The real state of UK retail
26 May 2011, 03:16 PM
#31
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http://www.geraldonline.com , UK's biggest online retailer for Jewellery and doing quite well, I think with free returns and refunds more and more people will buy anything online. I sell a lot of different items all of them are not the usual sort of items you would get online and we do get the occasional person contacting us worried about quality or if we are a REAL company but the vast majority just type there address and card details in and wait for it to arrive.....
Low-overhead, low-end online outfits like this will do well during these conditions as people shift away from quality.
26 May 2011, 03:28 PM
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This is Gerald Ratners firm who once said "we also do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95. People say, "How can you sell this for such a low price?", I say, "because it's total crap".
Low-overhead, low-end online outfits like this will do well during these conditions as people shift away from quality.
Low-overhead, low-end online outfits like this will do well during these conditions as people shift away from quality.
Last edited by The Zohan; 26 May 2011 at 03:57 PM.
26 May 2011, 03:59 PM
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I think Jewellery is fairly unique and the buying habits of your Elizabeth Duke demographic would be quite happy to pick out a sovereign on-line - and a 100% hike in gold price will make their piece £100 rather than £50; no big deal. If your product is mid to high-end, like f1's, the punter will want to go to the shop, hold the piece, feel its weight, look at the clarity and setting of the stone and so forth. The challenge is that a 100% hike on a £1000 ring is a £1000 differential rather than the £50 mentioned. Also, the upper working-class and middle-classes, f1's demographic, have not only been hit hardest in terms of disposable income, but will be more aware of the price hike, and more likely to delay their purchase. On-line isn't really a viable alternative for that consumer.
26 May 2011, 04:07 PM
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Using a personal example, I along with my friends graduated from (a decent) Uni 8 years ago. All have jobs and as the supposed educated class should have disposable income to spend. Only half have their own houses, a couple have new (company) cars and none have a surfeit of cash. Most are Engineers so paid in peanuts, but we're in a far better state than current and future graduates. With 50% plus going to Uni, massive loans and a lack of true graduate jobs I can see the current situation getting a lot worse. The only people spending anything will be the genuinely wealthy or the benefits claimant.
26 May 2011, 04:35 PM
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It astounds me just how much money he is taking when the very same folks moan about the price of a loaf in the local bakers
I've heard them.
26 May 2011, 04:43 PM
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One of my clients has a jewellery business. He is considering opening his 4th shop. A second one in the Metro Centre. He is doing really well.
It astounds me just how much money he is taking when the very same folks moan about the price of a loaf in the local bakers I've heard them.
It astounds me just how much money he is taking when the very same folks moan about the price of a loaf in the local bakers
I've heard them.
LOL!
26 May 2011, 04:50 PM
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First, a caveat. I'm not Mystic Meg and George Osborne isn't a member of my golf club. Having said that, Mr Cameron and my old boss are on first name terms and I'll be leaving retail soon (as an employee rather than an employer).
Now the obfuscation's out of the way, my instinct, if you're in Jewellery, is that you're at the behest of the precious metal markets. If interest rates remain artificially low (which I suspect they will to, among other things, protect the housing market) I'd forcast these markets to continue in an upward trend for the foreseeable future as an alternative to currency and to protect against inflation and so forth. Additionally, you're in a luxury market during a period of austerity. Having said all of that, if your competitors fall away and you can tough it out, you'll come out the other side much, much stronger. Only you'll know if your business is fit enough to get through and whether you're stronger than the guy down the road. If you're not, don't let pride stop you from exiting with a couple of quid in your sky-rocket. Be honest with yourself.
Now the obfuscation's out of the way, my instinct, if you're in Jewellery, is that you're at the behest of the precious metal markets. If interest rates remain artificially low (which I suspect they will to, among other things, protect the housing market) I'd forcast these markets to continue in an upward trend for the foreseeable future as an alternative to currency and to protect against inflation and so forth. Additionally, you're in a luxury market during a period of austerity. Having said all of that, if your competitors fall away and you can tough it out, you'll come out the other side much, much stronger. Only you'll know if your business is fit enough to get through and whether you're stronger than the guy down the road. If you're not, don't let pride stop you from exiting with a couple of quid in your sky-rocket. Be honest with yourself.
Depends on the sector and the market. Take furniture, people generally like to see, feel and touch the product and as such physical channels are still very viable against on-line; savvy retailers will make their products exclusive to them to protect against punters using the showroom to view and the internet to buy. DSGi struggled with this. Shrewd consumers would (and still do) go to, say, Comet to find their favourite plasma, note the product number and then type that into a comparison site to find the best price. They've tried to defend against this by making Dixons, with its strong brand, on-line only.
I think Jewellery is fairly unique and the buying habits of your Elizabeth Duke demographic would be quite happy to pick out a sovereign on-line - and a 100% hike in gold price will make their piece £100 rather than £50; no big deal. If your product is mid to high-end, like f1's, the punter will want to go to the shop, hold the piece, feel its weight, look at the clarity and setting of the stone and so forth. The challenge is that a 100% hike on a £1000 ring is a £1000 differential rather than the £50 mentioned. Also, the upper working-class and middle-classes, f1's demographic, have not only been hit hardest in terms of disposable income, but will be more aware of the price hike, and more likely to delay their purchase. On-line isn't really a viable alternative for that consumer.
I think Jewellery is fairly unique and the buying habits of your Elizabeth Duke demographic would be quite happy to pick out a sovereign on-line - and a 100% hike in gold price will make their piece £100 rather than £50; no big deal. If your product is mid to high-end, like f1's, the punter will want to go to the shop, hold the piece, feel its weight, look at the clarity and setting of the stone and so forth. The challenge is that a 100% hike on a £1000 ring is a £1000 differential rather than the £50 mentioned. Also, the upper working-class and middle-classes, f1's demographic, have not only been hit hardest in terms of disposable income, but will be more aware of the price hike, and more likely to delay their purchase. On-line isn't really a viable alternative for that consumer.
I agree with your point about the upper working class/middle class demographic and obviously I realised times were going to be tough, but listening the most of the retailers out there that I speak to they are very gloomy about anything except uber high end (not enough volume) or very low end (not enough margin).
I actually thought the precious metal prices would help as at least people would be buying soemthing that would increase in value, but what do I know LOL!
I am just wondering whether to mothball the whole thing for now and focus more on my other interests or to keep going?
Decisons!
26 May 2011, 05:10 PM
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Cheers for those and I know you aren't Mystic Meg, but you do seem to have a good handle on retail and how it works, what makes it tick etc.
I agree with your point about the upper working class/middle class demographic and obviously I realised times were going to be tough, but listening the most of the retailers out there that I speak to they are very gloomy about anything except uber high end (not enough volume) or very low end (not enough margin).
I actually thought the precious metal prices would help as at least people would be buying soemthing that would increase in value, but what do I know LOL!
I am just wondering whether to mothball the whole thing for now and focus more on my other interests or to keep going?
Decisons!
I agree with your point about the upper working class/middle class demographic and obviously I realised times were going to be tough, but listening the most of the retailers out there that I speak to they are very gloomy about anything except uber high end (not enough volume) or very low end (not enough margin).
I actually thought the precious metal prices would help as at least people would be buying soemthing that would increase in value, but what do I know LOL!
I am just wondering whether to mothball the whole thing for now and focus more on my other interests or to keep going?
Decisons!
I don't envy you. I'd be cautious of the retailers you supply trying to talk the market's prospects up, not because there are no prospects, but because they may be doing so as they don't wish to lose their supplier. Can't be sure, it's just a guess.
Last edited by JTaylor; 26 May 2011 at 05:15 PM. Reason: spelling
26 May 2011, 05:20 PM
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26 May 2011, 05:21 PM
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Depends on the sector and the market. Take furniture, people generally like to see, feel and touch the product and as such physical channels are still very viable against on-line; savvy retailers will make their products exclusive to them to protect against punters using the showroom to view and the internet to buy. DSGi struggled with this. Shrewd consumers would (and still do) go to, say, Comet to find their favourite plasma, note the product number and then type that into a comparison site to find the best price. They've tried to defend against this by making Dixons, with its strong brand, on-line only.
I think Jewellery is fairly unique and the buying habits of your Elizabeth Duke demographic would be quite happy to pick out a sovereign on-line - and a 100% hike in gold price will make their piece £100 rather than £50; no big deal. If your product is mid to high-end, like f1's, the punter will want to go to the shop, hold the piece, feel its weight, look at the clarity and setting of the stone and so forth. The challenge is that a 100% hike on a £1000 ring is a £1000 differential rather than the £50 mentioned. Also, the upper working-class and middle-classes, f1's demographic, have not only been hit hardest in terms of disposable income, but will be more aware of the price hike, and more likely to delay their purchase. On-line isn't really a viable alternative for that consumer.
I think Jewellery is fairly unique and the buying habits of your Elizabeth Duke demographic would be quite happy to pick out a sovereign on-line - and a 100% hike in gold price will make their piece £100 rather than £50; no big deal. If your product is mid to high-end, like f1's, the punter will want to go to the shop, hold the piece, feel its weight, look at the clarity and setting of the stone and so forth. The challenge is that a 100% hike on a £1000 ring is a £1000 differential rather than the £50 mentioned. Also, the upper working-class and middle-classes, f1's demographic, have not only been hit hardest in terms of disposable income, but will be more aware of the price hike, and more likely to delay their purchase. On-line isn't really a viable alternative for that consumer.
My potential customer are mostly the John Lewis type, they live in a 4 bed detached house, have an above average income, drive a new car etc
Some of our deliveries I make personally and there are a lot of new cars 60 and 11 plates Range rovers, BMW's etc parked on peoples drives, I can honestly say hand on heart that I do not know where all these people are that are financially struggling!
Last edited by Scooby Soon!; 26 May 2011 at 05:22 PM.
26 May 2011, 05:50 PM
#43
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Online has really changed, people ARE buying these items online and it is the way things are going. I sell items between 99p and £2000 we do get the occasional quibble and ask us if the items are good quality etc etc blah blah but to be honest we are not interested in dealing with messers or people wanting the finest quality, but these type of people only make up a very small percentage of potential customers. If someone perceives an item to be good value for money then its does not have to be the best quality.
My potential customer are mostly the John Lewis type, they live in a 4 bed detached house, have an above average income, drive a new car etc
Some of our deliveries I make personally and there are a lot of new cars 60 and 11 plates Range rovers, BMW's etc parked on peoples drives, I can honestly say hand on heart that I do not know where all these people are that are financially struggling!
My potential customer are mostly the John Lewis type, they live in a 4 bed detached house, have an above average income, drive a new car etc
Some of our deliveries I make personally and there are a lot of new cars 60 and 11 plates Range rovers, BMW's etc parked on peoples drives, I can honestly say hand on heart that I do not know where all these people are that are financially struggling!
26 May 2011, 06:58 PM
#45
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I work in the outlet business which is going from strength to strength. The centre has new brands such as Armani, Boss, Reiss, Gant etc opening shortly.
I am a store manager and have run the store through FY11 in which we beat our sales plan by 15% and our FY10 figure by 28%! in a 'recession' which we did not see.
This year the B'hols were massive with growth against the year before well in to double figures.
So far we this year have increased unit sales by 14% conversion of customers has remained the same, Average transaction cost has grown by £4 per trans. Our UPT- units per item has also grown by 0.4 so all the KPI's are positive.
Most of the results have come from changing the customer service culture greeting customers in, good product knowledge, talking about promotions and offering alternatives etc that make the difference.
Customers are now not shopping in the 'middle ground retailers' that don't offer great quality,prices or service hence why they are struggling.
When I walk in to stores I don't see any passion from stores about what they do and if they don't change what they do the figures won't either.
We have grown from 28 staff to 46 and soon to be 56! we will be expanding in 2012 and 3 of our stores out of 9 in the UK and Ireland have had refurbishments and expansion programmes.
High streets have expensive car parking in comparison as ours are free.
I am fortune to work for such a highly respected brand with such a wide customer base.
In this market you either got to be cheap, quality or have the best service possible and if you can have more than one all all of them your on to winner.
We take more cash than ever before we took £6500 in cash yesterday when the store took £14500 so a very strong ratio as a couple of years ago this would have been £3k so this proves people have the cash.
I am a store manager and have run the store through FY11 in which we beat our sales plan by 15% and our FY10 figure by 28%! in a 'recession' which we did not see.
This year the B'hols were massive with growth against the year before well in to double figures.
So far we this year have increased unit sales by 14% conversion of customers has remained the same, Average transaction cost has grown by £4 per trans. Our UPT- units per item has also grown by 0.4 so all the KPI's are positive.
Most of the results have come from changing the customer service culture greeting customers in, good product knowledge, talking about promotions and offering alternatives etc that make the difference.
Customers are now not shopping in the 'middle ground retailers' that don't offer great quality,prices or service hence why they are struggling.
When I walk in to stores I don't see any passion from stores about what they do and if they don't change what they do the figures won't either.
We have grown from 28 staff to 46 and soon to be 56! we will be expanding in 2012 and 3 of our stores out of 9 in the UK and Ireland have had refurbishments and expansion programmes.
High streets have expensive car parking in comparison as ours are free.
I am fortune to work for such a highly respected brand with such a wide customer base.
In this market you either got to be cheap, quality or have the best service possible and if you can have more than one all all of them your on to winner.
We take more cash than ever before we took £6500 in cash yesterday when the store took £14500 so a very strong ratio as a couple of years ago this would have been £3k so this proves people have the cash.
Last edited by graeme jones; 26 May 2011 at 07:00 PM.
26 May 2011, 07:04 PM
#46
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I work in the outlet business which is going from strength to strength. The centre has new brands such as Armani, Boss, Reiss, Gant etc opening shortly.
I am a store manager and have run the store through FY11 in which we beat our sales plan by 15% and our FY10 figure by 28%! in a 'recession' which we did not see.
This year the B'hols were massive with growth against the year before well in to double figures.
So far we this year have increased unit sales by 14% conversion of customers has remained the same, Average transaction cost has grown by £4 per trans. Our UPT- units per item has also grown by 0.4 so all the KPI's are positive.
Most of the results have come from changing the customer service culture greeting customers in, good product knowledge, talking about promotions and offering alternatives etc that make the difference.
Customers are now not shopping in the 'middle ground retailers' that don't offer great quality,prices or service hence why they are struggling.
When I walk in to stores I don't see any passion from stores about what they do and if they don't change what they do the figures won't either.
We have grown from 28 staff to 46 and soon to be 56! we will be expanding in 2012 and 3 of our stores out of 9 in the UK and Ireland have had refurbishments and expansion programmes.
High streets have expensive car parking in comparison as ours are free.
I am fortune to work for such a highly respected brand with such a wide customer base.
In this market you either got to be cheap, quality or have the best service possible and if you can have more than one all all of them your on to winner.
We take more cash than ever before we took £6500 in cash yesterday when the store took £14500 so a very strong ratio as a couple of years ago this would have been £3k so this proves people have the cash.
I am a store manager and have run the store through FY11 in which we beat our sales plan by 15% and our FY10 figure by 28%! in a 'recession' which we did not see.
This year the B'hols were massive with growth against the year before well in to double figures.
So far we this year have increased unit sales by 14% conversion of customers has remained the same, Average transaction cost has grown by £4 per trans. Our UPT- units per item has also grown by 0.4 so all the KPI's are positive.
Most of the results have come from changing the customer service culture greeting customers in, good product knowledge, talking about promotions and offering alternatives etc that make the difference.
Customers are now not shopping in the 'middle ground retailers' that don't offer great quality,prices or service hence why they are struggling.
When I walk in to stores I don't see any passion from stores about what they do and if they don't change what they do the figures won't either.
We have grown from 28 staff to 46 and soon to be 56! we will be expanding in 2012 and 3 of our stores out of 9 in the UK and Ireland have had refurbishments and expansion programmes.
High streets have expensive car parking in comparison as ours are free.
I am fortune to work for such a highly respected brand with such a wide customer base.
In this market you either got to be cheap, quality or have the best service possible and if you can have more than one all all of them your on to winner.
We take more cash than ever before we took £6500 in cash yesterday when the store took £14500 so a very strong ratio as a couple of years ago this would have been £3k so this proves people have the cash.
26 May 2011, 07:22 PM
#48
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I have worked for a number of companies that had retail operations, including DSG and a big brand that has an outlet where I think Mr Jones above works.
The High Street is being squeezed so much by frankly stupid local councils, I find it amazing that anyone would want to open new there (unless a £ shop)
Out of town is crazy busy. I went to Bicester Village and the top branded shops were packed out, at least with footfall.
DSG dug their own grave to be honest. Did you know it was a net 1% business?? And even that was only due to the Coverplan Insurance sales (a disgrace).
Retail needs to be given a boost, with reductions in rates and beauracracy, encouragement to employ more people through legislation, and public to be given greater means to go and spend there.
The High Street is being squeezed so much by frankly stupid local councils, I find it amazing that anyone would want to open new there (unless a £ shop)
Out of town is crazy busy. I went to Bicester Village and the top branded shops were packed out, at least with footfall.
DSG dug their own grave to be honest. Did you know it was a net 1% business?? And even that was only due to the Coverplan Insurance sales (a disgrace).
Retail needs to be given a boost, with reductions in rates and beauracracy, encouragement to employ more people through legislation, and public to be given greater means to go and spend there.
26 May 2011, 07:34 PM
#49
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I own a small company and we have just had the worst may in 17 years trading. Thing is, the start of the year was good, JFMA were all above the last 3 years. The last 4 weeks have been very quiet, everyone in my industry is saying the same too. Will be starting to look at staff numbers if it does not pick up next month... 
26 May 2011, 07:47 PM
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I have worked for a number of companies that had retail operations, including DSG and a big brand that has an outlet where I think Mr Jones above works.
The High Street is being squeezed so much by frankly stupid local councils, I find it amazing that anyone would want to open new there (unless a £ shop)
Out of town is crazy busy. I went to Bicester Village and the top branded shops were packed out, at least with footfall.
DSG dug their own grave to be honest. Did you know it was a net 1% business?? And even that was only due to the Coverplan Insurance sales (a disgrace).
Retail needs to be given a boost, with reductions in rates and beauracracy, encouragement to employ more people through legislation, and public to be given greater means to go and spend there.
The High Street is being squeezed so much by frankly stupid local councils, I find it amazing that anyone would want to open new there (unless a £ shop)
Out of town is crazy busy. I went to Bicester Village and the top branded shops were packed out, at least with footfall.
DSG dug their own grave to be honest. Did you know it was a net 1% business?? And even that was only due to the Coverplan Insurance sales (a disgrace).
Retail needs to be given a boost, with reductions in rates and beauracracy, encouragement to employ more people through legislation, and public to be given greater means to go and spend there.
26 May 2011, 07:55 PM
#51
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I seriously see the internet as being one of the key reasons for high street shops failing.
Every product I ever search for now on the internet is way more expensive on the high street. And when you consider how much we are now told to shop around and be extra careful with our expenditure, it is hardly surprising that the most expensive way of shopping, is starting to die off.
Every product I ever search for now on the internet is way more expensive on the high street. And when you consider how much we are now told to shop around and be extra careful with our expenditure, it is hardly surprising that the most expensive way of shopping, is starting to die off.
Last edited by Gear Head; 26 May 2011 at 07:58 PM.
26 May 2011, 09:17 PM
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Most of the results have come from changing the customer service culture greeting customers in, good product knowledge, talking about promotions and offering alternatives etc that make the difference.
Customers are now not shopping in the 'middle ground retailers' that don't offer great quality,prices or service hence why they are struggling.
When I walk in to stores I don't see any passion from stores about what they do and if they don't change what they do the figures won't either.
I do about 90% of my shopping online and, on dozens of occasions, have looked at items in shops and then gone home and bought them cheaper off the 'net. In this instance I didn't even consider it, it was worth paying full price for the advice I got and the service
28 May 2011, 12:28 AM
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Good service and being genuinely cared for/appreciated means a lot to some customers but product knowledge is key in retail. If the product is quality and the staff have a passion for it you will invest in that. Hiking that sounds hard work to me.
28 May 2011, 02:41 AM
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On the state of retail, Focus are about to launch their closing down sale. So, if anyone wants any DIY stuff on cheap, dip your bread sharpish, like.
28 May 2011, 04:10 AM
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Until high street retail price is close to Internet price I will continue to visit Currys/Comet armed with my iPhone and compare online prices while in store.
I can't afford to pass on £200 savings
I can't afford to pass on £200 savings
28 May 2011, 06:35 AM
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I am glad i now have nothing to do with it, my old site has dropped even more since i left (i knew VAT going up would affect it) and one of the busiest sites in the north east that my mate runs, has been sold to Asda as the management company are trying to stay afloat by taking offers for land to keep the company afloat
The reason being that the cash asda are wanting to pay (around 1 mill
) should pay for another few sites, the problem i see with this is all the "new sites" that have been built never do good volumes because they are trying to start up in somebody elses competitive area, most of the old sites have been in place for 20 plus years, and they are usually in prime locations, so why sell the land for a quick buck to place new sites nowhere near the prime locations?
Totally incompetent upper management, just like they have always been, they ****ed it up and now they are worried
The reason being that the cash asda are wanting to pay (around 1 mill
) should pay for another few sites, the problem i see with this is all the "new sites" that have been built never do good volumes because they are trying to start up in somebody elses competitive area, most of the old sites have been in place for 20 plus years, and they are usually in prime locations, so why sell the land for a quick buck to place new sites nowhere near the prime locations? Totally incompetent upper management, just like they have always been, they ****ed it up and now they are worried
28 May 2011, 10:30 AM
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It's worth it. 2400ft up a fell, no one about, absolute peace or trawling round a crowded shopping centre (no one actually buying much, you can tell by the lack of carrier bags, but still they go). When did shopping become a hobby? 
28 May 2011, 10:39 AM
#59
I think most people are going to one shop for everything as its easier. I work at Argos head office and there is always talk about Tesco knicking customers etc but lets be honest. While Im out buying food I can save time and petrol buying my lawnmower and fuses at the same time. I even get club card points.
I do as much shopping online also as not only is it cheaper but i get a % cashback here:
http://www.topcashback.co.uk/ref/robsyuk
It cost's nothing to use and even doing car insurance quotes gets me a £1 a time.
My latest purchase: new £30 a month contract from o2 that I was gonna get in the shop.. £100 back.. just by clinking on through this site. please do check it out.
I do as much shopping online also as not only is it cheaper but i get a % cashback here:
http://www.topcashback.co.uk/ref/robsyuk
It cost's nothing to use and even doing car insurance quotes gets me a £1 a time.
My latest purchase: new £30 a month contract from o2 that I was gonna get in the shop.. £100 back.. just by clinking on through this site. please do check it out.
28 May 2011, 08:57 PM
#60
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The sooner DSG goes to the wall, the better .... so no-one has to put up with the disgraceful, rude, pitiful, non existent Customer Service when things go wrong!!
Those who serve the Customer well will flourish - and quite right to!
Those who serve the Customer well will flourish - and quite right to!