Future of Retail Business Models Research Team Dr. Jonathan Reynolds, Elizabeth Howard and Christine Cuthbertson, The Oxford Institute of Retail Management, Said Business School, University of Oxford Objective Examine how retail business models (both company and format) will change over the next 10 years. What opportunities and difficulties will these developments present for the UK shopping centre industry?

Project Report Future of Retail Business Models > Download Executive Summary > Obtain the full report Press Releases RETAILERS MUST EVOLVE OR DIE – STARK CONCLUSION OF BCSC RESEARCH 20/03/07 RISK AVERSE RETAIL LANDLORDS COULD KILL THE GOOSE ACCORDING TO BCSC RESEARCH 20/03/07 HOW TO GET AHEAD IN RETAIL: BCSC RESEARCH SHOWS THE WAY 20/03/07

Background to the research

This project is focused upon the changing nature of retail formats and companies and how these changes will impact the UK shopping centre industry. The research will draw upon existing knowledge and expertise of retailing, in the UK and beyond, to produce a scenario of retail change in the next 10 years. A range of factors that impact upon retailing will be evaluated and the impact of these changes, on retail business models and store formats will be described. Analysis will provide an interpretation of how these changes in retailing will impact the UK shopping centre industry.

Questions the research must answer

• What are the current trends in retail business models and how might these develop, e.g. increasing use of multi-channel approach, growth in market share of grocers, resurgence of department stores
• How are store formats changing, e.g. trend to larger formats?
• Is the decline in the share of sales due to independent retailers accelerating?
• What, if anything, can conventional retailers learn from the informal retail economy such as ‘ebay’ and car boot sale traders?
• What are the implications of such changes for the shopping centre industry, ie changing type of space requirements e.g. location, size etc.
• What are the economic factors that are driving change in retail businesses, e.g. cost inflation, price deflation, margin squeeze, floorspace productivity growth, opening hours, supply chain improvement, overseas sourcing etc, and how
  will changes in these factors impact retail developments.
• Internationalisation – how does the UK stand as a host market to foreign retailers, which types of retailers are likely to enter the UK and what impact will this have on domestic operators and the sector in general as well as on the shopping centre industry. What opportunities are there for UK retailers to invest internationally and what impact will this have on their domestic businesses?
• Are there any new types of retail business or store format we are likely to see emerge?
• What impact will the internet have on retailing? This will be covered in much more detail in the project concerning on-line retailing but is also part of this project.
• How important to retailers’ bottom line is the transition from selling goods to providing experiences?