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Archive for the ‘Retail News’ Category

Carbon Footprint – the effect on university convenience stores

Posted on Wednesday, August 4th, 2010

The reduction of our carbon footprint is a subject of much debate and target setting. The large supermarkets and retailers have set targets to reduce their footprints. Marks & Spencer want to be carbon neutral by 2012 and Tesco are adding carbon footprint to their product labels.

When working with a university convenience store this week I was informed that the target they were working to was a reduction of 20% by 2012. The retail team have been asked to reduce both the distance their products travel and the number of deliveries onto campus.

This has led to reviews of several areas. For example they have plans to increase storage capacity to increase the amount of stock held on campus and strategies to reduce the number of suppliers used.

Whilst these will go some way to reduce the carbon footprint they have the potential of hitting the bottom line. For example, there will undoubtedly be an increased amount of capital tied up in stock as well as the potential for a reduction in margins as a result of the need to switch supplier. For internally run convenience stores the effect of these actions will start to add up.

Conversely by moving in line with the major supermarkets it could be argued that the positive impact on the brand and its image will outweigh some short lived effects on profit performance.

I would love to hear your thoughts on the subject and what other university retail teams are doing to reduce their carbon footprint. Please do let me know!



Retailing – but not as we know it!

Posted on Monday, August 2nd, 2010

I have worked with many university convenience stores, with both known brands and internally run stores, each wanting to improve their sales and profit performance. Somewhere along the line they have forgotten how to focus their business to drive sales. In some case they have never really known what was working so they are not sure what to do to put it right.

Mary Queen of Shops on BBC2 had us all hooked – retailers and laymen alike. Many of my friends and family who are not retailers liked to raise their eyebrows and gasp at the terrible retailing sins committed, adding “gosh even I could see why they weren’t taking money!”

I wanted to write something this morning for all those retailers who are struggling to keep their heads above water to let them know that even the best retailers, those with comparatively huge teams and budgets at their disposal, get it wrong sometimes.

Marks and Spencer have introduced a range of our favourite brands. I had been receiving feedback from all corners of the UK on what loyal customers thought. So last week I went to check it out for myself.

My first reaction: What a mess!

My next: What are they doing?

And finally: What were they thinking? This is M&S, but not as I know it.

Sandwiched between cards and gifts and fresh fruit and salads there was a shelving display of ambient, branded products unceremoniously dumped on shelves. Not only was the positioning out of kilter with the rest of the food hall, the display standards were the poorest I have seen anywhere for a while. Further feedback reveals a similar story across the UK.

As a customer, if you want washing powder you will go to the household section of a supermarket; if you want a deodorant you will go to the toiletries department not to the ‘branded aisle’ just in case one of “our favourite brands” happens to be a deodorant.

This amateur display sent a very clear message: We have these new products, but we are not quite sure what to do with them. We are in a panic to get them onto the sales floor to display and sell them.

The stores I have had feedback about could well be part of a test to establish the best position for the products, or they may be temporary displays to let customers know they are ‘new’ in store. However the overwhelming customer response to the handling of new arrivals is not a positive one.

The brands are alien to the food hall but the product categories are not. Instead of using tried and tested layout and display formulas, these products were treated like foreign objects.

So whilst we all sit in armchairs despairing at independent retailers getting it so wrong, let’s not forget – even the best can take their eye off the ball.