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Market Context
Market Context
13th most
visited retail
centre in the
UK (8*).
YOUTH AND ELDERLY
CONSUMERISM
THREADS
‘
‘Covent Garden proves that not even a
West End, London location guarantees
success if not managed carefull
y’.
’
RetailWeek
Despite Covent Garden’s effort to stand out in a competitive retail field and encourage Londoners back in the neighbourhood, the borough is ranked as only
13th most visited retail centre in the UK. Such failure is explainable by several
factors:
Economy Crisis
The current hostile financial era in the UK and in the Western society in general, has encouraged a majority of people
to reduce superficial spending such as the ones related to
fashion and leisure. Many people still consume but in a more
conscious fashion, cutting back on spending, waiting for in
store sales or downgrading to Value Retailers such as Primark (leading fashion retailer in the UK) or Asda. Following the
market positioning of Covent Garden as entry-level luxury, the
current offer of the area lacks of possibilities for the average
consumer to shop at their favourite retailers. Within the top 15
fashion high street retailers, only three brands are represented
in Covent Garden (Zara, H&M and TK Maxx). The arrival of TK
Maxx in 2013 has marked a clear change in direction for retail
strategy of the area and will most likely mark the start of implantation of other successful high street stores to the neighbourhood in order to accommodate the general demand for
cheaper product offer.
The youth and older consumers are two segments of the
population able to allocate more money on clothes than
any other (9*). They represent an opportunity for retail outlet
to adapt their offer and answer the demand for trendy and
cheap apparel for the former, quality and classic style for the
later. Despite such opportunity, Covent Garden seems to neglect the needs of this segment of the population for the likes
of trendy and mid market boutiques yet with failing to attract
the right crowd.
EVOLVING TRENDS IN
CONSUMERISM
Online shopping has generally affected retail centres across
the UK. However a majority of people still perceive shopping
as a leisure activity and balance their shopping activities on
and off line with a clear preference for physical shopping experiences (*10). Most retailers have answered these changes in
consumerism trend by adapting their shop offers from simple
retail outlet to unique in-store brand experience. Covent Garden has successfully followed this trend by increasing their
numbers of concept and pop up stores in the recent year,
therefore offering a unique retail experience to its visitors. Unfortunately it has currently proven to be insufficient to raise the
general perception of the area as a trendy fashionable spot of
London.
TOURIst CONGESTION
As previously stated, Tourism congestion is a big thread as
well as a market opportunity to Covent Garden. The combination of excellent central location, unique environment as well
as rich history has attracted tourist to the area for decades,
leading to an unavoidable overcrowding of the area. More
than 30% of people surveyed in the streets of Covent Garden
stated that their least favourite aspect of the borough was its
frequent overcrowding, leading Londoners to seek new retail destinations were they can find more comfort, space and
tranquillity. Despite the borough’s extensive efforts to redesign
Covent Garden’s retail offer to attract Londoners to the neighbourhood, it still attract as many foreign visitors therefore posing a thread to the intended establishment of Covent Garden
as a high-end retail centre rather than a touristic attraction.
Despite being looked upon by many locals, tourism consumerism remains vital to the commercial success of Covent Garden.
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