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Pie Face a timely reminder about the importance of a healthy core

piefaceThe appointment of Administrators to the Pie Face retail chain is disappointing for a high-profile Aussie retail start up. It’s never good reading about a retail group in such trouble.

News reports this week have gone into some detail about challenges for the business that led to the owners bringing in the Administrators. The stories are a reminder to all retailers to ensure the core of your business is healthy.

The core of any retail business is fixed costs, traffic generation, current cash flow and future plans to grow traffic and sales. These all play into the health of any business. Weakness in one plays into another and another.  Each can be affected by weather, local economic conditions and consumer confidence. It’s why running a retail business is often compared to juggling.

To the credit of the owners of Pice Face, they are owning their situation and this is evidenced by them appointing managers.

Our channel continues to face extraordinary change. Like Pie Face we are in a competitive marketplace. Unlike Pie Face, our retail businesses have been around for a long time. Usually, longevity would be a foundation for strength. In our situation, longevity is a barrier to change.

The challenge for newsagents is to be alive to the challenges, be realistic in assessing your business health and acting early rather than late to build a better future.

While you may not feel a connection what is happening with Pie Face, there is one. Take a moment an consider your core health.

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