The Co-op movement. This is your moment.
We have at The Retailer said for several years that the Co-op has been the most underdeveloped brand with the most opportunity for growth. Recently we have seen the early signs of revival, but you have seen nothing yet. The next five years should see the dramatic comeback of the Co-op and the dividend will again be king. This is their moment if they get it right.
Small Towns and Rural Communities
A Period of Opportunity
For some time now the trend has been against the small towns and villages with customers choosing to travel to the larger shopping destinations. Times have changed and the customer’s mindset and the current situation give these communities an opportunity to win back at least some of their business and set in motion new trends that can run in to the future. This is not going back to better days but a whole new model that will service the new needs and values of their communities.
See our Online News section on the front page for more.
Visitor Centres and Activity Destinations.
Are you ready for the opportunity that this summer offers? Have you put yourself on the customer’s agenda and have you adjusted your offer to the current economic environment. Does your staff understand your customer’s new priorities and the increased importance of perceived value? Those who are tuned in will benefit.
We have huge experience in establishing and developing visitor centre business and see this as a period of opportunity.
EPOS
Knowledge now even more valuable.
80% of the systems we encounter are not used to their full potential and businesses not disciplined enough to take advantage of the knowledge available to them. It is now even more important to understand your business detail and monitor progress. If you do not have a system now might be the time to invest.
Many retailers we encounter do not regularly monitor key business indicators.
Retailers should be reviewing their information sources and how they use these. Information is most powerful when shared with staff. Epos is a tool and is most effective when operating structures are served by it. EPOS doesn’t run you business you do. Make sure you have the information you need to make informed decisions.
Retail Rental Contracts
Now they must change
The property market for many years has dictated the terms and conditions of our retail leases and to and great extent influenced the cycle of profit from a location and gearing of our overall business. Standard leasing conditions and contracts have become so onerous, restrictive and inflexible that they are one of the biggest reasons for company distress, and hamper recovery.
Before we put all the blame on the big bad landlords the retail industry has inflicted this on its self to an extent by being willing to pay almost any price and accept these conditions to gain key sites.
Times when we committed to 15year leases ( I don’t know many that read business plans that go beyond five years that give them much credence) Agreed to rent reviews every three of five years, Upwards only!! This must be against some rights somewhere. I notice the Irish government has made this illegal and hopefully ours will follow. Also while our landlord was enjoying the capital growth of his property fuelled by our increasing rents we were allowed the privilege of fully maintaining his property for him. Did I actually sign these?
The areas most affected are our town and city centres with an increasing number of empty shops. Our landlords have to now pay rates for empty stores which increases the pressure to get someone in their even on short to medium term basis. This loosening of the market will be a great assistance to new and expanding businesses
For sever years now in has almost been impossible for new businesses to get anywhere near the key shopping locations.
It is from times like these that new brands emerge and come in to our market.
Leasing deals have to be commercial with benefits for both sides. There needs however to be much more flexibility in there, and an element of risk and profit sharing.
These old structures will not survive as the market is changing and with it the value of existing locations. New routes to markets are emerging that will compete with our shopping destinations. Viability of these traditional destinations will be influenced by our rental conditions. Get this right and its a win win for everyone.