Australian Retailers Copy US Juggernaut

In US retailing the pinnacle of the trading year occurs around Thanksgiving (the 4^th Thursday in November). The day after Thanksgiving is called Black Friday, the big day for bricks’n’mortar stores (think Boxing Day), and the following Monday is Cyber Monday, the big day for online sales. Combined, they produce $ billions worth of sales and Australian retailers are about to attempt their version of Cyber Monday.

Myer, Target and The Iconic are just a few of the Australian retailers about to embark on Click Frenzy, a day set aside for retailers to promote online-only deals. The big sale starts at 7pm on Tuesday 20^th November and goes for 24 hours. Major retailers like Myer, Westfield, Toys’R’Us, Dan Murphy’s, Dick Smith and Target will join over 100 retailers in the promotion.

Click Frenzy will be an interesting test not just of Australian consumers appetite for online sales, but how well Australian retailers have embraced this new way of doing business. http://www.clickfrenzy.com.au

Don’t Expect Sympathy From Customers

The woes of retail are receiving much publicity as retailers, commentators, and politicians acknowledge that these are tough times for our industry. High profile retailers like Borders, Colorado and Darrell Lea have fallen by the wayside, but do consumers really care?

Sure, nobody likes to see job losses but consumers are in their strongest position for years as they become choosey about what they buy and who they buy from. They now have access to worldwide suppliers many of whom are falling over themselves to provide the prices and convenience that consumers could only dream of a few years ago. Consumers have become independant, almost cavalier and, if the media comments columns are any guide, they don’t have much sympathy for retailers.

How do we survive? By offering price, choice, convenience and service.

1.     Price – at times it seems that price is the only customer consideration but usually they just want to be sure they are not getting ripped off. Yes, there are some customers who just play the price game. But if you are in the ballpark on price, and you get the other things right, you can expect the sale. Be aware of what your market competitors, outside retailers, and online competition are offering.

2.     Choice – the better you are at meeting your customers needs the more likely it is that you will get the sale. Be prepared to go out of your way to get what they are seeking.

3.     Convenience – do you offer delivery? Will you take orders over the phone? Do you offer a packing service? Can they pay cash or card?

4.     Service – Will you go out of your way for your customer? For instance carry their purchase to the car, or hold their purchase at your stall until they finish shopping.

Finally, add a dash of personal care and we may all just prosper.

Have Your Say - click here

COMMENTS:

Ed: "Just read a story about a US bookstore that finds their customer’s book even if it means facilitating a purchase from a rivals bookstore. Their customers keep coming back."

Is Your Stall Stuck In The 90’s?

Does this sound like you?

 I put up signs that say “No photographs please”.

(“Because sharing photos with your friends is not something I do.”)

 I spend most of my time behind the counter.

(“Because that’s where the chair is.”)

I don’t have EFTPOS.

(“The ATM is only a short walk away and the queues aren’t that long.”)

I don’t have a website.

(“My customers don’t seem to be technos.”)

I don’t enter in QVM online marketing programs.

(“I’ve done without it so far.”)

I don’t need to track my best selling products

(“My gut feeling has got me by in the past.”)

I don’t listen to all these fancy consultants

(“I know more about my business than they do.”)

Any more? - Have Your Say - click here

Victory For SL Traders

Over the last 12 months, General Merchandise Traders Representatives have established a case for no rent increases at this year’s November rent review. We are pleased to see that QVM management have accepted that case at least in respect of SL Traders.

In letters to traders this week, management advised that no November increase would be applied to SL Traders this year. However, PE traders and Casuals will be subject to a 2% rent increase taking effect from 4^th December 2012.

Whilst we are pleased that SL Traders will not be subject to a rent impost, it is regrettable that the same standard could not be extended to all traders. Current retail trading conditions have resulted in some high profile rent reductions as landlords grapple with maintaining supportive customer levels for their tenants. General Merchandise Traders will continue to argue that no rent increase should be applied until the true measure of QVM performance, (trader’s incomes) shows significant improvement.

Have Your Say - click here

COMMENTS:

14/11/2012 14:05 “Well done Trader Reps! Unfortunately it appears QVM Management are true to form and can only get jobs half done at best, in that in their inscrutable (or is that their “screw you”) “wisdom” whilst with one hand they caress SL Licence holders by withholding their rent increase for the year, with the other hand they have slapped the faces of PE Licence holders with an increase, oh and give the SL Casuals a kick in the shins as well, yep they have to pay up too(?).”
14/11/2012 14:09:37 Rent increases "Hey SL Licence holders hope you’re getting the message, PE Licence Traders must be raking in the money and totally immune from the Retails woes affecting SL Licence holders, so get with the strength, abandon those "voluntary"  licences come over to the dark side!" You know Hugh                 
14/11/2012 14:10:33 Rent Increase "Why only some Traders  ( as usual )  when will they get it right As in rules It should apply to all or not all . And  People who have signed lease  agreements have signed up for terms and conditions such as a  rent increase or is it because  "The" other traders not suffering as much?" J. Renwood                   

Rent Increase For PE Traders

QVM have sent letters to traders advising that a November rent increase in line with the Consumer Price Index will be applied to PE Traders. The increase will not apply to SL licence holders.

The increase is 2% which represents an increase of $6 per week (before GST) to a trader operating a standard double stall for 5 days, and will take effect from 4^th December 2012.

 

Your Market, Your Say - click here

COMMENTS:
15/11/2012 22:05:57 Rent rise accountability? "Well,no surprises with the rent rise!! I would have been more surprised if the people that decided on this, would have thought we are being punished enough so kick us while we're down!! Councillor CEO should have put a stop to this. ALL the times the stallholders sat and spoke to Mr Guerra and assoc. was an absolute waste of OUR time.They heard nothing of the stress of the stallholders,shame,shame,shame on you Ms.Councillor!!! In my humble opinion the buck starts and stops with you." rosalie rockman    
 14/11/2012 14:09:37 Rent increases "Hey SL Licence holders hope you’re getting the message, PE Licence Traders must be raking in the money and totally immune from the Retails woes affecting SL Licence holders, so get with the strength, abandon those "voluntary"  licences come over to the dark side!" You know Hugh     
14/11/2012 14:10:33 Rent Increase "Why only some Traders  ( as usual )  when will they get it right As in rules It should apply to all or not all . And  People who have signed lease  agreements have signed up for terms and conditions such as a  rent increase or is it because  "The" other traders not suffering as much?" J. Renwood                                         

Latest Retail News – 9/11/2012

Latest Retail News – 9/11/2012

 

1. Small rise in September retail sales driven by food.
2. RFG Group (Donut King, Brumby’s) buys NZ based, The Coffee Guy Group.
3. Boost Juice reaches 200 stores across Australia.
4. Commonwealth Bank Award Points introduced in Myer stores.
5. Noni B expect another difficult year as they wait for consumer confidence to improve.
6. Reserve Bank leaves interest rate unchanged.
7. Luggage category expected to show steady growth as tourism remains strong.
8. David Jones reports web revenue triples but department store sales worst in years.
9. Harvey Norman report 20% drop in profit.
10. Unemployment remains steady at 5.4%; exceeds expectations.
11. Six storey shopping mall collapses in Ghana.
12. McDonalds says global sales for established restaurants fell for the first time in ten years.

Should Smoking Be Banned At QVM?

Found a recent customer review about QVM on the Trip Adviser website –

“Its about time they got into 20th century. Why is smoking allowed within this venue..I saw stall holders smoking as well as visitors. Unbelievable in this age? never again.”

Anecdotally, traders have complained about neighbour's smoke drifting into their stall, and particular reference has been made to smoking around the meat hall and deli hall entrances/exits often by traders and their staff. The movement against public smoking moves on steadily as more and more locations activate bans. Is it time for QVM?

Just asking.

Have your say - click here

COMMENTS:
09/11/2012 17:46:58 smoking "yes , it should be stopped....
it looks terrible watching the butchers, and fishmongers, sitting or standing by the doors smoking, and then going back to handle the food." andy 
 09/11/2012 18:26:37  "I am a smoker and think its about time that it was banned." tony                              

Topend Market Tour Offered On Scoopon

QVM has offered its Insider Shopping Tour (the tour of General Merchandise) on the high profile Scoopon website. The tour is offered at a special price of $15 (normally $32). The Scoopon web page features a slide show of general merchandise scenes and includes the following wording –

 “Navigate Through One of Melbourne’s Most Iconic Destinations as You Lap Up this Unique 2.5 Hour Shopping Experience! Discover Where to Find the Best Bargains - From Vintage Fashion to Leather Goods, Retro Homeware, Souvenirs & More! Make Your Way Around the Many Historic Sheds & Enjoy Inside Tips, Discount Offers from Traders & a Piping Hot Specialty Coffee to Boot!”

New Fashion Retailing Trade Event in Melbourne

A new retail trade fashion event is to be held at the Melbourne Convention & Exhibition Centre on 24^th and 25^th February 2013.

Described as a national buying event for the Australian Apparel & Textiles Industry, it is open to all independent retailers and will feature 180 exhibitors of brands and labels plus a series of seminars by ARA.

Traders who feel restricted by their normal sources of supply, or, who just want to check out the competition, may be interested in attending.

Further details here - http://www.faabe.com.au./

It's Just Not Retailing

As the move to online retailing ramps up, many retailers (especially QVM Traders) are saying - "This is not what I signed up for!"

Basically, instead of store-front, you become back room.

Operating your business online, particularly if you have a website, requires a whole new set of skills. Instead of facing your customer, you are sitting in front of a computer. Instead of guiding customers to the hot new product on your shelves, you are taking photos. And those photographs need to show a degree of photographic finesse to compete with the big boys. You need to constantly update your site because successful sites get frequent visits from their regulars. And you have to be on the ball with stock control. Nothing upsets a customer more than wanting a product on your website but being told "Sorry - it is out of stock".

The speed of this transition is really quite scary. Who would have thought, even 5 years ago, that a significant number of traders would have a website and an even greater number would be offered regular exposure on Facebook, Foursquare, and other social networking outlets. Who would have thought that over 50% of mobiles in Australia would be smart phones capable of doing basic things like - "Find the nearest T-shirt shop". Who would have thought that so many customers would be asking "Do you have a website?"

It may not be what we signed up for but online retailing is a reality and, like anything else we tackle in business, needs to be done well.

Tourist Watch – 9/11/2012

Tourist Watch – 9/11/2012
1.       A League - Melbourne Heart versus Brisbane Roar at AAMI Park Friday evening.
2.       NBL – Melbourne Tigers versus Adelaide 36ers Friday evening at Hisense Arena.
3.       Melbourne Tattoo & Body Art Expo – Convention Centre Southbank – Friday 9^th to Sunday 11^th November.
4.       Cruise ship, “Voyager of the Seas” berths at Station Pier on Sunday 11^th November, just for the day.
5.       The Spring Racing Carnival continues with Emirates Stakes Day at Flemington on Saturday.
6.       Equitana Melbourne is expected to attract 50,000 visitors to Melbourne Showgrounds for everything horse related, commencing Thursday 15^th November.
7.       Australasian Worldwide Music Expo attracts musicians and fans from around Australia and across the world commencing 15^th November at the St. Kilda Rd. Arts Centre.
8.       Conferences:
     a.       World Public Relations Forum – 18^th November
     b.      General Practitioner Conference & Expo – 16^th November

Latest Retail News – 3/11/2012

Latest  Retail News – 3/11/2012

1.       Melbourne city retailers push for re-opening of Flagstaff Station on weekends.
2.       Healthcare takes over from Retail as Australia’s biggest employment sector.
3.       Transport & Logistics firm, Toll, looks to take on Australia Post in parcel delivery.
4.       Retail Adventures (Go-Lo etc.) placed in administration.
5.       Westfield Group wins bid to build and operate major shopping centre in Northern England.
6.       Customers consider Aldi the cheapest supermarket according to Roy Morgan Research.
7.       Fashion brand, Paul Frank, to launch through Big W stores.
8.       Country Road comparable sales up 13.5% for first 4 months of 2013 financial year.
9.       Furniture retailer, Funtastic, reports 8% profit growth for 2011/12.
10.   Finnish retailer and designer, Marimekko, opens first Australian store in Sydney.
11.   Starbucks turnover improves on same store sales.
12.   US consumer confidence hits 5 year high.
13.   Melbourne’s Docklands continues to struggle as 15 restaurants close over last 10 months.

Some Lord Mayoral Quotes This Week - 3/11/2012

Some Lord Mayoral Quotes This Week
1. Councillor Doyle said he would consider borrowing funds for a staged refurbishment of the QVM that could cost more than $100 million. "I just don't like to see one of the city's most precious assets running down," he said.
2. "If we don't make a start now, in 10 years we may not have a Queen Victoria Market." Under a potential Doyle plan, the 134-year-old market would be turned into a Federation Square-style precinct with a park and plaza opened on the current carpark site.
It would be equipped to stage festivals and other events, while the market trading areas would be upgraded with improvements such as major refrigeration storage and hot and cold water access. Cr Doyle said that the heritage sheds would be renovated, with all the works planned in consultation with traders and the wider community.Cr Doyle said an underground carpark could be built under the sheds but not under the existing carpark, which is the site of an early Melbourne cemetery.
3. Cr Doyle would not be drawn on a funding model for his new "number one priority" of the Queen Victoria Market. He was asked why he did not mention the $100 million Queen Victoria Market redevelopment plan as part of his election campaign. "Let me be very blunt with you here, the previous council did a good deal of work on the Queen Victoria Market and we have a series of meetings with the traders," Cr Doyle said. "I didn't think it was appropriate, given that the work really belonged to the previous council, not to me personally. To trot that out as an election or campaign promise, I didn't think it would be held in good faith with the other councillors in the previous council who have made a contribution to it." he said.
4. LORD Mayor Robert Doyle has conceded his planned $100 million refurbishment of Queen Victoria Market is not a "fait accompli", in an otherwise harmonious start for the newly elected Melbourne City Council.

Why Australia Is So Affected By Online

Australian retailers have been bleating long and hard about the impact of online buying. It would appear that the impact is quite severe and there is one good reason – we are no longer an island.

Australia’s physical isolation has insulated Australian retailers for many years. We have pretty much had a captive market with importers and retailers calling the shots. Why not charge a little more for goods? Why bother too much with innovation? Australia’s climate and therefore its fashion trends don’t really line up with the rest of the world so there is no real incentive to keep up.

Well, all that has changed. Australian consumers have access to the latest and greatest. Global parcel deliveries mean isolation is less of a factor. International retailers have moved to short run collections and know how to excite their customers with constant change. It is called competition, and has been around since Eve beat Adam to the apple.

There are signs that new innovative retailers can prosper. Smaller retailers and manufacturers have the flexibility to tune into customer demand and invariably are dealing face to face with the customer. That advantage certainly applies at places like QVM and we should be making the most of it.

Online GST Fight Has Retail Opponents

Some key executives are telling the retail industry to drop its campaign for GST to be charged on online purchases under $1000.
Billabong CEO, Launa Inman, told a recent conference that the tax on online purchases is just “not going to happen”. “We have to learn to adapt. It is a global world now and our challenge is just to get out there and actually make it happen.” Woolworths super market head, Tjeerd Jegen, said that “retailers shouldn’t ask for increases in taxes for customers”.
However, ARA executive director, Russell Zimmerman, says the fight is still worth fighting. He pointed out that the parcel system first needs an overhaul to handle the surge in international parcels, and then the GST issue can be tackled.

Will We Be Winners? – The Final Word

Our STOP PRESS post on the Lord Mayor’s re-election gained many comments. Here is a comment from one of our TAC trader representatives that we wanted to post in full.

“Oh and one more thing, the unfortunate fact is that Traders over the years have often been treated with varying levels of disrespect and disdain, granted some of that we have brought upon ourselves. Nevertheless, we are not all prone to paranoia and conspiracy theories and we are also not totally devoid of intelligence and awareness. We are however generally mistrustful, due largely to the cold hard facts linked to our personal experience with the Market, its management, and what appears to us as general disinterest and apathy towards Trader’s issues at the Market.

So whilst it is true that there has been a level of engagement of late, and indications are that the engagement may well continue and intensify, the truth is you cannot undo years worth of inaction and disinterest overnight. In Trader’s minds it is yet to be established whether this new approach is a result of a true sincere interest in Trader welfare or political opportunism. Especially since the invitation in April to meet with the Lord Mayor was seemingly due to a letter sent to the Lord Mayor by a Trader and hence a Trader led initiative.

The question is further complicated if you look at timelines on the public record at the council website. You can't help noting that consultation on QVM objectives was supposed to have been completed by June 2012, but has been delayed due to a "project awaiting confirmation with State Government", ( a project we know practically nothing about, have had no real input in developing, and possibly were to have it thrust upon us as a done deal ). The suggestion there is that the intention to re-develop had been made well beforehand, yet if it wasn't for a Trader led initiative, who knows when Trader engagement at any level would have begun.

One would hope that that approach, that management "style",  has been cast aside and there will be some real engagement with Traders (or their representatives) because that is the only road that can build trust and confidence and not further erode an already fragile fledgling relationship between the parties involved.

So here's the challenge to the Lord Mayor and Council, to the Board and to QVM management - stop withholding information and excluding Traders from the process, and start including Traders in meaningful open discussions about what has been developed so far without us. Come clean, tell us, no show us, the "project", because if it is simply thrust upon us hoping for our support with little or no real input from Traders it is much less likely to be embraced and endorsed by Traders.

Whilst many roads have led to the general distrustful attitude that Traders often display, there is only one real road that can lead us to a new age of trust, confidence, mutual respect and collaboration and that is trust, confidence, mutual respect and collaboration."

Tourist Watch – 2/11/2012

Tourist Watch – 2/11/2012

1.       The Spring Racing Carnival reaches its peak this week with Tuesday’s running of The Melbourne Cup. This event is a big magnet for interstate and international tourists.

2.       Soccer - Melbourne Victory play Wellington Phoenix in Melbourne on Monday night.

3.       Cricket – The season starts to hit pace in Melbourne this week with Shield and one-day matches.

4.    Cruise ship season starts this weekend with 4 ships visiting Melbourne from Sunday. (Thanks for the heads-up Drita)

Trader Fined For Contaminated Food

Stallholder Robert Dinardo was found guilty of food contamination in the Melbourne Magistrates Court on Tuesday. He was accused of displaying food containing rat faeces, insects and bird feathers.

Dinardo, who was described as a packaged goods trader in the QVM fruit and vegetables sheds,  pleaded guilty to 13 charges, including failing to comply with relevant legislation and selling food unsuitable for human consumption following a 6 months investigation by health officers.

Defence barrister argued that it was impossible to make the open stand stall vermin and weather proof but the magistrate said that every retailer was required to adhere to the Health Act.

Ed: This story was reported in the Herald Sun newspaper during the week.

STOP PRESS: QVM A Winner In Council Elections

Lord Mayor Robert Doyle has been re-elected in a landslide victory and promises a $100 million-plus redevelopment of Queen Victoria Market.

“It’s obviously a very strong mandate. I think that’s because we spelt out the policies that people wanted” he said. A priority will be to redevelop QVM. “That much-loved icon needs a major investment from the city in order to restore it to our No.1 attraction – it could be the Federation Square of that part of the city.” The project would improve car parking, landscaping, and open space, but preserve the historic sheds and meat and fish sections.

Mr Doyle won a massive 41% of the primary vote in the Town Hall elections, easily out-polling main contenders Mr. Singer (15.6%) and The Greens, Alison Parkes with 14.8%. Other plans by Mr. Doyle include a Transport Museum at a re-vitalised Docklands, and the transformation of the Flinders and Elizabeth streets corner as the city's gateway.

Have Your Say - click here

COMMENTS:
29/10/2012 08:43:12 QVM a "winner" "No offense to anybody but I will declare QVM a "winner" when I start to see some of the fine print and have some detail on what the actual intentions are and the immediate and long term impact on Traders." You Know Hugh
 29/10/2012 12:50:53 re election  promises. "I agree with Hugh. Politicians, are  not to be  taken  at their word, that is a fact. They tell people what they know people would like to hear.Once elected its a different story. That is  a sad fact of life in any country." andypandy
29/10/2012 16:56:17 Election result "I think the headline is a little premature and I think you have to take into account a lot of stall holders do no support Mr Doyle. It's no time for a winning celebration."                   
29/10/2012 21:22:15 Lord Mayor QVM "To listen to the Lord Mayor talk about us, you may want to click on the following link. http://www.youtube.com/watch?feature=player_embedded&v=WalyxlHuoGo"
29/10/2012 2152 QVM A Winner - "I'm not sure what I'm missing but Mr. Doyle is the first Lord Mayor in a while to invite traders to talks, arrange for us to have intensive discussions with the Chairman of the Board, and propose spending $100 million on re-generating the market. So why all the negativism? I think we can justify a little optimism here." - Editor.
29/10/2012 23:26:41 Lord Mayor Statement "Rewind back to Thursday afternoon, and perhaps we begin to understand present Trader sentiment and pessimism. Add in the general mistrust, negativity, frustrations and disappointments linked to how the Market has been allowed to slide to it's present state.
Admittedly it is also true that the general Trader tendency to place the blame exclusively on others with little introspection is also a contributing factor to the general attitudes expressed towards the words of the Lord Mayor.
At any rate I for one dare to hope that the ""line in the sand"" spoken about by Paul Guerra QVM Chair, will be soon set in concrete, not by facile pronouncements but by a new age of transparency and collaboration, of true consultation and mutual trust and respect. But I am painfully aware that it will take time and sincere effort to achieve thise things. I am prepared to give it a go! We dont have much to lose, but we may have a lot to gain." Ivano
30/10/2012 13:14:47 Council promises "Will wait and see they hardly ever come across with Election promises usually the only ones to benefit are the consultants." Jillian R  
30/10/2012 1420 via SMS -"Well The Lord Mayor of Melbourne has opened his mouth once again.
Looking to spend $100 mill on QVM. So council has a figure of $100mill but have no plans. It poses the question. How do you get to the figure of $100mill without knowing what you are doing?
Thursday 26 October, Stall holder, QVM management, Chairman of QVM Board, Board members, and the CEO of Melbourne city council had a meeting at the Jasper hotel.
At this meeting we were given nothing about the $100mill. Actually if we were mushrooms we were well nurtured at that meeting. Why only 10 min for questions? Mmmm need to wonder!!!
Q: Are the council just kicking the can as they have done in the past?
Q: Do the people who are making these plans know what is needed?
Q: what is anyone doing to get customers effectively into the market?
Q: Why is it such a secret?
Q: We have a council so willing to help! But everything to do with the market takes so long?
Q: Is it just a land grab?
Well that's my 2 cents worth." John Magno

 

                            

Latest Retail News – 27/10/2012

Latest Retail News – 26/10/2012
1.       Inflation up 1.4% in September quarter – keeping within RBA’s annual rate target of 2-3%.
2.       Government slugs backpackers an extra $70 visa charge in blow to tourism.
3.       Government’s move to monthly company tax payments branded as an accounting trick that will increase compliance costs.
4.       ANZ records profit of $6.01 billion.
5.       Tiger Airways fined $110,000 for failing to unsubscribe customers from marketing emails.
6.       Apple makes $8.2 billion profit in one quarter.
7.       California introduces laws allowing homemade food goods to be sold legally.
8.       Gumtree reports second hand sales boom as consumers look for income alternatives.
9.       NAB reports slow build in business confidence.
10.   Roy Morgan Research reports consumer confidence increases to near pre-GFC levels.
11.   Highpoint Shopping Centre opens new Fresh Food Mart and Eco Mall.
12.   September credit and debit card transactions up by 6.9% on last year.
13.   Online entrepreneur, Kogan, achieves 1 millionth sale.
14.   NSW government plans to introduce 24 hour retail trade by Christmas.
15.   Billabong reports improvement in sales.
16.   Cotton On opens its 1,000^th worldwide store.
17.   Zara opens its 6^th Australian store at Doncaster Shopping Town.
18.   QVM launches self-guided heritage trail.
19.   Lord Mayor Doyle slams Morgan/Elliot plan for underground car parks.