

Whilst this is no new topic to many other industries, there is an ongoing debate amongst the footwear industry as to whether it is right for suppliers to step into retailer’s shoes (excuse the pun) and sell directly to the consumer by way of retail stores or online presence.
Whilst it would be apt to blame Brexit for the hype around the issue, the reality is suppliers have had their own shops for a long time Clarks being a prime example. So, is it fair to a retailer who has built up a business for that supplier to then have competition on their doorstep or online from the suppliers themselves? On the face of it no would be the immediate answer, of course it’s not fair, but is it fair that a brand that offers a collection of 200 plus options has its presence limited in towns or cities by retailers who may buy between 10-30 options? IF it were as simple as looking at a map, realising that suppliers have poor distribution in a certain area and then opening a shop, we wouldn’t have much of a problem…but there is most likely a valid reason as to why there is poor distribution.
So the natural decision is to look at where you have good distribution – obviously there is a customer for their brand maybe they would benefit from seeing more of the range?
I would stick my neck on the line and say most people would prefer (if they could) to shop local. So, if a retailer is doing its job right; prioritising customer service, ensuring they have a collection of shoes that suits their customer, having a clean and tidy shop then it shouldn’t matter if a supplier opens in the town because the customer that is buying that brand will continue to shop with their local retailer -generally speaking. However, one bad shopping experience and the loyal customer is open to new horizons. Is that the suppliers fault? – This is all well and good UNTIL the supplier who has opened his shop in good faith struggles, because the retailer is doing their job and the predicted footfall is none existent, then we come into the price war. Who can offer the best price!!!
The margins that retailers have to work on to be competitive is in my personal opinion criminal. Once they have paid the suppliers, government, landlord, electricity, gas and water board, wages there is quite frankly very little left in the pot. With the growth in online shopping, add affiliates, post & packaging, marketing, PPC, SEO’s etc. etc. those margins get squeezed even more. So, for the supplier up the road who have more flexible margins to start with, to then slash prices in order to entice customers instore, naturally a price war ensues both vying to make their customers the happiest…margins slashed, retailer goes out of business because they can’t compete…game over.
The same story is happening online. So, what is the answer?