Back to the regular Wednesday Brandish after our nudiustertian special on Coles Myer.

Brandish is designed to be the Agora, or a watering hole in the Australian retail community. Brandish is intended to be a meeting place.

Brandish seeks your input.

As merchants we are members of a large community, but we tend to work away from others in our industry. Brandish is a tool for members of the 130,000 strong Australian and New Zealand retail management community to get a message or an idea out to other retailers.

While we are not quite up to Wiki technology; it will come.

Meantime, send us your news, rants, whinges and bragging for publication either off the record, or loudly blowing your trumpet.

There is little news about the CML bid. The politicians and other interested parties, so noisy on Friday, have gone quiet.

The identity of the initial bidder(s) remains unconfirmed, and there is talk of a rival bid. We have been told than the bid is highly conditional and that the bidder wants board co-operation.

When the Coles Myer board met yesterday to formally discuss the buyout, they should have had two priorities near the top of their agenda.

The first is to resolve this contretemps as soon as possible.

As recruiters we well understand the effect this can have on team morale. It is highly destabilising.

Uncertainty gets people moving along a line that runs from “staying forever” to “out of here as soon as possible”. The nasty consequence is that in the last couple of days, pretty much every mid to senior manager will have moved some distance toward the latter option. The longer speculation continues, the further people will move. Unfortunately for Coles, it's the best people who get the opportunity to depart first.

The second agenda item is if there is to be a sale, it is the board's duty to extract the highest price possible for shareholders. Thus they may want to start an auction.

These priorities militate against each other.

The chairman's statement and letter to shareholders does little to address either of these causes. Allert mentions “the next few weeks” and “due course”. Little urgency there - and nothing about the staff. Not a word. I hope they are doing something internally.

The board needs to understand that there are many stakeholders. They address the 400,000 shareholders (with scant information) but they must not ignore suppliers, customers, the community and most of all, the 165,000 Coles team members.

Two things may drift in this silent fog: CML shares and team morale.

Roger Corbett is farewelling Woolworths with a big bang – a billion dollar profit. The result was a lift of 24%, led by strong supermarket results.

Woolworths has used improved technology to bring costs down. The improvements Woolworths has implemented allow lower shelf pricing and increased margins - the stuff of retailers' dreams. This represents a shift in retail thinking.

There was a time when stores were supreme. They told HQ what to buy. We went through a period when the buying office ruled by cutting good deals. Later still, people with marketing skills rose, designing category mixes.

Now the successful big retailers are ruled by those who understand the importance of managing the timing and dimension of the merchandise mix. They focus less on what to buy than on the issues surrounding how many, when, and where. The efficiency of merchandise handling is the key profit driver where improvements have been available.

Corbett and his team seemed to learn this before Coles and gained a jump.

Corbett has also stayed close to stores and customers. He is not above helping a store manager clean up a car park full of trolleys. While trolleys are not his accountability, it is symptomatic of a leader who listens and exposes himself to the possibility of hearing from those involved in moving the merchandise the last three feet of its journey.

Roger Corbett is the complete package. He is a retailer – unlike John Fletcher. He understands the Australian market – unlike Dennis Eck. He is honest – unlike Brian Quinn.

How many years back do we need to go before we find a CEO at Coles Myer who could put a tick in all three of those boxes?

The recruiters at Orex have more than a century of retail management experience and five decades of recruiting.

When you say OTB, GMROI, SKU, Stock turn, Assortment, First Margin or (heaven forbid) Markdown, we know what you mean.

At Orex, you deal with people who've been around our industry for quite a while and people who will make great matches. There is no substitute for in-depth understanding. This job demands experience.

…it's who we know

We have a huge databank of retail managers. It exceeds 60,000 people and growing daily. If the right candidate isn't in our databank; someone who can point to the right person will be there.

To learn what Australia's leading specialist retail recruiter can do for you, call Rob Lake or Christine Sturgess on 03 9349 8989.

Remember “surfing the net”? No-one says that anymore. Well no-one except Nanna when telling the bowling club how she's learnt to play the computer.

Internet is no longer something we do occasionally. It is very mainstream and for most people, an integral part of daily life.

Our expectations have risen. No one is willing to “click and wait”. One billion people now have broadband access. We want instant response and we want it to be good.

Many early web pages could have been printed documents. They were an electronic brochure that was often static for years. It was an information delivery system that went from one to many, a bit like newspapers, television or the phone book.

While it was called a web, it didn't behave like one. Internet users followed a chain of logic that was generally quite hierarchical. This is being replaced by a more exploratory experience that wanders through information stores, depositing and withdrawing, and is more like real life.

In the last two years we have seen an explosion of sites that behave like webs. Social networking site MySpace; video sharing at YouTube; its photo equivalent Flickr and Wikipedia are all highly interactive. These sites are the playground of Gen Y.

The web has moved relatively quickly from a read-only medium to a two way interactive medium in which users collaborate and participate.

This new generation is being described as Web 2.0. It's not a technology or a group of technologies. It's a mindset; a way of viewing the Internet.

However, while customers seem to have complete confidence in the web and are active participants, many businesses are lagging. Companies seem unsure about what to do and they seem scared to take calculated risks.

Web 2.0 stands for the social software of wikis, blogs, really simple syndication (RSS) news feeds, tagging and community sites. Throw in non Internet activities including buddy lists and instant messaging if you like. It is a permissive society where users borrow, append and mix their data freely with one another. However, while the technology and tools may bring new freedoms, they also represent virgin territory for virus writers and identity thieves.

Advertising is shifting from one way megaphone spruiking, where it has been for centuries, to a place where the consumer is more sceptical, more powerful and who is best sold to when the context is right.

Historically, most advertising has been pushed out to the consumer. Messages are broadcast in rich media formats with the hope that wit, fear or creative brilliance would win attention.

Advertisers have attempted to be more specific with placement. Witness the thingy (carrying an ad for Amex) that divides your groceries from those adjacent in the supermarket queue and the message in front of your nose in the urinal. We are about to see ads on the black conveyor belt.

Product placement within programs and films are attempts to get us before we switch off, or zap through the ad on a tape, hard disk drive or recordable DVD. Content sensitive ads are getting to iPod users. The last few James Bond films seem like little more than a 90 minute product placement opportunity, and this trend will spread.

We are now seeing more context sensitive advertising. These are ads that only appear in response to something the advertiser has learnt about you. Google Adwords appear in response to your Google query. Social networking sites will soon become the beneficiaries of a huge shift in advertising dollars. On these sites, the ad isn't pushed out by the advertiser; it's pulled up by the consumer.

The banking community is being advised to develop Web 2.0 applications that support multi-channel delivery for personal account information and alerts. Firms are also encouraged to monitor emerging Internet social networks for their potential for partnerships to offer services within the network or to create non-traditional distribution channels by dealing with customers one-to-one.

We are experiencing a major shift in the way the market accesses, shares and consumes information which will result in shifts in the way we consume products and services.

Retailers need to adapt their marketing strategies to maximise the benefits that might flow from this shift.

Noni B

NPAT of $8.2 million up 24.1% on FY05
EBITDA of $14.5 million up 22.8% on LY
Sales of $115.7 million up 7.8% on LY
Loyalty program grew to over 600,000 members

JB Hi-Fi

The Reject Shop

Billabong

Woolworths

Sales up 20.4% to $37.6b
EBIT up 37% to $1.7b
Net profit up 24.3%, passing $1b
Supply chain lead over Coles is a winner
Gross margin improvement

This is a role in which you can build a planning career planning a pivotal category in a big business. You can take your place in a winning team in a retail market leader

Your role as Category Planner is much more than adding numbers; it's about support ing the Category Manager and Buyers in this iconic Australian retailer. A household name, team based culture and growing business, are only a few of the reasons that you will want to be a part of this expanding team.

You have two to three years of proven success in planning, financial control and analysis. In conjunction with the Merchandise Manager, you will ensure that maximum margin is achieved. Your strong relationships with Buyers and understanding of retail buying processes enables you to add value by making recommendations and challenging the status quo. Technology savvy, you interpret data and understand how it affects the business, GMROI and GMROS are your mantras and you drive performance across all categories. You must possess advanced Excel skills and it is preferable that you are familiar with planograms.

A team based approach, ability to build relationships and motivate to excel are as important as the technical skills. Innovation, enthusiasm and a proactive approach are highly regarded.

You will be support ed by an experienced and support ive manager and team, ongoing training and the opportunity to build a career within planning or the broader business.

If you know the impact good planning can make, and numbers aren't just numbers, we'd like to hear from you!

Please call Jara Bojcuk on 9349 8989 for a confidential discussion or send your resume to 5111.orex1@hiredesk.net.

Take a look at Officeworks and Bunnings. How did they achieve so many stores so quickly?

They realized their concept was a winner very soon after opening their first few stores. Rather than just bowling ahead, replicating what they'd just done (the same way as they had just done the first few), they invested in establishing standards, processes and systems that would enable them, more strategically and with greater efficiency, to replicate what they'd already done.

Rolling out stores is like racing a car. You check your rear-view mirror regularly; but only a glance each time. You watch the car or cars immediately ahead but your focus is way ahead – to the next turn.

Over the next few weeks Brandish will look at what makes rollouts successful – and how to muck them up. We will draw on the experience of Rod Williams of Push Retail. Rod was a key driver in rollouts for Coles, Officeworks and Bunnings and has recently been through refit and rebadging exercises with other retailers.

Key Actions in a successful rollout.

Getting certain balances right comes with experience. Usually the “sweet spot” depends to a large extent on the rollout strategy, and the lag time. E.g. If each store takes 12 months from go to whoa, and the plan is for 12 stores per year, then you can't wait until you've opened the first store before your review. Because the potential is that you've already made 12 mistakes! The “Review and Improve” process needs to start immediately and be an ongoing one.

But then there's the balance between getting each one perfect and doing them quickly. Analysis paralysis and getting nowhere quickly versus being very quick but short sighted. (Depends on rollout rate, how much time you've had to prepare and the likely rate of ongoing change – so; the need for flexibility)

Balance between capital cost-effectiveness and effective cost-in-use. (looking ahead to likely changes and to maintenance needs – it's never that far) It may cost a little extra up front to (say) build some flexibility into a fixture design but nothing compared to the cost of replacing inflexible fixtures when they're found to just be unsuitable.

Draw the line (in the program) beyond which any change requests receive a firm (but considered) “No”. Question: Is the benefit from the proposed change worth the disruption to the rollout program? Usually it is impossible to cost-justify a very late change – so go without it and roll it into the next store.

Rod Williams of Push Retail is happy to talk to retailers about rollouts and upgrades. Call 03 9415 9413.

Like Bunnings, US big box home improvement chain Home Depot is facing tougher conditions.

Home Depot expects its full-year results to come in at the low end of forecast due to a combination of a slowing housing market, rising interest rates and higher fuel prices.

HD has been making strides to improve its customer service and has shifted a portion of its focus to the supply side of the business.

Home Depot is stepping up its store improvement initiatives including re-lays in many stores, and installing self-checkout lanes.

Monash University Australian Centre for Retail Studies is running their Strategic Value Optimisation in Retailing program in Melbourne during late October.

Learn how to effectively blend science and art in a multi-channel setting to leverage greater value from all components of an integrated retail offer.

This engaging 5 day residential senior management development program is designed to provide a world-class educational experience under the guidance of academic experts and retail industry consultants from the Retail Management Institute, Santa Clara University, California, USA.

It is ideal for senior managers who are key decision makers in retail and retail related businesses including: Managing Directors, Chief Information Officers, Chief Finance Officers and General Managers particularly in the areas of Operations, IT, Marketing, Merchandise, Distribution, Finance, Strategy and Business Development.

Further details are available by calling Lenore Harris at ACRS on 03 9903 2455.

Be inspired by practical examples of current and evolving retail trends in this dynamic presentation which provides insights on international retail strategies.

Drawing the best initiatives from a study trip to the UK and Asia and combining insights on international trends, this workshop is aimed at proactive retailers who are committed to being a leader in their field.

ARA Specialist Trainer Kevin Hennah's strength is coaching retailers to increase sales and customer numbers through merchandising strategy, innovative use of space and sales-driven store design.

His background includes 9 years with The Body Shop in Retail Operations, Seasonal Planning, Gift Design & Production, Training and Merchandising.

Since 1999 Kevin Hennah has been working closely with a broad cross section of retailers on strategies to improve their businesses.

Two half day workshops in Melbourne :

11 September 6pm - 9pm

13 September 9am - Noon

Contact ARAV (03) 9321 5000

If the business model is essentially the same, why do some franchisors succeed when others fail?

At the 2006 National Retail Forum, held 19-21 September at the Melbourne Exhibition & Convention Centre, delegates will hear the initial findings from cutting-edge research into what motivates franchisees, including retailers, to succeed.

Chris Bothams, winner of multiple awards for his work with Perth 's Dymocks Carousel franchise, will preview his research-based MBA and discuss the Dymocks Carousel story in his presentation entitled – “What successful franchisors are saying”.

Having travelled the country, interviewing some of Australia 's most successful franchise owners and managers, Bothams' results will surely enthral and inspire National Retail Forum delegates.

Sponsored by Fujitsu Australia, other not-to-be-missed presentation topics at the Forum include: tips for successful global retailing; 50 keys to make your shop a winner; what you might learn in 10 minutes in a retailer's lunchroom; and the global trend towards personalised shopping experiences.

Lenore Harris from the Australian Centre for Retail Studies (ACRS) – Conference Partner of the 2006 National Retail Forum – will reveal the preliminary findings from an extensive 18 month “Shopfloor to Boardroom” study.

"The study will shed light on typical career paths in retail, attitudes to retail careers, positive or negative aspects that impact on retail careers, and what it takes to get to the top in retail. We also hope to be able to reveal a profile of characteristics that predispose individuals to be a good fit with retail as a career," says Harris.

For more information on the 2006 National Retail Forum visit www.retailexpo.com.au.

Civilisation has reached a milestone. For the first time ever, fatties outnumber the hungry.

There are now over one billion overweight people worldwide, compared to 800 million who are undernourished. Obesity was once a disease of the wealthy, now it is becoming more a disease of the poor.

The solutions are simple. Reduce calories, reduce fats, move from processed to simpler foods and exercise more.

The trouble is that we agree that fibre is fine – provided we can follow with chocolate.

Granted, he isn't the most high profile of shoppers. Greying, often with an expanding waistline and thinning pate, the middle-aged man has traditionally been overlooked as a consumer worth wooing.

But research by two Melbourne academics suggests the humble "greydollarfella" could soon rival the sought after metrosexual as a target for retailers and marketers. The Age reports.

Stung by rising fuel costs and a feeling that their local stores are more expensive and lack the range, Australian regional shoppers are turning to online shopping.

According to surveyor ACNielsen, the number of regional Australians shopping online has increased 17 per cent in 2006 from 2005.

Rising fuel prices have also created an opportunity in the US for online retailers by increasing the rate of online shopping among consumers. 34% of online shoppers surveyed have shopped online more in order to save fuel costs associated with going out to shop retail stores. That includes 11% who have shopped online “a lot more” in efforts to save on fuel, and 23% who say they've shopped online “somewhat more” for the same reason.

Rising fuel prices makes online shopping more appealing.

As gasoline prices continue to soar to ludicrous heights and consumers get more comfortable with E-Commerce, some retailers are starting to question what to push—and play down—this holiday season. For example, the popular shop-online-pickup-in-store and buy-online-and-return-at-the-store both end up forcing the consumer to use up that precious gas. Do these kinds of approaches merit being thought through again? Storefront Backtalk

The two largest supermarket chains in Boston have banned a shopper from their stores, calling her a disruptive influence. The 45-year-old single mother of two says the stores are blaming her for their failure to accurately price their products.

The shopper has been pursuing pricing errors and the free merchandise they yield at a variety of retailers for close to nine years, usually three to four times a week. She calls what she does a hobby, but others who know her describe her as a professional shopper.

She takes advantage of chains' price accuracy guarantee, which gives shoppers a product for free if it scans at the register for a price higher than advertised. She is so good at finding mispriced items that she says she typically snags more than $200 worth of free merchandise per store visit.

Briefs

• Colorado urges shareholders to reject the ARH offer
• API resumed trading on the ASX yesterday, falling almost 20%
• Australian consumer confidence tanks
• Harrods and Selfridges in trouble with the apostrophe police
• Surf retailer Brothers Neilsen calls in the administrators
• Next Autumn's styles for men: The New Frontiersman and Mr Clean
• The drum