A Sad Day

A business presentation for traders had to be cancelled today due to lack of interest from traders and that deserves some kick back..

Australia Post were to present to traders on some of their latest innovations in their online customer engagement and parcel delivery services. These have been globally identified as two key elements for retailers looking to move with the times as consumers trend to technology and convenience when buying goods. But the presentation at QVM was cancelled due to lack of trader interest.

Food delivery services are growing in popularity, fired up particularly by Amazon's relentless march to same day delivery for all its customers. Australian and international air travellers are constantly hounded by airlines to reduce their luggage. So it is surprising that, with thousands of tourists on our doorstep everyday, very few of us offer a convenient delivery alternative to help guarantee that we get their business. And the presentation by Australia Post was cancelled this week due to lack of trader interest.

Online buying is a growing component of consumer decision making and it is no wonder why. Two weeks ago on a Wednesday I discovered that I was about to run out of printer ink needed for printing labels and leaflets for my market business. At two o'clock on that Wednesday I placed an online order with a Melbourne printing cartridge supplier through eBay. At 10 o'clock the next morning (less than 24 hours) the cartridges arrived at my post office for pickup. That is service, although if I am honest, the postage gods were unusually active that day. Yet a presentation by Australia Post to show how traders could offer online services was cancelled due to lack of trader interest.

There is a tendency for some traders to separate retailing into bricks'n'mortar and online. That is partly because they are quite different in nature and partly because online seems a little too technical to comfortably embrace. Change is hard. But our customers have no such problem. They are simply looking for a convenient way to buy goods and whether we like or not, that will sometimes mean visiting a shop, and sometimes buying online, or at least over the phone. I recently had reason to search for a watch online for a special family occasion and I was astonished at how web presence has changed. I found the usual niche online watch suppliers but they are now joined by Myer, David Jones, Thomas The Jewellers, and a whole range of mainstream retailers. Try searching online for a common shopping item and see how many traditional retailers show up.

Personal and personable service will always be our strength as market traders but it will not be enough on its own. As retailers we need to offer those extra services that help grab sales, no matter how foreign or uncomfortable they might be right now. Simple logic suggests they will become second nature, and it is all those one percenters that add up to success.

And one final point - Walmart in the US announced this week that they are thinking of asking employees to deliver customer orders on their way home as part of their war with Amazon. One commentator described the idea as "crazy". Nobody has the magic bullet to retail success. Obviously the big boys of retailing are really struggling to find answers just like us. Market Traders are not alone in this revolution but we are a little more flexible. Constantly informing ourselves and actively making smart changes will give at least some of us a good chance of success.

And one more final point (sorry). This is not just a Trader problem. QVM have to go full steam ahead on promoting our wonderful market through all the means at their disposal. They also need to ensure that smart renewal changes that will prepare our market for the future get through the various government and interest group blockades. But they are only part of the equation. Active, hungry, entrepreneurial, and informed traders are critical to QVM's success. There is no room for "lack of trader interest".

By Greg Smith

Have Your Say - click here.

New Trader Feedback Options

You will notice that we have introduced feedback options at the bottom of each article on Victraders. Similar to a Facebook "like". Readers will be able to indicate whether they like an article, find the article useful, or seek more information.
No doubt there will be times when readers might like to express more forceful and perhaps less positive responses but we decided to leave "You are joking", or "Bin it!" to the Have Your Say facility which is always open to individual comment.

Have Your Say - click here.

Australia Post Presentation Postponed

The presentation by Australia Post scheduled for Thursday 15th June at 3:30pm in the Engagement Hub has been cancelled due to insufficient trader response.
Australia Post were to talk about trader options in relation to online selling and parcel delivery.
We understand that traders will often find it difficult to commit to after-market activities in advance. If you feel there could be value in this sort of presentation please indicate with a "Like" in the box below, and perhaps the presentation can be rescheduled.

Have Your Say - click here. 

The New York Times Reports On QVM Renewal

NEWS
	Melbourne Haggles Over the Future of Its Most Popular Market New York Times The publicly owned 17-acre Queen Victoria is one of the largest markets in the world, and it sits at the edge of the Central Business District in ...

Delivery Is The Big Challenge In Retailing

Retail change is moving at such a fast pace that keeping a handle on what is important can be difficult but delivery services keep rising to the top of customer considerations and market traders are not immune to the change.

"If you don't offer a delivery option, somebody else will"

We have written many times here about how customer convenience is a prime consideration for retailers looking to capture sales. We have quickly transitioned from customers doing their own deliveries (i.e. picking up their goods during shopping trips) to retailers, both online and in store, taking on that responsibility. Purchase decisions change dramatically when the customer realises he or she doesn't have to buy right now, but can organise delivery to their homes later. The point here of course is that if your business doesn't offer a delivery service, somebody else will.

The cutting edge of delivery services involves fast and easy transactions with retailers like Amazon moving quickly to next day, same day, and two-hour city deliveries. Amazon is aiming for delivery within the hour via drone for every customer. According to the ABC, 23% of Australians are prepared to pay a premium for same day delivery. Online purchases are growing dramatically and delivery services are meeting the challenge. Who would have thought that delivering fragile cartons of wine to your door would become so common? Customers are clearly becoming used to delivery as a viable option for just about any purchase.

The big advantage that retailers used to have was immediacy – if you wanted your purchase within a reasonable time frame then you had to go to a store to pick it up. That line is now very blurred. As market traders grapple with maintaining their relevance in the fast moving retail industry, delivery services may just be a key factor. What delivery services does your market business offer?

Australia Post have positioned themselves as a key player in parcel delivery and they are visiting our market this coming Thursday at the Engagement Hub on Queen St. at 3:30pm. This is one meeting that maybe you shouldn't miss.

Have Your Say - click here.

Latest Retail News – 11/6/2017

Latest Retail News – 11/6/2017
1. Kikki.K to launch in Nordstrom stores across US.
2. Choice says Aldi is Australia’s cheapest supermarket.
3. Struggling US department store, Sears, to increase number of store closures to 180.
4. Coles intends putting bakeries in 180 more stores.
5. Amazon to offer 45% discount on its Prime membership to low income earners.
6. Australia’s economy grew at just 0.3% in March quarter.
7. Target to trim store portfolio but remains coy on actual store closures.
8. Coles and Woolworths feature in top 20 worlds most valuable brands.
9. Coke may ditch Zero brand.

What The Big Retailers Are Doing About Retail Decline

Increase Sales & Reduce Costs

A global pattern is emerging about how retailers are tackling the retail revolution and it includes many different actions some of which are taking place at QVM.

Much effort is going into engaging more closely with customers particularly through digital avenues like social media. Services to customers are being enhanced in regard to communication, delivery, payment and general convenience. There are many positive, pro-active measures being introduced as retailers look to increase sales.

At the same time there is a strong analysis of cost effectiveness and profitability as retailers examine their operations. The string of store closures, downsizing, and staff reductions are a real focus in the US as major retailers reveal that a staggering number of stores are earmarked for closure. 

Here in Australia, Target have just announced that they are carefully looking at reducing their store portfolio. They are reluctant to talk about store closures although they admit store space will decrease - “Our network over time will see net space fall, but sales and earning productivity increase as we seek to optimise the fleet.”

So while there are proactive measures to engage with customers and increase sales, there are also control measures as the reality of reduced consumer demand and more competition makes it necessary to cut costs, perhaps reduce store numbers, and introduce efficiencies. It is unlikely that QVM and its 600+ traders will be immune from that process.

Have Your say - click here.

Asian Customers Growing In Importance

A Nielsen’s Consumer Report has shown that overseas born consumers spend more than Australian born consumers. Asian born Australians are the biggest growing demographic in Australia today and their buying preferences are influencing the shape of retailing.

The report said - “For example, Asians’ food preferences are very different compared to the rest of the consumer population – they want more fresh produce, more seafood and healthier food options.” This is a view that would be supported by many fresh food traders at QVM, particularly fishmongers.

They are also likely to be well informed about their purchases and likely to research prices and product information online before purchasing. Interestingly, they are twice as likely to be influenced by their children when shopping.

In a market like QVM with such a huge variety of customers it certainly pays to be aware of cultural differences when maximising the potential of your business.

Have Your Say - click here.

Australia Post Could Open The Door To New Business For Traders

Meeting the demands of modern consumers has many aspects and organisations like Australia Post say they have tools to help traders embrace e-commerce in a simple and affordable way.

Australia Post has put a lot of work into transforming their age old service into the digital age and their links with online business including eBay and Farmhouse have created additional opportunities for many retailers.

Australia post will be attending the market on Thursday 15 June at 3:30pm at the Engagement Hub on Queen St. This will be an opportunity to ask questions relevant to your business, and perhaps open the door to new income streams.

Please RSVP to your Category Manager if you wish to attend the briefing.

Fruit & Vegetable – Matt Kendall 0437237989     

General Merch. – Peter Shepheard 0429372779

General Merch. – Russell Wheelhouse 0438033364 

Leaseholders – Christine Yim 0418395053

Have YourSay – click here.

The New Consumer Demand That Traders Cannot Ignore

Our “Latest Retail News” article over the weekend included an item “Perth coffee shop bans takeaway cups”. How the hell does a retailer consider banning such an essential ingredient for their business? The answer lies in consumer sentiment and banning plastic waste, particularly because of the impact on our oceans, has become a mainstream issue.

Over the past week, mainstream media has been full of activities promoting a ban on plastic waste. There was the Melbourne tram packed full of coffee cups that did the rounds of the city and drew significant television coverage. There have been celebrities rolling large balls of plastic waste to gain attention and calls for even plastic straws to be banned. Queensland value their connection with the ocean probably more than most states and a recent survey received 26,000 submissions with 96% supporting a ban on plastic bags.

Sustainability demands have been a feature of retailing for a few years and our own QVM launched a program for biodegradable carry bags some time ago although cracks have appeared in the program with criticism that some traders have reverted to the bad old ways of plastic carry bags that have been shown to severely pollute our environment.

Some traders have embraced the sustainability philosophy with TRC Representative Jenny Pyke recently photographed in the QVM Trader Bulletin with eco-friendly paper carry bags that will be financed in part by the $500 marketing grant available to all traders from QVM. The point here is that there are eco-friendly options for traders and paper carry bags are probably the first step for many. QVM has a deal with Shop For Shops in Collingwood where traders can purchase paper carry bags in single pack lots at the bulk “gold” price usually reserved for larger purchases. Paper carry bags are available from a variety of sources and you can expect to pay around 50c for a large carry bag (45cmH*38cmW) and around 25c for a standard bag (35cmH*24cmW)

The sustainability demand from consumers is not going away – in fact, clearly it is intensifying. Customers may not complain at the stall when you provide their purchase in a polluting plastic bag but we know it is a negative for a growing number of consumers. Now is a good time to show customers that you care and maybe at least part of the cost can be financed by a QVM marketing grant.

Have Your Say – click here.

Heard Under The Sheds – 3/6/2017

Market Responds To Terrorist Activity

The horrific experience of a terrorist attack in London overnight might have happened thousands of kilometres away but the location, a public market, brings the event to our doorstep. We understand that QVM management responded this morning by seeking local terrorism advice, increasing our own security presence, and briefing Market Officers and TRC Representatives. The official advice was – “At this stage there is no direct threat to Australia and therefore no increase to our current threat level.”

New POD Tenant

Henry has taken over the POD in C Shed and looks forward to working his way through the new display options. Henry has experience with alternative retail displays. He expressed some concern at the number of empty stalls surrounding the POD last Sunday.

Tough Times.

Business levels are a constant source of discussion between traders and this week was no exception. A split AFL round and no football in Melbourne on Friday night probably did explain the smaller crowds but complaints about poor business were widespread. We understand that two more traders left the market over the last week.

Not Enough Comments From Females

Trader input is the lifeblood of websites like Victraders and every article we publish is inspired by traders through their comments either formally or in conversation. We received one complaint this week that most of the comments on Victraders come from male traders and it was time the imbalance was addressed. We agree, and comments are most welcome from all traders, their partners, and workers.

Have Your Say – click here.

Innovation For Market Traders

You might wonder why we have a picture of spaghetti donuts heading this article but we will get to that. Flexibility is a great advantage for market traders, but how many of us are taking advantage of opportunities for innovation?

Let's make it clear up front, change is never easy no matter what size your business. When you have spent a lot of time and effort locking in businesses practices that suit your business and lifestyle, it is not easy to change. But the prospect of becoming a retail pauper is a great incentive and many of you will be thinking of how to prepare for the new breed of consumers.

Those consumers are poorer and wiser so if you are not price competitive then your task becomes a little harder. But, there are many ways of addressing innovation and here are some prime considerations -

1.   Think outside the box. Let your thoughts fly. Be a little crazy. Don't let current constraints limit your thinking. Having said all that, you don't want to think outside the wrong box. Have a clear idea of what is important and achievable for you.

2.   Stay flexible. There is no magic bullet to innovation. Be prepared to try, change if necessary, and try again. Keep your options open and go exploring.

3.   Engage your customers. Talking with your customers is a great way to determine the success of your innovations and to decide what comes next. Ultimately they will decide success or failure.

4.   Engage your team. Small business usually means small teams but even if there are only two of you, talking through ideas, and keeping options open, can be very productive.

5.   Seek advice. There are many resources that traders can draw on including small business organisations and in-house merchandising and marketing staff.

6.   Create value. Innovation needs to create value although that equation may not be as simple as it sounds. Amazon is famous for including products in its range that are provided by other suppliers. Amazon receives less mark-up but meeting customer demand pays off across all the products they offer. You may be able to create liaisons with other market traders.

7.   Save the magic. We may be in a new era where consumers (and our competitors) have unparalleled access to information, but at least in part, we are in the entertainment industry, and a dose of mystery and surprise can enhance the experience.

Areas that traders might consider for innovation-

Presentation - the way you show off your goods is virtually a blank page ready for exciting ideas.

Delivery Services - convenience is a key consumer demand and the delivery industry, including Australia Post is providing plenty of options for you and your customers.

Other Outlets - QVM us a great place to trade but maybe there are others including pop-ups.

Product Range - the world is an oyster to customers but also to traders. Air freighting from other parts of the globe is an option for a growing number of traders.

Online - a web presence is an obvious option for every trader and you don't need a fully fledged and time consuming website to reap rewards from an online presence.

And why do we have a picture of doughnuts made out of spaghetti at the start of this article? Are they  donettis or spaghnuts? Donuts have long been the source of innovation with Cronuts (a combination of croissant and donut) being a recent successful innovation at QVM. The point is that innovation can take many forms and even the smallest business has the opportunity to try, experiment, and change the world.

More Reading: Here is an interesting article if you are looking for a more detailed examination of innovation in retailing and it includes some great examples. http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-simple-rules-of-disciplined-innovation

Have Your Say - click here.

Retail News Briefs – 3/6/2017

Retail Jobs To Go.

NBC News is reporting that the death of retail could result in mass graves as retail workers in their thousands are replaced by robots with cashiers being the first to go. With the closure of many stores in the US (Sears are up to 200 store closures) and the rationalising of other operations, robots could replace up to 7.5m jobs over the next 10 years.

Topshop Joins List Of Struggling Retailers.

A comparative newcomer to the Australian retail scene has called in the administrators as the Australian arm of Topshop struggles in a competitive fashion market. Topshop/Topman has 760 employees and annual sales of around $90m. They operate 9 stores and 17 Myer concessions. The UK Topshop entity has indicated it will assist to keep the brand operating in Australia.

Amazon Opens First Brick’N’Mortar store in New York.

The store — which sells mostly books and some electronics, like the Amazon Echo — doesn’t have traditional price tags, and it only stocks books that have earned an average rating of 4.5 stars or above online.

Pop-ups Become More Mainstream In US

A report from the US says that growing retail vacancies mean that more landlords are prepared to negotiate short term “pop-up” leasing arrangements with many real estate companies now actively listing “pop-up” opportunities.

CBD Vacancies Rise

Knights Frank have reported that Melbourne CBD shop  vacancies are on the rise while shopping centre vacancies have actually fallen as landlords offer incentives to tenants.  Apparently the overall CBD retail vacancy rose from 2.45% in June 2016 to 2.7% in 2017. Vacancies in arcades have risen to 4.75% the highest in 10 years.

April Retail Sales Good For Food But Not Much Else.

April retail sales were up 3.08% on last year in seasonally adjusted terms with food retailing up 4.29%, liquor 7.31%, takeaway food 6.16%, and cafes & restaurants up 4.19%. However discretionary spending categories like household goods, hardware, and electrical goods continue to struggle.

Have Your Say - click here.

Latest Retail News – 3/6/2017

Latest Retail News – 3/6/2017
1. Online shoe retailer, Styletread, hits $100m revenue milestone.
2. Alibaba says revenue up but profit down.
3. Herringbone and Rhodes & Beckett sell off stock with hope of creating clean slate for potential buyers.
4. New giant aircraft introduced by Qantas to help boost Australia Post delivery facilities.
5. Marks & Spencer reports big profit drop as it spends on turnaround.
6. Ansell sells its condom business to China for $800m.
7. Gatwick Airport installs 2,000 beacons to assist with way-finding.
8. Retail Apparel Group (Tarocash, yd., Rockwear) sold to South African retailer.
9. Retailers on ASX experience share price plunge following Topshop failure.
10. LVMH cosmetics store, Sephora, will open its 5th NSW store at Macarthur Square in June.
11. Godfrey’s says declining sales will hit profit.
12. New fashion players like Boohoo and Asos are able to bring designs to sale in one or two weeks.
13. Booktopia named national Bookseller of the Year again.
14. Pacific Werribee Shopping Centre to open new fresh food centre as it completes $400m refurbishment.
15. Michael Kors to close over 100 stores as it moves to improve profitability.
16. Perth coffee shop bans takeaway cups.

Articles We Came Across This Week

Hundreds of links and articles come across our desk each week and many are included in some way on Victraders but some worthy ones miss out for various reasons. Here are some interesting articles that we can recommend for more reading -

An analysis of fast paced retail disruption - https://www.washingtonpost.com/news/innovations/wp/2017/05/15/the-gradual-then-sudden-disruption-of-retail/?utm_term=.b853e32a8ee1

The Commonwealth Banks latest report on retailing - https://www.commbank.com.au/content/dam/commbank/business/pds/retail-insights-report-edition-4.pdf

The ABC reports on time poor Australian consumers - http://www.abc.net.au/news/2017-05-24/aussie-retailers-need-to-adapt-to-a-world-built-on-speed/8554644

SmartCompany looks at the Topshop failure - http://www.smartcompany.com.au/industries/retail/topshop-australia-topples-voluntary-administration/

An article by Dennis Price suggest the shopping mall is not dying - https://www.insideretail.com.au/blog/2017/05/30/death-of-the-mall/

Have Your Say - click here.

QVM In The News 3/6/2017

NEWS
	Police presence increased in Melbourne after London terror attack Herald Sun Premier Daniel Andrews said police presence will be increased around Federation Square and Queen Victoria market after the attacks that left at least ...

NEWS
	Behind the 1960s Victoria Market Calabrian mafia wars Herald Sun BY the early 1960s Calabrian migrants had a stranglehold on business going through Melbourne's Queen Victoria Market. With an annual turnover of ...

NEWS
	Plenty not happening with the market CDB News (registration) The “phoney war” over the Queen Victoria Market redevelopment continues with proponents and opponents trading blows but Planning Minister ...

WEB
	“Best market in the world ” Review of Queen Victoria Market TripAdvisor Queen Victoria Market: Best market in the world - See 5126 traveler reviews, 2343 candid photos, and great deals for Melbourne, Australia, ...

NEWS
	WINTER NIGHT MARKET The Weekly Review The Queen Victoria Market will be revealing an exciting new lighting concept in 2017 themed 'Fire and Lights', with raging open fires, quirky ...

Simplifying The Retail Dilemma

According to an article in the Sydney Morning Herald, foot traffic to Shops has fallen 4.4% since 2016. This is just one of the many statistics that retailers are now amassing as they attempt to understand and address retail sales decline.

Analysing masses of data is fine, we need to understand what ails us, but sometimes it pays to simplify, and here are what many commentators believe are the core issues.

1.   Consumers Have Less To Spend - Rising household costs combined with stagnant wage growth means that consumers are more considered about their purchases. They simply have less to spend on discretionary goods. The spending pie is smaller.

2.   Consumers Have More Choice - Consumers don't have to go shopping at physical stores, including market's, because they can purchase online, and that activity is still growing strongly. Even if they choose to tread the pavements, it is often after they have narrowed their options, particularly on price, by browsing online. The competition is larger.

3.   Standing Out - If retailers are not price competitive, do not have timely ranges (particularly in fashion), and have little else to make them stand out, they will struggle. You need to stand out.

4.   The Shopping Experience - much is made of creating a shopping experience for consumers but isn't that just stating the obvious. Consumers with less money, more options, and the ability to price shop in advance, are going to choose the most attractive place to shop. It might be the destination that is most convenient, or has the best food (the food offer is very important these days), or that entertains in other ways. You need to be the best.

So let's get this straight- consumers have less money, are better informed on price, and are only going to seek out the best places to spend their money. That can't be too hard to address can it?

Have Your Say - click here.

QVM Heritage Video On Facebook

Video about the importance of QVM heritage.

As the heritage of the Queen Victoria market comes into the spotlight, all those associated with the market are invited to comment on what the Queen Vic means to them.

Click on the photo above to go to the market's facebook page and check out the comments by Scott Pickett, Karl Boening and Leah Moore. You might like to leave your own comments on the page.

Have your Say - click here.

COMMENTS:

04/06/2017 18:17:24      Qvm heritage video           "Given the wealth of traders we have decades upon decades of experience at QVM why is Scott featured in a video on this topic? I find it both odd and a little insulting.

Either way would like to say congratulations to Karl and Leah for speaking on a topic so important to traders"

Everyone is entitled to an opinion Anonymous but finding a negative about someone applauding the heritage of our market is also a little odd. Karl, Scott and Leah did a great job. Thanks for your input. - Ed.

                                                   

More On Trading Hours

Our article on the possibility of changing trading hours at QVM has attracted this response from trader, and ex QVMAC member, Stephen McLennan.

"The question of changing the Markets operating times has been talked about for a fair while now however the main reason for doing so is to be more in tune with customer needs.

So why the suggestion of a 4pm finish? To benefit who?

Which customer demographic are we aiming for?

If we are pitching to the Tourism Market then they may benefit from just 2hrs extra or a slightly later finish shopping time.

However, if we are trying to break our tourist market tag and increase our local customer base many of whom are still working until 5-pm, then 4-pm, will still fall short of the prime objective.Shops  in the C BD are open until 7-pm so a 5 or 6-pm finish may be more suitable for a wider customer base???

Changing hours will no doubt involve inconvenience for some traders and perhaps increased costs for traders and management, but reversing retail decline is going to require some sacrifices.

 "One in all in"

Major components in making this transformation work are:

1.           We need to make the change meaningful. There is little sense in playing around with minimal trading extensions or short term trials.

2.            All traders need to be supportive and embrace this change. We will need a firm commitment to new hours and a resolve to make it work. Results may not be immediately obvious.

3.            For Management to enforce the changes and ensure traders stay open and not close early as has happened so often on special market events in the past (one in all in ).

4.           A major information program would be needed to inform the public of the change in trading hours.

Friday trading used to be until 4-pm but with so many traders packing/leaving early Management decided some 3 years ago to reduce the hours to a 3-pm closing so we can't afford to get the trading hours wrong.

At the risk of suggesting yet another sub-committee, a range of options could be drawn up for traders opinion/feedback.

Any possible changes to our operating hours will take a little getting used to for traders and customers alike so any benefits may be hard to quantify short term.However for some traders what we are offering at present just isn’t  working.

The fresh food areas of the Market may have a different view as to what works best for them which is why I am suggesting a sub-committee /think tank on this important issue to form a better outcome for all."

Stephen McLennan.

Have Your Say - click here.