How to adapt your retail business in changing times
Part Three of Merchandising lessons from a tin of Quality Street
This is the last in a series of three blog posts inspired by a merchandising talk given by Flourish founder Sarah Johnson at the Top Drawer retail trade show in London in January 2025.
Have we reached the end so soon? It must be true. But don’t worry, the third and final post in this mini-series is going to show you several ways Quality Street has adapted over the years to stay profitable in the face of changing circumstances.
We’re focusing in on three merchandising lessons across the series:
How to perfect your product mix
How to use data to drive decisions
How to adapt your retail business in changing times
Let’s jump straight in and look at how Quality Street is continually innovating and reviewing its product offering.
Times have changed since 1936
Yes, 1936 – that’s when Quality Street first launched. Strangely enough, the world has been through a few ups and downs in that time, and Quality Street has flexed with the changes.
We’re going to take you through three ways they’ve innovated and adapted to shifts in customer preferences, supply chains and trends.
The great Brazil nut shortage of World War II
During World War II, shortages made Brazil nuts – crucial to the original The Purple One – unavailable. But even back then, The Purple One was a fan favourite. Instead of removing it from the mix, they innovated, swapping in hazelnuts as an alternative.
The swap worked so well they stuck with it! A perfect example of how they solved a supply chain disruption and also maintained customer satisfaction all at once.
Shape shifting (and the great hazelnut shortage of the 2020s)
In recent months, the price of cocoa has gone up. In response, Quality Street have altered the shape of The Purple One and the Orange Crunch to make them slightly lighter – keeping the focus on quality but helping reduce costs and maintain profitability. In addition (and in an ironic turn of events given what we’ve just covered) shortages have pushed hazelnut prices up by 40% in the last couple of years. The need to balance costs and profitability may well have affected the number of The Purple Ones currently included in each off-the-shelf tin.
Sometimes we have to make compromises in our product ranges, to keep them viable. The key is to balance those costs and ensure profitability, whilst also making a product that customers still love and want to buy.
Sustainability initiatives
Controversially (to some), the sweets in a Quality Street tin now come in paper wrappers, in a bid to reduce the environmental impact. There is one exception, though. To keep its quality, the Green Triangle remains in (recyclable) foil. With this approach, you can see how they’re balancing functionality and sustainability.
The paper revolution didn’t stop with the wrappers, though. Last year, they trialled a paper tub, complete with a marketing campaign fronted by Judge Rinder. This innovation helped them to stand out against the competition and really got people talking about the brand. And to keep the part of the customer base that still really wanted a tin happy, the tins are still available to buy as a limited edition.
How this works in your business
This lesson is all about riding the waves of the sometimes turbulent business world, rather than letting them drag you under. When you have strong data, you can make strong decisions that help you weather those storms in a way that keeps your customers’ preferences AND profitability happily balanced.
If you fancy giving this a go for your business, you’ll love our free guides. They take you step-by-step through tasks like setting your pricing, planning your range, working out your overheads and more.
Want to know what else we can learn from a box of Quality Street? You might like our earlier posts in this series:
· How to perfect your product mix
· How to use data to drive decisions
