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Spending Power

Sunday, 23 November 2008

Spending Power: 7,500 pubs at risk

By Martin Hickman

Almost every sector of the economy is in jeopardy right now. Retailers are on the brink of meltdown. Housebuilders are laying off labourers, bricklayers, and electricians. Estate agents twiddle their thumbs waiting for buyers that never walk through the door. Thousands of jobs are going in the media and banking; motor manufacturers are shutting plants for months.

So how seriously should we take CAMRA's warning that 7,500 pubs will shut by 2012?

Continue reading "Spending Power: 7,500 pubs at risk" »

Wednesday, 12 November 2008

Spending power: M&S hints it will reject brands

By Martin Hickman

At Marks & Spencer, they call it the Tabasco question: should the retailer end its own-brand diktat and stock iconic products that people really like, like Marmite and Tabasco?

In May, M&S confirmed that it would trial the sale of 350 brands to check whether shoppers really wanted them. The answer, M&S chairman Sir Stuart Rose revealed over lunch at his Paddington HQ today, is "no".

Perhaps he was just throwing out a duff smoke signal to his rivals, but the debonair retailer said: "We have done a trial for some 15 weeks in 20 stores in the North East of 300 'must-have' branded lines... I don't want to call the result in the sense that we have decided what to do yet, since we won't have to do that until after Christmas - but it's true to say that quite a lot of our customers say: 'I don't know why you've done that? We don't need it'."

It looks like M&S will be going on the offensive over price, though.

Continue reading "Spending power: M&S hints it will reject brands" »

Wednesday, 05 November 2008

Spending power: Ferran Adria and a Tunnock's tea cake

By Martin Hickman

What do you ask the world's best chef? Ferran Adria is happy to explain his philosophy of food, why his restaurant is always sold out, why he won't open all year round (Answer: He's too busy experimenting at his workshop in Barcelona).

But what does the El Bulli chef think of ordinary food? How many flavours are still to be discovered? Does he like Tunnock's tea cakes? And what does he think of Jamie Oliver? Here are some of his responses during my recent interview with him, in which he expressed his surprising desire to visit McDonald's.

Continue reading "Spending power: Ferran Adria and a Tunnock's tea cake" »

Thursday, 30 October 2008

Spending Power: Costa Coffee colonises NHS

By Martin Hickman

Coffee shops Starbucks and Costa are continuing their rapid expansion by moving into NHS hospitals.

A survey by The Independent shows that 40 of 170 English NHS hospital trusts now has a branded fast food outlet. A further five are about to sign up chains. Most are cafes like Costa, Ritazza and Uppercrust. A few are takeaway joints such as Burger King.

Does it matter that these brands are moving into the NHS? For burger chains, the answer is obvious, though apparently not to hospital managers in Cambridge, Southampton and Rotherham. But some coffee shop food is unhealthy, too.

Continue reading "Spending Power: Costa Coffee colonises NHS" »

Thursday, 23 October 2008

Spending Power: Shop less, live more

By Martin Hickman

One advantage of the credit crunch is that it may spell an end to the debt-fuelled decade-long orgy of conspicuous consumption that has so transfixed many shoppers. Countless studies show that once basic needs are met, owning more things does not make people more happy.

Yesterday, the Government's Foresight project came up with five tips on how people can improve their mental well-being without reaching for a credit or debit card. The tips, suggested by the Nef think-tank, are reproduced here in full, without comment:

Continue reading "Spending Power: Shop less, live more" »

Tuesday, 21 October 2008

Spending power: From us to the energy companies... £75

By Martin Hickman

I'm a fan of Channel 4's Dispatches, but last night's show on fuel bills offered little new. We knew there was insufficient competition between the power companies; we knew pre-payment meters were a rip-off; we knew energy efficiency measures could save householders money.

No, the most gripping research was old. In all the debate about energy prices, it's the one I keep returning to - the Local Government Association's brilliant finding that, despite the companies' words about soaring wholesale costs and need for investment in new power stations, they raised shareholder payments by £257m last year, £75 for each and every home. I would chase a mugger down the street if I had that much in my wallet. (Perhaps.)

Continue reading "Spending power: From us to the energy companies... £75" »

Tuesday, 14 October 2008

Spending power: Is McDonald's kind to animals?

82055737 By Martin Hickman

One of the little-known facts about McDonald's in the UK is that its record on animal welfare is quite good.

All the beef in the burgers comes from cows in the British Isles, where welfare standards are higher than on the Continent. The eggs in the Egg McMuffin are free-range (though Golden Arches chicken isn't). The fish in a Filet-o-Fish is made from Marine Stewardship-certified Alaskan Pollock.

McDonalds progress on animal welfare recognised last week when it won the restaurant chain category of the RSPCA's Good Business Awards 2008, ahead of more "ethical" competition from fast food chain Leon.

Continue reading "Spending power: Is McDonald's kind to animals?" »

Monday, 06 October 2008

Spending power: Pasta Hut, huh?

Pizza Hut is being re-named Pasta Hut to give the business a healthy, modern makeover. Or is it?

In a slick piece of PR, Pizza Hut's boss Alasdair Murdoch says the chain is being designed to attract new customers in an £35m revamp. In future, customers will be able to order tomato and mozzarella mezzaluna and crayfish arrabiata as well as unhealthy pizzas.

Now, making a fast-food chain slimming its menu is good news. But not everything is what it seems. It turns out only 30 of Pizza Hut's UK outlets are being renamed Pasta Hut - and then only "temporarily." Canny Alasdair, eh?

PS. Would branding consultants have ever recommended keeping the name 'hut'?

Spending Power: Official - Energy giants are nice

By Martin Hickman

Ofgem's long-awaited report into fuel prices has been welcomed by the £25bn-a-year energy industry, which has been accused of ripping off households. The Energy Retail Association called it a "timely and thorough report".

Broadly, Ofgem could find no cartel between the Big Six companies, although they do closely monitor each other's rises. The fact that three million people - 18 per cent of households - swap supplier yearly showed that the market is working well, Ofgem said.

But, it added, there are a few problems with the energy industry. It is not working well for the following groups: the elderly, the poor and people living in the countryside. Suppliers have been told to stop charging such vast different amounts according to the payment method (eg cheque or Pre-Payment Meter), something which it has been doing for years without Ofgem seeming to mind.

Continue reading "Spending Power: Official - Energy giants are nice" »

Friday, 03 October 2008

Spending power: Time to start bartering?

By Martin Hickman

As the global economy wobbles, and people rely less on formal financial structures (eg banks), is bartering about to return in a big way?

Freecycle, the website where people offer and accept goods free, is experiencing a surge of interest. No sooner has someone offered a bike or a pram, than it is bagged by a willing recipient.

Now Asda says it is trialling a new system for bartering. In four stores it is setting up barter boards where shoppers can offer services such as hair cutting or guitar tuition, in return for some other skill or goods. So person A may say: "Offered: gardening in return for Spanish lessons." Person B says: "Good idea and arranges the swap."

The boards are in Einiskillen (Northern Ireland), Tonypandy (Wales), Colne (England) and Elgin (Scotland).