From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
We are living in unsettling times of rapid change, magnified by news cycle drama.
Maybe it’s the latest natural disasters or the uncertainty of international conflicts. Or closer to home, aging parents, unexpected expenses, or just trying to open a new bottle of aspirin, life can seem more out of control than normal.
This anxiety and frustration can be unsettling to many folks, some of whom undoubtedly are your customers.
And frankly, as the frustrations grow of having less control, some people will seek more control wherever they can.
Where would that be? That’s right. Your stores. You and your staff must be ready.
“Give the customer what they want” has been a long-standing directive in retailing. Especially for today's customers, it's not about price or selection. What customers want today is control. Many consumers will turn with a vengeance to a new kind of “retail therapy”.
Shopping is one place where they still are in charge!
But it's not how much merchandise they acquire; it's how much control they can exercise.
How might you and your stores be better able to serve these seekers of "retail therapy"? Here are some ideas for you and your staff to consider:
Choose and use technology that gives your shoppers more control (versus just having the gee-whiz “latest technology”).
Be more willing to explain “why?” There are reasons behind your careful editing of assortments (or what’s known today as “curating”). Explain how the merchandise in your stores meets your standards. (And why you don’t have everything that is available on the web.)
Be ready; some customers will abuse this power. They can be rude, or leave merchandise on the fitting room floor, or challenge return policies. It is important to avoid a tug-of-war with such customers. They want less confrontation!
Today's new "retail therapists" – that is, those retailers who understand and cater to customers who want more control – will be better able to weather today’s tumultuous times. And to help their customers do so as well!
You've seen all those comments, right? All the dire news about the demise of retailing?
It was 20 years ago this week that Amazon went public. Twenty years. And now they are valued at twice the value of Walmart.
As an independent retailer, this is certainly not news to you. The domination of retail first by Walmart and then Amazon is all-too-well known.
Look, we are not fond of what Amazon has done to independent retailers. But, we were struck by a comment by Jeff Bezos in a 2013 interview with Charlie Rose which we had missed earlier.
Increasingly we hear about customers who – after spending time on Amazon – come away rather frustrated.
And we've begun to wonder, do shoppers really want to choose from all the choices arrayed on an Amazon page? And do all the homework?
Or are they becoming overwhelmed?
What especially intrigued us, however, is this new feature Boxed has announced: group orders.
Customers can now do a group order online by sending links to others to collaborate on an order.
"Are retailers eating themselves alive?"
That was the provocative headline we recently saw.
Then this followed: “Retailers' rising e-commerce sales are taking a big bite out of their brick-and-mortar revenues – a wide-ranging problem.”
Other pundits we've seen call it “an untenable dynamic for these retailers.”
“Huh?”, we scoffed, as we read this about major retailers.
The definition of retailing is “selling to the ultimate consumer.” Why does it really matter whether they buy from you in-store or online?
You've seen them, right? All the stories about how strong this year's Holiday sales are expected to be.
Meanwhile, the department stores – Kohl's, J.C.Penney, Macy's – keep reporting sales declines. And malls, seeing less foot traffic and fewer shoppers, are scrambling. So, where will those robust retail sales come from?
REI, the $2.62 billion outdoor equipment retailer with over 150 stores, has announced rigorous new standards...for their suppliers!
Those suppliers who can't or won't meet REI's standards? Their products will not even be considered for REI's store shelves, even if that will affect sales. REI's stated standards are an effort to "match its environmental impact to the values espoused by many of its customers." Or, in other words, REI has chosen to be an agent for the customer, rather than appear as an agent for the suppliers. REI's chief executive Jerry Stritzke calls the standards "maybe one of the most transformative things" the 80-year-old co-op has done. "At some point you get to a tipping point where it's expected by consumers," he added.
Pat Johnson and Dick Outcalt, The Co-Founders of The Retail Owners Institute®, have been called "The Zen masters of retail finance!" Since 1999, they have been assembling their proprietary content into a unique self-help website. The Retail Owners Institute is an unmatched resource that assists retailers worldwide with basic financial training, assistance and easy-to-use tools. Their engaging and empowering how-to resources about the financial levers in retailing are informative, fun(!), and retailer-friendly. Their promise: "Everyone will 'get it'!" Pat and Dick are recognized experts in strategic retailing. Working only as a team – Outcalt & Johnson: Retail Strategists, LLC – they have been consulting, publishing, and speaking professionally throughout North America since 1990. They focus exclusively on retail, or wherever retail is involved. They work with CEOs, CFOs, boards and owners of retail operations, as well as manufacturers or wholesalers expanding into retail. And they also are Retail Turnaround Experts.
Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"