‘Why do some retail brands endure while others fade away?’

Watching Djokovic the other day got me thinking about longevity. Why do some retailers survive and thrive while others disappear? The key is staying relevant and that comes down to balancing core values with innovation. What is your brand known and trusted for? What is its value proposition?

You need to decide what’s non-negotiable and where to evolve. As Marks & Spencer chief executive Stuart Machin says, “Protect the magic and modernise the rest. M&S stays relevant by holding on to our core values of quality and value, but modernising all the time. You’ve got to stay close to customers even if they don’t shop with you yet. Younger shoppers said they would visit our Foodhalls more often if we’re better value, so we adopted keener everyday prices while protecting the magic of Christmas and Easter - and now a new generation is doing a regular trolley shop with us. And on the talent front, we like to recruit colleagues who get the heritage but aren’t afraid to take bold steps.”

John Lewis has had its ups and downs in recent years, but under Peter Ruis it has reinvigorated the offer, returning to a more modern version of ‘never knowingly undersold’ and sales appear to have turned the corner. The department store sector overall has been in long-term decline for 20 years, yet Selfridges and Harrods continue to flourish while House of Fraser and Debenhams hit the buffers. Lack of customer focus and a failure to innovate left stores looking more like cheap bazaars than aspirational and stimulating places to shop. This customer wants an experience and social interaction - something that Selfridges delivers in spades. As chief executive Andre Maeder comments, “In retail you have to keep evolving and innovating as our founder, Harry Gordon Selfridge, knew over 100 years ago. Selfridges has been unafraid to challenge the status quo and do things differently. We strive to be a social destination that people visit not only to shop, but to spend the day.”

And what of WHSmith which has been on UK high streets since 1792? It lost its high street relevance to a combination of supermarkets and online vendors and will now disappear to be replaced by TGJones – is that a brand? Will it ever be? Or is it a just a pale imitation? The poster child for balancing core values with innovation has to be Next, which evolved from Hepworths, a tired retailer that had failed to keep up with market trends. It stands for continual reinvention and development of the proposition but is always squarely focused on its core customer groups. Next is now a platform offering a selection of brands that otherwise would have ceased to exist. Having just chalked up £1bn profit, it is arguably the most impressive retailer the UK has ever seen.

Homewares has also been a difficult place to be in recent years, but Dunelm has built a successful business that goes far beyond its initial offering of curtains and cushions. Knowing the customer and continual innovation have been the mantra here. As chief executive Nick Wilkinson, says, “We have stuck to our specialism in Home, meaning that we have become true experts in giving customers the broadest choice of relevant and quality products which are carefully designed and developed in partnership with long-term suppliers. Over the years we’ve brought that offer to an increasing number of customers through an evolving mix of channels, allowing them to see, touch and feel the products in our stores, while browsing, seeking inspiration, and finding convenient delivery options online.”

A couple of weeks ago, John Colley shared with Retail Week his rationale for recent acquisitions. “The Vagabond [wine bars] 25 to 35 demographic is younger than Majestic’s core customer. Using our technology platform, we are now collecting data when they transact and as these customers mature, we will convert them to Majestic, thereby keeping the brand fresh and relevant. Now with the addition of [distributor] Enotria, we encompass retail, commercial and hospitality. The synergy between these brands is and always will be delivering on the core proposition which is premium wines and incredible service, backed by qualified, skilled colleagues.”

Asda’s woes have been compounded by news that Aldi has overtaken it as number four in food and drink. Much to colleagues’ delight, Allan Leighton has been drafted back in to restore its fortunes and at the top of his priority list is mining the brand’s heritage, but in a more modern and relevant way. That means a tighter, more focused range, Rollback and that famous pocket tapping ad that everyone remembers. Will it be enough? Time will tell, but Asda has returned to its core values and that’s to be applauded.

And by the way, Djokovic lost to someone half his age. What does that tell us?