Period after payday is critical

On 20 June Paul Cheema told me how sales were: two good weeks, one OK week and one bad week. On Monday this week, Dalton Philips, chief executive of Morrisons, briefed journalists that this was a national trend, with grocery shopping being pushed towards the beginning of the month.

What is Morrisions doing? It is concentrating its marketing on the period between the 27th of the month and the end of the month.

What is Morrisons seeing? Big sales in week one and lower sales in weeks two, three and four. Shoppers are fillng their pantries and then trying to last the month. Mr Philips said the trend was evident everywhere outside London.

The average household budget is £100 lighter each month due to higher VAT, fuel and other utility costs. Shoppers are looking for value

Local shops need to watch for two things. One, the timing of supplier promotions. Two, if shoppers are going once a month to the superstore, can they win them for more top up purchases. Think about your buying patterns and make sure you have the stock available at the correct times to maximise your sales. For the alert and nimble operator, the market looks interesting.

Comments

Three secrets of great merchandising

Look at the ceiling and top wall of this McDonalds restaurant. There is a picture of two good looking healthy people having fun and some bright primary colours. Ask yourself what is the purpose of this picture? In the latest issue of Retail Newsagent in a feature on merchandising, Andrew Knight of RI tells its independent readers that they need to think about using sharp pictures of non-packaged products linked to people consuming goods. Perhaps this has been taken to the next level by the fast food chain - that is selling the feeling of being happy and healthy rather than the products. A second, related tip from the same feature is made by most contributors - it is vital to keep windows clean and clear of clutter. "I believe that less is more," says Roli Ranger, a retailer from Ascot, Berkshire. He has posters for promotions in between the windows that are regularly updated and discreet signs in the windows. Third, a highly visible well-stocked promotion at the entranc

Overcoming a price disadvantage

Planning for his speech at the Independent Achievers Academy last week, Theo Paphitis asked an assistant to buy a basket of six essentials from a Tesco, a Londis (independent operator in a symbol group) and a One Stop (Tesco's CTN/convenience chain). Tesco was cheapest by a big margin. Second came Londis. The most expensive was One Stop. Mr Paphitis understands the power of the supermarkets and he says the way to counter them is to focus on how to make the experience of shopping with you more relevant to shoppers or more enjoyable for them. John Heynan, sales director of Molson Coors, told Retail Newsagent at about the same time that occasional beer buyers will pay 13 per cent more for their beer in an independent convenience store, provided the retailer targets them appropriately. Tesco has carved itself out this 13 per cent head start. Looking at pricing, if Tesco is 100, then Tesco Express is 108, One Stop is 112, a good symbol group is 115 and non-affiliated independents

A sign of retail stress perhaps

It must have been four months since this window was broken in the Tesco Express on Pentonville Road and I simply cannot believe that it has not been fixed. This is the sort of lack of focus that independent shops usually get criticised for. The only purpose in sharing this image is to encourage those independents with high standards who are finding the going tough that they can do better than this.

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