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STAG - January 2011
What will 2011 bring? Will the coming year be any different to 2010? Will rising inflation have an effect on consumer spending? Will the VAT rise have a negative effect? Will Government cutbacks change our standard of living?
There could be a hundred other questions asked about 2011 and those with a crystal ball would be the only ones in a position to answer them all. If we are to believe all the opinion polls, the views of politicians, the City analysts and the media as a whole we would all still be very confused.
This is how STAG see the year mapping out. Firstly, we have to be thankful that the majority of the UK population is still sport/outdoors mad and that participation in sporting/outdoor activities is on the increase. We are in an industry where product quality, brand recognition and customer service are key and when all these aspects are put together we are in a position to nurture customer loyalty. Those independent retailers that offer this will be in a far better position to combat the difficult market conditions than those that choose not to.
Price increases are inevitable but consumers know now more than ever the meaning of value for money. This does not mean just the cheapest; it is the satisfaction consumers get from their purchase to using it in their chosen sport. We do not see this changing anytime soon on the contrary we see it growing in importance.
The growth of online sales throughout the year cannot be ignored although once again, the Christmas rush and bad weather have severely bruised the service that on-line companies offer.
Many consumers affected by late deliveries last year vowed not to return to on-line shopping and I guess the same will happen again this year. However, those independent retailers that have invested in good ecommerce sight will reap the rewards as they see their customer base grow.
So more of the same I guess; no easier and no harder than it has been in recent years but as always with good independent sports/outdoor retailers at the heart of the industry.
Ricky Chandler
Managing director, STAG
