Monday 6 April 2009

Making sense in recession (1)

Retail landlords being challenged to apply common sense to an antique 3-month rental, upward-only rent review model (ie better to have a shop occupied at lower rent, than have an empty shell dragging down the environment surrounding those still open, a perpetual reminder to shoppers not to spend too much!)

Retailers turning over some products daily, yet taking 30-90 days to pay suppliers, picking up resentment and bad press in the process ( i.e. As one of the few business models taking cash in at one end, perhaps retailers should ‘buy’ additional margin with shorter credit periods, and solve both problems in one stroke?)

Suppliers still spreading resources and product portfolio evenly over all major customers, when partner-fit has changed radically in the past six months (i.e. time to reappraise entire product portfolio vs. recessionary consumer need, related to recessionary customer-profile in order to allocate recessionary resources (new mix of time money and people) to the recessionary customer profile on the basis of Invest, Maintain or Divest?)

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