What SME's can learn from WHSmith and Woolworths.

Christmas has been and gone, as we all know a big historic brand of Woolworths left the high street a fews years and in my opinion unless they make major changes another might be WHSmith. 

The key reason that Woolworths failed is that they lost sight of who the customer was and most of all the change in high shopping and the big supermarkets. Woolworths were stuck in the past and WHSmith to me are also living in the past.

Both Woolworths and WHSmith seemed behind their competitors getting into internet shopping. So these are also some of the key issues that affect WH Smith.

First key issues is being aware of what customers want and to be able to change your mix of products or services and methods of selling. 

If you look at WHSmith their core products are books, newspapers, magazines, stationery products and DVD'S / music and if you think about it they are positioned in very expensive high street locations. 

Over the last decade shopping habits have changed so people do "onestop" shopping in big supermarkets. All the core WHSmith  products can be sourced for large supermarkets. They may not have the range but do sell the key core best sellers in books etc.

Within the music market the supermarket has destroyed the high street sales. Another area in music sales is the amount of retail download sales ie Itures. So again WHSmith have lost out there by not embracing change in technology.

As for stationery shopping again the high street has changed over the years with the likes great retailers like Rymans who use more cost effective retail units.

Also another key fact is the increase of internet shopping, this is where WH Smith lost a lot with in the book market. Amazon who only started in 1994 in the USA have used technology to take the majority of book sales in the UK. How many websites do you see with Amazon promotions running? 

One of key advantages in using technology is that Amazon will have better stock control and less money tied up in dead stock.If you think how many retail units that WHSmith have, how much stock they have to stock just to keep their shelves looking full. So if you are running a retail business make sure that you keep your stock levels right and review all products, if not selling just promote and discount to turn the product back to cash.

Make sure that your marketing and point and sale looks right, over Christmas the point of sale that was in the windows of WHSmith in the Westfield in Derby just looked so boring and lacked any punch.

So what can the SME market learn then?

Understand who your customer is and what they want to buy.

Embrace technology, make sure that you can sell, promote on line. Today don't think local think global!

Always keep reviewing what you are doing right, but find out from customers where you can improve.

Always beware of what your competiors or doing and what there strenght and weekness's are. Then you can plan your marketing.

Make sure that all your marketing, advertising, point of sale stands out, looks professional and most of all works.

I hope that the directors, management and staff can sort out WHSmith as it would be sad to see the loss of another historic British brand dating from 1792.