As suggested in the introduction, the place where you trade
is of utmost importance. The aspects to look for are the amount of consumer
traffic, parking, related stores, and of course rent – which usually reflects
the expected turnover of the retail destination. Low rent often means little
consumer traffic.
There are many examples of good ‘place’ decisions for
specialist olive outlets all over Australia and New Zealand. There is the
Marlborough Olive Shop on Ruapura Road in Blenheim, New Zealand, part of a
tourist complex offering food, wine and vinegars. Across the Cook Strait there
is the Kapiti Olive Shop at the Lyndale Centre, a much larger tourist complex
just north of Wellington. Both these shops carry a range of olive and related
products and rely on the complex to catch the tourist traffic looking for food
and a browse.
In Australia there are the Olive Shops that are in major wine
tourist areas, such as the Cowamarup Creek Farm shop, the home of Olio Bello, at
Margaret River in Western Australia, and the Hunter Olive Centre that is part of
the Pokolbin Wine Estate in the Hunter Valley.
In the wine region of Stellenbosch in South Africa there is
Cottage Fromage – a cafe serving light deli meals with a shop for local olive
products, wines and cheeses.
There are the nomadic trestle-based olive retailers who ply
their trade at the farmer’s markets in the city and country alike. Here the
competition is intense, not only to get and hold a spot – but to compete with
the burgeoning number of producers who see this as the best way to sell their
small volume labels.
There are also scattered examples of bad decisions – farm
stores miles from anywhere and specialist olive outlets selling local products
in suburbs populated by ethnic groups that have used the olives and oil from
their homeland for generations.
Picking the right place is critical for success.
Product
The flood of new labels coming on to the market in Australia
and New Zealand means that the specialty olive shops are being overwhelmed with
approaches to stock the new brand. Of course they cannot all be accommodated.
Many that are already on the shelves don’t move – an untenable situation for
the retailer.
The altruistic approach to fulfil the aspirations of
producers must be tempered with retail reality. Successful retailers will stock
the products that are well priced, well presented, well promoted and different.
These move and make profits.
A range of products is also more likely to encourage the
add-on and impulse buy that turns a spend of $19.50 on a bottle of olive oil
into a bigger spend on associated products. Clever cross-merchandising can
increase the value of the sale per customer – an important retail benchmark.