High Street Futures
As more and more town centres reflect the fortunes of some large retail brands with fading facia boards on empty shops you have to ask how is it that some town centres are thriving and others are dying. Local councils are desperate to maintain a retail centre for their towns and the desire from the communities is one of similar support. How is it then that so many towns are unable to provide an attractive retail offer. Excuses abound from both the large retailers and independents of declining customer numbers and their disposable income spend, however looking at the large out of town retail shopping centres the numbers and spend still seems healthy.
Six...

• Total sales for 4th quarter up 4.6 %
• Like for like sales for 4th quarter up 2.5%
• Like for Like sales for the year up 4.5% (2.1% excluding fuel)
• 7.3% gross space growth in the year

The top line all sounds rather good and no doubt is being positioned as such by their dynamic and media savvy leader Justin King. Our view is perhaps a little more balanced. These figures have to be taken into the context of the current retail landscape and in this respect JS have rarely had it so good. They are head to head with Tesco more than any other retailer and we have all heard much of the trauma that has affected the largest UK...

The recent results (15th March 2012) for HRGshow reasons for concern, something anticipated by all those who watch the high street and its operation. It is all well and good reflecting on the lack of sales and the pressured market in both its Homebase and Argos formats but if you wanted to know the reasons for their decline you really only have to look at their stores.

Homebase were gifted a much easier market place when Focus folded and with B & Q making hay whilst the sun shone it seems Homebase sat back and tried to improve the business efficiencies rather than tackling the route of their problem. They suffer in a similar fashion to Wickes, good marketing, some good prod...

As 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 t...

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 entru...

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 ‘special...

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 famou...

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 gr...

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 – at...

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 Wedne...

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 busi...

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 sustainab...

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...

Of all the overused and misunderstood terms there is little doubt that Strategy is the most often quoted. Retail-Remedy has worked with some large retailers who surprisingly would not be able to articulate their Strategy but have merely fallen into the business path on which they tread. Red faces have followed questions about the direction and they only get redder when asked about the customer imperatives that have guided that direction. Yet in truth Strategy should be one of the easiest things to do in business, small businesses started usually in a response to a perceived need, understanding the continuance and evolution of that need is fundamentally what Retail Strategy is.

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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 we...

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 s...

Retail Advice

I tweeted some time ago that Retailers can be categorised into two types depending on how customers see them and use them, clearly I exaggerate to make a point however in essence the principle is true, if you are a Retailer you are either a chip shop or a hairdresser!

Most of will be familiar to moving to a new town and trying to work out where the best chip shop is located, usually this means that some of the early visits are not as good as you wanted and you quickly move on to the chip shop with the huge queue outside on a Friday tea time. You are persuaded by the improved quality and/or service an...

As availability for supermarket new build becomes limited and increasingly expensive it is no surprise that both Asda and Morrisons look toward small Format Development in order to continue footage growth. Asda, who are no stranger to Format Development for small stores, sold 16 of the original 195 Netto stores to it’s Yorkshire rival for £28.1M.  With only 47 of the 195 having to be sold on, Asda clearly need to get their format working as it has never done before and we loo...

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 fro...