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Tuesday, 17 February 2009

Poor Blue Chips

Is it really such a mad, mad world? I've been observing that it's only the shite, complacent, large companies that have been suffering in the current economic climate. I haven't seen a single company go to the wall that large numbers of people actually like in the present day, rather than some nostalgic, sugar-coated time from yesteryear.

One major British food retailer who will remain nameless on these pages because of their tendency to sue their opposers, no matter how small and powerless they are, has just won the booby prize for stupidity because they clearly do not understand the basics when it comes to sustaining customer and employee loyalty for their business.

This loathsome monopoly was reviewed several times here since the blog started, but I had to take the pieces down because their employees started logging on in large numbers, creating a kind of movement which would see yours truly going down the road of one writer who found himself with prison time and millions in fines as a result of speaking out against them. If you're going to be crazy then you'd better get paid for it, or they'll lock you up.

One point I made incessantly to the degree of near-tedium was that this white elephant retailer with monopoly over land and opening times was failing to follow basic generic strategic practices due to an inability to provide high-quality compared to its nearest competitor and best price compared to its other. In fact, after this point was made, along with my predictions about the impending demise in its future, short-term profits, it has come to pass. It has stopped trying to compete on price with the price-leader, because nobody believes what it says. Instead, it tries to compete on price with the quality leader. Stupid. People don't shop for quality and expect the best price, so they lost that argument before it began.

However, and this is totally my own recent experience of their operations, they have placed the final nail in the coffin. In a desperate scramble to cut costs in order to maintain short-term profits, they have decided to cut value directly where the customer sees it. Basic generic strategy states that if you cut costs in order to maintain profits, to cut direct value to the customer hurts the business. These guys have stopped checkout service after 11pm in their 24-hour stores. Nice one. The other thing is that they didn't bother telling their customers. So now, people with £200 of shopping in their trolley are being told to use the self-service tills. Even if they refuse, the staff just go home because they've reportedly had their hours cut so don't get paid after 11pm. Result? Upset staff, upset customers. Of course, I'm guessing the prats that thought up this brilliant plan are tucked up in bed at home, or watching Jonathan Ross whilst Blingford Bob's kicking off, abusing staff and walking away in fear and disgust from his full trolley of shopping, possibly never to return.

Last night I thanked the poor lady who stayed late to put our 200-quid's worth through. She said defensively "don't laugh...I'm not supposed even to be here." I wasn't laughing. I talked low and tried to watch my tone, even though I was furious with everyone other than her who was associated with this shallow money-trench. "This is this company's way," I said. "Managers make these stupid decisions, pass thwem onto the staff and the staff are left to deal with the irate customers."

"I understand why people are angry and they don't want to shop here now after 11pm," she replied.

"What these idiots fail to understand is that we only come here because it's open late," I said. "I spend one quarter of my salary here each month. This isn't making me angry. I'm already angry. We've been angry for years."

We won't be going back there, until the management come out of the fog of their stunted intellect.

My long term prediction is that this business, with its large committment to land assets, sheer size of operations with their associated cost structures and track record for treating its staff and its customers like dog-pooh may possibly become the next notorious, yet well-deserved casualty of this current shake down.

If they do, I'll be laughing my ass off. Unfortunately, the people who bring any scrap of decency to these hollow proceedings will be looking for a job elsewhere if they aren't long gone already.

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