As an industry, we’ve been faced with numerous challenges since Brexit, with Covid, shipping delays and the war in Ukraine all playing a role in the increasing cost of goods and services in the UK – and adding to staffing issues. Now, as the rise in inflation is pushing up the cost of living, we’re finding out how those working in the nursery sector are managing as they face the ongoing challenges.
This week, Marc Hardenberg, CEO of Nursery Consultancy, Majuma, shares his insights into what he’s seeing in the industry at the moment and what changes he’s seeing in consumer spending habits:
“People will focus more on the essentials: food, mortgage, heating, etc, so there will be less money available for the ‘nice to haves’, which will affect all product categories to some extent.”
Have you had to rethink your marketing strategy to adapt to the current situation – and, if so – how?
“You have to ensure that you can maximise the potential out of your current listings and existing relationships with the trade. It will be a challenge to launch new products successfully, as many retailers will be risk-averse and will continue to work with their existing suppliers. Parents will move to cheaper alternatives, so it is important to get your pricing proposition right.”
How concerned are you about reduced consumer spending this Christmas?
“After the major challenges and issues we experienced last Christmas and the ongoing global problem, I can only hope that suppliers, retailers and consumers are better prepared. Reduced consumer spending is to be expected, so demand will be lower and this should affect stock levels accordingly.”
What cutbacks, if any, have you already seen or started to make?
“We are a very nimble business, so fortunately we do not have to make any cutbacks at the moment. However, we work closely with our clients to ensure that realistic forecasts are in place, so that we are fully prepared for a potential recession.”
Marc’s top tips, advice or resources for businesses struggling at the moment:
“Keep selling, manage your stock levels and cash-flow and don’t cut back on marketing to ensure you drive as much demand as possible.