Melbourne In Top 10 Most Expensive Cities

A recent worldwide study found that Sydney is the world’s seventh most expensive city and Melbourne the eighth.

Melbourne and Sydney are now supposed to be 50% dearer to live in than New York but like all studies we need to be careful about what conclusions we draw from the data. The figures are largely influenced by the dramatic rise in the Australian dollar because the base currency for the data is the US dollar. So, people in other countries would notice the difference when they come to Australia (not great for international tourism at QVM) but for us the change is hardly noticeable. Australia’s underlying rate of inflation remains at a manageable 2.5%.

By coincidence, your editor received a comment from a US tourist last weekend that she was very happy with her holiday in Australia but was amazed by how expensive our fruit and vegetables were at the market compared with back home. Can’t say I have ever heard that complaint before.

New Product Idea – Toys

Another new product to gain attention from the retail trade is this range of children’s toys that use their packaging to form part of the toy.

Tube Toys ship in cardboard tubes that become the vehicles bodies so all that is thrown away is the outer paper sleeve. The toy comes in four different versions – tractor, car, train and firetruck and are expected to retail for US$16.

New Product Idea – Cookware

In order to keep traders up to date with the latest in retail news we subscribe to a number of business news sources and every now and then new products are highlighted because they are significant or have won awards at trade shows either in Australia or overseas.

One such product is this collapsing beater which saves on the drawer space normally taken up by such implements. Inspired by a bunch of straws, the beater is still in development stage but will be on the market soon from Normann Copenhagen.

Latest Retail News – 18/02/2012

Latest Retail News – 18/02/2012

1.       Australian cities now rank in the top 20 most expensive places to live.

2.       Westfield announce 38% profit jump on back of record no. of retail leases.

3.       JB HiFi reports 9.4% profit drop for first half.

4.       Furniture retailer Nick Scali reports sales up 9% but profit down 10%.

5.       Sleep City with, 64 Australian stores, placed in administration.

6.       JB HiFi to start selling electronic musical instruments in 2012.

7.       NAB survey reports retail prices continue to slide due competition.

8.       Reject Shop report 4% rise in first half profit.

9.       Noni B reports more than 50% rise in first half profit after reining in costs.

10.   Domino’s Pizza enjoy 23% first half profit rise on back of successful new product launches.

11.   Jeweller Michael Hill reports 11% increase in 1^st half profit largely from US/Canada operations.

12.   Billabong looks to close up to 150 stores worldwide as it restructures.

13.   Wesfarmers (Coles, Target etc.) report almost flat first half performance.

Got a Problem? – Write a Letter!

Trader representatives often receive complaints from frustrated traders who don’t realise that their issues can sometimes be easily resolved by a simple letter.

There are many issues about trading at The Queen Victoria Market that can cause us angst. Sometimes they are very small issues. Often we will talk about these issues with other traders, sometimes with market inspectors, and the longer they go on the more frustrating they become. Sometimes we feel that nobody is listening to us and that raising the issue again will just be a waste of time when, in fact, we just haven’t gone about the complaint process in the best way.

Here is the method that will give you the best chance of success. Write a letter addressed to – The Manager, The Queen Victoria Market, 513 Elizabeth St. Melbourne 3000. Identify yourself, explain briefly what your problem is and, if appropriate, offer a solution. You will get a response.

If your problem continues, or somewhere down the track starts again, write another letter. Your complaint now becomes a matter of record and good management requires that it is dealt with. If you don’t get a response or you think the response is manifestly unfair, talk to a trader representative or trader volunteer.

In the end, you may not get the result you were looking for but you will be able to move on with the knowledge that you have done all you can to achieve the best result possible.

Where Are Security When You Need Them?

Security is a big issue at the QVM for both customers and traders. Longer term traders will remember the bad old days when thefts from traders, particularly at the beginning and at the end of the day, were a real problem, and things have improved, or have they?

We are specifically talking about theft of trader’s wallets or purses, so we are talking theft of personal money, credit cards and possibly takings. A trader has reported a recent incident (close of business Friday 10^th February) when a thief was seen emptying two bags or wallets in the 20-30 minutes it took security staff to respond to his telephone call for help. At least one of those bags involved the loss of a trader’s wallet, passport, and takings.

Your editor has also experienced apparent lack of interest from security staff around the time of the close of business. Maybe this is when a shift change takes place. Unfortunately it is also a prime time for thieves to target traders. Traders must accept responsibility for their own basic security but when professional thieves are in action we need professional security right up until we leave the market.

Let us know your experiences.

Following is our traders email:

Suspicious behaviour of one visitor on last Friday result with my call to the office to send security.

He visit my stall,uninterested touching few bags, and steering  on me or my wife.

He was looking for opportunity only.

He has only one jacket in the hand( to hide what he steal.

He's gone down towards Queen street through RK- RL shed.

Five minutes late he was back with something under jacket and he sat on tables in M shed.

As I was busy with customer I did not see what he was doing.

I was aware of him when my wife told me " look at this Idiot, he's peeing on our box.

That was the same man from the shop before .

I confronted him in hope of security being there soon.

Tall, app. 180-185 cm, black curly hair, black medium beard, Mediterranean, European appearance. Aussie accent.

Short 3/4 pants, colourful tattoo on legs.

He again disappeared towards Queen street, this time through M shed.

He left the scene with a black backpack.

He left one purse, I checked inside, but there was nothing expect two "libra".

 I went back to my stall hoping security would be there soon.

10 minutes later, he came back walking from nowhere. As I did not take my eyes of him he just passed by through the Gooci stall in L shed.

5 minutes later I saw him in M shed doing the same exercise as before: cleaning someones bag and wallet.

( as we discovered later that was a bag from a shop assistant which was stoled through L shed, with her passport, cards and some cash in the wallet , plus her making from this day)

As I did not know this at that moment, I tried to confront him again, but this time he ran faster and faster down to the Deli section where I lost him.

I rang the office again I tried to tell them my position where i was, but they explained to me how security was waiting for me at my stall!

Well disappointed I was back at my stall and there was no security.

I called the office again to call the security back and to tell them about this man and to give them a description.

They came back and in the middle of the conversation a girl came from the T shirt stall and said,; I can't find my bag, someone stole my bag! 

Response from security was more than pathetic: you shouldn't leave it there!

Sorry for this long story.

Point is:

• what  happened between my first call for help until security appeared? Two thieves and one chasing? 
• How quick was the response of Security? 20-30 minutes?

After this experience I will think twice before I call Security:

I lost a few customers and I was late with my packing.

 

Maybe a poll about Security effectiveness would be better than a coffee poll...

My Question is:

• What if we have our own record of how many thieves  visit our shops?
• What if we have a number from where we can report a thief and this message can be distributed as a warning by SMS to all the stall holders within seconds? With description?

Let's talk.

Regards,

Mino

JUST LEATHER PRODUCTS

JLP Melbourne TM

Melbourne Australia

http://www.justleather.com.au/

Rent Rebellion

Fascinating string of articles in Inside Retailing this month which started with a Retail Consultant claiming that landlords are responsible for the current retail malaise and proposing that retailers should join together in a class action type manoeuvre to demand a 33% rent reduction.

Subsequent articles took the blame away from landlords and back on to retailers. The arguments are fascinating (and mind boggling) so rather than try to analyse them we are going to take the easy way out and invite you to have a read. Don’t forget to read the comments as well – they are equally good reading.

http://www.insideretail.com.au/IR/IRNews/Rent-revolt-how-to-win-4022.aspx

http://www.insideretail.com.au/IR/IRNews/Retailer-v-landlord-let-the-battle-begin--4051.aspx

http://www.insideretail.com.au/IR/IRNews/Suicidal-intentions-4158.aspx

And don’t forget to let us have your thoughts.

Price Competition From Centres

Okay, The Glen in Glen Waverley is not actually a cutting edge shopping centre but it does have a David Jones anchor and it typifies the middle of the road Melbourne shopping centre.

Two very competitive offerings caught my eye.

1.       Firstly, the shoe repair shop with its carousel of 100’s of leather (?) belts at just $10 each. I know, we have been selling $10 belts at the QVM for years but traditional retailers have always been trying to get around $30 for such belts. It looks like they might have caught up.

2.       A sun glasses kiosk with a large range of men’s, women’s, and children’s sun glasses for $12 and their top-of-the-range polarised fashion glasses (again a large range) at just $20. I don’t pretend to fully understand the sun glasses market but these seemed very competitive.

Both outlets were merchandised without great fanfare. In other words this wasn’t marketed as a one off special sale, just business as normal.

Latest Retail News – 12/02/2012

1.       Games Group likely to sell its 115 Australian stores in debt re-structure.

2.       Failed health and beauty product retailer, Healthzone, has been sold to Singaporean Co.

3.       Hong Kong based Esprit clothing chain decides to close all US stores.

4.       Retail Sales for December rose just 3% over 2010.

5.       UK supermarket, Tesco, dumps its carbon reduction plan.

6.       Australian meat pie retailer, Pie Face, opens its 1^st US store on Broadway.

7.       Macquarie Equities report specialty retailers prospering over department stores.

8.       Online giant Amazon plans its own bricks & mortar store.

9.       Webjet reports half year profit up 17%.

10.   Telstra signs up more than 1 million new customers in 6 months to December 31^st.

J.C.Penney’s New Pricing Philosophy

Penney’s are a mid range US department store and their new CEO has introduced a pricing philosophy that does away with the old WAS/IS pricing regime.

Rather than marking up and then marking down, Penney’s are saying “Let’s stop treating our customer’s like fools”. It’s nonsense to pretend the right price for an item is $20 when it is going to sell on sale for $10.

Customers are shown the best price and allowed to make up their own mind whether it is good value.

Why Retail Rents Must Come Down

1. The old model for retailers was to obtain a substantial bank loan, often backed up by home ownership, which enabled expenditure on things like elaborate shop fittings, container loads of stock direct from overseas suppliers, and a cash flow able to handle seasonal sales variations. Banks no longer see the value in retail enterprises and have toughened up lending rules. In short, retailing is not the cash cow it used to be and high cost items like rent are no longer sustainable.

                2. Online trading is becoming more significant and retailers are increasingly reliant on sales outside the traditional bricks & mortar stores. Predictions for Australia include 30% of retail sales coming from online. If you are getting more of your sales outside the physical store, why should you pay so much rent for that store?

                3. Consumers have become scrooges. Spending is at an all time low as consumers reassess their needs and buying patterns. The combination of lower spending and increased competition (with lower margins) means that there is strong pressure on reducing costs.

                4. Customer traffic numbers are declining as consumers find alternatives to “walking the malls”. The prime role of shopping centre managers is to get customers past the retailer’s door. If those numbers are declining, surely rents must decline as well.

The challenges for retailer going forward are immense and the cost of adjusting to the new conditions must be shared by all including landlords.

Latest Retail News – 4/2/2012

1.       All Fletcher Jones stock will be sold off as administrators work through windup.

2.       Starbucks profit grows 10% on the back of new store openings.

3.       Lend Lease launches iPhone app to guide customers around their shopping centres.

4.       Coles and Woolworths launch price discounting on fruit and vegetables.

5.       ARA calls for more interest rate cuts to stimulate consumer buying.

6.       Woolworths say electronics better sold through Big W as they plan to divest Dick Smith’s.

7.       Australia’s Breville Group reports earnings growth on back of significant improvement in North America market.

8.       Barbie Dolls help push Mattel’s fourth quarter income up 14%.

9.       Despite all the spin, Coles and Woolworths maintain similar sales growth (around 4%).

10.   Poor sales performance for Target (down 2.5% in the 6 months to December) and K-Mart (down 1.4%).

11.   Ritchies buys 9 Franklins stores.

12.   Christco Hampers fined $175,000  for  overcharging customers on layby cancellations.

Traders Sales Results Analysed

Traders representatives have been collecting sales data from volunteer traders over the last two months and results have now been compiled.

Traders were asked to compare their sales on each trading day with a sales budget and the results have been correlated into graphs and charts for a number of categories in the market including –

1.       Jewellery

2.       Arts/Crafts

3.       Gifts

4.       Clothing

5.       Clothing Accessories

6.       Souvenirs – General

7.       Souvenirs – Specialised

Sales have been further categorised to show midweek and weekend sales trends. Participating traders have been progressively receiving feedback and as we progress with the data we will attempt to draw links between sales and various other factors including –

1.       QVM events.

2.       Marketing programs.

3.       City of Melbourne events.

4.       Concerts

5.       Sporting events

6.       Other public activities.

Traders who would like to participate in this information sharing are invited to email us (generalmerchandisetraders@iinet.net.au) or contact Ivano or your trader representative.

Market Interview - Bob

Name? Bob

Born? Melbourne

What do you do/sell at the market?  Hats and gloves.

How long have you been at the market?  29 years - started in 1983.

What do you like best about the market?  Variety of customers - even the silly ones make me laugh.

Worst moment?  Thieves and strong winds.

Past jobs? Fire brigade.

Sporting interests?  I play ten pin bowling

One thing nobody knows about you? I'm a Martian.

Favourite food? Thai.

Favourite drink? Jim Beam

Favourite TV show/ movie? Ghost (soft) or Forever Young (even softer).

Favourite music?  Cher, Abba, (any from this century??)

If you had your Sunday arvo free from the market, what would you do? Drive to Yarra valley to wineries for a meal.

If you were given a 2 week free holiday anywhere around the world where would you go? Back to Hawaii for a cruise

Thanks Bob

Interviewed by Tony

Best Coffee? - And the winner is....

Big congratulations to Pizza at QV (F shed) for winning our online poll with over 50% of the votes. It would appear that their combination of quality coffee, price, and excellent service pays off at least in the eyes of General Merchandise Traders.

Like many successful small businesses much of the credit goes to those behind the counter, and our photo shows staff being presented with a certificate of excellence.

Runner up in the voting was Sophie’s in F shed. Thank you to all traders who voted in our poll and to each of the coffee outlets who participated. In the end the list included Romeo’s, Sophies, La Cantina, Pizza at QV, Market Expresso & Trolley Hire, Ren’s Cafe, and Market Lane Cafe. The online polling system worked very well and you can expect more from us as we seek your opinions on what is happening (or not happening) around the market. Thanks again to all participants.

New Product Idea - Electronics

It is not our normal brief to recommend new product lines but every now and then a new idea comes up that catches our attention.

These book chargers are made from real books which have been discretely modified to incorporate a phone charger. Designed by a Californian couple they sell for $48-55.

Legal Action Against Wholesaler For Price Control

The ACCC has launched legal action that will remind wholesalers it is illegal to force price restrictions on retailers.

Cosmetic Wholesaler, Eternal Beauty Products Pty. Ltd. has been accused of forcing online outlets to adhere to minimum retail prices for their products. The issue here is not the price the wholesaler sells to the retailer at, but trying to force the retailer into setting its price with consumers.

One to remember next time one of your suppliers complains about your retail price at the market.

New Words In Retailing

It seems that every new trend needs to have a new word or catchphrase and while we can have bets on which ones are likely to survive the test of time we thought we should look at some of them.

-          “Bricks & Mortar” – physical shops rather than online.

-          “Mashops” – a mash-up of bricks & mortar and interactivity.

-          “Digitail” – the convergence of digital and retail.

-          “Click ‘n’ Collect” – click online but collect in-store.

-          “So/Lo/Mo” – mobile services that connect shoppers socially and locally.

-          “One Line Strategy” – rather than online v offline, integrate the two.

-          “SEO” – search engine optimisation.

-          “Showrooming” – viewing goods in store but then going online to buy.

-          “Gamification” – the idea that you can engage shoppers better by introducing elements of healthy competition.

-          “Omnichannel” – directing your retail message through all available methods.

And finally, here is one that caught our eye – “Ramen Profitable” - A business that makes just enough money to cover basic living expenses, such as toilet paper, running water and instant ramen. Sound familiar?

New Product Idea - Luggage

It is not our normal brief to recommend new product lines but every now and then a new idea comes up that catches our attention.

This backpack scooter looks useful even if just for scooting between terminals at an international airport or perhaps moving stock between stalls at the Queen Victoria Market. Apparently just a concept at this stage so no price, but we like it.

Embracing New Trends Essential For Business Success

A survey released this week identifies 8 key customer service trends that will set the standard for the next decade in retail.

The survey comes from BDO Australia, an association of accounting professionals with worldwide affiliations and follows consultations with 479 business leaders. The key points are –

• Global competition will drive up service standards.
• Companies must maintain service standards in the face of ‘the need for speed’.
• Firms must learn to use the increased transparency brought by social media to their advantage.
• Companies must use new sources and types of data to rethink the way they track and personalise their service.
• Good employees will remain fundamental to good service but with technology as an enabler.
• More firms will outsource aspects of customer service to new kinds of specialists.
• The rise of the mass affluent and other customer segments will force companies to find new product or service niches.
• Customer expectations, including the purpose of the store, are evolving with new technology.

Of course, Queen Victoria Market traders don’t do business in a normal retail environment. Our unique location and structure creates its own challenges and some distinct advantages. Our ability to offer personal service to our customers is one of those advantages and combined with at least some aspects of new technology, should help us handle the changes ahead.

The full report from BDO is available online - http://www.bdo.com.au/resources/surveys/service2020/service-2020-megatrends-for-the-decade-ahead