Discounters: built for the era of austerity

Q: How did the recent economic downturn affect your company as a retailer?

Original Factory Shop
"Mostly positive. From a property point of view we were able to convert a number of Woolworths stores to the Original Factory Shop and really increase our rate of growth.
Also, as we are a value retailer selling discounted brands, we found that many mid-market consumers started shopping with us. They like the fact that they were getting known quality product at discounted prices, rather than just cheap products."

Select Retail
"We rather think we bucked the trend of many fashion retailers and had a very strong year. With a portfolio of 120 stores across the country and opening 20-30 each year we expect our sales to continue to grow considerably."

Store Twenty One
"I think with all key sectors in the economy there was a natural shift in consumer confidence to spend, however for Store Twenty One there was real opportunity to attract and welcome a new wave of customers who may have previously not discovered us."

Q: What do you see as the key cultural differences between working in the Value sector and other retailers?

Original Factory Shop
"Our colleagues are our customers and vice versa so that means we understand our customers really well and can quickly respond to changing needs. We like to be the customers' champion on value, to do that and remain profitable we all have to be very cost conscious, that is built in to the culture".

Select Retail
"Fundamentally, despite cultural differences, retailing is retailing. However, the value equation (price x quality = value) is always uppermost in our minds and it faces the buyers to be focused on what the customer wants. Margin, volume and use of space remain key measures on performance. Channels of communication are open allowing decisions to be made quickly".

 Store Twenty One
"Pace! Within VFM {value for money) it's all about people and product, with a significantly lower asp (Average Selling Price) than the mainstream retailers, volume becomes critical to success. Finding the right commercial person to drive this strategy forward with good basic retailing skills and a hands on approach is key".

Q: From a career perspective, what advantages to you think retail professionals gain from working for a 'value brand'

Original Factory Shop
"It is retailing at its best, because you have to stay wedded to the concept of low prices AND good quality, you have to be really efficient in what you do, whether that's buying, running stores or logistics. It's a great environment in which to learn the art of retailing".

Select Retail
"The value market continues to expand at pace. It is a great time to join as the opportunities for talented people are endless. The working culture and environment for a 'value brand' is fast and can change quickly and trains you to be quick thinking, hard working and a adaptable professional that will fit well into any retail organisation".

Store Twenty One
"Working within a 'value brand' gives any retailer a good commercial grounding in the concept of the key principles of basic retailing. The need to understand the customer, their lifestyle, their constraints is key - they like 'value' but do not want to be perceived or treated as 'cheap'".

Poundland
"Our managers often feedback that one of the biggest advantages of working within our stores is the ability to make a real difference to the bottom line. In some cases they are able to decide what products will do well in their particular store and order accordingly".

Q: Specifically what opportunities for career progression does your organisation provide for retail management?

Original Factory Shop
"We are growing rapidly and are intent on retaining and developing our own people. We have introduced the roles of trainee buyer and merchandiser this year, giving people the opportunity to progress. In the warehouse we have stepped up our quality controls and introduced two new roles to check stock. In stores we have area managers in training and Senior store managers with extra responsibility. So, we are working hard to develop our people right across the business".

Select Retail
"Being a successful, fast growing, fashion forward retailer we offer management a stimulating environment to develop their skills, take ownership of their stores and we welcome experienced management to join our teams. With the opening of 20-30 stores this year the opportunity to progress and learn new skills is significant for the right person".

Poundland
"Poundland is still continuing its huge growth and where possible we like to recruit from within for both store management and area roles. There are also opportunities if colleagues are flexible on location to move into roles within our Customer Support Centre".

Store Twenty One
"As an expanding company we have recently introduced a number of new roles specifically aimed at store managers who are looking for career progression, store managers can now progress into the following roles

• New Stores Project Manager
• Area Manager responsible for between 6 and 12 stores (this role aims to develop Managers to become Regional Managers (20+ stores)
• Regional Support Managers
• Store of Excellence Managers
• Training Store Managers

We also offer secondments into other areas of the business to assist managers to develop, these include roles such as new store coordinators.

In addition we have introduced a Management Development Programme aimed a developing ambitious and talented employees from sales assistants to assistant managers, to become a store manager of their own store within a six-month period".

Q: As we move away from the recession, what impact do you think this will have on the value sector?

Original Factory Shop
"The value sector is here to stay, once customers realise they can get quality product for less they are not going to want to pay more. Clearly as the mid-market recovers the rate of growth for value retailers may be slower. Retailers who are differentiated and close to the needs of their customers will do well, those that lack relevance will fail. That really has never changed".

Select Retail
"We're not out of the recession yet and with higher tax affecting consumables the value sector will continue to grow and customers will continue to be smart about money. What we offer our customers is continuous freshness in stores and on trend pieces at great prices and great quality. This is a recipe that works no matter what the economic circumstance".

Store Twenty One
"Any economic change will be slow and measured which will undoubtedly lead to a legacy of caution. The value sector has moved forward significantly and changed the perception of many consumers showing that good quality can come at great value. Trying is believing, you can have a Range Rover and still shop in Store Twenty One, it's ok!"

Q: What plans does your organisation have in store for 2011?

Original Factory Shop
"We have opened 60 new stores in the last couple of years. We now have 160 outlets and plan to keep going to 600, so that will keep us busy for a good long time. 2011 will also see us open up our 100k sq ft warehouse extension here in Burnley and we plan to further develop our on line business....so lots happening".

Select Retail
"During 2011 we plan to add a further 20-30 new stores to our portfolio. We aim to grow our footprint to around 3 - 4,000 sq ft which will enable us to expand our ranges even further".

Store Twenty One
"2011 will continue to be a year of expansion and growth. With a structured development programme designed to inspire and motivate, alongside a programme of new stores and refurbishments the brand will continue to grow, develop and establish itself as one of the UK's most successful value brands".