URL to IRL - Is the high street back?

After 10 years of online commercial success, Gymshark finally opened its first physical location in October 2022, on Regent Street in London; one of the most impressive high streets in Europe – making it certainly one of the more impressive locations for a business's first shop.

It is unusual for a business of such a magnitude to not have a physical location to sell its products, especially for a clothing and apparel company, but is this a growing trend?

E-commerce is widely defined as ‘the trading of goods and services on the internet’, and this was the strategy of Gymshark and many other businesses over the past few years. The main business that helps beginner e-commerce businesses is Shopify. They provide people with customisable website design templates, and a place to manage their online store, plus they also handle things such as transactions, payments and even marketing if you so require.

Ben Francis, the founder of Gymshark, quoted Shopify as one of his main sources of inspiration for help, specifically their owner, Harley Finkelstein. Francis states that he is the only person outside of Gymshark that he would go to for advice, and “a lot of the problems we’ve (Gymshark) faced, Shopify has had similar problems in the past.” This will have certainly aided Gymshark in their early years, as they have a platform to provide them with everything that they need to be successful, but they can also give them a helping hand when necessary.  

Shopify is a huge reason why plenty of newer businesses do not try and brave the high street when they first open. Because why would they? The monetary risk is much easier to manage online. £1 a month for the first three months is enough to convince anybody to bite. The pricing plans range from £25 per month to £344 per month for more advanced business services, which are all significantly cheaper than the costs of setting up on the high street. Especially with the current cost of living crisis, many small businesses in towns and villages have been forced to close due to not being able to prices of rent, gas, electricity etc all spiking massively.

Other businesses offer businesses the platform to sell online to an already established audience such as eBay, Etsy, Redbubble, Vinted, and the main giant, Amazon. Amazon is the king of e-commerce. As the name and logo suggest, they sell everything from A-Z, and their prime service which offers next-day delivery offers an incentive and can give new businesses the leg up they need to get off the ground (read our blog on Amazon to find out more). Selling on these sites has similar impacts to that of franchising, as these new businesses can capitalise on the name, success, and consumer trust of the site to get more sales and avoid scepticism and be protected from scams etc.

COVID-19 damaged the high street massively. Forcing businesses that were deemed huge such as Topman, Debenhams and Cath Kidston were all put into administration because of lockdowns and being forced to close to the public. Since then, Topman, along with many others, have moved strictly online. Among many others, they have moved their brand to online giant ASOS, in a similar move to what new businesses do on eBay etc. But they have the privilege of being a previously known larger brand, which gives consumers confidence when buying their products. These businesses going into administration when COVID hit was a reality check for lots of large businesses. Planning for the worst-case scenario is often needed, and banking on that not happening is extremely risky. It seems that the best strategy for a business selling products is to have both an online and at least one physical location. This may not always be a viable option, and so assessments need to be made for the positives and negatives of each side.

Now we have (fingers crossed) seen the back of COVID, people are desperate to do as many experiences and get out as much as possible, to make up for the lost years. Gymshark Regent Street is a key example of this, as they have seen huge success with constant queues to get into the store. They have also developed their presence, and it is not just a store. You can book yourself into their ‘Sweat Room’ for a workout and even grab a post-workout shake made fresh inside the store. It is certainly an experience, having seen it first-hand, it is definitely worth the hype. 

So, is the high street not dead after all? Has it seen a revival?

2006 was a massively different time, and then, only 2.8% of retail sales were online, showcasing the utter dominance of the high street. This stat peaked at 37.8% during the height of the pandemic in January 2021 but has since stabilised at levels around 26% as of October 2022. Age plays a large factor in this too, as 18% of 25-34 year olds who were questioned about the topic ONLY do their shopping online, which is a large shift from the past.

But 82% of total respondents said that they would choose to do their shopping online if given the choice between that and online shopping, showing there still is room for both. This is also strengthened as in July 2021, it was reported that local areas rather than cities will see 17,000 shops enter their high streets, as people now hybrid working (in person and at home) means that people want things closer to home as they aren’t always in the city.

So, what is the best option? In-person physical locations, with no delivery fees, easy returns, changing rooms etc; or online, with easy accessibility, easier-to-find bargains and more. 

The head says both, but businesses without the facilities to do so need to make that choice.

What are your thoughts?