever World Cup win. But let’s imagine what it would be like if, as with our rivals, we’d won it many times? Brazil have been World Champions on five occasions, Germany four, and Italy four. Most England fans would be “over the moon” if they could boast a similarly glorious record. They’re wrong. I believe it’s wonderful that we’ve only triumphed once. We all share that one single powerful memory. Sometimes in life less is definitely more.

Something extraordinary has happened. Few of us are even old enough to remember, but somehow, we all know everything that happened that day. Even if you care little about the beautiful game, I’m going to bet that you can recall as many as five iconic moments from 50 years ago. You will have clearly in your mind the BBC commentator Kenneth Wolstenholme’s famous lines, as Geoff Hurst tore down the pitch to score his hat-trick: “Some people are on the pitch. They think it’s all over. It is now”. And it was. 4 - 2 to England against West Germany. Thirty minutes earlier the Germans had equalised in the dying moments of the second half to take the game to extra time.

More drama we all share: Geoff Hurst’s second goal. Or the goal that wasn’t, as technology has since, I think, conclusively proved. The shot that crashed off the cross bar and did or didn’t cross the line. Of course, even if you weren’t alive at the time, you will know that the linesman, one Tofiq Bakhramov, from Azerbaijan (often incorrectly referred to as “Russian”) could speak not a word of English, signalled it as a goal.

Then there’s the England Captain, the oh-so-young and handsome Bobby Moore. The very embodiment of the era. You can picture him now wiping his muddy hands on his white shorts before he shakes hands with a youthful Queen Elizabeth. Later you see him lifted aloft by his team mates holding the small golden Jules Rimet trophy.

How incredible, how simply marvellous that as a nation we share such golden memories. How sad for the Brazilians and Germans. Their more numerous triumphs are dissipated through the generations. In those countries each generation will remember each victory but not with the intensity with which we English still celebrate 1966. It’s as if sex was best the first time. The first cut is the deepest.

On Colin’s dad’s TV the pictures were black and white and so were the flags. Recently I looked at the full colour Pathe newsreel of the game. It’s the red, white and blue of the Union Jack that dominates. The red cross of Saint George didn’t really come into prominence until the Nineties. The left don’t like flags much, unless they’re “deepest red”. Certainly not the Union Flag. It smacks of imperialism perhaps. In 1966 we didn’t seem to know if we were English or British. Maybe there was, and still is, something admirable and casual about not knowing who we are or what is our proper flag. 

Twelve years later I’m in Cuba at the “World Festival of Youth” – the only occasion I’ve represented my country. It was my chance to march into a stadium under my nation’s flag. Sadly, it never happened as my fellow delegates argued for hours over what, if any, flag we British should walk behind. The delegation leaders – you will have heard of them now, but they were young and unknown then – Peter Mandelson, Trevor Phillips and Charles Clarke, had to find a way out of this impasse. In the end, each delegation walked into the stadium behind their flag, except the British. Poor Mandelson stood alone for hours holding Union Jack, sweltering in the tropical sun. No other country seemed to have a problem with their flag. I guess theirs speak of revolution; ours of colonialism.

On Saturday 30 July BBC Radio 2 will commemorate the 50th anniversary of the 1966 World Cup Final, live from Wembley Arena. Such a celebration is only possible because on 16 occasions we failed to win that trophy. Let’s banish this idea of “Fifty years of hurt” once and for all and embrace the joy of only winning once.

Phil Jones edits the Jeremy Vine Show on BBC Radio 2. On Saturday 30 July the station celebrates the 50th anniversary of the 1966 World Cup Final live from Wembley Arena, telling the story of football’s most famous match, minute by minuteTickets are available from: www.wc66.org