Is Colin really a fashion icon?

Traditionally we have seen retailers internationalising from a highly developed retail market to a less well developed retail market...  But as markets around the world are developing there are opportunities for innovative retailers from less developed retail markets to expand globally...  One such retailer has come to my attention - Colin's clothing, nope no joke, Colin's clothing from Turkey has big ambitions including 100 stores in the UK.  While a Turkish clothing retailer is well placed in terms of supply chain the big question here is - would you buy your clothes from Colin?!

Tescos being 'Buffetted'

I have long commented on the questionable wisdom of Tesco entering the US.  Given the choice of markets in across the globe, why would Tesco (the retailer that is ‘good’ but certainly not ‘unique’) enter the already crowded retail market of America – crowded actually with some very good grocery retailers of their own.   It is very strongly my view that there are many countries in Asia particularly  that hold far greater promise.   What is also striking is their entry strategy, departing from their usual acquisition followed by growth, the enter with nothing and build up all the expensive infrastructure themselves – the expensive way.  I have felt like a lone voice, but am reassured this week by the comments made by Warren Buffett (huge financier & speculator) which indicate that I am not alone.  Buffett described Tescos US entry as ‘foolhardy’.  Frankly I find it very hard to imagine a good business case for the US entry, and would not be surprised if they retreat loosing many millions of their investment in the process.  Of course it could also be that I’m wrong and that Tescos make a success of it, but I would still maintain that there would have been better investment markets out there that would have provided a stronger short, medium & possibly even long term return.

Focus on a variety store!

Focus the DIY chain with 178 stores has gone into administration.  The chances of them being brought out of administration as a going concern are negligible I would imagine. They are simply too small to be able to compete with B&Q & Homebase.  Frankly Wickes really appears to struggle to keep up as our third biggest DIY chain, and their stores are generally miserable affairs against the size and colour of a large B&Q.  It is of course sad to see the demise of any retailer and the personal difficulties that it will mean for many employees, however it is an inevitable part of competition and it the current economic climate the weak are struggling – this year alone Oddbins, British Bookshop and Stationers & Allworths have folded & for sure there will be more before the year is out.

What is of note though is that as true as competition will lead to the demise of some retailers it will also allow others to flourish.  I will never forget the media commentary at the time of Woolworths bankruptcy proclaiming the death of the variety store and how the format was no longer relevant in today’s society.  What rubbish...  Who was the retailer that bought all of MFIs stock when they closed their doors?  And is now talking of taking on Focus’ stock and stores?  Small independent chain The Range.  They are, you might have guessed, a very flourishing variety store...

Limited Line Discounter growth

2008 saw growth in the sales of the Limited Line Discounters.  The growth was widely attributed to the recession and weak consumer sentiment leading customers to seek cost reductions in their every day lives.  There is no question that Aldi & Lidl are significantly cheaper than the mainstream competitors.  The market share of Aldi & Lidl is still growing (currently 3.3% & 2.6% respectively), but not because they are attracting significantly new customers.  Rather, those that tentatively (tentatively because frankly the stores are mostly a bit grim) dipped their metaphorical toes into a Lidl or Aldi store back in 2008 have actually found the products to be surprisingly good.  This is of course good news for the discounters who have really struggled to communicate their strategy in the UK.  They sell good stuff cheaply while the UK consumer assumes a strong correlation between price and quality and have assumed that the products are poor quality substitutes to the usual Tesco fare...  With limited marketing budgets word of mouth is likely to form their best means for growing their customer base but before their market shares grow considerably when they can be really classed as 'mainstream' grocers they will have to improve their overall professionalism.  Product availability has to be assured & mould vegetables on display just will not do!

M&S international expansion

The stated European expansion plans of M&S have come in for some scrutiny here previously, commenting on Marc Bollands aspiration to enter countries only where they can achieve a market leading presence.  France?  Really?!
And so it continues - it has now been announced that M&S will look to the Netherlands for their next European expansion.  Has this decision been arrived at through careful scanning of European markets using objective measurement of each country against key criteria that are likely to be key importance for M&S.  Or has it been made anecdotally given that Mr. Bolland is Dutch, has some market knowledge & has a lot of family over there??  I don't know but clearly have my suspicions.  Given how easy it is to conduct thorough desk research on the attractiveness of countries it is amazing that it still appears to not be thoroughly done by some of our leading names - more on this theme & Tescos specifically to follow...