Security breach

RS
04 RS February - March 2013
comment editor’s letter
It’s not just online
retailers and instant
digital content affecting
the High
Street. Consumers
‘showrooming’ and
archaic rent practices
share the blame.
Karen Moss is Editor of Retail Systems. Her
blog on all things retail tech-related can be
found at: http://retail-systems.blogspot.
co.uk. She can be contacted at: karen.
moss@retail-systems.com
A rocky start
This year has already seen the demise of HMV, Blockbuster
and Jessops. What can be done to stop the rot?
So far the year 2013 hasn’t been particularly
kind to the retail industry. We saw
the closure of big High Street names like
HMV, Blockbuster and Jessops. All seemingly
fell to the ongoing march of digital content –
streaming films and TV, downloadable music,
digital cameras.
What chance did these retailers have against
such a formidable competitor? After all, what
consumer these days would take the time to
browse HMV and buy an album for £14.99 when
they can download the individual songs they like
for 99p each – or even for free, if, like millions
of others they aren’t very observant of piracy
laws. Then there are services like Spotify that
are replacing the need to even download music.
Users can subscribe and compile playlists from
Spotify’s extensive song library instead.
Lovefilm and Netflix have impacted businesses
like Blockbuster and HMV by offering
instant gratification when it comes to watching
movies and TV shows. While websites like
Amazon and Play.com undercut High Street
retailers on price, claiming those consumers
who still buy CDs and DVDs.
Of course it’s not just the popularity of
online retailers affecting the High Street.
The fact is consumers are spending less and
‘show-rooming’ more. But what about retailers’
quarterly rent bill? Surely this is the silent killer,
or more like the final nail in the coffin, for some
of the retailers we have seen collapse into
administration over the last few years.
The fact of the matter is, having retailers
pay three months’ rent in advance causes
serious cashflow issues and, in some cases,
deters retailers from expanding their store
estates. And for our HIgh Streets it means more
boarded-up shops, more vacant premises, more
eyesores. Isn’t it about time retailers were cut a
little slack and archaic practices overhauled?
I’m aware that, unfortunately, it didn’t work
for Clinton Cards last year when their 800
stores were moved to a monthly rent model.
But was that a case of too little too late? Could
other retailers perhaps benefit from greater
public awareness around this issue?
Luckily there is still some optimism among
multi-channel retailers and technology vendors
alike. On page 33 you can read my review of this
year’s National Retailing Federation’s (NRF) Big
Show. I found most exhibitors had an upbeat
attitude about 2013, despite the dismal start
to the year. Most believe that the retailers who
want to stay on top – or even those who are
just trying to stay afloat – need new technologies
to meet their goals.
With the importance of technology in the retail
sector in mind Retail Systems is pleased to
announce that our inaugural Payments Awards
are now open for nominations.
The awards recognise cards and payments
excellence and technology innovation within the
UK and EMEA. Entries are invited from financial
institutions, retailers, telcos, issuers, acquirers,
technology vendors and various payments
providers. It’s free to enter and you can put
your organisation forward in as many as
categories as you wish.
The Payments Awards Gala Dinner and Ceremony
will be held at Millennium Hotel Mayfair,
London on 14 November 2013. The night will
begin with a champagne reception, followed by
a three course dinner, an Awards ceremony –
hosted by a celebrity compere – and an after
show party with dancing and a fun casino
until late.
Sister titles FStech and Retail Systems have
joined forces to deliver what we believe is
a unique event. Entries will be judged by an
independent panel, including: Simon Burrows,
director, PwC; Roy Ford, IT controller, SPAR; Alex
Kwiatkowski, research manager EMEA banking,
IDC Financial Insights; Paul Rodgers, chairman,
Vendorcom; Mark McMurtrie, director,
Payments Consultancy Limited; Neira Jones,
senior VP, cybercrime at Centre for Strategic
Cyberspace and Security Science and head of
payment security, Barclaycard and Andrew
Johnson, chairman of the UK Gift Card and
Voucher Association (UKGCVA).
The panel will be chaired by Scott Thompson,
editor of FStech and myself. Good luck to all
the entrants.