Archive for the ‘recession’ Category

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 !

Forward motion….

Sunday, February 13th, 2011

Going forward

Going forward

So we’re sliding into February, but most of us are still gingerly feeling our way into the New Year, apprehensive about what it’s going to bring. The good news is scant, there’s job cuts, price rises on just about everything, and the weather is miserable and damp, nothing exciting to really put a spring in your step.

If your New Year’s resolutions have already taken a bit of a beating, how about looking forward into 2011 and putting some forward motion into it.
What’s forward motion? Well, It’s basically movement towards something – the something is up to you. Towards a goal, or an opportunity or a decision, the movement is the important part. This year looks like the big toughie for retail, so faced with a choice of staying where we are and doing what we’ve always done, we just have to keep moving forward. Choose forward motion !

Of course, forward motion might not always be the best choice, obviously you’re going to make a few duff decisions along the way, but at least you’ll be making them. In our frantically paced world with so much information readily available, it’s still hard to get all the information we need to make a secure decision, so we agonise over the details. In reality our gut decisions are usually the right ones, but they’re hard to justify.

The more choices we have the harder it is to make a decision. So I’m advocating that it’s better to make the best possible decision you can with the information you have available, comfortable in the knowledge that if you’ve stuffed it up this time, you can choose something else next time.

When in doubt… choose forward motion !

There’s so much information available, that ultimately it just becomes a personal choice of what to focus on. Why focus on the negatives, which are often exaggerated, instead of the positives?
There are two main reasons. Firstly, we tend to focus on the sensational and the dangerous. One sensational anecdote about a store robbery or completely outrageous customer, outweighs a year’s worth of “I went to work and it was pretty much the same as usual.”

Secondly, choosing to focus on the negatives gives everyone else an excuse not to pursue big dreams and goals either.
There are plenty of people who’ll feed your fears and worries, but really, often they’re talking more about themselves and their lives than what’s good for you…. Psychologists call this a process of projecting, ie they project their fears onto you, but the double whammy is that this keeps you in your place and ultimately reaffirms their view again because you didn’t move on either !

If you’re looking for an excuse not to do something, you really don’t have to look far. Playing it safe is not usually a mockable choice - Everyone understands it.
But all things considered, good things can come from bad experiences too, in fact that’s often where we learn the most.

So, if you’re still prevaricating and pontificating on why you can’t change anything in 2011, just consider the following success stories

• Leo Tolstoy wrote War and Peace while living in a small house with his wife and thirteen children. Yes, that’s thirteen children !

• Walt Disney was a failed, bankrupt, small-time advertisement man before he came up with Mickey and friends.

• J.K. Rowling wrote Harry Potter whilst on the dole. Her first book was rejected by twelve publishers.

• e.e. cumming’s first book of poetry was rejected by fifteen publishers. He self-published it, and well, you know the rest…

• Abraham Lincoln lost multiple jobs, went bankrupt, and failed in numerous bids for public office before being sworn in as the 16th President of the United States.

• Mary Anne Evans living in truly sexist times, had to change her pen name to George Eliot, whereupon she became one of the most beloved English novelists of all time.

Dissatisfaction with something, such as your shop or your accountant for example isn’t necessarily a bad thing. Dissatisfaction can be a force for change.

Dissatisfaction results “from contemplating what falls short of our wishes or expectations” The funny thing here is that we’ve all got these wishes or expectations but we don’t usually acknowledge them, maybe we’re not even aware of them.

So, my next question, to keep the forward motion, well, in motion really, is :

What are you working on?

Hopefully, you’re working on something that’s big, that’s going to take you to the next level, that gets you excited, so excited that you can’t wait to tell everyone about it.

No matter what your work is, no matter what you do, there’s a way to create a project that has you buzzing with excitement about it, where something big, fun and new that might make a difference is just around the corner….

Not a budget for business ….

Sunday, April 26th, 2009

Small comfort for small businesses ...

Small comfort for small businesses ...


Having had a little time to review the Chancellors budget (not my favourite weekend activity) it looks like overall, it was a bit of a missed opportunity. While the borrowing figures of £175 billion (and that’s just this year) with £173 billion next year, are enough to make me feel a bit giddy. There’s the news that economy is going to shrink by 3.5% to digest too…

With such big borrowing sums being bandied about, its small wonder that there’s small support for our small businesses.

Missing in action was a reduction of employers’ National Insurance contribution rate and tighter government control over bank charges(which would have been nice!).

There was no extension of VAT reduction to 15 per cent for a further 12 months and there were only a few real high points.

1. Main capital allowance has doubled to 40%, which is helpful for those of us investing, as we all know that cashflow is the numbero uno in the priorities list, particularly in a recession.

2. An extension of the three year carry back means that loss-making businesses can reclaim tax on profits made in the last three years, this should help lots of small businesses.

3. Business rates: The spread of uplift is a positive move for small businesses.

4. VAT threshold increased: While the extension of the reduction didn’t happen, the raising of the threshold to £68,000 at least means that many small businesses will fall outside the VAT bracket.

5. The introduction of a top-up supply chain insurance to help companies protect themselves against non-payment.

But there were also some nasty surprises for those of us wondering why we do in fact bother?

1. The 2p rise on fuel duty – this always has an impact on costs somewhere down the line.

2. No change to corporation tax rates with the rise from 20-21% remaining in place;

So if we cast our minds back as to why we did set up in business… if it was for the long hours and ever present responsibility, the learning how to steer a sometimes unmanageable ship in difficult waters, or the satisfaction of knowing that our bank is receiving good returns on their oh so reasonable charges….. or maybe it was because we just love giving the opportunity to the government through our employment of our staff, to increase the tax aspect of the PAYE and NI and add some more paperwork?

If, however it was to be successful and be recompensed for our hard work, then you have to wonder if the opportunity to earn, which is a stimulant for most entrepreneurs is going to seem as bright if the government is going to reserve the right to take nearly 60% in tax and NI when we do….

Ok so there aren’t many directors of small businesses who earn over £150,000 but it’s a nice dream….!

So thanks Mr Darling, but not that much !

Who’s the bogie man?

Friday, April 24th, 2009

bogieman-01-fatmanpress-nm1In the 1950s, Congressman George A. Dondero denounced modern art as a communist plot.

Every day, we hear ideas that some people are annoyed with or more likely, afraid of. And in the face of fear, people lose eloquence and start calling things names, usually names that don’t make a lot of sense.

There is a danger in labelling things, because once you give it a label, its like the wait is over. For instance if an ill patient is told that they’re about to die, chances are they will, there have been innumerable cases where members of the family have forbidden the doctors to relay the news in this way, and guess what the person lived on for several more years.

Of course, that’s illness, but I’m interested in the labelling of the “recession”

Its all in the mindset, your psychology, because sure as eggs is eggs stuff will happen, but its not the cards you’re dealt, its what you do with them ! In my local town there are now about 6 empty stores, but this week one of my favourite shops opened a new store – in a better location, and its been packed all week ! Why, because for the last three years they’ve been quietly getting on with it, building a network, building a mailing list of satisfied customers, not deviating from their USP, trying, refining and getting ready for the next step.

Did they let the “recession” stop them? The answer is a clear No !

Nothing is a communist plot any more, but there’s never a shortage of bogie men available to us, to make us afraid, steal our dreams so we can’t sleep and generally make the world a scary place.

Beware of the bogie men – they’re on your TV, they’re in the newspapers and they could be all around you !

Be careful who you listen to – make sure they’re not a bogie man !

Words create our world !

Wednesday, April 8th, 2009

Don't go on a rant fest - Get peeved instead !

Don't go on a rant fest - Get peeved instead !

Words are powerful, they enable us to describe our world, how we see it and what we’re looking at, without words we couldn’t have a shared experience. Just think, instead of this word recession we could be calling it a woobleding, or a shizkayump. Would we feel different if we had to read about a wobble in the woobleding each morning, or a shift in the shizkayump? I think we just might

We are lucky in the UK that we have such a rich language, with many layers of description and finesse. But we must be careful because the words we use shape our world…. Literally. We should be careful lest we conform to Lily Tomlin’s view that “man invented language to satisfy his deep need to complain!”

So, taking the process right back to the start, it all begins with thinking. We don’t feel then think. We think then allocate sensations to the thought process, which we then call feelings. So if you consistently tell yourself that you’re tired – you’ll start yawning and you’ll feel tired.

So the key is to stand guard on your vocabulary, I got thinking about this after a recent post on the Springfair trading talk blog. The post was about these tough times we’re in, and while I’m no Ostrich, I think there’s a danger in assigning labels. For instance the word tough, implies difficult, aggressive and unfavourable conditions.

I prefer the term “challenging” which implies something altogether more thought provoking and with some positive connotations. The dictionary describes a challenge as:
1. Calling for full use of one’s abilities or resources in a difficult but stimulating effort:
2. Absorbing; intriguing:

I believe that we would feel different about our situation if faced with a challenging time, rather than a tough time. A challenging time is one where you start to really use your head, you get creative. You look for inspiration. You are thrown down a challenge, whilst you merely suffer a tough time ! Tough implies that its bigger than you, harder than you and you’d best cower away, while challenge implies ingenuity, spirit and smart thinking…

You could argue that this is just semantics, and in a way it is, but words really do create our world – I’ll prove it to you….

Next time you’re really really mad about something, don’t have a rant fest, call in the perspective police and when asked what’s up – say “ I’m really really peeved ! ” You see, even the word is funny, it’s impossible to say this word and still be mad, you have to stop and smile.

When someone asks you how you are today, don’t give our usual British dumb answer of “I’m ok” or “I’m good” or “It hasn’t happened yet” or “still here” “hanging in” or any of that dumbness that’s just a waste of good vowels.

Try (for one day) answering “I’m absolutely brilliant! “ “Fabulous” “Wicked, top of the world – marvellous, magic, any variation of this that suits you in particular…. And tell me you don’t feel better…..! Watch your vocabulary it can literally dictate what kind of a day you’re going to have – words create our world – make sure yours is a fun and zingy one

In fact, here’s my challenge to you today, come up with 10 zingy words that make you smile when you say them, and make sure you use them in conversation with customers…. Try it, go on, it’ll be fun !

How to right royally screw it up…

Monday, April 6th, 2009

How to right royally screw it up...!

How to right royally screw it up...!

I’m a pretty positive person, I’ve worked out my ideas based on the, you’re here, I’m here, we might as well have some fun philosophy of life, and so my posts are usually positive because I really do believe that we always have a choice and there’s always something you can do – rather than sit and stew ! (rhymes are free)

So while you’re practically promised lots of positivity from me in my posts and information about how to succeed in business, I thought, just for one post, I’d venture over to the dark side….. with some brilliant ideas about how to really make life difficult for ourselves, create some problems and generally just balls it up big time!
So, here’s the caveat, obviously I don’t want you to follow this advice (lawsuits need not apply) but these gentle (ish) reminders might help us enjoy some of the common ways that we can fail…. Prepare yourself, this might hurt …….!

Hiding in fear

We’ve all been subjected to the media’s attempts to scare the bejesus out of us, and its wholly natural to feel unsure about where business is going over the next few months. Fear is the natural response to this and halting all plans and hunkering down to sit it out…. As if its all magically going to get back to “business as normal” One of the fastest ways to shoot yourself in the foot is to stop your marketing, networking and PR efforts. If you don’t do this stuff, your competition will – and you’ll be watching their brilliant efforts and feeling bad.

Not exceeding your customers expectations

Of course you’re down about business being slow. So the best thing to do is to make sure you don’t exert any extra impetus or energy to go above and beyond what your customers expect from you. After all, don’t they know there’s a recession on and we’re barely coping? If we only do the bare minimum then the customers will give us very little future business and we’ll have lots of free time for moaning, griping and complaining which will be satisfying because we knew we were right about the customers not caring anyway.

Don’t use your existing client base

Do you want a really fast and easy way to screw it all up this year? Then pay attention because this is it ! Keep hitting your head against the wall with expensive advertising to attract new customers and avoid the cost-efficient existing customers who’ve already bought from you, to whom you can cross-sell and possibly upsell. Of course, your current customers probably appreciate and need what you have to offer, but it’s so much more invigorating, putting the effort in with those mysterious other people, “the extended market” who may never buy from you. It’s a battle of wills and that’s so much more fun than a zinging x report !

Its all about me

Of course its all about you - Doh? When it comes to networking, it’s the best policy to just keep thinking about what you can get out of each one of your contacts. Don’t bother to be helpful or useful. Why should you produce fact sheets or how to guides for your customers, don’t they realise that you had to learn all this stuff the hard way, and they should too dammit !

Develop a Reputation for Irrelevance and Inefficiency

Sharp but true, each of us is a brand, just as our shops and businesses are brands, we’re the brand ambassadors – ok we don’t have Kate Moss’s clothes, or Uma Therman’s watch, but we’re brand ambassadors all the same. Some of us are quality brands that customers appreciate and buy from and others are the “Trotters Independent traders” of brands that should be avoided. To really efficiently avoid success this year we should work hard on letting our brand identities get trashed in our customers and prospective customers eyes.

We could make some promises that we can’t keep, not do what we say we’ll do, be downright argumentative, and generally maintain a bad attitude – oooh for good measure we could read the paper in the shop – that’ll show them that we just don’t care !

Make sure your staff know how annoying the customers can be

Customers, they come in when you’ve just got a cup of tea, or they want to buy something when you’ve just finished the display – and it took hours to get just right ! The nerve of them, asking questions, wanting different sizes, while your staff just want to get on with the jobs on their to do list for the day and get them ticked off, then they can have a good gossip behind the counter about what they’re having for tea or what their friend said to their other friend, or come out with useful phrases like “everything we have is out on the shopfloor” which as we all know is a winner !

Oooh, We’ve just got started, there are sooooo many ways to right royally screw it up this year. In fact, I’ve quite enjoyed writing this, I might do another one, its like therapy, but cheaper !

But I’m a balanced kind of girl, so let’s acknowledge that there are just as many opportunities for success, if you want them. It really is a glass half full, or half empty situation…. Not getting that ? – Try squinting because the situation really does depend on how you see it. So let’s stay positive, motivated and be helpful to your customers and beyond…

In the words of the great Bob Marley – “Everything is going to be alright” He also said “My feet is my only carriage, so I’ve got to push on through” So I get the feeling he would have agreed with my post ! Yeah !

Why life is like a sausage machine….

Monday, March 16th, 2009

Life is like a sausage machine !

Life is like a sausage machine !

We live in challenging times. Credit crunch, full blown recession, doom & gloom or comic relief raising £41 million, sunshine and daffodils…

What’s the truth about our situation? Simple. It’s whatever you focus on !
Whatever we think about daily determines how we feel, what we’ll do and ultimately what we’ll have.

The media are strangling the lifeblood out of the word recession and having a field day with it. But you have to ask yourself why? Have you ever noticed that the media uses negative anecdotes even when the news is primarily positive? For example: factory wins fabulous new contract ! How brilliant, but it may not be in time to prevent Dolly the duck from having to move nesting ground(or whatever) (cue sad picture of Dolly the duck).

Why do they do this? Simple, because bad news sells ! We’ve all heard this, but what does it really mean? News has to sell – it’s the primary reason for its existence, its not that they’re really altruistic, and want to make sure we’re completely informed – honestly, its not.

Bad news sells more because it creates a sense of urgency in us. We feel that we need to know more in order to prepare ourselves. Eg: you’re walking down the street and you see the newstand with the title : “Lovely evening ahead” you smile and walk. But if the sign on the newstand says “Terrible snowfrenzy coming” you’re likely to buy the paper to read about what you should do, to protect yourself and your family.

Its not really the fault of the news media – they’re simply feeding the public what the public responds to….!

So you’ve got to be careful what you allow in from this onslaught of doom and despair. Remember the old adage, Rubbish in , Rubbish out !

I love the analogy from the Minister for Inspiration : “Life is like a sausage machine” You know the old kind of sausage machine with the turning handles. Think about it, if you put into the sausage machine – despair, overwhelmed and lack of control – guess what’s going to be in your sausage !
Yep, you got it – you’ve got a sausage full of despair, overwhelm and out of control ! Tasty? Would you feed it to your staff ?

So we have to make intelligent choices about which information we allow in.

Have you noticed that in order to make yourself feel down about something you have to generalise. The economy is terrible, the customers haven’t got any money, the staff don’t care. But when you look at these things closely, they just don’t stand up – When you get specific – “the economy is terrible”. But is it really? Is it for everyone? Or are some people making a lot of money?

This is pretty hard hitting stuff, and I can imagine some of you out there asking stuff like: How can I make myself miserable Rachel?
Well, that’s easy. Focus on what you don’t have, what’s not working and why it always happens to you….!

But in all seriousness, the real and lasting danger in negative thinking, is subscribing to the belief that its crap for everyone. How we look for evidence that its rubbish for all the shops next to us, so its ok not to try then, because its just the way it is. Psychologists call this “Learned helplessness” It’s an actual social phenomenon, but the good news is that its an opt out phenomenon!

What we need in this situation is a balanced view.

3 steps to getting a clear view:
1) See it as it is. – exactly as it is, not worse because then you’ll get overwhelmed
2) See it as better than it is now.
3) Make it like you see it ! - Make a step by step plan of how you’ll get to your
vision.

Now is the time to get really curious about what you could be doing? It’s the time to focus on solutions – not problems ! Focus instead on the value you can add. Look for areas that you’re sure you can add value in.

What could you do differently? Are you doing the same things everyone else is doing? Advertising in the same places? What are you doing to make your business stand out?

We live in a time of uncertainty – we can’t look to the past for answers. The present is a very different time to the last recession of the 80’s

Now then, pay attention here, because this bit coming up is important…..!

We all posess a reticular activation system ! Yes, I bet you didn’t know you had one of those ! What on earth is a Reticular activation system I hear you ask? Lets call it RAS for short to save my fingers.
Well, its like suddenly getting a focus. Eg, It’s the feeling you get when you buy a new car, and suddenly you notice this type of car on the roads wherever you go, whereas you’d never seen any before. That’s your RAS !
My point is, that we live in an information age. We are bombarded with it, there’s so damn much of it its hard to know what we need to pay attention to and what we don’t.

The smart thing to do would be to set your RAS to your specific business questions. What do you want to accomplish? What’re your goals …? Then you’ll be looking for answers to this question.

One way to do this is by modelling. This is where you find someone who’s getting the results you want and go ask them how they do it? You tell them what you know, and ask them what you don’t know that you need to know ? For example: If you were mountain biking down a new and dangerous trail, wouldn’t you take an experienced guide with you the first time, a) to keep you safe and b) to get the maximum enjoyment out of the trip?

You can look at people or companies outside your particular sphere, in fact that’s probably the best thing to do, whether it be a tyre changer or a beautician, we can all learn from each other.

Ask a better question…!

Friday, March 13th, 2009

question_mark-1We spend our whole lives thinking, or at least we think we do. After all, what is thinking? What’s the actual process of thinking? What do we do when we’re thinking?

Well, what we actually do when we are thinking (or think we are, stay with me here) is we ask questions ! You can really see how the world breaks down into two camps from the questions people ask themselves….

For instance, If you want to lose weight and you can’t seem to, you might ask the question? Why can’t I lose weight? Then your brain will tell you “because you’re a fat pig that’s too lazy to exercise, that’s why!” So you go round again in the same old familiar circle, trying to lose weight, not really doing it, and feeling bad about it.

I’ve used the weight example because it’s one that we’re all pretty familiar with, but it could be anything: forming a new relationship, opening another shop, getting great staff…

So, given that our brains are programmed to give us the answers to the questions we ask them, (and quite brutally usually – lets face it, we all talk to ourselves much more viciously than we’d let anyone else talk to us!)

What can we do with this information? Well, the really interesting thing here is that if you want to move forward and out of the cycle of dispiriting answers, then you’ve got to start asking better questions!

So, to go back to our old fat analogy. If, instead of asking “Why can’t I lose weight?”, we had asked “What can I do to lose weight?”, we’d have got an answer something along the lines of: Exercise; eat sensibly; have a goal to aim for; a reason to be setting out to lose the weight; a losing weight partner; a trip of a lifetime as a reward etc. So, our brains know the answer to the questions, if we just ask the right questions.

So, now then - Recession ! Now that’s a word that’s pretty much guaranteed to strike fear into the hearts of full grown men and women.

Instead of us fearing the recession (and that does seem to be the national psyche at the moment) with everyone running around asking how can this be happening to me? What about my job? What will become of me?

How about we ask the question “What’s good about this recession?”

I think the answer will be along the lines of – Opportunity, a new way of looking at your business, using our brains to work out how to respond, instead of just doing the same old things we’ve always done. Shedding stock, moving resources that we should have moved a long time ago, coming out of lines that never really worked for us, but we were attached to, looking at new markets as an opportunity rather than another thing we have to do and a host of other things waiting to be explored.

Retail is changing, shops are changing, jobs are changing, technology is changing - heck, life is changing! So why would any of us think it should somehow stay the same…? If you want to move on, then you’ve got to take something on…!

In the words of Bruce Springsteen, “these jobs are going boys and they ain’t coming back!”

Another great speaker that I’ve admired for years, Jim Rohn famously said “Don’t wish it was easier, wish you were better!” - which is fabulous advice at a time like this…. So the questions we could be usefully asking ourselves are things like : What have I learnt recently? What new skills or training have I invested in? How can I develop my marketing? How can I widen my horizons and get really excited about the future?

So if you want a better answer – Ask a better question?