Sipping an opportunity?

The Financial Times this week contrasted the success of Costa Coffee in opening its 1,000th UK coffee shop and the failure of Starbucks, which is due to shut 30 outlets, and quotes analysts who say that the secret was in getting the marketing message correct. While Starbucks were telling shoppers that "summer's back", Costa was saying "Try our great value lunch, £4.95 for a sandwich and any drink"!

However, the report goes on to say that all the chains may face a threat from "edgier" independent operators in the UK market as shoppers look for something new. This suggests that many coffee shop regulars are making a statement about themselves in choosing what they drink and where they are seen to drink it. (If fashion is so important it may also explain why 54% of shoppers think coffee is overpriced.)

For the local shop, the continued strength of these chains with their "overpriced" coffee, must mean an opportunity to offer good drinks at a more affordable prices. Perhaps, some local shops will also see the chance to offer an "edgier" alternative!

Comments

Three secrets of great merchandising

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Busy street, empty shop, missed profits

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Sticks and stones do hurt

My 17 year-old son returned from a rock festival this week wearing a wristband proudly declaring him 0ver 18. He explained how easy it had been to use someone else's ID to get the identification and said it was ironic that he had not needed to show the over 18 band when buying alcohol. Today, Scottish retailer Abdul Qadar is complaining that public authorities are asking people to lie about their age when making test purchases. What trading standards officers may be forgetting is that the fact that retailers invest in a business premises and trade consistently from it make their job much, much easier. The alternative, a world of markets and itinerant traders, will be far harder to police. Mr Qadar's sense of injustice is fair. Those retailers, like Mr Qadar, who value their investment will seek to trade legally and will not sell alcohol to people under the age of 18. Asking children to lie about their age to local traders is a slander on all retailers.

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