Retailers

newman10

Hi All

Sitting here having a Coffee, pi***d off and tearing my hair out.

Would love to hear different opinions on what is happening out there and how are Retailers are managing. Will you be in business 9 months time

madmik

newman10 wrote: »

Hi All

Sitting here having a Coffee, pi***d off and tearing my hair out.

Would love to hear different opinions on what is happening out there and how are Retailers are managing. Will you be in business 9 months time

if you have cut every possible corner? and still are risking closure then i do sympathise for you

im not making record profits but im still managing to retain a healthyish margin

it took a recession to actually me break down the business into minute segments and figure out cheaper alternatives for everything

before we were just paying the asking price for anything we needed and not even bothered to shop around when the dough was rolling in

now we take extraordinary measures to cut costs that i wouldnt have even dreamed of before the recession

newman10

Still cutting and T/O has stabilised, now working 7 day weeks with a semi dissafected family but my post begs the question

How are things out there and does anyone see light at the end of the tunnel

How far down is T/O

Did you leave staff go

Are staff on Short time

Are you getting better prices from suppliers.

Can you get credit

How are you affected by people going North/Internet/Discounting

Any thing else that you may want to share.

Alcatel

Depends what you're selling and the context within you're selling it. If you're a franchised cornershop you're hemmed in what you can do. If you're running your own shop you can do more, and you can also push more ideas.

I think that what you - and any business - need to do is look at what opportunities are there to make yourself remarkable and attract business. Like the Godin example about the U.S. bank that attracted people to its ATM machines by randomly putting $100 bills into the $20 bill slot, to generate buzz and develop a novelty (using their ATM's for the craic and the gamble) into a behaviour.

Or, in retail, making yourself special somehow, depending on what your business is. Go very boutique, make it an experience to shop with you; or change your product line, or whatever.

I think that focusing entirely on cutting costs as the solution - go into your shell and stay there - is the wrong approach. Yes, give it serious attention. But you have to beat the drums for new business.

What type of an operation are you running?

Also, what kind of a financial position are you in? To answer specific questions:

How are things out there and does anyone see light at the end of the tunnel

I saw January being the worst month. April is the best I'm having all year and the first in a while where I'm exceeding my budgeted expectations, even if it's a tight budget. I put it down to people getting used to the situation, the shock of budgets having gone by, and also clever marketing and wildcat fighting.

How far down is T/O?

At this point comparing to 08, or even better, 07, is no good... You gotta redefine your business for the new situation. Cutting prices is what everyone is doing. If you're using the words "Recession Buster!" in anything, you're just a part of the noise. People expect that now.

Did you leave staff go

Are staff on Short time

Yes and yes. It's a business, not a friendship. And the available workforce is far more flexible to different working conditions. Take that onboard. It might not apply to you, but for example I've got telesales people doing cold calling donkey work for field sales guys, and they're on commission only. Sounds sharp? It is. But they're better off than the guys out in the rain running around trying to sell you Sky for the same deal.

Are you getting better prices from suppliers.

Can you get credit

Yes and yes, but it depends on your business. Re: suppliers, it again depends on where you are. But fight them tooth and nail and remember, when you're in the jungle the enemy is just as afraid of snakes and annoyed by the heat and humidity as you are. They can take pain on pricing too, just stick to your guns and push them all the way till they say "No." And then push a little more, just to see.

How are you affected by people going North/Internet/Discounting

64 million dollar question. You gotta fight back not on price exclusively, but on what you offer. Soft marketing tools that cost you very little. Another example of this I just thought of is the sweetshop near the US-Canadian border that sells a wide selection of really old fashioned stuff you thought you couldn't get anymore. Average spend per customer? $100. On sweets...

Any thing else that you may want to share.

I know it's tough, and I feel your pain. You gotta take a step back every now and again and take a really good hard look at the wider picture. And keep heart.

newman10

Thanks for the replys but I do not mean for this thread to be specific to me but to the retail tradeand how we as an industry are managing. As an Industry we employ a significant amount of people but as an industry we have been disregarded and are constantly accused of being Rip Off Merchants.

Sonnenblumen

As an industry the Irish retail industry is far from professional and frequently marketing and promotion initiatives are lacking or even crude. Sure the high street operators are progfessional and slick but plenty of retailer environments are crass and compare poorly to their European equivalents.

Shopping ambiance is basic, prices are high (but not rip-off) but certainly the customer experience is paying high for little in return.

There are exceptions and those retailers are great success stories. I don't think the recession is necessarily bad for all, but the loss of a few runts would be no bad thing.

newman10 wrote: »

Thanks for the replys but I do not mean for this thread to be specific to me but to the retail tradeand how we as an industry are managing. As an Industry we employ a significant amount of people but as an industry we have been disregarded and are constantly accused of being Rip Off Merchants.

blue4ever

Newman –

Fair fcuks to you for bringing up a particularly sensitive subject for you.

I heard today that T**** are going to bypass our own wholesale system and ship all their stuff from the UK – I believe the rot begins there.

I think you should approach the powers that be here and see if you could set up a thread for retailers? I think you would all benefit from it.

C

newman10

Sonnenblumen wrote: »

As an industry the Irish retail industry is far from professional and frequently marketing and promotion initiatives are lacking or even crude. Sure the high street operators are progfessional and slick but plenty of retailer environments are crass and compare poorly to their European equivalents.

Shopping ambiance is basic, prices are high (but not rip-off) but certainly the customer experience is paying high for little in return.

There are exceptions and those retailers are great success stories. I don't think the recession is necessarily bad for all, but the loss of a few runts would be no bad thing.

Thanks for the reply but would you care to tell who you feel are professional and who are the runts and how are we to compare with our European equivalent. Just a few comparisons

Super Value - Tesco - E leclerc

Arnotts - Debenhams - John Lewis

Elverys Sports/Lifestyle/Champion - JJB/JB Sports/Sports Direct

Cant think of too many Independent Retailers in the UK/France/Germany because they have all been wiped out by big box retailers

Sonnenblumen

newman10 wrote: »

Thanks for the reply but would you care to tell who you feel are professional and who are the runts and how are we to compare with our European equivalent. Just a few comparisons

Super Value - Tesco - E leclerc

Arnotts - Debenhams - John Lewis

Elverys Sports/Lifestyle/Champion - JJB/JB Sports/Sports Direct

Cant think of too many Independent Retailers in the UK/France/Germany because they have all been wiped out by big box retailers

I'd rather not be brand specific but enough to say that the success of the multiples nationally and internationally is much to do with customer centric but sophisticated business modelling. This is very evident when multiples contiue to be successful when expanding overseas.
Within the grocery trade there was onmly until relatively recently one Irish multiple that could compare very positively (and this was endorsed/acknowledged by the international business community) with overseas rivals.

Within the independent sector (incidentally it is still a significant proportion of the German market, plenty of market intell available if you need stats), the irish product is often crude and basic. The customer experience is generally sub-standard and does not encourage repeat visits. For example, how often do we encounter security staff at main entrance? A necessary evil perhaps, but do they need to meet and greet all customers? Their attitude and general body language is often very off putting to the extent that I would avoid any store with 'bud type bouncers'.

This approach is extended also by store staff who at best are undertrained and greatly under motivated, probably coming back to employers attitude towards staff, business costs (where everything is seen as 'an expense' or overhead), and maximising the bottom line (when done poorly it manifests itself as crude greed).

Instaed of trying to cultivate customer loyalty it seems stores (especially the smaller types) are more likely and willing to screw the customer today and let's worry about tomorrow, tomorrow!

Irish customers are more easily persuaded (sometimes conned) by the apparent bargains, and this almost exclusive focus on price allows other entrants from abroad into the market. Fooled by gimmicks but long term there are very significant downsides to buying predominantly imported product from stores that have little or no national interest. But that's a different point.

Why are shopping parks so successful? It has rarely anything to do with price, in fact prices are probably higher? It has much to do with treating the customer with respect, by presenting a very positive but convivial shopping environment, and when customers are happy and respected, they are more likely to spend money.

Meanwhile 'backward' thinking stores, still thinking 'warehouse' presentation will increasingly struggle because more and more they will be forced to compete on price and margins will be squeezed. A very good example in my opinion is the typical family owned and managed furniture shop. Many have more in common with animal feed store presentation and the sooner they're gone the better.

Finally, Germany is an excellent example of where independents can compete of course not on price but on expertise whilst offering an enjoyable shopping experience.

newman10

Sonnenblumen wrote: »

I'd rather not be brand specific but enough to say that the success of the multiples nationally and internationally is much to do with customer centric but sophisticated business modelling. This is very evident when multiples contiue to be successful when expanding overseas.
Within the grocery trade there was onmly until relatively recently one Irish multiple that could compare very positively (and this was endorsed/acknowledged by the international business community) with overseas rivals.

Within the independent sector (incidentally it is still a significant proportion of the German market, plenty of market intell available if you need stats), the irish product is often crude and basic. The customer experience is generally sub-standard and does not encourage repeat visits. For example, how often do we encounter security staff at main entrance? A necessary evil perhaps, but do they need to meet and greet all customers? Their attitude and general body language is often very off putting to the extent that I would avoid any store with 'bud type bouncers'.

This approach is extended also by store staff who at best are undertrained and greatly under motivated, probably coming back to employers attitude towards staff, business costs (where everything is seen as 'an expense' or overhead), and maximising the bottom line (when done poorly it manifests itself as crude greed).

Instaed of trying to cultivate customer loyalty it seems stores (especially the smaller types) are more likely and willing to screw the customer today and let's worry about tomorrow, tomorrow!

Irish customers are more easily persuaded (sometimes conned) by the apparent bargains, and this almost exclusive focus on price allows other entrants from abroad into the market. Fooled by gimmicks but long term there are very significant downsides to buying predominantly imported product from stores that have little or no national interest. But that's a different point.

Why are shopping parks so successful? It has rarely anything to do with price, in fact prices are probably higher? It has much to do with treating the customer with respect, by presenting a very positive but convivial shopping environment, and when customers are happy and respected, they are more likely to spend money.

Meanwhile 'backward' thinking stores, still thinking 'warehouse' presentation will increasingly struggle because more and more they will be forced to compete on price and margins will be squeezed. A very good example in my opinion is the typical family owned and managed furniture shop. Many have more in common with animal feed store presentation and the sooner they're gone the better.

Finally, Germany is an excellent example of where independents can compete of course not on price but on expertise whilst offering an enjoyable shopping experience.

Do I get the feeling that as an Small Independent Non Food Retailer that I am a waste of space to you trying to screw to next customer out of all they are worth.

In over 15 years I have built up a loyal customer base, the children of some of my first customers are now buying product so I do feel that I am giving aa excellent service.

Do you want a Big Box offering wherby all you can get in the Main St is a cup of coffee/newspaper/euro shop or do you want a thriving Retail Sector which bring life to Towns and the employment which goes with it.

Or would you prefer that us smaller people gave us the ghost or continued to fight on

Sonnenblumen

newman10 wrote: »

Do I get the feeling that as an Small Independent Non Food Retailer that I am a waste of space to you trying to screw to next customer out of all they are worth.

In over 15 years I have built up a loyal customer base, the children of some of my first customers are now buying product so I do feel that I am giving aa excellent service.

Do you want a Big Box offering wherby all you can get in the Main St is a cup of coffee/newspaper/euro shop or do you want a thriving Retail Sector which bring life to Towns and the employment which goes with it.

Or would you prefer that us smaller people gave us the ghost or continued to fight on

Well for starters before embarking on a crusade, perhaps you can read what I posted! What you do is your decision.

drunkmonkey

Sonnenblumen wrote: »

Why are shopping parks so successful?

Free Parking?

1Liter of Milk in Lidl €1

1 Liter of Milk in the Local Centra - €1 + €1 parking ticket for the local council.

don't even mention the vat, minimum wage, rates, levys etc...

Rex Manning

newman10 wrote: »

Do I get the feeling that as an Small Independent Non Food Retailer that I am a waste of space to you trying to screw to next customer out of all they are worth.

In over 15 years I have built up a loyal customer base, the children of some of my first customers are now buying product so I do feel that I am giving aa excellent service.

Do you want a Big Box offering wherby all you can get in the Main St is a cup of coffee/newspaper/euro shop or do you want a thriving Retail Sector which bring life to Towns and the employment which goes with it.

Or would you prefer that us smaller people gave us the ghost or continued to fight on

From my own experience I find that the bigger retailers seem to emphasise customer service (a couple of posters touched on it before). I think this is something in itself isn't a big thing but it's absence is a bigger issue. If the person on the till is rude/ignorant/disinterested, I'm more likely to look for other things that are wrong with the store and probably focus on the cost of things. I think that it's harder for independent places to get their staff to focus on customer service as they know their staff better than their customers (spend more time with their staff over the course of the day as opposed to a customer who comes in, gets a paper and leaves after a minute). This may make it awkward for some people to point out mistakes to their staff as it may lead to confrontation.

For bigger/multinational stores, they'll have given thought to customer service and make sure the staff know the importance of keeping the customers happy adn treating them well. Of course there'll be exceptions to this but often times I've gotten a more cheerful checkout person in LIDL compared to the local/independent shop.

DubTony

As this thread is ony a week old I don't feel bad bumping it.

Sonnenblumen, you seem to have a real problem with retailers in this country. I'd love to know what your real issue is. As for this post, there are so many contradictions in it, it's very difficult for me to respond seriously. Maybe you'd like to let us know what the root of your disdain toward retailers is.

Sonnenblumen wrote: »

I'd rather not be brand specific but enough to say that the success of the multiples nationally and internationally is much to do with customer centric but sophisticated business modelling. This is very evident when multiples contiue to be successful when expanding overseas.
Within the grocery trade there was onmly until relatively recently one Irish multiple that could compare very positively (and this was endorsed/acknowledged by the international business community) with overseas rivals.

Within the independent sector (incidentally it is still a significant proportion of the German market, plenty of market intell available if you need stats), the irish product is often crude and basic. The customer experience is generally sub-standard and does not encourage repeat visits. For example, how often do we encounter security staff at main entrance? A necessary evil perhaps, but do they need to meet and greet all customers? Their attitude and general body language is often very off putting to the extent that I would avoid any store with 'bud type bouncers'.

This approach is extended also by store staff who at best are undertrained and greatly under motivated, probably coming back to employers attitude towards staff, business costs (where everything is seen as 'an expense' or overhead), and maximising the bottom line (when done poorly it manifests itself as crude greed).

Instaed of trying to cultivate customer loyalty it seems stores (especially the smaller types) are more likely and willing to screw the customer today and let's worry about tomorrow, tomorrow!

Irish customers are more easily persuaded (sometimes conned) by the apparent bargains, and this almost exclusive focus on price allows other entrants from abroad into the market. Fooled by gimmicks but long term there are very significant downsides to buying predominantly imported product from stores that have little or no national interest. But that's a different point.

Why are shopping parks so successful? It has rarely anything to do with price, in fact prices are probably higher? It has much to do with treating the customer with respect, by presenting a very positive but convivial shopping environment, and when customers are happy and respected, they are more likely to spend money.

Meanwhile 'backward' thinking stores, still thinking 'warehouse' presentation will increasingly struggle because more and more they will be forced to compete on price and margins will be squeezed. A very good example in my opinion is the typical family owned and managed furniture shop. Many have more in common with animal feed store presentation and the sooner they're gone the better.

Finally, Germany is an excellent example of where independents can compete of course not on price but on expertise whilst offering an enjoyable shopping experience.

Sonnenblumen

DubTony,

I'm sorry my post was so challenging, would have thought my points were accurate but obvious.

But you've missed them.

Let me simplify matters for you, I don't have any principle problem with Retailers (Irish or otherwise). However I do despise Retailers which have a low regard/interest for the 'customer experience'. This might sound strange for Momma Poppa 'Independent' Retailers, but IMO, it is relevant to all businesses and all retailers. There are of course exceptions, but sadly they are a minority.

Get it now?

DubTony

Sonnenblumen wrote: »

DubTony,

I'm sorry my post was so challenging, would have thought my points were accurate but obvious.

But you've missed them.

Let me simplify matters for you, I don't have any principle problem with Retailers (Irish or otherwise). However I do despise Retailers which have a low regard/interest for the 'customer experience'. This might sound strange for Momma Poppa 'Independent' Retailers, but IMO, it is relevant to all businesses and all retailers. There are of course exceptions, but sadly they are a minority.

Get it now?

Nope. Your attitude toward retailers (and I'm talking avout retailers on this forum as well) has shown that you have an underlying problem. If I get a chance later I'll address your post above. In the meantime i must take my kids to a couple of retail stores here in Dublin. I need to buy some kids clothes so I reckon I'll have to dig through lots of muck to get at what I'm looking for because of the lazy, useless staff. Actually, I am absolutely positive that the shopping experience will be enjoyable, and the staff will be nice. Where I come across a not so friendly member of staff I'll try to plant a seed of happiness. Maybe something might grow from that, but I have a feeling that it will probably be just because that person is having a bad day (but sure not everyone can be full of sunshine and roses all the time). I'll be visiting both large and small stores, in retail parks and on main streets. Maybe I'll let you know how I get on.