Retail News Briefs - Amazon, Aldi, One Hour Shoes, Driverless Pizza, Plastic Bag Ban.....

Retail News Briefs – 10/9/2017

Amazon Could Open By Christmas – there is speculation that the progress by Amazon in preparing a South Dandenong warehouse, recruiting staff, and placing product orders, could mean an opening a soon as mid-October 2017. With much to learn about the Australian market, it is expected that initially Amazon will concentrate on price cutting as its key offer.

Stagnant Retail Sales In July – Australian retail sales in July went nowhere as a disappointing result in June continued to influence sales trends.

Aldi and Homewares – Aldi have always had a homewares component in their discount offer but the recent introduction of a “Style Revolution” with “upscale refinement to your home” suggests they are getting more serious about this category.

Nike’s One Hour Shoe Designs – we reported recently on Victraders about major sports shoe manufacturers using 3D printing technology to manufacture shoes. Nike are experimenting in New York with a workshop where you can select from thousands of graphics or create your own on the spot phrases and have your shoe design on your feet in one hour.

Driverless Pizza Delivery – Dominos Pizza and Ford are working together in the US to trial pizza delivery by driverless cars. In simple terms, you order your pizza online, track the delivery vehicle, and when it arrives, go out and open up the boot for your order using a unique code.

Shopping Centres Off the Market – Global private equity firm, Blackstones, has taken its retail portfolio (including Sydney’s Top Ryde and Melbourne’s Greensborough Plaza) off the market and instead will concentrate on improving the properties. Interested potential buyers included AMP and Lendlease.

Plastic Bag Ban In Queensland – from mid next year shoppers will not be able to get their purchases in single use plastic bags. The ban will include degradable and biodegradable bags.

Coles Experiments With More Delivery Options – Last week we reported on the link between Coles and Uber for home deliveries and now Coles have announced a trial with Deliveroo, the bicycle based fast food delivery service. Deliveroo have been delivering  “food packs” such as BBQ essentials in Melbourne’s inner-east since earlier in the year and all with a 30 minute timeframe.

Aldi Upgrades Fresh Food Offer – Analysts are saying that Aldi’d decision to increase fresh food floor space from 15% to 25% has proved a winner as they eat into the market share of the bigger supermarket chains.

The Single Best Way To Move Forward In Retailing – Break Something.

There is a common theme on Victraders.com this week and it relates to disruptors. When Queen Victoria Market Traders went to the back door of manufacturers and suppliers decades ago, offered cash for goods, and sold at reduced margins on market stalls, they broke something.

They disrupted the supply chain, undercut traditional retail stores with their high margins, and gave our customers an exciting new option.

There has since been a whole string of disruptions and right now there is an epidemic of retail disruptions. The latest this week is Amazon’s announcement through its newly acquired Whole Foods fresh foods business that it is going to discount staple organic groceries. Those carefully nurtured and chemical free fruit & vegetables that we have always been prepared to pay a little bit more for (sometimes a lot more), are going to be discounted by one of the biggest disruptors on the globe.

Respected entrepreneur, Mark Zuckerberg, famously once said “Move fast, and break things. Unless you are breaking stuff, you are not moving fast enough.”

What are you going to break or disrupt?

Have Your Say – click here.

QVM's Newest Champions

The latest video in the Champions of Aussie Made features Danny and Ariel Lewin of Danny's Knitwear. Danny says of his Australian made product - "It is unique because of the way it wears, the longer it lasts, and the pleasure it gives you when you wear it."

We do have some great Australian products at our market.

Click on the photo above to go to the video.

Something Market Traders And Brothel Owners Have In Common

A report on the ABC this week said that brothel owners were concerned that online dating apps like Tinder were killing their business. One manager said that business was down 40% on last year and said the cause was apps where people can access sex in a completely new way.

The disruption of online activity is no stranger to retailers (Amazon), taxi drivers (Uber), and accommodation houses (Air BNB).

According to this report brothels have closed down and those remaining have been forced to introduce Tradie Nights and Sausage Sizzles to attract customers.

One of the oldest professions in the world is not immune from internet disruption, and brothels, just like retailers, are having to find new ways to operate their businesses.

Have Your Say - click here.

What Traders Can Pinch From Online Retailers

Market Traders know that our ace card is the personal touch we can provide to consumers but there are aspects of online retailing that we shouldn’t neglect.

With online retailing consumers can try on virtual glasses to select their colour and style of eyewear, experiment with thousands of different shades of make-up on their cheeks, and try on clothing in a virtual showroom. IKEA just launched an Artificial Reality-powered app that lets consumers visualize virtual furniture placed in their homes.

And if visualising isn’t enough, there are more and more online retailers shipping goods to consumers to try on. In that environment, the logistics of getting goods to your customers, at the right cost, become very important.

As more consumers come to experience these other conveniences, it just makes sense to enhance the Queen Victoria Market experience in any way possible. Market to home delivery services, particularly for travellers, makes a lot of sense, as does making yourself contactable outside market hours either by mobile phone or website. Two services becoming popular are "Reserve online and try in store" and "Buy online but collect instore". 

Market Traders have the edge in personal service and incorporating some of these online practices just strengthens that advantage. The QVM Marketing Department has expertise to assist with your online exposure.

Have Your Say – click here.

New Market Pavilion – Expressions of Interest

Expressions of Interest have been invited for activities on the green house level  or top floor of the New market Pavilion in Queen St and some interesting detail is included in the tender documents.

- Potential for extended trading hours such as7am to 7pm, 7 days per week
- The greenhouse concept should not present a retail offer already overly represented in the market nor an entertainment venue with behaviours or activities that detract from the amenity of the precinct.
- Note: the City of Melbourne reserves the right to extend or modify the design of the New Market Pavilion. Stage 1 provides for a structure circa 120 metres long with a 900m2 greenhouse. This may be extended to the south along Queen Street to Franklin Street,  with or without the first floor greenhouse.
- The first stage of the pavilion is 120m long and 19m wide.

IndicativeTimeframes
The indicative timetable for the Expression of Interest and tender process are:

STAGE 1 – Expression of Interest (EOI)
EOI release  :        Saturday 2 September 2017
Briefing session:        11am Thursday 14 September 2017
EOI closing date:        11am Monday 9 October 2017
Notification of short-list:    November 2017

STAGE 2- Request for Proposal(RFP)
The second stage will be aligned  to the delivery of the New Market Pavilion 
including the ground level trading floor and the following timelines are indicative:
RFP issued to short-list:    Late 2017    
Closing date for RFP:    February/ March 2018 (TBC)
Contract award:        April/ May 2018 (TBC)

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Changing Shopping Environments

If you are sick of reading pages of words about retailing, here is a link to an ABC News video that encapsulates the changes in retailing, particularly in shopping centres, over recent times. It examines changing patterns in buyer activity, the decline of major department stores and the performance of shopping centre owners as they battle new consumerism. It is worth a look.

http://www.abc.net.au/news/programs/the-business/2017-07-19/falling-out-of-fashion-with-shoppers/8725418

Have Your Say - click here.

Let’s Get Serious Here! - Trading Hours

A trader said this week - “How can we continue with opening/closing times that are completely out of touch with other major markets, and in fact the whole retail industry?”

Camden Market in the U.K. opens 10am to 6pm.

Paddy’s Market in Sydney opens 10am to 6pm.

La Boqueria Market in Barcelona opens 8:00am to 8:30pm.

Pikes Place Market in Seattle opens 9am to 6pm.

Need I go on?

Okay!

Borough Market in London opens 10am to 5pm.

Or Tor Kor Market in Bangkok opens 8:30am to 5pm.

La Merced Market in Mexico City opens 5am to 7pm.

And no, we would not get a guaranteed immediate boost in sales if we traded later.

And yes, there would be frustrating times when we would stand twiddling our thumbs (that's what traders did before mobile phones) while we waited for new uniform hours to lock into customer psyche.

And for all those traders who are waiting for management to fix our problems here is an opportunity to demand that we start addressing consumer expectations at QVM right now.

And while we are at it, let’s throw in an extra Night Market or two so that those traders who want to survive this retail revolution can enthusiastically tackle new opportunities.

Now let's be honest there is not exactly universal Trader acceptance to this idea of changing trading hours. Logic says “Yes” while operating reality puts some barriers in the way. But there is a way of introducing extended hours without demanding total trader engagement

Let's start with the new pavilion. The New Market Pavilion on Queen St. could operate 10am to 6pm and do a Thursday night market (we understand that management are considering this). You could even consider Wednesday trading as a lead in to the Night Market. In fact you could quickly extend the format to accomodate other traders keen to move on from QVM’s archaic trading hours. You could create a precinct of 10am - 6pm traders. We seem obsessed with every trader trading at the same time when in fact it is all about meeting customer needs across a spread of hours. There are other major world markets that work in shifts just so customers have some sort of offer whenever they want to buy.

There is a lot to consider here, but let's not waste too much time. We are probably the last major world market that has not adjusted to consumer shopping trends.

Have Your Say - click here.
COMMENTS:
03/09/2017 16:22:18 XTRA HOURS "Can we take the opening hours issue to a stallholder vote...
please lets not compare European cities to Melbourne..
thks Greg"
Yes. We don't want measures like this to create more stress for traders which is why a trial makes so much sense. Traders who don't want change should not be forced into change. But equally those who are itching to get out there and embrace change need opportunities. Surely we are flexible enough to accommodate both. Thanks for your comment.  - Ed.

A Free Way To Get Your Stall On Google

The QVM Marketing Department has compiled a simple instruction manual to assist traders promote their business on Google for free.

When a customer pulls out their phone in Melbourne and looks for your category of goods, you want your business to show up in the results and point customers directly to you.

The manual was sent to all traders via email this week and you will find the marketing staff ready, willing, and able to assist you if necessary. Any questions, please email marketing@qvm.com.au

Have Your Say - click here.

Heard Under The Sheds – 3/9/2017

Night Market Impacting On Day Market – A common theme from many traders this week is that Thursday day trade has been killed by the night market. The philosophy is that tourists who visit the night market won’t visit on Thursdays. Other traders are questioning whether there is a direct link or are we just identifying a general downturn in day trade.

September Doldrums – one trader point out that September is normally one of his worst trading months of the year even though there is plenty of tourist activity around football finals. A sales survey done by traders a few years ago confirmed that February and September were the quietest months of the year in the top end.

Empty E Shed - traders thought that the North side of E Shed between the top walkway and Peel St. had been purposely cleared on Friday, but no, it was just an unfortunate coincidence that all traders took the day off.

A Trader wrote to Victraders recently complaining about the confusing state of rent accounts and apparent over-charging on his account. His Category Manager was alerted and the matter cleared up to the Trader’s satisfaction but he points out that a lot of the frustration around rent accounts would be overcome if they were like utility accounts – in other words issued after the commercial activity had occurred instead of before. We do have a lot of confusing elements in our accounts – casual trading, leave, box hire penalties and so on.

Indisputable Proof That Traders Are Doing It Tough – this trader took time out to darn his own socks during trading on Friday. There are a number of important implications to this – We hope he didn’t remove his sock in front of customers – he definitely needs sewing lessons – we are a traditional market and perhaps it is time that Jeff, Bruce, and our other sock sellers introduced a repair service.

Learning From Football – a trader has suggested that the Collingwood Football Clubs response to future development might have application in the retail industry - "Buckley's reappointment… comes after a 'forensic' review that concluded that sacking the coach would be an exercise in scapegoating. “...the easiest decision in the last couple of days would have been to sack the coach, the hard decision is to look within and work within and work through as a whole club.” "Change doesn't necessarily mean sack this person sack that person, it could be and it will be, different structuring, resource an area better that we haven't resourced before…”

Planning Permit – news has come through that the C245 Planning application has been gazetted allowing progress on the Munro’s site and the conversion of the current QVM car park to public open space.

Trader Dispute - a minor altercation occurred this week when one trader placed his boxes in the aisle and effectively blocked customer movement. It was after closing time but our complainant still had a crowd at his stall. Keeping storage boxes on your side of the aisle and allowing customer movement for others would seem to be the neighbourly thing to do.

Have Your Say - click here.

Latest Retail News – 3/9/2017

Latest Retail News – 3/9/2017

SHORT BITS:
1. Topshop UK parent company rallies to support Australian arm.
2. Toys’R’Us to open 4 new stores in Australia.
3. Tiffany & Co boosts second quarter results.
4. H&M launches new Arket brand in London and online, catering for fashion and home goods.
5. Specialty Fashion Groups older brands (Rivers, Millers, Katies) drag on performance.
6. Billabong hopes to recover from massive loss.
7. Luxury jewellery retailer, Secrets, opens flagship store at Brisbane’s Chermside centre.
8. Dominos trialling self driving cars for pizza delivery.
9. Myer links with Amazon to offer Kindle electronic products.
10. Harvey Norman reports 29% jump in profits with pleasing overseas results.
11. Tommy Hilfiger opens new store at Westfield Parramatta.

LONGER BITS:
Coles And Uber – are reported to be trialling a home delivery service in Melbourne to supplement Coles fleet of home delivery trucks. Gaining economies in the “last mile” of customer delivery is proving to be an issue for retailers worldwide.

Zara’s Secret – an article on Forbes.com points out that clothing retailer, Zara, presents new product ranges 26 times per year. The anticipation by customers that there is always something new, and they need to get in before things change, is creating the long checkout queues at this retailer.

Another Struggling Retail Group - Millers, Katies and Rivers owner Specialty Fashion has almost quadrupled its full-year loss to $8.39 million, from last year's $2.19 million, amid subdued consumer spending.

Tourism Booms – retailing might be struggling but the influx of tourists to Australia was up 9.1% in the year to June 2017 with visitors from China showing the strongest growth. See the full analysis here - https://www.austrade.gov.au/news/economic-analysis/tourism-success-inbound-tourist-number-exceeded-8-5-million-in-2016-17-and-expenditure-reached-a-40-billion

Westfield Expands Its Retail Mix – Westfield have introduced over 100 new retailers to their shopping centres with an emphasis on smaller neighbourhood type operations mainly in food, dining and beverage categories. As department stores lose their footprint, the gap in leasing space is being filled with food and entertainment. High quality food in a grab-and-go format, often at restaurant prices, is becoming a trend for major centres.

Have Your Say -click here.

An Unusual Request

The audio in this video is in Italian but you won't need a translation. You simply need to know that the customer asks for a receipt.


Have Your Say - click here.

QVM In The News - 3/9/2017

NEWS
	Thanks, but no thanks – Doyle CDB News (registration) Lord Mayor Robert Doyle has politely told opponents of the council's Queen Victoria Market (QVM) redevelopment that he won't be taking on their ... Compromise on QVM - CDB News (registration)

NEWS
	Melbourne council to consider ideas such as microbrewery or bakery for Queen Victoria Market ... Herald Sun “More than 10 million people visit Queen Victoria Market every year, so this is an unprecedented opportunity for specialists in fresh food production, ... Flag as irrelevant
	Welcome to My Place . . . Melbourne Irish Times Visit the city markets. Queen Victoria Market (no, it's not named after the Eastenders watering hole but rather as it's on the corner of Queen and Victoria ...

NEWS
	Underspending on works and staff blowout Docklands News Queen Victoria Market renewal program: only $3.7 million of the $9.2 million budget was spent in the first nine months. Final underspend $4 million.

A Brewery For QVM?

QVM’s brand new pavilion on Queen St. could house a micro brewery according to Deputy Lord Mayor Aaron Wood.

The City is looking for expressions of interest for the greenhouse area on the top of the pavilion which is expected to begin construction in October.

“From gardens filled with heirloom fruit, vegetables and indigenous plants to a microbrewery, bakery and cooking displays, the sky’s the limit for what could be achieved in this exciting new rooftop area.”- said the Deputy lord mayor.

“More than 10 million people visit Queen Victoria Market every year, so this is an unprecedented opportunity for specialists in fresh food production, education, hospitality, sustainability and technology to fit out and operate a coveted space,” he said.

Expressions of interest for the pavilion greenhouse opened this week and close at 11am on October 9. Details: http://www.melbourne.vic.gov.au/building-and-development/urban-planning/local-area-planning/queen-victoria-market-precinct-renewal-plan/Pages/new-market-eoi.aspx

Have Your Say – click here.

Another Great QVM Aussie Made Video

Trader Chien Nguyen from Jumbo Ugg features in this week's Champions of Aussie Made video. Chien's passion for the market and his product shines through in this video - another very worthy story to enhance our market's Aussie Made credentials. Simply click on the photo to be taken to the Facebook link.

Have Your Say - click here.

National Trust Gives Thumbs Up To QVM Renewal

According to an article in the Herald Sun today The National Trust has changed its view on the Queen Victoria Market Renewal proposal.

Having expressed concerns about heritage issues and the Munro site development, the Trust now says it is satisfied the the renewal process is necessary to ensure the long term security of the market.

The Council’s decision to reduce the scale of excavation and the market’s business and retail plans were apparently instrumental in the Trust’s change of heart. The Trust said it expects the open character of the market sheds to be retained.

Have YourSay – click here.

Yeah, Yeah...I've Heard All That Before

A time of extreme change in retailing means that some trends will develop and some won’t. The difficulty in this retail revolution is finding out what will stick for future generations and what will not be part of that future. But one thing is definately going to be a key component and of course I am talking about online engagement.

Now before you say “Yeah, Yeah – I’ve heard all that before”, let me explain why I think that things have recently changed. I know there are still retailers who say the big boys are spending far too much money on this omnichannel marketing (provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store.) And the doubters point out that online retail sales still only represent 10% of total retail sales.

But we can’t tell that to the Amazon’s, Walmarts, and Macy’s of this world. Amazon are continuing their immense rollout of online retailing and of course are coming to Australia. Walmart are investing heavily in direct to consumer sales, particularly in food, and have just reported a 60% increase in online sales.

Macys have just appointed a new President who was previously a Senior Vice-President with Ebay. His appointment has been described as "arguably one of the most interesting outside additions to the entire department store space, let alone Macy's, over the past decade.''

How far are these big players reacting to consumers and how far are they setting the ground rules for future retail activity? Henry Ford and Steve Jobs famously ignored what their customers asked for and gave them something better. The big boys of retailing are quite possibly doing the same.

And for those QVM Market Traders who have not yet stepped online, maybe the email sent to every trader by the QVM Marketing Department this week about how to establish a Google Business Listing, is a good first step. Check your inbox. It is worth a read and may be "arguably one of the most important steps for traders over the past decade."

Have Your Say – click here.

Just When You Thought You Had Heard Everything In Retail

Luxury shoe brand Sneakerboy has been welcomed into Chadstone Shopping Centre’s luxury retailing zone because “In its DNA Sneakerboy is a disruptor, and disruption brings theatre and excitement for our customers.”

And just to prove that point Sneakerboy has introduced a new section in its store dedicated to customers selling their sneakers to each other. Sneakers have a huge cult following with a significant secondary market in pre-owned footwear, particularly high end brands with sales being conducted through eBay and social media sites.

Sneakerboy say they would rather that selling activity happened in their stores than online and so they will moderate a special instore location just for customer to customer sales.

Have Your Say – click here.

Council Says Leave H&I For Fresh Produce

Tuesday night’s City of Melbourne Council Meeting considered a number of issues relating to QVM and essentially endorsed the new proposal for underground facilities at the top end of the market and the establishment of a Trader Support Program.

The meeting considered a Statement of Expectations which sets the ground rules for what CoM expects from its subsidiary company, Queen Victoria Market Pty.Ltd. 

Two changes were made to wording in the original agenda items with the word “expand” being added to a statement about the Market’s role – “Recognise, protect and expand the Market’s original and primary role as a fresh food market”.

And those concerned about the transformation of H&I Sheds to an eating area will be pleased with this resolution from Council – “Requests the Chief Executive Officer to communicate to the board of Queen Victoria Market Pty Ltd Council’s explicit view that sheds H and I should remain predominantly for the purpose of fresh produce trading.”

Have Your Say – click here.

Engaging Traders - 28/8/2017

In this very competitive retail world we market traders have a distinct advantage. Direct personal engagement with our customers is our difference. We may dabble in online and mobile service as part of what we offer but for customers seeking direct personal contact with knowledgeable retailers, QVM is the place to come.
This photo is yet another example of a trader engaging with their customer(s) and ensuring a rich shopping experience.

Have Your Say - click here.

COMMENTS:
28/08/2017 19:07:37 market experience "Agree, a smilie face, and a will to help is all that is needed. Look at Bruce's face, says it all."