Retail Logic
Inside Terry Harvey’s From The Heart store in Locksheath
With empty units on the high street,
could now be the time to go for a
second store? Maybe not argues
Terry Harvey.
The power e power ooff onone
he economic climate may you and all the energy and enthusiasm in the never leave you but eventually you can afford
T
be a little gloomier than in world will not overcome this. You immediately for someone to translate your outbursts of
recent years but this may become reliant on others, which usually costs tourettes into perfect management speak and
be the opportunity you have some of your hard earned cash, and whether you can spend your time in the offi ce doing
been waiting for to open that you like it or not, your stores will not be quite admin and looking for the next winning site.
second shop. as good as when you were present all the Essentially, unless you have a willing
The High Streets are time. partner prepared to run number two without
littered with empty properties and there is Perhaps I was a slow learner but I a fi xation on minimum wage and 5.6 weeks
much talk of deals involving long rent-free continued to fi ght the laws of physics by trying of holiday entitlement, that fi rst small step can
periods, reverse premiums and even ‘see how to be in two places at once in an effort to run be like stepping onto a conveyor belt towards
you get on and pay what you can’ deals. two perfect stores. In the process I created a more stores.
Coupled with the changes in the legislation Bermuda Triangle between my home and the I believe people shape their business
for business rates many landlords are keen to two shops in which many hours disappeared around themselves and certainly for me I enjoy
avoid paying the charges on vacant properties each day as I travelled back and forth. I also constructing stores and running companies
so, why not dive in? After all it’s simple, you’ve noticed my management style changed from but this is a different job to the one I started
already done it once.
If you have
near ‘text book’, where criticism was always with at the sharp end of retail.
You’re a reasonable retailer, you know sandwiched between lashings of praise, to If you enjoy being ‘front of house’, meeting
your ‘Arthouse’ from your ‘Quiney’ and you’ve
been running
a Ramsay-style rant as I attempted to keep with your public and running a perfect and
already got your business bank account, your
your shop for
the plates spinning behind me. Fortunately, profi table store then ‘shop monogamy’ is for
VAT account, your PAYE set up and your my lovely ladies in the stores were very you.
suppliers so, what’s holding you back?
a while, you’re
understanding.
Well, it’s probably just good sense and
enjoying it
The arrival of shop number two should * Do you agree, disagree? Send your views to
foresight keeping you at the magic ‘one’. bring with it some economies of scale too, us at: greetings@lemapublishing.co.uk
The so called ‘go-getters’ and ‘let’s take and you are but it doesn’t. Having lost your small business
over the world’ types do not need me as their
making a
rates relief because your aggregate exceeds
advocate for nothing will stand in their way, but the threshold and also paying a bit extra in
let me make an argument from the other side living there staffi ng costs, plus you hope to make this
of the fence in favour of ‘shop monogamy’.
Contrary to what you have just read, the
are a lot of
up in other areas. Surely two shops should
see you sat around the board table with
jump from one shop to two is not simple and
good reasons
UKG’s fi nest discussing your latest discount
is often harder than the jump from two to
three, three to four and so on. If you have been
to stay put.
package? Not quite.
So, you’ve just doubled your turnover,
running your shop for a while, you’re enjoying
If you don’t
doubled your workload and also managed to
it and you are making a living there are a multiply your overheads by two and a bit. Nice
lot of good reasons to stay put. If you don’t
believe me
work! However, there is something great about
believe me ask Mr Al Fayed at his only store in
ask Mr Al
store number two - store number three is just
Knightsbridge. a step away!
Don’t misunderstand me, it’s not the
Fayed at his
All of the downsides of this fi rst step start
diffi culties associated with raising the cash,
only store in
to diminish with each subsequent step. You
fi nding the right location or getting the grip of fi nally accept that reliance on good people
a new store that is the problem - it’s tearing Knightsbridge. is essential and you accept that maybe the
yourself away from your pride and joy to stores won’t be quite as sharp as when you
nurture the new one. As soon as shop number were running them but write this off as a small
two is conceived the physical impossibility of percentage loss.
not being able to be in two places at once hits The Ramsay style of management may
18 Greetings Today
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