design:retail - August 2016 - 34

searching for steve jobs 034 The Brexit Effect ROBERT HOCKING RETALE MATTERS robert@retalematters.com @rhockinguk G IVEN WHAT'S HAPPENING in the United Kingdom at the moment, it seems appropriate to quote Shakespeare: "Now (truly) is the winter of our discontent." At the time of writing, the U.K. and its retail sector have gone through once-in-a-generation turmoil. British Home Stores, a 90-year-old department store chain originally founded by U.S. entrepreneurs, has gone bust; Austin Reed, a 116-year-old retailer, has done the same; and My Local, a convenience store chain operated by grocery retailer Morrisons, has moved to shutter its stores. In all, 439 stores have closed and almost 14,000 staff are on the street-and we're only six months into the year. And, to top it all off, through a historic vote, the U.K. public has just decided to leave the European Union (EU). Discontent indeed. To start, some background on the European/ British divorce, or as it's called over here: "Brexit." The foundations of the EU were laid following WWII, when the countries of Europe sought to find a way to prevent any further wars. Today, there were 28 members with a total population of more than 500 million (before June, that is). The EU began as a trading block of countries working together and evolved into a complex economic and political partnership. A core principle is that member states are part of a "single market," allowing goods and people to move freely between members as if they were one large country, similar to the United States. Many Brits felt that too much control over law, immigration and economics had been given to the EU, and that leaving would enable the U.K. to recover its sovereignty. However, while the U.K. may want to leave, the actual separation will take years as agreements are hammered out over AUGUST 2016 DESIGNRETAILONLINE.COM every aspect of the relationship. In the meantime, we wait, we see and we prepare for a new future. The fact is, however, through most of 2015 and this year, Great Britain enjoyed the strongest economic growth among Group of Seven advanced economies. Yet still, the aforementioned retailers were on their way out. So while their closings are unfortunate, there will always be winners and losers. Some of it comes through tough economic times, increased competition or new disruptive business models. What this turmoil reinforces, though, is that change is going to come whether we want it or not-and often it's going to be hard and it's going to create uncertainty. Whether it's 9/11, the 2008 economic crisis, changes in presidents or prime ministers (yes, we lost one of those, too), or divorce among supranational relationships, uncertainty seems to be the new normal. And this new normal most profoundly affects all of us, as people, as consumers. And as people in business, it's important to keep our heads, to consider how we respond to this change in a way that creates or maintains positive momentum. Most companies are conservative even in the best of times, but hunkering down won't solve GLOBALSHOP.ORG the conditions we face. Instead, we need to double down on reconfirming why people should even bother paying attention. As a community of designers and creators, the demand to be inspired in our thinking, and to inspire with our thinking, may have never been more important. We must not forget that when we falter, we rebound; our job is to believe that and to prepare and aid the upward journey. In speaking to Dr. Dimitrios Tsivrikos, consumer psychologist at University College London, he shared some insights that might illuminate a path. He explained that by nature we are risk averse; we see more negative than positive-this is to protect ourselves. He also noted that it is in our nature to want to see ourselves as part of a bigger movement; that it's easier to rationalize fighting for something larger than ourselves, to sacrifice or release resources if we "truly believe." He shared the view that the winners in this uncertain future will be those brands and retailers that provide a unifying vision; that are facilitators of change. Change is indeed constant. But is it going to be change for the worse or for something better? There's no question that the world needs people and businesses to work together to create a more positive, optimistic future. So ask yourself this: are you creating the kinds of spaces and opportunities that are part of the problem or part of the solution? Today, I woke up and the sun was shining. I visited stores and there were shoppers-all, I'm sure, looking forward to getting on to the next great thing. Let's help them on that journey. ROBERT HOCKING IS A LONDON-BASED RETAIL BRAND CONSULTANT WHO LOVES RETAIL BUT HATES SHOPPING-AND CONTINUES TO SEARCH FOR STORES THAT WILL CHANGE HIS MIND. Illustration by LOGAN_81/ISTOCK/THINKSTOCK http://www.DESIGNRETAILONLINE.COM http://www.GLOBALSHOP.ORG

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