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Patricia M. Johnson & Richard F. Outcalt
Retail Strategists and Retail Turnaround Experts
Co-Founders, The Retail Owners Institute® • Business Strata:G®
That is the provocative title of an interesting New York Times Guest Essay* by Bill Saporito, editor-at-large at Inc.
"Starbucks says there are more than 170,000 possible drink combinations available, but outside estimates have put the number at more than 300 billion. And,” he laments, “the person in front of you always seems to be ordering 100 million of them.”
"Companies have always had to deal with choice and customization versus the complexity that comes with it. But we know that too much choice can be paralyzing," Saporito writes.
Saporito’s message is very relevant as the Holiday Season approach. To reduce the paralyzing effects of too much choice, now is the time to finalize your merchandising strategies.
And here’s the key: focus on the solution that each item delivers.
Remember, many of your Holiday Season shoppers are not your regular customers, but people buying gifts for your type of customers. These Holiday shoppers may need a lot of help navigating your store.
Look, it’s now October. This is your merchandising opportunity. And now is the time to start getting ready.
In-store, use your graphics, signage and displays to make it easier for shoppers to recognize appealing solutions to those hard-to-buy-for people on their lists. Carry over these themes to your advertising, social media posts, website, etc. Start now to talk this up with your staff.
Attract shoppers to "Gifts for Foodies" or "Best For Family Travel" or "Kid-Approved" or "Self-Care."
Display your merchandise as Good - Better - Best options (especially useful for bundles)
Or, separate merchandise as best for Newbies, or Enthusiasts, or Thoughtful Upgrades, etc.
Group merchandise by most likely recipients: Gifts For Her, Gifts For Him, Gifts For Them, etc.
Consider the circumstances: "Stocking Stuffers"; "White Elephant Gift Exchanges"; "Day Care Teachers"; "Dog Walkers."
Here’s another reason to start now to develop your merchandising strategies As you think about these merchandising themes, you may spot some gaps in your assortments. Now’s a good time to know that, isn’t it?! You may need to make some special buys quickly.
Again, the purpose is to protect your shoppers from being overwhelmed by choices. Instead, you are showcasing your thoughtfully-selected gift-giving solutions.
Your goal: enable each person who buys from you to have confidence that they have made a fine choice. After all, especially in these times, reassurance can be a priceless gift.
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* Guest Essay: Starbucks and the Curse of the Highly-Complicated Coffee Order. The New York Times, August 25, 2024.
“The mood of American consumers continues to brighten,” noted Chain Store Age* on September 27.
In our view, consumer confidence is a key “leading indicator” for retailers. These improvements in consumer confidence are particularly well-timed as we head toward the Holiday season.
“Consumer sentiment extended its early-month climb, rising 3.2% in September to 70.1, according to the University of Michigan’s Index of Consumer Sentiment. It’s the highest level in five months.”
“The expectations index is now 13% above a year ago and reflects greater optimism across a broad swath of the population,” said Joanne Hsu, surveys of consumers director. “While sentiment remains below its historical average in part due to frustration over high prices, consumers are fully aware that inflation has continued to slow.”
In a similar vein, Ruth Simon of The Wall Street Journal reported “Rate Cut Jolts Entrepreneurs to Spend Again.”**
“A tire seller will open more stores. A maker of gun safes plans to boost advertising. A candle maker is looking at taking out a $20,000 loan to expand for the holidays.”
“Some small-business owners expect lower rates to boost consumer confidence and, with it, demand.”
“Thirty-two percent of entrepreneurs surveyed in September said they expected overall economic conditions in the U.S. to be better during the next 12 months, the highest share since August, 2021.”
The most positive outlook in three years? That IS promising, isn’t it?
* "Consumer sentiment rises for third consecutive month", Chain Store Age News Briefs, September 27, 2024.
** “Fed’s Rate Cut Is Jolting Small Business to Spend Again.” Ruth Simon, The Wall Street Journal, September 26, 2024.
Do you know the 25 "details" that every shopper is using to evaluate your stores?
Or, how about this: Do you know how to "see what they see?"
In this week's insightful and immediately useful TOPICAL TUESDAYS Webinar of the Week, Pat Johnson and Dick Outcalt, the Co-Founders of The Retail Owners Institute®, will cover all of this, and more.
First, they identify these 25 "details", and how to evaluate each one of them.
Then, they show how you – and your staff – can see your stores how the shoppers do. (Yes, once you do that, there will be surprises!)
Plus, see The ROI's innovative, automated and free STORE RATER tool. Usable from your laptop, tablet or even a smartphone, it makes the Store Rating process fast, engaging - and fun!
It lets you rate each “detail” on a scale of 1 to 5; then it tallies them by category.
At a glance, see each store’s strengths, and, easily identify areas to improve.
Plus, it offers a fine training opportunity for your key staff people!
Today's customers are very quick to share their opinions about your stores, thanks to the megaphones and bullhorns of social media.
Your stores are talking; better know what they are saying!
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As Amazon's second two-day Prime Day of the year approaches – this one is October 8 and 9 – retailers from all segments are wondering (or being asked): "So, how do you compete with Amazon?"
Our response? You don't, at least not directly. Not on their turf.
Look, independent retailers do have many strategic advantages over Amazon. Your challenge – and opportunity – is to recognize them, and enhance them at every opportunity. Here are some ideas that you may want to consider to allow you to compete on your terms.
No more attempts to be all things to all people. Instead, focus on the portion of your market – and the customers – that are most profitable for your operation. (Go here for more about that.)
Remember that life stages (presence and ages of children in the household) drive buying decisions. Shoppers from which lifestage are most profitable for your stores?
Amazon can certainly undercut any and all competitors on price. And being asked by would-be customers to "match Amazon's price" is not going to end well.
But, you do have the opportunity to trade up.
Sell on quality; and serve those customers who value quality.
Give yourself permission to say goodbye to the price hounds who only want the lowest price.
Now that you have a focus on your key customer segment, what else might those folks want to buy from you? Consider adding appropriate complementary products.
Coordinate with other retailers in your segment – whether through a buying group, a trade association, or another group – to develop private label merchandise. This offers all those participating retailers a unique sales and margin opportunity. And once this product line is in place in your stores, you may find that it prompts a bit more respect from your other vendors.
Your goal is to get people into your store, right? Then, use your website/web presence to make that easy for them.
We think it is essential that your website and other online presences "do justice" to your store, especially the richness of the experience of shopping with you.
Give your customers a way to do their online research before they come in, to know what's special about your stores, and why they should experience it for themselves.
Showcase your people.
Showcase your merchandise, the stories behind it and why you have selected it.
Have your website reflect that warmth, the customer focus, the "let's find a solution" attitude of your stores.
In retailing, one must win both the minds and the hearts of the shoppers. In that race, independent retailers can have a decided advantage over Amazon.
You’ve got it. Now flaunt it!
Inventory Control
"Okay, I have my buying plan for each department from The ROI's Multi-Department Buying Plan Calculator. I'm off to the buying show, and placing orders online too. How do I keep track of my orders with all those vendors, so I can stay on plan?"
Here's a tool that can help.
The ROI's BUYER'S TALLY SHEET lets you and your buyers easily track orders by vendor by the month they are to be received.
It provides a quick, perpetual reference of orders vis-a-vis departmental buying budgets.
Just follow 4 easy steps, add a bit of arithmetic, and put yourself in control of your inventory!
Go here to find out more about this practical, empowering tool. Available FREE from The ROI.
Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"