Restrictions on out-of-Town Retail Units

Posted in Aberystwyth, Competition

An article caught my eye the other day regarding the refusal to life the ‘bulky goods sale restriction’ that is on the retail units at the Parc y Llyn site on the outskirts of Aberystwyth. The reason why this article interested me was because the amount of disused units there at the site and I was quite surprised to hear that the restriction wouldn’t be lifted to attract new businesses to the area.

Of course I’m new to this sort of thing so I had to do my research on why the planning inspector ‘Gwyneed Thomas’ would rule not to life the restriction. Find below my findings on why the restriction should be and perhaps shouldn’t be lifted.

The reason why Mr Thomas ruled what he did was because he felt it could damage to the town centre and the proposed shopping development on Mill Street (In 5 years time). Usually retail units placed on the outside of town are done so as they usually offer ‘bulky goods’ which require cars to take goods away (Televisions from Currys for Example) and out of town sites are perfect as they can often offer ample car park spacing which the town can’t. These units are good if they’re able to provide goods that the town centre cannot.

The problem comes when/if a bulky goods restriction is lifted; this will mean that businesses that offer clothing and other small goods can move to the out of town retail units. This then creates competition between these units and the town-centre shops as goods are ‘comparable’ and can be compared on price etc. Retail stores on the outskirt of town might benefit from lower overheads and therefore lower prices which give them a competitive advantage over inner town shops. People may then tend to visit stores outside of town instead of bothering going into the town therefore putting businesses potentially out of business and creating lots of empty shops… poor run-down town image etc.

Although there’s a proposed retail development for Mill Street in the town it won’t be ready for another 5 years and similar to the major redevelopment on the high street which would see the old post-office building knocked down could be scrapped… and so might not even go ahead. You can see why they wouldn’t want to remove the bulk goods restriction but this damages stores outside of town… MFI’s old unit has been empty for 18 months, former Tiles R Us and Richley’s etc. With Business Rates in town increasing as much as 100% + (Such as Kraxi’s on Pier Street) it’s putting many shops out of business in town so surely an injection of retail businesses is what the town/local economy is in real dire need for, not more restrictions.  

Matalan, Peacocks (clothing retailers) have crept into the Ystwyth Precinct but of course that’s in the heart of the town centre.

Many theorists believe that these situations needs a full and proper investigation whereby restrictions can be removed on outer town retail units if they’re below a certain ‘comparable good’ / ‘Performance of Town Centre’ percentage that wouldn’t have much effect on the town centre. So perhaps an independent report needs to be carried out on the impact of this on the town centre.

Written by Rhys Gregory, Third Year Management and Business Student, Aberystwyth University.

In response to: http://www.cambrian-news.co.uk/news/i/8232/

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Packaging is Your Product

Posted in Competition, Ideas, Innovation, Products

Someone posted  a question on the UKBusinessForum earlier regarding whether or not they should invest in packaging and this got me thinking. Many businesses are starting to see the benefits of packaging their product properly, not just in terms of keeping their product inside safe but also from a branding point of view.

Many businesses use ‘Packaging’ as part of their core product, they attempt to sell the packaging to you and not just the product. A case study which I often like to refer to is Mr. Funkleberry T-Shirts. I have experience in this area and I’m aware of how much it costs to have even the bentest quality t-shirts made and printed on such as these but how is this company justifying the price tag of £25? – I’ve never heard of the brand until recently…. As well as a quality product the company is trying to use exceptionally good packaging in order to support its brand. The product comes packaged in a branded box… which looks professional and gives the impression of quality as time and effort has been put into it. They also add a card with a unique T-Shirt code which adds to it. The company is then able to promote it as a quality high priced good.

Our Next Case Study looks at re-packaging products in a way which is different, as well as giving the product added benefits from doing this it’s also a way of competing with other companies. 3W Water (Three Wells) is a water company and is quite small and with the water market being as competitive as it is, how on earth does this small company compete? – Well they compete on packaging! – They repackaging a standard ‘Water’ drink into a squeezey  pouch, much used by Capri-Sun this allows the Water drink to be frozen in a fridge freezer but also is able to be squashed into ones pocket. Therefore instantly giving the product a unique selling point.

Of course, investing in packaging in this way may not be beneficial to every company. You’ll have to research whether or not it’s worth while… is the demand there for a quality packaged product? Is your demand curve elastic or inelastic and therefore is quite price sensative… are there lots of competitors etc….

New Supermarket Marketing Strategy

Posted in Competition

I’m sure everyone has seen an advert somewhere or other with supermarkets advertising that they have so many thousands of products cheaper than one another, then 5 minutes later another advert saying that they’re cheaper instead.

Well I have come up with a Brilliant Idea..

This form of marketing is getting rather annoying because neither one is cheaper haha.

So why doesn’t a supermarket turn around and be mature and say ‘’Look, we’re equally competitive on a range of products and we don’t have to advertise it’’

-          They can still compete on price and advertise their sales on TV or in store, however don’t advertise tic for tat… the same advert over and other again.

-          Surely a supermarket that behaves maturely such as if Tesco (the market leader) were to do this will help their brand image instead of damaging it through immature advertising.

Co-Op to Become CK Supermarket, Waun Fawr Aberystwyth

Posted in Aberystwyth, Business Review, Competition

Co-Op to Become CK Supermarket,  Waun Fawr Aberystwyth

Being back at home over the summer you get to miss out on local news happening in the area of your University whilst being away.

I have recently found out that a popular student supermarket store in Aberystwyth is to become a CK Supermarket.

The Co-Op store was opposite the main University Campus and the Cwrt Mawr University Halls of Residence.

I’m disappointed that Co-Op have lost this store to CK supermarkets, it was an important store with students using it all the time.

I’m sure CK Supermarket will be just as good but what a blow to Co-Op.

The Reason for this

Co-Op recently acquired Somerfield and part of this acquisition is for Co-Op to meet regulatory local competition rules, which means they must get rid of a store because they now own the Somerfield store in the heart of Aberystwyth Town.

It makes sense that the business doesn’t own two large stores in Aberystwyth as it pushes out other businesses from moving in.

I’m glad to an Independent store gain control of a powerful store in Aberystwyth.