From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
Every minute, some shoppers in your market are checking the weather forecast on their smart phone.
But here's the deal: Immediately, that inquiry is being captured by The Weather Company, which now turns this mass of Big Data into usable information (that it sells, of course.) And here's what that means for those smart phone users:
Consumer products companies buy certain weather characteristics: temperature, humidity, etc. Then, when consumers are checking their weather app, they see ads most relevant to the weather in the ZIP code they are checking.
Hot and humid? See an ad for a frizzy-hair-taming product.
Low humidity? See a volumizing hair product.
(That's called getting the right product to the right customer at the right time, right?)
"The old paradigm of business and weather was cope and avoid. With technology, the paradigm is now anticipate and exploit," says Paul Walsh of The Weather Company.
Hmm. It's still true; we can't do anything about the weather. And accurately predicting the weather continues to be a challenge.
But what IS predictable? How people react to the weather. And, without having to stalk customers on their smartphones, we think there may be ways to apply these notions in your own stores.
For example, Michael's Stores, the crafts people, discovered that their customers shopped more not on rainy days, but when rainy days were in the 3-day forecast. You know, preparing for "rainy day" projects!
Why be content to just talk about the weather? Why not make it actually work for your stores?! Could make for some fun brainstorming sessions at your staff meetings.
Think about what weather patterns might actually influence your sales.
Then, find some ways to be proactive about it. All to your advantage!
Or as the Weather Channel guy says, don't just "cope and avoid;" "anticipate and exploit!"
The National Retail Federation sponsored a survey in early May of retail small business owners across the country (those that meet the SBA definitions for employee size and revenue.) Contrary to the doom-and-gloom of the "Retail Armageddon" stories, this survey confirmed that retail owners are optimistic and looking to expand.
Few believe their business will be in worse shape in 12 months;
Nearly half expect revenues to increase;
Many have goals for expansion or implementation of new technologies.
Considering a multi-store launch?
Opening additional locations?
Testing a new retail concept?
Launching a robust e-commerce site?
Any one of these approaches to growth requires that you develop your plans, explore real estate or web hosting opportunities, evaluate systems, identify mid-management talent, line up financing, and so on.
But wait! Before you get too far down the road on any of these areas, you first must decide: What is your fundamental growth strategy? That is, HOW do you want to grow?
The ROI NEWS asked retailers this question about the effectiveness of Social Media: “Does it raise sales?!”
We invited retailers to take a short, quick, 6-question survey about their use of promotional tools in general, and, in particular, “Social Media”: Facebook, Twitter, Pinterest, Instagram, LinkedIn, Other.
We asked, and you answered!
You quickly confirmed that “social media” is in fact a hot topic among retailers!
And, you are willing to share your experience with it with others, and for that we say, Thank You!!
How to deal with the turmoil and stress of today's retail environment?
Recent strategic changes by two global firms – McDonald's and 7-Eleven – offer good reminders for us all.
Each of these long-established businesses dealt with their growth challenges first by listening to their customers (using good data analysis and research).
Then, what they chose to do next offers some "food for thought" for all retailers.
How important is it to have - and brag about - a “free and easy” return policy?
That is an issue that vexes many retailers.
Processing and handling returns can be costly and time-consuming.
But, there also are "costs" associated with more restrictive return policies.
A two-year study comparing return policies of two similar retailers offers some new insights.
You’ve heard about the robust sales numbers on Thanksgiving Day and Black Friday, right? Now ICSC – the International Council of Shopping Centers – has sponsored a research survey about Thanksgiving Day and Black Friday to delve into them a bit more.
And what they found sure surprised us. For example, who were the biggest fans of physical retail and shopping centers? Millennials. Yep, those "digital natives", folks ages 18 – 36 chose to make their purchases from physical retailers (or through websites operated by physical retailers) rather than shopping pure online retailers such as Amazon.
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!"