Retail Observer

RETAILOBSERVER.COM JANUARY 2016 36 Elly Valas Retail Views T he rush is winding down, you've put the Christmas tree out to be recycled and you can take a deep breath and look ahead. What are you going to do to make 2016 different, better, more profitable and more exciting? How are you going to keep your team as motivated and energized as they were during the frenzied holiday season? What new products are you going to bring in to expand your offerings? How are you going to entice customers to come into your store? In his book, A Curious Mind: the Secret to a Bigger Life, Hollywood and TV producer Brian Grazer links his success to his unbridled curiosity—his continued questioning and efforts to seek out successful people and question them about their paths to achievement. For Grazer the constant capacity to question provided new opportunities and new ideas. So before you start planning for the year, question everything about your business. • You've displayed the products in your store the way they are for twenty years. Can you shift that straight row of laundry to something more diagonal that will lead your customers up into full featured models? Will a supplier help you update your kitchen vignette to include a demonstration kitchen? Is there a better way to display your pro appliances to make customers drool over them? • Look at your team. As Jim Collins said in Good to Great, do you have the right people on the bus? Are they in the right seats? Does your loyalty cloud your judgement and your ability to coach and discipline your stragglers? Do you keep people in jobs they aren't good at because it's easier than training new people? • It's hard to change sales commissions. Associates always think that any change you make is an attempt to get in their pockets. Still, it may be time to look at your compensation plan to see if it really entices your team to sell the products you want them to sell and at the same time create high customer satisfaction. Is it time to take control of vendor spiffs bringing that money in-house so that you determine how those funds are used? Companies who have made the move have seen a significant increase in gross margin. • It's hard to believe, but that website you proudly put up is now almost ten years old. Is it mobile optimized? Does it have a complete product catalogue? Do you use price comparison tools to ensure that your online pricing is competitive? Do you automatically download consumer rebates and vendor promotional banners? • Look at your merchandising. Do you display and promote the products your buying group gets special buys on? Are the brands you carry the ones your customers ask for? Are you open to new imports that come online? Do you continue to carry poorly- performing lines because of your relationship with the local rep? • Don't ignore the hard questions. Is your store located in a run- down, blighted part of town because you own the building and it's paid for? Does the fear of failure keep you from moving to a better location that is more convenient for your customers? Are you too comfortable to make bold moves? Speaking of hard questions, have you started to think about your succession plan? You won't be able to do what you do now forever. Who are you bringing into your management team to take more responsibility? What will happen if you're suddenly disabled? If you aren't grooming a successor, are you building a sustainable, profitable, saleable business? • Brian Grazer virtually stalked people he wanted to meet. In doing that, Ron Howard became his partner in Imagine Entertainment and together they have produced movies like Apollo 13, A Beautiful Mind, Parenthood and Backdraft. Who can you meet with to share ideas and seek support from? Are there other business leaders in your community that you should meet with? Are you collaborating with other members of your buying group and other independent retailers in your community? As always, I have to include something about health and fitness in my New Year's column. Studies have proven that sleep is crucial to good health. Those who fool themselves about their ability to get by on five or six hours of sleep aren't fooling their bodies. We need rest to restore our cells and renew ourselves. And don't forget to eat more vegetables, cut down on carbs, sugar and alcohol and get plenty of exercise. As the New Year begins, I too am on a new path. I'm eager to revitalize my consulting practice and get back into the field working with independent retailers. Best wishes for a happy, healthy and prosperous 2016. OUT WITH THE OLD— IN WITH THE NEW RO Elly Valas is an author, speaker and retail consultant. She can be reached at elly@ellyvalas.com or 303-316-7568.

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