RetailBizBlog

As the retail climate continues to change so rapidly, corporate level executives must do their best to adapt and adjust their business strategies. I have written much about what some of the steps are that can be taken both at store level and corporate level to insure your company stays ahead. The intent of this article is to educate employees as to some of the "whys" corporate makes certain decisions. The most common frustrations at the store level are usually focussed around pricing strategy and floor moves.  The typical scenario in both cases is changing something Monday to change it again on Wednesday, only to put it back on Friday.  Corporate has to look at the company as one giant store.  When your store sold $2000 on Monday and the best selling item was funky shirt, but the company sold $2.2 million and that funky shirt performed very poorly, the company needs to take that information and make a move quickly. Every single item that is sold in your store was ...

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...

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.

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...

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...

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, ...