Friday, December 24, 2010
A few months ago we discussed the possibility of opening a Shoes of Prey store but we've recently turned off the idea.
We were particularly interested in the Oxford St. Paddington area of Sydney so we spent quite a bit of time speaking with retailers in the area. It was quite depressing. Very few retailers seemed particularly enthused by how their businesses were going and many were very negative. It seemed that most single store retailers were barely breaking even, if that.
Our concept for a store is a little different in that we have a well trafficked e-commerce store that would drive people to our physical store, so in one sense we should be able to do better than a lot of retailers, but none of us have a background in the very specialised and competitive area that is physical fashion retail so that negative may outweigh the positives. I'm sure if we threw ourselves into it we could learn and possibly do reasonably well, but we need to prioritise our time and given how other offline fashion retailers are faring at the moment I think our time is best invested elsewhere.
We're on the look out for new office space to move into in the new year, so we think a showroom as part of our office is the way to go. That means we won't need to pay retail rents for the space and we won't need to have a full time staff member in the show room as we can man it in between working in our office. It will still allow us to get a lot of the benefits in that Sydney based customers of our website can visit the showroom, but it will keep the costs in money and our time down. We'll also be able to experiment with offline retailing using the showroom and if we find that it looks like it would work as a concept, we can go down the offline retailing path at that point.
Posted by Michael Fox at 12:34 PM