On-line retail - BHS now to go
down this E-commerce road?
Mrs Slocombe's Pussy has well and truly left the building.
down this E-commerce road?
Mrs Slocombe's Pussy has well and truly left the building.
So, BHS, one of the last of the big beasts of the High Street of old, is to come back as an on-line brand?
Well, its the way things are going. It's called the Amazon effect. A brilliant business model by the way. A virtual cave of wonderment, the on-line shopping portal.
Recently, I was talking to a business owner and he told me his biggest overhead was staff costs.
However, a business is only as good as the staff it employs, it was said, in the old days. But these days, they aren't employing, they are cutting back.
If they are employing, it is often at more peak time, peak footfall times for customers. And lots of part time jobs. Bad news for job seekers. And those already in retail.
However, a business is only as good as the staff it employs, it was said, in the old days. But these days, they aren't employing, they are cutting back.
If they are employing, it is often at more peak time, peak footfall times for customers. And lots of part time jobs. Bad news for job seekers. And those already in retail.
Our shopping and living habits have changed over the last 50 years, massively.
No longer is the suburban housewife in her sensible M&S knickers perambulating the High Street with wicker shopping basket and sensible footwear to the local independent greengrocer, local food shop or dress shop, these days its all going down to cyber street, the Electric Avenue.
No longer is the suburban housewife in her sensible M&S knickers perambulating the High Street with wicker shopping basket and sensible footwear to the local independent greengrocer, local food shop or dress shop, these days its all going down to cyber street, the Electric Avenue.
Think about your last 5 purchases? How many of these were made human to human?
Likely 3 out of 5 were made electronically, with you buying completely electronically without a fronted human interaction, with a real person.
This immediately starts to cut a swathe into working people's job prospects.
In the last 5 years, the jobs market has receded and changed immeasurably, almost invisibly. Jobs have fallen away as working and purchasing practices have changed.
In the last 5 years, the jobs market has receded and changed immeasurably, almost invisibly. Jobs have fallen away as working and purchasing practices have changed.
That's the point. The High Street is becoming an electronically based e-commerce utopia, except its leaving the High Street for the virtual world.
What you are mostly buying from nowadays, is an 'Amazon type model', a warehouse stock and despatch system, fronted by an attractive website. A robot.
What you are mostly buying from nowadays, is an 'Amazon type model', a warehouse stock and despatch system, fronted by an attractive website. A robot.
That's the new reality. And this is why it works for a number of reasons...
As an employer, you need minimum staff, they don't have to be that educated, just able to pick and scan items, box, pack and despatch. Its all automated.
The computerised front end handles all your transactions, does the Math and presents you the customer, with the bill.
It automatically monitors stock, allocates stock and does the work of many workers, 24 hours a day.
It also alerts and can order new stock to maintain minimum levels, it can work 'Big Data' and communicate across many levels to suppliers and manufacturers even.
It automatically monitors stock, allocates stock and does the work of many workers, 24 hours a day.
It also alerts and can order new stock to maintain minimum levels, it can work 'Big Data' and communicate across many levels to suppliers and manufacturers even.
Also, this retail wonderment is often based on some industrial park, away from the high costs of a prime retail slot. Where the land is cheaper and the business related rental and purchase costs are too.
Another benefit to the on-line companies is the multiple 'buy and try' scenario, where people can buy a couple of sizes of a garment and return the ones that don't fit.
And in these size conscious days, a person of shall we say more 'robust' stature can try on things in their own home and feel better and under less pressure from a human assistant.
And in these size conscious days, a person of shall we say more 'robust' stature can try on things in their own home and feel better and under less pressure from a human assistant.
The warning here is, that this is the way that most of our retail is going to go if it hasn't already.
With lots of 'consumer porn' review and unboxing videos of items to hand on-line, either on websites or youtube, you can see up close what the items look like and this saves you the hassle of driving to the town, parking, going to find the item, which may not be in stock there and then driving home once purchased.
Think of what you saved, money, fuel and time.
So this is why this Amazon style model makes sense and more so when you consider the algorithmic add-ons where you see 'you might also like' suggestions that tempt you to part with more of your hard earned. For the retailer, it is a 'win win' situation.
Grace Brothers is well and truly dead.
Mrs Slocombe's Pussy has well and truly left the building.
Mrs Slocombe's Pussy has well and truly left the building.
So what will happen to the High Street? I mean there's only so many coffee shops and charity shops it can accommodate?
So if you're a retail premises landlord, are you worrying? I would.
No comments:
Post a Comment