Non-core items are defined as items outside of normal activities of operation. They are peripheral or incidental. Even if non-core items are considered separate from everyday business operations, they may still represent a substantial part of a business’ health, according to website, Investopedia. In 1982 Terry and Lyn Herfort opened a pharmacy in Avalon NSW. It was the days when stores closed at lunchtime on a Saturday and were closed on Sundays but they have always traded 12 hours, seven
n days a week.
Avalon is a small village close to Avalon Beach and has numerous coffee shops where the rich and famous enjoy their lattes.
The Barefoot Boulevard kind of sums it up. You will see millionaires, barefoot, wearing their favourite t-shirt riddled with holes.
One would be forgiven for thinking they were hobos. The Herforts decided way back in 1982 to open an ice cream parlour inside their pharmacy.
It is still there today.
The pharmacy is about 400sqm and the ice cream section comprises about 15sqm. The Herforts originally franchised the ice cream operation for about a year, but decided they could do a better job themselves.
They have their own ice cream maker machine (called Ralph) and a pasteuriser machine (called Milly).
Every day they make their own ice cream.
I asked Lyn whether it justified the space, which was not a terribly clever question. Her response was simple – “well it has been there for over 30 years”. I also asked whether kids spilt ice cream all over the store.
“Yes, but so what” was the response. I returned the following day to take a few pictures with Lyn’s permission and it was then that I saw the grocery and confectionery departments.
Similar to newsagencies, pharmacies are under threat.
Many have closed in recent times and there are more to follow, but the Herforts have a thriving business, partly because they think outside the retail square.
There are, of course, a few challenges in stocking non core items.
The owner of exclusive Singapore department store, CK Tang, once told me proudly that the most profitable square metre in the store was one at the top of the escalator where popcorn was made and sold.
It just happened to be on the ladies fashion floor. The smell of popcorn was not exactly conducive to buying a high ticket garment!
In this age of sameness, we need to have a point of difference.
Laura Ashley is doing well selling ladies clothing along with furniture, linen, lighting, tea cups, carpeting, wall paper and lots more.
See its website for its huge range of goods and services provided in small stores.
What these retailers are doing flies in the face of retail logic and every purist out there will disagree.
Yes, image is important – very important – but it doesn’t feed the kids.
* Stuart Bennie is a retail consultant at Impact Retailing www.impactretailing.com.au and can be contacted at stuart@impactretailing.com.au or 0414 631 702
