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PG/Cardgains Retail Barometer
The Big Banes There is no denying that the retail landscape was tough for most retailers in 2017, indie card retailers included. A general drop in footfall, consumer and business uncertainty over Brexit, the continued march of the online operators, rising costs, competition from all and sundry, not to mention the perennial bugbears of parking, Minimum Wage and charity shops, all made it into the premier league of factors that had a negative effect on an indie’s business last year.
Top Ten Promotional Mechanisms Over The Last Year (Last year’s positions shown in brackets)
1st
Loyalty cards/loyalty initiatives (2nd)
2nd Social media (1st) 3rd
In-store ‘money off’/discount promotions (3rd)
4th
Charity fundraising (4th)
5th
Customer events and competitions (5th)
6th
Press advertising (7th)
7th
(joint) Gift voucher scheme (7th)
What main factor(s) have had a detrimental effect on your business this year?
7th
(joint) Collaboration with other businesses (9th)
8th
(joint) BOGOF (or similar) (6th)
(Last year’s position in brackets)
9th
Free gift promotions (8th)
1st
10th Leaflets (6th)
The UK retail economy (5th)
2nd Expansion of cards in supermarkets (6th) 3rd
Brexit decision (10th)
4th
Online activity (7th)
5th
Parking issues (3rd)
6th
Minimum Wage (1st)
6th
Business rates (2nd)
7th
Expansion of value/discount retailers (4th)
8th
Competition from multiples (9th)
9th
Charity shops selling greeting cards (8th)
What local organisations were your business involved with in the last year? The Magnificent Seven 1st Chamber of Commerce 56% 2nd Town centre retailing group 39% 3rd Schools 28% 4th Charities 22% 5th Federation of Small Businesses 11% 6th Business Improvement District 10% 7th Rotary 5%
10th Promotion of print-on-demand cards (11th)
Business Predictions For 2018
Going For Promotion Indies further flexed their marketing mettle last year. More undertook promotional activity than ever before in the history of the Barometer. Over three quarters (77%) of respondents embraced some kind of promotional activity, many experimenting with a number of different marketing mechanisms. This year it was loyalty-building initiatives that came out tops, beating social media into second place as the top mechanism for promotion in the last year, though many of the loyalty schemes worked in tandem with social media activity to communicate with customers in the last year. Remaining rock solid ways of engaging with their local community, charity fundraising initiatives, as well as collaborations with other local businesses, also scored well for respondents in 2017, while customer events and competitions continued to reinforce the relationships with those in their locality. Top: Uncertainty surrounding Brexit is a concern. Left: The Secret Garden in Borough Green, Kent, has come up with many wonderful ideas to engage its local community.
38%
Independent card retailers are less optimistic about the coming year than they were at the start of 2017, with over a fifth bracing themselves for a drop in business this coming year - 11% going so far as to admit they are expecting a ‘major decline’. On the up side though, 40% are gearing up for growth, only 1% fewer than participated in last year’s Barometer, while over a third (38%) are expecting to remain on a par with last year. However, looking further ahead to the next 10 years, while over a fifth of respondents feel positive, disturbingly 42% hold the view that the future of the independent card shop is weak. Continued on page 47
How has your business fared over the last year? PG looks back at the last eight year’s of PG/Cardgains Retail Barometer data. 2017 v 2016 Better 38% Same 27% Worse 35%
2016 v 2015 Better 30% Same 38% Worse 32%
2015 v 2014 Better 52% Same 44% Worse 4%
2014 v 2013 Better 48% Same 32% Worse 20%
2013 v 2012 Better 27% Same 43% Worse 30%
2012 v 2011 Better 38% Same 35% Worse 27%
2011 v 2010 Better 29% Same 28% Worse 43%
2010 v 2009 Better 30% Same 20% Worse 50%
PROGRESSIVE GREETINGS WORLDWIDE
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