Tag Archives: Kevin Flood

Chancellor’s statement shows a glimmer of hope

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George Osborne’s autumn statement was an opportunity for the government to return much needed confidence to the retail sector to boost growth. The Chancellor’s statement questions the conventional wisdom that countries can spend their way to economic prosperity, as reference to consumer spending is almost completely bypassed.

Last week’s concerning official figures published by the Office for National Statistics paint a worrying economic picture for the retail and distribution sector. The figures were followed by a warning from the British Retail Consortium that the ONS were in fact painting a far rosier picture than they were hearing from their members.

Kevin Flood, co-founder and CEO of Shopow, the UK’s largest social shopping site, commented, “For the British economy to start growing it is absolutely vital confidence returns. With conditions still fragile on Britain’s high street, providing greater support for SMEs and freezing the proposed fuel duty rise are welcome. The Chancellor’s proposed extension to rate relief for small firms and the implementation of a credit easing program to underwrite up to £40bn of small business loans will give smaller firms greater confidence. It will not however alleviate the strain on the purse strings of the consumer.

Kevin adds, “The Government needs to review its decision on VAT however to alleviate some of the economic gloom people are experiencing. A temporary cut in VAT would help give consumers confidence to get out and spend.”

Black Friday needs to have an effect in the UK

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The US Retail sector enthusiastically braces itself for a horde of bargain hunters

Today, Black Friday, so-called as it is the day when a vast swathe of the retail sector head out of the red and into the black, may make an economic turning point in the run up to Christmas. With half of the entire US population, some 152 million people, expected to hit the shops over the course of this weekend, up 10% on last year- the spike in trade could mean good news across the economy.

Black Friday usually sees shopping chains throw open their doors in the early hours. But this year that rush has crept into Thanksgiving Day itself. The effect isn’t limited to the US however, as Britain’s biggest and most well-known retailers have started “mega sales” early this year in an attempt to boost Christmas shopping amongst cash strapped shoppers. Amazon, in the run up to Black Friday is offering bargains for its ‘Black Friday Deals Week’ and Comet are offering a 5day Frenzy super sale. In effect this has turned black Friday into one of the biggest online shopping days of the year.

In the run up to Christmas consumers are expected to spend a whopping £7.75 billion on online shopping according to e-tailing trade association IMRG. An estimated £13 billion will be spent across all sectors online, however figures on the high street are expected to fall by 2.1 per cent in spite of so many sales starting early. It is clear that this year’s success stories will be told with a distinctly online lilt.

Kevin Flood, CEO of the leading social shopping website Shopow said, “Retailers that were desperately in need of a reversal of their fortunes have found that they now have an encouraging platform on which to build in the run up to Christmas. High street stores have had to pull out all the stops to make their shops attractive by reducing prices early and creating imaginative promotions to increase footfall and more activity at the tills. It is still far from plain sailing and there is still a lot of pressure on retailers and as long as business and consumer confidence remains low, the battle will continue to persuade shoppers to return in their droves.

“Online activity has emerged as a vital area that will only continue to grow in importance over Christmas. We are expecting a significant amount of Christmas activity online and those who have introduced innovative shopping tools that make shopping easier and more cost effective will take capitalise.”

For the past six years, a combination of increasingly early opening times and an array of discounts have helped make the day after Thanksgiving the biggest shopping day – and cement the term “black Friday.” It will be nonetheless difficult for chains that have struggled with sales declines lately, including the likes of Topshop, to see a benefit from thoroughly deep discounting. Many have opted instead to move into the social shopping environment in order to drive sales through peer to peer reviewing and sustainable discounting.

Social shopping has emerged as an exciting trend in online retailing as many of these high street stores look to engage consumers. It involves the use of social networking to share recommendations, share discounts, post reviews and ask for advice on products before purchase.

Mike Harty COO of Shopow (www.shopow.co.uk) said “Regular web shoppers are now empowered to talk about their purchases in an honest way. Social shopping enables shoppers to use their trusted networks to make informed decisions but also makes online shopping more interactive, enjoyable and indeed sustainable.”

Retail Sales in Clothing and Footwear increases.

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PEG- Retail Sales figures from the Office of National Statistics have been released.

Footfall has declined 1.0 per cent but the overall sales of textile, clothing and footwear increased.

Official figures today reveal promising news for retailers. Data from the Office of National Statistics show sales figures to be considerably higher than the same period last year. With the weather set to take a turn for the worse and more people feeling a pinch in their pockets, online shopping sales have surged as people look for good deals.

The value of retail sales in October 2011 showed an increase of 5.4 per cent compared with October 2010. The total sales volumes in October 2011 increased by 0.9 per cent, in comparison to the same time last year. Further figures revealed that small stores sales figures increased by 5.3 per cent while larger stores, sales figures decreased by 0.3 per cent. Once again, online trading increased its share of total retail, the average weekly spend on online retailing increased to £561.5 million up from £518.7 million in September 2011. Textile, clothing and footwear sales volumes fell by 1.0 per cent however sales value increased by 2.6 per cent over the same period. These figures bode well for retailers, giving them a much needed life line in the in the run up to Christmas.

Kevin Flood, CEO of social shopping leader Shopow (www.shopow.co.uk) said, “Retailers that were desperately in need of a reversal of their fortunes have found that they now have an encouraging platform on which to build in the run up to Christmas. High street stores have had to pull out all the stops to make their shops attractive by reducing prices early and creating imaginative promotions to increase footfall and more activity at the tills. It is still far from plain sailing and there is still a lot of pressure on retailers. As long as business and consumer confidence remains low, the battle will continue to persuade shoppers to return in their droves.

“Online activity has emerged as a vital area that will only continue to grow in importance over Christmas. We are expecting a significant amount of Christmas activity online and those who have introduced innovative shopping tools that make shopping easier and more cost effective will capitalise.”

Social shopping has emerged as an exciting trend in online retailing as many high street stores look to engage consumers. It involves the use of social networking to share recommendations, share discounts, post reviews and ask for advice on products before purchase.

Mike Harty COO of Shopow said “Regular web shoppers are now empowered to talk about their purchases in an honest way. Social shopping with Shopow enables shoppers to use their trusted networks to make informed decisions but also makes online shopping more interactive and enjoyable.”

The government closes the loophole which allows VAT on small goods

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The government have announced plans which will stop retailers avoiding paying VAT by procuring goods from the Channel Island. This oversight has been used more frequently by retailers selling CD’s and DVD’s online. This loophole was costing the government £140 million a year. Low Value Consignment Relief (LVCR) will not apply to goods sent from the Channel Island to the UK from the 1st April. LVCR set up for tax exemption purposes for goods coming from outside the European Union so that they could avoid paying small amounts of tax, as collecting it would cost the more.

Kevin Flood, the CEO of Shopow said, “There has been an unprecedented movement of demand from consumers for cheap goods such as CD’s and DVDs online, fuelled by the downturn in the economy and lagging disposable income. The closing of the VAT loophole could force British consumers to look further afield for cheap deals.”

Kevin adds, “The closing of the VAT loop hole is good news for traditional British high street retailers such as HMV and Waterstones, who have come under fierce pressure from Channel Island registered online retailers, whose sales models have been taking advantage of the loophole in the VAT rules to offer cut price goods to British consumers. The situation is not at all good however for the run of the mill British consumer, who will quite literally pay the price.”

Entrepreneurs encourage young people to become economically active

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As the latest unemployment figures spike to a 17 year high, two young entrepreneurs prove that a disastrous job market is no obstacle

Unemployment in the UK has hit a 17 year high this month, putting pressure on the government to come up with a better economic strategy. The number of young people out of work is close to the million mark, with 991,000 16-24-year-olds out of work. The new figures, which take into account the last three months, are the worst since records began in the early 1990s.

Kevin Flood and Mike Harty, despite the doom and gloom of the employment market, have set up a unique online company straight out of university as an alternative to getting lost in the crowded jobs scrum. What’s more they are setting out to topple the online giants in the price comparison site arena.

Shopow.co.uk, their Social Shopping start-up, is a new type of shopping search engine that aggregates thousands of retailers and millions of products across all areas of consumer goods. Not only does this allow users to compare goods by criteria such as price, retailer, service and delivery, it also integrates various social functions so shoppers can find all the information they need to make the right decisions when buying online.

Kevin Flood, CEO of Shopow, said, “Our novel idea has meant that we were able to compete against some of the long established names from the outset. All budding entrepreneurs wishing to succeed shouldn’t underestimate the importance of a strong concept. We coupled this with our hard work ethic, detailed research and willingness to take the odd calculated risk in order to get our business off the ground and gathering momentum quickly.”

This momentum has resulted in the pair winning a Young Guns Business Award. Since the launch of Shopow in May 2010, the business anticipates revenues of over £3m in the first year of trading. The pair are confident they can achieve a ‘critical mass’ in the UK this year, and are looking to expand into the USA and mainland Europe imminently.

The message from Kevin and Mike is that business savvy individuals with a great idea can be masters of their own destiny and bypass the busy job market. Recent measures to tackle unemployment such as the Government Work Programme have generated optimism for some bright sparks, and opened other avenues so that they might create companies of their own.

Kevin Flood, Co-founder and CEO of Shopow, said, “We set up Shopow because of our love of business. There were so few opportunities in the job market that we opted to take a risk and move in a new direction, one which we would strongly encourage other young people to pursue.”