Survival of retail

hammer

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Jul 6, 2009
Messages
58,180
OK, for starters the Government will do nothing

Rates - 2%
Light & heat - unchanged
Rent - no legislation
Insurance - increasing :(
No subsidy to protect jobs
CSO reports coming out your ears
Vat cut by .5% in a depression :(


Ideas
Cut staff
Cut hours - open later - Arnotts etc now 10am
Cut wages - 15% minimum
Cut weekend openings or stay closed monday / tuesday
Start crying to your landlord
Convert bank overdraft to term loan
Buy better - source product in UK
Ask for greater discounts from suppliers
Carry recessionary lines
Discount Discount
 


Joined
Aug 6, 2007
Messages
22,622
Carry less stock
Improve on logistics platform to reduce lead time
Ensure individual product profitability is understood
Delete obsolete lines quickly and hold no stock
Start understanding what the customer wants NOT what you want to give them.
 

markeys

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Feb 11, 2008
Messages
273
A lot of retailers are plain running out of cash. They've been taking no wages themselves in the hope of keeping things going. Christmas was a whitewash, January even worse. They'll be a whole swathe of them out of business over the next two months as they give up the ghost.


Councils and the Government have pushed and driven prices to their height. Now thanks to FF incompetence and Greens selling out, the most anyone in the government can muster is to freeze costs. With deflation factored in, it means business costs are actually up! Thank your local FF TD for driving costs to their most expensive and keeping them their while you get nailed to the wall.


If a business is on the breadline and running out of cash, there's very slim hope it'll make it through the next 12 months. The only other ideas I've heard regarding making retail work is cutting down on any and all staff perks, giving staff the option of closing business or them working longer with an agreement to make it up to them when things turnaround, and literally selling off stock at cost price - at least the debt won't be hanging over the business.
 

hammer

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Messages
58,180
If this collapse keeps up the result will be that paye/prsi & vat will go to pay down bank debt.
 

markeys

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Feb 11, 2008
Messages
273
If this collapse keeps up the result will be that paye/prsi & vat will go to pay down bank debt.
It already is. Retailers are robbing peter to pay paul. It's only a matter of time until the last one robbed comes after them through the courts - the tax man.

Besides, if FF is using taxpayer funds to throw to their banking buddies and builders, whats wrong with citizens saving them all that nasty corrupt scama worries and just doing it directly themselves - pay off their own bank debts? FF should be thanking them! :D
 

Hillmanhunter1

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Jan 9, 2009
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2,357
Retail is certainly having a horrid time. Many will go out of business, but there are steps that can be taken to improve the situation.

Firstly, retailers need to take a leaf out of the Union's book, they need to have a rent strike, whole streets of traders have to refuse to pay the absurd rents that pension funds (mainly) have been able to charge during the Celtic Tiger years. Talking specifically about Dublin, there's no justification for the level of rents in city and shopping center locations. Dublin is a peripheral European city with about 1million inhabitants. Its not Paris, New York or London.

Secondly, they need to cut margins, and cut them pretty sharply. Over the past few years the prices of goods in our shops have been way ahead of what they ought be by comparison to other countries - even taking transportation costs, labour costs and taxes etc. into account. Retaillers have been making a very good living indeed in recent years, however, running one or two small shops doesn't make you a master of the universe!

Thirdly, retailers need to offer a better service. By that I mean that shop workers need to be polite and understand how to make a sale. They should also know all about the products that they sell. Nothing puts potential buyers off more than insolence and indifference.
 

HanleyS

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Jan 11, 2007
Messages
815
Cut wages - 15% minimum
Start crying to your landlord
Buy better - source product in UK
Ask for greater discounts from suppliers
Discount Discount
Only thing I'd add is I'd do more than cry to the landlord.
 

charley

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Joined
Apr 3, 2009
Messages
1,247
Carry less stock
Improve on logistics platform to reduce lead time
Ensure individual product profitability is understood
Delete obsolete lines quickly and hold no stock
Start understanding what the customer wants NOT what you want to give them.
a lot of retailers are already doing this,one of the big issues that the wholesalers want cash up front,small shops are carrying just basic stock, and a good few seem to have family members covering shifts, the costs that the government control are the main problem.
 

darkhorse

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Dec 12, 2005
Messages
17,954
my advice is to go online if you can
base it offshore to avoid stangulation by government and rape by the landlord
pass any savings to the consumer because competion is fierce
sorry but i dont see a future for offline retail apart from the corner shop for essentials
 
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a lot of retailers are already doing this,one of the big issues that the wholesalers want cash up front,small shops are carrying just basic stock, and a good few seem to have family members covering shifts, the costs that the government control are the main problem.
Govt doesn't control rent rates and insurance.
 

slx

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Oct 13, 2008
Messages
883
Government mightn't control rent, but its mates do, which is why it won't do anything about it!

Rent is the single biggest factor that is strangling retail here and it's all going into to prop up the same insane system that has collapsed other aspects of the economy.

Prime retail buildings in Dublin, Cork etc are propping up dodgy loans on portfolios of property.

They're also just lining the pockets of developers and of mismanaged pension funds.

The problem is that if someone doesn't see the big picture soon, there simply won't be any tenants to pay this kind of rent and the knock-on effect of this will be a massive spike in unemployment and further erosion of VAT & local authority incomes.
 

Digout

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Joined
Oct 2, 2008
Messages
1,389
Carry less stock
Waffle. Hire good buyers, they know what sells.

Improve on logistics platform to reduce lead time
Waffle.
Ensure individual product profitability is understood
Oh FFS
Delete obsolete lines quickly and hold no stock
Does not even deserve a reply

Start understanding what the customer wants NOT what you want to give them.
Like the bars at dublin airport? I've yet to hear one person say something good about them.
 

leroy42

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Joined
Jan 11, 2007
Messages
690
It is clear that retail is suffering badly, although as has been stated they did do very well during the boom times.

MOst shops have already taken pretty drastic action, reducing prices, reducing staff hours, fighting for better prices from suppliers, buying directly from UK etc.

All of these are good ideas, but it is stark the difference between what this sector is being asked, and required, to do and the public sector.

Even this morning in relation to the imposition of VAT on local services, the first statement is that unfortunately the cost increase will have to be passed on. No mention of the LA looking for cost effecticies, cutting staff time, group purchasing etc etc.

I disagreee that there is no place for traditional retail. Online does have it's place but currently one reason the online can continue to do so well is that traditional retail is covering a lot of the problems. Buying clothes online, you will probably have either seen or tried on the garment in a traditional store before buying for cheaper online.

Electronic equipment, most people want to see and touch the piece prior to buying it. They go into the local shop, check it out and then buy online. If all the traditional shops disappear, the online companies will be faced with major problems of returns etc will start to effect their prices.
 
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Messages
22,622
Waffle. Hire good buyers, they know what sells.


Waffle.


Oh FFS


Does not even deserve a reply



Like the bars at dublin airport? I've yet to hear one person say something good about them.
Your contribution like everything else you do is full of %HIT.

You would be surprised how many people ignore the basics.

For someone who claims to be in business you know Jack %hit
 
Joined
Aug 6, 2007
Messages
22,622
Government mightn't control rent, but its mates do, which is why it won't do anything about it!

Rent is the single biggest factor that is strangling retail here and it's all going into to prop up the same insane system that has collapsed other aspects of the economy.

Prime retail buildings in Dublin, Cork etc are propping up dodgy loans on portfolios of property.

They're also just lining the pockets of developers and of mismanaged pension funds.

The problem is that if someone doesn't see the big picture soon, there simply won't be any tenants to pay this kind of rent and the knock-on effect of this will be a massive spike in unemployment and further erosion of VAT & local authority incomes.
Govt have nothing to do with setting rents, retailers entered into contract themselves.

Funny when a retailer is making money I see no rush for Govt involvement.
 

Fir Bolg

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Dec 8, 2006
Messages
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Maybe retailers could display 2 prices. Their price and the price of the product in Newry. That way people will know if they are being ripped off or not and if they feel they're being charged a fair price they will respond.. I've no sympathy for retail. They fleeced the goose that laid the golden egg.
 

Clanrickard

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Apr 25, 2008
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33,018
That way people will know if they are being ripped off or not .
There is no such thing as being "ripped off". It is a pejorative term indicating something untoward or underhand. If the price is clearly stated it is up to the consumer to decide if they want to buy the product or not. People are whining about margins but retailers aren't charities they'll try as make as much a possible and get the best deal for themselves the same as anyone else. People who drone on about "rip off" are usually people like Pat Fat Cat Kenny who are paid huge salaries which are also a rip off but no one complains. Instead poor sodes in corner shops with family memebers and maybe two staff get it in the neck even though they might not be even drawing a living wage to keep the business afloat.
 

hammer

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Jul 6, 2009
Messages
58,180
Fir Bolg - A bit of a generalisation.

Retailers charged more because their overheads are greater :( - a lot greater than UK and Spain, where most people have an idea as to what is charged.

We have a competition authority that cant even tell us by how much the big multiples are overcharging us as their profits are private. The dog on the street knows they are bullying suppliers and not passing on the entire savings.
Competition authority, another Govt agency that is asleep.

99% of Irish families spend the greatest part of their disposable income in supermarkets.
 


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