A
group of retail experts (QVM Traders) was discussing the retail revolution this
week and particularly which traders are most at risk of not surviving the
global downturn.
With
a background of high profile retail failures (Toys’R’Us being the latest) and
traders leaving our market it is difficult to avoid the harsh reality of retail
right now.
It
turned out it was easier to identify those types of traders who are most likely
to survive than the other way around and our experts agreed that at least some
of the following ingredients were likely to be evident in successful traders -
1.
Direct sourcing of goods - cutting out the
middle man, and reducing costs by going straight to the manufacturer. This
allowed extreme price competitiveness at the shop front.
2.
Manufacturing your own goods - similar to
item 1, making your own goods enabled significant cost savings and higher
margins.
3.
Websites and online - expanding your
footprint so that you are accessing customer business outside standard market
trading times is becoming more important. Going online has long been questioned
by traders particularly because it is not easy to see an immediate return, but
evidence is mounting that online is slowly but surely becoming an essential
element for many retailers. Just this week, Australia Post reported a 20% lift
in parcel volume as consumers embrace online ordering. Put it this way, if you
don’t qualify under 1 or 2, this may be your saviour.
4.
Exclusivity – making your own goods isn’t the
only way of establishing a unique offer. How you source, brand and present a
range can impact on its uniqueness.
5.
Expanded service - this means nailing the
customer service aspect and going the extra mile to meet and exceed customer
expectations. It will almost certainly include the online aspect, as well as
delivery and packing services, electronic communication, and extreme
attentiveness at the shop front.
6.
Willingness to change - our experts suggested
that those traders who had shown little inclination to address any of these
factors would be most at risk.
How
do you stack up?