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Three reasons why paper books will last - or not!

I follow Todd Sattersten's blog as he wrestles with the arrival of e-books and how big they are going to be because he is watching the world for ideas and is sceptical of overheated claims. For local shopkeepers who sell newspapers, magazines and books, it is a useful source of intelligence. It is worth checking out his recent blog http://toddsattersten.com/2010/11/three-strange-perspectives-on-publishing.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ToddSattersten+%28Todd+Sattersten+%7C+Business.+Books.%29  in which he observes three things. First, that old media keeps on imaging how its business model will be successful on an e-platform, which involves lashings of wishful thinking. Second, how pundits keep on applying what has happened to the music industry to the book industry, which Mr Sattersten challenges as books are different to music. Third, and this one is a gem, is how do you lend an e-book. One of the great things about print on paper ...

Look on the bright side

Last weekend I spent some time discussing business with 10 local retailers from all parts of the UK. Their message was that sales are tough.  Probing further, they were saying that they were trading 10 per cent down year-on-year, on average. What were they doing about this? They were out in the market looking for new ideas, things that would work for their shops. However, many accept that progress will take some time. One shopkeeper told me how she could see her customers counting out how much money they had to spend before coming into her shop. While this was depressing, she is looking for ways to get them spending more. Yesterday, talking to wholesalers I heard them saying that sales were flat. While everyone in public wants to talk up how well they are going, they admit that many of their customers, the retailers are struggling. At the same time, across London, Tesco's new UK head was busy talking up how his company is performing. Christmas sales will be the best ever, he ...

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 ...

Where Tesco may be going next

Shoppers with an iPhone or iPad could soon be using their Apples to scan in groceries as they walk the aisles of Tesco supermarkets, Tesco.com head of digital Nick Lansley told Computing this week. His team has already developed home shopping apps, a Tesco store finder app and a Clubcard app. But the mission now is to consolidate to three: transactional apps, banking apps and an app for information on Tesco. What else is he working on? A mobile device for his in-store stockpickers that tells them where products are in the shops as they pick orders for Tesco.com. The current devices are on the carts that the stockpickers push around. The weakness of this approach is that the carts are bulky and its pickers would prefer to be able to walk nimbly around and bring products back to the carts when the shops are busy. Mobile devices fit the bill. And if you can make that device an iPhone? Of equal interest is the company's attitude to development. Instead of using outside compa...

Shelfstacker is a pejorative word

Pejorative is an adjective that is used to indicate a word with a disparaging connotation. When I say that shelfstaker is a pejorative word, I am not saying that people should not stack shelves or keep stock keeping units free from dust. What I am saying is that no true retailer should ever wish to employ shelfstackers. At the Independent Achievers Awards last night, Theo Paphitis, retailer and entrepreneur, asked the audience of local shopkeepers and trade suppliers who the most important person in his Ryman business was? The customer, said many. My staff, said Theo. Retail is fantastic, he said. As a youth, Theo learned about life and about business by running his school tuck shop. When the teachers complained to him about crisp wrappers littering the playground, he paid youngsters in crisps for every 25 packets they picked up. Where did he get the crisps from? From his supplier, who provided free stock once it understood his purpose. Retail is about working with your suppliers...

Fortune's shrinking bog roll

As commodity prices rise, so manufacturers seek to cut back on the raw materials that they use... The November 15 issue of Fortune illustrates this well with an analysis of Scott 1000 toilet paper. In 1995, a single sheet measured 4.5 by 4.5 inches. Four years later the sheet was cut to 4.5 by 4.1 inches while its maker, Kimberly-Clark made "softness enhancements". Seven years later, more "softness enhancements" plus a pattern added and the sheet is 4.5 by 3.7 inches. This August, a "10 per cent strength product enhancement" and, you guessed it, the sheet is 4.1 by 3.7 inches. The Cottonelle double roll reduced from 308 sheets to 260 in February. The Angel Soft Double Roll went from 352 sheets to 300 and reduced from 4.17 inches wide to 4.0 in April. Charmin Ultra Soft Big Roll dropped from 200 sheets to 176 in July. Quilted Northern Soft and Strong Double Roll went from 286 to 242 sheets in September. A year ago it went from 4.5 inches wide to 4.0. ...

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...