Specialty Retail Blog

There’s an anonymous anecdote that tells the tale of two cavemen who were shivering and trying to stay warm by the fire in their cave while outside it was uncomfortably cold, raining, thundering and lightning.

The first caveman turned to the other and said, “You know, we never had this crazy weather before they started using bows and arrows.”*

It’s humorous in its overt silliness, yet when you think about it, you can clearly see the steps the fictitious caveman took to reach his fallacious conclusion. In his simple, uncomplicated life, there had been two major changes that had occurred, one before the other. So, to him, it was obvious that the new use of weapons “caused” the changes in the weather. Aesop would say the moral of the story is when two changes occur, one is not necessarily guilty of – or possibly not even related to – the other.

There are many changes happening now in the retail world. It’s important to see the full picture to+ know what is real.

*Idea Bank McMurray Publishing 2008

Robert Reedy has <a href=”http://www.prlog.org/10552877-northern-california-retailers-can-now-win-at-retail.html?embed”>joined the Management One team.</a> He serves primarily the San Francisco Bay area and Northern California, although he accepts clients outside of that area.

We are looking for a few good Retailers with at least 10 years of retail experience that want to begin helping other retailers.  Management One is the source for the best merchandise planning (sales forecasting, OTB, cash flow planning), retail business guidance (Strategy, leadership, management, training) and other assistance for independent retailers.  If you have retail management or buying experience and want to move into using that knowledge to become a retail consultant, give us a call. We train and certify our affiliates in marketing, selling, delivering and getting great results for clients using the Management One processes.  If this sounds like your future, we can make it happen for you.

I was waiting for my wife to shop at the mall the other day and began watching kids at an arcade. The game that intrigued me the most was something like Bob a Bunny. I used to play that with my kids and was surprised to see it still existed. The difference was this time I was an outsider, not involved with a mallet waiting for the next pesky bunny to rear its head so I could bop it on the head. As an outsider I could see the relevance of the game to small businesses with which we deal.

Many business owners operate their business like the bop a bunny. They come to work each morning armed with a mallet and then wait for the phone to ring or a shipment to be delayed. When it happens they spring into action with the hammer. Bop! Then the accountant sends the financial report for the month. Expenses are too high. Bop! We restrict everyone’s time and maybe let one person go. So then quality and service suffer so what do we do…. Bop! You would think that once you bop a bunny it would stay down but no, here it comes again. The same bunny you just bopped a second ago.

The fact is that without a strategy and a view of the business from an overall perspective, bopping one bunny will cause another to pop up somewhere else. Your business struggles to survive but you never really prosper. At some point your money runs out and it’s Game Over. Now you search your pockets to find another infusion of capital to keep stay in the game. If you don’t change something though, that quarter will run out after you bop a few more bunnies.

The problem is that if all you have is a mallet, every problem and issue is addressed like the bunny. Problem solving takes a real process, time, effort and diligence. When we see a crisis, we look for the underlying problem in order to find a solution to eliminate the problem. That’s one bunny that won’t pop up again.

In order to solve problems effectively we must first establish a strategy for the business. In bop a bunny the goal is to get as many points as possible. In business it is to get a certain revenue or profit. The problem in business is that it isn’t as simple as just taking a mallet and bopping a bunny. The bunnies have no interest in your success or failure. That isn’t true of the bunnies you are bopping in your business. Your bank, your employees and your customers all care about how you treat them and handle their concerns, issues and problems. They are willing to contribute to the success of the business IF you let them. Successful businesses have meaningful strategic plans and solve problems efficiently and effectively. Businesses that struggle seem to bop at problems just like the kids in that arcade.

Last month I wrote about the changing terrain of marketing success. I introduced the need to build a community around your company based on values in addition to demographics. Management One® developed the Winning@Marketing™ process to achieve that transition. Many readers felt that more explanation would be helpful.

Brands and your marketing are about establishing an image. People long ago started moving away from the old “neighborhood”. They had a need to meld into new communities and environments. Just as the internet changed how we do so many things, it is changing the socialization process too. Today many do much of their socializing online to find their niche and to socialize. Others struggle to find their niche, their identity and the image they want to portray.

What is the image of people who shop in your store? Who in your market “wants to be like them”? Do others want to be associated with them? Obviously very few owners can afford Tiger Woods or Cameron Diaz as a spokesperson for their stores to establish that image. Lots of people want to be in their circle! Other ways must be found to identify and establish the image of someone who shops with you. That is where the internet can be a terrific and potent tool.

What are the images people have of using your product? When you sell something and the customer uses it or puts it on, how does he/she feel? How is he/she supposed to feel? Does that feeling provide an attachment to your store or a community? Some stores have an image of exclusivity and of being expensive. Certain customers may have values where expensive and exclusive items and activities are important. To others, those things may be ostentatious and wasteful. Communities grow up around shared values!

A good marketing strategy that includes e-mail, the internet and well-crafted direct marketing establishes the right image with which your community will identify. That image prepares them for the right feeling when they get the goods home. It catches their interest and motivates them to shop with you.

Sometimes events or values establish a community. Dick Hite, owner of Norton Ditto, an upscale men’s store in Houston , Texas is busy raising money for a local charity. At the store the trunk shows and events are all focused on raising money for that charity. His store, which is reflected in his own values, and the community surrounding it are growing together nicely.

A retail community around your store is about mutual cognitive perceptions. Plant the right seeds and the community will grow. Your marketing needs more than fertilizer (investment) to help the growth! A solid marketing strategy to use that investment wisely is the right move and Winning@Marketing is designed to provide that direction.

Email to a Friend

The Role of the GMM

The General Merchandising Manager in a retail store plays a critical role to the key to success. The GMM must coordinate the strategy, marketing and sales for the season with the buyers in order to give the store a direction that will attract customers and build a solid reputation. It is also important that the GMM is able to communicate that information to the Management One® Winning@Retail™ affiliate.

When preparing merchandising plans for a client, we use a high tech/high touch aspect includes input and feedback from the buyers and the GMM at the store.The more the planners understand the direction the store is taking, the closer the plan will be to what is needed to make the strategy into reality!