SMEs evolving as lockdowns keep physical stores shut

With rolling lockdowns meaning bricks and mortar stores remain shut, SMEs have had to either pivot or come up with innovative ways of getting their product to market.

Joe O’Regan and his wife Deirdre sold a financial services business at the end of 2019, with the intention of travelling for a year but the pandemic meant plans had to change quickly and in October 2020 they launched a candle and diffuser business called Put Your Feet Up.

They now employ six people and are manufacturing throughout lockdowns, while adhering to all health and safety guidelines.

“There has been a big appetite to get behind Irish businesses. Our natural wax candles and reed diffusers are an eco-orientated range. To build an online business, you need to make sure your packaging and branding is lovely. You need to think of the Instagram effect.

Stone Age

“Traditionally selling to wholesale would have been done through sales reps calling to stores but we see that as Stone Age now. Instead they are looking through catalogues online, buying online and downloading images for social media online,” he says.

O’Regan says he does not see a return to the old way of doing business once the pandemic is over, with a hybrid most likely.

“What has happened has disturbed patterns so much, you can’t swing right back. People now expect same-day delivery in the wholesale world, they are not into waiting around anymore,” he says.

Post-Brexit, it’s been difficult to import products and supply chains have broken down. “It’s now very complex and things are so expensive,” he says.

“We feel we have a very tourist-friendly product, but no tourists. Even the staycation market is questionable so it’s as tough as it can be but they say if you can make it work, starting out in a recession, then you’re in a good position,” he says.

Rebecca Winckworth, from bed linen and homewares makers White and Green Home, says they are lucky they had a great website built before Covid-19. “Since then we implemented 24/7 customer service through our online chat. We have a lot of older customers writing to us to asking for a phone call, as they are not comfortable with online shopping. We think that it is so important to not forget about the generation who like to visit bricks and mortar stores and who are not tech-savvy.

“For that reason we are on hand at any time of the day or night to pick up the phone and call someone to place an order with us. It’s also lovely to have a chat with real people – a lot of people are very lonely right now and they might stay on the phone for an hour chatting with us about life and we are delighted to do that and enjoy connecting with our customers that way,” she says.

Winckworth says they had major difficulties with production at the start of the pandemic as their factory was closed for months. “In November, there were a lot of delays with Irish couriers due to new restrictions on the workforce and a huge rise in Black Friday shopping. But overall, we have a very solid strategy in place. The customer simply shops online and they receive the item a couple of days later by courier. We have all learned how to manage this new way of doing business and our customers say that we provide a great and efficient service,” she says.

Their factory is currently working at 50 per cent capacity to keep workers safe, which means with high customer demand, production is slower. “However, we have managed to keep our best-sellers in stock and we have everything running smoothly,” she adds.

Lockdowns have devastated the restaurant and hospitality business. Deliveroo and takeaways are a substitute for eating in a favourite restaurant, albeit a poor one, according to William Despard of Bretzel Bakery said.

Relevant

“The challenge is to be relevant and available. Our loyal cafe customers cannot do their brunch on sourdough toast for now; but the Bretzel Bakery pivoted by dividing up our catering sliced sourdough into retail packs – just add some poached eggs, maybe avocado and a toaster to recreate that cafe brunch,” he says.

A new trend is to treat employees to mark a special occasion. “This complements our Portobello bakery’s click-and-collect offering, which is in essence a shop window for company owners who want to look after the health and wellbeing of their employees.”

The Dublin Liberties Distillery continues to distil its whiskey but the visitor centre and bar has closed. It is now delivering products to the doorstep nationwide.

“We have invested in online digital campaigns and social media and we are offering something that you would never buy for yourself. You might send it to a loved one you haven’t seen in ages,” says Lisa Doyle of the Dublin Liberties Distillery.

Dublin Town chief executive Richard Guiney says supports through the Local Enterprise Offices and the online voucher have been vital in the context of SMEs going online.

“While these services have allowed businesses to maintain some staff, the turnover available in these options is well short of the levels that could be anticipated where stores and restaurants are open. The most successful retailers have reported that online sales during lockdown are in the range of 30 per cent of levels anticipated in a normal trading environment.

“In previous lockdown periods, retailers have also been allowed to engage in click and collect. This option is not currently available and there isn’t any certainty as to when it may re-emerge. While businesses are losing money despite their online activities, many see the provision of online services as a customer-retention activity and hope that customers will remain loyal to them in the post-pandemic period,” he says.

“Many independent business owners are taking on debt to survive while others have closed for good but many are seeking to hold out until they are allowed return to trade. However, there is no overstating how difficult circumstances are becoming,” he concludes.