MONEY SHOP
A
fellow independent UK footwear retailer has recently been in touch about the way they have been treated by an iconic international brand.
I will start with the John Thornback quote, "Trust arrives on foot and
disappears on horseback." The scenario is well known to independent footwear retailers, they show
loyalty to a brand and have been ordering regularly and paying their bills on time for many years. Spending large sums with the supplier now a large part of their core business.
The supplier later decides that they no longer need the independent
retailer and feel they can control the supply better by having the product only with preferred suppliers and on their own website.
The brand does not feel the need to explain why they are ditching a long
term purchaser and basically tell you that the second word is "off". Of course, there is no written signed contract between the retailer and the
supplier, as this generally works to mutual benefit because it gives the supplier and the retailer the freedom to trade without strings.
Without a contract, the supplier can decide to stop stocking a retailer any time they like - and the retailer can stop buying the brand. However, there is a moral dimension here. If a retailer is happy to continue to buy and pay for the suppliers’ product, why would they turn down the order? In this case it seems the retailer was buying consistently in large amounts and paying on time.
All partnerships are built on mutual trust and, as there is no contract as
such, I feel it is quite reasonable to expect loyalty to run both ways. This ‘deciding not to supply’ issue is becoming more prevalent, which is causing considerable planning problems for footwear retailers.
In my experience, however, it is unusual for a brand to do this after supplying for more than two decades. It has happened to us on a couple of occasions, but the suppliers wanted bigger orders.
What can the retailer do about this? Sadly, the answer is, not much. A letter to the local M.P., talk to the media to try to shame the supplier to
26 • MODA SUPPLEMENT • AUGUST 2018
change their mind? Both are worth a try…. For once, I am going to suggest something that I personally avoid – that is, is naming and shaming on Social Media. Provided you clear it with libel lawyers, put a tweet to the offending company, it will have a couple of affects, it will raise awareness both amongst the consumer, client and supplier that their policy is at best misguided or at worst unethical. Also it will enable the consumer to see what they do not normally realise - that their retailer is being "unfairly" treated by their supplier. If you choose this route beware, as there will possibly be negative, as well as positive comments, about your company.
One thing is for sure, it takes a long time for a retailer to get known for
stocking a particular brand and they will lose a lot of regular customers if they have been prevented from buying this iconic brand.
I think what hurts most is that a retailer can have the drawbridge pulled up
by the supplier, without any explanation whatsoever. Whether the supplier does not like the cut of your ‘gib’ or you are not doing the brand promotion well enough. It leaves you lying awake worried how this business can be effectively replaced.
In conclusion, the above may be legal, but it is certainly very dubious
morally. I hope manufacturers will be less quick to get rid of retailers who are buying regularly and paying on time.
If you would like David to look at your business costs, he promises that if he cannot save you any money you pay him nothing. But for every pound he saves, you pay him 15 pence.
If you want to learn more, email David on david@fdickinsonfootwear
.co.uk,
call 01229 580654, or visit www.fdickinsonfootwear
.co.uk
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