Local retailers must try to fight off the credit crunch with some eye-catching deals for consumers, argues chief executive at the SPA Way Sara Pearson
Wow! What a ride we are on. It is the choppiest market conditions imaginable and I don’t think anyone can really predict what’s going to happen. The only certainty is that none of us will come out the way we went in.
I’m no economist, but back in the hazy days of August there were many saying it would all be sorted by Christmas and took my assessment that we were in for at least 18 months as fanciful pessimism. I hate the expression ‘I told you so’ – but, I told you so.
This crisis will be defining for most of us and as in all cycles of evolution it will be the survival of fittest. The only hope is to resolve to be the fittest and to do that means being the leanest and best able to adapt to changing circumstances. The deadwood will go and it will inevitably bring down some of the good wood as it falls but green shoots of new growth will quickly emerge. It will certainly bring about a changed landscape and not necessarily a worse one.
I think it is really interesting to see changes already starting to happen. I notice that my local gym has suddenly sprouted A-boards offering 3 months free membership, I swear restaurants now seem much more pleased to see me and the girl behind the counter in Boots tells me that the free offers they distribute like confetti are being redeemed at a rate many times more than usual.
This is good, this attention to value will make us much more appreciative and judgmental which, in turn, will mean better commercial propositions. The supermarkets are feeling change whistling down their aisles and the good ones will harness this opportunity.
But what of the local shops, how will they cope with the increased competition between the big multiples. Suddenly, the convenience of buying the dog food locally will lose its appeal if the price differential is too great.
If ever there was time for the 7-11′s to join the game, it is now. Of course, they can never properly compete but they urgently need to find ways to draw people over the threshold. It is not going to be on the basis of 100′s of special deals, but one or two tailored to the locality – now you’re talking.
However, the only way this is going to happen is if the cash and carry trade starts to negotiate the sort of deals with manufacturers the multiples achieve.
Rather than be the turn up, stock up and hurry off merchants they are routinely, they should be nurturing their trade by stimulating promotions that the independent retailer is unlikely to dream up/have access to in isolation. Half a dozen eye-catching deals each week, even if they are loss leaders, would do a great deal to perk up business.
The only way the economic downturn can be really deadly is if it kills off too much of the competition. The world is a far better place with plenty of choice.
