Online retailing fluctuates

Online shopping is fluctuating this year, which a growth of 15.7% in July compared to June, but a 10% fall in August to a value of £3.8bn. The goods given as the drivers of these rises and falls show which items we buy most online: the main reason for the August drop was lower sales of alcohol due to the wet weather causing barbecues to be cancelled (and also lingerie – can anyone suggest a seasonal reason for that one?) although online sales of shoes were up by 3%, thought to be due to parents buying back-to-school shoes ready for September. July’s increase was largely down to clothing with internet stores becoming better at converting browsers to shoppers – retail research showed that one in every 15 visits to a clothing shopping site resulted in a purchase – and electrical online sales were up by 11%. However, the increases were probably driven by heaving discounting and promotions so don’t necessarily indicate a boost to the profits of the providers. On the other hand, as we head towards a difficult Christmas retailing period for the second year, those who are establishing their online presence through discounting to penetrate the market may be using clever tactics.

A personal look at the man behind the label - Sir Stuart Rose

A fascinating, in-depth and intensely personal interview with Sir Stuart Rose - highly recommended.

A Great Overview of the UK Retail Sector’s Problems

There is an excellent analytical piece in the Observer this morning which looks at the challenges facing the UK retailing market…

Can Fresh Management Save JJB Sports?

JJB is one of several struggling national retail chains.  It has just appointed new senior management in a last-ditch attempt to recover profitability and generate enough cash flow to service its large bank debt burden.

Video case study - Poundland

Here is the first in a series of new support resources for business teachers who like to use short video clips as a starter or homework activity.  This video clip focuses on the boom in business being experienced by discount retailer Poundland.  Excellent for any lesson on the credit crunch, retailing or market positioning generally.

Download worksheet with student questions (includes link to video)

Print advertising takes the hit as advertisers cut back

As the economy slows and businesses look to make cost savings, its interesting to see where they look to cut back.  The amount spent on advertising looks particularly vulnerable to some cuts…

When the partnership structure doesnt work well for a start-up

A great case study in the Telegraph recently would be a useful support resource for explaining how chosing a partnership structure for a start-up often isn’t the best option…

The History of Retailing

BBC Radio 4’s In Business programme considered in a recent programme the history of retailing

“In this week’s In Business Peter Day looks at the history of retail in the UK and what new ideas about shopping are being designed to tempt the buying public”

listen again by following this link

End of an era for supermarket retailing

This week marks a landmark for the UK grocery retailing market.  Sir Ken Morrison (pictured above opening a new Morrisons store) is retiring as chairman of the business founded by his father after over 55 years in the industry.

Times up for Asda’s 4 year George Trial

How long should it take for a major retailer to decide whether a new format has what is takes to be a winner.  In the case of Asda, it has taken over four years to determine the fate of standalone fashion brand “George”.