Many retailers have boosted their investment in online, focusing on the customers’ digital journey with in-store experiences suffering as a result. But, as Peter Moody, managing director, London, MullenLowe Profero, explains in this piece for RetailTechNews, the same care and effort that is used online must be reinstated in physical retail, especially department stores, if we are to prevent the death of the high street.

The struggles of the UK high street are known to those in the industry and beyond; but in contrast, digitally advanced Japan’s retail industry is flourishing, thanks to continuing investment in the physical retail space.

After living in Japan for 16 years, I can confidently say that its department stores are world-leading in terms of customer experience and engagement, thanks in great part to a sophisticated culture of service that permeates the country. On home soil, though, I think we appear to have given up on the joy of shopping (it really can be a pleasant experience). The pride employees have in their store and brand has gone. Every department store feels the same and it’s only the ones that treat their retail presence as a place to connect with their community that seem to be winning.

Selfridges has seen record profits after investing £300m into revamping their physical stores, responding to market trends and dedicating 60,000 square feet to an accessories and beauty hall. Speaking with The Times, managing director Anne Pitcher credited the department store’s success to in-store experiences and focusing on how they engage with customers.

It all feels a bit too obvious to say that retailers must ‘put the customer at the heart of what you do’; but they can start by putting themselves in their customers’ shoes and ask when they last felt important walking into a store.

Speaking from personal experience, the last time I felt important and truly cared for when shopping was when I was working in Tokyo. When you walk into a department store in Japan that has just opened, every employee stands at the front of their shop and bows to the incoming clients; the same happens when you leave. While it can be a slightly uncomfortable experience when literally everyone who works at the department store is saying good morning and welcome to you, there is a great sense of pride from the people working in the store; they’re always immaculately presented. You also never have to wander aimlessly for too long, as there are plenty of staff on hand to assist you. Fundamental communication in stores is fantastic in Japan. This says a lot, particularly culturally, about putting the customer at the heart of everything that those in retail and services industry do.

Despite a dire outlook for the industry, it seems those retailers who have a strong core focus about who they are and what they do are faring well. Take for instance TK Maxx. It’s chaotic and unpolished, and yet sales for the year almost reached £3bn. It’s because those shopping at TK Maxx know exactly what they’re in for when they enter the store; they don’t shop there to find a specific item, rather they shop for the unexpected, choosing to browse and explore discounted items that change daily. In comparison, now-defunct Poundworld (or is it Poundland, Poundshop, Poundstretcher, or OnePoundShop?) provided no real incentive for shoppers to go there; the experience in-store was close to clinically depressing and the only thing it portrayed to customers was that it was going to be cheap.

I think part of this dilemma is also down to a lack of direction when it comes to targeting and appealing to specific demographics. Desperate to get any sort of foot traffic, many retailers have lost sight of who their products are for; and therefore a great in-store experience cannot be created around a brand that doesn’t know who their shoppers really are. In Japan, each department store tends to have an age focus rather than just a cater-for-all. For example, 109 in Shibuya is specifically targeted for the urban teenager, Isetan for middle of the range, and Takeshima is more upmarket. Having a strong purpose and, by extension, incentive for customers to put in the effort and come into your store is key to ensuring physical retail is not a thing of the past.

Part of bringing people in-store is also about creating a sense of community, which cannot be replicated online. In the pursuit of expansion and market greed, we’ve seen chain stores assume a short-term profit mentality, which has led to a short-term experience mentality at the expense of their customers.

In Tokyo, Ginza 6 is the pinnacle of high-end retail, a premium shopping experience with 241 brands under one roof. Even the building’s grandeur reflects the service available. In June this year, the opportunity for retailers to learn from the master arrived in the form of Japan House London. Spread over three floors, the building offers a temporary exhibition gallery, a library, and a Japanese restaurant among the retail spaces. Admittedly, it’s unrealistic to expect all department store chains to build restaurants and galleries into their stores. But the essence of investing in the reason why people go in-store – for experience and engagement – needs to be adopted more widely.

While I spend most of my time working with companies on digital experience-led transformation, the value of the retail environment has also never been in more need of its own change. Physical stores need to be far more than a place for people to make their online returns; they are the real experience for your customers. So, stop moaning about taxation issues and spend more time and energy on the real issues that focus on building that experience, with the customer and community at the heart.