Mary Portas take on dying High St's

Harry_Powell

dopester wrote: »

So if Labour did a lottery, and from it you were selected/commanded to use your £80K savings (just making that up as I don't know what savings you have) to set up a small shop anywhere in the UK of your choice.... where would you set up and what would you sell?

I'd be inclined to set up a fast food joint or cafe, they seem to be the only shops thrithing on the high street. But then I'm biased because that's the industry I work in (food).

Pobby

John was interesting in the music shop. I have family in that business for nearly 40 years. The funny thing is, they sort of portrayed his plight, in part, that he had difficulty getting stock. We fell on the floor rolling with laughter.

There are so many suppliers in that industry that would fall over themselves to supply him. It would be impossible to describe the amount of over supply in that field. New wholesalers have sprung up like mushrooms over the last 10 years. For very little money you can go direct to China and order direct from the factories.

The amount of shops also has increased, goodness knows by how much. Afaik, if he is experiencing a 30% drop in trade he is doing OK. We hear of 60% drops in turnover.

The internet boys are ripping the margins to pieces. I am told that some suppliers are trying to control this but I suspect most couldn`t care less as long as sales are made.

The standard margin for this type of equipment is approx 55% mark up. In at £100 sale at £155 plus vat. Not great margins but OK. So many shops are having print outs showing net prices waved under their noses and many need to cave in to make the sale, so they might make £30 on a £300 item.

bo_drinker

Whilst we were looking in the estate agent windows recently trying to find a house, one is into commercial letting. A shop in High St position was a Pastimes not huge but fair size astonished the rent is 40k+ a year :eek: And rates on top, that's £800 a week before you have sold a thing, is it any wonder these places are dying, you have to shift a mountain of tat from China to cover that lot.

dopester

Harry_Powell wrote: »

I'd be inclined to set up a fast food joint or cafe, they seem to be the only shops thrithing on the high street. But then I'm biased because that's the industry I work in (food).

Well in that sector, I'd keep in mind the lesson I saw from the garden centre restaurant and the pensioners... for the location you would choose, the food you offer, and the markup.

And to find yourself an edge... to be able to charge a premium, for clients who can pay you so you take in solid monthly profits to see you through hard-times.

I'm not suggesting totally aiming at the top-end, but not so you're working on very low margins day-in-day-out, to scrape a living, whilst competiting against other cheap budget food places as well.

In a depression, the service sector is like a shoal of fish trapped on a beach with the tide receding. As real income falls, many service companies starve for customers. Many consumers no longer find it cost-effective to purchase services they can perform more cheaply for themselves. So they don't. Once they get out of the habit, it may take another generation coming of age with a higher income to restore demand.

The reason that services rise as income rises is that the opportunity costs of doing certain things things for yourself, like fixing a mean or ironing your shirts, rise. This pushes more household and personal chores into the market. If you are making two hundred thousand pounds a year in the City, spending one hundred pounds a head to eat in Ramsey's Palace can be a bargain. It economises your time. You find it cheaper to pay someone else to get your dinner rather than take a few hours to make it yourself and then clean up.

But when Edmund Sherman loses his job, he can heat up some chili or eat a hot dog. He does not have to keep the limo driver hovering outside, or worry about hailing a cab. It is amazing how many services you can do without when your income falls.

Restaurants, particularly, will feel the services slump. Especially joints like Ramsey's Palace selling Veal Boogie Woogie. Expense account dining will take another cinch or two in its belt in a downturn. For the first several years of a slump, expensive restaurants will suffer. So will high-end restaurant chains and suppliers. Consumers will be value-driven.

bo_drinker

I see a lot of pubs doing credit crunch lunch deals 2 for a tenner etc trying to stay afloat no doubt. It's not getting any easier out there.

misskool

dopester wrote: »

I'm not denying there isn't a market for it - just that you're also not ideal customers for the independent retailer in the first place.

An independent shouldn't be trying to compete for your business, against the power of the supermarkets - as you're not really value customers to them, or don't sound like it. Supermarkets have the edge there.

No offence.. but you and Harry don't sound like people who would pay £500 for an impulse buy dress in fc123's old-shop (and say a £300 margin). Maybe with her tempting you with new shoes just in to go with it (art/skill of selling), or hat, or take a deposit from a select import you're expecting from Italy in 3 weeks. Higher margins to see the independent retailer compete, with their own edge, and succeed..

Scan your own at till mindset... isn't really the market my grocer looks for, with fresh speciality pasta and Pata Negra Iberico ham, imported over from Italy and Spain yesterday, and always seeking to tripling his turnover by always promoting (selling) to each customer what drink or extra will go nicely with it.

Inspired by your comment I just went out and spent £115 on shoes.

I hate being stereotyped on the internet though. Supermarket shopping is done as quickly as possible because I hate super bright fluorescent lights and grumpy workers who don't enjoy being there.

I buy from independent stores when I can but it's not always possible. To me, a self scan till in a supermarket is the path of least resistance.

Pobby

Kitchen being refurbed at the moment. We went to our local

Double sausage, double egg, beans and chips

Scampi and chips

glass of wine

pint of premium lager

change from nine quid!!!!!!!!

Lotus-eater

misskool wrote: »

Inspired by your comment I just went out and spent £115 on shoes.

I hate being stereotyped on the internet though. Supermarket shopping is done as quickly as possible because I hate super bright fluorescent lights and grumpy workers who don't enjoy being there.

I buy from independent stores when I can but it's not always possible. To me, a self scan till in a supermarket is the path of least resistance.

I don't think you are helping stereotype expensive shoe loving women at all.

and if you don't like grumpy workers, it could explain why you don't post on here very much, nothing but them here.

misskool

Lotus-eater wrote: »

I don't think you are helping stereotype expensive shoe loving women at all.

and if you don't like grumpy workers, it could explain why you don't post on here very much, nothing but them here.

Cheap shoes always hurt my feet

Not all of them on here are grumpy.

Snooze

Pobby wrote: »

John was interesting in the music shop. I have family in that business for nearly 40 years. The funny thing is, they sort of portrayed his plight, in part, that he had difficulty getting stock. We fell on the floor rolling with laughter.

There are so many suppliers in that industry that would fall over themselves to supply him. It would be impossible to describe the amount of over supply in that field. New wholesalers have sprung up like mushrooms over the last 10 years. For very little money you can go direct to China and order direct from the factories.

The amount of shops also has increased, goodness knows by how much. Afaik, if he is experiencing a 30% drop in trade he is doing OK. We hear of 60% drops in turnover.

The internet boys are ripping the margins to pieces. I am told that some suppliers are trying to control this but I suspect most couldn`t care less as long as sales are made.

The standard margin for this type of equipment is approx 55% mark up. In at £100 sale at £155 plus vat. Not great margins but OK. So many shops are having print outs showing net prices waved under their noses and many need to cave in to make the sale, so they might make £30 on a £300 item.

I would imagine that having a physical shop (be it on the High Street on not) selling music would be financial suicide these days. As the older non-internet generation continues to dies off you're left with virtually everyone knowing their way round a computer and the internet, which quickly brings them to ebay, amazon, play, etc where they can get everything they want at the click of a button for ~ 50% less than physical shops and on their doormat the next day. The only time you'll see this 'new' generation out on the High Street is at 8pm on a Saturday night...

Times are a-changing.

Rob