Monday 23 August 2010

Green Shoots on a Blue High Street?

Pic: Sarah Lee for the Guardian
News that 40% of Woolworths former stores are still empty, is possibly 'proof' of a spent business model, despite a possible resurgence of the brand online. The remaining 60% of outlets spread over several trade sectors, means that traditional Wollies categories will end up in increased trade concentration, adding to the negotiating muscle of the major retailers. Another result of a 10% over-capacity in retail space has been more realistic rental concessions from formerly 'upward-only' landlords, mindful of the impact of empty shops on consumer demand.

Meanwhile, this wake-up call for all retail business models has created opportunities for Pound shops, making them a permanent feature of the retail landscape, all in response to the demonstrable value-for-money demands of the savvy consumer.

Suppliers that have managed the transition to profitable management of a more demanding customer-mix have done so by stripping down their basic offering to meet real need, and ruthless elimination of all surplus, before the market did it for them.

Insisting on fair-share partnerships with the survivors then became a no-brainer..

In other words, if you are still here, as one of the strong players you deserve and must demand a game with equal trade-partners, ……or else!

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