question time

uestiontime

A number of new businesses have launched since Woolworth’s de- mise, hoping to continue to legacy of a variety store. Allworth’s and Welllworths have both set up opera- tions, with a number of the stores trading from ex-Woolworths premises and em- ploying previous Woolworths em- ployees. Whilst we were sad to see Woolworths crum- ble, can the model of a variety store still succeed in today’s economy and society?

TIM OGLE

CEO RETAIL EYES

There is still demand for the vari- ety store and there are many who avoided the fate of Woolworths and have remained successful de- spite the recession; Poundland, Matalan and TK Maxx are a few that spring to mind. The chal- lenges that supermarkets pose with their buying power mean that variety stores will have to do more than just offer exciting products at affordable prices to succeed in today’s economy. They

Aladdin’s cave with the extensive range of products available. For va- riety stores to establish their place back on the high streets and shop- ping centres across the UK, it will be vital that they have well trained, knowledgeable staff who under- stand what their customers are looking for, and be able to offer practical advice and solutions, which is often a key USP for variety retailers as well as a driver for cus- tomers to return and recommend. Customers can be a fickle bunch at times and listening to your cus- tomers will be the key to whether the business is a success. The high

“The front line customer-facing staff members play one of the most important roles in any business, and for variety retailers it is even greater. It will be vital that they have well trained, knowledgeable staff who understand what their customers are looking for.”

will have to look at other ways of differentiating and competing. But this challenge is far from in- surmountable and the stores that will stand out from the crowd will be those with a strong emphasis on their customers having a great shopping experience. It’s great to see the likes of Al- worths and Wellworths rising from the ashes of Woolworths. These stores will do well because their owners and staff have pride in providing what they see to be a service to the local community, and have a closer connection to their customers than you often see in large nationwide chains. And therein lays the answer: the con- nection and way the staff members interact with their customers makes the business a success. The front line customer-facing

staff members play one of the most important roles in any busi- ness, and for variety retailers it is even greater. Going into some vari- ety stores can often be akin to an

8 Department Store Buyer

street will always be one of the most competitive arenas to operate in, and continually measuring, managing and improving your customers’ expe- rience in store will help give the strategic edge over competitors.

GRAHAM HOYLE

MANAGING PARTNER OF RPI

No, is the simplistic answer. The variety store format operated by Woolworths was, and is, an out- moded redundant way of retailing a range of goods commonly found cheaper, better and more accessi- ble in a whole host of superior retailers around the UK. At the absolute value end Wilkinson, Poundland, and a number of su- permarkets more than cater for those wanting anything from Easter Eggs, light bulbs, sewing kits or toys. At the more discerning end, John Lewis does it so much better as well.

This month’s question: Is there still a market for variety retail?

However, it could be argued that in some towns with lower competi- tion there is room for a variety store of sorts. There are towns around the UK in which Woolworths was the equivalent of an anchor store: the major retailer. For the shoppers of those towns a variety store fulfilled many of their shopping needs. That was probably why Woolworths hung on for so long.

I asked a random selection of consumers if the demise of Wool- worths had affected them in any way. For most it was more of an emotional loss, with memories of childhood visits; the majority had not been into a Woolworths during the last two years of its life. Most of these consumers said that they now see Wilkinson as the 21st cen- tury variety store format. Wilkinson is a great example of a business that has responded to changing consumer needs, as one of the UK’s established retailers of a wide range of food, home, gar- den, office, health and beauty products. It offers a real variety store format, with stores carrying an average of 25,000 product lines. Not forgetting its online offer, which allegedly has more than 800,000 product lines for sale. The role for a variety store in the UK, if there is one, has to be devel- oped by understanding your potential marketplace. To grow, a business needs to give consumers what they want, at a price they are satisfied with, when they want it and make a profit for the company. Wilkinson commissioned market research, which identified key potential for growth in the student sector. It had to develop a strategy for growth that not only covered the specific require- ments of this target group, but also linked closely with the company’s overall aims and objectives. Wilkinson did what Woolworths

didn’t do; they found themselves a whole new set of customers and made themselves relevant and appli- cable to them. The challenge was to get students into their stores. The opportunity was to capture a new 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