Retail Remedy

Driving Sustainable Profit Growth

January 11, 2011

Entering the Dragons’ Den

At Retail-Remedy we are often asked if we can support people making presentations to retailers in order to get their product listed. Our experience with buying teams and new product development means we are well placed to offer the guidance that sees people make a success of their product. It is however not always straight forward and each product or concept needs to be viewed in-line with the retailer’s total range. That said good lines will always find a way if presented well.
We are very proud of the work we have done with Kirsty Henshaw, owner of Worthenshaws-freedom http://www.worthenshaws-freedom.co.uk/. Kirsty had a great product that she had worked hard to develop and simply needed to understand how best to approach larger retailers. Kirsty’s appearance on Dragons’ Den was a seminal moment for Worthenshaw’s and all the tough questions we had asked Kirsty meant she was well prepared for any interrogation from the Dragons.

Dragons’ Den makes compelling TV as you see people’s hopes and dreams put up against the stark light of commercial feasibility. Often these hopes and dreams are washed away because entrepreneurs fail to seek an objective viewpoint of their product, its market and how to launch it.
Having recently engaged with another Dragons’ Den survivor we recognise the publicity that appearance on the programme can give, unfortunately the programme editor can make this either very good or very bad publicity. Making sure that you have already been exposed to the rigours of a broad spectrum of detailed questioning will ensure that even if the money is not offered ,the entrepreneur comes away with their head held high and a boatload of potential investors having seen a great performance.

We believe that we provide perfect armour from any Dragon, whether they are on the telly or in a retailers buying office, possibly as we have worked in times past with so many Dragons ourselves!

December 12, 2010

Emma Reed (ex-Asos.com exec) joins Retail-Remedy as Lead Buying and Merchandising consultant.

Retail-Remedy Ltd today confirmed that Emma Reed would be joining the team as Lead Consultant for Retail Buying and Merchandising. The role hands Emma a wide remit within the business – including, supporting a number of the businesses key clients with their UK and International Buying strategies.

The appointment, confirmed that a significant part of Emma’s role would be to ensure the continued development of Retail-Remedy’s service portfolio across all geographies. Emma Reed said: “I am delighted to be joining Retail-Remedy”…. “It is exciting to be with a company that is focused on supporting retailers deliver sustainable profit growth and enhanced consumer shopping experiences”.
James McGregor, of Retail-Remedy, said: “I am pleased to welcome Emma on board. Her extensive experience, in Buying and Merchandising, is exactly suited to our current client requirements and will help us deliver, at pace, even greater profit returns for our clients going forward”.

About Emma Reed

Emma has a wealth of buying and merchandising experience, with some of the most prestigious UK fashion retailers. Emma joined Asos.com in 2005 as part of the original buying team, taking the business from £10M per year to being the biggest UK independent online fashion retailer at over £250M. Instrumental in building their branded offer, Emma was also responsible for launching their own label fashion brand and became a member of the ASOS.com executive board. Emma brings a wealth of buying and online experience and takes pride in helping others develop their skills in buying, brand selection, product development, merchandising and negotiation.

July 14, 2010

UK promotional retail strategies and their use

The Grocer recently wrote on the continuing use of promotions by the big grocery retailers and suggested that execution varied greatly. Their article entitled “Waitrose shines amid promotional shambles” rated Waitrose as the most professional on implementation and Asda the worst of the top 5.  Our view at Retail-Remedy is somewhat different.  As customers are becoming increasingly promiscuous, no longer is the nearest supermarket the obvious choice with press and TV advertising enticing people into bargains and creating a nation of cherry pickers. Safeway’s demise was in part due to their insistence in a high low retail pricing strategy that meant busy action alley Wednesdays each week, with the rest of the store a museum.

Getting off the drug of promotions should be led by those with a sincere EDLP (Every Day Low Price) retail strategy, but the truth is the likes of Asda (and to a lesser degree Tesco) have abandoned their EDLP stance to stop Morrisons and JS becoming the exciting places to shop.  Reducing cost and easing operation through EDLP retail strategies may make great sense but it is not sexy to suppliers or customers.  Asda’s price perception is ahead of the pack and looking at its action alley it communicates value the clearest, although it does suffer at times from inconsistent retail standards and end displays that are mixed in their individual sku value and with inevitable trading floor changes this position is likely to continue.

When Retail-Remedy reviewed the promotional execution of the big 4, our observations were that if Morrisons could communicate their deals as powerfully as Asda, both on ends and down the aisles they would improve sales and price perception. They might have execution right, but it is executing mixed messages on price and deals that can be confusing to customers. Our instinct is that Richard Hodgson will bring improved promotional communication to Morrisons. We believe that the improved communication methods we expect to be implemented at Morrisons will reward those suppliers who can deliver a full end offer that hangs together on product relationship and deal type.

It looks like the promotional battle will intensify rather than recede. Where does this leave EDLP retail strategies?  On the back-burner until a brave retailer can break the cycle of promotional promiscuity, the Asda Price Challenge was such an attempt but their promotional strategy has not abated suggesting a half hearted effort.

June 6, 2010

Consumers and the Brand

After a retail strategy meeting, we sat Phil Dorrell down and asked him for his take on consumers’ focus on brand.

More and more, consumers look to the brand and its brand values for reassurance as to quality, security and value for money. Consumer spending will focus on ‘reason to buy’, not ‘impulse to buy’. The brand is the key element in the purchasing decision.

Brand awareness is desperately important but it’s not the whole story – in the States, everyone knows General Motors, trouble is no-one is buying their cars! Consumers are responding to brand differentiation – attaching meaning and value to the brand to increase its weight in the purchasing decision. Brands need to stand for something; they cannot afford to be vague in their offer. Developing brand differentiation is the key to improving long-term sales growth and customer advocacy.

So, Phil, how do we achieve brand differentiation?

The landscape for any brand tends to be misted over with a cloud of generic features claimed and owned by all players. To rise above this cloud means convincing the consumer that you are different from the crowd, that your offering is the one to meet their requirement or their hopes.

You can’t just add statements of value to your marketing – if you make any statement about your offering, they have to be believable and authentic. Consumers are becoming ever more sophisticated and see through insincere claims and inappropriate endorsements. Any retail strategy has to be built on recognising that consumer engagement only comes with authenticity – and engagement is the key to sales. Brand building is a precious endeavour and Companies need to ensure that nobody in the organisation delivers less than the brand values, consistent delivery is essential.

If that’s the case, how do we deliver ‘authenticity’?

Do you mean ‘we’ as in retailers or retail consultants? Be specific about what you deliver and make sure all the people in your organisation support this 100%. The amount of web-sites now offering no differentiation between one retailer and another suggest everybody is playing too safe and there is definitely space for some bolder claims.

New technology is now not only the product, it is the medium as well! The online experience is less and less under the control of retailers or corporations, the market now exists as a series of communities. Social networking, Ebay, business networks all present massive opportunities – especially if you can gain endorsement from the community itself, recommending the brand. Ignoring or misusing these markets and the way they operate cuts off the blood supply to the brand. Twitter users will spend more money on the internet than non-users. We (now I really mean retail consultants!) need to show retailers how to integrate this customer orientation into every aspect of brand building and customer care – then we can strengthen and lead brands into the future.

So, how should Retail Marketeers respond to these challenges?

Retailers need to deliver on three main areas in order to capitalise on the changes that the internet offers:

  • How clear is the brand differentiation and how consistent is this delivered? What is the brand promise?
  • What platform is most effective to your current and future customers?
  • How does the brand promise get delivered in the real world and what is the buy-in from the front line customer service staff?

I would urge retailers to be bold, get buy-in and build a brand that stands out to your customers!

May 2, 2010

Phil Dorrell joins Retail-Remedy as Lead Retail Consultant for Branding and Marketing.

Retail-Remedy Ltd today confirmed that Phil Dorrell has joined the team as Lead Retail Consultant for Branding and Marketing. The role hands Phil a wide remit within the business – including, supporting a number of the businesses key clients with their UK and International branding objectives.

The appointment, confirmed that a significant part of Phil’s role would be to ensure the continued development of Retail-Remedy’s service portfolio across all geographies. Phil Dorrell said: “I am delighted to be joining Retail-Remedy”…. “It is exciting to be with a company that is focused on supporting retailers deliver profit growth and enhanced consumer shopping experiences”.

James McGregor, of Retail-Remedy, said: “I am pleased to welcome Phil on board. His extensive experience, in Marketing, Branding and Retail Operations, is exactly suited to our current client requirements and will help us deliver, at pace, even greater profit returns for our clients going forward”.

About Phil Dorrell

Phil Dorrellhas over 30 years retail experience working in the UK for Safeway and Asda. Phil’s previous roles include Head of In-store Experience, Head of Marketing Operations and Head of Food Marketing Operations at Asda/ Wal-Mart.  Phil’s diverse experience gives him a clear perspective on store operations, branding and marketing. Having helped Asda become the best value retailer in the UK he is keen to pass on his expertise to help other retailers grow sales profitably.

About Retail-Remedy Ltd

Retail-Remedy Ltd specialises in operational improvement for the retail sector.  The business focuses on all elements of operational change including; Store Planning, Category Management, Branding and Marketing, retail execution, service and bespoke training. The teams exposure covers programme delivery in EMEA, NCSA, APAC and India. Visit www.retail-remedy.com.

September 13, 2009

India’s retail issues ….. An interview with the CEO of Costa Coffee India – published in this months RLI

India’s food and grocery retail infancy has not been without it’s teething problems. James McGregor, Director or Retail-Remedy interviews Santhosh Uni, CEO of Costa Coffee (INDIA), to find out more…

costa-interview3

June 8, 2009

Is cost and price reduction the only way to survive within a recession?

Most retailers (who are still trading) have responded to the recession through cost reduction and margin improvement programmes, which, as a retail improvement consultancy we applaud, albeit with caveats.




As consumers become more restrictive on what and how they spend.  Retailers, who invest in their brand through a recessionary period, have the opportunity to profit whilst others fail.  It has been proved time and again that a strong brand is the most important asset a company has when recession strikes.  In fact, retailers with strong brands can profit from recessions, as lesser companies turn inwards and fail to spend.


Look at Intel!  Intel’s famous campaign, using the ‘Intel Inside’ slogan and labelling, began in July, 1991, right in the middle of the recession. That did more for Intel’s branding than any single campaign before or since. They weren’t the only ones, and success at that time came to those with the balls and the acumen to do it. The same will be true of this current recession.


Harvard Business School professor John Quelch, writing in The Financial Times, says: “Instead of cutting the market research budget, you need to know more than ever how consumers are redefining value and responding to the recession.” Quelch also points out: “It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”


When it comes to branding through the downturn the key to success is in maintaining focus;


1. Continue to deliver a positive brand image within your sector

2. Maintain or increase your brand visibility within the market place

3. Communicate brand stability to your existing audience

4. What are the opportunities to share your risk with brand partners


The following points may be obvious to most retailers, but reflecting on them is always of value;


1. What are your customers looking at your brand to deliver for them at this specific point in time?

2. What is your completion doing and are you in a position to anticipate what they will do next?

3. What emphasise are you placing on your core proposition and its value to your customer?

4. Are you maintaining the quality of your products and services?

5. Are you keeping your customer base engaged


We all need to make the most of every dollar spent in supporting our brand through this challenging period, but also have to consider that without effectively communication we simply become another brand on another shelf!

May 22, 2009

Andy Bond President of Asda Wal-Mart gives a direct warning to retails on cost controls and understanding the changing face of consumers.

At the first Annual Retail Lecture conducted by the BRC (British Retail Consortium) Andy Bond President of Asda, discussed the changing landscape of retail and a shift in customer attitude towards value “There appear to be increasing signs that we may be at the bottom of the cycle and green shoots may be appearing. But don’t let this fool you. While consumers may be ready to shop again, the recession will have definitely created a good degree of long-term behaviour change.”

 

According to Bond, consumers are beginning to revaluate what and how they purchase; retailers will no longer be able to drive higher margins through so called ‘specialist’ categories, Bond quoted that the organics industry is negative 30% yoy whilst ASDA is positive 25%.  This gap he feels is driven from the fact that ASDA is not boosting its profit margins by charging the customer a premium for its organics range.  

 

Customers want choice, quality and service but will not pay an unnecessary premium for it, retailer’s margins have to come into line and they will have to keep costs down by thrift.

 

Bond warned retailers that whilst we will see an upturn within the economy, consumers expectations will change forever; the consumer of the future will be more empowered, creative and will seek transparency; most of all the consumer of the future will demand value. For those companies who do not embrace this shift, he told, “you’re living in the past and in the future you may not be here”.

May 20, 2009

Marks and Spencer – Times of opportunity or concern?

As Marks and Spencer announced a drop in UK like-for-like sales of 5.9%; with falls in GM and food at 6.9% and 5% respectively, how much time does  Ian Dyson really have to implement the ‘2020’ change program that he has been tasked with?    

Marks & Spencer’s UK sales have dropped by 1.7%, whilst its overall sales grew by 0.4%, thanks to the 25.9% increase in international sales.  Last year, the adjusted profit before tax was £1.09bn whilst this year’s results see a drop to £768.9m.

The Board has taken the last six months to review the business and layout its long term strategy.  Ian Dyson has been entrusted with the responsibility of leading the ‘2020-Doing the Right Thing’ change program, which is set to refocus the Company’s brand communication, accelerate change, focus on international expansion and multi-channel development.

As the Group’s final dividend for 2008/09 has been reduced to 9.5p, how long does Dyson and Sir Stuart Rose really have to deliver a positive step change that their customers will respond too?

May 18, 2009

Should we be resentful of value retailers or should we learn from their business models?

Retail-RemedyAs volume and value retailers continue to gain market share, is there really a future for retailers who are not able to compete on price or deliver a true point of difference to their customer?

Many articles have been written discrediting value retailers and the dominance they have within the market place, however, the simple fact is, love them or hate them customers are turning to them to deliver a better return on the money in their wallets. Is it therefore imperative to understand how they achieve such a dominate position within the market, and what are the lessons retailers can take when reviewing their business models?

My view, having worked with value retailers for +20 years is that they are not driven by costs; instead they drive a culture of excellence, quality and continual improvement. Cost elimination then becomes a derivative of this focus.  Value retailers never stand still long enough to accept complacency or their market position.  Whilst many companies are now working on tactical strategies to reduce costs, the very best value retailers see this as part of their business model, irrespective of the current trading conditions and economic/global climate.  Hence as trading becomes increasingly more difficult they have the ability to focus on existing and new customers rather than fighting the fire that has begun to consume most retailers engine rooms.  Whilst exec. teams of many retailers are in the war room discussing the best way to baton down the hatches, and determining how the business will operate with a 20% resource reduction, value retailers are able to focus on how to attract a greater customer base.

In summary,  the retailers that will come out of the recession strongest are those that review all that they do, respond quickly to the need for change, invest in their people, focus on quality and meeting the changing demands of customers, and do all they can to eliminate waste and provide value.  For those retailers that have joined this shift towards delivering customer value, don’t through your strategy away through this difficult period, instead, embrace it, communicate it, and empower your teams to work faster to deliver it.