Sunday 27 November 2016

Home deliveries Small Beer? Heineken doesn't think so, is this another blow to the High Street retail model?

Heineken, deliveries now reaching the parts other beers are apparently not

We have seen recently the demise of BHS, from a High Street presence to an ethereal on-line business model.

The loss at BHS of 164 stores and 11,000 staff, replaced by likely a single large warehouse and perhaps 100 staff in an Amazon-like model, shows how the jobs market is contracting and business is changing.

The writing is on the wall, you need an on-line presence or you are unlikely to survive, unless you have exclusivity and a loyal customer base. But you'd be in the minority.

The way business is changing its operating mode, is all contributing to the 9 million job losses by 2026 we are faced with, thanks to automation, robotics and changing business practice models, retail included.

The late Sir John Harvey Jones
an opponent of 'least cost option' business models

Lean practice 'least cost options' are the barrel scrapings that should be a wake up call to businesses, if they are in that state, then they are in trouble. If they are not growing and retaining staff, they should take note.

I see a fair number of the same jobs advertised time and again and the question is why? Is the company that prosperous and growing it needs to meet demands, or is it a crap place to work for and managed by tossers with no idea what they are doing?

Anyway, back to the script and here's a new business model for the on-line age.

Now Heineken is proposing home deliveries in the London area within 20 minutes of order, direct to the customer's home from direct sales on-line. Will other manufacturers follow suit?

So what impact will this have on the retail drinks trade, which I worked in many years ago and for other companies and retailers, how will this impact on their markets?

If successive drinks brands for example adopt this model, the small, independent wine and spirit retailers could be faced with the choice of going totally on-line or hanging on to their walk-in trade model, if that is viable.

My old drinks trade employer did home deliveries in the shop locales and also to local businesses and restaurants, this was back in the pre-internet era when life was so much less complicated. This business has since ceased trading.

We have seen chains such as Threshers, one of our old customers, cease trading too, perhaps due to the availability of drink sold through supermarkets, who have better purchasing power and greater opening hours availability.

If this High Street trade ceases, the questions will be what will happen to the old premises, the people who have lost jobs and the future for the High Street?

The answers look to be a growth in on-line living, proxy living will order your food and drink for you, jobs will be lost and alternatives needed and the High Street will cease to exist as we know it.

Basic Income Guarantee payment will have to come in to provide the financial safety net, perhaps people will be freed up to cottage industry styles of work.  

So we are now seeing the tangible results I have long been predicting coming into play. We must without delay review our way forward so that we can have some idea how we will live in the future.

These changes may like small beer today, but we are only seeing the start of things.

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