Supermarket Sweep

I find the latest figures from Kantar Worldpanel that report the UK's top clothing retailers as the following, somewhat depressing:

1. Marks and Spencer
2. Primark
3. Asda
4. Tesco
5. Next
6. Matalan
7. Sainsburys.

I'm disappointed that only M&S is keeping Primark off the coveted spot of UK's top clothing retailer, and no less than horrified that the supermarkets' successful encroachment on yet another non-food sector means they now make up nearly half of this list.

It's not snobbery- I think the concept of 'fashion democracy' in which no-one is excluded from making the fashion choices and statements they want on the grounds of price, is important, and a great step forwards that has come about primarily because of the rise of value retailers. They are great at providing both extremely keenly priced goods, which of course is more important when the income is ever squeezed further, and also, fast turn-around of items 'inspired' by catwalks and celebrities. As such, value retailers have a crucial spot on the retail landscape.

But in the quality vs price trade-off, I feel that these retailers put the emphasize very, very firmly on the later. Cheap prices typtically (but of course not always) go hand-in-hand with relatively poor quality, lack of customer service, questionable supply chain values, bad store layout, limited design input in some cases, the list goes on.

And with the supermarkets in particular, this is yet another category they are muscling in on, and arguably now starting to dominant, which will inevitably be at the expense of smaller and or dedicated category retailers, as we have seen in other sectors already.
And any lessening of competion weakens the market for you and I, as there is less incentive to improve quality, design, supply chain values, shopping experience and so on, if the retailers who still prioritise these values, fall by the wayside.... 

And then we'll miss them when they're gone.

We're all doomed!

That's right- It's all over the papers this morning- retail sales positively collapsed last month, with the largest year on year slide since 1995, according to the BRC-KPMG Sales Monitor.
Total sales were down 1.9% on the year, but the bad news doesn't stop, with like-for-like sales down a whopping 3.5%, and internet sales growing at their slowest rate since records began (which admittedly sounds a little more dramatic than it actually is, given that 'records' only began in 2008...!)

Big falls on areas as diverse as clothing, homeware, electrical, food and drink, books... with the only growth category being... somewhat mysteriously, footwear (although it should be noted that those were frequently discount driven purchases).

But why so glum, shoppers? Well, whilst the late timing of Easter is a factor, this is only a small part of the story, as high inflation, low wage growth, increasing fuel and utility costs, higher VAT, falling house prices, and uncertainty about future job cuts and tax rises all contribute towards a reduction in not just consumer's disposable income, but their confidence and willingness to spend money also..

That's all far too depressing for a Tuesday morning, so where is the sunshine amongst all this rain?
Well- with the feel-good factor running high in the coming weeks with the royal wedding, and more bank holidays then you can shake a stick at, retailers can hope for some much needed good news as optimistic customers prise open their dusty wallets, probably for bbq gear, burgers and booze, summer clothing, memorabilia and so on..

Also... Research group Springboard report that footfall in town centres and High Streets across the UK rose by 7.8% in March compared with the previous month, leading their Chief Exec Steve Booth, Springboard's to observe that "Whilst it is early days, this starts to tell a positive story about how consumers are returning to their local High Streets".

Thus, there is hope yet, although it is now clear that it is no less than our duty to enjoy each and every one of  those imminent bank holidays- so party like it's not 2011, your retailers need you!

Changing Faces..

Some statistics from the BBC to chew over- on the number of vacant stores in the UK and the nature of the remaining retail outlets, painting a fascinating picture of how both the downturn, and our evolving consumer habits, are changing the face of your local High Street.

So how accurately do you think this reflects your local High Street? Is it awash with supermarkets, discount stores, hairdressers and charity stores? I'd say this rather succinctly sums up those that I am familiar with.

Overall, shop vacancies are up from 10.5% to 14% this year report retail analyst Local Data Company, as the impact of the economic downturn continues to be felt,  but the rate of emptying stores is thankfully slowing down. A town I know well- Altrincham in Cheshire is, it transpires, the very worst individually hit town in the country- with 29.6% of shops empty. But if you know the area I'm sure you didn't need to be told this- the considerable decline of this formerly smart high street was obvious.

Somewhat unsurprisingly  off-licenses, and to a lesser degree travel agents have been particularly badly hit through the U.K.- well we all book our holidays online these days, and our booze from Tescos, so inevitable they are struggling.

The recession has however also contributed to the success of discount retailers such as Poundland, and of course the charity shops, who are able to operate profitably in tertiary sites where retailers might fear to tread, due to their low operating costs (it's easier when you have charitable status and don't have to pay your staff!).

The other interesting observation is that the nature of purpose of your High Street seems to be changing. It used to be the hub of the town, catering for your every purchasing need as you went about your week. Now we have huge supermarkets, shopping centres, and of course the internet to fulfil these requirements, cheaply and efficently. So the High Street becomes more of a hobby- a way to pass the time, providing those services that you simply cannot get online- as the butcher, baker and candlestick maker are replaced by the hairdresser, the coffee shop, and a Subway.

So what can we do? Well change is inevitable of course, but if you are lucky enough to still have a broad range of retail outlets on your high street, you simply must support them. The bookshop may be more expensive than Amazon, the wineshop might not do two for £10 like in Sainsburys, and the boutique might have a much narrower range than Topshop- but I tell you what- you'll miss them when they're gone.

Your High Street Needs You!

See All Her Faces went dark over the last few weeks, but I'm back now! I was in mourning, because a lovely little gift shop has closed recently on my local high street- the second one since I moved to the area. In fact the first one was featured in the Evening Standard as one of the 'secret finds' in London, around a fortnight before it had to shut up shop for good.

So clearly- Houston we have a problem.

It is a well-publicised fact, that the humble high street has been in decline for a long while now. The rise of out of town mega supermarkets, which cater not only to your every food whim at a low cost, but also now provide clothes, home furnishings, electronics etc etc, mean that some time ago it became part of our weekly routine to drive to the supermarket and stock up, rather than pick up bits as and when from our local stores- who we found in comparison to have  too limited, and too expensive, a range.

And then the fight-back began- for a number of reasons- a realisation that if we didn't look after our high street it wouldn't be long before it was all charity shops and KFCs, an appreciation of the quality of product coming from local, specialist vendors (meat, fruit and veg, unique furniture or clothing etc), an environment (and financial) awareness also- of reducing one's own consumption and waste by buying little and often, and reducing food miles by spending our pound on more locally sourced ingredients; and finally, a migration towards that which we know and trust, and which knows us, in uncertain times.

So if, as the campaign goes, we now all 'Love Your Local High Street', why are shops still closing?
They have a captive audience, due to their proximity and thus convenience, they have a customer base which is alot more switched on to supporting local business, for both altruistic reasons and plain old self interest.... Yes there is a tough economic climate- but any stores who couldn't survive that closed long ago, as things are getting better rather than worse at the current time....
There are a few reasons why some local retailers still have some work to do to get you to spend your money with them.... And as ever, it's all about the customer.

1. Knowing the Customer.
The customer should be at the heart of everything a good retailer does, whatever their size. Every decision should be made with the end purchaser in mind, and whether it will enhance their shopping experience, and make them more likely to buy and to return. In order to do this you must 'know' your customer. Who are they, what sort of things do they like, what are they comfortable spending, how often do they shop, how long do they shop for, who inspires their choices and decisions... the list is endless.

This is a lot more difficult for the big boys, who do not have the opportunity to know or interact personally with the customer walking through the door (or clicking through on the web), and as such they must rely on sales performance/web stats, market research, and data derived from loyalty schemes (which they place a huge premium on- so remember how much you are personally helping Tescos in exchange for your Clubcard vouchers)  in order to figure out who you are and try to sell more stuff to you.  .

Small businesses have a huge advantage here- they have the potential to interact with every customer who walks in the door, a unique opportunity to observe and better understand their customer base and their habits- to guage what their customer base looks like, which products they are interested in, how they shop, and to build spend and ultimately loyalty, based on the product and service they provide.
But they don't always use it. A clothes store I know serves quite a young, relatively wealthy area, and has a constant stream of trendy ladies desperate to spend the money burning a hole in their pocket. Yet I rarely see anyone buy anything because the store simply doesn't cater to their needs-,they have no representation of this seasons' trends and a huge very retro vintage section that doesn't cater to the tastes of the locals... Perfext example of a Buyer selecting products they like..

2. Serving the Customer.
 And then we come to something else that should be a no-brainer for small businesses- Customer Service. Again an area that large retailers are notoriously weak on (apart from the saintly John lewis one hastens to add), this is rather difficult to succeed on with inexperienced, poorly trained, un-motivated staff. It should be so much easier with a friendly expert on hand, with an interest in helping you make your purchase decision.
Local retailers have the chance to make you feel valued and welcome the moment you walk through the door (and you don't get that at Tescos). They can advise and inspire you and thus gain your trust and loyalty (regardless of perhaps an increased cost)- what you could make with those broad beans, what belt might look good with that dress, which model of laptop you should be going for....
And yet- How many times have you been in a local store, where you have either been harrassed, or ignored, when you might have happily discussed the product, or what you were looking for, given the chance? There is another clothes store close to me, with beautiful dresses, that I never go in since the day I tried one on and got the hard sell from the couple who owned the shop, pushing me to spend £250 on two dresses!

3. Doing it Better than the Competition.
And finally- learning lessons. Successful retailers are constantly looking outside themselves to find ways they could improve- looking at things their competitors are doing well, whether that is new products, cheaper prices or innovative services. To stay ahead of the game you need to know what everyone else is doing, and offer something different, something better. Those managing small businesses need to be cogniscent of what their competitors are doing- even the big ones, so that they are one step ahead of the game,, and to understand if it is something they should also be doing, or whether they have a point of difference that renders it un-necessary. And one thing we now know is it isn't necessarily about price anymore- people ar ewilling to pay if they feel they are getting a good deal. So if the other shops are reducing their prices on electronics do you need to? Maybe, if you want to stop them taking some of your sales, or maybe not, if yours are high quality, and the sale comes with expertise and service that marks you out from the rest. But either way you need to know what they are doing and why you are/aren't.

So, too late for my local gift shop then, but as the high street evolves, maybe something even better will take it's place. Here's hoping that doesn't mean a KFC....