On the day that Tesco unveiled a great set of financial results I was with a south coast independent retailer who says the major competitors for his three local shops are two Tesco Express stores. At the same time he says his business is booming. If in Tesco's model it is always reassessing the top 100 lines and giving shoppers their favourites if they make the top 100, my friend says he serves his shoppers with what they want, including the "just-delisted" and me-toos at good prices that he has nimbly sourced. This seems to be a sustainable business model but may be not as easy to achieve as my friend makes out!
True in part to my New Year resolution, I held a business meeting in an independent coffee shop today just next door to a Starbucks. The cafe was presented well and four staff were busy preparing for the lunchtime rush, at 11am. As my guests were late, I had a half hour overview of footfall on the street outside and in the restaurant. Six customers. Barely enough to form the queue in Starbucks or Pret-a-Manger just down the road. Plus one Italian girl who dropped off her CV. Some people stopped to look at the posters in the window and moved on. The owners seemed quite happy. When I left just after 1215, they were doing brisk trade. However, I have the impression that the business is not working hard enough. It could easily have managed 120 customers between 11 and 12, instead of 12. This is lost profit as the fixed overheads and staff costs are already in place. The owners are clearly busy - perhaps too busy to take time to look at the potential that their cafe has. What shou...
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