As the Schools’ Enterprise Association launches the Retail Chapter, its chief executive Dorothy McLaren ponders the future of school shops in an increasingly online era

Going to a new school always used to come with the necessary appointment at the school shop, clutching the seemingly endless school uniform shopping list and the dread of sewing on countless nametapes. That is until uniform retail went online. The advent of a new era in school uniform retail also threatened the very existence of the school shop.

Online retail of school uniform has, in the main, been excellent news for schools and parents alike. Providing the right stock in the right place at the right time is now in the hands of skilled uniform buyers and merchandisers with little involvement needed from the school. The school no longer needs to deal with obsolete stock or meet the recurring summer staffing challenges. The school shop, once a hive of activity over the summer with a steady trickle of customers throughout the year, had become redundant. Or had it?

Talking to the online uniform retailers – the disrupters of the school uniform market and thus the school shop – they will suggest that shops were largely run by staff who were not trained merchandisers or buyers and the school was committing a significant amount of resource, financial and staffing, to delivering a service that could be better offered through a dedicated team who make uniform their business.

The loss of the cash and resource-hungry school uniform business did not, however, necessarily need to see the end of the school shop. With a clear strategy, the retail offer can be adapted to meet the on-site demands of a significant pupil, staff and parent body and, if well-managed, deliver good commercial returns to the school.

The appointment of an online school uniform supplier to look after pupils’ uniform needs does, however, significantly change the nature of the school shop. The shop has a few options: close; provide a much-reduced on-site service for pupils; or reimagine the school shop offer. Shrewd school shop operators explore other retail opportunities. Alongside second-hand uniform sales, the school shop will need to turn its focus to meeting pupils’ needs on-site during the termtime and visiting pupils’ needs during the holiday periods. Add to this a well-managed and marketed online school shop presence and a relevant retail offer can be extended to an even broader group of customers throughout the year.

Taking into account not only the immediate needs of pupils and staff but also the wider appeal of school-branded and influenced products will result in a relevant and modern school shop offer that doesn’t rely on school uniform sales for its existence. Carefully researching and selecting merchandise with a very clear understanding of the school’s very specific target audiences is the start of the new direction.

In any retail operation, it’s about the right merchandise, in stock at the right time and place to meet the needs of the buying audience. A beautifully crafted silver rugby ball on a school branded key chain may not be on every current pupil’s ‘must have’ list, but it is an excellent take-home souvenir for a rugby enthusiast, their parents or extended family, or a pupil experiencing rugby through a summer camp programme. School shops displaying carefully selected bespoke merchandise sold alongside everyday products can, if well managed by professional trained retailers, deliver and even better return than low-margin school uniform sales.

The well-run retail-focused school shop also changes the way it merchandises the products, and its opening hours, depending on the time of year and the audience it is attracting. During the summer holidays, for example, shop displays may be heavy on school memorabilia and products that are attractive to school visitors, while opening hours are shortened. Term-time shop displays will reflect the more immediate functional and practical demands of the school’s pupils and staff.

Any school shop manager will have a story to tell of merchandise that they have been encouraged to order at the request of a member of staff or a group of pupils, which hasn’t sold and has had to be heavily discounted at best and at worst, given away or dumped. The careful selection of the right product, meeting the needs of a specific and well-understood audience is key to successful retail. The school shop’s audiences can be varied – current pupils, alumnae, parents, visiting pupils/public – each audience and their potential has to be understood and merchandise carefully bought to meet them.

As with any retail offer, margins and pricing is critical. The school shop, in line with all retailers, should focus on delivering the right product, at the right price. Careful experienced management with the school’s support will return a profit from retail initiatives and the school shop. Together with the rest of the traded services revenue, this can provide much-needed non-fee income support for the school, mitigating the increasing pressures on school fees.

Worth considering is that beyond the school shop, with some careful analysis and internal restructure, the school’s buying power across the many diverse products (and services) could be centralised and include the school shop and extended merchandise range. Establishing a central buying operation which rationalises resource, carefully manages stock levels across all categories, and drives improved margins, has the potential to deliver significantly increased returns.

As important as the revenue it can generate is the reflection of the school’s brand in both the school shop and related merchandise. Poor-quality, incorrectly branded products will not only return a poor margin but can also undermine the school’s carefully curated image. Working closely with the school’s marketing team will ensure that everything offered supports the school brand, one of the school’s most important assets.

Visiting a school and seeing a motley selection of product poorly displayed on a dusty shelf in the school’s reception does nothing to sell the product or enhance the school’s brand. Put that product selection, development and display in the hands of a seasoned retailer, give them the space, virtual and physical, and resource with which to market and sell the products alongside the usual array of pupil-focused Haribo and deodorants, and the school shop can present new and exciting opportunities in 2024 and beyond.

Dorothy McLaren