When Greece defaults....

Given the inevitability of a default, KAMs may be interested in a Daily Telegraph article on what happens next:

• Every bank in Greece will instantly go insolvent.
  
  
• The Greek government will nationalise every bank in Greece, forbidding withdrawals from Greek banks.
  
  
• To prevent Greek depositors from rioting on the streets, the Greek government will declare a curfew, perhaps even general martial law.
  
  
• Greece will redenominate all its debts into “New Drachmas” or whatever it calls the new currency (this is a classic ploy of countries defaulting)
  
  
• The New Drachma will devalue by some 30-70 per cent (probably around 50 per cent, though perhaps more), effectively defaulting 0n 50 per cent or more of all Greek euro-denominated debts.
  
  
• The Irish will, within a few days, walk away from the debts of its banking system.
  
  
• The Portuguese government will wait to see whether there is chaos in Greece before deciding whether to default in turn.
  
  
• A number of French and German banks will make sufficient losses that they no longer meet regulatory capital adequacy requirements.
  
  
• The European Central Bank will become insolvent, given its very high exposure to Greek government debt, and to Greek banking sector and Irish banking sector debt.
  
  
• The French and German governments will meet to decide whether (a) to recapitalise the ECB, or (b) to allow the ECB to print money to restore its solvency.
  
  
• They will recapitalise, and recapitalise their own banks, but declare an end to all bailouts.
  
  
• There will be carnage in the market for Spanish banking sector bonds, as bondholders anticipate imposed debt-equity swaps
  
  
• Attention will turn to the British banks. Then we shall see…

When?

Financial markets anticipate anything from a month to 2 years.

Your Action: Worth a 'what if' by KAMs for key markets/customers?

i.e.

• Supplies to Greek customers invoiced in Euros (at up to 150 days credit)
• Impact on Parallel trade

etc, etc,

Hooked? See the article's comments section for 352 mixed views...

A real-world dip for bankers?

Some speakers at a recent BSA (Building Societies Assoc.) Conference in Birmingham raised the issue that the grocery multiples might not fail in treating financial services like selling groceries…

Perhaps the delegates might consider what financial services innovation the grocery multiples can offer the banking sector:

• Ability to assess and underwrite a shopper’s insurance risk and price based on goods (alcohol, tobacco, health food, medicine) in a shopping basket, whether it be for a mortgage or an unsecured loan.
• Staffing coverage matched to customer need i.e. lunch-hours
• Customer focus reflected in the offering i.e. selling what customers need
• ‘Shopping-around’ acknowledged as a customer driver i.e. making comparison easier, with price-comparison web sites to ensure the retailers never forget…
• Ability to learn from their ‘mistakes’ and re-engineer the offering, fast (think global financial crisis, trust, risk, performance-based-reward,…..)
• Above all, trust and an abiding interest in the consumer-shopper, from womb to tomb (and perhaps a little afterwards?)

Any banks that still think Tesco/Asda/JS/Morrisons and the Co-op are about grocery retailing need to remove the blinkers and spare a couple of hours ‘shopping around’ the 24/7 ‘grocery’ environment and think grocery banking…

By lunchbreak (!), it may be obvious that in fact, all the banks need is a 180 degree turn, coupled with cultural re-bore and a 100% makeover to even think about remaining in the financial services game…

Focus on optimising Administration

Today’s news that Focus are going into administration coupled with latest downbeat reports from retailers including Mothercare, HMV, Currys and PC World parent Dixons Retail are indicative of the current pressure on retailers in the UK. In addition, other research revealed that more than 8,000 UK retailers were apparently in danger of going under in March.

Despite the fact that confronting ‘doom and gloom’ may be seen as demotivating, we sincerely believe that in the current climate, the NAM/KAM role in 2011 is about being able to face up to and optimise reality, failing which someone will do it on their behalf.

It is about being able to perform as well as, or better than, equivalent companies in the marketplace, whatever the circumstances…

Having to manage customers in a bankrupt environment is not only unprecedented, but it should be borne in mind that operating under these conditions through the remainder of 2011 can provide the equivalent of twenty years of highly concentrated business experience for those prepared to take up the challenge.

In other words, if you can make it in this environment, nothing, repeat nothing, will ever be more challenging….or satisfying.

For more details on how to spot and manage a retailer in distress contact us (free editorial and tips)

Coping with Buyer-stress?

News of a trademark dispute* where rival wine sellers targeting stressed out mothers with Mommyjuice wine, raises the possibility of producing an alcoholic respite specially for KAMs.

Could “KAMjuice” be your way of dealing with the rigors of JBP negotiation, a deserving treat when KPIs are achieved, and even a consolation when buyer intransigence takes the edge off an already-budgeted bonus?

Have a memorably long royal weekend, from the Namnews Team!

Easter instore theatre, incremental ceiling space,bigtime!

UK instore theatre can be pretty efficient but not as exciting as French retail.

However when 20+ years of French retail is mixed with South American flamboyance, Brazil beats the lot.

Pic shows how I have seen Easter eggs promoted in Sao Paulo...

Eachway Bank robbery trends?

New statistics from the US indicate that third party robbery of banks takes place most often on Fridays mid-morning, presumably in readiness for weekend expenditure?

It would be helpful if similar statistics were provided for the UK, to complement consumer perception that banks here tend to rob their customers on a continuous stealth-basis via borrowing/deposit rate disparities…

Have a calculated weekend from the Namnews Team!

Life after retail?

For those leaving a high-powered role at the top of their game in retail, and too young to retire..

Perhaps they should try a more leisurely job with the train-set at National Rail?

Or stick to the platform in future?

Have a high-speed weekend, from the Namnews team!

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.

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...

Meerkat town: Harborough twinned with fictional Russian village of Meerkovo

The power of advertising…

Yesterday Market Harborough changed its name to Meerkat Harborough (just for a day) in honour of

fictional meerkat star Aleksandr Orlov, a name-change that deserves to be made permanent?

Have an inComparable weekend, from the Namnews Team!

Automated store-checking..

At last! An inconspicuous aid for memory-challenged NAMs

Given the introduction of Eyetracker to measure every movement of a shopper’s eyes, it is now possible for a NAM to masquerade as a real shopper to record an entire store visit, thereby avoiding the need for a camera-concealing raincoat, and the risk of being compromised by a quick flash in the aisle….

Have a record-making weekend, from the Namnews Team!

Fragmented Media, free....

Ever wondered why your above-the-line adverts may be failing to impact the apathy...?

The above news-stands offer 13 different segmented titles outside Southwark Tube station in central London...

Still, hopefully typical commuters restrict themselves to one title per day.....?

Bargain on-shelf brainteasers

According to a study of shopper-reaction to complex price-deals, the range of sizes and prices of popular foods makes finding the best value pack almost impossible*.

Whilst some shops may have confidence in the mathematical skills of the increasingly savvy shopper, the overall reaction to complex offers has to be suspicion…a big negative impact on brand equity…brand or private label..and given that pricing is deemed to be the responsibility of the shopkeeper, it is they who will suffer the fallout…

*If in doubt, why not try following value-quiz..?

Click diagram to enlarge

Sainsbury’s Heart-Shaped Cucumber For Valentine’s Day

There is a whole new way to show your love this Valentine’s Day with the launch of a Heart-Shaped Cucumber from Sainsbury's, priced at £1 per portion.

A statement from Sainsbury’s said: “Perfectly shaped once sliced, surprise your loved one with an at-home spa treatment complete with a relaxing face mask or play Aphrodite - Goddess of Love by making a romantically dressed Greek salad”. A limited number of the cucumbers will be harvested this year, although Sainsbury’s said that other seasonal shapes are planned for later in the year. Elaine Young, a spokesperson for the chain said: "Valentine's Day carries such an element of surprise we hope this year's fun love cucumber will get hearts racing, whether it's in a romantic packed lunch or a lovingly prepared salad."

Pre-used cars at Tesco

Press reports indicating that Tesco are about to extend their franchise into the sale of second-hand cars are generally relating the initiative to the stereotypical behaviour of ‘Arthur Daley’ and other old-fashioned car salesmen, and are tending to echo the traditional car-trade’s semi-sarcastic reaction to the news.

However, fear would be a more appropriate emotion…

As all Tesco NAMs appreciate, Tesco are seriously restricted by competition legislation from extending their share of food categories in the UK. This means that in order to sustain UK growth their main focus is on non-food, with a passionate interest in shopper satisfaction. Following similar moves in the pre-owned games category, Tesco will elevate the sale of second-hand cars to new levels, in terms of quality, reliability, value for money and trust. And all of this aimed at building repeat business.

Additional car-category ‘no brainers’ will probably include BOGOFs, His ‘n Her offers, car insurance, easy payment schemes, servicing and tyre-replacement…

And who knows, eventually a move into new-cars and even private label?