Posts in July

Jewellers shut as buyers prefer online links…

July 19th, 2013   •   no comments   
Hatton Garden: In trouble?

Hatton Garden: In trouble?

Hatton Garden: Closing the shutters?

Hatton Garden: Closing the shutters?

..At least that is the claim made in a short item in the Daily Telegraph newspaper, that I came across recently, and also mentioned in The Times, and London Evening Standard. According to the piece, ‘discounted internet jewellery has forced one in five jewellers in Hatton Garden to close in the past year, and shops are also disappearing from high streets throughout Britain’. This bold assertion is made on the basis of a survey of 500 high streets conducted by an online jeweller, and refers to closers of H. Samuel, Ernest Jones, and Goldsmiths shops in what it describes as ‘key locations’. Now, I’m not in a position to criticise the research – I haven’t seen it because my enquiry remains unanswered – but I think the headline is just a little too pessimistic. No doubt the research was conducted with appropriate rigour, but is the conclusion just a bit too convenient to be credible?

When I first got involved in the jewellery sector nearly thirteen years ago it was confidently predicted that the internet was going to kill the retail trade stone dead. It never happened! Sure, the internet has forced many jewellers to up their game, not least because it is now so easy to compare prices, and commodity items have done well online. But overall the internet has proved an adjunct to the traditional business – if used wisely – rather than a knockout punch! For one thing it has given the traditional trade a nice shiny new, world-wide, shop window to exploit! And it can attract discerning customers with serious money, who require the reassurance of a bricks and mortar business, to the door of the upmarket or niche jeweller from further afield. Many now thrive on a combination of internet and physical presence that gives clients the best of both worlds.

But apart from my general unease about the validity of this assertive headline I also have a couple of other gripes. The high street jewellers referred to in the piece are pretty firmly established in the online environment themselves, and are canny enough to realise that a vast estate of shops all requiring staffing and servicing doesn’t stack up as a business model any more – specially when they can do so much of their core business online! Why not sell basic commodities that way and use the valuable showroom space to show off a little bit; generate excitement and up-selling opportunities; or to function as tangible customer service hubs?

Hatton Garden: Plenty of competition!

Hatton Garden: Plenty of competition!

But back to the article, and on the subject of Hatton Garden the dotcom company spokesman quoted confidently asserts that “17 of the 105 shop fronts have disappeared in the last year, with many turning into purely wholesale trade or turning business online only”. I find it hard to belief that the internet has had such a detrimental effect in such a short time. Firstly, and being picky, seventeen shops is more like 17% of the Garden’s 105 shops, not the 20% implied by the expression ‘one in five’ quoted at the top of the story, but maybe he was misquoted or I’ve misunderstood! And secondly it has long been the case that many of the area’s businesses traded under multiple identities and that wholesale and private clients have always made up the mix.

So it’s hardly surprising that businesses have once again adapted to the times, and concluded that expensive shop fronts aren’t the best place to slug it out on price with ‘competitors’ from the same stable.

Hatton Garden: Online part of the mix.

Hatton Garden: Online part of the mix.

Apparently, ‘some online retailers have seen sales up 300 percent in the past five years’. Nobody disputes the increase in online sales, but from what base, and what proportion of that increase comes from traditional retailers going multi-channel rather than buckling under the online onslaught? Are we to imply that this illustrates the decimation of high street jewellers? On this evidence  I would say the case remains unproven! What do you think?

Michael Hoare

Strategic Retail Issues: Tiger Kidnap and Social Media

July 4th, 2013   •   no comments   

An item by crime correspondent Martin Evans in yesterday’s (3rd July) Daily Telegraph newspaper highlights the unforeseen hazards of using Twitter. According to the paper, burglars monitor social networks and pick up useful information that helps them target empty homes whilst their owners are on holiday. ACPO burglary spokesman, Assistant Chief Constable Gareth Morgan, is quoted as saying “Users of social networking sites need to use caution when telling people where they are or posting messages about valuables in their possession or in their homes.” The tactic apparently forms part of the plot of upcoming film release The Bling Ring, due out later in the year, but the risk isn’t just to the rich and famous, it also applies to lesser mortals, to retail business, and encompasses more calculated crimes too.

Social media can provide business with extraordinary tools, both for marketing and for their original use in keeping in touch with friends, colleagues, and those that share interests. Small retail businesses in particular can use social media to their advantage, building up contacts with potential clients and satisfied customers alike. However there may be unforeseen consequences from sharing the wrong kind of information, particularly where employees work in sensitive or vulnerable environments. As you can imagine jewellers are generally security aware, but social media have opened up a potential chink in their armour. During my twelve years as a spokesman for the retail jewellery sector, and co-founder of SaferGems, I saw all sorts of information shared on Facebook, and some of it would have helped a criminal track staff movements or indentify times when a shop would be vulnerable. And proprietors aren’t exempt either! It’s not just junior staffs who make slip ups, and it is all too easy for anyone to innocently share information on social media sites that could be extremely useful to fraudsters or potential kidnappers; the essence of Tiger Kidnap being to build up a picture of the potential victims movements through stealth, stalking, and secret surveillance.

Tiger Kidnap

Surveillance: No need to leave the desk!

Coincidentally, only a couple of days ago managing director of Training For Success, Ian Kirke, informed me that they have developed a highly participative workshop that provides pragmatic advice to members of staff who work in vulnerable roles and high-risk organisations, for instance within the financial sector. After recently providing a number of workshops for a leading UK financial organisation they balanced an overview of current threats – how to mitigate the risks posed from social media (e.g. Facebook, Twitter, etc.) – with discussions and analysis of police case studies. Facilitated by a serving Detective Superintendent (and Facebook user) the programme also got to grips with a scenario-based exercise exploring what to do if a demand/threat is received and how to work alongside the police.

As a direct result of the intervention staff immediately corrected existing deficient security settings and conducted a review of potentially hazardous content. Whilst there is as yet only a small, but growing, threat of Tiger Kidnap, exactly the same techniques could apply to the jewellery sector, and my intuition tells me that jewellers need someone with the right balance of theory and ‘real life’ experience of law enforcement to analyse their weaknesses and help build up their defensive strategy.

MICHAEL HOARE

Note: TFS works with organisations to minimise threats, providing training courses and consultancy to help companies and workers deal with business risks and threats. They can be contacted via www.tfsuccess.com