Traders Block Tourist Buses

These trader's vans were parked at the top end of K, RK, RL, and L sheds around midday today (Sunday) denying traders the opportunity to interact with tourists.
The vans were parked for at least two hours in a zone designated for buses. Buses are able to drop customers off at the top of these sheds, allowing customers to filter down through the sheds before returning to the top of the market or picking up their buses down in Queen St.
When vans block the drop off point, the buses go straight to Queen St. for the drop-off. If you own one of these vans, hang your head in shame. If you know who owns one of these vans we suggest you ask them to be more considerate of their fellow traders. Short term convenience for a few traders is no substitute for potential loss of business for the majority of traders in the top end.

 

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Customer Comments

There are many online references to QVM as customers and correspondents post about their experiences at the market. Many are amateur efforts and most refer to our sexy cousins at the bottom end of the market (food) but every now and then we come across a standout reference to General Merchandise in the top end.
Check out this post by photographer Leanne Cole.She has some very nice things to say about some of our traders. - http://leannecolephotography.com/tag/queen-victoria-market/

Why Darrel Lea Failed

Darrell Lea has been absorbed into the VIP Pet Foods empire with its remaining stores to close as the new purchaser concentrates on wholesaling rather than retailing.

In the inevitable analysis of why this iconic family business failed a couple of points standout. Darrell Lea failed to move out of the 20^th century while new competitors like Haigh’s and multinationals like Lindt re-invented their presentation with attractive, cutting edge stores and product merchandising that created value. The other main point concerns service. Darrell Lea’s service wasn’t bad but it wasn’t standout either. Failure to excite customers on service or product presentation makes it difficult for modern retailers to survive.

In an era where the decline of the middle-man has been actively predicted it is interesting that the new owners of Darrell Lea can reverse the trend. If they can see enough margin in the confectionary range to go back to a wholesale model then perhaps Darrell Lea products were overpriced as well.

Latest Retail News – 7/9/2012

Latest Retail News – 7/9/2012

1.    Scandinavian fashions and homewares brand Marimekko to open stores in Australia.
2.    McDonalds to open stores in Vietnam.
3.    Harvey Norman blames fire-sales and restructuring by competitors for poor margins.
4.    Remaining 27 Darrell Lea stores to close as new owner concentrates on wholesaling.
5.    Retailers critical of RBA decision to leave interest rates on hold.
6.    Women’s fashion chain, Ojay, put into administration with 22 stores at risk.
7.    Billabong receives second takeover offer.
8.    JB Hi Fi to move into commercial B2B telecommunication.
9.    Ibisworld says competition from supermarkets and digital news is a double-whammy for newsagents.

Tourist Watch – 7/9/2012

 

The AFL Finals kick off and, although the interstate football teams are hosting out of Melbourne this weekend (with the exception of Fremantle), it is hoped that the draw of finals football will bring us a fair share of tourists anyway.

1.       AFL finals football – Friday night Hawthorn versus Collingwood at MCG. Saturday, Geelong versus Fremantle at MCG.

2.       NRL – The Melbourne Storm play the South Sydney Rabbitohs at AAMI Park on Saturday night.

3.       Melbourne Spring Fashion Week – 30/8/2012 – 8/9/2012.

New Retail Mixes

A report in Inside Retail this week talked about the changing nature of retail mixes in shopping centres and, while we QVM traders constantly deny we work in a shopping centre, it is fair to acknowledge some connection.

The author of this article was critical of what he called a knee-jerk reaction to the sudden change in consumerism. It would appear that many shopping centres have adopted an “out with the old merchandise model, and in with food and entertainment” philosophy. Given the sudden departure of some major retailers and the vacant space left, perhaps we can understand their methodology.  The sudden proliferation of coffee shops at QVM may be a similar reaction.

A recent retail study identified that Australian regional shopping centres had an average of 38.3 food service outlets. Add in banks, hairdressers, movie theatres and other service type outlets and the dilution of traditional retail businesses can be easily identified. Interestingly, the USA is bucking the trend with recent data showing that retail mixes have not changed substantially. The share of specialty floorspace occupied by apparel has increased steadily, from just under 49 per cent in 1996 to more than 57 per cent in 2011. Food service is a horizontal line, and total general merchandise has increased its share from 75 per cent to 79 per cent. What regional centres have done in the US is become fashion specialists. Specialisation through innovative concepts has enabled a stabilisation not seen in many other countries.

We can’t help but comment that, with few exceptions, QVM’s apparel offering is noted for its lack of innovation and specialisation.

 

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Business For Sale

 

This business found online at a business brokers.

Fruit & Vegetables - Queen Victoria Market (4 DAYS - Close to Nando's) Melbourne CBD NC1400

Listed Exclusively with this Agency

- Asking Price $95,000 + Stock
- Taking $5,000 Winter, up to $10,000 in Summer
- Huge potential for the right operator
- Opportunity to have a cheap market outlet
- Right next to the Melbourne CBD
- 5 stalls + 2 cool room stalls
- Prime Queen Victoria Market Position
- Make this your own trendy and attractive draw card stall.
- A stone throw from the CBD
- Easy hours only trades 4 days

Lease Details:

- Rent $906 Per Week Including Outgoings + GST
- Lease Expires August 2013
- Increases 4%
- New 6 year lease available

New Walkways At Market

It looks like the market is trialling walkways connecting C, D and E sheds. This photo was taken on Thursday.

Mixed Messages On Retail Recovery

Some good news on Australia’s retail industry performance in the 6 months to June has  been tempered by today’s (Monday 3^rd September) announcement of July results.

Deloitte Access Economics had reported a 2.8% increase in retail sales for the 6 months to June 2012. This followed a 0.6% rise in May and a 1.2% increase in June. The 6 months performance was the best in 3 years and had newspaper and radio commentators trumpeting the reversal we have been waiting on.

However, The Australian Bureau of Statistics released figures today that showed July was down 0.8%. Commentators are now suggesting the June spike was due to carbon tax compensation by the federal government rather than any long term recovery. The big loser in July was the department store category which saw sales plummet 10.2%. Cafes, restaurants and takeaway food continue to be the best performers.

The overall trend in retail sales is up, but just not as good as some had hoped.

COMMENTS:
04/09/2012 07:23:09 Mixed Messages "Yeah, you gotta love statisticians and friends, since most are funded by someone or other the fact is more often than not they have a pre ordained agenda to work to ( and are paid to achieve ), add in the obvious "flexible" reporting and/or collection of data and Bobs your Aunty. Just keep in mind our own "surveys" at the Queen Vic. First there's the methodology and placement, the positioning of collectors, the questions and the way questions are asked, throw in the way questions are answered. And just for good measure you then get to "interpret" your results. And there you have it, did you want your results wth one sugar or two? What me cynical, never!" Hugh Nanimous                 

Trader's Comments on M Shed and Promotions

03/09/2012 14:52:38 general "Great display of market coordination and efficiency once again..we waited for over 30 minutes to get in from the top of L shed to bring in our trucks .there were 4 of us waiting over 30 minutes. entry into market is 4:00pm. we had ring the office and security to reming them to come and unlock the BOLLARDS..here we are in a middle of meetings to address problems and the market office in general and they have the gaul to not even try to keep the problems from not escalating..its not the lateness that bothers me..its that i am getting tired of the continual obstacles put to the day traders..I LOVE HOW THERE WAS GREAT PROMOTION OF THE MARKET FOR FATHERS DAY....we have a professional supposed marketing team and we couldn't bother to spend any money on fathers day weekend at the market.. i guess there wasn't anything left after the $300000 spent on containers.."

03/09/2012 15:06:58 promotion spring carnival "Can the  marketing department try and organize something for the spring carnival. maybe hire a podium try and get a personality to host and basically try and get customers to dress up as they do at flemington and have a contest..1st prize $1000 to spend at victoria market  2nd prize etc 3rd prize 4th prize 5th prize..also maybe one for kids 4-7 for example.. promote it for teh weekend before the melbourne cup tuesday..maybe do a leaflet drop or newspaper drive ..we have 2 months from today to do something .more than enough time..maybe hire some horses in keeping with the theme.."   Ed - We have asked Andrew Cyples to let us know what promotions are planned for the Spring Racing Carnival.

 08/09/2012 19:06:42 the opportunities given us  "The opportunities given us as people; the opportunities given us as traders BUT yes, BUT the opportunities given to our marketing people for advertising never ceases to amaze me!!
Here we are,we all go shopping,more so fortunately we are retailers in the GREATEST place QVM,but these people don'tknow how lucky they are.
You are offered advice (by us the traders) of how you can go about advertising QVM at opportune times,eg,FathersDay,and now I see another idea came to lite!the Spring Carnival please prove me wrong and show me how you will " Rosalie Rokman                                              

Latest Retail News – 31/8/2012

Latest Retail News – 31/8/2012

1.    Costco announce plans to emulate Coles & Woolworths by opening petrol stations.
2.    New York supermarket sets up an aisle just for men.
3.    David Jones to open a “village format” store at Malvern Central Shopping Centre.
4.    Flight Centre reports 43% leap in full year profit.
5.    Millers/Katies group reports $2.8m loss following store rationalisation.
6.    Study shows only 11% of men can stay at shopping centre for more than 2 hrs.
7.    Billabong plans rationalisation and re-focus after $275m loss.
8.    David Jones expects 35-40% drop in profit on 4.6% sales drop in 2012 financial year.
9.    Telstra offloads Trading Post business to Carsales.com.
10. Harvey Norman’s full year profit falls 32%.
11. Ibisworld officially reports that spending on Father's Day is flat.

A Good Customer Story

Golfers say that if you don’t think you can make the putt you probably won’t make it. Recent trading conditions mean that QVM traders can be forgiven for some pessimism when “putting” for customers. But every now and then you come across a customer who gives you cause for optimism.

This chap wheeled his sister into my stall today in a wheelchair and while she browsed around the stall we struck up a conversation. He had an American twang although he has been living in Australia for some time. His sister was visiting from the US as have many members of his family in recent years. He just loves the Queen Victoria Market because it is the easiest way for him to entertain his family. They also love the QVM and reckon there is just nothing like the variety this market offers. There is certainly nothing like it in the USA. They love the variety, the adventure, the range of tourist items and they love talking with traders. Our Aussie/American said he brings them to the market to show them around and then usually drops them off again a couple of days later and lets them spend the day here.

While there are customers out there like this man we can take some confidence into the future (and, yes, his sister bought a few things off me). I am certainly going to be "putting" with a bit more confidence.

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Australian Tourism Looking Brighter

A new report from Access Economics suggests that Australia’s beleaguered tourism sector can finally see some light at the end of the tunnel and that could be good news for General Merchandise Traders.

So what is the evidence? Virgin Australia is back in the black with a profit of $22.8m, and Flight Centre has reported a 43% increase in profit. Access Economics report a surprising jump in domestic visitors which are up 5.4% on last year and room occupancy rates rose to 65.8% which is supposed to be the highest level ever recorded. Access Economics also say there are strong signs of a slow down in Australians travelling overseas and encouraging indicators for an improvement in domestic travel. Add in Tourism Australia’s $250m marketing campaign in China which launched in Shanghai in June and the overall optimism is understandable.

We recently posted about our request to management for a major tourist promotion and just last week we developed some ideas for maximising the Chinese tourist influx. Let’s hope QVM management take advantage of the opportunity that Access Economics have identified.




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Final QVM Board Feedback Meeting Held - Consultation To Start

The final feedback meeting was held in the carpark meeting room this afternoon. Chairman, Paul Guerra, and board member, Jane Fenton, were in attendance along with members of management and around 30 traders.

Paul Guerra advised that a list of issues would be compiled following the series of feedback meetings. Issues would be ranked short, medium, and long term and those issues that can be quickly fixed will be identified. A process of consultation will commence as soon as possible and will likely involve more meetings.

It is expected that at least some of the issues will be handled through the Trader’s Advisory Committee. The first TAC meeting involving the newly elected trader representatives is expected to take place late in September.

The QVM Board has established a QVM Future Planning Committee that comprises board members and MCC representatives, and part of their brief will be the establishment of a communication chain for traders allowing direct access to the board.

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Tourist Watch – 30/8/2012

Tourist Watch – 30/8/2012

1.       The Melbourne Film Festival continues until 2^nd September.

2.       AFL – Hawthorn play hosts to the West Coast Eagles at the MCG on Friday evening. The Sydney Swans are playing Geelong at Geelong on Saturday and Port Adelaide are playing Richmond at the MCG on Sunday.

Have We Neglected F Shed?

In all the fuss over the new M shed development one of our traders points out that F shed has been on the development agenda for a long time without results.

27/08/2012 20:13:55 F - Shed Retail and Food Shops "After the opening of M - shed there are many complaints about the cars and boxes parked.The opinion is that one part of the M Shed doesn't look like a trading aisle.
What about F- Shed where the boxes and car problem have existed for many years and some part of the shed doesn't look like a trading aisle as well.
F - Shed traders are paying a high rent that can be compared to be close to the shopping centres rental levels, but the facilities are very basic. There is minimal or even nil trading on rainy days, on the hot and harsh sunny days, and on the windy days, as a result of the aisle open to the direct climatic conditions.
The traders are complaining now, and have complained in the past couple of decades for a roof to be built, but no action has taken place, and the subject is not even mentioned in any of the newsletters or corespondences,except that it has always been in the planning stage."                 

Latest Retail News – 26/8/2012

Latest Retail News – 26/8/2012

1. Allan's Music Stores go into liquidation.
2. National Retailers Association calls on Fair Work Australia to abolish Sunday penalty rates.
3. Pacific Brands (Bonds, Dunlop etc.) reports $450m loss.
4. US homewares retailer, Williams-Sonoma, joins international rush to set up retail presence in Australia with 4 different branded shops to open at Bondi Junction.
5. News Ltd. Report that Westfield to cut up to 400 jobs from global workforce.
6. Wheel & Barrow named top kitchen retailer, ahead of fellow competitors Robins Kitchen, Matchbox and House.
7. Noni B attributes 2% increased revenue to better customer service and less discounting.
8. Aldi named Supermarket of the Year for customer satisfaction.
9. Coles launches Tap-n-Go terminals across its network.

What M Shed Needs

The following pictures were taken within 30 seconds of each other last Saturday morning. The lack of customer traffic in String Bean Alley is a standout.

We would have thought that there would be some science attached to creating traffic flow in our market but the evidence suggests otherwise. M shed is an add-on  and until customers see it as an integral part of the market they simply won't go there. Perhaps it is expected that time will see an improvement in attendance but we would prefer a more pro-active effort.
Line of sight to String Bean Alley is terrible. The only uncluttered view is from Peel St. At the other end of the aisle (Queen St. end) the view is virtually blocked by a trader's van.

From the walkways in J,K and L sheds there is no indication that a trading aisle exists in M shed. Even at the top (Peel St.) end of L shed there is no indication that turning towards the carpark will lead you into a new trading area.
We have a simple question. Does management have a plan of action to correct these early short comings?

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COMMENTS:
26/08/2012 13:34:50 String bean alley failure "Who is responsible for the failure of string bean alley? It should be called string bean desert. I see today only 5 of the 8 container sheds are open.
If a public company had a CEO spend over $150,000 on such a debacle the shareholders would be calling for her resignation, or at least the person assigned to the project should fall on there sword.
As a long time stall holder this huge amount of money could of easily been spent on promoting through advertising the great Victoria Market.
I personally think its time for a change at the top. Paul Guerra the QVM chairman was very impressive at the future plan meeting at the Ibis Hotel and If the rumors are correct he would make a great CEO.
It's time for individuals to start taking responsibility for some of the major failings in the market  "

26/08/2012 21:51:18  Now there's an interesting rumor, I wonder if Mr. Guerra has heard it.  

 27/08/2012 15:47:50 M Shed "It is pretty obvious what has to happen..... L shed needs to trade both ways ( all bins, tarps& cars out ),awnings need to go on L shed for rain and shade and no stall should be over 2mt high, so customers can see across the market .Included Stringbean Alley in QVM, at the moment its an over dressed relation standing at the door."  
Ed: This comment gets a tick. Not sure about 2m height over the full length of L shed but it would certainly be helpful at the top, bottom and the crossways. 

27/08/2012 20:13:55 F - Shed Retail and Food Shops "After the opening of M - shed there are many complaints about the cars and boxes parked.The openion is that one part of the M Shed doesn't look like a trading Isle.
What about the F- Shed that the Boxes and car problem exists for many years and some part of the shed doesn't look like a trading isle as well.
F - Shed traders are paying a high rent that can be compared to be close to the shopping centres rental levels, but the facilities are very basic. There is minimal or even nil trading on rainy days, on the hot and harsh sunny days, and on the windy days, as a result of the Isle open to the direct Climatic conditions.
The traders are complaining now, and have complained in the past couple of decades for a roof to be build but no action is taken place, and not even mentioned in any of the newsletters or corespondences,excep that it has always been in the planning stage."                 

                                           

New Market Online Delivery Service

Mercatus is a new online food ordering and delivery service that is based on food supplied from the Queen Victoria Market.

Here is part of the blurb from the marketlife website – “Cherie Keegan and Justin Flowers share a passion for beautiful food made with the very best ingredients. And since fantastic food is what Queen Victoria Market is all about, the pair could regularly be found browsing through the stalls getting inspiration from the seasonal offerings. Cherie and Justin wanted all Melburnians to be able to enjoy the high-quality, fresh Market produce they loved so much but knew that getting to and from the Market wasn’t easy for everyone.

It was then that they had the idea for their free home delivery service Mercatus—Latin for ‘marketplace’—which allows shoppers easy access to the very best produce and products the Market has to offer. It’s as simple as browsing through the products online, placing your order and picking your preferred delivery time. Everything from fresh, seasonal fruits and veggies, bread and bakery goodies, beer and wine, cheese and other delicatessen delicacies and everyday pantry essentials will be whizzing towards your door in no time. And because Meractus works in close partnership with Queen Victoria Market, they are able to provide customers with amazing products and specials.”

 

This is all about food, but the important point for General Merchandise Traders is that new and innovative ideas can enhance the customer experience and keep us at the forefront of customer relevance in this new age of retailing. There are many aspects of shopping at QVM that are unique and attractive. Enhancing the customer experience will ensure we continue to be unique and attractive for another 150 years.

Here is the link to the Mercatus website - http://www.mercatus.com.au/

Getting Chinese Tourists To The Market

Melbourne retailers quickly learned that the influx of Japanese tourists in the late 60's and early 70's was a ripe opportunity and tourist buses flourished as they linked eager Japanese tourists with retailers.

Today, Chinese tourists are becoming the focus but the tourist bus connection has become a little more complicated. Just like their Japanese predecessors, Chinese tourists don't always have good English language skills and they rely on pre-organised tours and activities to determine what and where they visit in Melbourne.

When it comes to tours, a few people need to make money out of the process. There is the tour wholesaler who promotes the tour in China, the tour operator in Melbourne and probably a few others in between. You need to have a tour that can support commissions and obviously tour operators will go where the money is. Anyway, without getting too involved in the complexities of modern tours it is quite possible that a large number of Chinese tourists will leave Melbourne without ever hearing about the Queen Victoria Market and that is a real problem.

What is the solution? One of our traders is a regular traveller to China, has an understanding of Chinese culture and has some advice (thanks Simon). If we can't make an effective entry into the commissionable tour market we need to make sure that QVM is featured on in-flight videos. That way, tourists will be informed about the QVM and more likely to put us on their visit list.

 

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