David and Goliath?
Detail:
It got me thinking. American pet store chain giant PetSmart (more than 1,000 stores) recently posted positive results, and is expected to grow strongly this year. German giant Fressnapf (over 1,000 stores in 12 countries) continues its expansion plans, and the UK’s Pets at Home, as we all know, has more than 250 stores and also continues to open new stores nationwide.
I have nothing against growth and expansion, but I also feel that a market that is dominated by a few players is very bad for the economy as a whole. Look at the stranglehold Tesco has over virtually everything it deals with, such that it can dictate its own terms to suppliers. Rumours suggest that those who object are left out in the cold.
What makes the UK pet industry scene unique is the large pool of independents. But the fact is that our independents are at risk in exactly the same way that other High Street shops are being slowly wiped from the retail scene in our country.
Now it is all well and good urging local communities to support local shops. But how do you get and build a loyal customer base? Forget price point; that’s an obvious non-starter.
Customer service? Yes, this is obviously a big factor, but unfortunately, when it comes down to the hard bottom line, isn’t excellent customer service a given? Especially when competing against supermarkets and big chains? I remember once receiving really bad service in the Peterborough Toys R Us – and my letter of complaint to the store manager went unanswered. Needless to say, I have never stepped inside any Toys R Us since.
To my mind, a strong draw for customers is an interesting and varied product range. In one word, differentiation. And this differentiation, I think, is key.
Retailers have to be clued up as to what is new out there, and what could sell well in their locality and for their customer profile. There are so many products out there, yet many of them are not stocked in the big wholesalers, and smaller manufacturers cannot afford a huge sales rep team. Which means trade publications like pbwnews make essential reading, and it is also equally important that retailers budget accordingly to visit at least one trade show each year.
This year is a bumper year for trade shows, what with two PATS shows, Glee Petindex, Interzoo and Aqua 2010. Which ones, and how many, have you committed yourself to visiting? And how much value do you place on displaying new products in-store?
To the small family-run independent that has a Pets at Home opening close by and a Tesco on the retail park, it can seem a losing battle. But remember, David killed Goliath with a well-aimed throw of a small stone. Could the products you stock be that small stone?
I have nothing against growth and expansion, but I also feel that a market that is dominated by a few players is very bad for the economy as a whole. Look at the stranglehold Tesco has over virtually everything it deals with, such that it can dictate its own terms to suppliers. Rumours suggest that those who object are left out in the cold.
What makes the UK pet industry scene unique is the large pool of independents. But the fact is that our independents are at risk in exactly the same way that other High Street shops are being slowly wiped from the retail scene in our country.
Now it is all well and good urging local communities to support local shops. But how do you get and build a loyal customer base? Forget price point; that’s an obvious non-starter.
Customer service? Yes, this is obviously a big factor, but unfortunately, when it comes down to the hard bottom line, isn’t excellent customer service a given? Especially when competing against supermarkets and big chains? I remember once receiving really bad service in the Peterborough Toys R Us – and my letter of complaint to the store manager went unanswered. Needless to say, I have never stepped inside any Toys R Us since.
To my mind, a strong draw for customers is an interesting and varied product range. In one word, differentiation. And this differentiation, I think, is key.
Retailers have to be clued up as to what is new out there, and what could sell well in their locality and for their customer profile. There are so many products out there, yet many of them are not stocked in the big wholesalers, and smaller manufacturers cannot afford a huge sales rep team. Which means trade publications like pbwnews make essential reading, and it is also equally important that retailers budget accordingly to visit at least one trade show each year.
This year is a bumper year for trade shows, what with two PATS shows, Glee Petindex, Interzoo and Aqua 2010. Which ones, and how many, have you committed yourself to visiting? And how much value do you place on displaying new products in-store?
To the small family-run independent that has a Pets at Home opening close by and a Tesco on the retail park, it can seem a losing battle. But remember, David killed Goliath with a well-aimed throw of a small stone. Could the products you stock be that small stone?
By:
sandra
Date/time :
04/03/2010
Replies to this topic...
By:
newshound
Date/time :
17/03/2010 14:57:12
Detail:
Having the right products is one thing. Stock what the customer wants at a price that gives you a working margin.
What makes the indepent retailer different is the interaction between staff and customers. Every potential customer is greeted with good morning/ afternoon . We know many of them by name and we certaintly know their pets names. And we bend over backwards to offer a level of service that no multiple retailer can ever offer.
no , we cannot always compete on price, but then price is not always the customers top priority.
What makes the indepent retailer different is the interaction between staff and customers. Every potential customer is greeted with good morning/ afternoon . We know many of them by name and we certaintly know their pets names. And we bend over backwards to offer a level of service that no multiple retailer can ever offer.
no , we cannot always compete on price, but then price is not always the customers top priority.
