why do-certain-places-get-all-the-nice-shops-part-01
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“why do certain places
get all the nice shops?”
part 1 – nice people & nice shops
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
1. footfall is all
2. what is a nice shop?
3. why do certain places get all the nice people?
why do certain places get all the nice shops?
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
why do certain placesget all the nice shops?
not sentimentality!
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
why do certain placesget all the nice shops?
profit potential!
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
store salesstore costs
realising profit potential…
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
commercial rate levels
rate relief and rate “amnesties”
flexible rent negotiations
rent linked to turnover performance
relief on service/utility charges
relaxation of regulations & red tape
minimising logistical costs
retail venues must help minimise store costs
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
the importance of sales growth in 2012
Retail week: Kurt Salmon
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
1. the captive population
retail is convenient
2. the transient consumer
retail is attractive
store sales are driven by footfall
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
historically population was key
high street/town centres sprang from the local
population
“local shops for local people”
convenience was local
competition was local
local competition was healthy
losers were individual shops
the captive population
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
captivity replaced by freedom
freedom to travelfreedom to enjoyfreedom to indulgefreedom to choosefreedom to shop
competition is between retail destinationsthe losers are retail destinations
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
% of consumer spendingthe battle for footfall
50%
40%
30%
2000 2010
town centres
out-of-townshopping centres/retail parks
28.1%31.5%
49.4%
42.5%
BRC
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
year-on-year changein high street footfallin aug-oct 2011BRC footfall monitor
year-on-year changein total footfallin aug-oct 2011BRC footfall monitor
the battle for “less footfall”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
why do certain placesget all the nice shops?why do certain placesget all the nice people?
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
what do all the nicepeople want?
2 “what is a nice shop?”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – tesco
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – colin moore – traditional butcher
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – IKEA
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – Bob’s DIY
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – M&S
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – Forever 21
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – Louis Vuitton
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – €uroshop
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – World of Sewing
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“what is a nice shop? – The Friendly Fisherman
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
what is a nice shop?
a profitable shop!
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
buying & merchandising
in-season management
visual merchandising
sales promotion
customer service
“ nice shops” – best practice retail functions
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
a clear customer target
a distinctive brand identity
an appealing product assortment
appropriate store environment
appropriate customer service
attractive display & presentation
attractive promotions & events
represent good value
“ nice shops” – focused customer appeal
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
and successful retaildestinations must havea critical mass of
“nice profitable shops”
3 “why do certain placesget all the nice people?”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
1. they make life easy for people
2. they target different customer groups
3. they offer each an attractive retail mix
“why do certain placesget all the nice people?”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
1. they makelife easy for customers“nice peopledon’t want nasty things
“why do certain placesget all the nice people?”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
poor access & traffic congestion
unreliable public transport
insufficient parking
unfair parking charges
aggressive parking enforcement
lack of safety & security
anti-social behaviour
inconvenient opening hours
“what all the nice people don’t want?”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
“50% of our members say that alack of affordable town centreparking has a detrimental effecton their business”Federation of Small Businesses
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
2. they targetdifferent customer groups“because ‘nice shops’ aren’tthe same for everyone”
“why do certain placesget all the nice people?”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
2. targeting different customer groups
Traditional Contemporary Trendy
focusing on astate ofmind……not a stateof body.
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
3. they offeran attractive retail mix“each group of nice peoplewant their own nice shops”
“why do certain placesget all the nice people?”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
Dept. store
Mixed fashion
Women fashion
Footwear
Accessories
Beauty
Home
Gift
Confectionary
CTN
Mass merchandise
Home/DIY
Electrical/tech
DIY
Grocery
Traditional Contemporary Trendy
Café/restaurant/bar
Hair/beauty
Opticians/services
a) appropriate product categories
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
number of restaurants,cafés and fast foodoutlets opened in UK infirst 6 months of 2011
number of hairdressersand beauty salonsopened in UK in first 6months of 2011
a) appropriate product categories
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
• The 2 most importantcategories with
around 35% ofoutlets are…
• home andclothing(mixed/women's)
• A strong food offerparticularly during theday is used tosupport the retailoffer
• Beauty offer supportsthe fashion offer
home22%
cafes/ fast food17%
womensfashion
12%
beauty/ hairsalons10%
mixed clothing6%
gifts/speciality/niche
7%
jewellers6%
restaurants(evening)
5%
art/ frames/galleries
5%
technology/electrical
5%
banks/ buildingsocs/ ins.
5%
a) appropriate product categories
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
• 58% of the topcategories arenot core retail
• Services account for25% of the topcategories
• Core retail needs tobe increased inparticularly clothingand mixed clothingwith a men's/women's offer
cafes/ fast food17%
restaurants(evening)
16%
banks/ buildingsocs/ ins.
13%
beauty/ hairsalons12%
home11%
womensfashion
8%
CTN6%
gifts/speciality/niche
7%
pubs5%
jewellers5%
a) appropriate product categories
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
b) appropriate retailer type
Destinationleader
Multiplespecialist
Localdestination
Smallindependent
M&S
River Island
Nolan's
HomesIn Heaven
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
Destinationleader
Multiplespecialist
Localdestination
Smallindependent
Traditional Contemporary Trendy
b) appropriate retailer type
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
Negativesaccess & congestionTravel expenseTime & effortinsufficient parkingparking chargesanti-social behaviourinconvenient times
PositivesCustomer focusRetail categoriesRetailer typesRetail qualityCritical mass
Competing local town centres
DestinationAppeal
“why do certain placesget all the nice people?”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
Regional town centre
Negativesaccess & congestionTravel expenseTime & effortinsufficient parkingparking chargesanti-social behaviourinconvenient times
PositivesCustomer focusRetail categoriesRetailer typesRetail qualityCritical mass
DestinationAppeal
Local town centre
“why do certain placesget all the nice people?”
“why do certain places get all the nice shops?”
from VM-unleashed! Ltd
Out-town-shopping centre
Negativesaccess & congestionTravel expenseTime & effortinsufficient parkingparking chargesanti-social behaviourinconvenient times
PositivesCustomer focusRetail categoriesRetailer typesRetail qualityCritical mass
DestinationAppeal
Local town centre
“why do certain placesget all the nice people?”
thank you for listening
and good luck11 Moat Farm
Royal Tunbridge Wells
Kent
TN2 5XG
t: +44 7967 609849
www.vm-unleashed.com
facebook.com/vm-unleashed.ltd
tim.radley@vm-unleashed.com
VM-unleashed is a retail specialist consultancy working with
companies throughout Europe.
Tim Radley is the founder and Managing Director and has
been working with best practice European retailers for over 20
years including:-.
All Saints, Camper, Boots, Carrefour, Otto Versand,
Gruppo Coin, Vestebene, Adidas, Sonae, Alessi, Aena,
Marks & Spencer, KappAhl, Imaginarium, Porcelanosa,
Clarks, Aldeasa, Pepe Jeans, Trucco, Sony, Orange…
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