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September-October 2009

What are your goals?

In response to the changes in consumer buying habits, their priorities, and overall interest in shopping, retailers would do well to redefine their goals for the fourth quarter, the upcoming holiday season, and beyond. With fewer customers coming through the doors, those goals may be refocused on inventory turns, adding or deleting certain merchandise categories or brands, or overall profitability.

But goals based on lower expectations in this new retail climate may require making some basic changes in how you operate the business, your stores, and how you think about the future. Some of these changes may be long overdue. One retailer I know has recently budgeted for and made a major commitment to redoing his three stores. This will mean new decor, fixtures, signage, and improved lighting.

Like many others, he has pared his inventory to reflect the downturn in sales over the last year. Believing the customer is still interested in shopping in an attractive store albeit with less to spend, the new decor and layout is designed to cultivate additional sales and keep customers in the store longer.

With clear goals and a realistic look at the current state of the industry, retailers today should be better prepared for what lies ahead than they were when the downturn began last year. Have you reevaluated and reset your goals and expectations for the current economy? Have you established plans for making changes in your business to achieve those goals?

While we have certainly seen positive signs of economic improvement in recent weeks, problems with housing, unemployment, and an unsteady stock market persist. Consumers have certainly not shown any enthusiasm for returning to the way they shopped and spent their money just 18 months ago. But at some point they will, and smart retailers will be ready.

BOOK PRICE WAR!

The first shot in the new war over pricing of popular hardcover books was fired by Wal-Mart a couple of weeks ago with the announcement it would be selling books for $10. Amazon.com fired back announcing it would sell books for $9.00. Then Wal-Mart matched Amazon's pricing. These are the same books both companies usually sell for between $14 and $16. Unfortunately, no one wins in this kind of war.

It would be easy to say the customer wins, but if such pricing drives publishers to release fewer books or even puts some out of business, how does anyone benefit? If such pricing discourages great authors from doing the work needed to research and write the books you and I enjoy reading, how does anyone benefit?

I can't see how smart companies like Wal-Mart and Amazon can think that capturing a few extra points of market share or even a few more customers during the holidays with this approach justifies the damage it does to the entire book industry.

MICROSOFT'S FIRST STORE!

On October 22 Microsoft jumped into the retail business opening its first store in Scottsdale, Arizona. With Apple's highly successful retail business now operating 275 stores, I guess Microsoft just couldn't help themselves. In addition to the company's branded products, the new store features merchandise from Panasonic, Dell, B&O, LG, and others. The first reviews I've seen say the store is attractive with a broad selection of merchandise. The second store is expected to open here in Southern California in the next few days.

Photos by Dennis Tarwood gizmodo.com

A Personal Note

Some regular readers noticed they did not get a September issue of this newsletter and that I haven't posted messages to my blog in several weeks. I had surgery on my neck early last month and have not been able to do any writing. But I am on the mend and writing once again. Thank you for your patience and the nice notes from those of you who missed hearing from me.

On the Road Again in 2010

Now that my neck is healing, I'm chomping at the bit to get back to work. I have some great opportunities to speak to some wonderful audiences in all kinds of retail segments:

JANUARY

Do It Best Hardware Orlando, Florida
Topic: "Strategies for a Changing Retail World"

International Music Products Association, NAMM Show Anaheim, California
Topics: "Strategies for a Changing Retail World" and "Becoming a Retail Superstar"

National Shooting Sports Foundation, SHOT Show Las Vegas, Nevada
Topics: "Strategies for a Changing Retail World" and "Double Your Sales and Triple Your Profits with High-Impact Marketing and Promotions"

FEBRUARY

Texas Association, Directors of Volunteer Services Houston, Texas
Topics: "Retail Success" and "Strategies for a Changing Retail World"

Toy Industry Association, Toy Fair 2010 New York, New York
Opening Keynote: "The Post-Recession Consumer: Will Retail Ever Be the Same?"

Independent Jewelers Organization Dallas, Texas
Topics: "Retail Success" and "Strategies for a Changing Retail World"

Photo Marketing Association Anaheim, California
Topic: "Becoming a Retail Superstar"

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 just surviving but thriving. Any retailer who wants to build a 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 are redefining what independent retailers can do in a highly competitive environment. These amazing retailers are growing and prospering alongside national chains and big box stores of all kinds.

This unique presentation is jam-packed with the strategies, ideas, and business-building tools employed by the independent retailers profiled in the book. Whether just starting out or eager to take their business to the next level, retailers can learn what has worked for the best in the business even in tough 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.

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 2009. 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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