As M&S reports a sharp drop in annual profits, Berkeley Partner, Dave Machin, talks to Drapers about the challenges facing the UK’s high street.
Dave Machin, partner at management consultancy The Berkeley Partnership, says that mid-market brands are suffering: “Online spending is one of the biggest challenges currently facing retailers, and it comes not just via ecommerce – services such as Netflix and Spotify are also taking some of the money that was being spent on the high street.
“However, it seems that the mid-market is being hit hardest. The low-price-point and high-end retailers are generally reporting flat like-for-like sales.”
Machin believes that to compete retailers such as M&S will need to break down barriers between stores and online, which may lead to an increase in “smart” experiential stores.
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