The retail sector is fascinating at the moment. The news story that really caught my eye this week was the report that Liverpool-based discount chain B&M are planning to double their number of stores over the next few years from the current 400 to 850. And they are believed to be eyeing up a number of the stores likely to be vacated by Homebase who recently announced that up to 80 of their stores would close.

And who is spearheading the B&M march forward? None other than Sir Terry Leahy, the former (and very successful) boss of Tesco who are somewhat under the cosh at the moment, with assaults on their dominance by the likes of Aldi and Lidl. Perhaps Sir Terry could see the writing on the wall for the Tesco business model well ahead of his departure.

What interests also is that these companies still believe in ‘bricks and mortar’. Online shopping has come of age, but operates in harmony with shops and showrooms.  

And where this new breed of discount store are winning is that they strictly limit the number of product lines they stock compared with Tesco et al – and they limit the amount of perishables that they stock thus improving stock-turn and profit.

So, why would this affect the way a specialist retailer views his business (let’s ditch the word dealer for a moment). Are the methods that huge chains like Tesco, B&Q,  Aldi, Homebase and the rest run their business by, of any relevance?

Of course they are. Because the common denominator is the consumer.

Talk to any garden machinery specialists who were around in the 1970s and 1980s and they will go dewy-eyed remembering lines of people crowding their showroom or lining up at the parts counter.

Those days are gone. Today’s consumer is more fickle, more demanding, more impatient and less loyal.

As we approach the end of the year, all specialist retailers should be taking a look at their retail model. The layout in the shop, their marketing, their product lines, their pricing strategy, their communication with customers.

They should get into the minds of their customers. Why should they choose me? More importantly how do I attract new customers to replace what is often a mature customer base?

Big stores regularly use ‘loss-leaders’ to get people through the door, a key product advertised at 30/40/50% off for a short while. Whilst that is not likely to be something to be adopted by a specialist, there are other eye-catching ways of attracting people through the door which gives the impression of being a ‘good deal’.

So use this time of the year, to stop and think - and ask yourself the simple question “Who Am I?”