There has been a surge wholesalers who have previously not pitched to newsagents reaching out to the channel as a result of the second wave of Covid-19 infection in Victoria. By surge, I am referring to 4 of which I am aware, wholesalers who previously did not deal with the newsagency channel who are now happy to embrace.
This is good news I guess as it can offer product range expansion opportunities. It is a challenge, too, as we need to con sider every product opportunity carefully and in the context of how we see our businesses and the types of shoppers we seek to attract.
With traditional gift shops closed in Melbourne and the vulnerabilities of that niche retail channel laid bare since March this year, it is no wonder that wholesalers are looking for other outlets for their products.
Some wholesalers are looking to offload overstock while others are looking for retail partners of the long term. While media reports have been about shops closing, wholesalers closing is a whole other thing. It is prudent to do due diligence on a new wholesaler for your business before taking them on. Knowing their longer term prospects is important.
It seems that every week is presenting new opportunities and challenges. Overall, I think this is a good thing. It’s allowing plenty of us to evolve our businesses, in-store and online, faster than may have been the case in a more traditional 2020.
Back in April, we saw the good the bad and the ugly in the behaviour of suppliers. Most were really understanding, some we worked through and emerged stronger whilst a small minority were diabolical. Including one who instructed debt collectors on all accounts in the first week of April.
As a result we no longer deal with 2 suppliers.
More suppliers embracing the channel is a good thing. But buyer beware as some will not turn out to be long lost friends.