The retail credit game!

The retail credit game!

In the days when Edgars Truworths and Foschini were the retail kings in South Africa, most shoppers had a clothing account at one of those stores or more likely they had an account at all three. Having a clothing account was the accepted normal practice, families would buy merchandise and at the end of the month make a payment of one sixth of the account balance. After three correct payments the retailer would increase the customers open to buy or credit limit, and the cycle would continue. Businesses were built…

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Has Edgars lost the plot completely

Has Edgars lost the plot completely

Retailers spend large amounts of money on visual material mostly with the objective of creating an exciting environment for thier customers to shop. Large lifestyle visuals, logos and graphics to highlight the latest trends and seasons fashion direction. Often visuals are used to promote certain product sometimes good value items. While browsing in Edgars recently I was amazed at how poorly the store had utilized the price point visual display cards. Not sure what they were trying to say, but certainly left me totally confused. Firstly I came across a…

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Clicks-Explain this one!

Clicks-Explain this one!

Xmas spending is over and now is the time retailers launch into sale to clear end of season merchandise and often old stock. In principle when I buy a sale item I want to see the WAS price and the NOW price to make me feel good about the bargin that is available to me. Not so at Clicks!…… On the 30th December 2016, my wife went to Clicks to buy some sale cosmetics, i.e. nail polish/lipsticks etc. At the Sale display where visuals shout out “SAVE UP TO 50%”…

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Retail success – directly related to Exco management team!

Retail success – directly related to Exco management team!

Retail performance is directly related to the abilities of the executive management team. Successful retail chains have one thing in common, a management team who are in sinc with the needs of the business. When egos and insecurities take second place, those operations will thrive and move ahead. Retailers who have insecure managers only interested in themselves are sure to stumble and fall eventually. Leaders who inspire performance from the team understanding the need to motivate and generate excitement. Unfortunately retail companies who have a senior manager at the helm…

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You choose!

You choose!

The 16th December 2016 being a public holiday and nine days before Xmas, saw many retailers deciding to offer incentives to attract customers. I was in one of our malls and noticed Cotton On had a one day only special. –  40% off all ladies, men’s and homeware merchandise. Now this is a really genuine opportunity for consumers as the 40% discount is on the total range not just the slow sellers that the retailer usually has selected to suit them and not you. The result to me looked like…

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Kelso ! – Really

Kelso ! – Really

Kelso is a clothing label we are all probably familure with, but don’t really consider it to be a brand. It’s more of a label stitched in the inside of the garments where no one can see. We certainly don’t want to wear it as a logo as we would Guess or Nike etc. Kelso belongs to Edgars and has been around for decades, being the merchandise label which is used to identify the house brand. In its day it was the dominate department in the store, generating the best…

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Retail Today- What is really happening!

Retail Today- What is really happening!

It’s not the first time I have written about the changing retail landscape in South Africa and I am sure it will not be the last, as the metamorphosis continues. If we go back +/- five years, the change process had already started. Edgars were involved in a private equity deal which had massive impact on revenue and the business started to drown in debt, loan repayments etc. Senior management made some critical errors with the merchandise direction and started flooding the stores with expensive branded product the South African…

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Edgar’s – Numbers tell a story.

Edgar’s – Numbers tell a story.

Edgars have just released a 1Q17 trading update which both confirm and highlight the state of the business at this time. Sales fell -8.1% to R6 billion. Cash sales fell -2.7% and credit sales fell by -15.6%. Gross profit margin decreased to 36%. Management is blaming the following for the shocking results…. 1. Restructuring taking a lot of managements time. 2. Supply interruptions. 3. Reduction in office staff. 4. Late onset of winter. 5. Timing of Easter. This indicates just how far off reality the executive team is if it…

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Keedo kids fashion – Proudly South African!

Keedo kids fashion – Proudly South African!

If you are looking to buy your kids great quality merchandise made from natural fabrics with the added bonus of being manufactured in SA, then shop at Keedo retail stores. This business is one we can all be proud of employing over 100 South Africans at its factory in Paarden Eiland Capetown.  Supporting this retail chain keeps the profits in SA rather than leaving the country  as what happens when you purchase from brands such as H&M, Zara, etc. The babies department  0 to 3 months is definitely a strength in…

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Are retail stores really trying to generate a sale!

Are retail stores really trying to generate a sale!

On Monday 20th June 2016, the day after “Fathers Day” I decided to go do a little shopping to try and gauge if retail stores are serious about making a sale and deliver a great customer experience. Arrived at Tygervalley at 12h10 and was glad to get into the mall from the cold rainy weather outside. First store to attract me over the threshold was Cape Union Mart. Always a great store to shop in when  the cape winter is blowing a gale and temperatures are dropping. In the middle…

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