HOW TECHNOLOGY CAN COMBAT THE RECESSION

This year has seen the worst performance for High Street Retail since figures began.  Shops all over the UK are closing down, with many businessmen citing the Recession as the primary cause.  And although the current economic stagnation can be viewed as an influential factor, it should maybe not be viewed as the sole cause of the problem.

Could the utilisation of the Internet save High Street Retail?

Inability of business owners to adapt to changing economic times could also be seen as a major contributor.

     Over the past decade the explosive growth of the internet has changed the way in which we shop.  High street stalwarts including Woolworths have disappeared, however instead of learning from their demise, retailers who refuse to consider utilising new technologies to compete risk the threat of liquidation.

     Only stores including John Lewis and Marks & Spencer are bucking the trend, however this seems to be because their management understood that the only way to progress was to embrace the technological changes which were and are occurring within the industry.  Even then, M&S were only forced into adopting a forward thinking approach after their sales plummeted almost a decade ago.

     Both John Lewis and M&S realise that although their brands already receive widespread recognition on the High Street, only through utilising new mediums of communication can they sustain continued profitability.

     Over the past decade the speed of globalisation has increased tremendously, giving consumers the opportunity to purchase their goods from a variety of different outlets from across the world.  In many instances, businesses which have embraced the technological revolution have seen their profits increase.

     However, as many High Street retailers are now finding to their cost, a refusal to adopt a strategic view as regards to new technologies has reduced their overall competitiveness.  The onset of the Credit Crunch has simply sped up a process which was already present.  High Street retailers must now fully embrace recent technological developments if they are to possess the flexibility to survive.