Where Have all the Customers Gone?
Discussion
Morning All,
Our family business has two retail outlets and have easily experienced the worst 6 months of sales we've ever had. It would be easy to dismiss this as 'Oooh well there's a recession you know' but up until July last year we were doing ok, then it's as if someone turned the taps off.
Having spoken to many of the businesses (retail) local to us, which vary from Coffee shops to fashion, hardware to florists everybody seems to be experiencing the same thing. Since Christmas all sales are significantly down year on year.
We are based in the West Midlands.
Is anybody else experiencing the same as us and what do you reckon is causing it. Obviously I have my own theories, I'm just amazed that this year just hasn't started for us at all yet when it really should have done by now!
Thoughts on a postcard!
Ben
Our family business has two retail outlets and have easily experienced the worst 6 months of sales we've ever had. It would be easy to dismiss this as 'Oooh well there's a recession you know' but up until July last year we were doing ok, then it's as if someone turned the taps off.
Having spoken to many of the businesses (retail) local to us, which vary from Coffee shops to fashion, hardware to florists everybody seems to be experiencing the same thing. Since Christmas all sales are significantly down year on year.
We are based in the West Midlands.
Is anybody else experiencing the same as us and what do you reckon is causing it. Obviously I have my own theories, I'm just amazed that this year just hasn't started for us at all yet when it really should have done by now!
Thoughts on a postcard!
Ben
This might sound odd, but I honestly think a lot of people did their brains at Christmas this year, and are now starting to pay for it....
We had a ridiculously busy Christmas period, and now at the time of year when things start picking up again, it's a little slow so far.
I honestly don't know what more you can do to get people spending, just sit tight and hope for the best I guess.
I would bet you're far from the only ones up and down the country in the same situation.
We had a ridiculously busy Christmas period, and now at the time of year when things start picking up again, it's a little slow so far.
I honestly don't know what more you can do to get people spending, just sit tight and hope for the best I guess.
I would bet you're far from the only ones up and down the country in the same situation.
We have noticed a changing trend from spending on Credit cards to debit card. It certainly appears to be the case that people are only prepared to spend what they have rather than what they can pay back.
And of course any of those who are fortunate enough to have accumulated savings are at the moment making b****r all on them and so aren't spending it.
Am I the only mortgage owner that is awaiting a wonderful rise in interest rates?? Ha ha
And of course any of those who are fortunate enough to have accumulated savings are at the moment making b****r all on them and so aren't spending it.
Am I the only mortgage owner that is awaiting a wonderful rise in interest rates?? Ha ha
Hi there,
Although it's very simple to just say 'it's becuase of the recession' which is what you'll mainly hear, there is a little more to it than just that.
No one has a firm idea as to why, that's impossible - however I think looking at it logically which I think you have done in order to base your theories on it's a combination of various factors. The following are some of mine
1. It's 'FINALLY' happening that the general population of the UK are realising that debts have to be paid back. The shocking statistic from a few years ago is that UK consumers had more debt on their personal credit cards than the WHOLE of Europe's similar consumers COMBINED! - these people who lived wildly beyond their means by sticking the latest 50 inch TV and having 2 holidays a year and bought other items far in excess of their income are the ones now figurativley speaking - crying. Unfortunatley, this 'section' of the UK consumers is a vast proportion of the total population.
2. The Media - Absolutley has a hand in it with various reports which seem to change message and direction instantly, depending on which TV Channel you watch or Internet article you read. "house prices up by 3% says halifax" in one heading, and "Property Values shrunk by 5% says analysts" on another. Average Joe public thinks well, i'm beng offered X or Y I'm just going to go for it, or thinks now's not a good time, I'll wait it out. So an element of confusion is in existence here.
3. With the economy down in the dumps, many people have come to realise that their jobs are NOT secure. Nothing is secure in business, the UK population has this belief that jobs come first in any business and that so long as they're working all is ok. So confidence is shaken right at the root level. We all know this trend is likely to continue as more companies shrink themselves or shut down completely.
4. More and more people are staying in, and battening down the hatchet - cinema attendance is down, DVD rentals are up. People are now tuning into the news and seeing more of the reports and starting to take an interest. We're only a few months away from the Election now, yet 2 months ago, there wasnt'much hype about it. In comparison to other countries where the elections are a very central focus for a long time prior, here in the UK it's begrudgingly acknowledged.
Theres a few more elements - my background is Financial IT, mainly on the systems and consulting side and I've covered things from the small one man business right up to the biggest nvestment banks in Canary Wharf. It's allowed me a view into each segment of the UK finances (from an IT and software etc viewpoint) and I'm utterly shocked at just how little regard overall there is in the UK with it's attitude to personal finances. The two big software companies have withdrawn their development for personal finance software - why, simple, becuase mr UK average joe public has no desire to do something so boring yet so necessary - they'd rather go down the pub or buy the latest fashion or something.
All leads really to people spending less, either through forced circumstances, or in a smaller case, by choice. Bills, costs, utilities, taxes are all heading upwards, disposable income is ever decreasing so the net effect is less people on the high street.
The effect may be more pronounced in your area for you to say 'taps have been turned off' - but it's to that effect most places else in the UK
I'll also put another statistic I found out around 12-15 or so months ago which shocked me. The UK has a workforce of around 27-29 million people. Currently around 2 million (I cant quite remember the official figures right now) are unemployed. However, of that workforce just a paltry 3.8-4 million (circa 9-10%) are in the higher tax bracket. I was shocked, I thought the figure would've been significantly higher. This means that circa 88-90% of the UK workforce is on a salary less than the threshold figure of around £39K p/a, I'd also say a very large proportion of those jobs are in the 17K-30K bracket and as the salary levels rise, less and less jobs are available.
Typical average UK household income also puts that into focus even more with the 2008/9 figures showing around £30,000 as the figure.
Most things at the high street taken for granted as purchases have rapidly been re-classed as 'luxuries' - the taxes, food,utilities, mortgage, rent etc have all started to take priority over buying the TV or a new car or Shoes ...
Lastly, it's very very very easy for the public to blame the banks, the banks find it 'easier' to blame the government and the government can't blame anyone. The truth is, each section has caused this recession, joe public in the UK for not really having any common sense in knowing debts need to be paid paick, the banks for allowing stupid borrowing multiples on mortgages and throwing money around like aftershave or perfume and the government for not regulating things tighter.
It's going to be a tough tough next few years at the very least.
There are brighter notes, I'm glad there is a growing number who are becoming much more financially savvy also a number who are taking things by the horns and diversifying themselves, I'm lucky enough to know a very varied and diverse set of family, friends and ex work colleagues and there is the signs the green shoots of recovery aren't far off for some.
Sorry for the long post - any feedback and ideas, both negative and positive are warmly welcomed!
Cheers, Dennis! West London & Slough UK!
Although it's very simple to just say 'it's becuase of the recession' which is what you'll mainly hear, there is a little more to it than just that.
No one has a firm idea as to why, that's impossible - however I think looking at it logically which I think you have done in order to base your theories on it's a combination of various factors. The following are some of mine
1. It's 'FINALLY' happening that the general population of the UK are realising that debts have to be paid back. The shocking statistic from a few years ago is that UK consumers had more debt on their personal credit cards than the WHOLE of Europe's similar consumers COMBINED! - these people who lived wildly beyond their means by sticking the latest 50 inch TV and having 2 holidays a year and bought other items far in excess of their income are the ones now figurativley speaking - crying. Unfortunatley, this 'section' of the UK consumers is a vast proportion of the total population.
2. The Media - Absolutley has a hand in it with various reports which seem to change message and direction instantly, depending on which TV Channel you watch or Internet article you read. "house prices up by 3% says halifax" in one heading, and "Property Values shrunk by 5% says analysts" on another. Average Joe public thinks well, i'm beng offered X or Y I'm just going to go for it, or thinks now's not a good time, I'll wait it out. So an element of confusion is in existence here.
3. With the economy down in the dumps, many people have come to realise that their jobs are NOT secure. Nothing is secure in business, the UK population has this belief that jobs come first in any business and that so long as they're working all is ok. So confidence is shaken right at the root level. We all know this trend is likely to continue as more companies shrink themselves or shut down completely.
4. More and more people are staying in, and battening down the hatchet - cinema attendance is down, DVD rentals are up. People are now tuning into the news and seeing more of the reports and starting to take an interest. We're only a few months away from the Election now, yet 2 months ago, there wasnt'much hype about it. In comparison to other countries where the elections are a very central focus for a long time prior, here in the UK it's begrudgingly acknowledged.
Theres a few more elements - my background is Financial IT, mainly on the systems and consulting side and I've covered things from the small one man business right up to the biggest nvestment banks in Canary Wharf. It's allowed me a view into each segment of the UK finances (from an IT and software etc viewpoint) and I'm utterly shocked at just how little regard overall there is in the UK with it's attitude to personal finances. The two big software companies have withdrawn their development for personal finance software - why, simple, becuase mr UK average joe public has no desire to do something so boring yet so necessary - they'd rather go down the pub or buy the latest fashion or something.
All leads really to people spending less, either through forced circumstances, or in a smaller case, by choice. Bills, costs, utilities, taxes are all heading upwards, disposable income is ever decreasing so the net effect is less people on the high street.
The effect may be more pronounced in your area for you to say 'taps have been turned off' - but it's to that effect most places else in the UK
I'll also put another statistic I found out around 12-15 or so months ago which shocked me. The UK has a workforce of around 27-29 million people. Currently around 2 million (I cant quite remember the official figures right now) are unemployed. However, of that workforce just a paltry 3.8-4 million (circa 9-10%) are in the higher tax bracket. I was shocked, I thought the figure would've been significantly higher. This means that circa 88-90% of the UK workforce is on a salary less than the threshold figure of around £39K p/a, I'd also say a very large proportion of those jobs are in the 17K-30K bracket and as the salary levels rise, less and less jobs are available.
Typical average UK household income also puts that into focus even more with the 2008/9 figures showing around £30,000 as the figure.
Most things at the high street taken for granted as purchases have rapidly been re-classed as 'luxuries' - the taxes, food,utilities, mortgage, rent etc have all started to take priority over buying the TV or a new car or Shoes ...
Lastly, it's very very very easy for the public to blame the banks, the banks find it 'easier' to blame the government and the government can't blame anyone. The truth is, each section has caused this recession, joe public in the UK for not really having any common sense in knowing debts need to be paid paick, the banks for allowing stupid borrowing multiples on mortgages and throwing money around like aftershave or perfume and the government for not regulating things tighter.
It's going to be a tough tough next few years at the very least.
There are brighter notes, I'm glad there is a growing number who are becoming much more financially savvy also a number who are taking things by the horns and diversifying themselves, I'm lucky enough to know a very varied and diverse set of family, friends and ex work colleagues and there is the signs the green shoots of recovery aren't far off for some.
Sorry for the long post - any feedback and ideas, both negative and positive are warmly welcomed!
Cheers, Dennis! West London & Slough UK!
Deniis thank you for your considered reply and I would have to agree with you on pretty much each point - except the bit about spending money on fashion ha ha.
A point that I think also has an effect, and probably shouldnt be overlooked is the weather. Especially in fashion and footwear - seasonal variation must play a part in it.
If it were warm and sunny (as it was from the very beginning of March last year) then Joe Public would be inclined to shun their heavy winter coats and boots and put something lighter on. As we know products do not last forever and so new clothes would need to be bought. There must be other examples of this around aswell.
what I have found interesting is that the public still buy into 'commercial'red letter days. Mothers Day for example.
A freind of mine (over the road) runs a gifty type shop and in asking what she had been selling of late and asking the eternal question.. "Have you been busy?" she explained that shed had, but it'd all been gifts and cards for mothers day. Peculair how we can still conform to what we are 'expected' to do on certain days even when we can't actually afford to do so.
Not that I would say that Mothers don't deserve a day of pampering you understand... I'm not that stupid!
A point that I think also has an effect, and probably shouldnt be overlooked is the weather. Especially in fashion and footwear - seasonal variation must play a part in it.
If it were warm and sunny (as it was from the very beginning of March last year) then Joe Public would be inclined to shun their heavy winter coats and boots and put something lighter on. As we know products do not last forever and so new clothes would need to be bought. There must be other examples of this around aswell.
what I have found interesting is that the public still buy into 'commercial'red letter days. Mothers Day for example.
A freind of mine (over the road) runs a gifty type shop and in asking what she had been selling of late and asking the eternal question.. "Have you been busy?" she explained that shed had, but it'd all been gifts and cards for mothers day. Peculair how we can still conform to what we are 'expected' to do on certain days even when we can't actually afford to do so.
Not that I would say that Mothers don't deserve a day of pampering you understand... I'm not that stupid!
maser_spyder said:
This might sound odd, but I honestly think a lot of people did their brains at Christmas this year, and are now starting to pay for it....
We had a ridiculously busy Christmas period, and now at the time of year when things start picking up again, it's a little slow so far.
We mirror that (Retail electronics.) Customers were so bent on getting in before the VAT increase to save their £10 I think everyone has maxxed their credit limits (and are now ironically paying more than the £10 they saved on the VAT increase in interest.) January was painful.We had a ridiculously busy Christmas period, and now at the time of year when things start picking up again, it's a little slow so far.
Yes January was painful for us also, mainly because during our main 'Sale' period it snowed and nobody ventured out for about 3 weeks.
And in general I agree with Dennis think that the media are sending out such mixed messages about the how the economy is improving etc that it has generally confused folk into a state of inactivity.
And in general I agree with Dennis think that the media are sending out such mixed messages about the how the economy is improving etc that it has generally confused folk into a state of inactivity.
Whilst it's fair to say that e-commerce is a growing market and that 'Silver Surfers' are on the increase also I'm afraid footwear is still an area that benefits from the element of 'needing to try them on' and whilst it appears to be not only sales which are currently down but also footfall I can't buy into the idea that it is purely internet sales that the cause of this quiet spell.
Ha ha ha,
Well funnily enough when we were in the process of opening our 2nd shop I parked the car in a loading bay to unload carton upon carton of shoes. After making a trip to the shop and back again I discovered a cretinous individual scrawling out a parking ticket, he claimed I was working quickly enough!
Well funnily enough when we were in the process of opening our 2nd shop I parked the car in a loading bay to unload carton upon carton of shoes. After making a trip to the shop and back again I discovered a cretinous individual scrawling out a parking ticket, he claimed I was working quickly enough!
anonymous said:
[redacted]
I've been on this bandwagon for years!We have an organic veg box weekly, which is a large amount of our food for the week. It's delivered to our door, they recycle all the packaging by collecting the next week on drop-off day. Simple.
We do still shop at supermarkets for odd bits, but are really trying to buy more local wherever possible. It's actually not that hard.
Supermarkets will be the end of 'choice' if we allow it.
Gassing Station | Business | Top of Page | What's New | My Stuff