The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings
Issue link: http://www.e-digitaleditions.com/i/338672
RETAILOBSERVER.COM JULY 2014 40 Elly Valas Retail Views Elly Valas is the Marketing Services Director for Nationwide Marketing Group. She can be reached at elly@ellyvalas.com or at 303-316-7569. Visit her website at www.ellyvalas.com. I 've recently started cleaning out my file cabinets. Most of what I've found is business resources; copies of presentations I've given, columns I've written, articles I've clipped from Business Week, Harvard Business Review and a host of industry and retail trade magazines like NARDA News, MART, TVRO and Merchandising- that aren't even published today. I know a lot has changed in the past 22 years- the rise of e-commerce and the Internet being the most obvious. What surprises me most is how much hasn't. It appears the old adage rings true- the more things change, the more they stay the same. If I was going to coach someone starting a new business today, I'd tell them to concentrate on six basic retail pillars: The Customer Experience, Driving Traffic to Your Store, Store Design, Merchandising, Financial Management, and your Team. Pretty much the same things that have been key since the first caveman sold a rock wheel to his cave neighbor. Tweaking even a couple of these strategies could take your company to the next level. 1. CUSTOMER EXPERIENCE a. Easy to access location with adequate well-lit parking b. Convenient shopping hours c. Well trained, knowledgeable associates who ask questions and care about their customers d. Courteous, professional, well-equipped and timely delivery and installation teams e. Spotless, updated, stocked restrooms 2. DRIVING TRAFFIC TO YOUR STORE a. Annual advertising, promotion and event budget including key city funds, co-op and 3 -5 percent of dealer funding b. Media mix including print, direct mail, digital and electronic advertising c. Mobile optimized website- with product catalogue and some pricing d. Social marketing presence e. Several recurring well-planned annual events- private sales, anniver- sary sales 3. STORE DESIGN a. Merchandise layout that makes it easy for customers to find what they are looking for b. Contemporary color palette c. Well maintained paint, carpet, fixtures and signage d. Well-lit showroom e. Computer generated price tags 4. MERCHANDISING a. Good-Better-Best selection in all product categories b. Product selection that mirrors target customers c. Product placement in showroom that helps customers see product benefits d. Clearly defined and communicated plan to sell e. Market based pricing strategy 5. FINANCIAL MANAGEMENT a. Annual sales, expense and profit budget b. Timely accurate monthly financial statements c. Monthly review with key team members of financial results d. Deep understanding of key ratios like gross margin, GMROI 6. TEAM a. Clearly defined mission, goals and strategies b. Organization chart c. Job descriptions d. Semi-annual review schedule e. Compensation plan that rewards performance f. Continual learning programs for all team members g. Conflict resolution mechanism h. Opportunities for advancement i. Collegial, fun, caring culture j. Succession plan This is far from a complete business plan, but it is a good framework for a company makeover. Great retail is like great art. The work is never done. There is always something to change, update or do better. For me, there are still more files to clean. BACK TO THE FUTURE RO