TPS Latest News

Independent Retailer Month July 2024

This month we’re encouraging people to shop at independently owned and operated businesses. With ecommerce at our fingertips, this doesn’t have to be a trip to a shop – You can also support independent retailers all over the world by shopping online.

The concept of ‘Indie’ Retailer Month is to support small businesses and independent retailers of all sizes. Across the globe, individuals, families and small business partnerships provide a valuable contribution to our communities as well as the economy.

Independent retailers often have stories, values, and community connections that big chains lack.

At the start of 2023 there were 5.6 million small businesses in the UK. 10% of these are in wholesale and retail trade.

Small and medium sized businesses account for 61% of total employment, the UK also has 3.1 million sole traders. SME’s contribute 53% of turnover in the UK private sector (£2.4 trillion)

Independent retailing incorporates many types of business – coffee shops, gift shops, bakeries, barbers, beauty salons, convenience stores/fresh produce suppliers and retailers, pet shops, music, sports, jewellery, home products, DIY, florists, garden centres, furniture, books, art and fashion retail, then there are trades with stores, such as mechanics (garages) and also franchises.

Physical stores

There is no doubt that small businesses are the backbone of our high streets. Shoppers spend around 50% longer in physical stores compared to online stores. For consumers being able to feel and see products can make them more certain on whether to buy them.

In an independent shop the product selection and shop policies reflect the owners personal touch and commitment to customer satisfaction. These shops offer a personalised customer service and deliver a unique and distinctive shopping experience.

But a digital presence is vital to attract customers: businesses need a robust digital footprint, ideally this would be a mobile-responsive website and an ecommerce sales platform. This broadens the customer base beyond geographical limitations, reaching a wider audience and operating 24/7.

Omnichannel sales

With drop shipping and ecommerce, independent online retail has become a “quick-to-start” business option.

Product development still takes time, but the distribution suddenly got much easier — and the whole world is your market!

The best retailers are able to combine online sales with their store experience.

Online retailing is a highly effective option and with platforms such as Shopify it has never been easier to set up online retail.

Outsourcing order fulfilment can be the most cost effective and reliable way to ensure you meet your customers’ expectations. You can manage inventory and concentrate on your products and customers from your workplace, leaving the logistics to a third-party supplier/3PL.

At TPS we offer flexible and affordable storage and fulfilment packages. We can also take care of your entire supply chain including freight shipping. We can deliver your products from manufacturer to customer, you liaise with just one TPS account manager.

Top Tips for Independent Retailers

Independent retailers face distinct challenges in the marketplace, from intense competition to complex supplier dynamics and economic fluctuations. Addressing these issues requires strategic thinking and innovative solutions.

1. Offer unique products: Items not found on Amazon can attract a niche market.

2. Enhance customer experience: Personalised service and a community feel can retain loyal customers.

3. Supplier relationships are vital: building relationships with suppliers can help to negotiate better rates, or buying collectively as part of a retail group can improve bargaining power.

4. Identifying your niche and your customer is crucial: Your target audience is a specific group of customers most likely to purchase your products. By understanding their needs, preferences, and behaviours, you can tailor your marketing efforts to resonate with them directly.

5. Build your brand: and ensure your visual elements and messaging are authentic and true to your brand identity and values

The demise of Woolworths – Diversify your business or die

Woolworths should never have failed. For nearly 100 years Woolworths made money and was without a doubt one of the most iconic and well-loved high street retailers in the UK.

So how did it fail?

Losing focus on the customer – Woolworths refreshed its stores and widened its product range to suit the modern consumer, but trying to stock everything led to supply chain issues.

Incorrect stock levels lead to money ‘trapped in stocks’ and shelves stacked with unseasonal or the wrong products for their consumers.There was too much of some and not enough of other products.

This lead to cash flow issues, which coupled with rising debt, meant credit was withdrawn, so it had to pay suppliers immediately. Meanwhile footfall dropped from 7.5 million in 2000 to around 4.5 million in 2007.

As the internet and sites such as Amazon emerged Woolworths lacked a digital presence and was simply left behind by the informed consumer who demanded a wide choice and quality but at the right price.

Another popular product range which took a hit was CD, DVD and video game sales as consumers headed to the internet, switching over to download sites such as iTunes and on demand services such as Sky and Netflix.

What Woolworths did not expect is that it would have to compete with the budget stores such as Wilkinson and Poundland, as well the traditional big grocers such as Tesco and Asda who expanded into Woolworths core products such as children’s clothing and household items.

By the time the 2008 financial crisis hit, Woolworths had left it too late to turn business around and implement technology to boost sales.

“Woolworths wasn’t at the forefront of consumer technology and it’s so important to be looking 10, 20 years into the future – it takes a long time to prepare.” small business growth expert Claire Hancott

 

The lesson learnt is that it is crucial to understand your customer, ensure your supply chain is optimised, that you are in close control of your stock, and you understand seasonal peaks and troughs.

This is easier than ever with all the technology available for online management tools.

 

 

Delivering affordable retail supply chain and ecommerce solutions are what we do best. Our warehouse pick and pack teams, software systems, strategically located warehouses and transport network can support all your storage and distribution needs.

Our software and online management tools are compatible with all e-commerce platforms. So you can manage inventory, track and trace deliveries, access shipping reports, delivery documents and book collection and delivery times for your goods.

Call us+ 44 (0) 1622 237 979 or request a quote 

Previous Post
Peak Season has arrived a month early
Next Post
Tesco Marketplace | Ecommerce Fulfilment