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August 2009
Are you doing the same things
and expecting different results?
When the economy was strong and sales increases common, the
smart thing was to continue doing what drove those increases.
Over the last year, most astute retailers have retooled and
refocused their businesses in order to deal with the profound
changes in the economy, the marketplace, and consumer buying.
Yet, other retailers have done little to adapt to this new environment.
Neighborhood marketing guru Tom Feltenstein and Mac Anderson
wrote a terrific little book a couple of years ago--Change Is
Good...You Go First. The book, which is available at
simpletruths.com, lays out the case for change in a
straight-forward way empowering anyone to make real changes in
their business.
Why is it so important to make changes in business now? The
reasons are diverse and reflected in the weighty challenges
retailers face right now. Many years ago Albert Einstein
suggested three rules for work that can still be applied to
nearly every business today.
Out of clutter, find simplicity.
From discord, find harmony.
In the middle of difficulty lies opportunity.
It seems most difficult for larger enterprises to shift gears;
being married to their own culture and way of doing business to
the point real change is nearly impossible. Look at General
Motors and other giants that simply couldn't do what was
necessary to reinvent themselves before declaring bankruptcy
became their only option. But it's not just industrial giants
that have this problem. Far too many retailers of all sizes
refuse to accept the fact we are living through a fundamental
shift in consumer thinking, spending habits, and the competitive
landscape. While some of these changes have only become evident
over the last few months many have been coming for several years.
One community that's seen the effect of change or lack thereof is Richmond,
Virginia. Ukrop's Supermarkets opened in 1937 and now operates
28 stores in Richmond and other towns in the state. For a long
time, it was leading supermarket chain in the marketplace.
Recently Ukrop's lost that lead to Food Lion, headquartered in
Salisbury, North Carolina.
Retailers have long understood the absolute importance of
making it easy and convenient for customers to do business
with their stores, yet Ukrop's remains closed on Sundays. Other
retailers in many categories have added alcohol to their merchandise
selection, yet no alcohol is available in Ukrop's stores.
The family's strong religious beliefs dictate these policies.
While I respect their beliefs, I question their business
judgment and understanding of the diversity of customers living
in a city like Richmond. Customers expect and deserve convenient
shopping and the best selection, so operating a broad-based
business around religious beliefs does not serve anyone's best
interests.
My earliest retail experience was working at a music store in my
home town of Sacramento, California. My employer, Maurie
Silverman, was an Orthodox Jew who left the store well before
sundown Friday afternoons and didn't return until after sundown
on Saturdays. While he observed his Sabbath, I and the other
employees operated the store and served the many customers who
would come in on busy Saturdays. He strongly believed that every
customer should be served well regardless of his own
personal religious beliefs. His was a more reasonable approach
to doing business.
As this is written Ukrop's is up for sale with the likely buyer
being either Harris Teeter or Supervalu.
Are you doing things that limit your opportunities? If so, make
the necessary changes to move your business forward and better
serve your customers and your community.
HOLIDAY 2009
Retailers in every area of the country and in every category are
finalizing plans for the holiday season. The key this year will be how
effectively retailers manage their inventories. Too few
of the right items and sales will be lost. Too many of the wrong
items and dollars will be lost to late- and after-the-season
discounts.
In past years, aggressive promotions driven by specially priced
merchandise helped merchants get customers through their doors
to buy the promoted items and more. It will be interesting to
see just how much customers will buy this year. Most consumers have
been cautious with the extras during the back-to-school season
leaving most of us to believe they will be the same during the
holidays.
THE NATIONAL RETAIL FEDERATION'S HOT 100
Every year the NRF identifies the Hot 100 retailers for the past
year that have grown due to acquisition, opening a lot of new
stores, or growing sales by making significant productivity
changes in their existing stores. The problem I have with this
list, as opposed to the NRF's other annual retail lists, is the
inclusion of restaurant chains. Don't get me wrong, restaurants
are an important part of retailing, but how can we compare
restaurants, online merchants, and traditional stores with
any clarity.
High growth companies with traditional retail stores on the list
include American Apparel with an increase in overall sales of
57.6 percent, Apple Stores with a 46 percent increase, and
O'Reilly Automotive increased sales 41.8 percent. Among the
surprising growth retailers on the list is Lumber Liquidators,
the company that sells hardwood flooring. In an environment
where most everyone in the home improvement business is
suffering, Lumber Liquidators' sales grew by 19 percent. Another
surprise was Jos. A Bank Clothiers with a 15.2 percent sales
increase in the middle of a very tough menswear sales
environment.
Until next month...
Rave Reviews for George Whalin's New Book:
RETAIL SUPERSTARS: INSIDE THE 25 BEST
INDEPENDENT STORES IN AMERICA
"George Whalin's passion for retailing shines through on every
page of this terrific book as he takes readers on a magical tour
of the 25 greatest independent retailers in America. If you're
in retail, Retail Superstars is must reading. If you're not,
you're going to love the ride."
--Bo Burlingham, Editor-at-Large, Inc. magazine and author of
Small Giants: Companies that Choose to be Great Instead of Big
"What can I say? I simply love Retail Superstars! While it is an
incredible collection of great stories of wildly successful
independent retailers, the truth is that a chain-store CEO or
Regional Director, or a Training or Accounting Department boss,
can learn invaluable lessons from these pages. Bravo to George
Whalin for a superb job!"
--Tom Peters, Business Guru and Best-Selling Author
You can order your own copy of Retail Superstars at
retailsuperstars.com.
George Whalin's Newest Presentation...
It is always a challenge for independent retailers when
consumers cut back and limit their spending as they do during a
recession. Yet, in the middle of one of the most severe economic
downturns in memory, there are independent retailers who are not
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more successful business can learn some extraordinary lessons
from these superstar independents.
George Whalin's new book Retail Superstars: Inside the 25 Best
Independent Stores in America tells the story of 25 stores that
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This unique presentation is jam-packed with the strategies,
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economic times.
Participants will learn how...
--Independent retailers stand-out and thrive against much larger competitors including national chain stores.
--Innovative store design can be used to attract more customers and build a more successful business.
--The right merchandise mix and selection can be the most powerful competitive edge.
--Even the smallest stores can use creative marketing ideas and tools to attract customers and keep them coming back again and again.
--Customer relationship building has become retail's most important and powerful business strategy.
And much, much more!
This is a program retailers won't want to miss!
Whether you're planning a convention, trade show, corporate
conference, or managers' meeting, a presentation by George
Whalin will add value for your attendees. Check out George's other
presentation topics at whalinonretail.com.
If you have an opinion or thoughts about any of the topics
posted, I invite you to comment at retailerblog.com It's easy to
do. And if you have a topic you would like to see addressed on the blog, send me an e-mail at george@whalinonretail.com.
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should read as follows: Copyright 2009. Reprinted with
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