Archive for the ‘Emerging trends’ Category

Independents day - July 4th !

Tuesday, June 21st, 2011

Your high street needs you

Your high street needs you

What is Independents’ Day?

Well, Skillsmart Retail and the National Skills Academy for Retail are teaming up with local retailers across the country on 4th July to celebrate Independents’ Day, championed by the formidable Mary Portas. Shoppers are going to be encouraged to buy at least one item from their local independent reatailers and celebrate diversity on the high street.

They are championing the skills great independent retailers have and they want to show the public that their local shopkeeper is not only a vital service, but someone who wears many hats; they are the accountant, sales assistant, buyer and often everything in-between. Well, amen to that ! From all of us who are getting dizzy with the multiple chameleonic roles we play in a single day this will be welcome news. This is all part of the campaign to back the high street and maintain diversity, while getting rid of the ugly eyesore empty shops.

Firstly the government appointed a retail adviser to bring back the bustle to our high streets, which was contraversial enough. It proved that there was a problem with our city centres and high streets (which we’ve all known for ages), finally, it seems that even the government noticed that.

When this new retail adviser, as her first initiative, launches a “declaration of independents” its time to sit up and pay attention. When you learn that its Mary Portas of “Mary Queen of Shops” fame, its time to take out a notebook and start taking notes !

Mary Portas is known for no-nonsense plain speaking and innovative ideas. Her ideas boost retailers enthusiasm, knowledge, skill base and earnings. With a successful retail background and a commercially savvy consultancy agency, she marries the two areas in her own unique way.

It is tough on the High Street and has been for some time. With town centre vacancy rates doubling over the last two years, the need to take action to save our high streets has never been more obvious. Consumers have seen their discretionary income fall as the cost of just about everything has risen. So in real terms this means less money to spend on anything that isn’t a necessity.

Some retailers have fared better than others and there have been some well publicised casalties in the bigger chains. But the real story in the change of the high street has been that of the independent. Over the past 40 years Britain has changed from being a “nation of shopkeepers” with vibrant high streets, buoyant with diverse retailers, to one where the chain stores are represented everywhere, leading to charges of “Clone town”

Clone towns are not a good idea for many reasons, primarily that Independent businesses are vital to our local economies. They ensure the unique character of an area. They are more accountable to customers and the local community, more likely to support local charities and have greater direct control over the environmental impact of their businesses.

Furthermore, money spent at locally owned independent businesses goes around longer in the local economy. It yields two to four times the economic benefit to the local residents compared with non-local businesses. This means more local income, wealth, and jobs and of course the intangible aspect of community.

Supporting independent businesses creates local jobs, preserves economic diversity and safeguards the environment and that has to be a good thing. Whilst the larger stores are the anchors in our cities and towns, its the independent businesses who offer the diversity thats lacking and the mix that keeps it all interesting, as well as being a valued link in the community, which seems to be so sadly underrated and under reported.

There’s definately something about Mary !”

Sunday, May 22nd, 2011

Mary Takes on the High Street

Mary Takes on the High Street

Its the biggest retail news since woollies closed its doors.

Mary Portas has been asked by the Government to take a look at our ailing high streets…. (about time too, i can hear you chorus) As she says, “the city centre picture is one of steep decline. Three years ago six per cent of high street shops were vacant; by the end of last year the figure had grown to 14 per cent. At this rate, in two years’ time, more than a third of city centre shops will be boarded up, But it’s not just the shops that are going from our high streets; banks and post offices are disappearing too. As they go, we lose a feeling of community because the high street is the heart of a town. And, as high streets empty, the crime rate increases.”

If you’re nodding your head in agreement, the question really is, what should we be doing ? Are the high streets worth saving, or are we just entering a new digital age and we all just need to move on and make space for the big retailers ….? What do you think we should do to revive the high street ? Or shouldn’t we bother, is it a case of change or die ?

Mary is asking for our opinions, and this is as good a time as any to add your comments into the pot - hopefully something good will come of it, maybe she’ll be able to persuade landlords that upward only rent reviews and quarterly rents payable in advance aren’t such a cool option…?

You can follow Mary’s quest on her website www.maryportas.com Here’s an extract from there to get you in the mood

In May this year, I was challenged by the Prime Minister and Deputy Prime Minister to undertake an independent review on the Future of the High Street – to help ‘bring back the bustle’ to our town centres.

And with town centre vacany rates doubling over the last two years, the need to take action to save our high streets has never been starker.

I am calling on business, local authorities and shoppers to contribute their ideas on how we can halt this decline in its tracks and create town centres that we can all be proud of.

If you’ve got something to say about the state of our high streets – be it an observation, insight, initiative or idea – please add your own contribution to the debate.

Retail sales worst for 15 years

Tuesday, April 12th, 2011

banging-your-head-against-a-wallRetail sales fell in March by the biggest margin since records began, according to new figures from the British Retail Consortium (BRC).

The BRC said that total sales during the month were down around 1.9 per cent when compared with the same month last year. This represented the worst performance since 1996, when the survey was started. Factors such as the late Easter impact these figures but its not really easy to say how much?

Like for like sales were 3.5 per cent lower than the previous year which is the worst like for like performance since 2005. So nothing to celebrate there for retailers.

Meanwhile online sales remained quite resilient. They were up by 7.5 per cent, which in other fields would be a rocking increase, but this is still lower than the 10.4 per cent increase registered in February. So in real terms its not good news.

The late Easter is partly to blame for the figures according to the BRC, but this alone is not enough to explain the poor performance of retail.

Instead, analysts have suggested that rising prices, the coalition’s VAT increase, and real-terms wage cuts for many workers are likely to be the cause. Basically knocking consumer confidence if not into the ground, at least into a wooded area.

Stephen Robertson, Director General, British Retail Consortium, said:
“This is the worst drop in total sales since we first collected these figures in 1995. Non-food retailers were particularly hard-hit. This is strong evidence of the pressure customers and traders are under. This year’s later Easter is a factor but this fall goes way beyond anything that can be explained by that alone.

“Uncomfortably high inflation and low wage growth have produced the first year-on-year fall in disposable incomes for thirty years. Mounting fuel and utility costs, falling house prices, higher VAT and the prospect of more tax rises and job losses left people unwilling to spend unless they really had to. These pressures aren’t going away and the arrival of higher National Insurance is likely to compound them in the immediate future.

“The next interest rate decision is a difficult balancing act for the Bank of England but, for now, supporting our weak economy must be the priority. Inflation is coming mainly from temporary and external price shocks - VAT, world commodity prices and the weak pound - not wage or consumer-driven increases. Increasing interest rates would do more harm than good.”

Helen Dickinson, Head of Retail, KPMG, said:
“The food sector suffered in the month due to Easter purchasing falling into March last year, thus impacting the overall results. However, beyond this the trend continues in a marked downward direction: non-food continues to struggle, with big-ticket and home-related sectors again being the hardest hit. We have seen an emergence of new, lower spending patterns since the middle of January, which are currently continuing to trend downwards. Many retailers will not be able to sustain this ongoing weakness in demand beyond the short term and are hoping for some good news around the extended bank holiday period and a feel-good factor driven by the royal wedding.”

where, I hear you ask, is the good news ? The short answer is that there isn’t any - apart from three bank holidays that may get shoppers back onto the high street, but even these three days aren’t magical days that can make up for the lack of confidence and disposable income, so while we have sunshine, daffodils and longer evenings, all of which are long overdue, we don’t sadly have any good news for retailers… yet !

The A-Z of successful retail !

Monday, October 25th, 2010

the A to Z of retail

the A to Z of retail

The face of retail has changed so much over the past few years. So I’ve come up with my own A to Z for successful independent retailing.

A is for Advertising: Whether you consider it an enhanced form of communication or merely manipulation, most of us consider it necessary for our businesses. In fact, I could write a whole article just on advertising come to think of it…

B is for Budgets: I’m on safer ground here. If you don’t have a budget then you might get a nasty shock. This happens when you haven’t done your sums right, and it turns out that all your profit is tied up in your stock room !

C is for Credit: Be nice to your suppliers and you can negotiate favourable credit terms.

D is for Define your niche: Ok, so I’ve pulled that one a bit, but if you don’t define your niche you can end up chasing any opportunity that presents itself, which often results in a mismatch of styles, stock and confused customers.
E is for Employees: Sooner or later you’re going to have some. Start off with contracts and write everything down – this will save you a lot of heartache.

F is for fashion: Also known as trends. It is the cyclical law of nature that as things go up, they come down. Fashion reinvents itself each and every season. While giftware doesn’t follow quite so rapidly, it can still become obsolete, so read magazines, visit tradeshows and generally do anything else that can keep you up to date with what’s going on in your market.

G is for Gift Vouchers: A fabulous way for happy customers to let family and friends know what they’d like from your store.

H is for Happy face: There’s nothing worse than a miserable face behind the counter. Be pleasant and make sure that your staff are. Why not employ a mystery shopper to independently grade your service. Remember that most people leave a business because they just don’t feel valued or recognised.

I is for Infectious enthusiasm: Yours specifically ! To lead a team you must be enthusiastic. If you have no team and its just you and the customers then you still need to be enthusiastic (see previous letter)

J is for Just looking: You’re going to hear that a lot ! Rather than asking the age old dumb question – “Do you need any help?” Perhaps you could instead ask a better question – such as, for example – Have you seen our new collection of X….? At the very least you won’t get the just looking answer.

K is for keyword search: In our technological age, make sure your store comes up under your chosen keywords.

L is for Loss prevention: People will try to steal from you – Don’t make it easy. Look for blind spots and instill good security habits as a key part of your staff training.

M is for Marketing : Marketing is anything and everything you do to promote your business.

N is for Newsletter: A great tool for communicating with your customers, reminding them that you’re still there, that you have new stock in and putting a more human face on your business.

O is for Operations Manual: You’ll definitely need one of these as soon as you have your first employee, you’ll notice that they don’t do things like you do…! That’s why you need the operations manual – it says how things should be done, in which order, when and by who.

P is for Price: The all important question, how much to charge? My tuppence worth is that someone will always undercut you, so unless you are a pound shop, it’s worth defining other areas as the USP for your business – service, stock, knowledge, design for example.

Q is for Quest: Q is a hard one ! I chose Quest because I see it as a positive word, a go getting word. Quest implies striving, searching and constant improvement.

R is for Relationships: With your suppliers, your staff, the local council, the local media, and the wine bottle when its not going so good ! Invest some time and make them as good as possible (with the exception of the wine bottle!)

S is for Sales: Selling is a combination of art and science. Time invested in studying the psychology of selling is never wasted. Remember to sell benefits, not products, and always answer the oldest question “What’s in it for me?”

T is for Technology: You can’t avoid it. So you might as well take a few courses and work out what tasks you need technology to do for you.

U is for Uniform: Are you going to have one or are you confident that everyone else shares your good taste and style ?

V is for vision: Think about it, articulate it, print it and make a bit deal about it !

X is for Xtra: Ok, I stretched that one a bit. But every self employed person I know does more than a bit extra. Extra hours, extra jobs, extra learning, extra training. you get the idea.

Y is for You: the one that generates the vision, the standards and delivers on it !

Z is for Zero Tolerance: To anything that falls below standard, it’s so easy to slide as standards slip imperceptibly, but standards are what set businesses apart

Cambridge wins clone town award !

Wednesday, October 13th, 2010

What's on your high street ?

What's on your high street ?

In September the New Economics Foundation(NEF) results were published on the state of Britain’s high streets. The think tank looked at 117 town centres right across England, and the shops represented on their high streets. They counted the number of independent shops and the variety and using a simple formula they came up with list of the least diverse high streets.

Cambridge(scoring 11.6) was named the worst “clone town” In Britain, despite its beautiful colleges, impressive architecture and its ancient university status. Its historic streets are dominated by national chain stores.

NEF remarked that Cambridge was” the worst example of the trend for British High Streets to look identical, all populated by the same small selection of major retailers”

The report’s author said “Cambridge’s distinctive character still remains, but its high street is now no different from that in Exeter, Reading or Oxford.”
He added that the homogenity of the high street was brought about, in part by the recession. Since most of the shops are owned by the colleges, as they’ve needed to raise money, they’ve either sold them off, or increased rents to an extent that pushes out independent retailers.

For those of you of a curious disposition, you can download the survey from the site at www.neweconomics.org and carry out your own survey on your own local high street to see how it fares. Are you a Clone town, or a home town? That’s one that’s distinctive and recognisable as a unique place

In case you’re wondering Whitstable, a fishing port on the Kent coast had the most diverse high street scoring an impressive 92.1 on the diversity scale.

So what does this have to do with me, I hear you asking…? Well, local independent shops really are crucial for local economies. If you have a business in your town, any money that you earn from your business goes round in the local economy at least two to four times. That goes from things like ordering an extension from another local business, or getting your packaging made locally for example – If the money stays local rather than being wired out each night to a central head office you can see that it makes for more local income, wealth and ultimately more jobs.

On the plus side, NEF found that the diversity of Britain’s high streets had not materially deteriorated since 2005 when it last conducted its survey. However, that was partly because many of the big names, including Borders, Woolworths and Zavvi had collapsed into administration, so it’s not exactly brilliant news.

On a final note, the report concluded that “A bland homogeneity and encroaching vacant premises characterise the city’s (Cambridge’s) shopping centre,” and you’ve got to ask yourself, what does that say about other high streets then ?

I can’t be alone in thinking that could have been written about many high streets up and down the country ?

ebay calls on EU policy makers

Tuesday, July 28th, 2009

ebay flexes its muscle

ebay flexes its muscle

For those of us with with an online presence as well as bricks and mortar shops, ebay have been starting their own small (or not so small really) revolution against brand owners….

If this doesn’t affect you now, it may in the future, as a seller, brand owner or manufacturer.

Basically the story goes something like this – ebay was created on the foundation that people could be empowered by building a global trading platform where almost anyone could buy or sell almost anything. Ebay feel that that this foundation is now under threat from some brand owners and manufacturers who are trying to turn back the clock by blocking the sale of their products on online marketplaces and other websites across the EU.

The bottom line here is the right of sellers to compete fairly in the online market place and the right of buyers to be able to access the best possible deals from the widest array of goods.

Some of the not so happy brand owners have argued that their reluctance is to prevent the sale of counterfeit goods on ebay among other things,(and you might think they have a point) but ebay argue that their reluctance to have their brands hosted on ebay amounts to unfair trading practices and they’re calling on EU policymakers to amend the EU competition law to stop these “unfair” trading practices.

E-bay’s position is that brand owners have “descriminated against them”, and I’m sure that many of us remember the Tesco grey market war with Levi’s back in 2001. Levi’s won that round, with the European court ruling that trademark holders can stop businesses importing their products from outside the EU and then selling them without the trademark holder’s OK.

As a manufacturer and brand owner who has veto’d retailers from selling some of our more exclusive brands on e-bay and similar sites, this is squaring up to be an interesting fight, both sides have power and money, but my bet is that intellectual copyright will win out over the rights of the consumer – for now at least.

But it might be worth keeping an eye on this particular battle ground because if the rules are rewritten then selling goods over the internet is going to enter a new phase…

Still not twittering…?

Monday, May 11th, 2009

Still not twittering...?

Still not twittering...?

Twitter, (and other social media are doing) are changing all the rules of advertising and marketing. This is going on under our noses, and we’re now in the era of conversational marketing. You hadn’t noticed ? Prepare yourself because this is a huge shift in the way things work, and the implications are massive for all of us !

The internet and social media have changed the way we discuss corporate brands and reputations. Yelp allows us to rate and review local businesses we frequent, Facebook allows us to connect with friends and family and share our interests and our shoe addictions, and Twitter is the destination for any shred of emotion we want to share with our network !

Consumers are figuring out that they get better information and support from being networked to each other than to companies. In short they turn to each other for advice.

The good news for businesses is that we are apparently allowed into their conversations. More and more companies are building MySpace pages, launching facebook profiles or setting up Twitter accounts for customer support. They are finding that the corporate voice of “we have something to tell you” doesn’t work on these mediums, instead a new conversational marketing language is what works on the new media.

A recent survey of Twitterers, asked about their top reasons for using the platform stated the top two as:

• I find it exciting to learn new things from people
• I value getting information in a timely manner

Having lots of people follow them was not a high priority for them.

So, from a consumer’s viewpoint, the new social media redress the balance between consumer and faceless large company, or even faceless small company. Retailers are using Twitter to engage with customers, both for customer service issues and to get feedback and dialogue with customers – almost a market research perspective. Not, interestingly enough – for selling, or at least not exclusively.

Seth Godin, the world famous marketer said that marketing is the act of telling stories about the things we make, do or create – stories that sell and more importantly today perhaps in our virtual world – stories that spread !

From a business or marketers perspective, engaging in Twitter allows you to be in the loop and also to hear what is being said about you and your brand, which gives you an opportunity either to learn from what you hear or to respond. If someone was bad mouthing your business wouldn’t you want to be able to defend yourself?

Aside from information and protecting a brand, Twitter also allows you to build a following that you can tweet to - letting them know about your business, your personality and what you have going on…. for free - in effect its free advertising, all it costs is your time and you can join the conversation !

If you are finding your tweets a bit much to handle, check out tweet deck, it’ll manage them for you and enable you to keep chirruping !

Can a yawn create a retail epidemic?

Friday, March 27th, 2009

Yawning is infectious !

Yawning is infectious !


What’s an epidemic and what’s it got to do with retail?

Epidemics are by their nature contagious. If I say epidemic to you you’ll probably think of a cold of flu epidemic, as that’s what the media uses most often. But epidemics don’t have to be biological. We can epidemics of crime or fashion, or hope – witness the inauguration of President Obama.

Lets consider yawning for instance. Yawning is a contagious act, just because you’ve read the word yawning three times now, you’re probably thinking about yawning, or actually yawning. I’m yawning myself here writing this. If you’re reading this where other people can see you yawning you’ve probably started a mini yawning epidemic of your very own.

Yawning is incredibly contagious, just by writing the word yawn, you’re likely to Yawn. Just as an aside to the yawn epidemic as some of you yawned did it cross your mind that you might be tired? So consider that yawns are emotionally contagious too, simply by writing the word yawn I can create a feeling in your mind.

Isn’t that interesting, what does that mean for retailers ? – Well, it goes some way to explain the resurgence of products with union jack flags on them for instance, and they’re really coming into fashion now, at a time when supporting team GB is really rather vital.

It explains the national indulgence with things vintage and shall we say “pre-loved” and the green effect – all side factors of a recession economy.

But the real value in the great yawn debate is the realisation that big changes can follow small events. We seem hard wired to think that the link between cause and effect must be massive. We are trained to think that if we want to communicate that we love someone for instance we must speak passionately, if we are angry we should communicate this loudly (Eastenders anyone? Could anyone be in any doubt someone is angry on that TV programme?)

But sometimes big changes follow from small events, and they can happen very quickly… There is a tipping point for virus’s, ideas and even for recessions – have you noticed the more balanced news reporting (locally at least) on the recession recently? There comes a point where everyone is literally sick of the bad news and journalists start casting around for good news stories to tip the balance from going too far in the wrong direction.

So what should you do about the yawn factor? Simple, anything you can that’s going to increase your chances of things tipping in your direction….. get yourself in the paper, write a blog, re-do your window, freshen up your approach, get a haircut , anything that makes you feel good, so you radiate this positive approach, because small things can create big changes, talk to your neighbouring shops, create a trade association, get on the council so you can vote against increasing car parking charges…. ! Whatever it takes !

If you’re in any doubt about the power you have, consider the yawn factor, and when you’re sat in that local council meeting just turn to your neighbour and yawn, and once you realise the power of this, you’ll have to take the superhero charter, and promise to only use your power for good, because yawning is the small stuff, there’s lots of big stuff you can do too…!

Remember the power of the yawn !

New recession trends emerging for retailers…

Monday, February 16th, 2009

What's your USP?

What's your USP?

Now that the last of the snow is disappearing, and that distraction is finally melting away, its time to look ahead at what 2009 has to offer us. 

I can’t say that there are any hugely positive signs in the general economic outlook and with unemployment at its highest for 12 years, the increase in this sector will inevitably filter through to consumer spending. Adding to the woes are the recent epic weather conditions, which means February so far is not too cheerful, so whatever gains we had in January are slipping through retailers fingers. This coupled with the weakness of our sterling currency is really making for some very dull reading…

The knee jerk reaction to all this doom news seems to be : Expect an abrupt halt in consumer spending, with credit becoming harder to obtain and consumers being forced to live within their means.  While its clear that less will be spent overall, as there’s less available to spend, what are interesting to watch are the trends developing within consumer spending.

Initial trends emerging are:

  • At home, is preferred to going out, at least within certain demographics, the home will become more of a centre for entertaining and watching movies. Also in uncertain times the security of a home becomes more important, so people are more likely to paint or decorate as they’ll be spending more time at home than usual.
  • While shoppers are increasingly price conscious, they are more prepared to shop around on price and deals, convenience is becoming a luxury in itself.
  • The supermarkets are reporting consumers “trading down” eg a “finest” shopper might move down to an own brand range, but not necessarily jump ship to Aldi…
  • Treats and luxuries are still on the shopping list, but they’re of a lower value than in previous years.

So, what do these emerging trends mean for retailers?

Truthfully, there’s no glaringly simple right answer, the experts extol us to continue advertising in a recession, while managing costs, issues of branding and not panicing ! Which is easy for them to say !

So I’m advocating a more measured approach that’s more viable for a small business:

Concentrate on niche marketing,

Fabulous customer service

Highlight the VALUE in our products,

oh, that and having a word with him upstairs for some weather that doesn’t involve snowboots and balaclavas…