Archive for the ‘Retail in Action’ Category
Waitrose – you’ve got us!
Much to my husband’s distress I am a Waitrose fan. I cannot say food shopping is a favourite past time for me, but Waitrose is just not in the same league as the ubiquitous ‘big shop’.
In fact when I shop at Waitrose it is not a ‘big shop’ it generally turns into a huge one. For this reason I could not possibly visit Waitrose weekly. When I do however, it is an absolute pleasure to spend time there. The environment, the product, the people, the customer service is right up my street – and the street of all those who regularly vote it as their favourite supermarket or the best for service.
Everything about the store now, from its windows, the aisles, the staff is crisp, clean and fresh. The team takes our expectations and 99.9% of the time exceeds it.
My 3 year old loves it too. The staff are attentive generally but come into their own at the fish counter. My daughter loves to look at fish in every supermarket or market we go to; but only in Waitrose do staff enter into her world and entertain her. (The team behind ‘FiSH!’ would be delighted!) It is quite remarkable the difference in both her experience and her resulting behaviour whilst we spend up to 2 hours (seriously!) walking the aisles. Of course as all good retailers know, if the baby is happy, mummy is happy and more time and money is spent in the shop.
There is another bonus to shopping at Waitrose. The pleasure the customers experience is borne out in their temperament. People are generally in a pleasant mood, smile at each other, help each other find that elusive product and will even stop on occasion for a quick chat with complete strangers. Shop elsewhere and the experience has more in common with the London tube.
I was therefore delighted to see that Mary Portas covered it in her regular Telegraph column, voting it a well deserved 9 out 10 and that she too is a raving fan.
Waitrose knows its customer and works hard to exceed their expectations in all that they do. It really feels like the customer is at the centre of every part of the retail operation and at the heart of every Waitrose Partner.
As a nation we have come to expect poor service. But Waitrose proves when we get exceptional service in every sense, we are delighted, hooked and tell the world.
Customer Service
Customers turning to discounters – but what of their service?
The rising costs of petrol and food have led many of us to reassess our spending habits. Many now split their shopping between retailers to ensure they get the best possible value.
I spoke to a group who have changed their shopping habits over the last 3 years. These couples and families are now heading to discount food retailers to purchase basic product in bulk, such as tinned food, bottled water, drinks and household products. Whilst shopping they are often enticed by other products like large slabs of pizza “perfect for parties!”
So I went to check out a local discounter for myself.
The main reason for the switch to discounters is price. I found there are certainly some great prices to be had on basic product at discount stores. The best prices were those on promotional offer. Those at their usual price however are often in line with the big 4 and some items can be considerably more expensive. To get the best deals consumers need to know their prices and price per weight as packaging does vary. A single pack of Lurpak spread was the same price as Sainsbury’s; however Sainsbury’s had a BOGOF offer running on the same product. Bleach at this discounter was at 80 pence; however a branded promotion at Sainsbury’s offered 2 bottles for £1.20. Sainsbury’s basic range of bottled water also beat the discounter on price per bottle without having to buy a bulk of 6.
The discount environment is generally in keeping with the ethos and promotional product was stacked high. Some outlets have better standards than others, but most of the people I spoke to just don’t mind. “When I am buying tins and bottles I don’t require the same standards as I do when buying fresh meat” said one male shopper. It can also be difficult to navigate the store. I had to do several laps of my local outlet before I had located each product category. However the converts really don’t mind this, especially those just popping in for bottled water.
Sales floor staff are few and far between and few customers shopping here expected to see any. Price tickets and signage were a little confusing and certainly took some deciphering. I noticed that people shopped much more slowly than at a comparable Sainsbury’s or Tesco. They spent much longer looking at each product and its price.
The set up at the tills does disappoint those I spoke to. Some retailers have little space at the till to pack which can make the experience a little pressured and not accepting credit cards is inconvenient.
Having visited the discounter I went on to Sainsbury to compare prices. I spotted 4 different customers who had done the same. Talking to them they all had the same story. They buy their basic cupboard items at the discounter, fresh meat and produce from Sainsbury’s.
Personally, they are not for me. Having compared prices they can be matched or beaten by the larger supermarkets if you opt for basic ranges or make the most of the price promotions. In addition, the little things add up – the environment, the ease of paying and packing for example, not to mention the time and money saved by visiting just one retailer.
Those I spoke to, have converted to a new shopping style. These discounters have the opportunity to further maximise their business. Customers accept and acknowledge that service in these outlets will be basic. However by focusing on service in the wider sense, in terms of ticketing and the till point operation they may well find that they can increase their popularity further.
Analyse and act now to maximise performance.
With September reporting a month of dipped consumer confidence it seems like the first week of October has been a week of launches and ‘firsts’ to drive increased footfall, sales and loyalty.
There was the John Lewis new online pledge, Marks and Spencer’s first stand alone beauty store, the Waitrose concept store and Boots adding 50 retailers to their loyalty card. Each retailer focused on their strengths, looking to turn them into further competitive advantage.
We have also seen retailers deliver short sharp sales like House of Fraser and Next and as the Christmas cards and wrap are laid out we are left wondering what the next few months will bring.
Independent and small retail businesses may feel like they are getting left behind, or even that all this is irrelevant to them. However now is the time for analysis and action.
Now is the time for smaller retailers to review their offer, their own competitive advantage and ensure they really are focusing on the customer and their own strengths.
Now is a good time to revisit the position with regard to stock and sales and re-forecast their projected performance through the Season of Goodwill and make adjustments where necessary.
Now is the time to look again and focus on the plan for the next 11.5 weeks as regards their windows, visual merchandising and shop layout. How will these changes entice the customer in again and again over the next 3 months, to maintain the customer’s interest within the store and lead them to make a purchase?
Now is the time to re-consider any activities, marketing and promotions that can be instigated to drive footfall and sales.
What we have seen over the last week are high street retailers grabbing our attention with the launch of the new or the sale of the old. Get in amongst them and grab your customer’s attention too!
Move your stock to move your stock!
I will keep this post very short! It is a simple message which will have a massive impact on your business, but it is a message many retailers still forget.
I talked in the last blog about changing your windows to create interest. You need to do the same internally too. Regular, simple colour theme changes, visual merchandising tweaks and product moves, however big or small, will attract your customer’s attention.
If a customer spots something they haven’t noticed before they will come and have another look. A local fashion retailer does this to great effect. By moving product and pairing clothing pieces with different items she creates new looks giving her customers the impression she has had new stock.
As the season progresses create new displays and new interest. Moving your stock really is proven to move your stock!
Maximise your windows and they will come!
For those who follow my tweets you’ll know that last week I had a lot to say about the windows of my local town.
Having been disappointed by lots of the summer windows I ventured out to have a look at the new autumn launches. I was overjoyed to see some fantastic windows from River Island, House of Fraser and Next. Some retailers were doing a grand job of “Back to School” too; Paperchase looked great with H&M and GAP not far behind.
But dear oh dear there were some shockers. Despite my last 2 blogs, I am always a loyal supporter of M&S, but their “Back to School” was as inspiring as, well, limp card, not to mention a completely empty window showing a poorly merchandised bedding section.
There were many independent retailers committing the same crimes. I was asked last week by a journalist if it was a question of resources i.e. the big retailers have money and experts to throw at it. Standing in front of the M&S window I think answered that.
This is not about money and resources it is about passion. It is about caring about your business and your customer.
Money for advertising is tight for most at the moment, for many independents the budget is non existent. As your windows could be your only advert it is even more important to spend time on them.
Windows should grab your customers’ attention, stop them in their tracks and invite them over the threshold.
Windows should tell a story about your business, explain what your shop is all about, and bare the shop’s soul! If you know your customer and ensure that everything you do is focussed on attracting their attention your windows should appeal to them too.
Keep windows fresh, a local independent fashion retailer changes her windows weekly at best, fortnightly at worst. It is important to keep grabbing the customer’s attention with different stock and colours. This shop manages to really tell a simple story every time, sets a scene and grabs attention.
Windows don’t need to cost a fortune. Use your product for maximum impact at minimal cost. I could tell you about the wonderful deli full of beautiful product inside but none of the product has made it to the window, nothing screams of the freshness you’ll discover behind the door. It is a terrible sin when a window shouts “Beware! There’s dreadful stock in there!”
A coffee and deli shop used simple china cups overflowing with coffee beans to great effect. Unfortunately 3 different sized paper coffee cups were lodged in between. Someone had clearly decided to let us know “we do take away”, it spoiled the effect somewhat. Now, had they taken those 3 different sized cups, in the 3 different colours and put them together stacked or hanging like a piece of art – wow! Now you’ve got my attention, now I’m smiling and stopping and popping in!
Many independents are facing increased competition from high street names. Take a casual clothing retailer who sells great quality product and brands. Internally the shop is strong in both layout and design; the windows have always followed the same simple story. This has worked well, until Fat Face and Superdry. The simple windows now look sad and a little old fashioned next to their neighbours. This retailer needs to raise their game to ensure their windows compete for attention and it can do this with minimal or no expense.
Finally you should make sure that whatever time of year it is, your windows remain high on the priority list. Many of the windows I saw last week displayed a confusion I knew I would find inside “We are sort of still in sale, but we have some new autumn stuff too…”
One surf and ski shop window displaying summer sale product had dredged up some dusty fabric flowers and beach paraphernalia and thrown it on the window floor. The message it conveyed was simple: “We’ve still got sale left, but it is now the dregs.” Compare this to a fantastic window by the independent Walnut and Weave. Their window was totally in sale, every product a sale item displayed with care. I watched as people stopped, walked the window and then went in.
So let your windows be your very best advert, shout positively about everything that is good about your empire, invite your customer in and they will come.
Retailing – but not as we know it!
I have worked with many convenience and food store retailers wanting to improve their sales and profit performance. Somewhere along the line they have forgotten how to focus their business to drive sales. In some case they have never really known what was working so they are not sure what to do to put it right.
Mary Queen of Shops on BBC2 had us all hooked – retailers and laymen alike. Many of my friends and family who are not retailers liked to raise their eyebrows and gasp at the terrible retailing sins committed, adding “gosh even I could see why they weren’t taking money!”
I wanted to write something this morning for all those retailers who are struggling to keep their heads above water to let them know that even the best retailers, those with comparatively huge teams and budgets at their disposal, get it wrong sometimes.
Marks and Spencer have introduced a range of our favourite brands. I had been receiving feedback from all corners of the UK on what loyal customers thought. So last week I went to check it out for myself.
My first reaction: What a mess!
My next: What are they doing?
And finally: What were they thinking? This is M&S, but not as I know it.
Sandwiched between cards and gifts and fresh fruit and salads there was a shelving display of ambient, branded products unceremoniously dumped on shelves. Not only was the positioning out of kilter with the rest of the food hall, the display standards were the poorest I have seen anywhere for a while. Further feedback reveals a similar story across the UK.
As a customer, if you want washing powder you will go to the household section of a supermarket; if you want a deodorant you will go to the toiletries department not to the ‘branded aisle’ just in case one of “our favourite brands” happens to be a deodorant.
This amateur display sent a very clear message: We have these new products, but we are not quite sure what to do with them. We are in a panic to get them onto the sales floor to display and sell them.
The stores I have had feedback about could well be part of a test to establish the best position for the products, or they may be temporary displays to let customers know they are ‘new’ in store. However the overwhelming customer response to the handling of new arrivals is not a positive one.
The brands are alien to the food hall but the product categories are not. Instead of using tried and tested layout and display formulas, these products were treated like foreign objects.
So whilst we all sit in armchairs despairing at independent retailers getting it so wrong, let’s not forget - even the best can take their eye off the ball.
Off Course and Struggling? Go back to the basics.
Have you ever noticed a new shop open in your town?
The best new shops know their USP and everything they do enhances it. Their windows draw you to them; they have crisp, clear displays and coherent, consistent brand messages.
Have you ever noticed when a shop starts to crowd its sales floor with new product introductions? Product which doesn’t quite go with the rest of the shop? Or windows start to get a little ‘overflowing’ with no apparent theme?
I grew up in a seaside village and witnessed this constantly. Retailers would spot a ‘gap in the market’ only to realise that actually, the gap wasn’t quite as big as they thought it was. More products would be crammed in to deliver add on sales; more stock taken into the window, just in case the passer by had missed the range. Eventually they would either turn into yet another gift shop or shut up shop altogether.
As I walk our high streets today I am sadly seeing more of this, once beautiful shops looking off course and struggling against the tide.
With those I am lucky enough to work with, I always go back to the beginning, back to the basics. I start by trying to understand what passion started the business in the first place so that we can start to move forward.
We always go back to the customer. Who is the customer? What do they want and need and how can the shop deliver it?
Knowing your customer and what they want is one thing, knowing them intimately will allow you to suggest products and services that you can offer that others don’t. So research your market fully, look again at your target customer and look again your competition. Where can you compete with your competitors and where is it best to leave them to it?
Re-kindle or re-develop your USP if required and take it to your customer. Don’t wait for them to find you. Shout about who you are, what you do, where to find you and why you, your product and your services are different.
Deliver everything you do in line with your USP and your company values. Ensure that every single customer touch point along the ‘path to payment’ strengthens your offer, your service and your brand.
Return to the values that started your business. Know your customer and then deliver for them. Be crisp, clear and consistent in all that you deliver and your shop will ride the waves.
Stock piling old stock? Clear the decks and move forward.
A few years ago I worked with a fashion retailer whose business was failing fast. Sales were dropping like a stone, stock and debt levels were soaring.
The stockroom on site and an external warehouse were overflowing. During sale this product would be dragged out only to pack it back up at the end of the sale period.
They would sometimes run short term events of stock clearance, to no avail. The sale prices or reductions were the same each sale, each year. The business owner was not prepared to reduce the stock below cost; he was not prepared to make a loss.
However he was prepared to keep paying to store it. The knock on effect to business was that the “open to buy” figures were in fact an overdraft. There was no available cash to buy new season, fashionable stock. This fashion retailer was going out of fashion and out of business fast.
In the current climate I have been working with businesses in similar situations. Businesses hanging on to stock, sure that in the next sale it will shift, sure when things pick up again the stock will sell through. All the time the product is getting dirty, damaged and dated. Not only will it damage reputation and image, its value is plummeting and it is sucking further resource from businesses that are struggling to stay afloat.
So as with the fashion retailer I would offer this advice – accept that you have already made the loss, accept that it is never going to sell and it will only drag your business down further. Your customer is sending you a message; ignore it at your peril.
Reduce the price right down, create an event around its sale and let it go. It will free up space both front and back of house and it will supply much needed capital to allow you to procure fresh stock and move forward.
Create a Buzz!
Have you been at a market and noticed a throng of people gathered around one stall?
Have you walked through a public garden or square, like Covent Garden, and heard or seen a crowd not knowing what is beyond them?
Have you ever gone into a shop with a sale and then noticed a crowd of people gathered around one rail which you can’t see.
However busy you are, if you are like me, you probably just have to sneak a quick peek. Just what is it that everyone else is looking at? What am I missing? It has attracted a crowd so it must be great, right?
I was recently at an exhibition and am delighted to say I had a steady stream of people coming to see me, often patiently waiting for me to finish talking to someone else. Having worked though a small queue I came to a lady at the end, who seemed genuinely thrilled it was her turn. “What is it that you do?” she said. I explained. “Oh, that’s interesting” she said when I had finished. “I wish I ran a shop. I would definitely ask you to work with me. I only came over because everyone else seemed to be at your stand.”
It reminded me of our need to be involved, our need not to ‘miss out’ on the action. Creating a buzz around your business draws people to it like moths to a flame.
So what is it that we can do to create a buzz around our retail businesses?
Firstly make sure you have something to offer that sets you apart from the competition and then let people know. Never miss an opportunity to shout about what you do, your product, your services and why you are different to the rest.
If you know your customer intimately you will know what will excite them and deliver them to your door. If you run out of ideas, ask them!
Shout about new products, rave about new staff, enthuse about the latest launch, celebrate the xth customer of the day; deliver regular changes to excite and build anticipation such as to windows, in store displays, promotional hot spots, in store competitions; carry out tastings, events for loyal customers, organise giveaways with supplier support, make the summer sale a party…I could go on and on.
Create a buzz consistently and you will ensure you not only draw a crowd but you stand head and shoulders above your competitors.
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