Footwear retailer says retail conditions worst in 30 years, expert says retail landlords bracing for more empty stores

So says RCG Corporation, the company behind the footwear franchise, Athlete's Foot.

Reporting a 1.2% quarterly profit fall but tipping a flat first-half profit, RCG chairman chairman Ivan Hammerschlag told shareholders yesterday that trading conditions were the worst he'd seen in three decades.

It's worth noting that footwear has been particularly hard hit – according to the Australian Bureau of Statistics, footwear and other personal accessory retailing fell by 1.3% in trend terms in September.

Still, David Gordon, partner in charge of the national retail advisory practice at WHK Group, says RCG is not alone in feeling blue about the state of the sector.

As he sees it, there's a huge discrepancy between the retailers that are doing well, and those that are suffering.

And good retailers – ones who know their stuff and run a good business – are telling him they've had enough.

Worryingly, Gordon says leasing executives are saying that there's never been a better time to negotiate with landlords – suggesting that many landlords are expecting a tough Christmas and empty stores in the new year.

"There's a feeling that there's a buyers' market out there," Gordon says.

So with this in mind, and keeping note of all the VIP nights being offered to buyers that are in effect just another invitation to discounted stores, SmartCompany has a few tips for retailers to make the festive season more profitable.

Don't rely on discounting

Yes, we've now had years of discounting and consumers are resistant to paying full price. But as Gordon explains it, discounts should occur when a retailer is short of sales and trying to get rid of stock.

If you can, go full price while people have an incentive to spend, because chances are you'll need do discount later on.

Seek out your loyal customers

Gordon says retailers should be looking to their loyal shoppers and contacting them via their VIP or loyalty club.

"Talk to them directly, do micro-marketing," he suggests. It's easier to sell to an existing market than find another.

Check your basics

Are you uniquely positioned? Do you have the right products at the right prices? Once you get people in the store, is your customer service and upselling up to scratch?

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written by photoman001, November 23, 2011

But Madeleine, just 5 days ago you were telling us we were having "the best month in 25 years". I've found over the past year that all as you do at Smart Company is reprint reports that are researched by others that there is no research or analysis on these by you. Where can I get the originals and cut out the middle man? Which boat are you in? Do you have an opinion of your own? What are your creditials to be writing about business?

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written by devilsman60, November 30, 2011

photoman001, I'm glad I'm not the only one who has noticed the reprint of reports by Smart Company. Most of the IT stories I've read elsewhere days or more before they appear here.