INCREASING YOUR GIFT CARD SALES
Gift card use has grown by more than 50 per cent among small businesses in the past few years and is expected to grow by 20 per cent annually for the next four to five. The average consumer currently spends about $200* on gift cards each year, and roughly 50 per cent of recipients spend more than the face value of the card. "We've seen explosive growth in gift card popularity over the past 10 years," says Daniel A. Baer, a partner with Ernst & Young. "Because gift cards can be used for both non-essential and essential items, we're going to see a lot of them in this type of economy." So, how can you creatively and cost-effectively use and increase your gift card sales this season? Read on to find out. 1. "Display gift cards all around your store," says Retail News columnist and retail makeover coach Barbara Crowhurst. Remind customers that you offer gift cards when they're checking out and when they can't decide what to buy. "Train your staff to talk about gift cards to each customer. You'll be surprised how many you can sell just doing this." Don't forget to put them in stockings and hang them from your displays and Christmas trees. 2. Hold a contest. When customers purchase a gift card, automatically enter them into a draw to win a free gift card. This promotion has worked extremely well to increase gift card sales for Tasha Hilderman, the co-owner of Border City Building Centre in Lloydminster, Alta., a 2005 CGTA Retailer of the Year winner.3. Use gift cards to thank your best customers and to make charitable donations. You're not out any money until they're redeemed and the gift prompts the recipient to visit your store.4. Package them effectively. Sell card-sized gift boxes so the recipient has something to unwrap. Or, like Hilderman, give customers a small organza gift bag with a hot chocolate package when they spend $50 or more. This tactic increased the store's average gift card sale by $20. "It was well worth the $1.20 cost of materials," says Hilderman.Note: Retailers who sell a lot of gift cards see a dramatic shift in their business when the cards are redeemed, which is typically in January. Don't disappoint them with an empty store. "During the past two years we've been cleaned out in January because we get so many gift cards being redeemed," says Hilderman. Now, she arranges for more stock to arrive in January and orders items that people tend to buy for themselves, rather than others, such as purses and jewellery. *Source: Moneris SolutionsThis article is the fifth in a series we've developed to help you transform your store into a super-selling winter wonderland this holiday season. Stay tuned for advice culled from our favourite contributors on preparing for your post-holiday sales in the December 8th edition of Retail News Now!
Saturday, November 29, 2008
Friday, November 28, 2008
retai news regarding retail
Restaurants in retail environments on the right track
Train stations and retail are a respected combination but train stations and food have long been regarded as a toxic mix. It was therefore a brave move last year to include a wide variety of food outlets in the St Pancras redevelopment alongside the retail units.
By Glynn Davis
One year on from its grand opening the shopping area of the station now has its piece de resistance trading - the St Pancras Grand restaurant. This adds a bit of fine-dining into the equation and raises the bar for food within a transport/shopping environment.
With its gold leaf ceiling, leather banquettes, menu comprising quality British ingredients, and adjoining Champagne Bar it is world away from the baguettes and burgers that still represent the typical fare of train stations and the majority of shopping developments around the UK.
Even the newly-opened Westfield London does not have the equivalent of a St Pancras Grand operating at the higher end of its broad food spectrum that comprises 50 food outlets. But what both these developments have in common is that they have taken the variety of food available in shopping developments to new levels.
Jonathan Doughty, group managing director of foodservice consultants Coverpoint, is a big fan of St Pancras: “There's some stunning food in there. It has a great range, the best in any transport hub anywhere in terms of price points and products. I'd certainly go there because of the diversity and quality of the food.”
Referring to Duncan Ackery, chief executive of Searcys 1847 that operates the St Pancras Grand restaurant and adjoining Champagne Bar, Doughty says: “He's well tuned-in to the needs of the customers,” but he tempers this with a warning that there will be many challenges now for such higher-end food offerings as consumer spending takes a downward turn.
He points to the Champagne Bar as having quietened down recently following what has undoubtedly been a very successful opening year. Although Doughty believes trade will ultimately pick up he suggests restaurants in retail environments are in for a very tough ride.
But for now he says the food component of most shopping centres is holding up well. Certainly the footfall numbers suggest this is the case. In many developments he says footfall into retail outlets is down by 10 per cent whereas into food units it remains constant.
However, the footfall numbers do not tell the full story. Even when shopper numbers are reported to be higher than last year (Manchester Arndale centre for instance has just disclosed another month-on-month increase) Doughty suggests the problem is the level of spending per head, which is significantly down.
“We are seeing caterers having to work harder for the same cash. They are discounting, although they call it adding value. From 2002/3 we saw conspicuous consumption so it was not about value, it was all about glitz. But now we've stepped back into the discounter world,” he suggests.
This has led to a plethora of promotions from food operators. For example, Café Rouge is running special offers via the website Handbag.com, Starbucks is offering discounts through its loyalty card, and there are numerous two-for-one deals in the marketplace from the likes of Pizza Express.
The problem with such activity is that it is unsustainable over the long term. Brands become damaged, customers become used to the low prices, and margins are badly affected. As a result of this flight-to-value Doughty predicts that post-Christmas there will be a number of closures to follow the shutters going down on units from Pizza Hut and Starbucks.
Although he suggests this will result in some “outrageously good deals” on vacant units, for most operators it will be more a focus on survival than on expansion. Doughty predicts that the hardest hit region will be the South East of England where many shopping centres have targeted their food offers firmly at the middle classes and it is this demographic that is arguably feeling the heat most from the downturn.
Train stations and retail are a respected combination but train stations and food have long been regarded as a toxic mix. It was therefore a brave move last year to include a wide variety of food outlets in the St Pancras redevelopment alongside the retail units.
By Glynn Davis
One year on from its grand opening the shopping area of the station now has its piece de resistance trading - the St Pancras Grand restaurant. This adds a bit of fine-dining into the equation and raises the bar for food within a transport/shopping environment.
With its gold leaf ceiling, leather banquettes, menu comprising quality British ingredients, and adjoining Champagne Bar it is world away from the baguettes and burgers that still represent the typical fare of train stations and the majority of shopping developments around the UK.
Even the newly-opened Westfield London does not have the equivalent of a St Pancras Grand operating at the higher end of its broad food spectrum that comprises 50 food outlets. But what both these developments have in common is that they have taken the variety of food available in shopping developments to new levels.
Jonathan Doughty, group managing director of foodservice consultants Coverpoint, is a big fan of St Pancras: “There's some stunning food in there. It has a great range, the best in any transport hub anywhere in terms of price points and products. I'd certainly go there because of the diversity and quality of the food.”
Referring to Duncan Ackery, chief executive of Searcys 1847 that operates the St Pancras Grand restaurant and adjoining Champagne Bar, Doughty says: “He's well tuned-in to the needs of the customers,” but he tempers this with a warning that there will be many challenges now for such higher-end food offerings as consumer spending takes a downward turn.
He points to the Champagne Bar as having quietened down recently following what has undoubtedly been a very successful opening year. Although Doughty believes trade will ultimately pick up he suggests restaurants in retail environments are in for a very tough ride.
But for now he says the food component of most shopping centres is holding up well. Certainly the footfall numbers suggest this is the case. In many developments he says footfall into retail outlets is down by 10 per cent whereas into food units it remains constant.
However, the footfall numbers do not tell the full story. Even when shopper numbers are reported to be higher than last year (Manchester Arndale centre for instance has just disclosed another month-on-month increase) Doughty suggests the problem is the level of spending per head, which is significantly down.
“We are seeing caterers having to work harder for the same cash. They are discounting, although they call it adding value. From 2002/3 we saw conspicuous consumption so it was not about value, it was all about glitz. But now we've stepped back into the discounter world,” he suggests.
This has led to a plethora of promotions from food operators. For example, Café Rouge is running special offers via the website Handbag.com, Starbucks is offering discounts through its loyalty card, and there are numerous two-for-one deals in the marketplace from the likes of Pizza Express.
The problem with such activity is that it is unsustainable over the long term. Brands become damaged, customers become used to the low prices, and margins are badly affected. As a result of this flight-to-value Doughty predicts that post-Christmas there will be a number of closures to follow the shutters going down on units from Pizza Hut and Starbucks.
Although he suggests this will result in some “outrageously good deals” on vacant units, for most operators it will be more a focus on survival than on expansion. Doughty predicts that the hardest hit region will be the South East of England where many shopping centres have targeted their food offers firmly at the middle classes and it is this demographic that is arguably feeling the heat most from the downturn.
Wednesday, November 12, 2008
retail news
Dabur to acquire Fem Care?
12 Nov 2008
Media is abuzz with the news that Dabur India, country's leading chain of personal care products, is on the verge of acquiring Fem Care, a FMCG and pharma company famous for its Fem bleach, for a hefty sum of Rs 3 billion.When contacted, Dabur India spokesperson turned up saying the reports 'merely speculative'. However, Fem Care officials remained unavailable to comment on the issue. Dabur India marked a 18.4 per cent growth to Rs 699.30 crore in its second quarter ended September 30. Further, Dabur's international business also grew at a rapid pace with the division recording a growth of 40.5 per cent. On the other hand, Fem Care posted a net profit of 46 million rupees on sales of 937.5 million rupees in the financial year ended March 30, 2008.
Bharti Wal-Mart to establish retail training centre in Punjab
12 Nov 2008
In an attempt to get skilled manpower, Bharti Wal-Mart Pvt Ltd, the joint venture between Bharti Enterprises and Wal-Mart Stores Inc for wholesale cash-and-carry and back-end supply chain management operations in India, has signed a memorandum of understanding (MoU) with the government of Punjab to establish a special skills training centre in Amritsar. This public-private partnership has been forged with the aim of bridging the shortage of skilled workers for cash-and-carry and organised retail formats, said a company press release. Branded as ‘Bharti Wal-Mart Training Centre’, the centre will initially offer short-term vocational certification courses that will equip candidates to become floor and sales assistants or supervisors through a special curriculum developed by Wal-Mart and Bharti Learning Systems.Raj Jain, MD and CEO, Bharti Wal-Mart Pvt Ltd, said, “Specialised operations like cash-and-carry and other organised retail formats promise good growth and job prospects, but they require a customer service mindset and very different skills from what is available today. The government of Punjab is very progressive in its outlook and is firmly committed to providing an environment that promotes both employment and employability. We look forward to partnering them in this joint effort to bridge the skills gap and enhance employability.”“At a later stage when our skill centre capacity is fully utilised, we will explore the possibility of using classrooms at other ITIs/polytechnics across Punjab,” added Jain.The centre is expected to train approximately 125 candidates each month and offer 100 per cent scholarship to all enrolled candidates, added the release.
Nirula’s to go overseas; 200 domestic outlets by 2011
11 Nov 2008
Fast food and casual dining chain Nirula's is planning to foray into the overseas markets, including the UK, Dubai, Nepal, Oman and Kuwait, disclosed a top company official. "We have opened preliminary discussions with prospective partners in United Kingdom, Kuwait, Dubai, Oman and Nepal. We are looking at the franchise model for growth in those markets," said Samir Kuckreja, chief executive officer and managing director, Nirula's in Delhi during the launch of Nirula’s new range of healthy burgers. Meanwhile the pioneer of family style restaurant business will also invest Rs 1.5 billion for domestic expansion. The company, which currently operates 60 outlets in north India, is expanding into the other parts of the country and plans to take the number of outlets to 200 by 2011."We are going pan-India with plans for 60 more outlets by end of next year and to have around 200 outlets within the next three years. We are carrying out the expansion with an investment of Rs 100-150 crore (1.0-1.5 billion)," he said. However, Kuckreja elaborated that the new outlets would come in all the existing formats including flagship shops, quick-service restaurants and Potpurri.With a growth rate of 40 per cent in the current financial year, the company will also have an overhaul of its menu with plans to introduce healthy food substitutes across its range.
Reliance Retail Delhi CEO quits; joins GSK
11 Nov 2008
Navneet Saluja, CEO, Reliance Retail in Delhi and NCR region, has put in his papers. According to reports Saluja is joining GlaxoSmithkline (GSK) Consumer Healthcare as sales head.Further, Saluja will replace the former sales head of GSK, Ambati Venu, who is to be reallocated to the company's Middle-East operations.GlaxoSmithkline is the world's leading pharmaceuticals organisation. In India, the company also runs FMCG business with major brands including Boost and Horlicks.
Pantaloon Retail awards bonus shares
10 Nov 2008
Pantaloon Retail, a part of Future Group has announced the allotment of bonus shares. The decision was taken in the committee meeting of the company that was held on November 10.In a filing to Bombay Stock Exchange, the Mumbai-based company said that the committee of directors of the company have made allotment of 1,59,29,152 equity shares (class B shares series 1) of Rs 2 each to existing members of the company as bonus shares in the ratio of one Class B share (series 1) for every ten equity shares held in the company.Kishore Biyani-led Pantaloon Retail operates primarily the ‘Lifestyle’ and ‘Value’ formats through multiple delivery mechanisms and lines of business.
12 Nov 2008
Media is abuzz with the news that Dabur India, country's leading chain of personal care products, is on the verge of acquiring Fem Care, a FMCG and pharma company famous for its Fem bleach, for a hefty sum of Rs 3 billion.When contacted, Dabur India spokesperson turned up saying the reports 'merely speculative'. However, Fem Care officials remained unavailable to comment on the issue. Dabur India marked a 18.4 per cent growth to Rs 699.30 crore in its second quarter ended September 30. Further, Dabur's international business also grew at a rapid pace with the division recording a growth of 40.5 per cent. On the other hand, Fem Care posted a net profit of 46 million rupees on sales of 937.5 million rupees in the financial year ended March 30, 2008.
Bharti Wal-Mart to establish retail training centre in Punjab
12 Nov 2008
In an attempt to get skilled manpower, Bharti Wal-Mart Pvt Ltd, the joint venture between Bharti Enterprises and Wal-Mart Stores Inc for wholesale cash-and-carry and back-end supply chain management operations in India, has signed a memorandum of understanding (MoU) with the government of Punjab to establish a special skills training centre in Amritsar. This public-private partnership has been forged with the aim of bridging the shortage of skilled workers for cash-and-carry and organised retail formats, said a company press release. Branded as ‘Bharti Wal-Mart Training Centre’, the centre will initially offer short-term vocational certification courses that will equip candidates to become floor and sales assistants or supervisors through a special curriculum developed by Wal-Mart and Bharti Learning Systems.Raj Jain, MD and CEO, Bharti Wal-Mart Pvt Ltd, said, “Specialised operations like cash-and-carry and other organised retail formats promise good growth and job prospects, but they require a customer service mindset and very different skills from what is available today. The government of Punjab is very progressive in its outlook and is firmly committed to providing an environment that promotes both employment and employability. We look forward to partnering them in this joint effort to bridge the skills gap and enhance employability.”“At a later stage when our skill centre capacity is fully utilised, we will explore the possibility of using classrooms at other ITIs/polytechnics across Punjab,” added Jain.The centre is expected to train approximately 125 candidates each month and offer 100 per cent scholarship to all enrolled candidates, added the release.
Nirula’s to go overseas; 200 domestic outlets by 2011
11 Nov 2008
Fast food and casual dining chain Nirula's is planning to foray into the overseas markets, including the UK, Dubai, Nepal, Oman and Kuwait, disclosed a top company official. "We have opened preliminary discussions with prospective partners in United Kingdom, Kuwait, Dubai, Oman and Nepal. We are looking at the franchise model for growth in those markets," said Samir Kuckreja, chief executive officer and managing director, Nirula's in Delhi during the launch of Nirula’s new range of healthy burgers. Meanwhile the pioneer of family style restaurant business will also invest Rs 1.5 billion for domestic expansion. The company, which currently operates 60 outlets in north India, is expanding into the other parts of the country and plans to take the number of outlets to 200 by 2011."We are going pan-India with plans for 60 more outlets by end of next year and to have around 200 outlets within the next three years. We are carrying out the expansion with an investment of Rs 100-150 crore (1.0-1.5 billion)," he said. However, Kuckreja elaborated that the new outlets would come in all the existing formats including flagship shops, quick-service restaurants and Potpurri.With a growth rate of 40 per cent in the current financial year, the company will also have an overhaul of its menu with plans to introduce healthy food substitutes across its range.
Reliance Retail Delhi CEO quits; joins GSK
11 Nov 2008
Navneet Saluja, CEO, Reliance Retail in Delhi and NCR region, has put in his papers. According to reports Saluja is joining GlaxoSmithkline (GSK) Consumer Healthcare as sales head.Further, Saluja will replace the former sales head of GSK, Ambati Venu, who is to be reallocated to the company's Middle-East operations.GlaxoSmithkline is the world's leading pharmaceuticals organisation. In India, the company also runs FMCG business with major brands including Boost and Horlicks.
Pantaloon Retail awards bonus shares
10 Nov 2008
Pantaloon Retail, a part of Future Group has announced the allotment of bonus shares. The decision was taken in the committee meeting of the company that was held on November 10.In a filing to Bombay Stock Exchange, the Mumbai-based company said that the committee of directors of the company have made allotment of 1,59,29,152 equity shares (class B shares series 1) of Rs 2 each to existing members of the company as bonus shares in the ratio of one Class B share (series 1) for every ten equity shares held in the company.Kishore Biyani-led Pantaloon Retail operates primarily the ‘Lifestyle’ and ‘Value’ formats through multiple delivery mechanisms and lines of business.
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