In this exciting podcast, Simon Hedaux from ReThink Productivity shares his insights and strategies for improving productivity and efficiency in the retail and hospitality industries. With the help of clients, partners, and the ReThink team, Simon covers everything from measuring and tracking productivity to developing and implementing effective strategies.
Whether you're a business owner, manager, or employee, this podcast is a must-listen for anyone who wants to learn how to get more done and improve their bottom line.
Here's what you can expect to learn:
How to measure and track productivity
Proven strategies for improving efficiency and reducing waste
How to create a culture of productivity and innovation
Tips for motivating and engaging your team
Real-world examples of how other businesses have used ReThink Productivity to achieve success
Don't miss out on this opportunity to learn from the experts and get ahead of the curve with your own business.
Welcome to the Productivity Podcast. Diane Wurl, CEO at Rendell Intelligence and Insights, joins me again for one of our monthly chats. Hi, Di.
Speaker 2:
Hi Simon.
Speaker 1:
How are you doing?
Speaker 2:
I'm good. How are you?
Speaker 1:
Yeah, good thanks, and we're motoring along through the year now, so we're into September to October 2024 insights and results. So how are we faring?
Speaker 2:
Well, I would like to say that it's sort of on the up, but I think we're sort of got a bit of a plateau. Really. We had a lot of um concern amongst consumers pre-budget, post-budget and I think in october that's leveled out a little bit. Um. So sales, um, and that sales in towns and cities across all sectors dropped 1.8% year on year. But that's better than the September result which was minus 6.5% drop. So things did start to stabilize and footfall was 1.1% down in October. So that's footfall into stores across the three channels high streets, retail parks and and shopping centres. But it was much better in September. It was more positive in September. It's 3.3% up year on year. So one's going up, one's going down. But you know we're at a point where it's not fabulous in October but it's not disastrous either.
Speaker 1:
And lots kind of happening in that period wasn't there. So there was the build-up to the budget, which potentially makes people nervous, the forthcoming, at that point american election as well, which might not necessarily direct impact but again makes people think about what it looks like and how we interact with them yeah, I mean I think there was a lot of nervousness around the budget, pre-budget and post-budget and I think in October that settled down a little bit.
Speaker 2:
Interestingly, gfk, who produced the consumer confidence numbers. They work on a mid-month cycle, so their results in November came out recently and of course that covers October through to November, so it's not a first to 31st cycle, october through to November, so it's not a 1st to 31st cycle. Consumer confidence, as per their November numbers, actually improved a little from minus 21 in October to minus 18 in November. So there was a little bit of improvement. But we're not back to where we were in August around consumer confidence, which was minus 13. I mean, it's still not good, it's minus, but it has stabilised a little bit. But we're sort of, as I said, in this plateau place where people don't feel incredibly confident but they don't feel like they're falling off a cliff either.
Speaker 1:
And do we expect that to kind of continue now that we know about the? I mean it primarily affects employers, not employees in its purest sense. But the national insurance changes Can people see that that's going to put pressure on their employers to maybe start to think differently?
Speaker 2:
Well, I think there will be some. I think there'll be. It's a game of two hearts, really, isn't it? There's going to be some people who don't really think about it at all, but, and there are some people who will recognise that if their employers have a higher overhead, then that's likely to impact on their employment security, likely to impact on their employment security, and I think we see it quite clearly actually in the savings ratio, which is quite a good indicator, because it's an underlying indicator of how much we're stashing away for a rainy day, and the latest numbers are for quarter two actually this year, but it's the highest it's been virtually since the pandemic, at 10%. So people, yeah, and it was 11% in quarter one, but it's the highest it's been virtually since the pandemic, at 10%, right, yeah, and it was 11% in quarter one.
Speaker 2:
So people clearly are feeling they need to replenish their savings, probably because they spent quite a lot when inflation was high and interest rates had gone up. So, whilst they're in employment, they're feeling cautious, and I've actually put a forecast out for christmas trading period that's actually available on my website plug um, but um, really, I'm saying this is going to be a cautious christmas. You know, I think people are not sure what is going to happen and they're trying to replace their savings they lost. Obviously, they want to give themselves a good christmas, so they'll still buy food and they'll do the christmas lunch and all of that stuff. But I think people aren't going to be spending huge amounts on gifts and splashing out and having this incredibly luxurious time.
Speaker 1:
They're going to be quite cautious around what they're spending which doesn't, which doesn't help, then I suppose, fuel some of the stuff that potentially we could see post Black Friday and Christmas, where these changes that are going to hit employers really start to kick in, probably going to affect jobs, probably going to affect number of hours, overtime or all that kind of stuff. So it feels like it, certainly in hospitality and retail industries it's going to be a very significant time period for some organisations.
Speaker 2:
Absolutely.
Speaker 2:
And of course, you've got this hiatus in the middle where organisations have an increased overhead coming down the line and, yes, they could try and veer away from that by investing in IT and better tech to support the business, but that's not an immediate thing and, of course, capital investments required for that and where they get it from.
Speaker 2:
So people, I think, will probably be okay over Christmas, not aware of what might be coming down the line in the new year, and just be very considered around what they buy in terms of gifting. Black Friday this year, fortunately and at the time of this we're recording this it's Black Friday week, so we're leading up to it now is on sort of the last Friday of the month, whereas last year, in 2023, it was the week before. So for many people it's going to be payday, which is good, so that will enable them to have budget to spend on on that friday and over the weekend, which I think a lot of people will make the most of that to try and get some good bargains and try and capture those gifts that they can at a lower price. But then we're likely to see this lull coming through um in the next couple of weeks after black friday before pete ramps up just before christmas yeah, so.
Speaker 1:
So I think we've said it before, haven't we? There's probably all to play for. Deals are going to be, I think, probably quite good actually, as people look to stimulate sales growth. But it's going to be really interesting, isn't it? As we come out of Christmas. January is normally a tricky month anyway, whether people paying off bills etc from that period and then start to head into the spring with how this really impacts everybody. It's an employer's tax or rise, but ultimately it trickles down to the employees at some point.
Speaker 2:
Absolutely and quite quickly. I would imagine you know, if an employer and a small employer has suddenly a much bigger wage bill coming down the line, it's definitely going to restrict recruitment and possibly the size of the existing workforce. So once the christmas period has finished and I think that's you know, that's the big thing for most companies, isn't it's get over the christmas, particularly in retail.
Speaker 1:
It's about let's make sure that we can sort christmas, and once we've sorted christmas, then we'll deal with it yeah, and that, and that, as well as hospitality, tends to influence the, the start of the new financial year, and and that run through whether it's january financial year or april or some later in the year, that that whole period shapes the the rest of the year, and in some organizations is the difference between profit or or loss. So, um, yeah, interesting times. It'd be interesting to see where we head when we do um, where are we? October to november, and then clearly we've got the big one that we'll do in January, which reflects on Christmas. So, yeah, again, still feels like that's all to play for if we're casting a positive note on it and that should drive some as consumers.
Speaker 1:
Good deals and bargains, hopefully, as people look to just stimulate sales absolutely absolutely we'll pause there, then die and fingers crossed we get, uh, some positive news in the next catch-up yep, let's, let's hope, let's hope for that time great catch up soon thanks bye.
