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Posts Tagged ‘Retail Holiday Sales’

How To Keep Out of Stock From Meaning Out of Business

When you’re out of stock, you’ll need to challenge both your employees and your customers if you want to make a sale…

In Texas, during the holidays, at the height of the western wear trend in the mid-80’s, a manufacturer’s representative walked into a boot store.

The store, a former grocery store, was filled top to bottom with boots of all colors shapes and sizes.The rep asked the young man at the counter, “How’s business?”

“It would be good if we just had blue elephant ropers.”(A roper is a style of work boot.)

In the midst of tens of thousands of opportunities to exceed a customer’s desires, the employee had become frustrated for requests for a popular item.

Could that be your crew?

It comes from a passive “clerking” mentality that the customer asked for it, we didn’t have it, I did my job.

As owners and managers it is your duty to challenge your employees when they say things that attempt to relieve them of responsibility for making a sale. We need to show them “the forest for the trees” in such instances.

In the above example, you could have replied to the employee, “Yeah I know.” Or maybe, “Well they’re popular, we just can’t get them.”

But what if you have challenged them with something like this? “Did you ask them where they’d use them? Did you show him how blue is a hard color to take care of? Did you get another pair of boots on his feet to see if he even liked a roper style?”

They might sheepishly admit they could have but didn’t. That’s OK, you want to imprint the idea of possibilities in their mind, not excuses.

Oftentimes by questioning and challenging the negative aspects of employees’ perceptions, you teach them how to handle it the next time. You want them to think on their feet with the goal to make the sale.

Here are two questions to ask customers when you are out of stock:

  • Are you open to some other possibilities?
  • May I order it for you and ship it to your house?

Your goal is to get customers to think of possibilities to get what they wanted, not put up a fence with, “No, we don’t have it.”

And notice, we didn’t say we’d transfer one in, as that can be a crap shoot for both customers and retailers. And no, this doesn’t work all the time but if it worked 1 out of 5 times, it could really help you move the needle of sales, right?

During the holidays, you are bound to be out of stock, especially right after the holidays. What proactive questions have you used to challenge your employees and customers to increase your sales?

The Retail Doctor’s Guide to Growing Your Business (Wiley & Sons) includes hundreds of ideas how to make more profits in 2012.

Retail Holiday Store Windows: Case Study Of Giving Back

Have you stopped to consider the power of windows in retail?

Sure, during the holidays there are stories like this one in the Wall Street Journal on New York City’s major retailers which tout all the “high tech” aspects with movement and digital effects. And good for them!

And while Wallyg has posted some great shots of New York windows on Flikr here, I want to talk to you about Staunton, Va in the Shenandoah Valley, not far from where my mom was born.

For it is there that Robbie Lawson helped Pufferbellies Toys & Books do something amazing this holiday: give back a sense of wonder and pride, as only independent stores can do.

Pufferbellies in Staunton, VA

Erin Branton the co-owner tells me how it all started. “Robbie is a family friend who works with my dad at Taylor & Boody Organbuilders near Staunton.  He and his family shop at Pufferbellies often, too. I saw some photos of a model he made of a church that they were building an organ for, and asked him if he could make gingerbread houses.

He and I and my parents (my mom, Susan is my business partner, and my dad helps with everything) sat down and talked about which buildings we’d like to feature, and Robbie went and photographed all of them before starting to build his models.

Robbie and son finishing up

One of the buildings, the Masonic, houses my brother’s gelato shop (The Split Banana) and our all-time-favorite Mexican restaurant (the Baja Bean Co.) so we HAD to feature that one! The church is Trinity Episcopal, which has a ton of history. It also has real Tiffany windows, which Robbie photographed and printed on vellum (I think) to recreate the stained-glass effect.

Co-owner Erin helping

One thing about Staunton that makes it stand out among other downtowns is that it has tons of original buildings that survived urban renewal during the last century. There were some seriously forward-thinking people that stood up for these buildings and that helped put us ahead of the game in terms of creating a vital downtown today. So anyway, we’re nuts about downtown Staunton and wanted to do something that would honor it. ”

They came up with fake gingerbread houses built using foam board, hot glue, latex caulk and plastic candy to recreate six historic buildings. (You can see a set of 36 on Robbies Facebook page. Let him know where you saw it:)

While these pics are amazing…

That’s not why I’m writing this.

It’s because no matter how jaded you might be at cloyingly cute holiday commercials or how sick you might be of hearing White Christmas, I’ll bet you were taken with these pictures.

No video. No Twitter feed. No digital effects…

Even with minimal merch from the toy store in the window, you, for those brief moments, became like Ralphy in A Christmas Story.

It works because so much of what we see across the retail landscape looks like this Walgreens. The windows have been filled with merchandising units which take up the lower ten feet.

Most retail development windows’ only purpose is to allow minimal natural light into the store, while cutting off the view of the outside world.

This has rendered much of modern retail design sterile, imposing and devoid of emotion.

Why does that matter?

Because well done shop windows let us do either of two things:

  • See into your store’s offerings to be enticed to come in and buy or
  • See into ourselves to discover child-like wonder.

And that is the gift Pufferbellies and Robbie Lawson gave to the nearly 24,000 people who live in Staunton this holiday season.  It’s also what Pufferbellies did when they restored their storefront with original street-level doors, window frames, moldings and trim.

When Main Street retailers talk about what independent stores do for a community, they often talk about how they “give back to the community” through donations to worthy causes.

But the one thing I think many miss is what they can give back with their creativity, love of their town and desire to see the faces of shoppers delighted and surprised.

In a world struggling with an onslaught of technology, these committed owners bring humanity back to its core.

That’s what retail holiday shopping is all about folks.

Not buy one get one free. Not another “friends and family” promotion or online group buying discount.

Its surprise and delight.

In your windows.

In your stores.

In your customers faces…

Bob Phibbs is the Retail Doctor, consultant, speaker and author to help any size brand or company grow their sales using his proven methods. You can download the introduction and first chapter of his latest book, The Retail Doctor’s Guide to Growing Your Business here.

What Retailers Can Do After the Blizzard of 2009

blizzard
The news over the weekend was the big blizzard that occurred on the last weekend before Christmas.  Shoppers in some areas stayed off the roads due to weather, in New Orleans and Dallas it was due to the big Cowboys-Saints match-up. Quick thoughts for retailers:

  • First, the event was short but no lingering affects. Roads are open. If you are a Main Street or downtown location, make sure everything is clean and free of snow, ice and slop – it has to look inviting as ever these next few days.
  • While it may have been painful to not be open your full hours, it is a level playing field; it was painful for your customers to not be able to complete their holiday shopping. You both need each other.
  • Now more than ever customers will be harried, hurried and possibly harpy.  They won’t have as much time to shop around so make sure to get “Their List” and see how many names you can help them cross off.
  • Consider using the hours you didn’t pay employees this weekend, to stay open a bit later or open a bit earlier the next few days to help ease shopper anxiety. Update social media with what you are doing as well.
  • Start any seasonal clearance sale one day earlier and make it more substantial – you don’t want any left after this Thursday.
  • Remember a lot of people held off shopping as they always do when Thanksgiving comes late and were caught off-guard that this was the last weekend before Christmas. Now with one less day, they might be upset so remind your crew to empathize with customers and get “Their List.”
  • Remember guys are the ones you’ll see more of so read my post how to sell to them
  • You’re welcoming them to your home- remember that. If anything, the demands for an exceptional experience have been upped because they have less options to shop around.  When they do, get their contact information so the next disaster you can keep more of your loyal customers updated on what you’re doing to help them get their shopping accomplished.

Now is not the time to try to discount your regular merchandise or try to come up with a new promotion – it’s too late for that. You are selling convenience in the next few days so add-on to every sale; if you offer gift wrapping (even for a charge) make sure customers know, if you have a liberal return policy make sure customers know and whatever you do – get “Their List.”

Black Friday Prediction: Disappointing Retail Sales Stories Coming

It’s the week before “Black Friday.”  My predictions for the stories you’ll see next week?   Headlines announcing that retailers are nervous about the holiday shopping season and how Black Friday will portend to a weak holiday season.blackfridaykarloff

How do I know this? Because that’s what has been covered the past TEN YEARS.  You can read all about the five perennial bad stories of the holidays by downloading my free white paper with all the facts at http://www.retaildoc.com/holiday-sales/

My evidence about Black Friday can be found in these November Headlines:

Year Key Takeaway
2000 For retailers, lackluster October sales point to a disappointing holiday season.1
2001 Retailers and industry analysts predict the gloomiest holiday season in recent memory.2
2002 Department store sales are “volatile, hard to forecast and slow overall.”3
2003 N/A
2004 Citing higher heating oil prices and falling consumer confidence, retailers are nervous about holiday sales.4
2005 N/A
2006 MasterCard’s analysis of payment card transactions indicates Black Friday sales will be slow.5
2007 Economists predict holiday season could be the worst in five years.6
Soft sales in October lead analysts to believe holiday sales will be weak.
7
2008 Holiday shopping season to be “grim at best.”8

Sources:

1 Retail Sales in October Up a Disappointing 2.9%, The New York Times, 11/3/00

2 Holiday Buyers Wary of Nation’s Malls, The Washington Times, 11/27/01

3 Retailers Bite Nails as Sales Cool, USA Today, 11/20/02

4 Retailers See Sales Rise in October, But Wary for Holiday, USA Today, 11/4/04

5 MC: Shopping to be Lighter Than Expected, American Banker, 11/21/06

6 Data Point to Weak Holiday Sales, The Wall Street Journal, 11/15/07

7 Retail Sales Slip, Signaling Cutback in Holiday Spending, The New York Times, 11/15/07

8 Retailers See a Broad Slowdown Ahead of Holidays, The New York Times, 11/7/08

What’s funny is most of us would look back at 2002, 4 and 6 as the “golden times” by today’s standard yet by the stories, you’d think each were the worst.

Why is it important to know most of the stories are regurgitated? Imagine about to get married and your family and friends kept bringing up predictions of divorce because they read about it.  What would that have done for your confidence in the biggest time of your life?

Likewise, these endless broad-stroke stories set retailers up for a rotten holiday which influences their buying, hiring and marketing.  It makes them feel they’ll have to “to something” and discount to hold on to market share. That is a recipe for disaster as they begin the New Year.

And it isn’t just the media covering this, it is the major retailers too quick to lower expectations so Wall Street lets them off the hook, it is the credit card companies, shopper traffic reporting companies – the works.  All trying to get in on the feeding frenzy.

Before you watch how this plays out over the next week,  tell your friends now so you can say, “Told you so.”  Don’t forget to get the full white paper about each of the five major stories reporting the negative of retail sales . It’s free and it might just provide some sanity in this rush to sensationalize and paint with a broad red brush.

Oh and a bit of background on the whole “Black Friday” obsession.

The day after Thanksgiving has long served as the unofficial start of the Christmas shopping season since the start of the first Macy’s Thanksgiving Day Parade back in 1924. However the term “Black Friday” applied to retail only began to appear in 1960 and 1970 Philadelphia media accounts as a term used by city police, cab and bus drivers to refer to the busiest shopping and traffic day in the city when the streets and department stores of downtown Philadelphia were mobbed by shoppers – giving the police and retailers plenty of crowd control headaches.

By the 1980s, an “urban legend” began circulating that “Black Friday” was the day that retailers move from “red ink” (losses) to “black ink” (profits). However, and while “Black Friday” is an important day for the bottom line of retailers, it should be noted that most big retailers earn a profit every quarter. Nevertheless, there are some retailers that are so heavily dependent upon “Black Friday” and the Christmas holiday season that this time of year may in fact erase all loses from the previous three quarters and account for all of the year’s profits.

Retailers: Go Cheap This Holiday & Sink Your Sales

In spite of the best sales increases in 14 months, I continue to read articles telling retailers they need to “dumb down” their offerings to attract the more budget-minded post-recession consumer. Of course, that is conventional wisdom out there. Nothing new.

That’s why if you adopt this, you’ll be sunk. By dumbing down, cheapening up, cutting off the higher priced items, you’ll look just like everyone else; in particular the big boxes. That means you’ll have to sell more of the low-priced stuff to hope you can make up the profit loss from larger ticket wants. And when it doesn’t, you’ll pile the discounts on completing the downward spiral.

Don’t care if you are a nursery, gift, toy, apparel, furniture or hardware store. The more alike you are to the dirt-scratcher who marks up minimally, the more you meld into the mass market.

Let’s be honest dads, you shop to show your affection. You will still shop late for your wife’s and kids holiday gifts. From my experience. We retailers love to see you the week prior to Christmas.

Are men shopping on “price” or “Wow?” I think it is the WOW retailers must look for.

Moms, sure there are times you look for the “shut up” toy but at the holidays it is about how you feel watching them play, especially if they are younger.

Retailers, that’s what you need to remember this holiday, it isn’t the cheap, it’s the love they will be showing. Yes its materialistic, that is what retail is.