“New ideas”

Expert Eye with

John Shepherd

Owner and Managing Director of Partridges

• Is our café a hero or a villain?
• “The battle for optimism and morale in retail”
• “Sustainable confusion”
• “What to do about January?”
• “Is the Christmas boom sustainable?”

The headline of the Evening Standard on Thursday 10th September 2015 proclaimed the words “Store Wars” in bold type

The article goes on to declare that Lidl is now targeting middle class areas in an attempt to take customers away from Waitrose and upmarket delicatessens by using their very successful low price offer. Undoubtedly yet another worry for the beleaguered local deli, you might think. However, small independent shops have one thing in particular that the multiples may not have – the ability to have knee jerk reactions or perhaps, I should say, to innovate and be flexible quickly.

Over the course of our past I think we have come up with three ideas that have been particularly helpful in providing some distinction between us and the larger retailers, which the multiples may struggle to copy.

The first idea occurred in the 1990s, when we launched a pensioner discount scheme of 10%. This was relatively easy to control because pensioners usually have a ready means of identification at their disposal and are a distinct demographic. We had to exclude products where the margin could not sustain the 10% discount such as spirits, cigarettes and newsprint and the like, and initially started it on a trial basis just to ensure we did not go out of business in a few weeks.

The second idea has been the food market that we run outside our shop on the Duke of York Square every Saturday and which is due to celebrate its tenth anniversary on 24th October this year. It is true that large spaces outside shops are somewhat rare luxuries, and it is also true to say that the market was not an overnight success. However, from a small start of about 15 stalls the market has grown over the years to 70 stalls. So what are the advantages that it brings? Increased footfall to the front of the shop with a greater feeling of community. The opportunity to work with local producers who it would not be possible to offer space to in the shop and to see how new products are received by the public. Increased sales in the café and wine bar and the ability to ensure that the market operates on a cost neutral basis. What are the disadvantages? Competition between products outside at the market and products within the shop that in the short term at least will reduce sales in certain areas even though just for one day a week. Management of the rough and tumble of the market which involves supervising all health and safety aspects, maintaining scrupulous records and applying discipline to traders who may not share the same values.

The third idea has been our Startisans initiative. Like most if not all delis and food shops, we are inundated by suppliers on a regular basis urgently looking for shops to sell their products, so we offer them a low cost pitch to sell their own products. The benefits are that we are able to help start up businesses and obtain a great source of new and exciting products with the minimum amount of paperwork. Whether the space offered is a shelf, a counter or even a shop like the one we opened in Covent Garden last year, the Startisans themselves provide energy, great selling skills and very interesting products to complement the core range that our shop is already selling.

These three ideas (and of course many others like them that are out there) will never be the sole difference between success and failure. That depends on doing the basics properly – pricing, service and merchandising – and that is a challenge that we all face everyday. However, to us they have been a good help over the years.