ISurvey Independent
t’s January 2013, so we decided to have a look at what our listers think will be the biggest impacts on their businesses throughout the year. We had a fantastic response to what has proved to be one of the most provocative questions we’ve run in the
Toy Shop UK survey. Independent retailers are focused on their businesses, and the passionate responses we received (some, not all, shown in this feature) are testament to that. From the comments you’ll see that the internet
juggernaut Amazon is still having a massive impact on the independent retail sector. It’s easy to see that the price-matching algorithms the Amazon e-commerce site uses are extremely effective, but it’s the use of independent retail stores as a sort of showroom for the online giants that is really causing anger. As Lisa Clay of Armadillo Toys said: “Customers in my shops look at our toys, ask for advice, touching, playing, making decisions, and then checking the Amazon price on their phones.” There are also the expected mentions of the majors
offering silly deals, tightened marketing budgets, and council-made decisions to pedestrianise high streets and force people to go to out-of-town shops. 2013 is looking to be as tough a year as 2012, but you get the feeling that the independents will come out the other end, because for the most part they always do.
Nutwood Toys, Staffordshire
Julie Hession Trading has been severely hampered by Amazon and other online marketplace sites.
EcoToyStory, West Yorkshire Linda Ladley
As multiples continue to grow and offer great deals, its becoming increasingly important to differentiate yourself in the market. Therefore, fi nding new products will be one of the key challenges for us next year.
Giddy Goat Toys, Manchester
Amanda Alexander All of the options present challenges, as does the continued move to online shopping and the domination of Amazon and its ability to sell at prices we can’t realistically match.
Armadillo Toys, Leeds
Lisa Clay We have to have a point of difference with the multiples and chains in order to survive, this is increasingly diffi cult when every toy you can possibly source can be found on sites like Amazon and Tesco. Customers in my shops look at our toys, ask for advice, touching, playing making decisions, and then checking the Amazon price on their phones. We cannot compete on price when there is not a level playing fi eld, we do however offer great customer service and the products are there to take away, no waiting for delivery.
38 Toyworld I Spy Toys, Hertfordshire
Amanda Morgan Amazon’s anti-competitive practices of hogging the buy box for themselves, and fulfi lled by Amazon even when others offerings (with high satisfaction) are far less than the supposed margin.
Models R Go, Merseyside John Guiver
I think the biggest impacts will be made by manufacturers and distributors selling direct to retail customers, and large online retailers with manufacturer accounts and massive warehouses selling just over trade on eBay and Amazon.
Roy’s Toys, Buckinghamshire
Roy Wenman Being an online business, the annual rise in Royal Mail postage costs is always a concern since it is a fi nancial burden that must either be absorbed by myself or passed on to customers; both unappealing prospects.
Automattic Comics and Toys,
Wiltshire Matt Booker We get hit by stupid deals from the big boys where you
In association with
This month Toy Shop UK asked its listers: “What do you think will have the biggest effect on your business in 2013?”
27% = Increasing domination by the multiples 22% = Ability to source new products not widely stocked elsewhere 20% = No budget to increase marketing 19% = Rising overheads 11% = Other
can see they are in no way turning the slightest profi t on products, and just after reporting huge losses in profi ts. Why bother being in business if you have no business?
The Fluffy Box Company, North
Yorkshire Lawrence Walker 2013 will be a year to avoid experimenting with
advertising. Budgets will be fi xed through the year to avoid wasting our profi ts on non-stock items.
The Rocking Horse, North
Yorkshire Granville Simpson High town centre car parking charges are driving
people away from our high streets and into out-of- town shopping centres and supermarkets with free parking.
Kiddy Centre, Glasgow
Kevin McMahon Similar to many independent stores, we will always fi nd it hard to compete against the big retailers, and I don’t foresee any change in 2013. What we need is more manufacturers and wholesalers to help the smaller businesses out by lowering their minimum order for example, or maybe even adopting a dropship scheme. We don’t have to spend thousands of pounds on stock that, to be honest, could be spent more wisely on marketing and other pursuits. All in all, 2013 will be another testing year, but we are more than ready for the challenge ahead.
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