Are we always being served?

Retail business is very sensitive to economic downturns and our retail industry is no exception. But the pain being felt by local retailers cannot be attributed solely to the difficult economic cycle we are in. The retail industry in Malta has generally failed to adapt to the major changes that have happened in the last two decades as a result of the advent of e-commerce and the transformation in the mindset of retailers in how they perceive customer service.

Who can blame the increasing number of people who have given up on local retail services providers?- John Cassar White

In the past several weeks, I have tried to gauge how different sectors of our retail industry treat their customers and compare this treatment to the one that most of us experience when travelling abroad. My findings were quite varied, and in some ways very surprising, at least when compared to my expectations.

Some weeks ago I needed to fix a minor problem with my car. I booked an appointment with the agent of a leading European car maker. Booking the appointment was not painful at all. However, that is where the good news ends.

In my first visit to the workshop I was told that I had to order parts from a sister company of the group that imports these cars. I just could not understand the reason why the workshop could not order this part directly from its sister company.

So I had to go to the spare parts outlet, wait for almost an hour as staff was on lunch break, and then order the part. I was eventually informed that the part had arrived and that I could rebook my car to have it repaired. I took my car to the garage for a second time only to be told after three days that, unfortunately, some of the parts needed to fix my car’s problem had not in fact arrived.

I booked the car for a third visit to the garage to have it fixed.

One lesson I learned from this experience – and that I put immediately in practice – was to decide not to replace my old car with another one from this agent as I had almost done while this incident was evolving.

Roughly at the same time I was pleasantly surprised with the level of service I received from the staff at the bring-in-site in Magħtab. I use this site frequently to dispose of garden waste after a pruning or weeding session. The staff is always polite, helpful and supportive. They could make any organisation that employs them proud at the way they treat their customers.

More recently I contacted branches of our two major banks to obtain information that should have been easily and quickly given, if only the staff had a higher inclination to serve their customers promptly and sufficiently well. My e-mails to one of these banks remained unanswered for a few days when a reply could have easily been given in a few hours. With regards to the other bank, a visit to the branch just revealed the lack of knowledge of a customer service employee who tried without much success to give me the information that I requested.

Now more than ever before, I understand why some of our banks are unable to win the respect of their customers despite their glitzy and massive budgets on advertising and public relations.

The crisis being faced by retail services providers is not just about small shops in Valletta which complain about the bad bus service and the parking problems that are affecting their business. It is also about major service providers like banks and other organisations which often have a dominant position in the market and, as such, can avoid the full impact of the dynamics of competition.

Quite apart from the need to invest more in technology, our retailers need to upgrade the level of the staff they employ. The advantage that they enjoy simply because the local market is small and still not benefitting from the competitive environment that exists in the EU, will not last forever.

Who can blame the increasing number of people who have given up on local retail services providers and prefer to buy their goods and service whenever possible by shopping abroad or by buying online?

No, in most cases the consumer is not being served by local retail services providers whether in the private or public sector.

johncassarwhite@yahoo.com