Latest Retail News – 10/12/11

        1. Oroton plan to close some low volume stores following the extraordinary growth of online.

2. Kathmandu removes minimum purchase requirement and now offers free delivery for all online purchases.

3. Queensland is to follow NSW and force fast-food outlets to declare calorie content.

4. David Jones warns of 20% profit drop for first half year.

5. The world's first Androidland store has been opened by Telstra in Melbourne, showcasing Android smartphones and tablets.

6. Coles and Woolworths roll out latest contactless payment system.

7. Consumer affairs seize more than 10,000 unsafe toys from Victorian retailers.

8. RBA decision to cut official interest rates expected to help retailers.

9. New laws passed in WA to protect retail tenants.

10.   Clothing retailer Fletcher Jones has been placed in administration.

Positive Results From Customer Survey

The General merchandise Traders Customer Survey is producing positive results even before the data is collated.

The survey is conducted by traders during the normal sales process with customers and has produced immediate benefits.

1.Firstly, many traders are finding out a lot more about their customer base than they knew in the past.

2. Secondly, customers are reacting well to the discussion process, gaining a positive attitude to the trader and what they have to offer. The bottom line is - show interest in your customers and they will respond in a positive way.

The initial trial survey has been completed and data is being analysed as we write. The survey will be fine-tuned to iron out any of the bugs and we will then launch it again through a broader range of traders, hopefully in the next week, so that we can take advantage of valuable data around Christmas/New Year.

QVM Crank Up Local Christmas Promotion.

For those of you who missed it, here is the QVM’s full page advertisement in Wednesday’s Herald-Sun Christmas Gift Guide liftout.

Don’t Buy This!

For Black Friday, the biggest US retail day of the year, retailer Patagonia took a full page ad in the New York Times to ask its customers NOT to buy this jacket and instead consider the cost of their consumption.

Patagonia are known for their environmental and social conscience and their ad included a description of the environmental cost of their product - “To make it required 135 litres of water, enough to meet the daily needs (three glasses a day) of 45 people. Its journey from its origin as 60 per cent recycled polyester to our Reno warehouse generated nearly 20 pounds of carbon dioxide, 24 times the weight of the finished product. This jacket left behind, on its way to Reno, two-thirds its weight in waste.”

Not sure how many consumers were prepared to listen to this type of arguement with overall Black Friday sales up 16% over last year.

PS – Black Friday (the 4^th Friday in November) is so named because it marks the start of the season in the US when retailers move from being in the red to the profitable black.

Impressive Video By Trader

Check out this video from Mino of Just Leather Products -

tony pierrakos said...

very good, i was expecting the girl to finish up at the market to buy more

8 December 2011 19:46

Tui said...

where did they show this clip?

12 December 2011 11:31

Editor said...

Just on Youtube at present I think Tui. Apparently the video is still being fine-tuned. We'll ask Mino of Just Leather for an update.

12 December 2011 12:08

 

City North Structure Plan – Queen Victoria Market

The City North Structure Plan is to be presented to council tonight (Tuesday 6^th December) and contains a number of references to QVM. We have isolated various parts of the plan that have particular relevance to the market. The full plan is available on the MCC website.

ISSUES:

Underdeveloped sites

Many sites within City North remain underutilised …The Queen Victoria Market is a cultural icon, which occupies a 7 hectare site including an expansive car park. To complement this key attraction, there is the opportunity to optimise use of the land.

Lack of contained activity

The Queen Victoria Market is only a part time hub of activity in City North. The limited opening hours and retail offer do not comprehensively service local retail needs and create a large activity void particularly when closed (two days a week). A denser population of residents and workers local to the market would strengthen its long term retail viability. The uses surrounding the Queen Victoria Market should complement the role of the market’s unique retailing offer.

STRATEGIES:

Create three new local activity hubs

There is currently no conveniently accessible service hub. Local service hubs are proposed, one around the Haymarket precinct, another at Queen Victoria Market and the Carlton and United Brewery site. These hubs will provide local services, amenity and a sense of local community. They will also service visitors and tourists and be part of the broader activity of the city.

DDO14 – Queen Victoria Market Area

The primary purpose of the overlay is to ensure that any development within the Queen Victoria Market is consistent with its Victorian character and low- scale. Importantly, the DDO seeks to ensure that that any development in close proximity to the Queen Victoria Market is compatible with the scale and character of the Market……

Pedestrian priority within the Queen Victoria Market vicinity

To improve pedestrian access through the Queen Victoria Market precinct, Queen Street and Therry Street will incorporate wider pedestrian pavements and a generous space for landscaping. The southern end of the Queen Victoria Market will benefit from improvements to pedestrian links to provide enhanced access to the Flagstaff Gardens.

PUBLIC REALM – 30 year Vision

The City of Melbourne’s Open Space Strategy (draft 2011) indicates that the growing community in City North will require additional and a more diverse range of open spaces. Opportunities to meet this need exist at Queen Victoria Market, at Haymarket and within the streets.

Opportunity for generous landscaped streetscapes        

The Queen Victoria Market (QVM) is a Melbourne cultural icon and key attractor in City North, with ten million visitors a year. At present, the seven hectare QVM site accommodates few trees and landscaped areas to contribute to the experience of shoppers and visitors. The QVM has expansive areas of asphalt which create an impervious surface. There is a high level of pedestrian activity in the QVM precinct. However, several streets in the vicinity have a lack of trees to enhance pedestrian comfort. There is significant potential to improve the provision of trees and open spaces which are complementary to the QVM’s heritage to strengthen the visitor experience.

Latest Retail News – 4/12/2011

1.       Bunnings to build giant new store at Melton.

2.       Harvey Norman says audio, visual, computers “getting a hiding” in 2011.

3.       Metcash (IGA) reports 14% drop in first half grocery profits.

4.       Sydney now number three in global shop rents.

5.       Retail sales up again in October but only very small amount.

6.       Metcash purchase of Franklins Supermarkets finally approved by ACCC.

Retail Rent Comment

Sydney retail rents are in the top three of the world while Melbourne and Brisbane lie in 8^th and 9^th places respectively.

Australia’s high profile economic performance is seen as the culprit with international brand retailers breaking their backs to get into the world’s No.1 growth economy and paying higher rents as a result. Local brands, on the other hand, are experiencing softer conditions.

According to a report on smartcompany.com.au “Retailers have been calling for landlords to lower their rents for some time, with even prominent chains such as Baker's Delight complaining that prices are too high.”

At this week’s annual general meeting, Mark McInnes of Premier Investments gave details of his much publicised rent comments - The former David Jones chief described how he's able to play hard ball and focus on internet sales in order to gain some much-needed discounts. "Portmans in Canberra Centre is the most obvious example," he said. "We're doing $800,000 in that store – it's a terrific store for us – but we're paying $400,000 in rent and we're basically breaking even." "We said to the landlord, "Well, we're going to shut. We'll put an ad in the Canberra Times saying 'Go to Portmans.com.au and if you don't want to go online, Go to Belconnen'- And our rent reduced 30%."

What The Future Holds

Global think-tank, Future World, has predicted some bold scenarios beyond 2020.

The end of 'products' and 'manufacturing'.
A quarter of retail products are manufactured (3D-printed) at the point of use. Many expensive 'products' have morphed into free 'services'.
Retail and professional services reinvented.
Three-quarters of all retail is online. Malls are entertainment for the rich. Most business processes are audited in real time.

Business on digital steroids.
Everything that can be automated is. And customer service has been 'outsourced' to the people who know it best - customers themselves.

Size means nothing.
Being connected is everything. Even the smallest business has access to virtually unlimited computing power and sophisticated software, in the cloud. New competitors are turning old industries upside-down.

The third youth revolution.
Age and experience no longer equals power. Youngsters commit the largest crimes (mostly electronic), are fighting virtual wars and managing the most complex investment portfolios.

Everyone is connected - and it's a basic human right.
In this world of 'digital plenty', the idea of the 'haves' and 'have-nots' is out-dated - there are only the 'haves' and the 'want-nots'.

Market Interview - Asad

Name? Asad

Born ? Pakistan

What do you do/sell at the market? Ladies clothing.

How long have you been at the market? 2 years.

What do you like best about the market? -  Fellow stallholders.

 Worst moment? Hot days.

Past jobs? Computer graphics in Pakistan.

Sporting interests?  Swimming.

One thing nobody knows about you? I am a furniture designer and maker.

Favourite food? Zucchini and tomato.

Favourite drink? Black tea.

Favourite TV show/ movie ? Everybody loves Raymond.

Fav band? Classical

If you had your Sunday arvo free from the market, what would you do? Spend time with my wife and young child.

If you were given a 2 week free holiday anywhere around the where would you go?  I miss my family so much that I would go to Pakistan.

What are your best and worst memories of your homeland?

The best is my time spent with my childhood friends - we were inseparable.      The worst was in 2009 witnessing the murder of my uncle in front of me.

Thanks Asad

Interviewed by Tony

What’s Old Is New Again

Wooden backscratchers must have been around at the market for over 30 years – probably longer.

Technology site, Gizmodo, has just posted an article headed –

“Ruler-Backscratcher Combo Is The Greatest Office Innovation Ever”.

Apparently the ruler-backscratcher is not available just yet but we fully expect market traders to maintain the tradition and stock these as soon as they do become available.

Australia's Boom In Perspective

The OECD's latest economic outlook says Australia will have the fastest growth rate in the developed world next year at 4 percent.
In other news, ratings agency Fitch has awarded Australia its top sovereign credit rating, making it the first time Australia has been AAA rated by all three agencies. Only 15 countries hold the AAA rating.
In today's economic roller coaster we know that all is not rosey for Australia as European debt problems continues to impact on all world economies and, more critically, China's manufacturing activity contracted in November for the first time in 32 months.
Of course, traders at The Queen Victoria Market know that turning around retail sales is right up there with any of these global issues. 

Question From A Trader

The market is conducting a competition for the best stall decorated in a Christmas theme. Our trader wants to know, if the Queen Victoria market were to enter the competition, would they win a prize?

What’s A Fair Take At The QVM?

This week’s participants in a trial survey at the market have been asked to compare their daily sales with an “expected sales” figure for that day which raises some very interesting questions about how to calculate a fair return.

Calculating an “Expected Sales Return” is not difficult. There are probably three different components to the calculation.

1.COSTS - For starters you need to know the costs of running your business and most of the information is already available in things like your GST summary. By adding your standard retail mark-up to business costs you arrive at what sales are needed to cover costs.

2. A WAGE - Now, to add in a fair wage for your efforts. The minimum wage for an adult Shop Assistant is around $150 per day, while the average Australian wage is about $250 per day. You will need to decide on what you think is a fair wage. (I went for $200 per day and because I only trade 3 days at the market I multiplied the $200 by 3 to arrive at a weekly wage. I know, running our businesses requires working more than just trading days, but I am keeping it simple). You then add your standard retail mark-up to that figure to arrive at what sales are needed to support a wage.

3. PROFIT - Now, what about a business profit? We are independant business people, investing time and capital, taking more risks than the average wage earner, and entitled to a small profit. (Times are tough, so I kept my sights low and decided on $230 week (around $12000 per annum) as a profit over and above my wage.) Once again you add your standard retail mark-up to arrive at what sales are needed to support a  profit.

By adding up the sales you need to cover costs, plus the sales you need to cover a wage, plus the sales you need to cover a small profit, you will be able to calculate a weekly “Expected Sales Return” for your stall at the market. Give it a try – it’s a little scary, and a little revealing – but you will be a wiser trader once you have done the calculation.

There are obviously lots of variables in an exercise like this and we would be interested in your thoughts on the above method of calculation. We would also like to know how your own calculations went.

Please Note: No actual sales figures are collected in our trader survey. Sales figures are quite rightly private and confidential. We don’t even collect names or stall numbers. All the information provided is anonymous. We do ask you for sales trends on each trading day which is a percentage figure of how your actual sales compared with your sales budget.  For example, your return for a particular day may be  - 80% - which tells us that you achieved 80% of the sales you expected for that day. By comparing sales trends with other data, like customer sources, we are able to form a picture of what drives our sales in the top end of the market.

Customer Survey Progress

This is a follow up to our leaflet distribution last week when we asked all traders to participate in a customer survey which will help us target more customers for the top end of the market.
A meeting was held with management on Wednesday to fine tune the data needed and preliminary surveys sheets have been given to select traders as a trial before we implement the main program.
We are still looking for traders who are available to participate in data collection for the main program so please get your leaflets back to a trader representative. If you require another leaflet please contact John Magno, Ivano, Michael Presser, Henry Ngo, Mino Volder or phone Greg Smith on 0406222020.

Please Note: No actual sales figures are collected in our trader survey. Sales figures are quite rightly private and confidential. We don’t even collect names or stall numbers. All the information provided is anonymous. We do ask you for sales trends on each trading day which is a percentage figure of how your actual sales compared with your sales budget.  For example, your return for a particular day may be  - 80% - which tells us that you achieved 80% of the sales you expected for that day. By comparing sales trends with other data, like customer sources, we are able to form a picture of what drives our sales in the top end of the market.

Free Website You Can't Ignore

We’ve posted about this before and it is just too good an offer to ignore so here we go again with a video and a blatant rip-off from the MYOB/Google email –

Have you always wanted to get a website for your  business but didn't know where to start?

Now is the best time to get one for free thanks to Getting Aussie Business Online, a joint initiative from Google and MYOB. Here's what you get: Free easy-to-maintain website for one year, then only $5/month pay as you go Free .com.au web address for two years
    No payment details required upfront Free tips to improve your website

With your own website and .com.au address, you can better service customers looking online for information about your business, such as pictures, opening hours, location, and prices.

For all the details go here - http://www.gettingbusinessonline.com.au/ and if you want some further help telephone Greg Smith (0406 222 020) who will put you in touch with a trader who already has a website.

Does Your Stallfront “Shout” What You Do?

More than most shopping venues, we do our very best to confuse customers. The uniformity of our shop fronts and narrow aisles combine to make shopping a bit of a blur. Stalls at The Queen Victoria Market’s top-end are small and full of detail – a bit like shopping in a supermarket and trying to take in all the products on the shelves as you walk the aisles.

Does your stall make it immediately obvious what you do? Or, are shoppers at risk of passing you by before they have a chance to get interested. Take a look at the following two photos and give yourself 10/10 for picking the shop that communicates best.

Maybe it is time to think about the impression you create and the things you can do to stand out from the crowd.

COMMENTS:
From Anonymous 30/11/11 - 16:42
 picture No 1 , you have plenty time to read the news paper at home ji ji
From Anonymous 2/12/11 - 19:18
 Picture 1 is no different to every second stall holder on their mobile phones

From Anonymous 2/12/11 - 19:25
I would be more likely go up to stall holder who's only reading the paper instead of a stall holder that has brought the dog to work !!

From Anonymous 2/12/11 - 19:31
 Where is the second stall and what are they selling ??

From ED 2/12/11 - 20:45
The second stall is a file photo and I think they are Christmas decorations. BTW - cut Danny some slack. The photo is from his market interview and was chosen because of the excellent way his stall communicates its focus on quality Australian knitwear.

Black Friday US Sales Surge

Black Friday is associated with bushfires in Australia but in the USA it means the unofficial start of festive season shopping.

US Thanksgiving holiday celebrations take place on the fourth Thursday in November each year and the Friday after has become known as  Black Friday. Black Friday is the time for retailers to offer the year’s most sensational bargains and get Christmas shopping off to a good start. Retailers like Target open at midnight on the Thursday so as to take full advantage of the buying euphoria (see photo).  Early indications suggest a record sales performance last Friday at around 6.6% above last year.

As one retail commentator so accurately said – “One day’s trading does not make a season.” – So, there will now be an anxious wait to see if a good start can be sustained.

Dolly Brings Customers

Anecdotal evidence that the Dolly Parton concerts in Melbourne this week have brought lots of tourists to Melbourne with reports from a number of traders that business was good from Tuesday on. This connection between special events, tourists and business for General Merchandise Traders is the reason we have circulated traders this weekend asking for volunteers for a customer survey. If we can become more professional about understanding our customers, where they come from, and why they are coming, we might just be able to target this type of concert in the future.

A Not So Serious Assessment of Greece

As the world economy and various share markets stumble from crisis to crisis we thought it might be time to have a light hearted look at just one aspect of the dilemna. Thanks to Clarke and Dawe.