
- John contemplates the future of retail
Retailing guru John Simpson is a professional CEO with more than a quarter of a century’s management experience with some of the biggest and most respected names in UK retail. Now consulting for a range of clients - see http://www.jdsimpson.co.uk/ John spoke exclusively to the Pressman PR news blog about his vision for our shopping future…
Welcome John. You’ve spent 25 years in retail. What was your first job and was it any good?
After graduating from Durham University I gained a position as an assistant buyer with a small industrial company. It was terrible and I absolutely hated it but I learnt an awful lot about buying. After a couple of years I moved on to Argos which was bliss in comparison.
You’ve witnessed the rise of the out of town superstore, the birth of the internet and the credit crunch hastened death of High Street brands such as Woolworths. What’s been the biggest single change you’ve seen during your career?
Definitely the rise of the internet. The web has given us all the ability to compare retail prices in an instant and that has had a huge effect on retailing.
How worried are you about this recession? Is it simply media hyperbole or are the banks to blame? Why do you think people aren’t spending?
Well people are still spending. If you look at online retail figures, for example, they are up 15 per cent, year on year. It’s the discretionary purchases that people are cutting back on.
I am worried about the recession because I think it is going to be long and deep but I also think the media makes things much worse because they like to whip it all up into a frenzy. If you look at the way they are reporting swine flu at the moment you can’t help thinking, “Is this all hype or should I really be concerned?”
That said, there is a recession and I do feel financial services have been mismanaged in the past which is what led to this mess.
As a freelance retail “gun for hire” what are the opportunities like out there right now?
I have looked into buying various businesses and there are a lot of opportunities out there at the moment. But just because something is cheap it doesn’t necessarily mean it is good value. There is a saying in retail which goes, “Turnover is vanity, profit is sanity.” And I’ve seen a lot of high turnover businesses whose bottom lines aren’t very impressive at all.
Has the credit crunch had much effect on your business life and when do you think the economy will recover?
I think we are looking at a tough year ahead but we should start to see recovery in 2010.
How important do you think PR and positive publicity is for business?
Very important. I think people today are more media savvy than ever before and things like adverts in glassy magazines mean less now than they used to. Things like web product reviews are becoming much more important. If you see an advert for a new TV for instance, it doesn’t matter how glossy the magazine is. If you go online and read three negative product reviews you won’t buy it.
What single piece of advice would you give someone starting out in business today?
Cash is king. Watch your cash flow because if you don’t have money coming in you don’t have a business.
What has been the single greatest high point of your career?
Growing the Jewellery Channel from virtually nothing to an £80M turnover company with two live TV channels.
And the worst low point?
When I was at B&Q there was a real macho culture with 5am store walks. Getting hounded by your buying director at 5am was definitely a low point!
We buy all our books and CDs online now. What is the point of shops like HMV in the twenty first century? Aren’t they a bit like bow and arrow shops after the invention of gun-powder?
I don’t see the point in HMV and I really can’t see chains like them or Borders making it far into the twenty first century.
Tell us John, how will we all do our shopping in 2050? Will there still be any such things as shops? What does the retail future look like?
There will still be shops but they will be showrooms for a much wider product range which won’t be physically held in store. We will all have appointments to shop and the sales team will be expecting us when we arrive. Our phones will send them a signal to let them know we are approaching so they will be ready to greet us when we step through the door. They will be ready with suggested purchases based on our spending habits. You only have to look at how things have changed over the last 20 years to know that in another 40 it will be a very different experience again.





k on a three year role at the Growth Investment Network at the end of 2007 just as the credit crunch was beginning to bite. Has the role been more challenging than you expected?

