Retail Contrarian

Every Day Success in 2009

Here are my final thoughts on 2008. Good riddance!

As 2009 begins, our industry is facing the most tumultuous year in a very long time.  A dramatic pullback in consumer spending is causing a ripple effect from retailers to manufacturers to suppliers to landlords and on and on and on. Many experts are predicting that more stores will close in 2009 than in any year since the early 1970s.

Not a pretty picture.

I never forget the human toll this economy takes. I know that for every store that closes, whether it is locally owned or part of a national chain, employees and their families are dramatically affected. These are not easy times, and they’re especially challenging for retailers.

But with these great challenges come great opportunities.

Fewer stores will mean less competition.  Consumers will shy away from retailers who are either known to be struggling, or project an air of “struggle” in their customer experience.  Consumers will continue to seek out and remain loyal to retailers who deliver a good value and a great experience. Will you be one of those retailers?

You can CREATE and MAXIMIZE the success you deserve in 2009 IF you’re 100% ENGAGED.  That’s true for every owner, executive, manager, support staff, and salesperson.

But it won’t happen on its own; those days are long gone.

In order to succeed, specialty retailers must now create enough store traffic every day.  Events, educational programs, and other activities that drive traffic will be key in 2009. Will you be able to create enough traffic to succeed?

Specialty retailers have to maximize every customer every day and turn it into a sale.  Retailers who still think that all they have to do to make a sale is open the door are in deep trouble. And there are a lot of them out of there.  Only 20% of the stores I visited last weekend even attempted to make a sale. I will not be surprised if at least half of those stores are gone by this time next year.  Are you maximizing every customer opportunity?

Specialty retailers must also focus on creating a customer-focused staff that is engaged and maximizing every single customer opportunity everyday. Great people are the only way to compete against the discounters who commoditize products. Is your staff ready to maximize the opportunities you create?

Keeping customers in 2009 will be even more important than making a sale. Retailers will have to engage their customers every day to create the long-term loyal advocates necessary to compete in these challenging times.  Remember, if you keep the customer you’ll get the sale. Will you?

And last but not least, success or failure in 2009 will come down leadership.  No one achieves success by hoping or wishing for it. Success comes when the leader(s) of a store or organization create positive energy and make sure everyone is taking positive actions every day.  Are you ready to lead?

We are. It is our goal to help your organization create Every Day a Success in 2009. We’ll help you succeed every day so you can make your week, your month, and then your year. You’ll be thriving when other stores are just trying to survive.

I welcome the opportunity to discuss how we can help your store create Every Day Success in 2009.  Whether you’re a large international chain or an independent retailer, we can help.

We’re ready to MAXIMIZE 2009. Are you?

Doug Fleener and Matt Norcia

Maximize Your Post Holiday Opportunities

I believe that high executing retailers can beat last year's numbers for the last week of December if they have their staff focused on turning returns into sales and shoppers into buyers.

I also believe that consumers who have been cautious this holiday will cut loose right after Christmas. Shoppers will be looking to spend those Gift Cards they received and exchange those unwanted presents for something else. A staff with a post-holiday positive attitude has the best opportunity to create positive post-holiday results.

A retailer once said to me that returns are "just a fact of life" and you have to "grin and bear it." I agree with him about the importance of the grin but I differ about the need to "bear it."  All retailers will have returns after Christmas; how the retailer handles those returns can ultimately determine their month.

There are three common mistakes retailers make when it comes to holiday returns:

1. They assume the customer wants a refund. Wrong.

2. If the customer doesn't have a receipt, or they have a gift receipt, the retailer assumes that the customer will only spend the amount of the product they're returning. Wrong.

3. They assume that if they can just break even on the few days after Christmas they are doing well. Wrong.

With the right approach to handling post-holiday returns, a retailer can not only save sales but create them as well. This year we are again recommending that your staff members know and execute the "Three I's with a Smile" approach to handling returns and exchanges.

1. Intercept all customers before they get to the counter. Greet them with a warm smile, a heartfelt "welcome" and an offer to take the return from them.  In most stores associates rarely do more than point toward the counter any customers who are seeking to make a return. This is not only a big mistake that ends up increasing the amount of returns, but it makes the person with a return feel less important than person making a purchase.

Try to engage the customer as close to the door as possible without making them feeling accosted. If a customer gets to the counter un-engaged your chance of saving the sale is greatly decreased.

2. Identify why the customer is making a return.  Since you are assuming the customer will make an exchange (and quite possibly spend even more money) listen carefully to what they say as you will gain information that will u help your next step be the correct one. One important thing you need to know is whether the person returning the product is the original buyer or received the item as a gift.

3. Influence the customer by suggesting or recommending products that will better meet their needs than the product they are returning. The customer may object to this and state that he/she just wants a refund. With a smile and the information you've gained from your identify step you can easily try to overcome the objection by stating what you've learned from them. I think we owe to the customer and ourselves to always try and overcome at least one refund objection. This can save a retailer thousands of dollars in returns. If the customer objects again, then of course you escort them to the counter and get their return handled cheerfully and efficiently.

A store manager of mine use to say, "Any retailer can make buying something a good experience for a customer, but it takes a GREAT retailer to do the same with a return or an exchange." When done well, the return or exchange will be a GREAT experience for both the customer and the store.

Here's wishing a Merry Christmas - or Happy Hanukkah - or if you have no holiday preference a Happy Day!

Doug Fleener and Matt Norcia

Downloads
1. A printer-friendly version of this newsletter to share with others or to use in a store meeting is available to download here.

2. Here is a Three I's with a Smile sign to post in the back room on December 26th.

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Crunch Time Success Tactics

Try these five tactics - they just may help you be wildly successful this last week before the holidays.

1. Review and improve your impulse items.  Take a look at the impulse items you have at the counter.  Are these products selling at or above your expectations?  If not, you need to take action and not wait for them to magically start selling. Even if your sales and traffic are off you should still be moving impulse items at the counter.

I've heard that a number of national retailers are switching out their impulse items for lower price points to increase sell through. We're also seeing retailers repositioning impulse items in the aisle to increase attachment rates with related items and to increase units per transactions.

2. Make sure your staff knows how to properly answer the "What's on sale" question. This is especially important if you're a specialty store with limited sale items.  Even more to the point is using the opportunity to engage the customer and identify the opportunities to create a sale.

Customer: "So what's on sale?"
Employee: "We do have some great values. Are you looking for yourself, someone on your list, or even both?"

Customer: "So what's on sale?"
Employee: "We do have some wonderful specials right now. Whom on your list are you shopping for??"

Don't show any specials or sale items until you know the answer to your question.

3. Remind customers who else should be on their list.  Instead of just asking the customer whom else they need to buy for, remind them of some people they may have forgotten such as hairdressers, babysitters, blog writers (that's a joke!) and others.

4. Remind your team that they may need to work with multiple customers from here on out. When a store gets slammed, employees must shift from working one-on-one to one-on-many.  The sales process doesn't really change, you just break away at different points. Here's a simple example:

One-on-one
This cable sweater will look beautiful on you.  I know that both the blue and green will both look fabulous. Let's go have you try them on.

One-on-many
"This cable sweater will look beautiful on you. I know that both the blue and green will look fabulous.  Why don't you go try them on and I'll meet you in the dressing room in a few minutes." (Employee them jumps back to another customer.)

Here's another example

One-on-one
Based on what you've told me about your husband, I'd recommend this XYZ by Motokia. You mentioned that he gets lost a lot so let me show you how the GPS in this works.

One-on-many
Based on what you've told me about your husband, I'd recommend this XYZ by Motokia. (Employee turns to a customer next to them who is also looking at the same phone.) Hi, if you'd like to join us I can also show you some of the features I'm showing Mrs. Smith. (Back to the Mrs. Smith) You mentioned that your husband gets lost a lot so let me show you how the GPS in this works."

You do have to be careful that the second customer doesn't try to dominate the conversation.  If that starts to happen then you can either ask another salesperson to step in and assist them or you can tell them you'll be with them in a moment. When done well you can close both sales at the same time.

5. Post today's Daily Retail Quote.
"Nothing is more expensive than a missed opportunity." -  H. Jackson Brown Jr.

Here's wishing you a wildly successful Crunch Time.

Crazy Busy or Crazy the Store is so Slow

The first two weeks in December are some of the most challenging days of the season.  It seems the store is either extremely slow or exceptionally busy.  The customers who are in the store seem to either buy up a storm or storm off when you try to help them.  What's a staff to do?

I'll start with the easy part, a hopping store full of buyers.  It's times like this that make working retail during the holidays so much fun. Here are some tips to ensure as much money as possible makes it into the register.  I know you've heard these all from me before but December is a good time for a refresher course.

1. When showing a customer different products always give your opinion on which one he should buy. Even better, suggest he buy all of them.

2.  Remember the Butcher rule; always show the best product first. 

3. Never ask "Will there be anything else?"  That's code for, "You're done, right?"  Instead, ask who else is on your customer's shopping list.  Keep asking questions and suggesting products until the customer says he/she is done.

4. Don't bring the customer to the counter until she tells you she is done shopping.  If the customer has several products in her hands and you want to help her out do not say, "I'll put these behind the counter."  Don't even mention the word "counter" or "register." Instead say, "Let me hold these for you while you continue to shop."

Now, about those slow days and the "just looking" crowd.  Try these tips to turn the browsers into buyers and the register into singers.

1. Do NOT ask the customer how you can help him. I was in a mall over the weekend and was shocked at how many times I was asked that question. You know the answer, why bother to ask the question?

2. Do welcome the customer and tell her about your store's holiday specials. "Hi, welcome to ABC Kitchen Supply.  We have some amazing holiday specials including a buy two get one free."  What you follow-up with depends what works for you personally and your customer's reaction to your welcome.

3. If the customer appears to be open to your engagement you might ask him how he'd doing on his shopping list or if he's treating himself to something.  Use however the customer to ask a follow-up question.  Suppose the customer says, "Well, the good news is that I'm almost done with my shopping."  You could respond with, "Congratulations. I'd love to show you a few things to help you complete it.  Who's left on your list?"

4. During this time in the season you need to be persuasive and proactive in moving the customer into your products.  I'm not saying to be overbearing or obnoxious but you can't be passive and just ask people if they need to be helped.  As one fiery retailer in Las Vegas says, you can work it or clerk it.  The key to "working it" is to display passion, energy, and a true interest in the customer.

So whether the store is crazy busy or you're crazy the store is so slow, be sure and maximize every opportunity with every customer.

Wednesday Musings: Maximizing Downtime, !!!!, and Other Holiday Stuff

Every Wednesday I share some assorted musings with my Daily Retail Experience subscribers. This week I thought I would share them with you too. Enjoy!

Successful retailers know they have to maximize both busy and slow times during the holiday season.  Many store staffs do a great job when they're busy but waste the slow time by standing around waiting to get busy again.  This year more than ever, stores need to be productive on the slower weekdays.  I say all hands on deck calling customers and anything else that can be done to drive additional traffic.

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Speaking of all hands on deck, a reader whose business was struggling told me how he used their downtime during the holiday to rearrange the store. I never heard back when I asked why he didn't use it to generate additional sales and traffic. Then again it might have been that comparison to the furniture on the deck of the Titanic.  I'll say it again, use your down time wisely. It could be the difference this holiday.

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I'm fascinated by how people use exclamation mark on signs.  I was recently in a toy store that felt it necessary to add four exclamation points to an "employees only" sign. Think about it.  A respectful sign is "Employees Only, Please" or "Employees Only."  Those four exclamation points are like using all capital letters in an email; it looks like they're shouting at customers. The same store also had a sign warning "Display Only!!!!"  My advice is to reserve the exclamation marks for anything that is important to the customer.

The same holds true for memos. Ending a memo with "We can do it!!" is fine but "Pick up after yourself!!!!" is obnoxious.  Use your exclamation marks to motivate people, or at the very least keep it a single mark.

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I'd be remiss if I didn't mention the tragedy that occurred at the Long Island Walmart on Black Friday.  It was totally avoidable and Walmart clearly has to change their Black Friday approach. I like the Best Buy approach.  Their system of handing out tickets for the most in-demand products to those waiting in line is a sensible and workable way to maintain an orderly line.  A writer from the Philadelphia Daily Times I spoke with wrote a good article about it here.

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A Daily reader tells me that one way she's been successful is by creating a tax-free area within her store.  She says, "The Tax Free Zone is a great talking point and is effective in closing a sale and easy add-ons.  Almost all customers commented on how nice it was not to pay tax."  She points out if she did a sale rack with 7.25% off it wouldn't create much interest or sales.  I love it! (Note the single exclamation mark.)  This retailer is thinking up new ways to engage her customers and differentiate her store this holiday.

So let me ask, what are you doing to create a successful holiday season?

Have a very successful week.

It's a Black Friday MO Weekend

It's hard to believe but here we are at Black Friday Weekend. Let's make it a good one.  No wait, let's make it a great way! That won't happen by itself; you need to create your success so you have MOmentum going into the holiday.

You can do that if you make more Multi-unit transactions and create sales Opportunities.

So this weekend, the focus is making more MO.  Everyone needs to beMOtivated and ready to bring in lots of MOney by making MO.

It's all about the MO! Here are some tips to making MOre sales:

1. Assume you'll make MOre Multi-unit sales this weekend:

Assume the customer wants to keep looking at products. Do not ask your customer if she wants to see additional items.  If you know why she is buying the first product (and if you don't you haven't done your job well) it's only natural - not to mention good service - to show more products.

Use assumptive language. Instead of saying, "You might want to consider this" say "You'll want to get this, too."

Don't assume your customer is done shopping.  Let the customer bring closure to the sale; your job is to keep showing and suggesting until he's done. If you ask that tired and overused line, "Will there by anything else?" customers will say no 98% of the time because that's what they are trained to do.

Assume she has more people to shop for, so ask every customer who else is on her holiday shopping list.

2. How are a few simple but MOmentous actions you can take to create sales opportunities this weekend.

Engage every customer who walks in the door. Don't greet them, engage them in conversation to learn something about them. Then use that information to move them to products.

Give the customer a reason to buy TODAY. Only make a future sale if you can't make one today.  More retailers lose sales than make them this weekend.

Deliver an awesome experience! There are two kinds of stores that will have a good Black Friday Weekend.

1. The stores that have unbelievable-remarkably-low-you-have-to-buy-it-now weekend specials.

2. The stores that deliver to their customers an unbelievable, remarkable store experience with a staff that makes the customer feel special.

So get your MO on and deliver an unbelievable, remarkable store experience and you might just have a MOnster weekend!

Good luck!

Doug Fleener

Bonus: Download your MO Weekend sign to MOtivate throughout the weekend.

Retailers Adapting Their Service This Holiday

There is a good article from Reuters on how smaller stores are changing their service to survive this holiday. Self promotion alert! I am quoted in the article.

Small U.S. stores adopt personal touch to survive

Many U.S. retailers, large and small, have good reason to envy Sue Opeka -- sales at her store have been up 15 percent for the past four months and she's up 5 percent for the year so far

......"To get through this season as an independent retailer, you have to adapt," said Doug Fleener, owner of Massachusetts-based retail consulting firm Dynamic Experiences Group.

Read the entire article

A Holiday Letter to the Staff

This week's posting is for the retail employee in the store. Please pass it on.

Dear Retail Employee,

With one week and a day before the "official" launch of the holiday season, I'd like to discuss the challenges and opportunities facing specialty retailers.

Unless your last name is Van Winkle and you just woke up from a long sleep, you're keenly aware of the challenges facing retailers this holiday.  Most of the holiday projections are indicating the weakest growth since 2002.

The good news is that there should be at least some growth this holiday.  The bad news for most Weekly readers is that most growth will likely happen at the discounters and online.  I don't think anyone can deny that it is going to be a challenging year for specialty retailers.

But with every challenge comes an opportunity.  For every store that struggles there will be another that succeeds.  For every store that fails before the doors open another will succeed out sheer determination.  For every staff that throws in the towel another will grind it out.

The difference this year is going to be you.  I'm convinced that the difference this year for specialty retailers will come down to the people in the store.  It's the staff that will ultimately decide the winners and losers this year.

I have great admiration and respect for what you do because I've been there.  I know you work long hours at this time of year and often miss family events as a result. You have to deal with crowds and the occasional cranky customer.  And after all that time on your feet you're bone-tired at the end of the day.  I know you give your all but this year it's going to take even more.

Here are some tips for you and your colleagues to make sure you're one of those winning stores:

1. Stay positive. Attitude could be the biggest difference between the winning and losing stores this year. Every employee needs to do his or her part in keeping a positive outlook. Take a leadership role and turn negative colleagues positive.  The press will be looking to cover how bad things are but your customers will be looking for stores that make them feel good.  Make a customer feel great and a sale will follow.

2. Succeed one day at a time.  If you have a bad day - shake it off.  If you have a good day - do it again. You make your holiday by making your month. You make your month by making your week. You make your week by making your day. You make your day by making your hour.

3. Maximize every customer opportunity. You make your day by focusing on the needs of every single customer. Don't let your guard down and miss even one sale, because that one sale could be the difference in success or falling short.

4. Don't pre-judge what a customer is going to spend. Customers aren't a survey in the newspaper. Customers aren't a sales projection in some pundit's article. Customers are unique individuals who offer us a unique opportunity. Give them a unique experience and you're sure to be rewarded.

5. Be a better salesperson every single day. Push yourself out of your comfort zone. Keep showing products until the customer says they're done. Ask them if they'd like to also buy a gift card. Ask the customer who else is on their list that you can help them with. Focus on increasing your average sales and unit-per-transaction.

It doesn't matter if you work for the owner of an independent store, a regional or national corporation; I believe you can make the difference this holiday.

Do you?

Good luck this holiday,

Doug Fleener

Download a printable version to share with others.

Good Days and Bad Days, and Going Half-Mad Days

There's a Jimmy Buffet song that goes, "I've had good days and bad days, and going half-mad days."  Sure has described October hasn't it?

We've seen record high and low days on Wall Street. The good news is the market ended yesterday with its second largest one-day point gain ever. Yea!

Some of the bad days were the ugly predictions coming out about this holiday shopping season.  One retail analyst I have followed for years was quoted as saying, "The worst is yet to come for retailers."  Another analyst predicted that the retail industry could lose between 10% and 15% of stores next year. Boo.

And that brings us to the going half-mad part. Between the stock market and all of the press it has been quite the roller coaster ride or, as we say here in Boston, a "wicked" roller coaster ride.

I'm thrilled we finally got some good news, and we'll take the "bad" news with a grain of salt. But instead of going half-mad, let's take a look at a few actions retailers can take to NOT be one of that potential 10% - 15% that doesn't make it.

1. Increase the amount of marketing to your customer list. We've always said it's more productive to market to the customer you know versus the one you don't know, and that's true now more than ever. I would especially focus on the top 100 to 250 customers who offer the most opportunity.

2. Keep your team motivated and focused. The successful retailers I'm seeing right now are those who are keeping the carrot directly in front of their employees.  I would run some kind of company or in-store contest or other incentive as often as you can between now and Christmas.  I know it's tempting to cut back in this area - but don't.

3. Invest time, energy, and even more dollars in employee training.  A lot of companies will cut back in this area; a huge mistake for them and potentially a great opportunity for you.  I know I've said it over and over again, the most important thing a specialty retailer must do right now is to maximize every customer opportunity.

Focus the training skills on:

• How to engage and sell customers who are "just looking."
• How salespeople can create incremental sales and increase the average ticket.
• How cashiers can demonstrate and suggest additional products that will enhance the customer's purchase and shopping experience.
• Holiday selling for maximum performance.
• Anything else that will create sales.

I've been talking with a regional retailer about launching a new training program early next year.  In our most recent conversation I was told, "We don't believe we can afford to move forward."  My response was, "I don't believe you can afford not to. If you don't keep improving your employees you will lose market share." They said they'd get back to me.

So let me ask, are you taking actions to ensure you have a successful holiday?

Here is a printable copy of this article to use in your store.

Four Months and Counting

Around here on the week of the 25th of August most people are thinking about summer winding down and the kids heading back to school. But I know what you're thinking. . . . it's only four months to Christmas!  That may seem far away to most people but we retailers know it will be here before we know it.  We'd better be ready.

Here are some of my predictions, thoughts, and tips to prepare for the 2008 holiday season.

1. My 2008 prediction. While most pundits and experts will be predicting holiday shopping season that falls somewhere between soft and disastrous, I'm taking a different route.  I'm predicting that (short of some catastrophic event beyond human comprehension) there will be a holiday season.  That's right; I'm going out on a limb and predicting that we will indeed have a holiday season in 2008.

Since we know the holiday is coming, why not plan to make it a successful one?  Why go into the holiday not planning to succeed?  Here's my advice: Look at your 2007 holiday results, review how you're trending over the last eight months, then create a realistic stretch goal. Don't plan low, don't plan unrealistically high, but do plan to be successful.

2. Be very picky about your seasonal hiring.  One of the upsides of this "challenging" economy will be the higher number of quality people in the seasonal hiring pool. People who either would not have considered a second job or are re-entering the workforce will be looking for a holiday opportunity.  You might as well be the person to give it to them - if they have the makings of great employees.

Don't settle for a run-of-the-mill carbon-based life form when you can hire people who will help you achieve your planned success. And don't be afraid of hiring highly-, if not over-, qualified applicants. Some of my best seasonal hires have been pharmaceutical salespeople, bankers, and college professors.  As with every holiday season, be aggressive in seeking out qualified applicants and wrap up your seasonal hires as early as possible.

3. Use this holiday to successfully steal your competitor's customers. We're calling this year the Beg, Borrow, or Steal Holiday Season.  Retailers without unique products, enticing store events, or a differentiated store experience engaging events will Beg for shoppers to no avail.  There are too many options available to consumers for them to settle for shopping in boring me-too stores. Those are the retailers likely to lose their own customers this holiday season.

Other retailers will successfully Borrow their competitor's customers by advertising rock-bottom low prices.  While this may create a short-term sales bump, unless the retailer can profit from this approach the benefit will be extremely short-lived.  January and February could be littered with broken-down retailers who tried to Borrow their way through the holidays.

The most successful retailers will use the 2008 holiday season to Steal their competitor's customers.  Attracting customers through a blend of unique products, compelling events, and aggressive pricing all delivered via a memorable experience will result in new loyal customers with a future revenue stream.  At the same time, these retailers will be able to retail their own customers against the aggressive discounters and e-tailers.

4. Last but not least, now is the time to plan how you will capture every single store visitor's contact information. Prepare now for drawings, giveaways, and birthday clubs - whatever it takes to get that store visitor to tell you his name and how to contact him again. Every contact is a potential future sale. Use your success this holiday season to create a successful 2009.

Ho, Ho, Ho, four months and counting.  Are you getting ready to succeed?