DISCRIMINATION
Greg Jackson has used the Disability
Discrimination Act to prosecute Debenhams for
lack of access. Wheelchair user Mr Jackson said,
"There's a significant section of the
menswear department that I can't access. It's
three or four steps high and there is no lift, or
ramp." He served a writ at its London
headquarters, for flouting part of the Disability
Discrimination Act and his case is being backed
by Disability Rights Commission. |
MATALAN
JOB LOSSES
Clothes retailer Matalan cut 300 staff,
including 100 jobs at its headquarters in
Lancashire, at 190 stores. The company announced
the redundancies, saying it was looking to save
£15m a year because of slowing sales.
Matalan, which employs about 14,000 people, said
most of the cuts were done through voluntary
redundancies and relocation within the group.
Retailers such as French Connection, Marks &
Spencer and Boots have all warned about tough
trading. Higher interest rates in the past two
years, stagnant house prices and rising personal
debt have been blamed for the spending slowdown. |
FIGHTING
BACK
A National Consumer Council report
claimed that companies last only 12 years on
average because they don't look after shoppers.
The main topic of hate was automated call centres
followed by hard sell and quick profits are often
placed before customer needs resulting in
consumers fighting back by not buying products. |
CUSTOMER SERVICE
Safeway had the worst record in 2004 for
satisfied customers and came bottom in a table of
69 retailers from department stores to DIY shops.
The top position went to Ikea which finished just
ahead of previous winner John Lewis. Somerfield,
Iceland and Lidl also languished near the bottom.
Savers was the best for price, Homebase for
convenience and Waitrose topped the quality and
layout categories.
Shoefayre was first for ambience after a trendy
refit, and MVC's loyalty card earned it top spot
in the facilities category. Debenhams was highly
rated reflecting its financial performance but
cheap stores did not necessarily score well. |
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SHOPPING
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Dixons is to
rebrand all 190 electrical products stores as
Currys.digital and use the Dixons brand for its internet
retailing operations. Making the change will cost Dixons
about £7m, but it is expected to save the firm close to
£3m annually. Owner DSG International's chief executive
John Clare said, "With these changes we now intend
to become the most successful electrical retailer on the
web, alongside our leadership position in bricks and
mortar electrical retailing." (Source: BBC News, Apr/06)
Two months after it closed, the Grangecraft
Garden Centre, in Hospital Lane, Mickleover, has
re-opened under new management. Robert and Graeme Osborne
and their father Barrie, have taken on a five-year lease
and re-employed seven former staff and more will be
employed as the business grows. The new name is
Mickleover Garden Centre. The Osbornes are leasing the
site from Simon Brook, director of Pendleton Investments,
which owns the site. Mr Brook blamed two difficult
trading years for the closure, which led to the loss of
41 jobs. In addition, three firms renting premises have
continued trading from the site. They are Tropicana Pet
and Aquatics, Midland Pre-Cast Garages and Della
Porcelain.
Marks & Spencer cut prices on its
cheapest women's clothing range by up to 25%, in a move
designed to put pressure on rivals such as Next. An
M&S spokeswoman said other summer price reductions
include a £9 cotton t-shirt down to £6 and a pack of
men's socks down from £10 to £7.
Analyst at Brokers Seymour Pierce, Rhys Williams, said
the new prices were designed to help M&S
"compete better with Next, which has lowered its
'entry' prices several times over the past 18
months". He said M&S would be hoping customers
lured by lower prices would be attracted by more
expensive merchandise when they got into the stores.
"It's all about increasing footfall in the stores
with a view to raising the average transaction
value," he added.
Marks & Spencer was fined £750 and ordered to pay
£5,000 costs after being found guilty under the Consumer
Protection Act of using misleading price information. A
confusing price tag led customers to believe they were
getting nearly 50% rather than 25%. A shopper complained
about the pricing on women's pyjamas at the McArthur Glen
discount outlet in York. The ticket showed a price of
£19 reduced to £10 with another sticker showing £13
underneath. M&S said, "There was no intention to
mislead."
Marks and
Spencer was fined £10,000 and ordered to pay £6,390
costs after admitting that clothes from its designer
Italian range were actually made in Eastern Europe, Asia
and the Middle East. A customer took the retailer to
court after spotting that although the clothes purported
to be made in Italy they were in fact manufactured in
places such as Lithuania. Birmingham magistrates' court
heard that clothes beneath the "I Italian"
signs were three descriptions, all in smaller writing,
which read either "Made in Italy",
"Italian Fabric" and "Italian
Inspired". A spokesman for Marks and Spencer said
the 'I Italian' range had been rebranded as
"Collezione". (Source: Daily Telegraph)
Marks &
Spencer has employed Mary Gober, a leading American
motivational speaker, to address a series of mass
meetings aimed at getting the most out of the M&S
workforce. A three-day team building exercise, involving
5,000 staff at a time, has workers asking questions of
themselves and their colleagues. They are given
"goodie bags" containing nine envelopes to be
opened on Miss Gober's instructions. Every 40 minutes
staff began dancing in their rows to 1970s disco hits
such as the Bee Gees' song You Should Be Dancing and the
Jackson Five's ABC. The company said the meetings would
help staff provide "a better service for our
customers". Usdaw, the shopworkers' union which is
trying to recruit M&S workers, claims the whole
exercise will cost the company £10 million. (Source: The Telegraph)
Sports shop Allsports has gone into
administration and more than 1,000 jobs have been axed. Administrator BDO Stoy Hayward
said the chain had been hurt by a "significant"
decline in sales. BDO Stoy Hayward said 92 stores have been
closed and 1,173 staff made redundant. A further 147
staff were made redundant at the head office and central
warehouses in Bredbury, near Stockport, Greater
Manchester. The closed shops were "deemed
uneconomic" by the administrators. The John David
Group, has bought Allsports out of administration. The
parent company of rival JD Sports paid £18m and promised
to take on Allsports' debt.
DIY company Focus was reported to the Office
of Fair Trading and the Department of Trade and Industry,
after it scrapped contracts with its suppliers and forced
tougher payment terms on them. Focus wrote to hundreds of
suppliers ordering them to pay more towards distribution
costs and demanding an increase in the cash discount it
receives for monthly settlement invoices. At least a
third of suppliers have been dropped by Focus after
rejecting the new terms. Focus said it was motivated by
'considerable cost increases'. These included 'the
minimum wage rule, maintenance cost of premises with
rising increases in utility bills, insurance premiums,
rates etc; and distribution costs affected by rising fuel
prices and the working time directive'.
MFI was
blasted for duping customers into believing they had
scooped sales bargains. Consumer watchdog Which? found
kitchens were NEVER sold at full price at one major
store. Undercover researchers spent six months checking
sales offers, advertised as from 38 to 70%
off the original price. Four of the five
kitchens monitored were on sale throughout the entire
period at the store in Wembley, North London. Even the
supposed full price varied. Which? said, MFI should
change its promotional slogan from Our biggest ever
sale to Our longest ever sale. Their
pricing policy deceives its customers into thinking
theyre getting a better deal than they are. If you
are considering buying a kitchen from MFI, dont be
fooled by the glitzy brochures promising offers that are
just too good to last. They do last, for
quite some time. MFI said, We comply with all
current advertising and sales promotion
legislation.
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