Technology can be the saviour, not the death of the high street
It is no secret that these are tough times for the UK’s high streets. The writing has perhaps been on the wall since fallen retail giant Woolworths disappeared in 2008. A decade later and isolated closures have turned into a trend — Last year, prominent chains including Toys R Us, Maplin and Poundworld were also consigned to the high street of yesteryear, at the cost of around 10,000 jobs.
Things look equally bleak for 2019. New Look, Mothercare and Prezzo are among the household names which have recently closed outlets and reduced staff in a bid to stay afloat. The race is on to save the high street. Attempting to find an answer, MPs recently made a number of recommendations. A special committee proposed an increase in tax for online sales, squeezing the internet retailers who have increasingly turned foot traffic into web traffic. They also recommended a change in business rates, often seen as an onerous tax on high street stores.
But the key to reviving high streets goes way beyond tweaking the tax structure. MPs righty urged some more creative thinking surrounding high streets, arguing that they must become homes also to health, education, leisure and administrative offices. There is certainly some wisdom in this. After all, high streets were once bustling hives of activity, not simply because they were convenient places to shop. Crucially, they were also community spaces. They were places where shop-owners knew the names of their customers, where childhood friends might re-connect. In other words, high streets were once thriving community hubs.
That spirit can be recaptured, even in today’s world of giant retail parks and online shopping. Because the key lies not only in the shopping experience, but in the communal, social experience. High streets and city centres must remain places where people can meet and interact. And there are already some creative options which are making an impact — In Coventry, a theatre has replaced an old fish and chip restaurant, while in Stockton-on-Tees, an amphitheatre equipped with lighting and sound, has been built in the re-landscaped town centre. Meanwhile, Cardiff even has a mini-golf course at a shopping centre in the heart of the city. These are just three examples of experiential businesses which can bring people together, attracting footfall to the high street. Less innovative perhaps, but restaurants, bars and other entertainment venues are all likely to have a similar social effect, restoring highs streets to become communal assets once again.
But the solution lies not only in new outlets and businesses. It also lies in the way business itself is done. Just imagine if the very act of purchasing a product or a service was a social act in itself? The good news is that this can actually be reality thanks to new technology. Admittedly, community based currencies are nothing new, especially in the UK — Brixton, Bristol, Exeter, Lewes and Totnes are just some of the towns which have launched their own local currency in recent years, printing notes which have an actual, local monetary value.
But now digital city-wide currencies are an option, bringing with them a whole new range of possibilities. These are not just a local method of payment. Because they are digital, these currencies can also operate as a rewards platform. When calibrated to align with local needs, they have the capability to incentivize positive social actions — This includes revitalizing the dwindling high street.
Digital currency can be awarded in return for spending locally, for using businesses in the very high streets that time looked to have left behind. What better way of encouraging people to return to the centre of the city than handing them both a sound financial incentive, plus the knowledge that they are doing something positive for the greater good? And what more convenient way of doing so than through mobile phones? Such potential has not gone unnoticed. South Korea’s capital Seoul and New York State are among those mulling the benefits of a localized digital currency.
With time apparently ticking on the future of UK high streets, their regeneration has become a hotly discussed national issue. But the truth is that the answer may be much closer to home than people think. Closer than the high street itself, as close as an app on your mobile phone. So while the rapid advances in online retail is blamed by many as the single-biggest factor in the downfall of the high street, its revival may just lie in another technology — City-wide digital currency.
