Our licensing spotter, Ian Downes, casts his eye over activity in the discount retail sector.
One of the most significant changes in the retail landscape over recent years has been the rise of the single price retailers – the value retailers such as Poundland, 99p Stores and Poundworld.
These retailers are omnipresent on the High Street and are now part of our shopping culture. Indeed retailers like Asda have adopted the ‘if you can’t beat them join them’ strategy with £1 and £ 2 aisles within their stores.
From a licensing point of view there appeared to be an initial reluctance to engage with this sector of retail which always surprised me – many of us will remember Woolworth’s being a dominant force on the High Street and in licensing: much of their offering was about value for money. And I don’t think this was the cause of their downfall… but that’s for another debate.
Some of the reluctance for licensors to go ‘single price’ was to do with the retail presentation of their property and also the impact this positioning might have on other retail relationships.
I think licensors have now seen the value in value – it delivers volume and it fits into the mantra of ‘fish where the fish swim’; consumers are shopping at value stores regularly.
One of the best examples of engagement I have seen with value retailers is the Jane Asher bakery range with Poundland. This range started off being focused on baking tools and accessories but now takes in ingredients and toppings. As I understand it the range has been a huge success.
One reason for the success is that it has been well presented in store with decent space, good signage and well developed product. It seems to be well planned rather than a short-term opportunistic sale.
The new signs for the range extension speak well to this point. Poundland has also recently launched a DIY range with Tommy Walsh – an indication that they have faith in licensing and range development within categories.
Look out for Laurance Llewellyn-Bowen’s interior decorations soon…
In a cluttered retail environment licensing can deliver results as properties encourage consumers to ‘stop and buy one’. However, it is important to think through the retail offering and which type of retailers will carry the product.
The Jane Asher range accomplished this well and another good example I saw recently was a range of Subbuteo Bottle Openers. This is a neat idea as the product taps into nostalgia and football well, but the licensee had also thought about product display – creating a striking counter top box to showcase the product. This helps retailers display the range and encourages impulse purchase. It is nice to see a good product presented in such a way – often good products are let down by poor display. Maybe a few years ago a strong licence was enough to sell on its own merits but I think these days it is crucial to think about display, signage and labelling as well.
How will your product be seen in store? The FSDU for The Snowman party range I spotted in a garden centre recently is another great example. Investment in a dedicated FSDU has encouraged new listings and encourages consumers to buy into a range. Garden Centres are increasingly licensing-friendly retailers.
Ian Downes runs Start Licensing, an independent brand licensing agency. His Twitter handle is @startlicensing – he would welcome your suggestions for what to look out for.
