Jeweller - December Issue 2017

FIGURE 3. GLOBAL ANALYSIS OF HOUSEHOLD DEBT TO GDP
FIGURE 4. A SMALL FALL IN REAL INCOME IMPACTS DISCRETIONAL SPENDING
mortar store to an unprofitable sale, or a less profitable sale, on an
online environment.
As previously mentioned, the prevalence of 3D printing is going
to increase.
Another big factor is social proofing – social media reviews and thirdparty
ratings that influence buying decisions. This is going to be much
more powerful than traditional mainstream media, which reaches less
than half of the people it did 10 or 15 years ago.
The good news is that bricks-and-mortar stores still have a big
advantage over online retailers as they can provide more effective
personal advice.
The opportunities for bricks-and-mortar storeowners is that they will
attract a lot of customers if they can offer a really well presented store,
really well trained staff and a great experience.
RETAIL ‘101’ FOR TOUGH TIMES
There are four areas that retailers should concentrate on during a
downturn: basics and controls; costs; cash conservation; and maintain/
increase sales.
Let’s start with complete financial control. Jewellers need to be very
aware of their gross profit (GP) percentage rate, particularly if they have
a workshop.
Most costs are okay for many small businesses in this industry;