From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
"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?
Moreover, our rant continued, retailing also is having the right product at the right price at the right place at the right time for the right customer.
If that "right customer" wants to buy online instead of in-store, kudos to the retailers who figure that out!
But then we paused. Maybe there IS something to be considered here. Something about the focus on that “right customer.”
Easy – and Free – In-House Study
So, here’s a simple, free project to try. Choose a short period of time, like one month, to try it out. Just gather your sales data for that past month.
A. Make a simple tally sheet of two columns. One column is for In-Store sales, the other is for Online sales. Then, for each sale over the past month, enter these bits of info into the appropriate column on your tally sheet:
Total dollar amount of the sale
What they bought (by major merchandise category)
B. Next, add it up.
Get a total dollar amount for each column.
And, maybe a total dollar amount for each merchandise category in each column.
C. Look for the patterns.
And the surprises (yes, there WILL be surprises!)
D. Then, consider what that might mean for your stores. (This is a great time to involve your key staff people as well.)
For instance, it may confirm the purposefulness of your shoppers. Do they seem to have a clear idea of what to buy from you online, and what they prefer to buy in-store?
Or, maybe it will illustrate how you have two very different kinds of shoppers. One group likes to shop in-store; another likes to shop online.
Hmm. Would that make any difference in your operation? Should it?
For instance,
Does each group demand/deserve different merchandise mixes?
What will it take to grow sales from each group?
Should one group have priority over the other?
Will you need other vendors?
Different marketing programs?
Or…? Or…?
Or, maybe it's telling you about your merchandise mix.
Some merchandise might be better suited to online shopping.
And, how might the merchandise your customers seem to prefer to buy in-store be presented more effectively?
Fun, isn't it?
We think this exercise will stimulate the merchant thinking for you and your people.
Is "Cannibalizing" a Concern?
Should you be concerned about “cannibalizing” your business by offering products online? We doubt it, but you should find out for yourself! Here's how.
Sales ticking up? Here's why – and how to pick up the pace even more
Have you noticed? We may be making progress in this economic turnaround. Many retailers now are being buoyed by upticks in sales.
Aside from being relieved, have you given any thought to "Why?" your business is experiencing sales increases?
We can tell you in advance: it will be driven by one of these three basic reasons:
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.
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.
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!!
A new consumer confidence study based on monthly interviews with 9,000 respondents (versus the 500 or so polled in the University of Michigan consumer sentiment study) finds that the the key difference/predictor in people's attitude about the economy (and shopping!) is their political views. That's right. What seems to matter more today may not be whether you're in a mall or strip center. When it comes to location, apparently what really matters is, Red State or Blue State?
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?
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!"