Tuesday, 29 March 2011

Lloydspharmacy adds online doctor services with acquisition of DrThom

News that Lloydspharmacy have introduced medical services is simply another indicator that all providers of goods and services are vulnerable to loss of business to retailers unless they raise the level of specialist service to a point in excess of what could be provided by a retail chain, be they H&B or ‘Grocery’.

It is worth keeping in mind that as mass retailers become more space-efficient, they will systematically assess all categories in their search to optimise all contacts with consumers by ‘selling anything that can be legally sold to shoppers…’

And no government will allow protective barriers to stand in their way, in the search for efficiency in the use of public funds.

Monday, 7 March 2011

Tesco’s New Music ‘on consignment’ Business Model

Tesco’s decision to push music companies to accept minimal upfront payments is much more than a ‘take it or leave it’ offer.

Instead of paying £7 or £8 upfront for a typical album, Tesco wants to pay just 50p initially, with the remainder handed over when it sells the disc.

Given the falling demand for CD & DVD media, the move represents a way of optimising the final stages of an era as online replaces all other delivery media.

Incidentally, full consignment would mean no upfront payment leaving suppliers to worry about the gap between an invoice based upon scanned sales and the quantity delivered to the retailer ( i.e. supplier absorbs the shrinkage).

Real issue for other categories is what if retailers decide to adapt the model to all categories, thereby reflecting the true nature of what the retail route-to-consumer has become….!

P.S. Always wanted an excuse to put Elvis into Kamblog...