From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
Quick: Who are your major competitors? Amazon? Target? Wal-Mart? Other specialty store retailers in your market?
Yes, all those and more.
But, what about the "stealth competitors" affecting every retailer – whether you are selling apparel, furniture, motorcycles, books, smart phones, or whatever? Stealth competitors; they are out there.
These competitors are hiding in plain sight. And, in our view, they significantly impact – and reduce – retail sales by skimming off discretionary spending.
What are they? The monthly recurring charges that support our digital lifestyles. Most of them didn't exist a decade ago.
Just think about it:
There are the monthly cell phone data plans, for every member of the household. (Yes, even the grade schoolers. And, maybe even Grandma & Grandpa.)
Then, the monthly cable or satellite TV charges.
Plus, the monthly charges for high speed internet access in your home.
Of course, there are the monthly charges for "streaming" online entertainment services, such as Netflix, Amazon, now Wal-Mart, and others.
And, monthly online access to newspapers, magazines, etcetera
We call these kinds of monthly expenses "the enablers" of our essential digital lifestyles. They also are "creepers"; they tend to just keep rising.
And for retailers, each one represents a major "stealth competitor!"
For many households, these monthly charges can add up to hundreds of dollars! And today, essentially no one can avoid them; they are treated like another "utility" charge. Is it any wonder consumers feel like they have less "spending money?" (And they are right!) Erosion of "Retail Spending" All of this connectivity comes at a cost to retailers. Money that is being dedicated to these monthly enabling charges is not available to be spent "at retail." Traditional "disposable income" is significantly eroded. And that happens every month, essentially out of sight. And to almost every household. What does this mean for retailers? "Know your competition" is more complex – and more important – than ever. Every retailer is affected!
Used especially by large national chains, it applies technology to accept or reject attempted returns.
Have questions about your return being denied? The store employee directs you to contact the return authorization service.
Well, that's one way to handle returns, isn't it? And it may be very appropriate for large national chains that are particularly susceptible to fraud or so-called "returnaholics."
But for local retailers, return policies are one of the most complex management issues in retailing.
A data analytics firm has identified four types of holiday shoppers, and advises marketers to have an appropriate strategy for each one.
Well, of course, none of this is news to retailers! But we think it could make a good topic for your next manager’s meeting. (And, it might be news to some of them!)
You've heard of Comic-Con, right? It began in 1970 in San Diego to celebrate pop culture, from comic books to films and science fiction/fantasy literature. It has since grown into an extravaganza attracting 130,000+ costumed fans, industry professionals, Hollywood types, vendors and spectators.
Or, as Patricia Vekich Waldron, the CEO of Vision First observed*, "After nearly 50 years, Comic-Con has turned in many ways into the ultimate pop-up store."
And she challenges retailers, developers and brands to "pay attention to how Comic-Con continues to captivate and delight its fans."
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”.
Doing retail has always been a challenging and fascinating and evolving exercise. As the old Chinese proverb states, “It’s easy to open a store. However, it’s tough to keep it open.”
And today, seemingly more than ever, people are drawn to retailing. Consider:
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!"