02
Oct
2008
The RTT believes that the current levels of discounting and promotions in today’s financial climate are untenable long-term; unsustainable; and unhealthy for the retail sector.
The situation, the RTT warns, is now one of a self-perpetuating, vicious cycle, where margins for the retail industry as a whole - as well as those of their suppliers - are being negatively impacted.
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30
Sep
2008
Given the RTT’s belief that the current landscape of discounts and sales is untenable in the longer term, it discussed how it sees the situation developing. The RTT believes that retailers which use promotion and discounts more strategically, as opposed to tactically, will be more successful.
The group agreed that value will be the key pillar of retailers’ strategies going forward. To maintain and improve its prospects, a retailer’s focus must be on plans and actions which enhance stakeholder value. Price is only a part of the value equation; product, brand and the environment are equally important.
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30
Sep
2008
The RTT agrees that the City focuses very heavily on like-for-like sales growth figures as a barometer of the success of retailers.
Tim Denison of SPSL summed this up when he said: “The City should be encouraging retailers to increase margins, not sales at any cost. Retailing is a business like every other. Unfortunately it’s far too easy to be fixated on sales figures.”
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30
Sep
2008
“Discounting, promotions and sales are now a normal part of retailing practice but their widespread use is detrimental to the health of the sector”
30
Sep
2008
Last year saw the intensification of pre-existing trends in the needs and aspirations of UK shoppers. The relatively good performance of the food sector against the non food sector is one example, and is consistent with UK consumers’ growing emphasis on the quality of the food they consume, and in trading up to ‘better’ options, for a combination of health and feel good reasons.
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