Cracks in the retail marketplace

This article is brought to you by Retail Technology Review: Cracks in the retail marketplace.

As the ongoing credit crisis affects more retailers, it's clear that more and more cracks will start to appear in the retail marketplace for even some of the essential everyday products people currently take for granted.

The additional problems of large unemployment will also move a certain percentage of people down the path of investing redundancy payouts into starting their own business. While the banks are currently reluctant to lend to business, the months ahead will see more investment in new business and instigate a new wave of independent retailers to fill the gaps in the market and build the services the country needs.

The wonderful thing about Independent retail is how it offers variety, supports a wide range of business from large to cottage industries, and more importantly helps build and support other independent retailers in surrounding areas. A lot of independent retail also source product from local manufacturers and help to support job creation in the local marketplace, not as with larger retailers who import 60 99% of stock.

One of the lessons we must have learned by now is that the UK marketplace has been price driven for far too long; companies selling product at less than a 1% margin is not sustainable, and to that affect businesses and their competitors should not compete on price, but offer excellent service instead. Dropping prices kills everyone, we all need employment and, at the end of the day, the ability to put food on the table, buy a pint on a Friday and have a nice holiday each year.

Suppliers and distributors need to be stronger; not giving in to the multi channel retailers demands and in turn should offer a more level playing field on pricing to encourage independent retail growth. After all they may have a larger independent network making the supplier more profit than they would from a large 100+ store retailer.

At a time when villages and town centres are becoming ghost towns we need to support business growth and keep our local area vibrant and buzzing. Filling a town with retail that is constantly evolving makes shoppers come back. It's important to encourage business growth now, build bridges with competitors and help our network of independent retailers. Every little bit helps, after all a high street with only 2 shops occupied in 10 is not as profitable as a full High Street of retailers, as empty shops affect footfall.

We're meant to be a nation of shopkeepers, not a nation of derelict buildings.