FSP Retail Blog

Clas Ohlson - Watford Store Opening

Posted At : 11 December 2009 10:58

I’ll be honest with you, when I joked that I could take Technical Director Ken Gunn’s place at the Clas Ohlson store opening in Watford, I didn’t actually think that might happen. Ken has worked closely with Clas Ohlson on their UK expansion strategy, and as such attends as many store openings as possible. Today, however, he was required elsewhere, so along I went to see what all the fuss was about…and here is my first official FSP store review! Enjoy!

The Watford store is the 5th in the UK for the Swedish household accessories/ electricals/DIY retailer Clas Ohlson, and its 116th worldwide. It is located in a former Zavvi store in the Harlequin Shopping Centre – the main shopping destination in the town – and presents a slightly different layout to its other UK locations, which fill vacant Woolworths units and as such have a larger, more open feel than this one. That’s not to be taken as a negative, though; many of you will remember the multi-level layout that most Virgin Megastores – and therefore Zavvi stores - used to have. I think it’s fair to say this format typically utilised larger first/second floor selling areas and mezzanines to create a more accessible, less overwhelming trading space, which works well in shopping centres and for Clas. Had the former Woolworths store on Watford High Street been available of course, perhaps Clas would’ve stuck with the formulae – as it is, Watford Borough Council bought the store in June of this year in relation to the redevelopment of Charter Place, which is adjacent to the old store. The result of this deviation from the norm makes for an interesting visit…

 

Slideshow - Clas - Picture 1 of 15


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The ground floor level of the store was reserved primarily for seasonal products – both gifts and decorations – with the majority of stock located upstairs in the large first and mezzanine levels, accessible via stairs, lifts and escalators. A clear store layout with ample signage means that particular products are easily located, though the beauty of the store is the opportunity it provides to get lost! Think Ikea marketplace, only tidier with better merchandising and no feeling that you must follow the crowd around a pre-determined route! And probably with less arguments, since there truly is something for everyone at Clas; if we’re going to be stereotypical, there’s homewares for the girls, hardware for the boys and multimedia for the kids. Enough to keep you happy for a good few hours. It was multimedia that drew the crowds this morning, with a particular offer on a portable DVD player the main attraction. Apparently there were 400+ hopefuls queuing around the organised barriers system waiting to get in when the store opened to the public to a great fanfare (literally. There was horn blowing) and those of us already in the store made sure to make scarce once the hordes began pouring in!

A special mention also has to be given to the style of opening ceremony that Clas Ohlson adhere to. The traditional Swedish ribbon cutting ceremony itself provides great entertainment for guests, but the best part about the whole thing is the honours that are dished out and the passion with which the management speak. I know most feel obliged to attend such things, but both Klas Balkow (CEO) and Mark Gregory (UK Managing Director) conveyed a genuine sense of achievement and thanks during their speeches, and it was great to see individual members of staff mentioned by both. It must provide a great sense of inclusion to those involved in the projects, and that in turn is great motivation for the staff – the importance of which is lost on many retailers of today. And of course, showmanship and hype for the customers is never a bad thing.

So in short, I like Clas Ohlson – and not just because I have to! It has a warm, welcoming feel – important for a girl in a DIY shop (and a stark contrast to my visits to Robert Dyas), the pricing is just right and the wide variety of merchandise actually isn’t a negative as it can be for some. Hopefully the UK will welcome this unique concept with open arms, and some sense of variety can be injected back into the high street.

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What's in a name?

Posted At : 02 December 2009 14:08

We at FSP endeavour to identify the registered company behind all the lovely retailers we feature on SnapShop (our online retail intelligence service).  Piece of cake you might think.  One fascia, one retailer, one name, one company.  If only!!

Firstly, there are the groups.  Does a fascia have its own registered company or not?  Even within the groups they can’t seem to decide!  Topshop, the flagship fascia in the Arcadia Group, does not, Wallis – same group, different fascia – does.  Want to know how Wallis is trading – easy, we can see the accounts.  Same for Topshop?  Not likely! 

Then there are the takeovers (in my opinion these should be banned for the simple purpose of making my life easier!).  Gadget Shop now belongs to The Entertainer, D&A to Boots, MK One has a chequered history having been owned by everyone (Philip Green, Baugur, Hilco, Internacionale) and Perfect Pizza and Papa John’s have an intricately involved history.

But if you’re stuck for a name, there’s always Hamsard.  Over one hundred current or recently dissolved Hamsard companies are registered with Companies House.  Style Menswear did belong to Hamsard 3032.  Neither now seem particularly functional, with all the Style trade now through Envy, but my life would surely have been a whole lot easier if Mr Kinnaird had called his company something a little more meaningful!

Registered companies with eponymous fascias are few and far between.  A small request for more of those is very high on my Christmas list, but no amount of finger crossing or Christmas pudding stirring is likely to bring that to fruition.  So battle on I will in the struggle to see just who is trading as what.  However, if you’re listening Santa, more in the style of Next Retail please!

P.S. The Next Retail link above will show you what SnapShop has to offer.  To find out more, call FSP on 01494 474740

 

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Don't Panic Captain Mainwaring!

Posted At : 27 July 2009 17:58

There have been several hysteria-inducing reports released in the press over the last few weeks. About certain high streets being at risk of demise, sales feeling the pinch because of swine flu (!!) and discounting reaching dangerous levels. Most of this is old news and the rest hyperbole, so a bit of real perspective should be applied to make sense of it all.

Several industry journals have been quoting a recent report by PricewaterhouseCooper, claiming that 90% of retailers are currently ‘on sale’. While this may be true, it is not enough to simply use this figure as a shock tactic, for in actual fact, the proportion of retailers “on sale” compared to those trading at full price remains mostly unchanged from last year.

Using Global Retail’s Compshop trading stance trend figures, it is clear that although levels are slightly ahead of 2007 and 2008, the number of retailers currently discounting is by no means anymore ‘dangerous’ than in previous years. (See fig 1).  

Moreover, it is clear that retailing plays to seasonal trends, and that although long-term discounting can do more harm than good, it is natural for retailers to clear stock with end of season sales – as traditionally seen throughout July (see fig 2).

Whether heavy discounting will continue unbroken through to 2010 remains to be seen, however there is little to be gained from speculation – especially when past trends suggest the opposite. So let’s wait and see what happens before running to our panic stations; we may be pleasantly surprised.

Fig 1

Fig 2

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Back to Bricks

Posted At : 06 July 2009 13:48

I note today that SockShop is heading back out of the ether with a physical store in Manchester Airport.
 
When Ruia Group bought the SockShop stock (a veritable tongue twister!) in 2006, the intention had always been to start opening stores in convenient locations, such as stations and airports, but it’s taken them three years to get that far. Might the crunch be making it easier to snap up the store location you need?
 
With all sales activity being done online in those three years, one might have thought that SockShop were ahead of the game in the evolution of e-tail. However, with nothing replacing the experience of feeling your purchase, even the hardened efficiency driven shopper likes to get out to the stores occasionally. SockShop management have recognised it’s not just clicks that matter, but a visible presence in bricks too. And what can be more highly visible than a presence in space where so many people pass through?
 
The FSP database which feeds SnapShop (no relation to SockShop!) shows that more than 150 retailers have announced expansion plans of some form so far this year. Demand on the High Street may be rising and remedial work may now commence on the gaping holes left by Woolworths et al!

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Reserve, Collect and Spend a Little More

Posted At : 16 June 2009 11:49

I see David Wild has noted that “Reserve & Collect success drives 90% growth in multi-channel revenue” when announcing the Halfords preliminary results last week.  What he means is that Halfords are making a killing out of people who can’t be bothered to go and look around the shop, or, more likely, are savvy enough to know that time spent in a fruitless search around the shop is time lost from more worthwhile pursuits.  Halfords have tapped into the very sound idea that people can surf for their goods from the comfort of their own home, then pop in to collect when they’re out and about anyway.  This saves on the delivery charge for the customer, but has the benefit that these customers are brought into the store anyway, offering Halfords the opportunity to persuade them to part with more cash whilst they’re there.  Looks like a win:win to me.
 
But, with Verdict announcing that “online spending is growing by £2.4 billion in 2009” and “e-Retail is proving to be a star performer in the recession”, where does this leave the average store and the already much-trampled retail property business?
 
As FSP knows, through extensive research in the retail world, people don’t just shop because they need something.  Those that do, who are driven by efficiency, will be the first to make their shopping event even more efficient by use of the internet and such initiatives as “Reserve & Collect”.  But, what about the others? There are those who are driven by the purchase itself and those who see it as a social event.  With the desire to find something with which they will be really pleased, the purchase driven consumer will still hunt around the shops.  Whilst the leisure driven consumer is unlikely to see web-browsing as adding to their enjoyment.  For them, shopping is a well-crafted hobby, irrespective of the resulting purchase.
 
Whether you’re a retailer, a shopping centre owner or involved in town centre planning, you have to know your catchment and then target your stores or product to reach those who want to get out and shop.

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More Reasons . . .

Posted At : 05 June 2009 14:52

When Morrisons gobbled up Safeway, many of us southerners were a little concerned that the philosophy might not fit down here.  I’m not sure how much the philosophy has changed, and how much we’ve been crunched by the lack of credit and are therefore willing to revise our shopping habits, but Morrisons is one of the few just now who are recording increases in their sales.
 
Our very own retail talking head, Geoff Nicholson, was invited to discuss this with BBC Radio Wales.  As he pointed out, Morrisons, which traditionally focuses on fresh food and low prices, is finding favour with the current back-to-basics, cook at home, watch the pennies spirit.
 
Geoff however, ever savvy to the shifts in retail demand, questioned the long term viability of food only stores.  In Wales, from where those tuned in were listening, there are 20 or so Morrisons stores, very few of which are more than 30,000 sq ft and tend to be located in market towns, not the major centres of population.  This limits the opportunity to offer non-food, which has greater potential and offers better margins.
 
We don’t all want to shop in quasi-aircraft hangars, but we are all getting rather used to having our tea, t-shirts and television all in the same place!  It will be interesting to see which way Morrisons progress, in the meantime, you too can seek out Geoff’s view by reading it regularly in SnapShop Monthly, or contacting him here at FSP

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Many Happy Returns

Posted At : 20 May 2009 11:32

Lots of birthdays going on at the moment – or should I say birth-years - as many retailers seem to be celebrating the fact that they’ve been around for significantly more than the average person (even the cosseted and therefore presumably well-preserved MPs!)

Marks & Spencer are celebrating 125 years, as are Jaeger, whilst Sainsbury’s has clocked up a whopping 140 years!  We at FSP can barely compete; what we had considered a reasonably mature 30 years, seems barely pubescent in comparison!

A look at the FSP database of retail information shows that the three grandfathers of retail mentioned above are not alone.  The award for amazing durability goes to Ede & Ravenscroft, tailors of distinction.  Their timeless offer and niche service offering mean that 320 years on they still have a loyal following and a place in a select market.

The league table of oldest retailers is most definitely dominated by high end exclusivity.  You won’t be surprised to hear that retailers older than 200 years include Fortnum & Mason, Villeroy & Boch, Wedgwood, Hamleys, Mappin & Webb, Asprey and Gieves & Hawkes.

The durability of these retailers is undoubtedly a reflection of their ability to afford investment in customer service, along with providing their superior product.

Using FSP’s price classification, retailers identified with an offering any lower than middle were founded much later, although M&Co did made an appearance in 1834 and DE Shoes, Greenwoods and Peacocks were established in the late 19th century. 

It will be interesting to see who, out of Primark (founded in 1969 with a Value price stance), Next (founded in 1982 with a Middle price stance) or Mulberry (founded in 1974 with a Premium price stance), will still be around in the 22nd century!

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Supermarket Sweep

Posted At : 13 May 2009 11:41

 

 

The normal categorisation of shoppers, their attitudes, behaviours and lifestages, does not easily apply to supermarket shopping. Shopping can be a social activity, a means to an end and at times, just a chore. The weekly shop falls into the last category and the supermarkets have their work cut out persuading us to frequent their premises. If we didn’t really have to eat, we surely wouldn’t bother trudging round aisles of food?
 
Having got our attention through lack of an alternative (even MPs with their £400 food allowance have to buy their food somewhere!), they then have to pitch themselves to get the best market share possible. Value for money is undoubtedly much higher profile now than only a short while ago, but, although ASDA and Aldi have lifted their market share recently, it’s barely dented the superiority of Tesco. We already know that more money is spent in Tesco than anywhere else in the country (personally, I take the view that they get enough of everybody else’s money, so don’t get mine). In my town, that leaves my two favourites: Morrisons and Sainsbury’s. 
 
Morrisons has a fantastic, reasonably priced offer, but Sainsbury’s, with an announcement today of everything being on the up, has service AND a smile.
 
I’m not sure what kind of customer service training programme Sainsbury’s implements, but it works.  The staff are always friendly, they always smile and they manage the art so well practised by the Queen, they actually seem interested in you!
 
I am, of course, basing my view on a very unrepresentative sample of one – my local store in High Wycombe - but as these staff are putting up with difficult circumstances by trading out of a “tent” with limited offer, I would say either the High Wycombe staff are particularly good at customer rapport, or they are representative of Sainsbury’s staff everywhere.
 
The Sainsbury’s tent is a stop gap whilst the new, shiny and, at 55,000 sqft, truly huge*, store is built.  The staff will deserve their new working environment and I shall be visiting them there.
*Telegraph readers note appropriate use of the word – according to SnapShop, an average Sainsbury’s store is only 40,000 sqft of selling space.
 

 

 

 

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FSP's Hot 100

Posted At : 24 February 2009 17:20

Last month, in SnapShop Monthly, I talked about those retailers whose financial health was Very Worrying, leading to whole centres being At Risk.  With a wealth of retailer information at our fingertips, much of it available to SnapShop Members, we have now looked at the converse and produced FSP's list of Hot 100 retailers. 

FSP has identified over 100 retailers in the UK across all merchandise categories that are profitable and expanding.  These are the companies best positioned to benefit from the opportunities created by the current economic conditions. 

The criteria for inclusion in the list are:

• Accounts available from Companies House for years ending in 2007 or 2008
• Annual sales of at least £2 million
• Annual operating profit of a minimum of £1 million
• Wealth Creation Index, as specified by DIUS, of 130 or more.  The index is the ratio between the value added and the cost of creating the value (employment costs and depreciation)
• Return on Trading Assets (ROTA) more than 25%.  This is the return on investment in an additional outlet, assuming no addition to central costs
• Tenor of press articles about the retailer over last 12 months supplemented by FSP market intelligence

It would be a mistake to assume from recent wide publicity about the expansion of fast food restaurants, that they represent the greatest expansion opportunity.  Within the FSP Hot 100, catering accounts for only 10% of the list.  The largest group, around a quarter, are in clothing and footwear but all merchandise categories are included.

The current challenge for asset managers is to know which retailers to support.  The Hot 100 makes a good starting point. 

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Retailer Classifications

Posted At : 13 October 2008 16:09

How do you know if a retailer is going to fit into your shopping centre? Is it going to bring in the type of shopper you want? Will it fit in with your other tenants? FSP has been working to improve its retailer classification in order to answer just these type of questions. We know retailers, and the increased number of categories we now use to define their price position and their predominant customer group means that we can easily identify the right retailers for you. This can be further enhanced when added to the powerful tools we use to classify shopper populations, to ensure a match between the potential customers in your high street and the shops they most want to visit. Contact us to find out more about our research methodology, and have a look at our online database SnapShop to get a view of the type of classifications we use.

 

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