Over the last years, small businesses set in previously successful commercial areas have faced a number of challenges, including the financial crisis and the growing competition of online shopping. Many businesses that operated in areas which were once the commercial centre of the town or neighbourhood, were forced to close. This had a spill over effect on the hospitality and cultural businesses, which suffered from a reduced number of visitors. The COVID-19 crisis adds extra pressure to this environment with an outcome yet to be evaluated.
In many medium-sized and bigger towns, large malls on the outskirts offer a “one-stop-experience” for shopping, culture and hospitality, generating even more difficulties for the smaller ones in the centres to subsist.
The deterioration of commercial areas is raising interest from municipalities and civic organisations, as the reduction in retail, commerce, hospitality and cultural activities in these kind of areas results in an overall deterioration of the area, with less movements of persons. Many municipalities are looking for solutions which can help them give new life to these areas and spaces.
Trends related to increased awareness among consumers about sustainability issues, the impact their decisions have on the environment, and the “slow”-movement (which advocates a cultural shift toward slowing down life’s pace, and of which the “slow-food” movement is the most well-known), generate ample opportunities to bring about the so-much desired change. Proximity products and services are gaining ground.
Also, consumers nowadays not only acquire a product or services, but look for an “experience” or a statement with regards to their preferences and lifestyles. Attracting consumers to the commercial areas requires added value to be provided, e.g. an experience, or a combination of products or services not easily found somewhere else, or with clear added value, e.g. sustainable, ecological, environmental-friendly.
Although there are already some initiatives springing up in commercial areas, which cover the consumer demands with regards to sustainability, proximity and the slow movement such as shops which offer products in bulk so the consumer can buy exactly the needed amount, or those offering local ecological products, there are many which have not adapted to this new setting.
It is difficult for a small commerce, retail, hospitality or cultural/creative business to provide answers to the aforementioned challenges individually, and when they do, the impact is limited to the specific type of consumers they address. Hence intense collaboration through the joint creation, design and implementation of new products and/or services, offering the consumer the needed experience is key.
