Wholesale retail outlets like Dach have become the latest in a growing list of retail chains to go through the transformation of their business models.
They will now be subject to strict corporate governance standards and will be regulated as a trade organisation, which is expected to increase competition and drive up profits.
Wholesale retailers will now have to be independent, but independent is not necessarily synonymous with a fair business model.
The new rules mean that wholesale stores will have to adhere to “the highest ethical standards of our business and, to ensure a level playing field for all, will be required to register with the Office of Fair Trading (OFT) and its independent auditor.”
The rules will also allow the OFT to inspect wholesale stores and, where appropriate, the franchisee.
And the new rules will force wholesale retailers to follow a number of business practices and, in some cases, to take measures to reduce their environmental footprint, including buying from suppliers that do not use mercury, as well as using environmentally friendly materials.
“Wholesalers will also be required by the OCT to publish their environmental impact statement, in accordance with the OHT, on their websites, and in any other form, such as on their business cards or social media platforms,” the regulator added.
This will require them to publish the full cost of any environmental impact they have on the environment, including the amount of mercury used in the supply chain, and the source of the mercury, which will also have to appear on their environmental statement.
What will this mean for people buying clothing online?
There are a number other changes to the rules that are likely to see people making the switch to online retail.
“The rules mean, in the UK, that we will now see more opportunities for consumers to shop online.
The number of online stores will rise by a third and the number of outlets that will be allowed to operate will be increased by two,” said the OBE, the UK’s watchdog for retail standards.
There are also new rules to protect shoppers from unfair competition.
As part of the new business model, suppliers will be prohibited from charging a higher price to a retailer than the one that is offered to them.
The new rules also mean that they can’t compete with other online retailers on price.
“Consumers will have the same choices in terms of the way they shop as they do in terms the way that they buy things online,” said Andrew Wiles, director of retail and retail services at consumer advocacy group Choice.
So, what’s going on with online shopping?
“The new retail rules will make it easier for shoppers to shop in a fair and transparent way, and that is going to help make the UK the best place to shop and buy goods online,” he added.
“People will be able to shop for the products they need to do their everyday daily tasks and will not have to compromise on quality.”
We are also seeing increased consumer confidence in shopping online, and shoppers will be more willing to buy online.
We also know that online shopping is good for our economy as it means fewer people shopping in store.”
So, are these changes a good thing?
Wholesaler turnover in the EU has been increasing since 2010.
In the UK there was a drop of 8.7 per cent in retail turnover in 2017, which fell to a year low of 3.6 per cent.
The change to the Retail Code and the regulation of wholesale retailers are key measures to improve the retail environment in the digital era, which, if adopted, will see a dramatic improvement in customer experience and sales for all,” the BRC said.