Rose chain braces for trade wilt: [1 All-round Country Edition]
Stapleton, John. The Australian; Canberra, A.C.T. [Canberra, A.C.T] 02 Aug 2006: 4.
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Mr [James Stevens] said Roses Only was solid enough to ride out the situation, but it was at times like this he was very glad he had chosen an internet-based business model, closing down 90 per cent of their bricks and mortar outlets and relying on existing infrastructure. "I feel sorry for your average mum-and-dad retailers who can't fall back on cash reserves or renegotiate their rents," he said. "These latest interest rate rises will only add another nail to the coffin of the `Joe Bloggs' small businessperson running any retail outlet."
ROSES Only has traditionally pitched itself at the top end of the market.
Feeling romantic or apologetic and happy to spend $60 to $250, or even more, to let your feelings be known? The flower retailer has been just a phone call away, representing the ultimate in "discretionary" spending.
But Roses Only, along with businesses around the country, is bracing for the impact of today's expected rise in interest rates.
While watching carefully the effect on consumer spending, the nationwide company intends to shift its marketing focus to thebottom end of its range of gift packs that include flowers, chocolates and scents.
"The interest rate rises will create an awareness, a consciousness to be mindful about spending," Roses Only founder James Stevens said yesterday.
"We are mindful of it. People are cautious.
"Someone who might have once bought two dozen roses and a bottle of Moet champagne might now just buy a dozen roses. We are not arrogant enough to think the interest rate rises won't have an effect on the spending habits of our customers."
Mr Stevens said Roses Only was solid enough to ride out the situation, but it was at times like this he was very glad he had chosen an internet-based business model, closing down 90 per cent of their bricks and mortar outlets and relying on existing infrastructure. "I feel sorry for your average mum-and-dad retailers who can't fall back on cash reserves or renegotiate their rents," he said. "These latest interest rate rises will only add another nail to the coffin of the `Joe Bloggs' small businessperson running any retail outlet."
Mr Stevens said the interest rate rises would create a domino effect among businesses around the country.
He said even at the supermarket the "I wouldn't mind that" items - - such as flavoured yoghurts and chocolates -- would be left on shelves.
He believed the expected rate hike had already begun to affect consumer confidence.
"I think the effects have already started to hit home," he said. "There is no doubt there will be an impact."
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