Thorntons shutting shops, what can we learn.

Confectionery firm Thorntons are going to shut about 180 shops across the UK. Some may be saved by becoming franchise shops.

In my opinion this has been on the cards for a very long time. The reason for this is that over the last few years they have devalued the traditional brand by creating products that are sold in supermarkets. At Christmas I even came across Thorntons boxed chocolates being sold at half price in a petrol station.

I can understand why they have extended the brand for volume sales, however in my opinion they have got it wrong. If they had no Thorntons branded shops then it would not have been an issue as it couldn't have devalued the brand.

What Thorntons need to do in my opinion is to split the brand, sell exclusive Thornton chocolates in their own shops only and to create a new brand for the supermarkets and volume sales.

The brand name which I think would work would be  "The Chocolate Cabin" but in very small print on the back of the packaging made by Thorntons. The Chocolate Cabin is a historic name used by the company in the past. Think about the split brand of Toyota and Lexus and how it works well for them ie. Toyota is seen as a volume brand and Lexus being the luxury brand.

When the brand has been split and the number of shops reduced then make the shops a great experience and create a wow factor.  May be learn for the French and in larger units add a Patisserie selling pastries and sweets.

This year Thornton's are 100 years old and from what I have seen of the point of sale, window display's and promotions in their shops I think it has looked very down market and has cheapened the brand.

Hope they sort it out so we have another 100 years from a historic UK business.

My thoughts about the high street.

We all went shopping yesterday into Derby City Centre and it's looking in my opinion that there is a another downturn in retailing, looks like lots more of empty units.

So these are my rambling of why I think high street is changing.

First of all many people are saying it's the recession that has called the down turn but I think that this is just one point and there are other major issues.

One thing the recession has done is to highlight the weaknesses in business in some well known high street names for example the retailer Woolworths who closed after 99 years, WHSmith and HMV who have been having to close stores and make big changes due to the change in shopping habbits and not embracing change (Blog here What SME's can learn from WHSmith and Woolworths)

Many pubs have closed as they have not move forward and changed to what people want. (Blog Why so many pubs are closing)

Landlords of retail units have not helped by setting rents too high and 3 month in advance rents. Retailers who have to pay 3 months in advance is very poor for cash flow. 

What some landlords need to do is to look at fair rents paid in 1 month in advance.Is it not better to be getting some money in at say 4% rental return and the retail unit rented out, instead of aiming for say 10% return but no tenant therefore no rent!!

So if you are looking at retailing a retail unit play the agents off to get the right deal, get a 3 month or 6 month rent free period. 

If the unit has been empty for say 12 months make them an offer, don't pay over the odds and get a contract that is right for you. 

Make sure that you get a break clause so that you are not tied into a lease that may not be right in say 18 months and take professional legal advice!

One thing that has happen to Derby like many other city's is the development of large shopping centre like Westfield. 

There are great plus points about these developments as they can bring great new brands to the city, undercover shopping so you don't get wet etc.

One thing that the likes of Westfield can do is to take the heart of the city. The shopping centres become a clone of any other city.

One great thing that Derby has done is to develop the Cathedral Quarter, which is a mix of retail, dining, history and accommodation etc based around the historic Derby Cathedral. The retailers are independents selling the products that in general you cannot buy in Westfield Shopping centre.

I know that we as a family have changed our shopping habits, we buy so much more stuff online, Online sales keep growing year on year. 

We buy most of our Christmas presents, music, books etc shopping with online retailers. 

So if you think about it how much do you now buy online?

Our holidays are sorted online so when we go to Crete, fights booked by Jet 2.com and accommodation sored by booking via Crete-escapes or if we go to France, ferry booked via P & O and accommodation booked via Owners direct. 

So what I am saying is that may people don't go into travel agents on the high street so thats why so many of those have closed. 

The power of the supermarkets has also killed the high street with there buying power, extended product range for one stop shopping and FREE parking. 

In my opinion governments and councils have given them an unfair advantage buy allowing free parking etc, change of road layouts which takes traffic way from town centre but to the supermarket, for example like what has happened in my home town of Matlock. It has killed the town.

So in my opinion the key reason for so many empty units is the mix of the recession and most of all the change in shopping culture ie the increase in online retailing and "onestop" shopping in supermarkets.

So if you are an independent retailer my tips are, first of all get the right lease, get you own USP to make you business different by selling  for example "designer clothing or jewellery from up and coming designers" or  "local products or foods", creating a special experience, much like our local award winning farm shop Croots.

Use the internet to develop your brand by having a good website, if you can sell your products online, use twitter etc to get a following and promote your business.

Look professional with your branding and point of sale. 

Employ the right movivated trained staff who have the right passion for the business.

Often many of the big retailers have out sourced customer service to call centres offshore so this is your chance to WOW the customer as if they have an issue you can deal with it with great local face to face service.

Work with other retails in your town to get a marketing plan so that you can all work together to promote each other via a website and leaflets, word of mouth etc. This will also give you economies of scale ie small costs to all retailers to get a website, printed marketing material done etc.

If you can make a USP for your town for example Melton Mowbray who use food or like Hay- on -Wye who use books.

Hope my ramblings have made you think that there is so much more to why our towns and cities are changing other than the recession.

Thank you for reading.

Mike Handley