News Archive
Shoes an 'untouchable luxury'
WOMEN are still splashing out on new shoes despite the ongoing credit crunch according to a new survey.
Nearly a quarter of consumers are refusing to cut back on shoe purchases, describing them as an 'untouchable luxury', whatever the financial circumstances.
The survey, carried out by BIGresearch and Stores magazine, revealed that shoes were off limits when it came to cutbacks, and instead women were giving up facials and handbags, calling them 'expendable purchases'.
WOMEN are still splashing out on new shoes despite the ongoing credit crunch according to a new survey.
Nearly a quarter of consumers are refusing to cut back on shoe purchases, describing them as an 'untouchable luxury', whatever the financial circumstances.
The survey, carried out by BIGresearch and Stores magazine, revealed that shoes were off limits when it came to cutbacks, and instead women were giving up facials and handbags, calling them 'expendable purchases'.
The challenge for retailers
By Cris Stephenson, MD TNT Fashion Group
THIS recession is performing a frightening cull of retail names. We've lost indestructible names like Woolworth's, and even marketing masters like Virgin were unable to protect Zavvi from extinction.
I listened to Sir Philip Green on Radio 4 explaining why speed to market was more important than price. While I'm in complete agreement with this, I think there's a more pressing priority than either: change.
In a benign marketplace it's easy to tolerate a few inefficiencies. Making significant changes to the supply chain is a high-risk operation, so it's usually regarded as safer to put up with the limitations than risk the disruption of major change, but that luxury is gone.
I think our industry is going through a shakedown that will see a few bold, entrepreneurial retailers coming out stronger and more profitable than they went in.
But the body count on the way is likely to be pretty daunting. The winners now will be the ones with the nerve to wage war on the inefficiencies.
Yes, speed to market is a vital element of success, but not if the costs outweigh the benefits. And by costs I mean areas like accuracy, flexibility and control of shrinkage, not just the cheque you write out to pay your logistics provider.
It's actually a simple proposition - we just need to put the right product on the right shelf at the right time. But add the magic ingredient - customers - and it gets a whole lot more complex.
Customers have an outstanding talent for buying the wrong product from the wrong place at the wrong time.
When times were easier you could get away with missing the odd trend here and there; you could even put up with losing a few garments along the transport route; you could cope with the leakage because there was plenty of inflow.
So are we between a rock and a hard place here? We can stay the same and fail slowly, or make bold changes and risk going out in a blaze of publicity. Are we choosing whether to go out with a bang or a whimper?
I'm not a big fan of risk. It's possible to be bold without putting the whole enterprise - and your own job - on the firing line. All that's needed is the will to look at new and better ways of doing what we do. What's worked for the last twenty years isn't necessarily the best way of doing it today. We have to start thinking about big solutions, not small adjustments.
It takes nerve even to contemplate major changes in an uncertain market, but major change is what will pull the brave through the recession into the boom that's sure to follow. Every day is a day wasted. We should be talking today at the top strategic level, and looking at the fast, high impact actions we can put in place to ensure survival. We know it's possible and we know it's effective.
Where TNT Fashion Group is concerned, there's actually not a huge amount that's changed. We've been extolling the virtues of tightening up the supply chain for years now. But a global slowdown in retail has changed our clients' attitudes to what we have to say.
I can understand people's reluctance to make changes, even though they understand the benefits of change. You're on the edge of a cliff, and I'm telling you to jump. If you do, I promise to catch you and make your life better. Fair enough you think, but you're still asking me to jump off this cliff. The recession has added a charging rhino to the picture. I understand you're not keen on jumping, but if you don't you're going to take one hell of a trampling.
By Cris Stephenson, MD TNT Fashion Group
THIS recession is performing a frightening cull of retail names. We've lost indestructible names like Woolworth's, and even marketing masters like Virgin were unable to protect Zavvi from extinction.
I listened to Sir Philip Green on Radio 4 explaining why speed to market was more important than price. While I'm in complete agreement with this, I think there's a more pressing priority than either: change.
In a benign marketplace it's easy to tolerate a few inefficiencies. Making significant changes to the supply chain is a high-risk operation, so it's usually regarded as safer to put up with the limitations than risk the disruption of major change, but that luxury is gone.
I think our industry is going through a shakedown that will see a few bold, entrepreneurial retailers coming out stronger and more profitable than they went in.
But the body count on the way is likely to be pretty daunting. The winners now will be the ones with the nerve to wage war on the inefficiencies.
Yes, speed to market is a vital element of success, but not if the costs outweigh the benefits. And by costs I mean areas like accuracy, flexibility and control of shrinkage, not just the cheque you write out to pay your logistics provider.
It's actually a simple proposition - we just need to put the right product on the right shelf at the right time. But add the magic ingredient - customers - and it gets a whole lot more complex.
Customers have an outstanding talent for buying the wrong product from the wrong place at the wrong time.
When times were easier you could get away with missing the odd trend here and there; you could even put up with losing a few garments along the transport route; you could cope with the leakage because there was plenty of inflow.
So are we between a rock and a hard place here? We can stay the same and fail slowly, or make bold changes and risk going out in a blaze of publicity. Are we choosing whether to go out with a bang or a whimper?
I'm not a big fan of risk. It's possible to be bold without putting the whole enterprise - and your own job - on the firing line. All that's needed is the will to look at new and better ways of doing what we do. What's worked for the last twenty years isn't necessarily the best way of doing it today. We have to start thinking about big solutions, not small adjustments.
It takes nerve even to contemplate major changes in an uncertain market, but major change is what will pull the brave through the recession into the boom that's sure to follow. Every day is a day wasted. We should be talking today at the top strategic level, and looking at the fast, high impact actions we can put in place to ensure survival. We know it's possible and we know it's effective.
Where TNT Fashion Group is concerned, there's actually not a huge amount that's changed. We've been extolling the virtues of tightening up the supply chain for years now. But a global slowdown in retail has changed our clients' attitudes to what we have to say.
I can understand people's reluctance to make changes, even though they understand the benefits of change. You're on the edge of a cliff, and I'm telling you to jump. If you do, I promise to catch you and make your life better. Fair enough you think, but you're still asking me to jump off this cliff. The recession has added a charging rhino to the picture. I understand you're not keen on jumping, but if you don't you're going to take one hell of a trampling.
