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Is discounting proving a turn-off for today's consumer or are the floor-buying public still on the look out for low prices? CFR talks to SMG chief executive Chris Moffat, who believes that we are on the cusp of a great period of opportunity for independent retailers in the UK
Independents are in their strongest position since the 1980s, according to buying group SMG chief executive Chris Moffat. He believes that consumers in the UK have had enough of retail tactics such as heavy discounts and constant sales.
'We have gone through 10 years of discounting and the consumer just doesn't believe the price message any more,' he says. But he adds that independent retailers need a badge to hang their hat on if they want to take advantage. 'Middle aged and older people are looking for these badges when they go out to buy their floor coverings,' says Moffat. 'The biggest problem for the independent retailer is being known, especially when you consider that the multiple chains might have millions at their disposal for advertising.'
The independent retail trade should not dispense with its advertising budgets altogether, though, Moffat says, as local press and radio advertising is an important way to compete with the bigger brands enjoyed by the chains.
'There are many strong retailers out there at the moment,' says Moffat. 'The ones that have come through the price competition in good shape over the past few years can really push home their advantage when it comes to service.'
But he warns independent retailers that the groups are wising...