Retail Observer

RETAILOBSERVER.COM JANUARY 2018 34 I n trying to put together my annual New Year's resolution column, I just looked back to see what I'd written about in 2016. As always, I wrote a couple of columns about customer service and customer experience. One column was about building a lasting brand, and another about leadership described how Tesla CEO Elon Musk took personal responsibility for solving a safety issue in his plant. Music was on my mind when I wrote a column about Bruce Springsteen building a team that is as much part of his success as he himself. In two articles, I shared my personal best and worst experiences— one with some banks and one with two medical professionals. And of course, I found a sports metaphor about the management style of Denver's major sports franchises. Most included stories to illustrate my points. Looking at these topics now, you may be thinking, "What do these have to do with my business?" or "I've got Internet pricing eating into my margins—that's what keeps me up at night." Analysis right after Black Friday weekend showed surprising strength in brick and mortar shopping. Although Cyber Monday was the largest volume online purchase day in history, during the weekend, mall traffic was up, average in-store spending increased, and most retailers reported hefty volume increases from the previous year. But what about all the store closings we're seeing now? As reported by Barbara Farfan in retailindustry.about.com: Many experts believe that retail store closings are still due in large part to the overgrowth of the U.S. retail industry even before the U.S. Great Recession occurred... There is approximately 46.6 square feet of retail space per capita in the U.S., compared to two square feet per capita in India, 1.5 square feet per capita in Mexico, 23 square feet per capita in the United Kingdom, 13 square feet per capita in Canada, and 6.5 square feet per capita in Australia. We live in a time of shifting retail trends. Regional power houses like hhGregg have shuttered their stores; struggling Sears is testing home appliance and bedding specialty stores. Despite a huge number of store closings, shopping is still a favorite American pastime. But to be on a consumer's list of favorite haunts, you have to be accessible, be relevant, offer an exceptional experience, be priced competitively, sell a cutting-edge product assortment, and offer value- added service. Here are a few things that might put you ahead of the pack. • Touch your customers often. Hold special in-store events (not only sales) for your loyal customers. Have a monthly gourmet club in your store hosted by a different local chef each time. Use your store to host your local home builders association or ASID chapter meetings. Invite book clubs to hold their meetings in your conference room. Hold pie making contests or chili cook-offs with vendor representatives judging the finalists' entries. Make your store a go-to destination for entertainment. • Partner with other businesses. Give a $100 gift card to a local gourmet food store with the purchase of every kitchen or one to a specialty linen store with the purchase of premium bedding and foundations. Create personalized gift baskets with goods from other local specialty retailers to give at holidays or during promotions. • Be where the action is. It may be time to move to or add a new location. With few exceptions—Abt in Chicago, for example—you can't expect customers to travel far to buy from you. Millennials especially are looking for live-shop-work communities where they do everything close to home. If your community is growing in a particular direction, consider moving toward those younger prospects. • Invest in your physical plant. Is your store hip or tired? Today's customer has been to Anthropologie and Apple stores. If you're looking to create an experience to beat out your online competitors, it has to start at the front door. • Create a plan to grow your market share. It's not too late to actively pursue customers who had always owned Kenmore or who always bought their bedding from a department store. According to the National Association of Realtors, sales of existing (projected at 5.8 million) and new homes (670,000) is expected to soar in 2018. What is your plan to put new furniture, bedding and appliances into those homes? With fewer competitors and the probability of exploding sales growth in the coming year, opportunities for success are abundant. It won't be easy—it never is. But for those who differentiate themselves, attract new, younger customers and aggressively go after business, it's shaping up to be a banner year. I hope you get your unfair share. Elly Valas is an author, speaker and retail consultant. She can be reached at elly@ellyvalas.com or 303-316-7568. Elly Valas Retail Views RO LOOKING INTO MY CRYSTAL BALL

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