SnapShop Blog
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This Town Is Nothing But A Ghost Town |
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Posted At: 23 June 2009 15:39 PM
Related Categories: Future of Retailing, Retailers |
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I was saddened by the news that Brinker International has closed all of their UK restaurants – officially confirmed at the end of last week – not least because this means the demise of one of my more recent favourite restaurants, Chilis.
Chilis was what I supposed can be described as a tex-mex style restaurant, offering the usual classics such as chilli cheese fries, burgers, quesadillas, and New York strip steaks.
I know you can get that stuff everywhere, but you know, sometimes you just find a place you like and roll with it. And besides, it was a bit more 50’s than, say, TGIs (I remember it having a black and white chequered bar floor, at least!) and I love all things 50’s.
I’m sure I’ll get over it, and it may even prompt me to visit some of the better, more classic American diners peppered across the UK. (The 50s American Diner, Swadlincote, Derbyshire; Nelsons Diner in Newbury, Berkshire; Woodies or JJBs, both in Brighton; or one of the Ed’s Easy Diners across London and the south.)
Hopefully, this sad news will also give some still-existing chains food for thought; if even an American giant like Brinker have given up the ghost, perhaps it’s become more important than ever to offer value for money, good service and a reason for your customers to return.
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The Bells, The Bells!! |
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Posted At: 08 June 2009 14:51 PM
Related Categories: Retail Statistics |
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No the retailers have not started early for Christmas this year and no this is not the death knell sounding again for yet more ghastly economy news! What I would like to discuss today is weddings!
We all love a good wedding don’t we…or do we? As I have noticed (yes I have got to ‘that age’) more and more of my friends are heading down the aisle, and while we all know that they’re costly occasions, research suggests that Bridezillas are not about to let a little thing like a recession get in the way of their big day! In fact, because marriages are more often than not saved for and planned in advance, the wedding sector of the retail market has yet to be affected by the aforementioned woes. And in June last year it was reported that the cost of weddings was still on the increase.
The Telegraph reported on findings from You and Your Wedding – which has been monitoring the cost of ceremonies for over 12 years - that the average price totaled £20,273, compared with just £14,643 five years before, in 2003. It is believed that this year’s figure will top £21,000, but it’s not just a cost to the bridge and groom (of their parents)…these days, we all have to fork out! Let’s look at the cost of weddings from a guest’s point of view first: ~
As reported by WalletPop UK, a survey conducted by Halifax last month revealed it costs on average over £600 pounds to attend a wedding. The top 5 items we spend on are listed below:
1. An outfit for the big day (av spend £123)
2. Present for the happy couple
3. Accommodation near the venue if is not local (circa £109)
4. The Hen or Stag Party
5. Reception drinks
67% of respondents were prepared to spend whatever it took to make the big day special for the happy couple...ahhh, but should that really be the case? In times of hardship, surely something’s got to give?
The article then goes on to explain how an individual can dramatically minimise their celebratory expenditure, however I am not so sure I would agree with some of the suggestions (a bed and breakfast instead of a hotel – fine common sense – a camp site however er I think perhaps not!)
And its good news for parents too - although the tradition is for the father of the bride to foot the bill, a lot of couples nowadays are choosing to hold off and to contribute towards some, if not all, of the costs.
Big Money
The most costly part of any wedding is the reception; this includes venue and catering costs, plus any entertainment; spending on the reception was averaging out at £7,700 this time last year, while honey moon costs come in second, followed by the engagement ring for the bride in third place.
The Dress
The reported average cost of a wedding dress comes in at just under £1,000. But that figure may not be particularly reflective of the truth. With the dominance of traders like eBay it is possible to pick up the dress of your dreams (so I hear) for well under half that. Of course, you don’t have to penny pinch; one young lady from Gloucester proved dresses can be a hell of a lot pricier than that. This particular bride got married in a 60ft-wide gown. It (the gown not the bride) weighed 25 stone and cost £25,000 – in fact, it was so heavy it had to be pushed up the aisle!
Retailers and the Credit Crunch
Doing the research for this blog I found that wedding dress retailers have all experienced their own economic downs, however sales now seen to be on the rise. It seems that sensible as it may seem, cutting back on the special day is simply not an option for most; a fact I’m sure the wedding sector will be relieved to hear!
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There Might Be A Village Missing An Idiot Somewhere |
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Posted At: 05 June 2009 00:00 AM
Related Categories: Media |
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There are a lot of television programs focussing on the retail and hospitality industries at the moment, and being a little bit cynical, I can’t help but feel it’s not a coincidence.
BBC 2’s Keep It In The Family featured Austin’s department store last night; we have Mary ‘Queen Of Shops’ Portas banging on about all sorts; staff let loose running Sainsbury’s; Gok focussing his Fashion Fix on the high street and last but not least final The Apprentice candidate Yasmina Siadatan as the proud owner and Director of her very own restaurant.
I do have to call into question the decision of a restaurant Director to enter The Apprentice just one year into her company’s history, and moreover the decision of Sir Alan to put her through to the final round. A sceptic (not me, never) might suggest she went on there to get some publicity for her venture…or even, maybe, that she intends to secure the job to aid the financial survival of the fledgling business. After all, she was quite economical with the truth of her restaurants success; I took a quick look at the accounts of Mya Lacarte earlier, and although a profit in your first year is commendable, it was not 4.5% of the turnover as she quoted in Wednesday nights show or even in double (k) figures! And she’s probably feeling some pressure, what with her ma having remortgaged her house to finance the venture and all…
Cynical? Never ever!
Ok yeah I am. I think that all TV scheduling is contrived by the government in a bid to manipulate us into doing what they want! Let me explain…
I know that TV – especially reality TV – has always been a little bit kitchen-heavy, but the phenomenon of focusing on shops and retail, is quite new. There was probably some show that did it many moons ago, but my [still quite] youthful mind can think of nothing before Mary Queen Of Shops, which started in 2007…back when times were more lucrative for salesmen (and women). In the present, though, it’s no secret that we are in a full blown economic (and political, and environmental and whatever else) meltdown, and the hospitality and retail sectors are the two that are particularly suffering…so, a little bit of TV exposure cannot be a bad thing, right?
Maybe its brainwashing, of the subconscious kind (is there a conscious version of brainwashing?); maybe it’s the government's way of pulling us out of the spending rut – show us a shop and we will shop! And maybe that Yasmina caught onto this way before me. Whatever, if that is the case, it’s very clever; I’m sure her restaurant's website hits have gone up, just as I’m sure Mary Portas’ charity shop, Living & Giving, in Westfield will do stonking trade of the back of its TV show. I wonder which industry will get the over exposure treatment next..?
Remember, a SnapShop Performance Membership gives you access to the official financial accounts (from Companies House) for the top UK retailers and restaurants, and all are downloadable (most are also analysed). Performance Membership is just £395 +VAT, and can be purchased here. Alternatively, email me for more information.
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Give Me Some Credit |
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Posted At: 28 May 2009 15:10 PM
Related Categories: Finance & Investment Management, Retail Suppliers, Retailers |
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Although several major retailers now have finance arms, more than you think are embroiled in the race to lend us their cash.
Can you name which retailers offer credit cards? That’s credit cards, not store cards…
Tesco? Yup. M&S? Certainly…struggling? You’ll be surprised who else offers them; HoF, Sainsbury’s, Asda, Waitrose, Homebase, Bhs, Argos, Post Office, Debenhams, Sky and most recently…play.com!
Last week, it was announced that Play.com had launched its own credit card through MBNA, with an APR of 15.9%. As well as being a bona fide credit card – as in, you can use it everywhere, unlike a store card, which limits you to a store – it also offers a points reward scheme for avid spenders. In fact, if you spend £150 within 90 days, you’ll get 1,500 ‘points’! A tempting offer in the first instance, but when you look a bit further, you realise that that’s just a £15 reward! And what’s more, its fifteen extra pounds you have to spend with them. Doesn’t sound as rewarding as, say, Dorothy Perkins’ £5 voucher, 20% discount and free £7 top, now does it?!
Play.com chief operating officer Stuart Rowe said: "We are very excited about the launch of our Play.com Credit Card this year. The Play.com card will be another way of rewarding our customers for their ongoing loyalty."
What he really meant to say was "We are very excited about being able to legally trick people into spending a load of money with us for very little benefit to themselves but a whole load of massive money dollars for us! Har har, SUCKERS!”
Although, disclaimer time, 15.9% APR is quite good and I’m sure people who go for a play.com card will already be patrons of play.com anyway. Phew.
Anyway, fact is, I don’t understand why so many retailers are queuing up to give us money (if you pass the stringent credit checks – i.e don’t need it). I mean of course I understand, but I just think it’s a little irresponsible, and not what a retailer should be concentrating on at all. Sell me stuff, don’t be my bank manager…my finances are for me and him to worry about, thank you very much amen.
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Jungle Red - A Sign of The Times?? |
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Posted At: 20 May 2009 13:39 PM
Related Categories: Retail Statistics |
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I don’t know about you but I am a tinsy bit (read: a lot) bored of hearing about the recession. I was however interested to read about the Lipstick index. I was even more intrigued to hear that most of my colleagues knew about it!
For those un-enlightened I shall enlighten…
It is not as well known as the FTSE and the Dow however the Lipstick Index is now considered as a reliable mirror of the economy. Leonard Lauder chairman of cosmetic company Estee Lauder realised that sales of their lipsticks rose as the economy crumbled.
The theory being when people are looking after the pennies they may not splash out on a new Porsche/Mansion/Louis Vuitton Handbag but can justify spending a few quid on a Lipstick to cheer themselves up.
So then I started thinking what else is beating the recession.
At the beginning of the year
1. John Lewis reported a 39.5% increase in buttons and 34.4% increase in sewing machines
2. Durex sales were up 10%
3. Caravan sales increased 10-15% - the Caravan Club reported a 27% increase on advance bookings compared with last year
4. Cadbury Dairy milk sales had soared by 11%
TNS have reported a 10% increase in the sale of home baking ingredients – herbs, spices, flour and sugar are all doing a roaring trade.
According to USATODAY the number of stateside homes with vegetable patches is predicted to increase 40% as the sales of basic salad seeds have jumped up 30%.
"People are much more focused on their homes and their immediate happiness and they're buying things that they can use themselves – seeds, fishing equipment. Lipstick and chocolate are small rewards that make you feel better."
When you think about it you don’t need the Durex sales as proof that staying in is the new going out, the majority of supermarkets are doing dine in for a £5er, £10er, etc.
It makes me quite happy to read that life still goes on during a recession – we might not have the same amount of ready money as in previous years but the money being spent is thoughtful and a lot less frivolous then the throw away times before the recession rocked up.
And I for one would be perfectly happy with good home cooked (read: open packet, sling in oven) food, a DVD and some new lippy!
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Not So Bazaar |
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Posted At: 14 May 2009 11:26 AM
Related Categories: Retailers |
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This morning, while researching a different blog about cashmere childrenswear, I stumbled across something infinitely more interesting; the recent sale campaign from M&S. And it’s a good one…
Old Magic & Sparkle have decided to rewind time with an absolute stonker of an advertising campaign; a penny bazaar-style sale, set to launch next week.
The 125th birthday celebration will run from Wednesday to Friday, and will see 2 million products (a line of 20) on sale for 1p.
Beat that Poundland.
Marks & Spencer was founded with just £5 in 1884, and by 1915 there were over 100 stores offering haberdashery, hardware, household goods, toys and stationery at a fixed price of 1 English pence.
On offer in next weeks sale are socks, ties, cufflinks, purses, sweets and leisure items like beach balls; to my mind, that covers all the original categories, don’t you think?
Not only do I love the idea of penny bazaars and secretly hope they were a more enchanting experience than going to today’s 99p Store, I also happen to think this is an absolutely stroke of genius and take my hat off to M&S for donating all proceeds to their 125 Charity Challenge fund when lets face it, they really didn’t have to.
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Get place and wealth, if possible, with grace; If not, by any means get wealth and place. |
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Posted At: 07 May 2009 15:18 PM
Related Categories: Town & Shopping Centre Management |
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Since opening last October, Westfield Groups' 43 acre London shopping centre of the same name has been surrounded by controversy. The heavily promoted Luxury Village opened half full, the décor was labelled ‘cold and artificial’ and the first shoplifter was arrested – just 3 hours after its opening. But nothing has been more prevalent in the news than the bickering between the Australian landlord and its retailers over, you guessed it, service charges.
Westfield controversially raised the charge from a ‘reasonable’ average of £8.50 a square ft to £14 shortly after opening...putting the charge on the 10,000 sq ft Sports World store, for example, at £140,000! It seems a lot to me, even for a prime location like White City, so what, exactly, does the charge cover?
According to servicechargecode.co.uk, a service charge is made up of charges for services which are “beneficial and relevant to the needs of the property, its owner, its occupiers and their customers”. Such charges could include “the provision of heating, lighting, cleaning, security, maintenance and repair works and the replacement of fabrics etc beyond economical repair”.
...eh? This is where I show my true colours as a private residential tenant and down-right ignoramus when it comes to commercial property practices; I thought that’s what you paid your rent for!? Silly me.
In response to the complaints of its many, many tenants, charges have finally been dropped, and though Westfield Group insist that it's normal practice to adjust charges after a few months of testing trading, I suspect this statement from MD of the centre, Michael Gutman, is more about making excuses than telling the truth; “We’re starting to get to the point now at Westfield [London], with six months under our belt, of understanding the trading patterns of the building and getting a much more precise view of what the service costs should be”.
Mmm...yeah, and you’re also sick of hearing retailers bitch and moan about it, and are slowly realising that your footfall figures aren’t quite as recession-proof as you’d first hoped!
Ho hum, whatever the reason for the reduction in rates, I’m sure its already struggling tenants are happy, and hoping this will help to stop them joining the raft of other retailers that have already closed in the centre - You'th, Kate Kuba, Principles and Blooming Marvellous, anyone? Fingers crossed!
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Fishy Business |
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Posted At: 22 April 2009 13:15 PM
Related Categories: General, Retail Suppliers |
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We have busy lives. Lives that are made easier by gadgets and solutions and a whole range of things that we didn’t even know we couldn’t live without before their invention.
It’s a multimillion pound industry, and there are countless mail order companies (Kleeneze, Betterware) dedicated to selling this tosh. Need a cream cracker box? Not until you mentioned it! Tired of using your hand to sweep pesky crumbs from your desk or table? Never fear, get a table sweeper! These are actually real products that you could spend your hard earned cash on. That is, of course, assuming you have some left after you’ve stocked up on your NO DRAIN TUNA.
No Drain Tuna. Seriously. What’s that all about? If there was ever a problem that just didn’t need a solution, draining the brine from the tuna can is one it. I’m surprised there’s not a tool to do it for you already, quite frankly, but that’s by the by...
Apparently a lot of research was carried out, and this is what the people wanted.
So it goes that we said “jump!” John West asked “how high?!” | | |