Retail queue optimisation - or how to burn a mink coat safely...

                                                                                                    pic: Kim Stallwood

According to The Telegraph, the UK population is losing the ability to form an orderly line, in that companies are developing new technology to make queuing more efficient or eliminate waiting altogether.

In fact, dedicated tennis fans join the famous (or infamous) Wimbledon queue every year and, for many, waiting in line has become almost as enjoyable as the tennis itself.

However, this may become increasingly exceptional.

In fact it is estimated that British retailers lose almost £4,000 a day because people are put off making purchases by queues.

The article goes on to detail initiatives by John Lewis aimed at to shortening queues for "click & collect" parcels, sensors embedded in trolley wheels, Barclaycard Anywhere’s device that eliminates the need for receipts and cash protection in-store, and provides a number of pictorial examples of potentially redundant traditional UK queueing…

Speaking of which, despite having a low tolerance limit for any form of queueing, I did spend 15 minutes in a sale-queue outside a major London store, back in 1979..

A neighbour of mine had decided to queue for 5 days to secure a mink coat reduced from £795 to £79, which she planned to burn in an animal rights protest.

Details here & here

I was working in Oxford St on Fay's fourth day and decided to join her in line and keep her company for a while. She was delighted to see me (!) as she apparently had some technical issues to resolve i.e. how to ensure the coat burned quickly. I assured her that my expertise was limited to retail buying and selling, but decided to practice my listening skills for a moment…

I asked her what she planned and she told me about a bottle of petrol she had about her person, intending to sprinkle it liberally, etc.

I cautioned her that unless she intended to make the ultimate sacrifice, perhaps draping the coat over a nearby wire waste-bin (pic) would suffice…thus ensuring a 100% success in terms of media coverage, and my little place in history…

For the NAM in a hurry...

See the Cargo-Runner, and how it works, here ( BBC )

Are your media strategies keeping pace with market realities?

                                                                    Pic: B Moore: Olympia 27-06-2015

The case for Shopper Marketing, packed in a conundrum?

We somehow break through the apathy - at great expense in terms of time, money and people - in unprecedented times, within a flat-line demand environment, at a significant price disadvantage in a cut-throat environment, manage to get our brand considered as a fleeting alternative, and motivate the potential consumer to move towards the nearest store.....

Only to leave them to their own devices at the door.

They then have to find their way to our part of the store, cope with the confusing appeals of the category's competing offers, including private label, all subject to the inevitable 'cool-off', even if our offer presents on-shelf as intended...

"I cannot forecast to you the action of the brand owner. It is a riddle, wrapped in a mystery, inside an enigma; but perhaps there is a key. That key is the brand's need for 110% consumer satisfaction."
(with apologies to Mr Churchill)

The GCA-GSCOP five-issue approach to optimisation of supplier-retailer relationships.....

Some indication of the steady progress being made by the GCA can be gleaned from the latest YouGov survey (here), but nothing beats participating in yesterday's 2nd Annual Conference, a unique mix of Sales, Finance and Legal stakeholders, all sharing a common interest in optimising the supplier-retailer relationship.

(NamTip: key for NAMs to have a detailed knowledge of GSCOP in order to fulfill their co-ordinating role re the major customer)

At the start of the GSCOP process, the GCA was faced with what could have been an overwhelming number of potential issues. However, by focusing on a rolling five-issue 'hit-list', Christine Tacon was able to help both suppliers and retailers focus on a manageable set of issues within GSCOP as follows:

Top Five Issues:
1. Consumer complaints (processing charges by retailer) - New (in discussion)

2. Delays in payment (failure to pay suppliers within agreed time periods) - New (in discussion)

3. Forecasting/service levels (issues arising re forecasting and call-off/delivery) - Live (currently under discussion with each party)

4. Requests for lump sums: (see GSCOP) - Live (currently under discussion with each party)

5. Packaging & design charges (possible excess over market rates) - Live (currently under discussion with each party)

Forensics: third party audits (2 year limit on claims) - Closed (meaning agreement has been reached on process and  interpretation. Any further instances will be regarded as in breach)

Drop and drive - delivery performance:
(issues around possible discrepancies between deliveries and receipts - Closed (see Forensics)

As can be seen above, given that two issues are 'Closed', five issues remain. At yesterday's conference it was announced that the Consumer complaints issue is now closed. This means the GCA is now in the process of prioritising a new issue, to be determined by degree of relevance to suppliers/retailers i.e. your opportunity to submit details of perceived breaches either directly to the GCA, or via your trade association.

It has taken many years to reach this point in the evolution of supplier-retailer relationships. The application of GSCOP is now gathering momentum but still requires 'proof of purchase' in order to access the benefits

Your input can help...

NB GCA Conference: Speaker presentations now available here

Tesco Express-cashback?

                                                                                                                                               pic: Mirror
Police hunt robbers after supermarket cash machine blown off wall with explosives at Newtonhill Tesco, Aberdeenshire

Restructuring for the new UK retail trade environment

With all attention focused on the structural changes occurring in UK retail, in particular the growth of the discounters and Waitrose at the expense of the Big 4, in a flat-line market, very little attention is being paid to the most obvious of knock-on implications, the need for some adjustment in how we manage this new mix of retail routes to consumer…

At current rates of large space redundancy, the economics of selling off ‘spare’ space – at a rate that forces buyers of the property to achieve sales intensities of £1,000/sq. ft.+ to justify the investment, the resulting property lock-in prevents major retailers from scaling down to the smaller, closer convenience outlets demanded by consumers shopping more often in smaller quantities.

This has to result in a gradual loss of market share from Kantar’s current levels of 73.5% for the Big 4, to a combination of the discounters, Waitrose, online and emerging formats. Incidentally, even if the Big 4 retain their fair share of online growth, online success does little or nothing to address their bricks & mortar surplus issues…

This has to result in losses in market share for the Big 4 – the only issue is the point of settlement..

All of this means that the requirements of the UK NAM role are changing, along with the relative importance of the Big 4 in supplier portfolios.

Time for a market-led change of emphasis at NAM level? 

Subscribers can access the implications and options for NAMs in the June issue of NamNews.

Waitrose 'pick your own discount' scheme - a further move from Back to Front margin?

Waitrose has introduced a new personalisation initiative instore and online called ‘pick your own offers’ to keep up with the competitive grocery market.

myWaitrose loyalty card holders will be encouraged  to select 10 products that they would like to save 20% on, from 1,000 own-label and branded goods (staple items and more luxurious treats).
Whilst Waitrose unique initiative democratises the discount-choice, the issue for suppliers has to be the removal of control from a classic back-margin driven bucket, to a 1,000 product pool of Waitrose choice, and ultimately the discretion of the shopper…

Not what was intended in supplier strategies, but perhaps the ultimate in meeting shopper needs?

...and if successful in terms of traffic driving, a pointer for other retailers?

BTW, if you feel more secure with traditional back margin utilisation, it may be worth checking your category promo-profitability rating in Nielsen's latest interactive Win-Lose survey of promo-breakeven results