» Latest news on retail management http://www.retail-remedy.com/blog Fri, 10 Jun 2011 11:27:24 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Small Format Development News http://www.retail-remedy.com/blog/2011/06/small-format-development-news/ http://www.retail-remedy.com/blog/2011/06/small-format-development-news/#comments Fri, 10 Jun 2011 11:27:24 +0000 admin http://www.retail-remedy.com/blog/?p=127 Can the four leading supermarkets use their Format Development to expand in an increasingly contested market place?

As Tesco, Asda, Sainsburys and Morrisons fight for customers this summer it seems that some of these leviathans are better placed than others to make the best use of their Format Development and expand in an increasingly contested market place. Tesco have all the options to open in any market and have reaped the reward of a well-developed Format Development strategy that has been much publicised.  Sainsburys have a similar if not as compelling offer and have small store experience in the ranks from their acquisitions.

Asda and Morrisons are both playing catch-up and have been forced to deliver quickly following the acquisition of Netto. As previously Blogged, Morrisons 3 week turn-around of the Netto store at Armthorpe is very impressive. The end result shows a format that works from a profitability point of view (if the counters generate consistent trade) and maintains a strong price message with the action alley portraying a strong price message, albeit highly promotional. Asda have executed a very similar format and now have to work on how they can make it profitable. They also have opted to have an action alley to allow for promotional strength yet have not the benefit of a higher price structure for small stores, nor have they the level of non-food range, propping profit up like it does in their larger formats. Asda have more to gain getting this right with the number of Netto stores they now have; interest in Iceland seems a brave move when they have not yet resolved the issues they have on small store availability and service. Our view would be that Morrisons are better placed to make more of any future acquisitions and that Asda could well end up being confronted by an operational legacy that drains resource and does not help the brand.

Clearly neither Asda nor Morrisons are able to close the gap on Tesco or Sainsuburys, yet Asda do have a very efficient and blossoming home-shopping option that gives them access where stores are difficult to place. Morrisons would argue that they have more stores and can improve headroom in them to deliver more, which is of course only partially true. They need an improved format expansion more than any of the other Retailers and seem to have made a great start with their small stores. The next 18 months will see the small stores come into the battle amongst the big 4 like never before.

As Tesco, Asda, JS and Morrisons fight for customers this summer it seems that some of these leviathans are better placed than others to make the best use of their format and expand in an increasingly contested market place. Tesco have all the options to open in any market and have reaped the reward of a well-developed format strategy that has been much publicised. JS have a similar if not as compelling offer and have small store experience in the ranks from their acquisitions.

Asda and Morrisons are both playing catch-up and have been forced to deliver quickly following the acquisition of Netto. As previously Blogged, Morrisons 3 week turn-around of the Netto store at Armthorpe is very impressive. The end result shows a format that works from a profitability point of view (if the counters generate consistent trade) and maintains a strong price message with the action alley portraying a strong price message, albeit highly promotional. Asda have executed a very similar format and now have to work on how they can make it profitable. They also have opted to have an action alley to allow for promotional strength yet have not the benefit of a higher price structure for small stores, nor have they the level of non-food range, propping profit up like it does in their larger formats. Asda have more to gain getting this right with the number of Netto stores they now have; interest in Iceland seems a brave move when they have not yet resolved the issues they have on small store availability and service. Our view would be that Morrisons are better placed to make more of any future acquisitions and that Asda could well end up being confronted by an operational legacy that drains resource and does not help the brand.

Clearly

As Tesco, Asda, JS and Morrisons fight for customers this summer it seems that some of these leviathans are better placed than others to make the best use of their format and expand in an increasingly contested market place.  Tesco have all the options to open in any market and have reaped the reward of a well-developed format strategy that has been much publicised.  JS have a similar if not as compelling offer and have small store experience in the ranks from their acquisitions.

Asda and Morrisons are both playing catch-up and have been forced to deliver quickly following the acquisition of Netto.  As previously Blogged, Morrisons 3 week turn-around of the Netto store at Armthorpe is very impressive.  The end result shows a format that works from a profitability point of view (if the counters generate consistent trade) and maintains a strong price message with the action alley portraying a strong price message, albeit highly promotional.  Asda have executed a very similar format and now have to work on how they can make it profitable.  They also have opted to have an action alley to allow for promotional strength yet have not the benefit of a higher price structure for small stores, nor have they the level of non-food range, propping profit up like it does in their larger formats. Asda have more to gain getting this right with the number of Netto stores they now have; interest in Iceland seems a brave move when they have not yet resolved the issues they have on small store availability and service.  Our view would be that Morrisons are better placed to make more of any future acquisitions and that Asda could well end up being confronted by an operational legacy that drains resource and does not help the brand.

Clearly neither Asda nor Morrisons are able to close the gap on Tesco or JS, yet Asda do have a very efficient and blossoming home-shopping option that gives them access where stores are difficult to place.  Morrisons would argue that they have more stores and can improve headroom in them to deliver more, which is of course only partially true.  They need an improved format expansion more than any of the other retailers and seem to have made a great start with their small stores.  The next 18 months will see the small stores come into the battle amongst the big 4 like never before.

As Tesco, Asda, JS and Morrisons fight for customers this summer it seems that some of these leviathans are better placed than others to make the best use of their format and expand in an increasingly contested market place.  Tesco have all the options to open in any market and have reaped the reward of a well-developed format strategy that has been much publicised.  JS have a similar if not as compelling offer and have small store experience in the ranks from their acquisitions.

Asda and Morrisons are both playing catch-up and have been forced to deliver quickly following the acquisition of Netto.  As previously Blogged, Morrisons 3 week turn-around of the Netto store at Armthorpe is very impressive.  The end result shows a format that works from a profitability point of view (if the counters generate consistent trade) and maintains a strong price message with the action alley portraying a strong price message, albeit highly promotional.  Asda have executed a very similar format and now have to work on how they can make it profitable.  They also have opted to have an action alley to allow for promotional strength yet have not the benefit of a higher price structure for small stores, nor have they the level of non-food range, propping profit up like it does in their larger formats. Asda have more to gain getting this right with the number of Netto stores they now have; interest in Iceland seems a brave move when they have not yet resolved the issues they have on small store availability and service.  Our view would be that Morrisons are better placed to make more of any future acquisitions and that Asda could well end up being confronted by an operational legacy that drains resource and does not help the brand.

Clearly neither Asda nor Morrisons are able to close the gap on Tesco or JS, yet Asda do have a very efficient and blossoming home-shopping option that gives them access where stores are difficult to place.  Morrisons would argue that they have more stores and can improve headroom in them to deliver more, which is of course only partially true.  They need an improved format expansion more than any of the other retailers and seem to have made a great start with their small stores.  The next 18 months will see the small stores come into the battle amongst the big 4 like never before.

neither Asda nor Morrisons are able to close the gap on Tesco or JS, yet Asda do have a very efficient and blossoming home-shopping option that gives them access where stores are difficult to place. Morrisons would argue that they have more stores and can improve headroom in them to deliver more, which is of course only partially true. They need an improved format expansion more than any of the other retailers and seem to have made a great start with their small stores. The next 18 months will see the small stores come into the battle amongst the big 4 like never before.

]]> http://www.retail-remedy.com/blog/2011/06/small-format-development-news/feed/ 2 Retailers need to improve Customer Service Training to improve Customer Retention http://www.retail-remedy.com/blog/2011/02/retail-training/ http://www.retail-remedy.com/blog/2011/02/retail-training/#comments Tue, 01 Feb 2011 22:18:12 +0000 admin http://www.retail-remedy.com/blog/?p=117 In the current financial climate many Retailers and Service Providers are looking to make cutbacks or increase revenues, usually at the expense of the customer.  One of the major cutbacks seems to be Customer Service Training, as Mary Portas has proved in her mission to bring good Customer Service back to the High Street.

When a customer interacts with your business face to face, phone, website or e mail are they merely satisfied or delighted by the service they receive?  Every interaction with a customer is an opportunity to make a difference and surprise the customer by not just meeting their needs but exceed their expectations.  Investing in Retail Training of staff has been proved to give better financial results.

Companies that invest in the development of their staff get good results, returning customers, motivated staff and a boost in new business due to word of mouth.  Retailers that recognise that good customer service increases profits take an advantage above their competitors who give poor service.

Shopping is one of the nation’s favourite pastimes however, when approached by a pushy Sales Person, being ignored or just being given the wrong information can become frustrating.  Many people do not complain because they feel that their voice will not be heard, they can’t be bothered with the hassle and the result being that they will not use that company again and tell everyone they know about the service they received hence losing more customers.  Businesses need to recognise that a complaint is the best form of feedback, giving an opportunity to turn a dissatisfied customer into a satisfied customer who will return due to the service they have received.

Many companies outsource their Training or Evaluations of their service to companies that have experienced Retail Consultants with a wealth of knowledge of working within the Retail sector.

James McGregor Managing Director of Retail Remedy Ltd explained the difference of in house training and outsourcing “In house training can be quite costly, many of the training staff have been promoted from within, not had the right training and have biased opinions of what is right and wrong with customer service” he went on to say “Working with a good Retail Consultancy; you are getting specialists who have many years of experience of working within Retail, they will be honest and forthright about how you can improve on your service to your customers, you will also cut costs whilst improving profits”

Customer Service is much more than just courtesy; it is about going that extra mile for your customer helping them find the right products, services that exceed their need and helping them to enjoy the experience of their purchase.

]]> http://www.retail-remedy.com/blog/2011/02/retail-training/feed/ 98 Mary Queen of Shops http://www.retail-remedy.com/blog/2011/01/mary-queen-of-shops/ http://www.retail-remedy.com/blog/2011/01/mary-queen-of-shops/#comments Wed, 26 Jan 2011 18:14:26 +0000 admin http://www.retail-remedy.com/blog/?p=113 During the month of January, we have been reflecting the challenges that the last year has given to many of our customers and how we can help them ensure the best possible year ahead.

Undoubtedly the Economic Climate has been tough for all and yet the difference between those who have floundered and those who have flourished is about their operation, more than global financial meltdown. The Christmas reports are littered with CEO’s suggesting the weather has cost them dear and gearing up for that New Year profits warning. There are also traders who have done themselves proud and despite increasing online competition, customers who are controlling a budget and inclement weather they have delivered growth.

Our Retail Reviews are always an interesting time, where the real issues are often clouded by the Retailers long held beliefs’ and lack of customer engagement. This clouding can create a challenging time and we always come back to the customer as the main weapon in our armoury in convincing retailers of the need to change where required.

Our “Mary Queen of Shops” reviews can deliver really ground breaking changes in the way that the retailer engages with his customers and how they understand the direction they need to take. Some of the concepts are best exampled and role modelled in store whilst others need a Retail Workshop environment to get beneath the skin and make the changes needed.

We are really proud that following requests we have now just completed our Retail Workshop structure and placed our updated workshop brochure on the website. It contains all those lessons learnt over many years of Retailing and in the last year that we have applied to some of our smaller to medium sized customers. We strongly believe that planning the journey is the start and our Strategy and Planning workshops create challenge, stimulation and tools to build an effective strategy that delivers. It takes Leadership to execute strategy so that was our next logical step in workshop development; we take this seriously but having had our fill of corporate Leadership Training Courses, we cut to the chase.

Branding and Marketing is something we are often engaged to assist with and again we cut the BS out of the  Branding and Marketing workshop and tell it straight for all levels.

Good Retailing is nothing if Buying and Merchandising is not right and our workshop on this reflects the online position as well as the traditional retailing aspects, run by Retail Experts you will learn! The same Retail Experts who run our Buying course are also our best negotiators and having worked for some of the hardest negotiators in the business they will create that win / win on our Negotiation Workshop. Our Visual Merchandising Training Course reflects the experience we have within clothing, food and non-food. The most important workshop is last, where would we would be without customers? Our customer Service workshops are more than the traditional smile and say nice things stuff but a way to create true advocacy within your current and future customers, in short it is brilliant!

Mary Queen of Shops Blog

As 2010 is left behind and the first glimmer of 2011 is upon us, we were reflecting the challenges that the last year has given to many of our customers and how we can help them ensure the best possible year ahead. Undoubtedly the economic climate has been tough for all and yet the difference between those who have floundered and those who have flourished is about their operation, more than global financial meltdown. The Christmas reports are littered with CEO’s suggesting the weather has cost them dear and gearing up for that New Year profits warning. There are also traders who have done themselves proud and despite increasing online competition, customers who are controlling a budget and inclement weather they have delivered growth.

Our retail reviews are always an interesting time, where the real issues are often clouded by the retailers long held beliefs’ and lack of customer engagement. This clouding can create a challenging time and we always come back to the customer as the main weapon in our armoury in convincing retailers of the need to change where required. Our “Mary Queen of Shops” reviews can deliver really ground breaking changes in the way that the retailer engages with his customers and how they understand the direction they need to take. Some of the concepts are best exampled and role modelled in store whilst others need a workshop environment to get beneath the skin and make the changes needed.

We are really proud that following requests we have now just completed our workshop structure and placed our updated workshop brochure on the website. It contains all those lessons learnt over many years of retailing and in the last year that we have applied to some of our smaller to medium sized customers. We strongly believe that planning the journey is the start and our Strategy and Planning workshops create challenge, stimulation and tools to build an effective strategy that delivers. It takes Leadership to execute strategy so that was our next logical step in workshop development; we take this seriously but having had our fill of corporate leadership courses, we cut to the chase. Branding and Marketing is something we are often engaged to assist with and again we cut the BS out of the Branding and Marketing workshop and tell it straight for all levels. Good retailing is nothing if not good Buying and Merchandising and our worksh

Mary Queen of Shops Blog

As 2010 is left behind and the first glimmer of 2011 is upon us, we were reflecting the challenges that the last year has given to many of our customers and how we can help them ensure the best possible year ahead. Undoubtedly the economic climate has been tough for all and yet the difference between those who have floundered and those who have flourished is about their operation, more than global financial meltdown. The Christmas reports are littered with CEO’s suggesting the weather has cost them dear and gearing up for that New Year profits warning. There are also traders who have done themselves proud and despite increasing online competition, customers who are controlling a budget and inclement weather they have delivered growth.

Our retail reviews are always an interesting time, where the real issues are often clouded by the retailers long held beliefs’ and lack of customer engagement. This clouding can create a challenging time and we always come back to the customer as the main weapon in our armoury in convincing retailers of the need to change where required. Our “Mary Queen of Shops” reviews can deliver really ground breaking changes in the way that the retailer engages with his customers and how they understand the direction they need to take. Some of the concepts are best exampled and role modelled in store whilst others need a workshop environment to get beneath the skin and make the changes needed.

We are really proud that following requests we have now just completed our workshop structure and placed our updated workshop brochure on the website. It contains all those lessons learnt over many years of retailing and in the last year that we have applied to some of our smaller to medium sized customers. We strongly believe that planning the journey is the start and our Strategy and Planning workshops create challenge, stimulation and tools to build an effective strategy that delivers. It takes Leadership to execute strategy so that was our next logical step in workshop development; we take this seriously but having had our fill of corporate leadership courses, we cut to the chase. Branding and Marketing is something we are often engaged to assist with and again we cut the BS out of the  Branding and Marketing workshop and tell it straight for all levels. Good retailing is nothing if not good Buying and Merchandising and our workshop on this reflects the online position as well as the traditional retailing aspects, run by experts you will learn! The same experts who run our Buying course are also our best negotiators and having worked for some of the hardest negotiators in the business they will create that win / win on our Negotiation workshop. Our Visual Merchandising course reflects the experience we have within clothing, food and non-food. The most important workshop is last, where would we would be without customers? Our customer Service workshops are more than the traditional smile and say nice things stuff but a way to create true advocacy within your current and future customers, in short it is brilliant!

op on this reflects the online position as well as the traditional retailing aspects, run by experts you will learn! The same experts who run our Buying course are also our best negotiators and having worked for some of the hardest negotiators in the business they will create that win / win on our Negotiation workshop. Our Visual Merchandising course reflects the experience we have within clothing, food and non-food. The most important workshop is last, where would we would be without customers? Our customer Service workshops are more than the traditional smile and say nice things stuff but a way to create true advocacy within your current and future customers, in short it is brilliant!

]]> http://www.retail-remedy.com/blog/2011/01/mary-queen-of-shops/feed/ 128 Emma Reed (ex-Asos.com exec) joins Retail-Remedy as Lead Buying and Merchandising consultant. http://www.retail-remedy.com/blog/2010/12/emma-reed-ex-asos-com-exec-joins-retail-remedy-as-lead-buying-and-merchandising-consultant/ http://www.retail-remedy.com/blog/2010/12/emma-reed-ex-asos-com-exec-joins-retail-remedy-as-lead-buying-and-merchandising-consultant/#comments Sun, 12 Dec 2010 14:47:50 +0000 admin http://www.retail-remedy.com/blog/?p=94 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.

]]> http://www.retail-remedy.com/blog/2010/12/emma-reed-ex-asos-com-exec-joins-retail-remedy-as-lead-buying-and-merchandising-consultant/feed/ 102 Striking the balance between Customer satisfaction and Employee Engagement….a priority for business? http://www.retail-remedy.com/blog/2010/07/striking-the-balance-between-customer-satisfaction-and-employee-engagement-a-priority-for-business/ http://www.retail-remedy.com/blog/2010/07/striking-the-balance-between-customer-satisfaction-and-employee-engagement-a-priority-for-business/#comments Mon, 26 Jul 2010 10:57:55 +0000 admin http://www.retail-remedy.com/blog/?p=91 People Management (http://www.peoplemanagement.co.uk/pm/articles/2010/07/sainsburys-appoints-gwyn-burr-to-top-hr-role.htm) recently reported on Sainsbury’s decision to merge the HR Director and Customer Director roles at Board level which has raised some eyebrows in both the retail and HR communities.  But should it?  As retail experts we understand completely that the customer is king but for customers to feel that way, employee skill sets should be developed to reflect this, enabling the enhancement of the dialogue and experience between retailer and customer.  Talent management, career planning and succession planning are all established processes in large companies but small businesses should also take note of the fact that striking this balance can absolutely provide a competitive advantage.  Any HR Tool Kit should have a customer service slant that shows the connection between engaged employees who have been well inducted, trained, coached and developed and the ROI demonstrated through excellent customer service and ultimately a positive effect on the bottom line through increased sales.

No other major retailer has an equivalent role to that created by Sainsbury’s.  Innovation in business is the way to success and as Business Consultants feel that more businesses should take note.  However, that doesn’t mean ‘bolting’ on the HR piece to a role that focuses on the customer.  For real business benefit this focus needs to be truly integrated into the responsibilities and, more importantly, accountabilities of the role.  It might be as simple as developing a programme of Helping Managers to Manage or looking at the culture of the company – listening to what employees have to say through climate surveys can have an incredible impact on employee engagement and motivation.  If employees truly feel valued, listened to and part of the business then their resultant relationship with customers will be optimised and enhanced.

But, at Retail Remedy we wonder whether companies should think about the cost of not thinking about “people” in the rounded context of business.  In the current climate many businesses who have an excellent blueprint are failing.  The product and price may be excellent, location a plus but without the people element being effectively addressed it can mean the difference between survival, coupled with potential future growth and shutting up shop.

Whilst it may be about viewing figures for the mainstream channels, Mary Queen of Shops and Ramsey’s Kitchen Nightmares have both shown that without the right people with the right knowledge, skills and attitude, failure isn’t too far away.

So whichever viewpoint you favor, companies ignore the value of managing and developing people and employee engagement at their peril.

]]> http://www.retail-remedy.com/blog/2010/07/striking-the-balance-between-customer-satisfaction-and-employee-engagement-a-priority-for-business/feed/ 124 UK promotional retail strategies and their use http://www.retail-remedy.com/blog/2010/07/uk-promotional-retail-strategies-and-their-use/ http://www.retail-remedy.com/blog/2010/07/uk-promotional-retail-strategies-and-their-use/#comments Wed, 14 Jul 2010 09:17:53 +0000 admin http://www.retail-remedy.com/blog/?p=86 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.

]]> http://www.retail-remedy.com/blog/2010/07/uk-promotional-retail-strategies-and-their-use/feed/ 2 Marks and Spencer – Times of opportunity or concern? http://www.retail-remedy.com/blog/2009/05/marks-and-spencer-%e2%80%93-times-of-opportunity-or-concern/ http://www.retail-remedy.com/blog/2009/05/marks-and-spencer-%e2%80%93-times-of-opportunity-or-concern/#comments Wed, 20 May 2009 16:01:30 +0000 admin http://www.retail-remedy.com/blog/?p=15 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?

]]> http://www.retail-remedy.com/blog/2009/05/marks-and-spencer-%e2%80%93-times-of-opportunity-or-concern/feed/ 0