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December 2007

The End of Another Year

At the beginning of 2007, most of the experts predicted a difficult year for retailers. It turned out consumers continued to spend at a steady rate even though it wasn't quite the same as they had done in previous years. In a few days the nation's largest publicly held retailers will report their December sales. As it has been throughout the year, some will report solid increases over last year and some will report disappointing numbers. Early indications point to poor results from department and apparel specialty stores. It looks like luxury goods and some electronics retailers will report a sales increase for the holiday shopping season.

I suspect many retailers will look back on Holiday 2007 and ask themselves whether they discounted too much or not enough. Whatever the answer, we're probably going to continue to see aggressive pricing as the dominant method for getting customers into stores during the holidays.

Using low prices as a competitive strategy continues to be a highly flawed way to sustain a business. Those retailers who choose to distinguish themselves from the competition by providing a great shopping experience, unique merchandise, interesting stores, and helpful associates tend to be far more profitable and sustain their success year after year.

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New York City at Christmas

For the first time in my long career I had the opportunity to spend a couple of days in New York City the week before Christmas. Most big cities go all out to decorate for the holidays and create a festive atmosphere in their downtowns. But there's nothing like New York City with stores all trying to outdo each other during this important season.

While Macy's and Bloomingdale's windows were artfully decorated, I was particularly impressed with the elegance and beauty of the windows at Bergdorf Goodman. The animated windows at Saks Fifth Avenue also were fun and drew large crowds of onlookers.

Bergdorf Goodman Windows (click photos to enlarge)
Saks Fifth Avenue Windows (click photos to enlarge)

Throughout the city there are exceptional retail stores, but Fifth Avenue with its grand department and specialty stores certainly is among the city's most popular attractions. Owing to the disparity between the value of the dollar and the Euro and other currencies, the number of foreign tourists in the city for the holidays this year was astonishing. It was interesting to hear the variety of languages being spoken on the streets.

I saw two particularly spectacular exterior decorating achievements. One was the Cartier store at Fifth Avenue and 52nd Street. The ground floor was covered with greenery and lights and the upper five floors were actually wrapped in fabric. I would have liked to have seen how they did that. The other was Saks Fifth Avenue's large lighted snowflakes hanging on the front of the building that came to life in the evening.

Cartier	Saks Fifth Avenue

I also enjoyed seeing the interior of the Saks store as well as the beautifully appointed interior at the Henri Bendel store.

Saks Interior	Henri Bendel

Among the most popular new stores in New York City are the flagship stores from such major electronics companies as Apple, Nokia, Samsung, Sony, and Nintendo. In next month's newsletter I'm going to write extensively about the Apple stores in New York and how Apple stores across the country have become so successful.

NINTENDO WORLD

Among my favorite stores operated by an electronics manufacturer is Nintendo World in the Rockefeller Center area. As consumers all over the country have searched for the company's Wii game and other Nintendo games, the store has become a magnet for shoppers young and old.


One of the coolest things in this highest of high-tech stores is the interactive video at the front allowing visitors to carry on conversations with Nintendo's Mario character. I stood by and watched an 8-year-old boy talk with Mario about how much he liked to play video games. Mario asked where he was from and which were his favorite games. The adults were all pretty much dumbfounded by the technology, but the boy seemed to find it perfectly normal to carry on a conversation with the cartoon character.

The round corral in the middle of the store is a very popular place for children and parents to try out the different games made by Nintendo. All the seats were taken during the 45-minutes I was in the store.

FINAL THOUGHTS

If there was a Superbowl of retailing, it would be New York City at Christmas. Each store is more spectacular than the last. Associates seem to be excited about serving customers and the atmosphere is festive, exciting, and fun. Who could ask for more?

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Down to the Wire...

As this is written Macy's has announced they will close nine of their stores because of declining sales and little opportunity for improvement.

The US Census Bureau reported today the population on January 1, 2008, is estimated to be 303,146,284, an increase in nearly 3 million people since the first day of 2007.

Let's see, Sears reported net income of $2 million for the third quarter compared to $196 million for the same period last year. Since they can't quite figure out how to run Sears why would they want to buy Restoration Hardware?

Some in the media are reporting that online retail sales for the 2007 shopping sales are disappointing because the increase was only 22%. Last year online sales increased by 25%. Hmmm, what exactly is so bad about a 22% increase in a year when most retailers would be thrilled with even a 10% increase?

Wishing you a happy and prosperous New Year!

Until next month...

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Seminars and Training Programs for Managers and Associates

Delivering performance-enhancing speeches and seminars for retailers since 1987, George jam-packs his presentations with practical, real-world information. His seminars for managers and associates teach store management skills, customer service improvement, and sales techniques. If you want to improve store productivity and profitability, we encourage you to call George Whalin. Don't wait, his calendar fills up quickly.

Topics for managers' meetings and corporate conferences:
(Click on a topic for details)

Great Store Managers Make Great Stores!

How to Find an Eagle in a Flock of Turkeys! Finding, Hiring, and Keeping the BEST Retail Employees

Customer Focused Selling

Every Customer Every Day!

For more information go to our web site or call 800-766-1908.

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Speeches and Seminars for Retailers

As one of the nation's best-known and most popular retail speakers, George's speaking schedule includes events for retailers and consumer products manufacturers all across the country. He's added some exciting new convention and trade show topics. If you are a meeting planner or are involved with speaker selection and would like to book George for your next convention, we encourage you to call as early as possible. George's calendar fills up quickly.

Topics for conventions and trade shows:
(Click on a topic for details)

Retail Success! Increase Sales, Maximize Profits, and Wow Your Customers in the Most Competitive Marketplace in History

Into the Future! Powerful Trends Shaping the Future of Retailing

Stop, Look, Touch, and Buy: The Dynamics of Merchandising

12 Powerful Advertising Secrets Every Retailer Should Know

Power, Punch & Pizzazz! Create Advertising that Grabs Customer Attention and Sells More Merchandise

Customer-Direct Marketing: Increase Retail Sales with High-Impact Direct Mail & E-Mail

Double Your Sales and Triple Your Profits with High-Impact Marketing and Promotions!

Competition? What Competition! Standing Out in Today's Competitive Retail Marketplace

How to Find an Eagle in a Flock of Turkeys! Finding, Hiring, and Keeping the BEST Retail Employees

Every Customer Every Day!

For more information go to our web site or call 800-766-1908.

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Resources for Retailers

George Whalin's book RETAIL SUCCESS! is now in its ninth printing. A number of consumer products manufacturers have purchased the book for their retailer customers. Retailers have provided copies for their managers who regularly refer to portions of the book in their managers' meetings. And managers are referring to the book in their daily store meetings. If you haven't purchased a copy yet, what are you waiting for? For multiple copies, call us for volume pricing. For individual copies, there are also some very good deals to be had at amazon.

Go to our web site today where you'll find several other books in addition to RETAIL SUCCESS that George recommends. Check it out often, he keeps adding to the list.

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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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In addition to speeches and seminars, George also consults with retailers helping them improve the operation of their businesses. His consulting services include helping retailers with strategic planning issues, marketplace positioning, merchandising and store layouts, developing results-driven marketing and advertising programs, personnel management, and improving store performance. If you need solid, practical, proven insights and ideas to grow and improve your business, call us toll-free at (800) 766-1908.

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We encourage you to pass this publication along to your associates and colleagues. If all or any portion of this newsletter is reproduced in another publication, attribution should read as follows: Copyright 2007. Reprinted with permission from George Whalin's Retail Management E-Letter. To occasionally reprint portions of this newsletter one time, no express permission is required. To reprint in more than one venue or multiple articles, please contact us at 800-766-1908 or info@whalinonretail.com.

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