e sell it - retail blog

Here’s a release from the Press Association:-

Shops that hire attractive staff can put off female shoppers, according to an academic study.

Researchers found that women were less likely to buy a product if they thought the shop assistant was better looking than them.

Bianca Price, of the University of South Australia, said that many women viewed attractive assistants as “a direct social threat”.

She said: “Women are biologically competitive - if they consider that a female is a direct social threat, it may affect their behaviour in that context.

“Retailers often think that beautiful is better. In the same way they use a celebrity to endorse a product, they hire a beautiful girl thinking that it reflects the brand and that other women will want to be like her. It doesn’t always work like that - women may not consider celebrities a direct social threat, but they might consider the girl at their local shopping centre to be one.”

Ms Price studied the behaviour of a group of women aged 18 to 26 when confronted with an attractive or unattractive staff member.

She found they were less likely to buy a product if they felt the staff member was better looking than them.

Ms Price said: “Retailers need to understand that beauty can affect their bottom line. The solution lies in hiring women of all shapes and sizes, someone for each of your potential customers to relate to.”

The research was released in the week it was revealed that a student with a prosthetic arm won her case for wrongful dismissal by Abercrombie & Fitch.

Riam Dean, who was born with her left forearm missing, claimed she was forced to work in the stockroom of the US firm’s London store because she did not fit its strict “look” policy.

End of press release

OK, so there’s always some study or reseach being released which contradicts previous research/studies but I guess that if you think about it logically there may be some truth in it. Maybe you think that attractive staff boost your shop/product image? Maybe attactive females will sell better to men? Perhaps the opposite is true???

I can’t advise you which is correct but I would recommend that the best course of action is to just hire the most competant personal irrespective of their physical attributes.  After all, that’s what employment law tells us to do.

Tony Heywood - Gilcrest Services Ltd
Retail Troubleshooter
Business Turnaround and Recovery
07905 848 111
www.gilcrest.com
www.linkedin.com/in/tonyheywood2

A £5m Retail Crime Action Plan is launched today for small retailers. Grants of up to £3,000 are being offered to upgrade their security includes cash for alarm systems, metal grills and similar anti-theft devices and banknote-testing kits.

Also as part of the Retail Crime Action Plan, published today by the Home Office, shopkeepers will be able fill in an online risk assessment form to help them improve security.

The new risk assessment tool has been developed by crime prevention experts, which businesses can complete online to identify simple measures they can take to reduce the risk of crime. The online tool is available on the Home Office website and takes 10-15 minutes to complete. Retailers are then given advice on simple things they can do to improve the security of their store and who they can contact for help.

Home Office minister Alan Campbell said: “Small businesses play a vital role in our communities and I am determined to ensure that small businesses are not taken advantage of during these hard economic times, by providing real support where it is most needed.”

“From today we are providing real help to businesses with a £5 million fund to pay for improved security in the places it is most needed.”

“The Government is committed to working with industry and police to tackle the crimes that affect them such as shoplifting, anti-social behaviour and robbery, particularly during this economic downturn, where certain crimes will face upward pressure.”

Retailers will be able to bid for grants through their local crime disorder reduction partnerships (CDRPs). Groups of businesses in a certain area, such as a parade of shops, can also team up to bid for bigger grants of up to £50,000. These can be used to improve a neighbourhood with landscaping or additional lighting.

I am not sure at this stage  which geographical areas this scheme covers yet or how easy it will be claim but as, The Federation of Small Businesses claims that crimes  cost small businesses on average £13,500 per year, the assistance is most welcome.

You can check out more details and take the on-line assessment at the Home Office website here

Tony Heywood - Gilcrest Services Ltd
Retail Troubleshooter
Business Turnaround and Recovery
www.gilcrest.com
www.linkedin.com/in/tonyheywood2

Over the last few years everyone has been talking about marketing via Websites, Blogs, Twitter, Facebook, iamthenextbigthing etc that it’s easy to forget or dismiss good old-fashioned advertising.

If your outlet(s) are localised there is little to be gained by telling the whole on-line world that your Autumn/Winter collection is in-store soon. However, targetted local advertising may well be better use of time and money.

I’m sure we’ve all used the local papers but have you tried posters and billboards? It may be cheaper than you think.

Check out www.signposter.com

Try the search in your area and it will give you the places where you can put a poster, the price for 2 weeks and the weekly ‘audience’. For example, in my area I could get a ‘48 sheet’ poster with a weekly audience of 154,660 for £689 or they can do a package for £1,500 which gives you 1 poster site,  1 phone box and 2 bus shelters for £1,500 for 2 weeks.  If they are viewed by 250,000 people and 0.1% visit your shop that’s 250 customers. If 25% of them spend £50 you’ve taken an extra £3,000+ and hopefully, treat them right,  they’ll come back again with some turning into regular clients.

I’m not advocating signposter.com in particular as there are other companies doing similar - www.postersitesuk.co.uk www.positivemediamarketing.co.uk  for example (Google for loads more) but the sign poster site is easy to use and gives a good overview.

There’s also something psycololgical about seeing posters in that it can often give the impression that you’re are ‘bigger’ and ‘more established’ company.

Don’t forget if you are thinking about doing it - EVERYTHING IS NEGOTIABLE!

Good Luck

Tony Heywood - Gilcrest Services Ltd
Retail Troubleshooter
Business Turnaround and Recovery
www.gilcrest.com
www.linkedin.com/in/tonyheywood2

UK retailers are likely to continue discounting right through to the first half of 2010, according to a report by PricewaterhouseCoopers [PwC].

The PwC survey of 100 high street retailers revealed that 90% were currently on sale and that discount levels were above 60% - similar to those in the run up to Christmas last year and January Sales.

The survey said there was also an element of “de-stocking”, with retailers trying to shift some out-of-season stock in order to get cash into the tills and people in their stores.

Discounting was spread across all sectors of retail with luxury brands, mid-market and value players all promoting Sales, both in their shop windows and on their websites.

A spokesman for PwC said: “Following the peak level of discounting in the January Sales many stores have continued to promote discounts throughout 2009, to the extent that some corners of the UK high street seem to be on constant Sale.”

“Discounting will be an ongoing trend for UK retailers for the rest of 2009 and through the first half of 2010. This is good news for consumers, but less positive for retailers, whose margins have been and will continue to be under constant pressure.”

This seems to contradict my last post which just goes to show that we’re in ‘uncharted’ territory and nobody has any idea how deep or long this downturn will be.

Tony Heywood - Gilcrest Services Ltd
Retail Troubleshooter
Business Turnaround and Recovery
07905 848 111
www.gilcrest.com
www.linkedin.com/in/tonyheywood2

Data from Ernst & Young, the professional services group, show that retailers this year launched sales on average more than 10 days earlier than last year. Also price cuts of 50 - 75% are commonplace as many retailers have had ‘promotions’ on since Christmas and are having to offer even bigger discounts.

However, is the period of consumer bargains about to end?

“…. enjoy it while it lasts,” said Neil Saunders, consulting director at Verdict, the retail research group. “This may be the final fling for the consumer for hefty discounts.”

Retailers face higher costs for the Autumn ranges, with a VAT increase scheduled for the middle of this year’s winter sales period. Since many also pay dollars for goods from the Far East, a slumping pound has further increased their purchase costs. Although there has been some recovery in the pound it is still worth 20% less than a year ago. i.e. an item priced at $2 cost £1 in July 2008 but costs £1.21 in July 2009. Against the Euro the Pound has fared a little better recovering to 92% of it’s rate a year ago.

Will retailers need to factor in the VAT increase to 17.5% from Jan 1st 2010 or will it be a case of unsold Winter stock by that time will already be in the sale? Will you need to look at pricing regular lines differently to seasonal ranges? All in all, it’s a bit of a mess which I don’t think the Government really thought through with their ‘knee jerk’ reaction to  the downturn.

I suspect that as most retailers ordered their Autumn/Winter merchandise during the ‘depth of the recession’, that quantities committed to, are ultra cautious.  It’s probable that there will be much less surplus stock which needs to be marked down going forward so this could well be the beginning of the end of the bargains enjoyed by the customer.

From a Retailers point of view - let’s hope so.  As  a consumer - bah humbug!

Tony Heywood - Gilcrest Services Ltd
Retail Troubleshooter
Business Turnaround and Recovery
07905 848 111
www.gilcrest.com
www.linkedin.com/in/tonyheywood2

p.s. I attended the opening day of the Next sale on Saturday (and no I wasn’t there for the 5 am opening!) and was surprised at how little stock was in the sale. A good 2/3 of the ranges were still at full pricing. Good to see that their acknowledged expertise for stock management is still holding up. So although sales may me down their bottom line should not be impacted as much as their competitors.

Annual deflation in clothing and footwear rose to 6.5% in June on BRC-Nielsen Shop Price Index.

The value of retail sales in May fell 1.1% compared with last May, and textiles, clothing and footwear was the worst performing category, down 8.4%, according to the Office of National Statistics.

Coupled with the fact that cost prices have increased due to the weak pound, clothing and footwear retailers are getting hit  from all sides and there seems to be no sign of an immediate respite.

It would seem the volume of sales are fairly static with the May’s 8.5% drop in sales accounted for by the 6.5% deflation and VAT reduction but it’s still a huge hit on the margins. Philip Green (Arcadia Group) has concerns about how the general public will react to the price increases coming through in the Autumn ranges reflecting the poor exchange rate on imported goods.

It may well be that the public do not accept the new pricing levels with many choosing to wait for the inevitable discounting to start. This could well mean that ‘Mid Season ‘ sales and 1 day ‘events’ may start even earlier this Autumn - particularly as the September rents become due.

If you are still trading today, I guess you have already adopted many of the survival techniques and tips from earlier blogs. All your costs are under control, staffing levels at a minimum, maybe negotiated with your landlord and received some concessions, so it’s only left for me to remind you to ensure that you keep your stock levels under control and try and keep some of the budget back for last minute ‘deals/offers/special purchases’ from your suppliers to boost your margins.

Stick at it - it’s going to be a long haul - but the good times are coming again - slowly!

Today’s news that 7 out of 10 Woolworth’s stores are still lying empty is not good news for the already beleaguered High Street. Interestingly while more than half the Woolworths stores in Greater London have been let, 80% of sites in Scotland, and 90% of those in the North East are still empty. Although some good news (for retailers) is that landlords have been forced to offer reduced rents and incentive packages to let the shops, causing a drop in high street rents across the board.

Perhaps it’s time to relax some of the planning rules as there still seems a demand for A3/A5 units in the High Street but Local Councils are still trying to push back the incoming tide and  restrict access. In my local High Street Nandos were refused a change of use on a large unit which has remained empty for nearly 2 years. If you can’t attract a ‘traditional’ A1 user then it must be better to allow change of use to ‘revitalise’ the area, create employment and get in extra taxes.

Tony Heywood - Gilcrest Services Ltd
Retail Troubleshooter
Business Turnaround and Recovery
www.gilcrest.com
www.linkedin.com/in/tonyheywood2
http://blog.esellit.com

This may be of interest to readers who have empty shops on their books or are looking for temporary lets

Popupspace.com is a new website dedicated to temporary letting of empty retail property. Temporary or pop up shops are becoming a more and more attractive proposition for both landlords and retailers in the current economic climate. These kind of lettings offer a great opportunity for small businesses to trade from prime locations at bargain rents, without the commitment and obligations that come with a long lease.

Popupspace.com also offers start-up businesses and independent retailers, the chance to create their own (free) profile listing detailing their business and their property requirements. Once retailers have created a profile, landlords can search for them and contact them with property offers. Retailers can also print out or email their profile to anyone they want to let know about their property requirements. It can be very helpful for them to have such a proposal to send to prospective landlords.

The website offers free advertising for landlords and commercial agents with vacant property to let.

Popupspace.com has only just launched and we are keen to get as many independent retailers as possible involved.

Contact

Rosie Cann
Popupspace Ltd
t. 01273 272350
rosie@popupspace.com
www.popupspace.com

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Tony Heywood - Gilcrest Services Ltd
Retail Troubleshooter
Rescue and Recovery Consultant
www.gilcrest.com
www.linkedin.com/in/tonyheywood2

I’m indebted to Torben Rick for this ‘chestnut’  http://www.torbenrick.eu/

Does this little story sound familiar?

“This is a story of four people named Everybody, Somebody, Anybody, and Nobody. There was an important job to be done and Everybody was asked to do it. Everybody was sure Somebody would do it.  Anybody could have done it, but Nobody did it. Somebody got angry about that because it was Everybody’s job. Everybody thought Anybody could do it, but Nobody realized that Everybody wouldn’t do it. It ended that Everybody blamed Somebody when Nobody did what Anybody could have done.”

But how to avoid this? How to create a culture of accountability and hold people accountable? Actually, it’s SIMPLE:

S = Set Expectations
I = Invite Commitment
M = Measure Progress
P = Provide Feedback
L = Link to Consequences
E = Evaluate Effectiveness

Tony Heywood - Gilcrest Services Ltd
Retail Troubleshooter
Rescue and Recovery Consultant
www.gilcrest.com
http://www.linkedin.com/in/tonyheywood2

An useful article from Business Link.
During an economic downturn, many businesses think only about survival. The smart ones, however, think about how they can make the most of the downturn. A recent poll carried out by Business Link in London found that two-thirds of London’s small and medium-sized enterprises were still planning to grow over the coming year. Indeed some businesses, such as take-away restaurants, tend to perform better during a recession.

Even if businesses find they are not growing during the slowdown, they can still prepare and position themselves for the upturn. They can pull away from their competitors and develop a new profile much more successfully than during boom markets, when all businesses are growing at a similar rate.

Here are a few of the key actions you could take:

• Sit down and take an in-depth look at your business. What should you be doing to withstand the impact of the recession and what could you be doing better to make the most of the new conditions? Cash flow is a particularly important area to consider.
• Focus on key customers. Your customers are essential to your business, and a recession is a good time to think about how to keep them. New customers may be thin on the ground when people are trying to cut their spending, so there is an even greater need to look after those you already have.
• Look after your staff. Your employees are perhaps your business’ most valuable asset and you need them most during a recession. Try to avoid redundancies by offering flexible working arrangements or reduced hours. If redundancies are inevitable, it is worth looking at certain employees and asking whether you still expect them to be working for you in three years’ time. If they were recruited simply to fill gaps when times were good, this might be the right time to ease them out. The recession also means that a lot of very talented people have been released onto the job market, many of them based in London, so it could be a good time to add a few high-quality people to your team.
•  Reduce costs. Many costs, such as office space, come down during a recession. Recent research from property consultants Jones Lang LaSalle suggested that prime headline rents in the City of London would fall to £50 per square foot per year by the end of 2009. It could be a good time to save money by moving to cheaper premises.
• Go Green. There are also savings to be made by ‘going green’. You can significantly cut costs by reducing the amount of energy and raw materials you use, and the waste you dispose of. There may also be an opportunity to reduce your insurance premiums through improved environmental practices. When the upturn arrives, you will be able to position your business as an environmentally responsible one.
• Look for market opportunities. During a recession, large companies are often in cutback mode, scaling down and not looking to grow. This can create gaps in the market, opening doors for small businesses. You could develop a reputation for specialising in a particular niche market and make your business stand out from the crowd.
• Experiment. A recession is a good time to push out new ideas. Try new approaches, introduce new products onto the market, get products to market quickly and see how they perform.

Reprint of a thread post on Linked In
http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers&discussionID=3559287&gid=1840289&commentID=3755921&trk=view_disc

I’ve been working on this project for quite sometime but I’m not sure of the best way to go about getting my product in to boutiques given the current climate. Any suggestions would be greatly appreciated.

Mark Charles Client Services Account Manager - No Fluff Recruitment
 
Money is tight for Retailers (and most businesses) so if you can fund the stock then you could try the Concession route or offer the retailers the goods on sale or return.

Obviously it’s cheap to set up a website with an ‘on-line’ shop to sell the stock. You could also link this in with an eBay shop as this will give immediate access to 10m+ UK customers.

You can try and come up with some ‘viral marketing’ to get the brand known. A good/funny/odd YouTube video can work well - How about some Redneck with southern American drawl saying ‘Assholes are …. Assholes are… etc then cuts to your boots with English accent saying that ‘Our Soles are made from finest leather… Our Soles….etc

Getting samples into the magazines, newspapers can get you good ‘free’ publicity and credibility.

Good Luck

Tony Heywood

lol….absolutely genius, really appreciate your feedback mate! Especially the viral marketing idea, very funny - I will definitely work on some concepts for a video.

Regarding the “Sale or Return” option, I have to say, I am in favor of this route as I think it will be hard to get indies to buy in to an unknown product in this economic climate.

My concern is that without them parting with money initially, how keen will they be to push the product.

Which I guess leads me on to my next question. How effective do you think POS Merchandise is? I’m concerned about producing something that is effective and unique, yet at the same time fits in with the shops theme.

Also, what do you think about getting celebrities to promote the brand? I have to admit, it seems quite risky with such limited stock to work with and no guarantee that they will even wear it, much less get photographed wearing it.

Mark Charles
 

POS is good and helps enforce the brand but it depends how much marketing spend there is. Wouldn’t be my priority as although it helps it’s probably not a deal breaker for shops to stock your items.

Celebrity endorcements do work (sadly a sign of our times!) however shoes don’t get as much visual coverage on the ‘red carpet’ as other items of clothing. You could send samples to some celebs and claim in your PR that X, Y & Z have our boots (doesn’t mean to say that they wear them!)

Tony Heywood

Retail Troubleshooter
Rescue and Recovery Consultant
www.gilcrest.com
http://www.linkedin.com/in/tonyheywood2