Everyone knows life is tough. The point is, what do you do about it? Understandably, as more administrations loom and profitability is jeopardised, there has been much emphasis on cost-cutting, efficiencies and the like. But, in this climate, it is more important than ever to focus on what retail is all about – selling, and selling better.
The benefits of effective selling are evident at Furniture Village, which has just had a record year. Well-trained staff, confident in their skills and product, were able to resist the temptation to panic and discount. The retailer is relatively small, but its approach has wide relevance. That’s not to say this year will be an easy ride – far from it – but Furniture Village is in a stronger position than many of its rivals to weather the trading storm.
Better selling will also play a pivotal part in the revival of Kingfisher over the next few years. On Wednesday, it reported a big improvement in B&Q’s gross margin, half of which was due to lower markdowns, while improvements to shops should deliver better sales densities and top-line growth.
As the sector hunkers down for another 18 months of hardship, the cold trading climate could become an excuse for every ill. But, as those who have retailed through downturns in the past know, adversity can bring opportunity. Retailers that respond to tough times by improving how they sell will be best placed to survive the trough and emerge on a wave.
Saint Laurent’s legacy
He wasn’t a shopkeeper, but Yves Saint Laurent, the legendary fashion designer who died last weekend, helped change the face of the retail industry. His innovations, such as the democratisation of design and pioneering use of black models, both led and reflected changes in society.
That spirit of imagination, enterprise and engagement, exemplified in fantastic product, was mirrored in the wider retail world and can be seen today in stores worldwide. It’s also what makes retail and fashion fun and can help bring success, even in hard times.
George MacDonald is deputy editor of Retail Week
Read George’s The Retail Week column today at retail-week.com
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