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October 2008

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ARE YOUR MANAGERS READY FOR THE HOLIDAYS? NOT SURE? CLICK HERE.

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Making the most out of Holiday 2008!

In today's challenging economy, it is more important than ever for retailers to build and nurture strong relationships with their customers. Retailers who are able to maximize sales opportunities this year will be those who understand the importance of strong customer relationships and take steps to provide the most compelling reasons for customers to shop in their stores.

When times are tough it would seem perfectly justifiable to cut back on Christmas decorations. The problem is your customers will see that you've cut back every time they come through your doors and may think your business isn't doing well. Elaborate Christmas decorations do several things. They give the store a festive atmosphere. They enhance the merchandise not only to make it look better but also to fill in where quantities may be lacking. Decorations create a holiday haven in which customers enjoy shopping. And finally they show your customers you care about them and their celebration of the season.

I was in a K-Mart store during the holidays a couple of years ago and the decorations were so sparse, one could hardly tell it was the holiday season. It was as though the season wasn't important enough for the retailer to bother.

Special events contribute to the holiday festivities and draw customers into your store. Rather than cut back on the number of events this year, I encourage you to hold more events than ever before. Your events may include special sales evenings for men and women, Santa appearances, local choral groups performing Christmas carols, appearances by local celebrities, and anything you can come up with that celebrates the season and gives customers another reason to come into the store.

One retailer I know plans to hold several "Value Nights" in his stores featuring gift items under $10 one night and under $25 and $50 on other nights. He will have live music and serve refreshments making his Value Nights can't-resist celebrations for customers.

Lean Inventories

While many retailers have been cautious in their inventory buying this year, it's always important to give customers the impression of an extensive selection. Customers want to know they have plenty of choices. So savvy merchants create displays that look like they have more inventory than they actually have. This is particularly important for this season of the year. Get as much merchandise as you can out on the floor rather than keeping it in the stock room.

Well-decorated stores that appear to be filled with merchandise have a much better chance of maximizing sales. Add lots of special events to the mix and you will increase your chances of attracting more customers this holiday season.

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A Sign of the Times!

One of the most certain signs of a shrinking economy and a recession are retail bankruptcies. In a recent visit to a Northern California mall, I came upon two retailers across the aisle from one another holding store-closing sales--Steve & Barry's and Shoe Pavilion.

When Steve & Barry's, the chain best known for its low-priced, celebrity inspired brands, first announced its bankruptcy earlier this year it appeared as though all the stores would be liquidated. An investment firm has since come into the picture and will try and keep a number of stores open in the hopes of rebuilding the company.

Shoe Pavilion, the California-based regional shoe retailer intent on building a moderately priced shoe chain, has long battled larger competitors for the best locations and customer attention. They, too, declared bankruptcy earlier this year in the hopes of cutting down on the number of stores and reorganizing the company. Just last week Shoe Pavilion announced the closing and liquidation of its remaining stores.

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FROM THE SALES FLOOR!
An excellent interview with Best Buy's president and COO, Brian Dunn, can be found on page E16 of the November 3, 2008, issue of NEWSWEEK. The interview provides great insight into the culture at Best Buy. It describes the value he and the other higher-ups place on their associates and customers. As a guy who started his career at Best Buy on the sales floor back in 1985, Mr. Dunn's perspectives on management and leadership should be of great interest to every retailer. The interview along with some video can be seen on the Newsweek web site.

THE STRUGGLING NEWSPAPER BUSINESS
Recently the Audit Bureau of Circulations released circulation numbers for the nation's largest newspapers. Some big city newspapers suffered significant decreases in readership: The New York Times down 3.58%, Chicago Tribune down 7.75%, The Dallas Morning News down 9.28%, The Boston Globe down 10.18%, and the Atlanta Journal-Constitution down 13.62%. If you advertise in these newspapers, I hope you negotiate lower rates based on the fact your ads will be reaching fewer readers.

CLEAN STORES
In a recent study by M/A/R/C Research, as many as 18% of shoppers said they would discontinue shopping at a store if they felt it was not clean and 46% of consumers said they consider a clean environment extremely important when choosing a store. While consumers are particularly critical of grocery stores, all stores can be negatively impacted by an unclean shopping environment.

CHRISTMAS PRESENTS!
Neiman Marcus once again has come up with some spectacular gifts for the giftgiver with an unlimited budget. Looking for something special for the golfer on your list? You might want to consider a backyard golf course custom designed by Jack Nicklaus at just $1 million. And for that music lover? How about a collection of every 45 record listed on Billboard magazine's Top 100 Rock and Pop charts for 35 years ending with 1990. The collection of several thousand 45s costs $275,000 plus shipping.

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Owing to the housing crisis, erratic stock market, diminished investments and 401Ks, rising gas prices, and scores of companies cutting workforces putting thousands of people out of work, consumers have become very cautious in their spending. This affects nearly every retail segment.

Here's the question...

What specific steps have you taken or plan to take in your business to deal with this economic uncertainty and slowdown in consumer spending?

Please email your answers to george@whalinonretail.com. I will share some of your comments with other readers in next month's newsletter--a mini-brainstorming exercise. The plan is to attribute your answer to you and your company unless you prefer to remain anonymous. Just let me know.

Until next month...

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Are your managers ready for the holidays?

Make the most of your pre-holiday managers' meeting with George Whalin's Special Holiday Edition of his "Great Store Managers Make Great Stores" seminar.

Store managers have a great deal of control over the attitude, tempo, atmosphere, and, ultimately, the success of a store. This edition of George Whalin's Great Store Managers Make Great Stores is specifically geared toward the challenges managers face during the holidays. In these tough economic times, retailers must take action NOW to make the most of the upcoming holiday season. This seminar gives managers the boost they need to give it their all.

George shows managers how to identify what it will take to improve the overall productivity of their stores. They will fine-tune their own communication skills, personal focus, and leadership abilities. And they will learn motivational tools and daily people-building activities to improve the performance of their associates whether full-time, part-time, or seasonal.

Your managers will come away from this seminar fired up, excited about their jobs, and ready to tackle this make-it-or-break-it time of year. Don't leave it to chance. Help your managers take control of what happens in their stores so that all your customers are served the way they should be served, are given every opportunity to buy, and have such a wonderful shopping experience, they will tell everyone they know to shop in your stores for the holidays and beyond!

Improve your odds for a successful holiday season!
Schedule this business building seminar for your next managers' meeting or holiday kick-off rally. Call 800-766-1908 today to check date availability. Time is running out!

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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)

NEW! Strategies for a Changing Retail World

Into the Future! Powerful Trends Shaping the Future of Retailing

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

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

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.

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 2008. 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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