With a legacy spanning over 138 years, UK arts and crafts retailer Fred Aldous has weathered numerous challenges, from world wars to global pandemics. For Paul Walker, a fifth-generation co-owner of the store, one enduring principle stands out: the importance of nurturing strong relationships with suppliers.
Expanding Amidst Disruption
Fred Aldous has shown careful consideration in its expansion strategy. After establishing stores in Manchester and Leeds, the business ventured into Sheffield in 2020. Despite the uncertainties of the pandemic and lockdown disruptions, this expansion proved successful, driven by increased demand for creative activities during the pandemic. Throughout its journey, Fred Aldous has leveraged technology to enhance efficiency and stay competitive.
Digital Transformation for Survival and Growth
Fred Aldous embraced e-commerce early, launching an online storefront on Shopify. This move was instrumental in navigating the challenges posed by the Covid-19 lockdowns, enabling the business not only to survive but to thrive. However, managing finances efficiently remained a challenge, particularly with the manual processes associated with older accounting systems.
Enhancing Supplier Relationships Through Technology
Effective supplier management has been critical for Fred Aldous. The business processes two payment runs per week for over 200 suppliers across the UK and Europe. Initially reliant on an external payment platform, Fred Aldous faced challenges with cash flow management and payment security due to the volume of transactions.
To address these issues, Fred Aldous transitioned to cloud-based accounting software, which revolutionized their payment processes. The introduction of Xero’s bill payments feature allowed the business to perform batch payments directly from the platform, streamlining payment management and significantly improving efficiency.
Adapting to the Digital Payments Revolution
While cash remains a vital part of Fred Aldous’s operations—accounting for about 30% of transactions—the business has observed a growing preference for digital and contactless payments. In response, Fred Aldous upgraded its till systems to accommodate these modern payment methods, enhancing customer convenience and improving transaction tracking.
Investing in Future-Proof Solutions
Fred Aldous’s decision to adopt Xero’s accounting software was a game-changer. The platform’s advanced features facilitated better financial management, allowing the business to handle payments more efficiently and maintain robust supplier relationships. The switch to Xero has not only saved time but also enabled Fred Aldous to optimize cash flow and negotiate more favorable payment terms with suppliers.
Walker’s experience underscores the importance of adapting to technological advancements while preserving valuable supplier relationships. By embracing digital solutions, Fred Aldous is well-positioned to continue its legacy and thrive in the evolving business landscape.
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