The Irish Times today publishes details of a Code of Practice that would
- prohibit listing or promotions/displays fees
- require written agreement on retailer marketing costs or shrinkage allowances
- appoint a grocery-funded ombudsman
- allow public consultations response by the end of September!
Issue of statutory or voluntary left open for now, but given the fact that so many backs are closer to the wall than in the UK, coupled with the political pressures arising from a post-Celtic Tiger environment, means that it is highly likely that this code will be implemented on a statutory basis, with an Ombudsman to ensure that the Code's teeth are used.
A pointer for the UK?
Full copy of new draft Code of Practice here
Tuesday, 11 August 2009
Friday, 7 August 2009
The Inevitable Ombudsman - a way forward to Fair-Share relationships?
Fair-share negotiation is normally the final output of a mutually-beneficial supplier-retailer relationship.
Perhaps this could be a good place for the Ombudsman to start?
See Fair-share Negotiation Video
If you agree, why not pass on the link?
Perhaps this could be a good place for the Ombudsman to start?
See Fair-share Negotiation Video
If you agree, why not pass on the link?
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, 29 July 2009
Answering to the Queen on the credit crunch?
Economic experts at the Bank of England have written to the Queen explaining why the credit crunch had not been predicted, a newspaper reported on Sunday. The reasons given can be a warning for KAMs in recession, and also point a way forward for those prepared to seize the opportunity.
Essentially, the three-page letter explained that apart from how cheap borrowing had encouraged a "feel-good factor", masking a global imbalance in savings and debt, wishful thinking combined with excessive pride had convinced financial wizards they had come up with a way to spread risk throughout financial markets," it added. "Everyone seemed to be doing their own job properly on its own merit. And according to standard measures of success, they were often doing it well," the letter said. "The failure was to see how collectively this added up to a series of interconnected imbalances over which no single authority had jurisdiction."
In other words, all of the colleagues involved in multilevel and multfunctional management of major customers, in a well-organised supplier-company can each be doing an expert job 'proudly' in difficult market circumstances. However, unless a collective view of management of the customer is taken by a respected KAM, a series of collective imbalances and knock-on effects could compromise the bottom line of the customer P&L.
The way forward is to achieve a risk-reward balance between supplier and customer ROCE aspirations, via effective coordination by the KAM.
As finance is the only language-in-common for all functions, it provides a way for a KAM to really take a collective view, and formulate a team-based customer strategy. This can be made more effective in terms of commitment by translating all aspects of the supplier-customer relationship into financial language. It is then essential to relate the conclusions to the needs of multifunctional and multilevel team members, in terms of cost and value, building respect and influence in the process…
Alternatively, why not allow all the 'customer-experts' to excel at their own 'thing', and await a call from the Palace?
Essentially, the three-page letter explained that apart from how cheap borrowing had encouraged a "feel-good factor", masking a global imbalance in savings and debt, wishful thinking combined with excessive pride had convinced financial wizards they had come up with a way to spread risk throughout financial markets," it added. "Everyone seemed to be doing their own job properly on its own merit. And according to standard measures of success, they were often doing it well," the letter said. "The failure was to see how collectively this added up to a series of interconnected imbalances over which no single authority had jurisdiction."
In other words, all of the colleagues involved in multilevel and multfunctional management of major customers, in a well-organised supplier-company can each be doing an expert job 'proudly' in difficult market circumstances. However, unless a collective view of management of the customer is taken by a respected KAM, a series of collective imbalances and knock-on effects could compromise the bottom line of the customer P&L.
The way forward is to achieve a risk-reward balance between supplier and customer ROCE aspirations, via effective coordination by the KAM.
As finance is the only language-in-common for all functions, it provides a way for a KAM to really take a collective view, and formulate a team-based customer strategy. This can be made more effective in terms of commitment by translating all aspects of the supplier-customer relationship into financial language. It is then essential to relate the conclusions to the needs of multifunctional and multilevel team members, in terms of cost and value, building respect and influence in the process…
Alternatively, why not allow all the 'customer-experts' to excel at their own 'thing', and await a call from the Palace?
Friday, 24 July 2009
Camel's Milk, for a real difference?
Your Chocolate-free Diet Giving You the Hump?
Why not have a break and try Dubai's Al Nassma, the world's first brand of chocolate made with camels' milk?
Camels' milk is seen as healthier than cows' milk, containing five times more vitamin C, less fat, less lactose and more insulin, making it a good option for diabetics and the lactose intolerant, a company spokesman said. With 3,000 camels on its Dubai farm, the company sells chocolates through its farm-shop as well as in luxury hotels and private airlines. It plans to launch an online shopping facility within a month.
Have a hump-free weekend, from the Namnews Team!
Why not have a break and try Dubai's Al Nassma, the world's first brand of chocolate made with camels' milk?
Camels' milk is seen as healthier than cows' milk, containing five times more vitamin C, less fat, less lactose and more insulin, making it a good option for diabetics and the lactose intolerant, a company spokesman said. With 3,000 camels on its Dubai farm, the company sells chocolates through its farm-shop as well as in luxury hotels and private airlines. It plans to launch an online shopping facility within a month.
Have a hump-free weekend, from the Namnews Team!
A Sporting Chance in Retail?
Suppose Tesco had significant shareholdings in JS, Asda and Morrisons, supplied Morrisons and other retailers, owned Pepsi and Coca Cola, and if the chairman of Tesco had loaned the chairman of Morrisons £1.5m?
Now flip over to the Sporting Goods category…
SportsDirect, the lead player in the sector, has
- 29% of Blacks Leisure
- 13% of JD Sports Fashion
- 4.76% of JJB Sports (recently sold?)
SportsDirect supplies JJB and other retailers
They also own Dunlop and Slazenger brands (Dunlop-Slazenger Ltd)
Finally, the chairman of Sports Direct is at odds with JJB re the timing of a loan of £1.5m he made to the current chairman of JJB.
Watch this space…!!
Now flip over to the Sporting Goods category…
SportsDirect, the lead player in the sector, has
- 29% of Blacks Leisure
- 13% of JD Sports Fashion
- 4.76% of JJB Sports (recently sold?)
SportsDirect supplies JJB and other retailers
They also own Dunlop and Slazenger brands (Dunlop-Slazenger Ltd)
Finally, the chairman of Sports Direct is at odds with JJB re the timing of a loan of £1.5m he made to the current chairman of JJB.
Watch this space…!!
Wednesday, 22 July 2009
Making money with passion, and all that jazz…
Jazz, despite its seemingly free-wheeling style, operates to passionately-felt and carefully defined disciplines that provide an essential context for high levels of improvisation and creativity.
It just seems loose...
Some time ago, the tenor-saxophonist, Frank Foster (Count Basie Band), was playing a street concert from the Jazzmobile in Harlem. He called for a blues in b-flat. A young tenor player began to play "out" from the first chorus, playing sounds that had no relationship to the harmonic progression or rhythmic setting. Foster stopped him.
"What are you doing?"
"Just playing what I feel"
"Well feel something in B-flat, motherfucker"
(Source Wynton Marsalis, The Guardian)
In the same way, running a business in the current economic climate requires basic disciplines to encourage and guide highest levels of innovation to ensure survival.
Setting and working within the core discipline of an acceptable level of Return on Capital Employed, allowing sufficient freedom to innovate and improvise with optimum energy, has to provide a basis for survival and growth, even enjoyment, despite the impossible odds.
However, if creative initiatives cause you to ignore the reality of ROCE KPIs, don't be too surprised if someone else reminds you of the basics, passionately...!
It just seems loose...
Some time ago, the tenor-saxophonist, Frank Foster (Count Basie Band), was playing a street concert from the Jazzmobile in Harlem. He called for a blues in b-flat. A young tenor player began to play "out" from the first chorus, playing sounds that had no relationship to the harmonic progression or rhythmic setting. Foster stopped him.
"What are you doing?"
"Just playing what I feel"
"Well feel something in B-flat, motherfucker"
(Source Wynton Marsalis, The Guardian)
In the same way, running a business in the current economic climate requires basic disciplines to encourage and guide highest levels of innovation to ensure survival.
Setting and working within the core discipline of an acceptable level of Return on Capital Employed, allowing sufficient freedom to innovate and improvise with optimum energy, has to provide a basis for survival and growth, even enjoyment, despite the impossible odds.
However, if creative initiatives cause you to ignore the reality of ROCE KPIs, don't be too surprised if someone else reminds you of the basics, passionately...!
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