Local retailers must realise that the internet is a game-changer

The internet will change the way that you operate your local shop and there is little to be gained from fighting this.

A requirement for UK retailers to make their sales tax returns on line has resulted in complaints from some that they want to stay in a paper-based world. This is a mistake for any business-owner, surely. The internet and information technology is shaping the competitive world in thousands of ways.

For example, Waitrose is using IT so that it can sell its products through outlets owned by chemist chain Boots and petrol retailer Shell – the latter through self-service kiosks. Waitrose has a £40 million IT budget and it is one of the smallest UK multiples.

Derbyshire independent retailer Stuart Reddish told members of the Newsagents’ Federation at its national council meeting in Newcastle last week that as a business owner you have a responsibility to pay tax in the way that society demands. Separately, he said it was crazy to be in business and not using the internet.

Discussing my post on Tesco.com, he said that I should check out the prices on eBay for treat items, such as Kinder eggs. He paused, looked at me, smiled and almost immediately added that he was thinking of selling some on ebay himself.

The internet is a game changer and local retailers need to be taking part, not hoping that it will go away. It won’t.

About author
As managing director of Newtrade Publishing Nick has over 20 years’ experience of covering retail markets, Nick helps shopkeepers of all sizes to think about what questions are important for themselves and their businesses, and to find answers that work in their shops.
2 total comments on this postSubmit yours
  1. Surely you are not suggesting that I am some sort of luddite, http://cherilynstores.blogspot.com/2010/02/vat-on-line.html.

    Computers have been used in my business for more than 25 years. Th information and control that they allow me is one of the key reasons why we have succeeded in our village community while the other shop keepers have failed. My son has a sound and growing internet based retail business and we have many Post Office customers who post their E-Bay packages through us. So we know that the internet is there to be used.

    But, it is the over baring, big brother government that I detest and their no choice demand that you will do as you are told or be fined that get up my nose.

    Gahhhhh.

    Steve

  2. I believe a Luddite would not have included a link to his blog post on the subject of VAT!

    Since my post I was at Clapham station where the cafe has three metres of WHSmith magazine racks – which I guess is another example of IT allowing two outlets to share a small, expensive space.

    As you have illustrated, IT is important for the future of local shops.

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