News
continued from page 1
continued to use Royal Mail for its standard with arthritis, diabetes, and other medical
delivery, which is normally delivered in conditions, skews toward the oldest of
7-10 days. As of late October, there were no the grey market. Foot Shop encouraged
complaints from customers, says founder and customers, via its websites and emails, to
managing director Alison Quill. She notes order by phone or web for the speediest
that more customers paid to upgrade for 48- service. As an added complication, “we also
hour and next-day courier delivery, though. offer many products where customers are
eligible for VAT relief if they return a signed
Circulation uncertainty declaration that they have a severe medical
Quill sent the latest edition of the condition; Customs and Excise won’t allow
BrightMinds catalogue using Royal Mail telephone declarations,” Beech says.
Mailsort 3 the evening of 26th October, and At Woods of Morecambe, “business has
the company received its fi rst order from the been down considerably” since early October,
mailing three days later, she says. “So midway says Race. “Once the elderly customers we deal
between two strikes [23rd October and 29th with hear the words ‘post strike’ the orders
October], Mailsort was performing as well as Robin Beech of Foot Shop start to dry up. Really it’s the perception
I have known it to—three days to fi rst drop.” of the order not getting to us or the parcel
Even so, Quill plans to send later mailings not getting to them. In reality delivery times
of the BrightMinds catalogue via TNT. The haven’t been that affected so far.”
company uses DHL to deliver catalogues of A survey by the Interactive Media in Retail
BrightMinds’ sister brand, T-shirt merchant Group (IMRG) indicates that two-thirds
Rosie Nieper, and “I have been really of online marketers suffered a decline in
impressed by DHL and TNT,” Quill says. revenue since the CWU strikes began last
“The service of speed, controlled nature, month, with sales falling an average of 30
and price means we probably will move all percent. At Flowercard, a direct seller of
mailings away from Royal Mail next year.” fl oral greetings, the revenue decline hasn’t
Nauticalia already switched most of its been as drastic, though sales for the fi nal
catalogue mailings from Royal Mail to TNT two weeks of October were 20 percent below
to avoid deliveries being delayed due to the forecast, according to owner (and Catalogue
backlog of volume. According to Royal Mail, Exchange board member) Graham Winn.
as of 30th October an estimated 35 million Because the company sells live fl owers,
pieces were still waiting to be delivered. In it switched to an expedited courier and
addition, says Wilby, the company planned to increased delivery charges by £2.95, or 15
distribute 1 million inserts via the weekend
Nauticalia’s Mark Wilby
percent. Even so, Flowercard absorbed half
papers, “to maintain sales and confi dence”. of the additional courier costs. While the
He estimates the cost of this initiative at rate increase contributed to some of the sales
£90,000. decline, says Winn, “lack of confi dence in the
Some cataloguers were reexamining postal system” was also a factor.
their overall circulation strategy for the The lack of confi dence in Royal Mail
holiday season. “The strike action does cause isn’t limited to consumers, of course. Of the
major disruption to our catalogue mailing respondents to the IMRG survey, 60 percent
plans in November and December,” Andy of those who switched carriers because of
McDermott, director of home and garden the strike said that their new arrangements
merchant Coopers of Stortford, said prior to were more effi cient than working with Royal
the 5th November announcement that the Mail, and more than two-thirds of those
CWU had agreed not to strike for at least the merchants were considering not returning to
rest of the year. “Consequently we do have Royal Mail.
a circulation Plan B and Plan C, which we’ll Woods of Morecambe’s Race is one of
implement dependent upon the extent of those. “Having been loyal to Royal Mail, I
the industrial action.” now feel they haven’t looked after me, by not
resolving this dispute, so it’s now a personal
Crisis of confi dence
Nick Race, Woods of Morecambe
issue,” he says. “I have promised myself that
Outgoing parcels and post weren’t the only I will look into having our 250,000-plus
concerns. Customers who pay by cheque annual catalogue mailing in addition to 1,000
were especially hesitant to place an order, packets a week sent by an alternative method
for fear of their payment going astray. “Due in the future. I know the last mile is done by
to the age of our customers we receive many Royal Mail, but some of the savings I can gain
cheque orders,” says Foot Shop’s Beech. will make up some of the money that I feel
His company’s core catalogue, Cosyfeet, the guilty parties are costing me because of
which specialises in footwear for people this dispute.”
8
Catalogue e-business www.catalog-biz.com
ceb175.indd 8 7/11/09 13:09:38
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45