PERSPECTIVES

Think about the prominent characteristics of today's shopping experience:

• More "self-service" for the customers (that is, less staff on the floor.)
• Self check-out by the customer.
• Reduced in-store merchandise selection; "Just check our website."
• Limited in-store signage or knowledgeable staff.
• Presumptions that customers will search online for product information, reviews, etc.
• Automated, "menu-driven" phone systems replacing "real people."  

Hmm.  

• Are these providing more "convenience" for shoppers?
• Improving their shopping experience?
• Or – just shifting the work to them?!

Convenience Retailer vs. Destination Retailer: Decision Time

Throughout the pandemic, millions of shoppers – including the older Baby Boomers – discovered the benefits of online shopping. Then, as brick-n-mortar retailers scrambled to survive, the increased availability of delivery, curbside pickup, BOPIS (Buy Online, Pickup In Store) and BORIS (Buy Online, Return In Store) was well received by a broad swath of consumers. 

We see that this has brought heightened awareness of two different retail strategies: Convenience Retailing versus Destination Retailing. 

And here's the deal: retailers now must choose either one or the other of those two strategies. You cannot have one foot on the dock and one foot in the boat. You DO have to decide! 

• That uncertain/undecided middle ground is not a viable choice. 
• Those who end up there by default – by choosing to not choose  are on their first step to being former retailers!

It's a given that your sales volume is a very big deal. Granted, you are analyzing it every day. But here's a slightly different approach which you may find very revealing.

Let's start with a couple truisms. The definition of retailing is “selling to the ultimate consumer.” 

Retailing also is having "the right product at the right price at the right place at the right time for the right customer."

But, as retailers ponder how best to manage sales in the current consumer environment, does it really matter whether their "right customers" buy from them in-store or online? 

Actually, it might! And here’s a simple, free "pilot project" to find out a little more.

Are we alone, or have you also noticed it?

Everything seems to be kind of stalled right now. Maybe that's for good reason. Or maybe this period of malaise is a great opportunity for the bold. Whatever, it seems weird.

Look at these examples: 

• Sure, now the Silicon Valley Bank has been sold. Finally. But the fragileness of the entire banking system hasn't been corrected. So, if a retailer needs something from a lender, expect to hear "Let's just wait to see how this shakes out."
   
• On the world stage, all sorts of powerful players are jostling for attention and position. It can be unsettling. Whether it's Russia, China, North Korea, Brazil, Israel or whomever, it's happening daily. And it seems to have many observers saying, "Let's just wait to see how this plays out."

It's that time of year. As you review your Profit & Loss statement for 2022, your thoughts most likely are turning to "How do we make 2023 a better year than that?" 

As we look around, we see a popular cost-saving and productivity-boosting tactic being instituted by many national retailers, shopping malls, and restaurants. They are open fewer hours. 

This offers an opportunity for you to revisit your store hours and employee scheduling practices.  Maybe it's time to consider some changes, if you haven't already.

Start with the mass of data resting comfortably in your POS system. Look for all the reports by the day of the week. (Be prepared; this may require you to gather information from several reports.)

What you are looking for is data such as this by the day of the week:

• Total sales by day of week 
• Total # of transactions (e.g., customers) by day of week
• Total gross margin dollars by day of week
• Hours per day of week the store was open
• Total employee hours and payroll per day of week

The savvy retailers know that now is the time to be putting the finishing touches on – wait for it – being ready for December 26!

Yes, this unique time period between December 26 and New Year's Day is a tremendous make-or-break opportunity. Indeed, many retailers find they net more from this time than any earlier stretch of 6-10 days!

Why? Three main reasons.

First, the many opportunities to reduce expenses "back to normal". Less advertising cost. Less staff. Fewer hours.

For most retailers, especially this year, reducing inventory is priority #1. With talk of a 2023 recession still in the air, lingering inflation driving up costs, and rising interest rates, cash is definitely king this year.

Time to revisit your year-end strategies for meeting your targeted ending inventory on December 31. If you are like many retailers this year, with plenty of merchandise in your stores, you know the challenge:  how best to turn that inventory into cash? Quickly! Especially without looking like a distressed merchant.

Here's one answer for how to do that. Focus on improving the productivity of each shopper who comes to your store. That is, increase the IPTs (Items Per Transaction.) Make it easier, more compelling and more fun for them to buy more items from you. 

Consider this retailer, whose sales over the last 4 weeks are down 12% compared to last year.

Some retailers in this situation essentially freak out. 

But others know to keep asking questions. Before they decide what to do next to fix lagging sales, they want to know "Why?" 

So, here is one way to get to the numbers behind the numbers; to begin to know the "why" of your sales trends.

All it takes is tapping into the data that's already in your POS system, and putting together a little summary tally sheet. Here's one example.