Myer is to cut 100 brands across its apparel and homewares
ranges as it consolidates its retail offer and makes a significant change to
its retailing philosophy. We understand that DJs are looking to reduce up to
180 brands.
Myer is apparently shifting from a “store for everyone” mentality
to focus on specific groups. Big data remains a buzzword in retail as shops
gather, analyse, and interpret sales and customer data to focus on their most
likely customers. At the same time, Myer are offering redundancy packages to
staff as they reduce the number of permanent employees and concentrate more on
casuals.
Reducing the number of brands could help to remove unnecessary
clutter on shop floors and make the customers choices easier, enable deeper
stock holdings so as to avoid stock-outs, and improve Return On Investment
measures.
An Opportunity For QVM?
One effect of these
reductions is that smaller designers, manufacturers and wholesalers will
struggle to find a place in the department store world. Smaller operators will
be seeking alternative outlets and QVM, along with its new Munro site options,
could be just the ticket.
With a few exceptions, QVM hasn’t been seen as a fashion mecca
in Melbourne but our small business environment and business incubator role
could make it more relevant in the future, particularly as the bigger retailers
abandon their smaller fashion suppliers. Current stallholders in the fashion category may just have some new opportunities for sourcing stock.
HaveYour Say – click here.
COMMENTS:
05/08/2015 09:53:33 An Opportunityfor QVM "I think it may be a possibility however most of the traders in the market will be faced with the prospect that these axed brands will not want their brand presence in the market. Once upon a time, when major brands cleaned up their excess stock at reduced prices they were happy to get rid of it to anyone who could handle a particular volume. With the advent of factory outlets, and the brands itself opening outlets, that vacuum that used to exist for the Queen Victoria Market traders and others to profit from branded clearance stock has evaporated.
In my case I would jump at the chance to buy sheridan or linen house clearance stock, however even when I had a number of shops. I was still not allowed to sell excess stock at the market. If i was found to breach that rule, they would stop supplying me.
Traders need to look closer at one issue.The fact that all traditional brick and mortar shops, especially K-Mart, have become smarter with their product offering. They provide same or similiar product , at cheaper everyday prices. The same reason why Coles has been successful in bridging the gap between themselves and woolworths and of course we all know about how fast Aldi are catching up to the two majors.
What is the Queen Victoria Market point of difference?
The other point is,even if many traders had great branded specials, etc ,etc, will people come from all over to shop at the market. Have we lost loyalty from many due to reasons like expensive travel, stiff competition from shops, the lack of advertising to promote the general merchandise side of the market and of course the one that I believe is the biggest issue; the failure of past and current management, to tackle the outdated retail offer available the Queen Victoria market." Jim