1. business and industrial

Hospice in the Weald
Retail
Business Plan
April 2012 – March 2015
“A plan to ensure we are giving £1million
to the charity from 2014 and then more
in each and every year.”
Page 2 of 17
Contents
1
Executive summary
2
Introduction
3
Developments during 2011
4
An agenda for change
5
Aim & business pillars
6
Strategic goals
7
SWOT analysis
8
PEST analysis
9
Promotional & branding strategy
10
Establishment
11
Organisational structure
12
Retail 2012-2013 budget summary
13
Delivering the plan
14
Monitoring the plan
Page 3 of 17
1. Executive summary
Aim:
To ensure that by the end of 2015 the Retail Company gives £1million, in each year, to the charity.
The retail department has a responsibility to our supporters in this community to ensure the
commercial opportunity of every donation is maximised through every channel available to us.
5 business pillars form key areas of focus for the business in achieving our aim:
Our people
Customer/donor relationship
Sales/donations
Costs
Trading safely & legally
Each business pillar has clearly defined objectives and there is a system in place to measure the
deliverables on each pillar.
A promotion and branding strategy will be developed to:
1. Use clear and consistent branding in the form of our key messages.
2. Ensure that our key messages have relevance to our customers and those
they care about.
3. Ensure branding is professional and impactive.
4. Use emotive, strong images to reinforce our brand.
5. Maximise publicity for Hospice events in our window displays.
6. Build relationships with communities and local businesses.
The departments establishment has been revised to streamline the organisational structure and
ensure focus on business development within the community ensuring our brand is delivered
consistently as the most prominent charity brand within our community and that every
commercial opportunity is maximised.
Income:
Last consolidated accounts
2012-2013
Sales (£)
Net profit to Hospice (£)
1,401,468
611,734
1,952,700
859,558
Page 4 of 17
2. Introduction
As charities cannot trade Hospice in the Weald (Trading) Ltd operates as a separate, arms length,
retail/trading company, wholly owned by the charity and controlled by the Trustees. The retail
company currently consists of 15 shops throughout the towns and villages of Hospice in the
Weald’s catchment area. The company benefits from the strong support of our 450+ volunteers
and historically do not have a problem with donations. Any items donated that we cannot sell in
the shops are disposed of responsibly.
Whilst not struggling to find volunteers, we work closely with local schools under the Duke of
Edinburgh Award Scheme to encourage younger support. We hope that this can also provide
schools/young people in our community with the benefit of ‘giving something back’ as well as
working with our supporters of the future.
Hospice in the Weald has a shop on site which is profitable and often commented on as providing
a valuable service to our patients, carers, families and visitors. The financial amount gifted to the
charity by the retail company has grown year on year over the last 5 years but the increase in gift
aid donations has been disappointing.
3. Changes during 2011
The retail operations were brought under the Fundraising Directorate.
Reception shop has been properly shop-fitted and moved into a more suitable and user
friendly area.
Shop managers and volunteers have been provided with two Gift Aid training seminars.
The value of niche markets was researched; this led to the opening of our first bespoke
boutique department in Rusthall: The First Floor.
Introduced the business pillars: (Our People, Customer/donor relationship, Sales/donations, Costs,
Trading safely & legally.
Paddock Wood became our showcase shop for branding and key messages; this is now
being rolled out to all stores. Bespoke printed swing tags on clothing provide a strong takehome relevant message.
Agreed and signed off a business case to modernise our till systems. Adopting an EPoS
system in quarter 4 of the current year so that system benefits can be fully enjoyed in
quarter 1 of the 2012/2013 financial year.
Laid plans for physical expansion, including identifying three new potential premises.
Negotiated a 30% increase on rag prices to ensure we get a fair market price for donations
that we are unable to sell.
Page 5 of 17
Decentralised the retail area manager role, this has added immense value to the area
manager role and let to a greater commercial understanding of our business.
Secured the donation of a second luton van which has allowed us to dramatically decrease
waiting times for furniture deliveries from three weeks to within a week.
Negotiated significant cost saving on the purchase of new goods for resale. Including 30%
cost saving on Christmas cards
Developed relationships with local companies, including Panache and Love is Boutique, and
dress agencies to secure additional, high quality, donations.
4. An agenda for change
Our shops are the face of our charity and we will focus our move forward to increase the number
of new premises to ensure we are represented in every key geographical area to us, as well as
further exploring niche markets and multi-channel retailing, through more than one distribution
channel.
With new focus and direction we feel the retail operation to be one of great opportunity. There
has been little PR coverage in the past which we will address, and a closer working relationship
with ‘fundraising’ & ‘retail’ under one directorate will enhance income generation for the charity.
5. Aim & business pillars
Overall aim of the business plan:
The retail department has a responsibility to our supporters in this community to ensure the
commercial opportunity of every donation is maximised through every channel available to us. In
doing this we will ensure that by the end of 2015 the Retail Company gives £1million, in each year,
to the charity.
Year 1 aim:
Historically communications internally within the Retail Company between shops, volunteers and
management, and external communication of charity aims and key messages to customers and
donors have not been strong and consistent.
Year 1 aim then must be to develop channels of communication and improve and enhance
relationships both internally and externally. We will develop a specific promotions and branding
strategy to achieve this aim.
Page 6 of 17
Business pillars:
Our People
Our volunteers and our staff are crucial to what we do. We want our people to know and feel this,
to be part of the making and shaping of the retail company. Each member of the retail leadership
team will lead on a business pillar and shop managers will have the opportunity to participate and
have input on decision making processes. We will listen to, and act on, the feedback of the
volunteer and staff consultative groups and we will provide the opportunity for, and encourage,
full 360 feedback at all levels.
Customer/donor relationship
We recognise that our shops are the forefront of our charity within the community and we will
ensure that each shop represents the aims and values of Hospice in the Weald. Our shops will be
welcoming places for people to browse shop and donate; we will not turn away donations to our
Charity Shops and we will engage customers in positive ways. We will deliver on our commitment
to work closely with the fundraising department and ensure that events, flyers and posters are
advertised effectively and proactively. All communications will be consistent with our branding
and key messages; we understand the need to build long term relationships and are aware that
these supporters can benefit the charity in other ways.
Sales/donations
Whilst we have not historically had a problem with donations we must not be complacent and are
aware that this will not always be the case, we will research creative and innovative donation
campaigns. We will seek to target donation campaigns and deliver the yields to the appropriate
consumer market to maximise revenue potential. We are, as a company, committed to our
responsibility to the community to ensure the commercial opportunity of every donation is
maximised through every channel available to us.
Costs
The aim of the retail company is to maximise the commercial opportunity of each donation and to
gift as much money to Hospice in the Weald as possible. We are also sensitive to the current
economic climate and the need for all organisations to make cost effective decisions. We will
implement a cost improvement programme to identify what constitutes vital spend and make the
necessary changes, we will never make cuts that compromise the wellbeing and safety of our
volunteers and staff. We will be open, honest and transparent about our profit margins.
Page 7 of 17
Trading safely and legally
We want to provide safe environments for our people to volunteer and work in, we will ensure
that we have clear health and safety procedures in all of our premises, including manual handling,
fire safety and COSHH. We commit to providing appropriate and effective training for all of our
people concerning this. We want to treat our customers fairly and with respect; we will ensure
that everyone in our company is aware of, and adheres to, relevant legislation.
Page 8 of 17
6. Strategic Goals:
STRATEGIC GOAL 1
Build and nurture our culture of improvement. Continually use creativity
and innovation to provide our personnel with the tools and ICT systems
needed to maximise commercial opportunity and meet the needs of a
modern, rapidly expanding, retail organisation.
STRATEGIC GOAL 2
To ensure our shops are welcoming places for people to browse, shop and
donate; we will not turn away donations to our Charity Shops and we will
engage customers in positive ways.
STRATEGIC GOAL 3
Produce & implement a plan to expand the retail department to a multichannel operation and to develop a strategy for physical expansion.
STRATEGIC GOAL 4
To reinforce the organisational structure. To ensure that shop managers
manage the volunteers and area managers manage the shop managers.
STRATEGIC GOAL 5
To work closely with the fundraising department to have the name, brand
and work of Hospice in the Weald understood throughout our catchment
area of West Kent and East Sussex and to develop beneficial external
partnerships.
Page 9 of 17
7. SWOT
S
Large retail estate
Passionate volunteers
Individuality of stores
Location of shops
Window displays
Coffee mornings & special events
Highly respected local charity
Far reaching and diverse market
Existing member of the Charity
retail Association
Paid staff in every shop
O
Economic climate presents a more
spend conscious consumer
More awareness (website)
More information leaflets
Positive publicity
Training
Loyalty card & incentive schemes
Better communications
Future shop locations
Potential to expand into niche
markets / multi-channel
Analysis
W
Training for managers & volunteers
Inconsistent corporate message
Shop location
Communications
Lack of commercial information
Ownership and responsibility
T
Economic climate presents a
potential donor shortfall
Negative publicity
End of transitional Gift Aid
Other charity shops with strong
emotional pull e.g. PDSA
Recent rapid growth in the
economy retail sector
Page 10 of 17
8. PEST
P
Analysis
E
New SORP will require charities to
record value of donated goods not
yet sold.
Economic climate makes for thrift
conscious consumer – more likely
to visit charity shops.
Proposals to cap the number of
charity shops.
Decline in demand for new goods.
S
T
Charity-chic image
Implementation of EPoS
Highly respected local charity
Automated Gift Aid processes
Improvements in marketing and
brand awareness
Page 11 of 17
9. Promotion & branding strategy
Built around four pillars; Our Brand, Public Relations (PR), Relationships and Community Relations,
our promotion and branding plan will:
Use clear and consistent branding in the form of our key messages.
Ensure that our key messages have relevance to our customers and those
they care about.
Ensure branding is professional and impactive.
Use emotive, strong images to reinforce our brand.
Maximise publicity for Hospice events in our window displays.
Build relationships with communities and local businesses
Our Brand
Will be clear an evident around our shops, it will inform, educate and provide opportunity
for us to make an ask of our customers.
We have strong, emotive images behind tills and in high traffic zones to reinforce and
enhance our key messages – these will be in place by end October 2012.
Public Relations
We will establish a communications group to ensure exposure of retail activities are
maximised through press, our events and our existing relations. First meeting to be held by
end April 2012.
The Retail Co-ordinator will liaise with the Communications Co-ordinator to ensure our
external newsletter and existing communication channels drive footfall and donations.
Relationships
We will ensure that Smart Till and Donorflex databases are integrated and that we
regularly review and improve the way that we do this.
We see database integration as a two stage process
1. Transfer of donor contact and Gift Aid data
2. Use of Donorflex data to build in-shop engagement with loyalty customers
Community Relations
Retail Area Managers will regularly attend at least one business forum by September 2012
and ensure that information is shared with the organisation appropriately.
We will promote initiatives within our shops that are nil cost; will strengthen community
relations and drive involvement and engagement with other business and their customers.
Minimum two initiatives trialled by January 2013.
10.
Establishment
Level
Bands
Lowest
Highest
FTE's
Head of Retail
32 to 37 £28,450 £31,546
1.00
Retail Co-ordinator
14 to 21 £19,466 £21,640
1.00
Retail Area Manager
16 to 23 £20,339 £22,878
2.00
Furniture Store Manager
5 to 10
£15,538 £17,720
3.00
Shop Manager
2 to 7
£14,228 £16,411
15.5
Van Driver
0 to 5
£13,355 £15,538
4.00
11.
Organisational structure
Head of Retail
Retail Area
Manager
Furniture Shop
Manager
Van Driver
Shop Manager
Retail
Co-ordinator
Admin
Apprentice
Page 14 of 17
12.
Retail 2012-2013 budget summary
Sales (£)
Net profit to Hospice (£)
1,952,700
859,558
Sales (£)
Shop profit (£)
1,952,700
1,014,578
Camden Road
119,600
91,195
Tonbridge
119,600
90,183
Rusthall
135,200
106,059
Crowborough
145,600
119,779
Southborough
78,000
53,488
Pembury
83,200
56,966
187,200
155,882
Cranbrook
93,600
68,283
Sevenoaks
140,400
111,357
Paddock Wood
104,000
75,823
Wadhurst
104,000
77,934
Mayfield
93,600
66,727
Edenbridge
67,600
44,250
Tunbridge Wells Furniture
228,800
193,391
Westerham
109,200
79,896
Heathfield
57,000
33,757
Calverley Road
70,100
40397
Five Ashes
56,000
24,766
9,400
7,300
Retail company
Shops consolidated
Cranbrook Furniture
Multi channel
Page 15 of 17
13. Delivering the plan
Our people
Sponsor & nurture our volunteers and staff. To provide our people with the opportunity to
be who they want to be
o Devise a robust induction programme bespoke for volunteers and staff. To have this
in place by end of April 2012.
o To develop and maintain a training plan for shop managers by end of April 2012.
Devise and implement a system for recognition and reward and measure the value our
people add to our business. To have this system in place by May 2012.
To participate in the Croner salary survey (complete) and review salaries accordingly by
April 2012.
Customer/donor relationship
To develop a way of measuring the in-shop customer/donor experience with consistency
and parity by August 2012. To have processes in place to communicate the results and
respond to feedback.
To review ‘the look’ (including maintenance and upkeep) of our shops. To establish “what
good looks like”, measure our delivery of this and prepare a ready to trade checklist by
August 2012.
To research current practices for loyalty schemes in other charities, produce our own
loyalty scheme and run regular loyalty events – first event by end September 2012.
Sales/Donations
To review pricing methods in all shops by September 2012 and develop a local operating
procedure to ensure parity on pricing, whilst observing differences in localities, by October
2012.
Have in place, clearly communicated, methods for moving stock on to shops where the
commercial potential can be maximised by end January 2013.
To develop tailored donation campaigns for our specialist shops, and to have a plan for
increasing volume of quality furniture donations by end July 2012.
Implement EPoS system in all shops by end May 2012 and consistently deliver 30% Gift Aid
sign up rate by November 2012.
Page 16 of 17
We will measure market share of our shops in their locations and develop a system for
recording this and providing annual comparisons by end October 2012.
Produce a sales plan that provides a road map for initiating, and then developing, multichannel sales. We will explore eBay, Facebook and e-commerce through our own website
as sales medium. Sales plan to be produced by end July 2012.
Costs
To evaluate the use of petty cash in shops and make recommendations for streamlining the
system by end June 2012.
Devise and implement a cost improvement programme that evaluates expenditure against
budget and previous year. Results to be clear and transparent so that all can be behind
recommended cost savings. To be implemented by September 2012.
Evaluate the decode process in all shops and prepare a local operating procedure by
August 2012.
Ensure that unsalable donations are processed responsibly and at minimal cost. Develop a
programme for waste management and make recommendations by January 2013.
Trading safely & legally
To make recommendations for and co-ordinate training so that shop managers are able to
take ownership of fire safety; health and safety and COSHH in shops by July 2012.
Evaluate procedures for cash handling and banking in all shops and make
recommendations for change by end June 2012.
Research and advise on relevant legislation including refunds and exchanges, designer
goods and sale of goods. To provide appropriate guidance to each shop by end November
2012.
Devise a system to measure TSL compliance by end June 2012.
Page 17 of 17
14. Monitoring the plan:
Task or Milestone
Our People
Sponsor and nurture our volunteers and staff
Devise and implement a system for recognition and reward
Participate in the Croner salary survey and compare with own
Customer/Donor Relationship
To develop a way to measure in-shop customer/donor experience
Review 'the look' of our shops and to roll out consistent branding
Loyalty Scheme
Sales/Donations
Review shop pricing methods and develop local operating procedures
Have in place clearly communicated methods for moving stock on to other shops
Tailor donation campaigns for specialist shops/increase the volume of quality donated furniture
Implement EPoS system in all shops and consistently deliver 30% Gift Aid sign up rate
Costs
Evaluate use of petty cash
Devise and implement a cost improvement programme
Evaluate decode process in all shops/prepare local operating procedures
Develop a waste management programme (incl. unsalable donations)
TSL
Co-ordinate training to allow shop managers to take ownership of fire safety, H&S and COSHH
Evaluate procedures for cash handling and banking in all shops
Research and advise on relevant legislation; refunds, exchanges, designer goods and sale of goods
Measure TSL compliance
KEY
Scheduled date
Completed
Outstanding and overdue
April
-12
May
-12
Jun12
Jul12
Aug12
Sep12
Oct12
Nov12
Dec12
Jan13
Feb13
Mar
-13