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From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
After watching consumers being riveted on chaotic national affairs for almost a year, we now have put a label on it: “Distracted Customer Syndrome”. And it seems, sadly, to be unrelenting. It started during the 2016 Presidential election campaign. Nothing about that was typical. It made for good television theater, and the networks certainly obliged.
And, we ascribed the sluggish retail sales in the fall to demands of this new American spectator sport.
While the election of Donald Trump as President stunned and astounded many, immediately after, in November and December, retail sales bounced back smartly. The prevailing wisdom was that Republican control of the White House and Congress would be “good for business.” And the uncertainty of the election was over. Ahh, but the spectacle of it all has not abated! Nor has the turmoil.
Uncertainty abounds, especially from a President who prides himself on being “unpredictable.” Not to mention Congress, Cabinet officials, and federal agencies. All of the uncertainty and the daily theater tends to erode consumer confidence. And since consumer confidence is, in our view, THE leading indicator of discretionary consumer spending, retail sales are being impacted.
Shoppers exhibiting “Distracted Customer Syndrome” are spending much less on discretionary items.
Their time is still being consumed by this new spectator sport.
Is there a remedy to this Distracted Customer Syndrome? We don’t know. But we are concerned.
But, we have to believe that there will be some resolution. Once that occurs, and the uncertainty has been tempered, consumer confidence very likely will be restored. Meanwhile, stay strong!
In today’s seemingly chaotic retail environment, much is being said and written about the importance of good customer service. And there are many suggestions on how to do it. The Retail Owners Institute asks the question, “Good customer service? Of course. But, for which customer?” Consider, for example, how different lifestages can create much different expectations for “good service”.
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.
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.
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.
We recently learned of a pizza parlor in North Carolina that has a kids menu that is quite unusual. Of course, having a kids menu is not unique. But here's what IS unusual about this one! (And it just might inspire you to think of new ways to show your customers that not only are you listening to them, you actually are hearing them!)
Running retail businesses these days is a lot like teaching a teenager how to drive. "Look son; keep your darn eyes on the road!"
Predictions by the "experts" tell us that the economies of the world are remarkably strong right now. And given that, retail sales this year are expected to be up between 4% and 5%. Maybe the best year in a generation!
It's a time when independent retailers could – and should! – "Go for the gold!"
All they have to do is keep their eyes on the road.
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!"