There have been big changes in how people view and use the high street in the last few decades. In the 90s and 00s they were thriving spaces full of businesses and activity. It helped to shape the commercial architecture. However, the rise of online shopping cut into this. The estimate is that by 2024 a third of all retail sales will be online.
How do businesses view flagships?
The biggest impact here is it makes businesses consider their flagships. These are their largest stores and can be pivotal to how they present their brand. However, they can also be the most costly to operate. That makes some companies consider whether they are still relevant.
The interesting thing is views on flagships differ by company. Some still see the value they offer and invest in them. For example, UNIQLO opened an innovative concept flagship in Yokohama in 2020. It is a hybrid of retail and playground, celebrating the brand but making the store an engaging destination.
On the other hand though, a number of high profile brands chose to close flagships recently. Sticking with fashion, Abercrombie & Fitch has done a lot of restructuring. They made the decision to close stores in major centres, including London, Paris, Brussels, and Munich. Their focus was shifting to stores that cater for local customers.
Can flagships still work?
This is the big question many businesses have when they think about commercial architecture. Are the costs of keeping big, expensive flagship stores worth it? The answer generally comes down to what consumers want. If it is a brand where people want to physically interact with products, having a space where they can do that and have a great experience is important.
It is also important to look at the impact of closing these stores. Some businesses do it to achieve savings on operating costs. Sadly, some had to as a way to survive the big drop in business during the pandemic. However, if customers enjoy the experience at these stores and you close them, the brand is almost telling shoppers they don’t care about their experience.
The key to making flagships relevant today is to ensure they appeal to visitors. The focus should be on giving them an experience they can’t get elsewhere. Some of the best stores make it almost like customers can have an entire day out in one visit. The stores can also become tourist spots.
It is a good idea to get a great mix of physical and digital resources in flagships too. For example, you can have things set up so people can experience and demo products. You can then have QR codes or facilities to order products online. It would save them having to carry any purchases and means the business doesn’t need to keep as much physical stock on site, saving space for more experiences.
Talk to us about commercial architecture
At Coffey Architects we have a real love for architecture. It can be stunning with the right design in the perfect location. More importantly, designs can make it so buildings are sustainable, engaging, and deliver value for the users and area. We work to do all of this with our projects.
So, if you are thinking about any kind of commercial architecture, especially flagships, we would love to help. Contact us to look at everything you can do with these buildings.