The accumulation – or not – of stuff has become a hot topic in recent months, and is starting to take on a new hue in the wake of the recent troubles of BHS and Austin Reed. As Ian Smith points out in his Taking Stock column this week, their problems are partly the result of the changing retail landscape, driven by the rise of online shopping and also the success of discount retailers such as Primark and Poundland, whose goods are essentially sold as disposable. Book and music retailers like HMV and Waterstones have also been at the sharp end of this trend – the growing popularity of digital content services like Spotify and Netflix, or devices such as the Kindle, means we are growing increasingly used to the idea of not physically ‘owning’ the content we consume.
For the millennial generation of so-called digital natives who have grown up with this technology, this is the norm rather than a novelty. I was gobsmacked, as a die-hard accumulator of stuff, when one of my younger colleagues told me his desire was to own nothing – but as I prepare to cart a vanload of books across two counties I do see his point. Even the Bank of England is getting in on the act, publishing a blog this week in which it suggests that instead of acquiring material possessions, we should instead seek the “mindfulness” that comes from foregoing consumption.
It is an interesting new-age stance from such an important financial institution given how key consumers are to our economy, and also many of the companies we invest in. Only this week, the CBI said that it had seen the worst fall in retail sales for four years – it could be a blip, but it could also be a symptom of our diminishing interest in surrounding ourselves with new things. Even the perennially popular Ikea is unnerved, recently warning that we had hit “peak furniture”. I suggest anyone considering investing in retail heed those concerns. Increasingly, it will be the consumer facing businesses which have recognised this trend and create memorable experiences that fare better than those just peddling more stuff.
