Time to Remember the Fundamentals of Retail
Brody Sweeney, founder of O’ Brien’s Sandwich Bar and author of "Small to Tall" offers an insightful, motivating approach to adapting to changing trends and surviving in the retail industry during the recession.
Time to Remember the Fundamentals of Retail
It’s a funny old time in the retail business. It seems to me that for many of us, we’re over the initial shock of the recession – and adjusted to the new reality. We’ve got used to sales being well below where they were, dumped the old business plan expectations, dealt with our landlords, taken an axe to our wage bills, responded to the new pricing environment expected by our super savvy customers, altered our Celtic Tiger aspirations to the new landscape, and are beginning – God forbid – to think once again beyond immediate survival.
For while the short-term outlook seems bleak and our clientele are still frightened and fearful about what the future holds, there is nevertheless a feeling that maybe we have reached the bottom of the cycle (defined by things not continuing to get worse), and the new Government seems to be getting to grips with our problems and telling us things as they are. As we look around us, we realise that most businesses have survived, most of us are still working and it’s not the end of the world as we know it.
Congratulations if you’re one of us. The survivors. Maybe, like me, not in the same business that I entered the recession with – I’m eighteen months into my new restaurant delivery business, Camile Thai Kitchen – but more likely, you’re in the majority, who when it counted, dug deep and made the painful changes necessary to keep going.
And now that you’ve made those changes, wouldn’t it be a good time to go back to the fundamentals of retail – what makes any retail business successful – and to think of the future development of our own business in that context.
I’m an old school retailer. I was brought up with the mantra location, location, location. But actually good retail for me has always been more than just about location. You needed a good concept as well – and the most important ingredient – a good driver.
I remember a course I attended once where the presenter talked about price, quality and service. His proposition was that any good business could only be two of these three things. And when I thought about it, it made total sense to me. Think about Ryanair – what would their two be? – you guessed it – Price and quality (quality in that most of their flights arrive on time, without killing you), but Ryanair don’t do service. Think about Four Seasons Hotels – they would focus on service and quality, but they don’t really do price. When you think about your own retail concept. What are the two you would concentrate on? – and thinking about that – what could you improve about your concept to make it fit better.
A good concept has always been one where there are enough customers out there, willing to pay the prices you charge, in order for you to make a profit. As many of us found out in recent years, our old concepts didn’t work in the new harsh environment, and we needed to change it in order to survive. Whether you’re a pile ‘em high, sell them cheap retailer – a business where time and customer service are the order of the day – or you’re somewhere in between, it’s worth taking time out to look at your concept as it is now, but also as you think it should be (which isn’t necessarily the same thing) – and thinking of the steps you need to take to change it.
Location continues to be a prime determinant in retail business success. But the viability of particular locations often changes, and completely new “locations”, like the Internet open up. Our new business Camile Thai Kitchen is doing about 20% of its sales online. I am staggered by that. I remember a time before the Internet existed, but my kids don’t and they’re the ones shopping on it. As you think about your own location(s), is it best suited for purpose – or has it changed? And if it has changed, should you move, or adjust your concept to the customers you can actually get, as opposed to what you are actually getting?
And finally there’s you. The Driver. The one on whom all the responsibility falls, and actually, although it’s not nearly as obvious as location or concept, the most important factor of the three in making the business work. Yet, because it’s not as obvious, we don’t give ourselves as much attention as the other two – and often that costs us.
Good drivers are the ones who have to keep the show on the road, are prepared to do whatever it takes and crucially have a plan. Taking responsibility has made you into the survivor you are. Being prepared to do whatever it takes has made the difference between success and failure – stretching yourself way outside your comfort zone. And your ability to plan (even if its informal), and then adjust that plan in the light of the environment around you, has given you the best chance of emerging from this recession shaken and bloodied, but with your head held high.
Many of us drivers are worn down by the years of struggle to keep going. Not looking after ourselves, not taking time out away from the business, not being curious enough about what our customers and best practice guys are up to. The best recipe for you is time away from the day to day – to give you the perspective you need – to see the fundamentals of your business for what they are.
Brody Sweeney founded the O’Brien’s Sandwich Bar chain in 1988, a 340+ chain he built up over twenty years, until he exited the business in 2009. In 2010, he set up a new business Camile Thai Kitchen Thai Kitchen. He is a bestselling business author “Making Bread” (2005) and “Small to Tall” (2008). He recently stepped down from seven years on the board of Paddy Power PLC. He runs a Business Development company for business owners, called Small to Tall, based on his book of the same name.
Our thanks to Brody Sweeney for providing this article to our readers. For more information on Small to Tall Business Development Programmes, please phone Fiona O’Sullivan at 086 8302695.