So Borders has gone into administration and I can’t really say I’m surprised. What I am surprised about is how it didn’t happen sooner.
I really liked Borders, and the fact that they sold so many obscure Graffiti and Hip Hop magazines. I liked the chunky hardback graphic design books and I liked sitting in their chairs and reading them all.
What I don’t like is buying things from them – I like buying them for half the price from Amazon and having them delivered the next day, to my house, for practically nothing.
This is exactly the problem that a lot of retail is going to face in the coming years. As nice as it is to have a shop where people go and spend an afternoon, drink a cup of coffee and relax, at the end of the day it is a shop, not a free creche for book geeks.
It isn’t just a book thing either, it applies to a lot of retail. If you think about it, what do we really need to buy from shops any more? All I really buy from shops still is food but most of my friends buy that online. I like going into shops and seeing all the products and trying things on, but I very rarely buy anything from them because I know I can get whatever it is cheaper online. And if everyone starts to think like this, then retail is really going to struggle. Within the next few years pretty much everyone is going to have a smart phone, and that will let them check online prices while they are in the shop.
It isn’t going to happen overnight; there are still plenty of customers who buy solely from shop shops. My stepmum for instance refuses to buy anything online because she is convinced someone is going to steal her identity (she also won’t let me transfer money into her bank online.) Attitudes like this are getting less common, and as the older population gets more and more tech savvy, shops are going to find it difficult to sustain themselves.
The really big guys will more than likely be fine, and the smaller independent shops will be too, but I think there is going to be a massive section of the middle of the market that is just going to disappear. They don’t have the extensive product lines of the Topshops, they can’t compete on price against the Primarks, and they don’t have the customer service of the John Lewises. They can’t offer the individuality or friendship of independent, smaller stores, and this is what’s going to make them fade into non existence.
If they are going to compete, they need to do so another way. They need to innovate and come up with something that helps the customer. If you can’t compete on price online, then offer them other online features that are useful. Understand the audience, engage with them and ask them how they can make offline shopping work better for them.





Here are Qube’s favourite tweets from the last week.






