Improving retail operations
Rick and Jill Stein's businesses in Padstow started with one restaurant in the 1970s. Strong turnover and the increasing popularity of locally sourced fresh foods soon encouraged them to diversify their operations firstly in to hotels and then retail, incorporating a delicatessen, patisserie, gift shop and online mail order facility. As the retail business continued to grow it became clear that the organisation needed external expertise to capitalise on their unique product offer while at the same time optimising the use of more professional retail management systems and merchandising techniques.
Following conversations with Harvey Ells and Chris Dutton at the university's School of Sport and Service Management in Eastbourne, a Knowledge Transfer Partnership was approved for the company. "The plan was to devote specialist resources to the things you just can’t get round to within the constraints of your normal working day" said Stein's Retail Manager Roger Clough.
Rick Stein and Filip Jicinsky (KTP Associate) at the introduction of new retail products in Selfridges
The project started in 2007 with the selection and recruitment of a graduate associate - four were shortlisted, and then invited for an assessment which included a series of tasks, scenarios and presentations held at the Seafood Cookery School in Padstow. "Our associate shone through" said Roger "and he's become more and more valuable over time."
The project aimed to develop a clearer retail strategy, and then help to operationalise that strategy to make the business more efficient and scalable. Areas for attention included improving the product ranges, enhancing customer service and making cost reductions - particularly on mail order logistics.
The associate spent several months examining the mail order side of the business – workflow patterns, packaging and systems including contributions to a website redesign and revised content management system. To date the project has reduced mail order costs significantly and turned the retail emphasis onto sales growth and improved profitability. All of the high quality food products are produced in-house and the partnership has helped develop new packaging and labelling to enhance the appeal of the own label offer.
"Our associate has done a lot of work on getting new product packaging designed and produced, and optimising the retail store format which will be particularly important if we expand into other locations" says Roger "and he's also written a retail training manual. The delicatessen has been refitted – we previously had huge shelving units which were selling air! We now have far more products on display and have adopted some basic retail strategies like offering large pasties as well as standard size ones to give the customer greater choice."
"We've done things we wouldn't otherwise have been able to achieve, by having one really good extra person on board."
The financial results speak for themselves; retail sales during the two-year partnership have risen by 26.3 per cent and profitability increased by 106 per cent. The company has also formed strategic partnerships with Selfridges and Sharp’s Brewery in developing new, high-quality food and drink products.
