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Why oakley sunglasses cheap did Thomas Dux really fail

There is a whole lot of debate around the progressive closure ofThomas Duxstores by owner Woolworths, and also the assumption that it'll be closed down in case a trade sale will not evolve.

Could there be a plan to save it, on the other hand cannot find it, and having bought some rubbish grapes with an inflated price within the Lane Cove store throughout the week, I do not know what it could be.

Strategic failureseems to have found its distance to Woolies DNA within the last 15 years or so. They became so financially dominant in supermarkets they forgot that they can still haveconsumersto keep loyal, suppliers to maintain in business, and competitors very keen to eat their lunch. They've done OK in petrol, well in liquor, absolutely bombed in hardware, poorly in general merchandise, and missed on the internet coupons, electrical and furnishings completely, and so are fiddling around with odd things like pet medical health insurance. Not a lot of logic in this mix.

I've watched Dux closely since launch, had a number of clients products listed, and visited all of the Sydney stores several times since the first Lane Cove store opened. Until a while ago, I must say i thought they would defy the organization odds, and earn it work.

The apparent failure is often a sad day for that specialty end with the Australian food manufacturing industry, what is left of computer, one less method to reach consumers.

So, with all the clarity of (almost) hindsight, where did each goes wrong?

Rrndividuals are not stupid, there exists a limit on the price they're going to pay for something which has a fancy name, fuzzy claim and benefit, and not much else. Pushing the costs beyond to limit in order to improve the GM% is pretty ray ban sunglasses sale uk silly, because you do not bank percentages, just dollars. It's a fine line, but by observation, they were it wrong just as much as they got it right, is not enough.

Discounters are certainly not the competition

Giving into the accepted wisdom that discounters are knockoff oakley sunglasses winning and that Dux is competing for the same consumer dollar is nonsense. People are looking for an experience, for specialist products out of stock in mass retailers. They started well with their "foodies", in store chefs available to give advice and proposals, but the enthusiasm just for this potentially differentiating strategy seems to have waned with time. Behaving being a discounter in some Sku's but being a high end, fancy pants deli in others just confuses consumers, and I suspect their very own staff.

Technique is, amongstother things, in what you will not do, around it is about what you should do. Thomas Dux appears to have forgotten this lesson and was a victim of the temptation to stock SKU's that didn't add to the positioning of Dux as a retailer on whom you could rely on to deliver quality and differentiated specialist food products along with a a higher level service well past the usual expectation. This confuses and devalues the manufacturer. Thomas Dux is a lot like any other brand in the development phase, it will take absolute give attention to what makes you different and better. Why can I buy Kelloggs Corn flakes and Blend 43 coffee there?

Dux has existed for a while now, perhaps 10 years? That should have already been enough time to begin a defensible place in consumers minds if it is clear there exists a segment seeking an alternative to the mass market supermarkets. I suspect that the financial pressure has risen markedly throughout the last few years as Woolies excursion into hardware drained group profitability. The world wide web result could be that the quarterly numbers mattered more than the long term, so savings were created by management, the sort of savings that delivered me the rubbish grapes yesterday. If the grapes weren't good enough to justify the purchase price, they should not need been on the shelf. That kind of challenging culture requires time and continual effort to boost, and a reversion to a quarterly focus removes the management incentive not to sell grapes this week because they are inadequate, they need the margin today with the expense of tomorrow.

MeanwhileHarris Farm, the initial target of Dux definitely seems to be powering along. Perhaps Woolies will rue your day they did not buy Harris Farm when they were still young and vulnerable. I understand they tried, but were given the finger through the venerable Mr Harris. Perhaps they ought to have tried again, it might have been more affordable to both their coffers in addition to their reputation.

Allen Roberts is a guest contributor to Australian Food News. To read his full biography clickHERE.

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