Bank Holiday Britain

“Oh dear” *slaps forehead* “I appear to have burdened myself with the stresses associated with unsuccessully managing an excessive range of services. Perhaps I should have concentrated on retailing my core products at competitive prices before announcing my innovative managerial prowess in such a public manner. The consumer will punish me for my bold act of hubris, surely?…”

Ah, but what better place to test diversified stock-keeping units than on the shelves in marketplace: surely this “test to invest” scenario could be used not only to better steer the the buying department, but also the whole retail experience, in a consumer-facing, and profitable, direction. The British institute of shopper marketing’s research indicates that near 70% of purchase decisions and a good 68% of those purchase are impulse buys, indeed the very unexpected nature of the stock (for a general store/newsagent) may drive sales of watch batteries. And the consumer loves not only the new, but also the air of mystery that thus textbook point of sale brings.

Mr Mystery, your incisive (and may I say optimistic) analysis of the retail experience vis-a-vis the consumer is most welcome. However, one wonders whether the psychological behaviour of the buying public (bless them) with regard to random impulse as opposed to more target-oriented approaches to the acquisition of goods (ie strict adherence to the shopping list) endure within a recession? Or is this a phenomenon observed primarily (or indeed exclusively) within the hothouse conditions of a consumer ‘boom’ during which ‘good times’ are said to prevail and the money is said to flow as if from a tap?

Hmm, a salient point, well argued Mr Lakey. Indeed, perhaps, during the current economic downturn, as the consumer strives for solid, reliable thing: Old and trusted brands with a precieved value, that this very diversification may be conter-productive to the hoped sales increase. That under new management (indeed are not many of the trusted banks that have failed us so also under new management?) may be the last thing “the man on the Clapham omnibus” actually wants! Still, my hope for the retailer, is, despite tough times, and his rather scatter-gun approach to diversificaton, that the adoption of such new technologies as Faxcimilie and Photocopy, may help him move into a more modern sector: That of seller of goods AND services, not just sundries. And consider, if you will, the diversification also as a potential “Keynsian Multiplier” especially the unespected nature of the “many new things” exogenous to the current microeconomic system in place. It may indeed encourage spending! Not discourage!

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