Still think empty shops are just empty opportunities...?
See 'Empty Shop Usage' below
Showing posts with label high street. Show all posts
Showing posts with label high street. Show all posts
Monday 15 March 2010
Friday 27 November 2009
A pro-active use for empty prime retail space?
EA Sports Active, a Wii Sports type game with a variation on high impact work-outs, can be a win-win way of repopulating empty prime retail space. EA Sports Active launched in the spring and has sold over a million units in North America. An add-on (More Workouts) was launched last week.
EA Sports Active have opened stores in San Francisco and Boston where people can book a session with an "ambassador" or just walk in and have a play. Their breakthrough initiative is based on the idea that encouraging people to try the product via 'workout' would capitalise on their research showing that 80% of their consumers were recommending EA Sports Active to their friends. They knew that they had a good product but their challenge was getting the word further out there and really differentiating it from the other products. They point out that the stores are "like living billboards" in some of the world's most desirable shopping locations…..
Apart from extending the marketing reach of suppliers in appropriate categories, this idea could reach beyond the weekend and provide a 24/7 proactive shop-window for your brand.
Have a thoughtful work-out weekend from the Namnews Team!
EA Sports Active have opened stores in San Francisco and Boston where people can book a session with an "ambassador" or just walk in and have a play. Their breakthrough initiative is based on the idea that encouraging people to try the product via 'workout' would capitalise on their research showing that 80% of their consumers were recommending EA Sports Active to their friends. They knew that they had a good product but their challenge was getting the word further out there and really differentiating it from the other products. They point out that the stores are "like living billboards" in some of the world's most desirable shopping locations…..
Apart from extending the marketing reach of suppliers in appropriate categories, this idea could reach beyond the weekend and provide a 24/7 proactive shop-window for your brand.
Have a thoughtful work-out weekend from the Namnews Team!
Thursday 10 September 2009
Wednesday 5 August 2009
A Healthier, Tougher Phoenix Arising From The High Street Ashes?
Opportunities abound, but not an easy ride…
Firstly, for those still with us, it can be useful for a supplier check its appetite for the coming High Street challenges by updating its own risk-profile based upon 18 months experience of the recession. This means checking whether the company and team are risk-seeking (taking carefully calculated chances), risk-neutral (some risk-taking) or risk-averse (avoiding all possible danger of being successful).
Secondly, the retailers should be assessed vs. likely future and much tougher competition such as national hard and soft discounters and the major grocery multiples, as these players continue to re-populate vacant retail space in the High Street, in a variety of offerings and formats such as non-foods, financial services, home entertainment, food-to-go, and even food-service, with the blessing of local government.
For branded suppliers these developments are particularly threatening in that hard discounters with their surrogate labels at rock-bottom prices, coupled with major multiples using recessionary pressures as an opportunity to grow their own label offering, will change the traditional 50/50 brand/own-label balance in the process.
For these reasons, it is crucial for suppliers to re-assess their competitive appeal vs. available competition from the point-of-view of the new savvy consumer shopping in the High Street. This ‘new consumer’ may be older, less mobile, but given the emergence of the multiples in the High Street, the new consumer-shopper will be worked upon by retail experts and cannot be taken for granted again, ever….
Firstly, for those still with us, it can be useful for a supplier check its appetite for the coming High Street challenges by updating its own risk-profile based upon 18 months experience of the recession. This means checking whether the company and team are risk-seeking (taking carefully calculated chances), risk-neutral (some risk-taking) or risk-averse (avoiding all possible danger of being successful).
Secondly, the retailers should be assessed vs. likely future and much tougher competition such as national hard and soft discounters and the major grocery multiples, as these players continue to re-populate vacant retail space in the High Street, in a variety of offerings and formats such as non-foods, financial services, home entertainment, food-to-go, and even food-service, with the blessing of local government.
For branded suppliers these developments are particularly threatening in that hard discounters with their surrogate labels at rock-bottom prices, coupled with major multiples using recessionary pressures as an opportunity to grow their own label offering, will change the traditional 50/50 brand/own-label balance in the process.
For these reasons, it is crucial for suppliers to re-assess their competitive appeal vs. available competition from the point-of-view of the new savvy consumer shopping in the High Street. This ‘new consumer’ may be older, less mobile, but given the emergence of the multiples in the High Street, the new consumer-shopper will be worked upon by retail experts and cannot be taken for granted again, ever….
Friday 31 July 2009
Empty Property Rates as an accelerator of High Street demise?
In April 2008 the government introduced a new rate on empty properties (to generate additional revenue streams in the downturn!!), thus providing the final nail in the coffin for stressed landlords of shops in the high street. (See regional picture in latest Property Week report)
Add to this the fact that the ongoing demise of the high street is part of a continuing out-of-town trend, with no going back to normal.
Meanwhile, the consumer-shopper re-entering the market is being confronted by increasing numbers of empty shops, a constant reminder of recession and the need for cutting-back.
This means that more landlords will go bust, effectively walking away from the vacant properties, leaving the government with little or no empty property tax receipts, and the additional burden of maintaining vacant property. They then have to find alternative uses for the property, possibly via reconversions to domestic use, for those unwilling or unable to shop out-of-town…
Either way, for suppliers in impulse and related top-up categories, this represents significant loss of High Street presence. A need therefore to cultivate and build upon what remains of your High Street customer-base, realistically. This means budgeting for say at least a 15% reduction on High Street sales of 2007, permanently ( unless you can anticipate a direct transfer of this business to tour out-of-town customers, or alternative channels…??)
Add to this the fact that the ongoing demise of the high street is part of a continuing out-of-town trend, with no going back to normal.
Meanwhile, the consumer-shopper re-entering the market is being confronted by increasing numbers of empty shops, a constant reminder of recession and the need for cutting-back.
This means that more landlords will go bust, effectively walking away from the vacant properties, leaving the government with little or no empty property tax receipts, and the additional burden of maintaining vacant property. They then have to find alternative uses for the property, possibly via reconversions to domestic use, for those unwilling or unable to shop out-of-town…
Either way, for suppliers in impulse and related top-up categories, this represents significant loss of High Street presence. A need therefore to cultivate and build upon what remains of your High Street customer-base, realistically. This means budgeting for say at least a 15% reduction on High Street sales of 2007, permanently ( unless you can anticipate a direct transfer of this business to tour out-of-town customers, or alternative channels…??)
Wednesday 15 April 2009
Coping with the Empty Shops Syndrome…
Our medical friends use 'syndrome' to describe a recognisable collection of symptoms and signs indicating a particular disease or condition, which is probably an apt summary of recessionary impact on the retail trade.
With shop closures approaching 15% of national retail-space, (and some extremes like Gateshead at 52% !) and the government now encouraging the use of artistic window-dressing to disguise failure in the High Street, it is probably time for suppliers to rethink their routes-to-consumer strategy…
As Tesco and the discounters cannot be expected to fully absorb the growing over-capacity, the real issue for suppliers has to be the degree of permanance in terms of reduced retail space.
Instead of waiting for the endgame to play out, proactive suppliers could conduct a risk-analysis of the impact on their business of a 15% reduction in existing space (Risk analysis )
Then, assuming that retail demand will revert to pre-recession levels (!) the supplier needs to estimate the combination of shops and online that will absorb the business lost in the High Street.
This means re-auditing their trade management model (see Kamshop for a copy of our Trade Marketing Audit Checklist) and optimising the productivity of the customers still standing…while others sit and wait (or visit the new craft-shops)
With shop closures approaching 15% of national retail-space, (and some extremes like Gateshead at 52% !) and the government now encouraging the use of artistic window-dressing to disguise failure in the High Street, it is probably time for suppliers to rethink their routes-to-consumer strategy…
As Tesco and the discounters cannot be expected to fully absorb the growing over-capacity, the real issue for suppliers has to be the degree of permanance in terms of reduced retail space.
Instead of waiting for the endgame to play out, proactive suppliers could conduct a risk-analysis of the impact on their business of a 15% reduction in existing space (Risk analysis )
Then, assuming that retail demand will revert to pre-recession levels (!) the supplier needs to estimate the combination of shops and online that will absorb the business lost in the High Street.
This means re-auditing their trade management model (see Kamshop for a copy of our Trade Marketing Audit Checklist) and optimising the productivity of the customers still standing…while others sit and wait (or visit the new craft-shops)
Thursday 2 April 2009
Tesco Looking To Open At Failed Pub sites
Tesco has reportedly lodged hundreds of planning applications to cash in on the failure of pubs and rival retailers. According to the Daily Mail, Tesco has already identified ten pubs that it plans to convert into stores
Obvious advantages in that readymade licences to sell food and drink simplify the conversion process.
Wild idea:
What if Tesco are planning to diversify into the pub business?
Think about it…..
In fact, Tesco are uniquely positioned to combine an unwavering focus on shopper satisfaction via an enhanced shopping experience, scale advantages in Food and Drink purchasing, value for money, etc, etc (name a few?)
Then spare a thought for drinks suppliers with potential prices & terms disparities, on and off-trade...
Obvious advantages in that readymade licences to sell food and drink simplify the conversion process.
Wild idea:
What if Tesco are planning to diversify into the pub business?
Think about it…..
In fact, Tesco are uniquely positioned to combine an unwavering focus on shopper satisfaction via an enhanced shopping experience, scale advantages in Food and Drink purchasing, value for money, etc, etc (name a few?)
Then spare a thought for drinks suppliers with potential prices & terms disparities, on and off-trade...
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