A very crude bastardisation of the 1952 Novelty song How much is that doggie in the Window ? Sung by Patti Page.
First it was toilet rolls and pasta, now the panic buying has moved onto Bikes and Puppies. In a few months time I can foresee loads of bikes on eBay, hopefully not puppies but there are already signs of profiteering. That, however, is not what this is all about.
As I was queuing to go into the bank (as one does at the time writing) , it was a source of inspiration whilst looking in the window of a locked down independent card shop. Or rather, it wasn’t, as what I saw made me think why would you go into this store ? Yes the store was closed but centre point of the window display (I hesitate to describe it as a window display) was a child’s plush toy dog. The product did not tie in with anything else in store , it looked grubby and as any dog looks in any window, very sad.
There are stores of all shapes and sizes littering retail landscapes, that are, if not full, then stocking a load of product that really should not be there. It does not stop with retail stores as it is true of wholesalers, distributors, importers and manufacturers.
Apple created product that nobody needed, and most experts suggested nobody would (or at least few would ) buy. What Apple managed to do was to create desire and then developed need. There are very few parallels. Therefore distribution channels in all markets should be a lot more ruthless in their ranging . I am not talking here about only having best sellers . If product has a market or serves a purpose, no matter how small, it is not a rational for deleting it. There is the 80/20 rule. This states that you take 80% of your cash from 20% of your range. This does not, however, you dump 80% of your product range. The function of less popular 80% is to enhance and attract the buyer.
It is the product that serves no purpose, has no market value and quite simply has a negative impact upon your business, it should go. Within our industry (Party Market) much revenue is generated by Licensed product eg Disney Characters, Marvel Comics etc. When a successful movie is launched there is often a huge peak for the main character ( Frozen Princess product for example). However that can be very short lived. In the case of Frozen, when the next film came out the consumer only wanted the new designs. The old design becomes dead stock overnight. Now, to be honest, this is a really tough topic because you never really now when ‘The shows over‘ so to speak. That dead stock can drain any profit made when it was hot. Moreover, it is more easily identifiable by the consumer as dead stock.
Certain retailers are more exposed to this issue than others. It is rarely an issue with any grocery outlet as most of the time their stock is limited by sell by dates. Yet they tend to be the exception rather than the rule. Old stock whether defined by its age, fashion , poor sales history or just plain rubbish product does nothing to help a retail store. It has to be taken out of the business and a basket with a hastily printed sheet saying must be cleared, everything 50p is neither a good look nor an effective process.
At a time when we could go into shops, all of us will have experienced that moment when you are thinking what, on earth, is that doing in this shop? or how long has that been here ?
I have just had conversations with a customer , who having been in their current location for three decades has cleared all the stock out of the store and decided that when it can be reopened , everything will be fresh and new . A glimmer of hope , but only a glimmer. I am concerned a lot more will rely on old stock (because of financial constraints), fear of the unknown, or pure and simply going back to their old ways.
A word of caution. If you are in the process of restocking and your supply chain offers the once in a lifetime super deal on certain products. Just ask the question Why? Is it, perhaps, from their metaphorical must be cleared, everything 50p basket ?
In the current climate it is so important . The consumer will not bother going into unattractive stores and they will not be interested in looking at rubbish stock, not that they ever were. But now is the perfect time to look at what you have (and don’t have) and ask yourself
Would I buy that doggie sitting in my window ?