Win At Retail

The retail business isn’t easy. You have competition from mega-stores like Wal-Mart and Costco. Margins are smaller, customers are web research savvy and many products are purchased on the web.

What are some strategies to win in this business? You’ve come to the right page. We’ll discuss ideas for traditional retail sales and ways to win online.

Let’s start with the basics. Customer service. No matter how many times I’ve heard “the customer is always right" or "the customer comes first".......I can't help but get the feeling "the customer can't win."

Consumer surveys clearly state what shoppers want:

• Sell the customer what they want and have it stock when they wanit it. They make the effort to travel to your store...reward them with having the things they want to buy.

• Make it easy to find the merchandise. Don’t make shoppers run through a maze that wraps around escalators.

• Provide information. Have items priced. Must they walk half a store to get a price check on diapers.

• Have friendly, knowledge sale people. No one likes be asked "Can I help you?" But when a customer asks a sales person for help.....let the buck stop there.

I know old retail theory states the more you force your customer to walk around the store to find something; they more they'll buy along their travels. That was years ago. People don’t have time for Easter egg hunts. They want to get in, buy it and get out.

If they leave the store feeling “mission completed”, they'll be back.

If they’re trying to make ends meet, they are value driven. Make sure your products reflect “more for your money.”

One of the best retail strategies I've seen is having small everyday items available on the way to the register...or in reach while I wait. How do I know it works? Cause I buy low cost crap all the time like this.

To win at retail there are five areas your store must be competent in. Let me be more explicit. You must be really good in four areas….but excellent and well known in at least one. Here they are:

• Best Price: If there’s one thing that Wal-Mart is known for, (there are others but I’ve covered that on another page), its price. This cheap retailer is one of the world’s largest company’s.

If you pitch yourself as a discount store let the world know you are cheapest store in town. Of course being the world’s cheapest store demands low-costs behind the scenes. Low rent, low cost labor, low wholesale prices.

Costco stores are designed like a warehouse for several reasons. The interior gives a feeling of “things sold in bulk are cheap” and employees don’t have to unpack or shelve products. That’s a labor cost savings in itself.

• The Largest : This is a tricky one. Being the largest store in town takes some thought.

Being the largest requires you to offer the biggest assortment of merchandise. You have to preen your goods to get the right mix of popular products. Your customer doesn’t need to wade through aisles and aisles of stuff.

To be successful at being the largest you need one more qualifier. You need to be the fastest, the most helpful or the lowest price. Toys “R” Us figured they could be the biggest toy store. But what they didn’t plan on was very slow check-out lines and confusing displays.

Being the biggest doesn’t always mean carrying the largest variety of products to appeal to every possible demographic. Home Depot only focuses on home improvement…..but they carry every imaginable related good.

Realizing their merchandise would need some explanation……their sales staff is very well trained and helpful.

One of the main risks with a strategy like this is betting on the wrong trend. In addition, you have to remain “ultra-cool.” Target achieved a great feat. Not only are they recognized as a discount retailer…..but one that carries celebrity designers. They have great marketing and are even considered hip. Hey. I shop at Target.

• Fastest : Stores such as Walgreen’s and McDonald’s make speed their focus. We all have lives to lead and stores like these know it. If your store has a reputation of speedy service customers will be willing to cut you slack on the customer service angle. An advantage for the retailer is the quicker you serve someone and collect their money…….the sooner you collect more money. Volume does wonder for the bottom line.

If you could put your whole store on the web, would you? No rent, minimal employees, no working during Christmas; it certainly has its appeal. If your retail strategy includes an online component, here are some tips.

• Inventory Light : Stores such as Amazon and iTunes carry a lot less inventory than traditional brick & mortar. 40% of Amazon’s products are stocked and shipped by third party vendors. iTunes? What a setup. There is no warehouse. Just download the bytes.

• Do It Yorself : For online retailers, self-service is key. Customers choose their own shipping method, track their own deliveries and can even see if inventory is available.

• Information :You don’t need a knowledgeable sales force…but customers love to evaluate information. Provide reviews or information about the product or let other customers leave reviews. This establishes a trust and keeps customers in your store longer. Assuming they like to read of course.

• Mass vs. Niche : Serving a niche market will be more profitable in the long term than a mass market. If you sell computers online…..you better be making them yourself in China. For commodity products…….best price wins.

But if you have glow in the dark, worm scented fishing lure …..you have yourself a niche market. Niche products have staying power and can keep you under the radar of competitors.

It’s been said, its better to be a big fish in a small pond than a small fish in a big pond.

Ok, enough fishing references.

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