RetailBizBlog

Recession is slowing? We are on the edge of recovery? I have read several very encouraging articles over the past few days. Unemployment claims did not go up. Housing prices increased for the first time in years, and housing sales have seen their fourth straight month of increases. Car sales went up...duh! But the one I like to look at is the consumer confidence index. When it is all said and done, it is the consumers who determine if they are gonna start spending money again. Consumer confidence jumped a little higher than expected last month. It is now around 57pts which is a sharp increase from the lowest point of 23 hit just this past January. Unfortunately, it is still well below 90, which is the line of a stable economy, and even further from 110 which indicates strong growth. (Yahoo - Associated Press) Throughout this blog I have encouraged everyone to take control of their own stores. It has been discouraging to see sales decline, and stores close. People are still ...

So far, I have talked much about what kind of employee and leader companies should be looking for. There is another side of that coin. Employees, must also try to seek out employers that stand for and practice the things that are most important to them. In 2002, my sister graduated from Tuck's MBA program. Peter Dolan (then CEO of Bristol-Meyers Squibb) gave the investiture address. Most of the time at such addresses, I may find myself flipping through the program trying to determine how much longer I will have to endure this speech. Not this time. Mr. Dolan, who delivered this speech in the midst of his own corporate scandal, mentioned something very early on, that I have always remembered. He discussed that even in the face of growth and opportunity, you must keep your presence of mind to be aware that it is not costing your values or integrity. He faced such opportunity, and walked away, as the methods to achieve that opportunity no longer were in line with his own value...

I had a phone interview yesterday. Since I have started writing this blog, I have become very aware of the actions and qualities of those around me in the retail world. After I had this interview, I collected my thoughts, and it occurred to me "WOW!! That girl really knows what she is doing!!" A phone interview is a very unique thing. You don't have all the benefits of meeting someone face-to-face. You can't see their reactions, their mannerisms, or even if they present the right image for you. You also don't have the ability to control the level of distractions for the candidate. With all these things against you, how do you get it right? I am simply going to tell how this person conducted this interview...cause THIS is how you do it!! She started off by introducing herself and very clearly explaining her role in both the company and in the interview process. Throughout that part, she used easy and energetic language as well as several different tones ...

I have written much about leadership, and what some of the things are that need to happen for retailers to push through this sluggish economy. I have received and email asking me to provide my definition of a good leader or leadership. I thought it was relevant enough to share in this forum. My personal definition of a strong Leader is: An individual that by a combination of their words and actions inspires people to act towards a vision that they have clearly provided. I firmly believe that leadership is a perfect marriage between communication and vision. If you do not know where you have been, or where you are going, it is impossible to get people to follow. Without vision, there is no leadership. Even if you have a strong vision, then comes the tough part - communicating it in such a way that others don't just agree with you, the believe in you! Unfortunately, I don't know anyone that can train on how to truly be a leader (although several leadership classes exist). ...

I have had a poll on my page for a few days now asking people which level of service they prefer when calling a company. I have also hosted several discussions about the topic. The result was somewhat surprising. The stats (at time of this article) were a lot closer than I expected between waiting to speak with a live person, and using an automated system that has the option to speak with a person. I believe that the automated system is a necessary avenue most companies need to explore during this penny-pinching economy. If it is structured properly, it is quick, convenient, and available whenever I need it! Unfortunately, most are not structured properly. There are pretty much two primary purposes for using this kind of system. 1. Informational/Bill Pay - This option will give the caller such things as; location, directions, business hours, account information, other FAQ's. Most of these are structured in such a way that are quick and efficient for callers to use. 2. Call ...

As with coaching, it is just as important to understand the person you are talking to. The result will be much more significant if the discussion is tailored to the individual. Even more important though is understanding your employee's ability to receive criticism. Some people welcome criticism openly, as they understand it is only designed to improve performance. Unfortunately, most people just don't like being told that they are not doing something correctly. When counseling an employee, it is very important to convey that you are simply trying to correct or improve a behavior or an action, you are not attacking them as a person in any way. The easiest way to accomplish this is to simply discuss just the action in question. It is best to avoid using directed words like "you", or stating other employees opinions about the action, because that makes the conversation about the employee and not the behavior. It is much easier to counsel an employee on an action ...

Coaching and Counseling are the two strongest tools a manager has to increase the productivity of their staff. Typically coaching and counseling are discussed together as they pretty much go hand-in-hand. Here I will focus on the Coaching aspect as "part 1" of this two-part article. First, I would like to identify the difference between the two. Coaching is a form of communication used to teach a new job skill, or to improve upon a current skill. Counseling, however, is used more specifically to help correct an observed behavior or a method of performing a task. For either to be successful, the most important part is being able to properly identify what form of communication would be most appropriate for the associate receiving it. I have usually seen employees grouped into 4 basic categories. 1. No Experience/New - It is this person's first job. They need the MOST communication. If you delegate them a task without thorough direction, they will not complete it ef...

The most important people in any company that use retail outlets to sell their products are the Store Managers. Every company has a basic job description of what a successful store manager should be capable of. The job description that no company can create is a list of the intangible traits that a store manager should bring to a company. A truly successful store manager recognizes and embraces that they are responsible for the "face" of their company to the public. Unfortunately, it seems that there are way too many store managers that do not understand that point. Store Managers must be constantly setting the bar, and then raising the bar. One area that seems to be easily forgotten, but costs tons of payroll is receiving. Typically the receiving team is very small, and works with little to no supervision. It is a very easy scenario for people to lose their drive and ultimately a huge drop in productivity occurs. It is up to the Store Manager to set that standard, up...

Last Wednesday, I posted that I was attempting to test the "Social Networking" power of two of the most popular networking websites; Facebook and Myspace. I ran several links to this bulletin on both sites. I also posted several links on other popular sites, LinkedIn and Twitter, asking people to vote on which site would provide the best source of traffic that would benefit a retailer looking to advertise. Lastly, I created discussion groups asking the same question. The winner by overwhelming landslide- .... drum roll please .......FACEBOOK!!! Facebook, was described as having a much more active community. Their interface is much more organized and easy to use than Myspace. There were several comments from Myspace users that would switch exclusively to Facebook if Facebook were willing to allow for profile modification and a music player. I must also note, that Myspace almost came in third place behind several "write-in" votes for Twitter. Part of this test ...

I was forwarded an article about several quotes from Costco Founder and CEO, James Sinegal. Quotations From James Sinegal He mentions several things that I think most retailers should listen to. I particularly like two of the quotes: 1. "I think the biggest single thing that causes difficulty in the business world is the short-term view. We become obsessed with it. But it forces bad decisions" With all the growth that has occurred over the last several years, many retailers got caught up in the short-term, and did not make wise decisions that would protect themselves from the inevitable slow down in the long-term. I think Mr. Sinegal hit the nail right on the head with that one! 2. "This is almost like show business. I mean, every day you're opening up and it's show time." This has actually been a saying I have heard in variations for years. Those who practice it do very well. This translates to everything from the cleanliness and visual standard of th...

AOL started it. With very popular chat rooms and a skeletal, but functional, social network. Myspace , Facebook , Twitter , Bebo , Friendster , LinkedIN and several others have since emerged. All offering something unique to make their platform the biggest and most successful. As I learn more about blog writing/internet marketing (yes, they go hand-in-hand), it is clear that these sites drive the "personality" that the online society has taken. To be successful online, it is clear that a strong and steady participation and presence on these sites is critical. This blog generates reports that allow me to view the sources of my daily traffic. So far, Facebook, Myspace, and LinkedIn, are responsible for a LARGE portion of my visitors. I am pretty much a "nobody" writing on a topic that interests me. I realize how amazing it is that because of the internet, people from around the world are reading what I am writing!! I wonder how powerful these sites would be...

As with Whole Foods, Starbucks is another major company that has taken a look at themselves and are offering something new. A Starbucks that is not a "Starbucks"!! NPR reported Saturday, Starbucks Goes Into Stealth Mode . Starbucks, a company that has done pretty much everything it can do, has found a way to continue to grow in their same niche. They looked outside themselves, the ones who commercialized and popularized the industry, to find out what more they could do. They "dropped" their own name, and essentially the brand recognition that they have "taken over the world" to achieve, to offer a "mom-and-pop" feeling coffee house experience. Two more additions to this new venture is the addition of alcoholic beverages and live music. I do admire and even encourage major corporations to take a look at themselves to discover opportunities for growth. However, I do have a criticism on this Starbucks approach. If they identified the late(r...

In a time when customers are demanding value and are really trying to stretch ever dollar to it's limit, some companies are doing their part to help. Whole Foods Markets are giving "value tours" to their customers to show them that even at a store with a pricey reputation, value is within reach. You can read more about their approach in Hawaii's Star Bulletin's: Getting the Whole Picture. I previously discussed the importance of corporate image to consumers. Whole Foods, embraced their reputation as a high-priced grocery retailer. They offer a level of quality and freshness that has raised the bar in the grocery industry. Instead of lowering prices and sacrificing the bottom line to grow their seemingly cult-like following, they took a more pro-active approach by educating their customers on more cost-conscious ways to shop. This is the kind of "outside-the-box" approach that more companies need to explore.

As I was walking the mall this past weekend I noticed a few strange trends. There were a lot of people in the mall, but there were lots of stores without a single customer. I chatted up some of the employees, and consistently received this generic response, "Yeah, it has been kinda slow lately". Then I went into some of the more "crowded" stores, and heard things like,"We are beating last year!", "Back to school seems to be starting early!", and "The mall seems to be picking up.". How can this be? I did notice one common thread that distinguished all of the slow stores from the busy stores. The stores that were slow were messy and dark. There were fingerprints allover the windows, dust-bunnies in every corner (one actually swirled around the table when I picked up a bag), and lights out around the store. If it is so "slow" how is there no time to clean or change lights? Then, to top it off, the employees had this ki...

Employee confidence has been a major issue that I have tried to address. I read an article today detailing plans of AOL's new CEO Tim Armstrong. "Can Tim Armstrong Think Different at AOL" His description of the "core" problem at AOL, was the employees have a "crisis of confidence". I LOVE that expression!! That fits almost everything I have been saying about the state of many employees! AOL, has been a major web player, well, before I even knew there was a "web" (25years!). Previous CEOs have taken on numerous projects and partnerships (Time Warner), all in an effort to keep AOL competitive with the exponential growth of competitors like Google, Microsoft, and Yahoo. Mr. Armstrong, (formerly of Google's advertising division) has a "new" vision for AOL. What struck me, is it is not far from the "original" vision of AOL. I really wish AOL the best of luck. I am excited to see a Leader remembering where their s...

This is a question I keep hearing as I work on this blog. It seems that no matter where you go, that companies pride themselves on putting the customer first, but that doesn't really seem to be the truth. I have found nightmare stories from telephone customer service operators, to in store employees. But I have also read some amazing stories of how an employee went well beyond their job description to make a customer happy. When I got into retail in the early 90's, customer service was king. Empowerment for employees to that end, was almost unlimited. Recognition for the individuals going above and beyond was common. It was a time when companies realized it was their people and their people's ideas and successes that drove the company's success. Southwest Airlines exploded by taking a radical approach to customer service. At the same time they also took a radical approach in the treatment of their people, doing such things as "costume day". Work was f...

I wanted to let everyone know, in response to reader feedback, I have decided to revamp the "appearance" of this blog. Please be patient as some of the features from the old page are re-incorporated into this one. My priority is getting my "archive" working again. In the meantime, if you would like to view previous articles, there is an "older post" link at the bottom of this page. I hope you like the "new" look! "Good things come to those who wait!" -Heinz "57" Ketchup

We have now discussed everything from recruiting top talent to actually hiring top talent. Now, time has passed and it is time for a performance review. Are they really top talent? Performance reviews when administered effectively can be the single strongest training tool a company can offer. Unfortunately, due to the nature of a performance review, it can also be the single thing that discourages an employee, ultimately ending in their resignation. Performance reviews are designed to give feedback in an effort to help an employee grow and to increase their performance. Rarely, is all the information discussed positive. Sometimes, it can even seem more negative than anything else. So, the goal is to immediately put the employee on the same page as the reviewer. Surprises are where long lasting issues arise. When writing the review always ensure that you are remaining 100% objective about that particular individual. Also, reviews should be properly balanced. I once had to adm...

There are many different areas in which a company can look to cut their costs. But there is one area in particular that I believe should remain "untouchable". People. Whether it is training, or salaries, or benefit packages, the investment in your people will always remain your best investment. Training should be of paramount importance to all companies. The growth and development of your people directly translates to the growth and development of your company. Training should be an ongoing process. Many companies will run a training seminar, only to never talk about it again. The expense of hiring and training a new employee is very high, so decrease your turnover and cut your costs by keeping your employees well trained. Many companies have scaled back or even eliminated employee benefits and bonuses. It is common knowledge that payroll will always remain the most controllable expense, so it seems natural to institute pay-cuts. That is not the right way to go abou...

As we are all searching for the next best way to cut costs, I ran across an old article about an approach Delta Airlines took in the mid-90's. They asked their employees! On an employee suggestion, they removed the lettuce leaf that was served in their food trays as garnish to an astounding $1.4 million in annual savings! http://gtalumni.org/Publications/magazine/win93/delta.html I recently worked for a company that was so incredibly operationally inefficient that I was amazed they were still in business. Three months later, they weren't! From having way too much lighting in the stock areas, to a time-wasting price change procedure, to unnecessary shipping costs($4ship fee for a $.99 item), to incredible wastes of paper (I actually counted a minimum of 45 sheets per day wasted...in one store). This store had so many little things that could have completely changed the cost of business, it is a shame they didn't listen to their employees. Employees may not have t...

Unfortunately, I read several articles today detailing the decreasing sales of several major retailers (in fact most major retailers) over last year same store sales. I have been attempting to keep my posts encouraging and solution based. I have made mention to creativity as a necessity. It will be the dominant trait in those that bring us forward. But as detailed here: http://www.my-creativeteam.com/blog/?p=467 , we ALL have that creative trait. Just believe.

The other day I took my daughter to see her doctor. While we were waiting in the office, I notice a quote framed on the wall attributed to Mahatma Gandhi "A customer is the most important visitor on our premises, he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so." I really liked this quote, especially in today's retail climate. I really feel that these words almost summarize much of what I have been saying in my blog thus fa...

Wow, so this will be my first "look what I found" entry! While surfing the web for some inspiration for my next article(s), I stumbled upon a website called www.customerssuck.com. It is pretty much a site for retail employees to share their "customer nightmare" stories. Anyone who has worked in retail has had their fair share. I remember one guy poured a bag of wet laundry on my cashwrap and demanded reimbursement for all of it, because the shirt from our store (the only item from our store) bled on his clothes and tinted the entire load blue. To take it a step further he brought in the tag that was attached to the shirt detailing the unique dye-process would "run" and to wash with like colors (that was his proof our shirt was the culprit). One of the posts I read described a situation when a customer started pulling on locked doors to gain entry into the store five minutes past closing time. He was very "rude" because his watch told him he...

With all the talk of decreasing traffic, and customer conversion, many companies are not trying to ask for the undeliverable, they are doing their best to help you. Mailing lists, and customer information gathering has been around forever. The "old school" thought is that it is crossing a "privacy" line, and many employees don't feel comfortable asking customers for personal information. Some employees will disregard the procedures simply to save time during the checkout process. Times have changed. Email is rapidly replacing "snail mail". As percentages of households owning a computer increase, so do business opportunities for almost every retailer. Direct mail advertising is disappearing. It is resulting in less and less customer impressions, is expensive, and is not very "green". People are getting more comfortable with giving out an email address. It doesn't necessarily give out their name, it doesn't tell where they li...

In my last post, I referred to the customer experience as being a major part of a corporate image. I received a few responses asking me to discuss that a little more. With the rapidly changing economic conditions, retail has had to evolve very quickly. Companies are being forced to reevaluate the way they are doing business, and more importantly, reevaluate the customer experience within their stores. Creativity is necessary to increase consumer spending. Ikea is known for their "maze" of sales floor, that is designed to get you to "imagine" all the possibilities to decorate your entire home and office. They incorporate a powerful combination of creative merchandising, aggressive price point marketing, an easy to find sales staff and consumer psychology. They have built a successful business model entirely centered around the customer experience. From their lay-flat packaging, to their low cost food court, Ikea is the extreme model of the customer experience...

Recently, I have been finding myself getting into discussions about corporate images. It seems that some retailers are "playing it safe" in terms of their image. They are carrying lines that have been consistent sellers. The "Gap" that I remember, was the best place to get basics and to fill the "holes" in my wardrobe...guess what? They are again! Even Abercrombie & Fitch doesn't seem so "scandalous" as they now carry an extensive offering of polos, plaids, and oxford button-downs. According to the NY Times, Eddie Bauer has filed chapter 11, and the investor group that is poised to make the buyout, is the same group that passed on Eddie Bauer in 2003 when they were also in bankruptcy trouble. Eddie Bauer executives at the time had a future vision of Eddie Bauer as a conservative womens retailer. The investment firm felt that was not a smart move considering the foundation and reputation Eddie Bauer had established for over 80 years. Now, ...

Your candidate has arrived on time. They look sharp, have a firm handshake, and look you in the eyes and smile as they introduce themselves. This person is perfect...right? Maybe not. There are several reasons why we interview, but the biggest one is the simple fact that things aren't always what they seem. You want to start your interview with casual small talk to attempt to ease the nerves of your candidate (interviews can be scary!!). Be aware of your candidate's body language. Without even asking a single question you can generally identify several character traits that can let you know a lot about the person. If your candidate seems like they are very nervous, start with questions that allow them to easily "brag" for a moment. This will typically boost their confidence enough for you to get a better read through the interview. As you are asking your "core value" focused questions, trust your instincts. If you don't feel you got a sufficient ...

With a bottomless pile of resumes to chose from, you miraculously have narrowed it down to people that you want to interview. Now, how do you prepare yourself to conduct an effective interview? It doesn't matter how many interviews you have conducted or how strong your "gut feelings" are, you must have an outline of questions you would like to ask. Many companies have identified and published their core values and supply interview forms to use based on those values. These are generally great tools to have available, especially if your company has created job specific forms. If you don't have this available to you, or do not have job specific forms, it would benefit you to create them. Again, you must identify your core values for the store and for the position. Then formulate questions that will address ALL of them. Using the core values that I have kept consistent with me (S.M.I.L.E), here are some examples of "core value" focused questions. S-(sales...

Today, there are seemingly thousands of candidates applying to every position. Some of them are amazing people that will never get noticed due to their "less than impressive" resume. Some of them are amazingly terrible candidates (we have all been excited over a resume only to be floored by someone that could barely finish a thought!) that have professionally written resumes. So, how do you read between the lines and determine which resume has the best chance of getting you that amazing employee? You need to determine specifically what you are looking for. Just reading your job description is not enough. If you have an overly talented sales staff, but are lacking operational efficiency, a glowing sales background should not be your top priority. The best approach is to examine the core strengths and weaknesses of your current team, and then determine what are the core values in a candidate that would best complement your team. Write down these "core values...

With the weakened state of our economy, there are several retailers that are turning to "conversion"(percentage of people that enter the store that make a purchase) as a primary statistical measure. Some are even initiating disciplinary action on Managers not reaching company standards. I have heard conversion goals as high as 20%. This can all be very scary. I was told early in my retail career to never make excuses to the state of my business, but instead offer what is happening to improve it. Unfortunately, "People are just not coming in" is becoming a VERY popular statement. It is only natural for a retailer to find the focus that can eliminate that excuse. I once ran a store that was a high-volume store that had fallen from its former glory to a middle volume. When I took over that store, the overwhelming notion from the staff was that customer traffic just wasn't what it used to be. I put a greeter in the front of the store and told him to physica...

Early on in my career, I developed a reputation as a top recruiter among my peers. Unfortunately, I wasn't really sure how I did it. The company I was working for at the time announced they were expanding in to a new market in Denver, Colorado. I was the one charged with recruiting candidates for these new stores. So off I went to Denver for a three day trip to "recruit" as many quality candidates as I could find. I arrived at Cherry Creek Mall, recruiting materials in my bag, and eager to meet our next great employee. After about thirty minutes of wandering the mall, I hadn't even struck up a conversation. I quickly began to realize, I didn't know anything about recruiting!! I went to the food court and sat down with a coffee and the mall directory thinking to myself, "How did I get this reputation as this recruiting genius?!" I realized that my success in the past with filling local positions, was me simply arranging interviews for people I h...

I have been in retail management for the better part of two decades, and have become a constant resource for my peers. I have done everything from hardlines to softlines, high-end to discount, small-box to big-box, single-unit to multi-unit, and have learned more than I thought I would gain in a lifetime. I have decided to create this blog as a resource to all my peers (known and unknown) on topics or situations I encounter or are presented to me. I also invite you to leave me as much feedback as you are comfortable. I welcome all questions/scenarios. I will try to address all of them. Thank you for taking the time to share with me. Enjoy!