Failure to improve interiors will mean a price to be paid sooner rather than later.

It’s not fashionable to spend large amounts of money on store upgrades in the current climate as the thinking is that with turnover static, improvements will have to be paid for by increasing prices at the till, cutting staff, or some such. And to an extent this may well be the case if the product offer does not run hand in hand with the environment.

Yet there are currently two signal examples that show that spending money on making your store look better provides competitive advantage and at a time when little or nothing is being spent by others, more so. Both are from the luxury sector and both involve revamps, improvements and generally attempting to offer something better. The results speak pretty much for themselves.

The first is Harrods, which revealed last week that sales in the year to January 29 had pushed through the £1bn barrier. It cited the £32.7m spent on store improvements during the period as being helpful and added that more would be spent in the current year. This is not idle talk. The recent relocation of the shoe department is part of a domino effect that is seeing departments moved and makeovers taking place across the store – to good effect.

And then there is Selfridges. This department store has been busy with its Manchester Exchange Square branch (as well as the London flagship) and the latest outcome is a relocated beauty hall that is double its previous size. According to managing director Anne Pitcher, average transaction values are up 50% – again testimony to the power of in-store change to move sales in the right direction.

There are, of course, limits to what can be achieved and success is dependent on the sector that you operate in. It would make no sense throwing money at a value proposition in the same manner as a luxury store, but the principle of continuous improvement remains the same. What is worth considering is that be it supermarket, fashion chain or luxury department store, those that have invested and continue to do so are more often than not those that surprise pleasantly when results are posted. And if the money is not in the coffers to do this, then it might be worth closing a few branches and spending on those that remain. Obvious stuff, but so frequently not acted upon.