Monday 28 September 2009

Not just any food, 'Woolworths food'

Whilst on a recent trip to South Africa we were both amazed and stunned when we came across their local supermarket. Woolworths, although having unfortunately slipped away from the UK market recently, is alive and kicking in SA - though not as we know it over here!

From the outside it looks a little bit 'American-Whole-Foods-esk'. When you get inside however its quite another story.....it's M&S! Look, see what we mean?

Not quite sure exactly how this works but according to our SA friends it is the name under which M&S trade over there. If it isn't M&S it's amazing how identical the store is once inside.

Woolies may be down and out in the UK but it's simply amazing in SA.

Tuesday 8 September 2009

The cross road that faces retail onboard our trains


Customer demands in todays World have grown expediently. We want more for less and we want it now. High street retailers have fought hard to keep their customers by improving their service and listening to their customers needs. With your neighbour doing exactly the same its a tough market place to stay ahead.

Onboard retailing however, doesn't have this extreme pressure as its not exactly easy to just step off and go next door! Has this therefore been the reason onboard retailing has fallen so far behind in so many areas?

Having worked on several projects in the past 18 months we have seen how many retail operations onboard still live in the shadow of the British Rail sandwich and although many are trying to make a difference, there seem to be many hurdles to overcome.

Firstly and most importantly, is sales. As a business model in its own right these operations struggle to make good profit if any at all. There are many reasons to this including logistical difficulties and product waste. However, if we look wider, a loss in sales is certainly down to customers buying before they get onboard. Retailers on train concourses have improved their game dramatically and are offering quality, freshness and range that onboard operations just can't match - if you think in a historic manner...

The second is awareness. As travelers we expect there to be a service onboard but do we ever really know what is on offer? Are we ever told? Do we ever buy something we really want or do we buy whatever there is and hope it will fuel us until we have a better opportunity? Without awareness there is no demand. Without demand there is no area for improvement.

The third is product. In todays World when others reveal traceability, nutritional and quality information it is hard to compare onboard with the high street in such ways. The quality of the food and beverage we eat and drink whilst on the move are ten fold compared to only a decade ago. Although a tough challenge in many ways, the ultimate aim must be to sell a 'handmade sandwich, made today' if we are ever going to compete with those around us.

But perhaps this is the reason that onboard retail has fallen so far behind - perhaps this isn't the train operators aim. It might just be that being 'OK' is good enough. Probably not the customers view though.

So does retail have a place onboard any more?

Many people have suggested that it should be removed to allow for government legislation and make way for more bums on seats. However, history has shown us (via First Great Western experiment in the-not-to-distance past) that this isn't a good idea, as customers like to have it onboard, even if they don't use it.

I think the answer is, yes, it does have a place onboard - but it has a lot of hard work to do. If it is going to be taken seriously by the customer as a food and beverage offer and if onboard retail is going to become a successful business model there are some big changes that need to happen.

The question is, who will be the first to make such a change?