In the inevitable analysis of why this iconic family
business failed a couple of points standout. Darrell Lea failed to move out of
the 20th century while new competitors like Haigh’s and
multinationals like Lindt re-invented their presentation with attractive,
cutting edge stores and product merchandising that created value. The other
main point concerns service. Darrell Lea’s service wasn’t bad but it wasn’t standout
either. Failure to excite customers on service or product presentation makes it
difficult for modern retailers to survive.
In an era where the decline of the middle-man has been
actively predicted it is interesting that the new owners of Darrell Lea can
reverse the trend. If they can see enough margin in the confectionary range to
go back to a wholesale model then perhaps Darrell Lea products were overpriced
as well.