A Master Class in Brand Planning: The Timeless Works of Stephen King

17

The Retail Revolution gets Underway

By Andrew Seth, Chairman, Plum Baby

 

 

 

 

 

In 1978 a scruffy, down-at-heel retailer called Tesco mounted a survival operation in its stores called “Checkout”. It was to change a lot of things in their favour. Engagingly Stephen notes that retailer advertising had risen from 1.6% of “all expenditure” to 3.3% (!) – scarcely, he says, revolutionary progress but the beginnings of a trend that has by no means run out of steam three decades later. Stephen’s far-sightedness did not end there.

He goes on to observe the growth of “service” advertisers in the UK economy. Remember that this was before the huge changes begun in the 1980s as manufacturing companies went to the wall and were gradually replaced by the new service businesses that dominate our British economic landscape today.

Stephen quotes the emergence of manufacturing’s declining profit spiral, noting how while these companies were finding it much more difficult to make returns, the retailers were finding it a lot easier. He could not have foreseen how far this particular change would take us and how massive the shift in balance of power has been since then. Nor is it by any means exhausted yet.

In passing, Stephen notes other emergent but seminal changes in society as a whole. Despite perceived endemic economic weakness in the UK – recall that the 1970s was the decade that began with the 3-day week and finished with the IMF heavies taking Chancellor Healey firmly to task – Stephen describes ...