#45024
Postby brightncheerful » April 10th, 2017, 2:05 pm
I found midnightcatprowl's sum-up very interesting. To reciprocate, the following (slightly edited) is from the June 2009 issue of my newsletter for clients and contacts (multiple retailers and landlords of shop property):
"I’ve always had an unusually good understanding of retailing as well as property, but my retailing understanding used to come from reading and observation which is like thinking you know all about negotiating rent reviews because you’ve a shop or two. So, to bring myself into the real world, in my spare time, from 2003 to Christmas Eve 2008, I helped my wife, Mrs Bnc, run a shop in X and I’d like you about our experience.
It was my idea: ever since I became an organic wholefood vegetarian in 1984, and involved in the holistic movement, I’d felt the urge to run a health-food shop but, for one reason or another, it remained a dream. When the opportunity arose to have a go, the shop was a Grade I listed building in a mews in the heart of X. Although X’s population is only about 10,000, the retail mix is impressive, including 4 banks, a sub-post office, Tesco, Somerfield, Boots, Greggs; CC opened recently; also a railway station with direct line to London, Birmingham and South Wales; and X is a popular market town for tourists.
For the lease, we took 12 years with an option to break at the 6th year and rent reviews at 3 yearly intervals. I deliberately over agreed the initial rent, so there was no increase at the review. We could’ve paid rent monthly but I opted for quarterly because that would hold us in better stead with the landlord. Mrs Bnc designed the shop. I won’t tell you the source of inspiration in having bespoke shelving, made of pear-wood, except to say it involved multimillionaires which we are not. The effect was such that virtually every customer remarked what a lovely shop (and after we vacated the landlord relet it within days).
Mrs Bnc is an excellent salesperson, but neither of us had experience of actually running a shop, so it was a shock to discover just how much there is to do all the time. And for me, that meant overloading so as to continue with rent reviews, etc for clients. We installed CCTV for security of staff; to a Saturday schoolgirl, we paid £6 an hour (in 2004): about 40% more than she got working in Somerfield. To provide a quality service, we went for EPOS in a limited way. z1 became familiar. No cheques, it was cash and credit cards only and we were possibly the first in X to have chip-and-pin.
We traded as The Rice Cake. I created an information-only web-site. For the launch, I delivered a leaflet to every house in X and we got interviews on BBC local radio. We wanted to sell organic groceries, only what we’d use ourselves or recommend, avoiding items that don’t stand up to scrutiny when you read the small print on the label, but it became obvious our taste was too purist for many customers; we conceded, but so uncomfortable were we with some products that we hid them in a cupboard and only sold them when the customer asked.
There was another health-food shop in X and the locals were partisan. We were co-existing okay, until a 3rd health-food shop, a multiple, opened and our older and poorer customers deserted. (Actually it was me that wrote to them to suggest they open a branch in X: I thought it would put our competitor out-of-business and enable us to have a let-out for our change of direction.) So we changed the name of our shop to Muse Organix, The Skin Care Centre, and started selling organic and natural skin-care products, which suited Mrs Bnc because she has a Cidesco Diploma. It was much more enjoyable to have adult conversations with customers, particularly women choosing their Dr. Hauschka. Of make-up or, as I used to say, face painting for adults, “can I give the impression of being helpful” was my sales-talk.
People shopped from miles around: we could beat supermarkets, department stores, and the Internet on price: we gave 5% off when customers spent at least £10 and 11% discount when £20+. A month before Christmas 2008, we held a private sale for regulars so they could buy the best stuff before the final days bargain-hunting vultures got to hear. A few weeks after we closed voluntarily, the 3rd health-food shop went broke, blaming the economy! Served them right. For us, it was fun, including the rubbish tip every week. I learned a lot, especially how suppliers use packaging regulations to sell direct via the Internet to customers. Nowadays, although I miss not being able to buy at cost price, whenever I go into a skin-care or health-food shop, I’m glad I’m a customer; I imagine they think the same."