Slump, downturn, crisis, squeeze – call it what you will, but not a day goes by when you won’t hear or read about the slowdown that is affecting everyone in the UK.
With fuel prices going through the roof and the average grocery bill going the same way, it looks like we will be feeling the pinch for some time.
Winning in this tough market has sent executives across the country prematurely grey. It’s a constant battle to get the formula right. What my short time at Debenhams has reminded me of is that many of the answers to retailing challenges lie with our customers.
Listen to them but, more importantly, take on board and implement what they say. So, what gem have I learnt in my first few months at Debenhams? It is not rocket science, but what is clear is that everyone loves to get great product for less, particularly when they’re feeling the pinch.
Today’s high street is a world of Sales, money-off events and promotions. Usually these words send shivers down the spines of finance departments but, in these trying times, they have an important part to play.
It is a key challenge for today’s retailer to try to lift shoppers out of the credit crunch doldrums. Give them access to relevant discounts and, more importantly, fantastic value. If you lift their spirits you keep them coming back for more. After all, everyone loves a bargain.
The key to sustained success, however, is how you deliver these discount events. At Debenhams we’ll be following the three s’s rule on promotions, which is keep them short, sharp and simple. By improving the clarity of the offer you will not only create a real buzz and sense of theatre, but you are also giving your customers what they really want and need right now.
Of course, this on its own isn’t enough. Just putting a low price point on a garment doesn’t wash. Customers today want more than that. They want real value for their ever decreasing spending money.
By this I mean that products have to shout quality through better fabric, better finish, better trim and better design. I am convinced that this value equation is the reason that Designers at Debenhams names such as Jasper Conran, Betty Jackson, John Rocha and Julien Macdonald are performing so well for our business, even in this tough market.
The final piece for me in this jigsaw comes from some research that passed my desk the other day. 48 per cent of British adults said they expected to reduce their spending during the present climate. However, interestingly, 88 per cent are more likely or very likely to take their business elsewhere because of poor customer service, not price.
So make sure you ask the question “are you being served?” during your next focus group. If the answer you get is no, then my advice would be to sort it out – and quickly.
Angela Spindler, Managing director, Debenhams
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