Yep, it’s still tough out there and I for one am totally perplexed as to why we haven't just turned a corner on this terrible recessive trading environment that we have all been battling for so long. Trade is worse than it ever was when we were sitting in the middle of what is now known as the ‘GFC’.
Look at all the problems with Spain and Greece and yep, they are right. Their expected bailouts will not help stimulate their broken economy. They will simply wipe Government debt so the whole vicious cycle starts again. It’s about change and doing things differently.
It truly is time for so many countries to wake up to the way in which their governments are endeavouring to balance the books. Money-in needs to equal money-out and as with any good business, there will be some things that we simply cannot afford.
I have heard so many people talking to a zero cost budget. Yep, they can’t increase their sales so they simply stop spending. I’m sure there’s many of us looking at this.
Sure it’s always tough at this time of year. I liken it to the birth of my children… I distinctly remember being pregnant with Edward, my second child and thinking ‘this child birth thing isn't hard’. I can’t even remember that there was too much pain. Yep, I'd decided delivery really was a walk in the park… not!
Halfway through Edward’s birth, experiencing extreme levels of pain, I remembered ‘yep, it really was a bad as they say… if not worse!’ Giving birth bloody hurts.
The message then…
So does trading in June and July in New Zealand and now we even get to experience Australia's pain. Last week one of our competitors in Launceston went into a 70% off sale. Really… what’s the point of being in retail if all your new stock heads out at 70% off?
It is different out there. These are new times for retail and if you’ve attended any of the many presentations that banks have been running lately you will know that the way we retail is set to change drastically over the next few years and all because of the internet.
Just look at the many causalities that it has already left in its wake… the retail music industry for one and many say that the booksellers are not far behind. Apparently Amazon will now print a single book for any one wanting to buy the works of a newly published author. Gone are the days of having to commit to 500 printed copies just to get your dream and vision started.
Perhaps it’s just the semi luxury spend that has gone west at the moment. I was out at one of my favourite restaurants last week. It was a Thursday night, town was seething, parking was at a premium yet there was only 3 to 4 tables of two occupied. Unheard of and they are so great at what they do. The food, the service, the ambience… yet it doesn’t seem to matter. It almost seems the better you are the harder you fall in some cases.
I know that the only sales we can generate on our internet platform at the moment are the extremely cheap ones. Yep, dresses at $50 that once graced the racks of our flagships stores are being snapped up even with a ‘no exchange or refund’ disclaimer.
We have had to look at our retail model constantly and reinvent. Whether it be creating in store events, inviting women in for one-on-one styling sessions or attending others events and contributing via a small body shaping presentation. These have been the live saviours that have enabled us to talk to those that have yet to be converted to the Annah.S way. Every day I awake and my first thoughts go to how we can retail differently and drive that bottom line. To remain the same is to die!
I have looked long and hard at the clothing collections that we are creating. All the items in here need to be beautiful and commercial. There can be nothing that enables the point of sale objection. Make it easy to say yes… wrap that for me… and add the obi and the flower please.
It’s all about how we give our women that very needed permission to buy. And speaking of selling… where have all the great retail girls gone? They say there’s high unemployment out there… well most people I talk to, including myself are unable to secure the right people to drive our business models. I for one am extremely fortunate as I am surrounded by women that love my brand and have huge abilities on the retail floor but my planned growth means that I am always looking for more… where are you all girls ????
So I guess I will just hang on as I know that August isn't too far away and this should all be over… although it doesn't make it any easier.
I will however be refocusing all my energies on knitting the stuff that makes the money and that has got to be good for us in the long run.
Let’s hope the rest of you that also put such wonderful products and services into the market can hold on as well. In the words of one of my superstar girls, Angela in our Christchurch store, in an attempt to bring some logic to this retail drought… ‘I think they are all saving up to buy firewood’. Well let’s damn well hope so!
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