With margins melting as we speak, a substantial investment is constantly required to keep customers happy. It is not easy at the lower end of the market, where the barriers to entry are constantly coming down with the cheap imports from the Far East. It is perhaps not surprising that all the big brands are rethinking their product architecture, and though many still wish to secure volume at the lower end, they acknowledge the need to have high-specification products which don't lose value so fast. However, these products won't sell themselves just sitting on the shelf, so these producers need retailers like independents with sales skills and product knowledge. Therefore they are preparing strategies and trading terms which will reflect their desire to work closely with the independent sector. Hopefully, this will be reflected in the margins offered to you.

Coincidentally, John Lewis, which is in the same league as you in terms of customer service (according to the recent Which report) is doing phenomenally well. This is not only because of its own branded goods, but also due to the 'John Lewis factor' (which the company managed to translate into its online business) – the bond of trust with its loyal customers, which is not dissimilar to what you've built with yours.

Anna Ryland, Editor

aryland@datateam.co.uk