This is not directly related to the party market, even though  both operators sell party products and what is more, POUNDLAND is probably the largest Halloween retailer in the UK.

I am absolutely gobsmacked that the monopolies commission has found suitable cause to investigate this takeover. I quote…

‘Sheldon Mills, senior director of mergers at the CMA, said: “Without competition from 99p Stores, there is the possibility that Poundland may have the incentive and ability to deteriorate its offer in these areas to the disadvantage of customers that have come to rely on their offer.”

How so ? 

1. POUNDLAND came into existence long before 99p stores, when there were other single price discounters, all of which have long gone. Consequently, they have been operating in areas where they had no competitors . Did they offer less value in those areas ? I don’t think so. 

2. There is a relatively new kid on the block ie Poundworld. Is it not possible that they may want to fill the gap? This is ignoring the fact that there are  at least  four other major discounters (albeit not single price) who may see similar opportunities. 

3. Where were the CMA (competition and markets authority) when UK’s grocery retailers took it on themselves to dominate small towns and wipe out all local competition, leaving the local consumer with little choice ?

4. Not wishing to offend all discount operators, especially the single price outlets, but I suspect much of the expenditure is not essential. Even to the least fortunate in our society, the removal of a competitor selling product at £0.01p less than an alternative player is going to save £0.10p in every £10 (and I don’t believe the average spend is anything like £10). This is not going to make a great deal of difference to their lifestyle.I know this is an oversimplification as there are pack size issues. However, the principal remains the same.

I am no apologist for the discount retailer, but to suggest the merger of 2 of the larger chains are going to substantially alter the offer is about as likely that the new group will rebrand as ‘ONEPOUNDFIFTYLAND’.

If the CMA wants to examine deteriorating offers within the retail sector, there are far bigger and more important fish to fry. The discount sector is the one sector that have actually had some impact in improving the consumers offer and I am quite sure that going forward they will not be any less aggressive in pursuing this objective.

Perhaps I am missing the point. If so, I would be delighted to hear from anyone who feels there are some serious justifications for this investigation.

 

 

 

During March , I travelled nearly 3000 miles , visited over 36 towns, from Maidstone in Kent, through Swindon, Torquay, Manchester, Liverpool to Glasgow , Edinburgh and back. The overwhelming conclusion is that we live in an extraordinarily diverse nation.

Yes, there is an enormous selection of culinary delights, a vast number of different languages and accents, and all combinations of the worlds major faiths plus a large number of lesser known beliefs. Furthermore, there is the enormous variety of landscape, from rolling hills, ancient woodland, through dramatic coastal regions to snow capped mountains.

No , I am not talking about any of this.  I am talking about the diversity of the party market. It is something I have been aware of for some time but when seeing so much in such a short period of time it focuses the mind.

There are two particular areas I would like to talk about. The outlet and the type of product sold.

The outlet

There are party shops, there are costume shops and there are party and costume shops. Within these three, there are big and small, old and new . Beyond these traditional outlets, there are numerous varieties which feature party as a key component of their product mix. The following are some of the more esoteric varieties…

Bong Shops- for those who don’t know, a bong shop is a place that sells smokers accessories, water pipes, herb grinders and various odds and sods that nobody else sells. But often they sell dress up and party items. The other peculiarity is that these shops tend to be in coastal towns. Why party ? Haven’t got an answer to that. The only connection that comes to mind is that the customers in bong shops seek other forms of mental relaxation and then go and party. The reality is that in a number of cases there is no fancy dress shop in the town , and in a seaside town it gives the retailer out of season opportunities.

Discount shops- There are various independent discount retailers who decide to spread their wings into party retailing. In general they do not operate with same discount pricing policy as their original store. It is often the case that they see the opportunity to make increased margins. What some have done is to utilise their retailing skills into Party retailing with good effect.

Dry Cleaners- I have to mention this one , as I have only come across the one but there is a remarkable synergy. This particular operation has been in business for some years. The synergy is that one half of the unit is a dry cleaners the other half is primarily costume hire. Need I say more !

I have seen retailers operate from barns, private houses, railway stations, old houses, new houses, and market stalls . There are supermarkets, card shops that sell some party, online operators that have a retail outlet, and of course, what we know as the traditional retailer as outlined in the first sentence of this section. Some are good some are bad.  The remarkable feature of all them is that they are all quite different, even on the odd occasion where there is more than one in a town . Even more remarkable there are towns of a reasonable size that don’t have any.

Product

For sometime, when asked by a potential customer, for ‘ …your top 50 items…’ I, politely, refuse or rather defer. Of course, there are products and ranges that sell well no matter where, especially licensed product. However, it is quite extraordinary the difference in what does and doesn’t sell even within a small geographic area. It is quite possible to go to an outlet in one town where the owner will tell you they sell a large number of one item . Yet 3 miles away another retailer will tell you they have never been able to sell that product.

Of course, the demographic has a large part to play and within the UK this can change very quickly. Where the demographic has less of an influence, is with online operators. Still, the principle can apply. Even with similar online profiles, you can find huge differences in what one can sell against another.

So what does this tell us ? It tells us that we live and work within an intriguing and diverse market place. It also shows it is disparate and unorganised. It indicates that as independent retailers, you are very vulnerable. On the one hand it makes it a nightmare for an entrepreneur seeking to open a  national chain as a store plan in one town may not (change ‘to will not’)work in another . On the other, it does, in some cases, offer opportunities to the better retailer with good local knowledge and know how, to invest and operate effective small local outlets.

The immediate thought of how different we are to our European cousins, was dispelled on  a trip to Arctic  Norway. Walking into a tourist gift shop looking for some Norwegian memento, I was not surprised to find most of the product came out of the Far East. However, I was surprised to find half the shop selling fancy dress.

The other thought was that the better online operators can easily compile such diverse data as what is sold, where, when and by whom. It is what is done with that data , that is of interest.

 

 

 

 

 

 

Being my first post, I feel the nagging need to justify blogging  in the first place. However, common sense prevails, as the readership, in the beginning,is likely to be pretty low, should it increase at any one time, I would have to keep repeating the justification. The effect of this would be two-fold :

a) put off early readers from reading subsequent blogs

b) put off new readers, thinking why is the blogger constantly repeating stuff….

Having got that out of the way, there is a need to give an outline of what the reader, hopefully, can expect.

I have spent 90% of my working life within the Party industry (91.5% to be precise!), so for good or bad it is pretty ingrained in my working psyche . I shan’t put that percentage into years as it may scare some potential followers away, simply because they might think it is too long and I should go away and get a proper life.

I shall not bang on about ‘experience ‘ as my belief is there are too many people out there who go on about how many years experience they have within a certain field, but don’t tell you that they failed to learn anything with that experience. It is a little like the misunderstood phrase ‘practice makes perfect’. It doesn’t ! It is only ‘proper’ practice that makes perfect. In the same manner, misuse or misunderstanding of your experiences will make the ‘experienced’ no better than the novice , or maybe worse as they have ill informed  preconceptions .

Back to the Party Market. The UK Party Market, is supposed to be one of the largest in the world per head of population . Yet it provides many anomalies. For example, despite market size it is one of the few Party markets (certainly in Western Europe) where there are no retail chains of any size. At retail, balloons account for the lion’s share the shop take, whereas this is not the case in mainland Europe.The retail Party market is still small against the majority of other retail fields. It is not food and clothing. It is not like cars and holidays , or TV and technology. Yet if it didn’t exist, would it be missed. I think so.

So there is a lot to talk about and on occasion, I shall stray into other retail areas , which may take my interest , but always (or nearly) there will be a reference or relationship to the party market.

I have to declare my hand , in so far as I have a vested interest. I am part of the supply chain, but I shall do my best to be as impartial as possible, naturally there will be times that I may stray. I do not intend to offend, any criticism I make is intended to be well founded and hopefully to be taken in good faith to engender the debate that should be undertaken within this market place.

The one fact that is very evident within this industry, is that are many people working in isolation and have little meaningful contact with other retailers whether they are online or on street. Yet there are many issues that could be relieved or even understood if there was an open discourse. Hopefully, this blog may in a small way help to start that discourse.