export_ofoct.com

[00:00.40] Things turned upside down for many businesses earlier this year.

[00:04.39] We're looking at how two companies made changes to survive.

[00:08.90] So, OK, Richard, what happened?

[00:11.29] In March 2020, companies in the UK, they were told that they weren't allowed to offer over-the-counter services.

[00:19.26] So obviously that would affect many high-street shops.

[00:22.98] Yes, indeed, all high-street shops and including those who sell fish and chips.

[00:29.09] So the Chesterfield Group in the UK owns 40 fish and chip restaurants, serving about 50,000 people every week.

[00:39.19] However, of course, the coronavirus lockdown forced the restaurants to close for all walk-in customers.

[00:46.89] So therefore no customers at all then?

[00:49.54] They lost all their customers in one fail swoop. Right.

[00:52.73] So what the CEO, James Lipscomb, did was he realised the company was running out of cash fast, so he had to do something really quickly.

[01:04.42] And within two weeks, he created a new way for the company to continue in business.

[01:10.79] OK, so what did he do?

[01:12.12] He started a click and collect system.

[01:16.37] So they designed an app and they started taking food orders online, cashless payments only.

[01:24.08] Right. So customers go on the app and they turn up and they just tap their card at the store so there's no interaction with staff whatsoever.

[01:34.17] So click is on the app and collect is at the shop.

[01:39.75] Exactly. Right.

[01:40.81] And actually they also introduced home delivery as well on a similar sort of basis.

[01:46.12] OK. So two new systems.

[01:47.72] Did that work?

[01:49.04] Yes. He kept 70% of the staff and they worked throughout the lockdown and this very fast decision prevented the business from closing down.

[02:01.00] Well, another company... another example of a company adapting to the new situation, Richard, is Boohoo.

[02:08.70] You won't have heard of them.

[02:10.56] I certainly haven't.

[02:11.62] Who are they? Well, they're a fashion brand but they already sell online.

[02:16.14] OK, so how were they affected then?

[02:18.00] Well, the problem with them was that they sold a lot of clothes to women who wanted to buy fancy dresses and shoes for the weekend. It's a quick turnover, right?

[02:30.48] So come Friday or Saturday, big night out, big sales.

[02:35.53] But of course no one was going out so no one was buying these dresses.

[02:40.04] And no one was ordering anything online at all.

[02:42.97] OK, so what did they do then?

[02:44.29] Well, again, two things.

[02:46.42] First of all, the company had all this stock that no one was buying so they advertised and everything must go flash sale.

[02:57.04] 70% of all stock and 50% of 500 dresses.

[03:03.95] Wow. And then they replaced the range.

[03:06.87] They introduced a whole new range of clothes.

[03:13.25] Lounge wear. Ah, stairs home wear then.

[03:17.50] Clothes for the sofa. Exactly.

[03:18.56] Fancy pyjamas to wear all day and attractive leggings and tops.

[03:23.34] Still attractive clothing but for watching TV instead.

[03:27.59] So their strategy was to clear out the old stock... Yep. ...and bring in a totally new line at speed.

[03:34.50] Yep. So did that work? Absolutely.

[03:37.42] A few weeks later the company announced that it had not only survived the first few weeks of the crisis but increased its April sales against the previous year.

[03:48.57] So two companies that adapted.

[03:51.23] One with how they sold their product and the other with new products.

[03:55.74] But they both relied on being online.

[03:59.20] Yes, so that simply means e-commerce is definitely the way to go.