Retail in San Diego

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Archive Page 1

Music to a Retailer’s Ears
Written by Jeff Grant, January 29, 2009

Every retailer tries to employ new and relevant methods to improve customer loyalty and increase sales. Many times shop owners start the process of creating, improving or remodeling their store by working with a store designer to improve traffic flow, lighting, colors, finishes, fixtures, merchandising etc. Though these elements are important, music can also be one of the most effective tools in any retailer’s arsenal when it comes to improving profitability and customer experience.

Research has shown that in-store music influences customers from the moment they walk in your door. It connects to a person’s emotions and can be used to relax, excite, entertain and motivate a shopper while adding value to your store’s brand. Further, music can have an influence on sales by increasing “stay time” and slowing down the pace of travel throughout a store, potentially increasing the amount of money a person will spend during their visit.

This study by Michael Morrison of Monash University in Australia presents case studies on the use of in-store music by several international brands. His critique of various retail environments from Abercrombie & Fitch to Borders Books demonstrates the importance of not just having music in your store, but making sure that the music you choose is representative of your customer’s tastes and the overall image you want for your brand.

Of course, there are critics of in-store music. Some warn of music so loud or so out of synch with the customer demographic that shoppers leave early. Target stores refrain from using music because they feel that it gives customers a way to determine just how long they have been in the store, causing them to leave earlier then they would have otherwise.

As a store designer and planner, my personal experience is that those of my clients who pay attention to the music used in their stores feel that they have increased sales and customer satisfaction. I encourage my clients to work with an experienced music provider to develop a program that works for their retail environment. Here are a few of those providers whose websites you can review:

http://www.muzak.com

http://www.dmx.com

http://www.creativeretail.com

Take some time to think about your customer base and your brand image and how music could be employed to enhance the overall success of your store. You just might have your cash registers singing right along with your customers.

A Blog’s Eye View of 2008
Written by Jeff Grant, January 7, 2009

Welcome to 2009! This past year has been an emotional roller coaster to say the least. Innovative business practices and the continued rise of technology in retail have allowed shop owners to reach out and serve their customers like never before. Unfortunately, these exciting trends have been underscored by economic catastrophe and a nose dive in consumer confidence. Through it all, I can say without a doubt that there was no difficulty finding subject matter for this blog. As is becoming tradition, I present to you my favorite posts for 2008.

You Still Have a Store? (February 4th) Evangelizing the importance of the web for a retailer’s overall strategy continued to be a common theme for this blog as noted in this post.

Addicted to Text (April 24th) Taking a cue from the Obama Campaign (or was it the other way around?), retailers harnessed the power of the text message as an alternative method of keeping in touch with their customers.

Is Your Store Your Customers’ Favorite? (June 4th) A long time mantra of mine, this ideal became even more important as the competition for customers heated up throughout the later part of 2008.

Go Green to Stay Out of the Red (September 9th) I’m incredibly pleased that this trend continued to gain steam throughout the year as retailers recognized both the environmental and financial benefits to going green.

The Many Ways to Get Into Retail (October 6th) Times of economic hardship can be windows of opportunity, and this post reminded me that the clever and the resilient can find themselves better off as a result of it.

The writing is pretty much on the wall that at least the first half of the coming year will be a difficult period for retailers both large and small. For better or worse, I’ll continue to keep you up to date on what you can do to make sure you come out the other end of this rough spot in one piece. Here’s wishing you a happy and prosperous new year – you deserve it!

Theft is on the Rise – Are You Protecting Your Business?
Written by Jeff Grant, January 6, 2009

Looks like retailers are not only selling merchandise at deep discounts – they’re also getting hit with record breaking thefts from burglaries. This store in Utah was stripped to the walls with the thieves grabbing everything including the security tapes.

The merchant had to let 9 employees go and close the shop. So how do you protect yourself?

1) Make sure your insurance covers both theft and business interruption.
2) Have a security consultant analyze your shop. How easy is it to break in to? Do you need additional alarms, security gates, etc.?
3) Assess how vulnerable you are to employee theft.

These are tough times, and with home and car burglaries also soaring don’t let your business falter by becoming a victim.

What steps are you taking right now to further protect your business?

The Family That Retails Together…
Written by Jeff Grant, December 22, 2008

…succeeds or fails together (sorry, that’s the best I could come up with). But that’s the essence of how this family operates their eclectic stores throughout Ireland, according that country’s Independent.ie.

The siblings who run the company make it a point to not take individual credit when sales are up or individual blame when sales are down. “We’ve all essentially got one voice and one vote. It’s important with us that no one has tried to push an individual agenda or individual authority…So we have a very flat structure and respect for what each other does,” the head honcho brother says.

That attitude seems to be working because even in Ireland’s down economy, their Avoca locations are doing quite well, with sales projected to equal or exceed last year’s take of 50 million euros. It’s hard to call the Avoca retail locales “stores” since they also include gourmet food, an artisan bakery, weaving mill, clothing, accessories, a design studio, cafe and gardening nurseries that are mostly set in large landscaped grounds. Like I said, eclectic.

But the siblings who run the outlets are rather eclectic as well. With no real boss to oversee things, it sounds like the business runs more on respect than on personal agendas. That’s something you can’t always do if you’re a sole proprietor. But instilling a team attitude with your associates or partners is well worth pursuing, especially in these crazy economic times. Read my headline and first sentence again. Maybe it’s time to think about how working together will prevent your retail efforts from falling apart.

Tea Shop Knows How to Brew Up Repeat Business
Written by Jeff Grant, December 16, 2008

New Mexico Tea Company sounds like the name of a big business. But it’s really just one shop whose owners think and act big. This article in New Mexico Business Weekly reveals how the mother and son who founded the Albuquerque company two years ago go to great lengths to keep their customers satisfied – and coming back for more.

They give away free glasses of freshly brewed tea, give a free ounce of bulk tea with each issue to monthly newsletter subscribers, give free tea tastings and give lots of relevant information on their website. Notice there are four instances of the word “give” in the previous sentence. That’s “give” as in “tithe,” the principle that “whatever you give away will eventually come back to you.”

Everything the duo does is designed to get another foot in the door. Even those who just come in for the free tea and don’t buy are certain to “give” the shop great word of mouth. I really like how co-owner David Edwards thinks: “A lot of [business] people get so wrapped up in the bottom line, they won’t take the risk and trust the customers to decide for themselves if they want to support the company.” Bingo!

What a great concept. He and his mom do what any successful retailer should –“give” customers something special with each shopping experience. If they like it, they’ll be back for more. If they don’t, they’ll let you know by either telling you or telling their friends. So it’s best to keep trying until you know you’re satisfying the majority.

The owners also are doing all the things a modern, tech-savvy retailer should. Their website has a blog with short, homemade videos about certain brands and products. The site also has information on the shop’s tea tastings and classes, complementary recipes, a Tea Handbook and an RSS feed for those who want automated updates. They’ve also created Facebook and MySpace pages to take advantage of social networking.

It seems like Edwards and his mom are doing just about everything right. And it shows on their bottom line: Revenues leaped from $60,000 their first year in business to $100,000 the second year. Read the article. Learn from their success. I say they’re doing a terrific job, with a capital “tea.”

Shopping Bags That Break the Mold
Written by Jeff Grant, December 9, 2008

Distinctive shopping bags are nothing new. But finding used ones listed on eBay for $15 each is. This article on Boston.com (free subscription may be required) examines how popular these status-symbol bags have become. A quote from an executive with the group that owns the New England Patriots sums up the new trend: “We spent more time designing this bag than we spent designing the items we will sell to put in it.”

Regardless of the merchandise you sell, it’s not a bad idea to offer shopping bags that help customers remember your store. You don’t have to spend a fortune; we list some very affordable bags on our site. Wherever you obtain them, add a logo or tag that makes your bags stand apart. Like the article says, they can become marketing tools that your customers use on your behalf. The article doesn’t say that bags also help with customer loyalty.

At our house, a few sturdy Crate & Barrel bags with handle grippers are always laying around, either for their originally intended use or for toting things from place to place. We’ll even take them back to the store when we know we’re going to buy something else. The bags of the yoga retailer mentioned in the article are the ones so popular that they end up on eBay. I like that the retailer urges customers to reuse them. They even urge staff at their stores to come up with ideas for encouraging this, like donating 50 cents to a local charity each time a customer reuses a bag.

Offering a great shopping bag doesn’t guarantee retail success. But by letting customers walk out the door with a handheld reminder of what you’re all about, the more likely you are to have success in the bag.

Canadians Get Aggressive with Makeovers
Written by Jeff Grant, December 3, 2008

Our neighbors to the north are great role models for large and small retailers alike. Good thing, since retail is Canada’s largest employer, creating about 2 million jobs, according to this article on OttawaCitizen.com. Retailers up there are getting lots of help identifying future challenges, including store layout and customer loyalty. The recently completed, year long Independent Retail Project, the largest of its kind ever undertaken, provides solutions that will help them succeed. Project leaders are even asking retailers to participate in a survey and a series of town hall-style meetings to find out more about what they want.

A design company is helping many Canadian big-box and smaller retailers undertake complete makeovers. They’re creating “an overall package of experiences that customers encounter when they’re trying to shop or buy or deal with using the product,” says a consultant quoted on Vancouver’s Business Edge.

Another consultant says retailers are trying to appeal to a customer’s sense of sight, sound, smell and touch. I love what he says about the merchandising mistakes some retailers make: “You want to invite customers to come and touch your product. I still come across stores where (a sign) says, ‘Don’t touch the merchandise,’ which is madness, unless you’re selling maybe very expensive wedding dresses.”

“Often, when people find stores and don’t want to go in, there’s a (sensory) clash. There’s a nice-looking Victorian kind of a store and it’s playing rap music. It’s amazing still how many times I’ve come across problems like that.”

Make sure you’re in tune with your customers’ senses. And keep your eyes open for research like the Canadians receive. Read it, study it, implement it and benefit!

Retailers to the Rescue in Albuquerque
Written by Jeff Grant, November 24, 2008

It’s very gratifying to see a posse of retailers coming to the rescue of downtown Albuquerque. This article in the New Mexico Business Journal describes how retailers in the historic district are inviting established retailers in the area to a gala event. Its purpose is to expose those attending to a vacant 14,000-square-feet space as well as retail opportunities in the entire district.

This and other projects designed to entice retailers downtown was largely conceived by a storeowner who was frustrated by the city’s slow pace in redeveloping the district. She formed the Downtown Action Team, a coalition of merchants and businesses whose mission statement is “To creatively plan, manage and develop Downtown Albuquerque to become the best mid-sized Downtown in the USA.”

Quite an ambitious plan, and one that retailers of all sizes can look to for inspiration. Wherever your shop is located, there’s bound to be an association you can join that looks out for the best interests of your retail area. Chambers of commerce are good places to start. But groups like the Downtown Action Team, which focus solely on specific areas, might offer you more.

I’ve seen it work in San Diego, where the once-blighted Gaslamp Quarter downtown has become the place to go for shoppers, diners, party-goers and conventioneers. It took several years to complete the transformation, but the Gaslamp Quarter Association has done an amazing job. And the urban renewal continues in the adjacent East Village, where the new Petco Park ball field has spurred even more “fiercely fashionable” development, as Wikipedia puts it.

Bravo to the Albuquerque retailers for taking matters into their own hands. Think about rolling up your sleeves and doing the same.

Why Put Rubbish in a Vacant Mall?
Written by Jeff Grant, November 14, 2008

That headline might sound ridiculous, but it makes perfect sense. At least it does in today’s crazy retail climate. Three articles I read should explain it all.

First is this Canada.com story about a Montreal guy who knew he wanted to get into retail but wasn’t sure what to sell. When a friend showed him a carrying bag made of recycled materials, he knew he had found his niche. He opened a shop that only sells “upcycled” products — stuff made from other stuff — like handbags made from old soccer balls, picture frames from bicycle chains, and clocks from old records and cameras. Sure, this kind of stuff has been around forever, but usually not all in one place. “Pure rubbish” is what the headline calls it. To me it’s proof that one man’s trash is another man’s treasure.

If this retailer were in the United States, he’d have little trouble finding a place to open shop. According to this Wall Street Journal article on Baltimoresun.com, shopping malls all over the country are looking for tenants. Rents in new lease signings are 10.4 percent lower on average than the asking price, down from the 9.3 percent discount of two years ago, says a market researcher quoted in the article. In other words, it’s a buyer’s market, an especially good time to get into retail if you can pull the money together. Cheaper rents, shorter lease terms and bigger allowances from landlords if you outfit their stores are also compelling reasons to jump in.

Opportunities for retailers are popping up even in places like Omaha, Nebraska, where a former horse racetrack is being developed into a planned urban community. This story on TMCnet.com discusses the kinds of businesses the developers are looking for: Retail stores, restaurants, entertainment and hotels will be needed to service the growing community. They probably could use an upcycling shop as well.

Keep your eyes open for opportunities like these. If you can get in on the ground floor (literally or figuratively), you’ll be in a great position when the economy finally rebounds.

Retailing Robots for Fun and Profit
Written by Jeff Grant, November 10, 2008

I’ve blogged before about stores where kids and parents can create their own remote-control model car (RIDEMAKERZ) or stuffed toy bear (Build-A-Bear Workshop). I just found out about another build-it-yourself retailer that should appeal to anyone who grew up with the promise of robots in their future, whether baby boomer, Gen-X’er or their kids.

Robot Galaxy is exactly what its name implies: a retail universe stocked with the individual parts or kits to assemble a walking, talking toy robot. They’re sure more interesting-looking than the toy robots I grew up with in the ’50s. Back then, who’d have thought there’d be entire stores devoted to the little mechanical men?

An article earlier this year on Playthings.com covers how frustrated father Oliver Mitchell and retail veteran Ken Pilot came up with the concept. They now have one store in New York and another in New Jersey, and just got a $5 million funding boost for expansion.

I really like the interior photo in Playthings. It’s a clean, open design, with lots of white shelves and cabinets. The high, arched ceiling evokes a spaceship feeling, with open circles in the curved beams. High-up wall graphics of the planets carry the feeling through to infinity and beyond (sorry, Buzz Lightyear). The shelves are stocked with all the components needed to build a ’bot as simple or as fancy as its creator desires. Like RIDEMAKERZ and Build-a-Bear, the stores let you host in-store parties where all the guests custom-build their own robotic companion.

Great concept, great execution and great website. If Robot Galaxy ever opens a store near me, I know where I’m going to hold our next company retreat.

Archive Page 2

Grabbing Retail Success by the Tail
Written by Jeff Grant, November 7, 2008

With football season well under way, it’s not surprising to see that innovative retailers have popped up to sell pigskin-related merchandise to eager fans. I knew that tailgaters were a big group, but had no idea they were so big as to have their own website, tailgating.com, which sells parking lot goodies like portable grills and fold-up bench seats.

According to the site, tailgaters are a lucrative market, with about 42% saying they spend more than $500 on food and supplies annually, and 46% saying they tailgate six to 10 times a season. Numbers like that convinced two Roanoke, Virginia, entrepreneurs to invest in a shopping mall cart to sell T-shirts, pennants and other fan gear for their state’s teams. The concept took and they were able to move into a larger temporary store during the holiday shopping season, this article on Roanoke.com says.

The owners of Tailgaters United are in an even larger store now. It’s a part-time labor of love because both still work full time for large national retailers. They want to expand by offering high school gear as well.

This is another example of how people with retail in their blood figured out a way to create a niche business involving their passion. If you’ve a burning desire to enter the trade, consider starting small at a cart. My niece, who worked off and on for years as a barista, learned that the municipal library in her town wanted to subsidize a coffee and pastry cart for patrons. Drawing on her experience, she submitted a proposal and earned the contract. Now she’s putting all that good experience to great use and learning more than ever about how to run a retail business.

What’s your passion? Whether you find it at a tailgate party or a in a coffee cart, there are plenty of possibilities out there for you to take the ball and run with it. And hopefully, like my niece, run it in the black.

Employees’ Word-of-Mouth Can Build Store Loyalty
Written by Jeff Grant, November 4, 2008

This article in Advertising Age is about how retail employees can help build brand awareness. It cites the “culture book” that online shoe retailer Zappos.com gives to all of its associates. Books or manuals like this one are pretty common at dot-coms, according to people I know who’ve worked for them. Those employees who don’t buy into the groupthink probably shouldn’t be working there.

I blog often about the need for employees to guarantee a positive shopping experience for every customer — even those who are “just browsing” and leave your store empty-handed. Whether you own a single store or a chain, customer service is a big part of your brand. It’s so important to Zappos that they call it “people planning.” “Each employee needs to be a great point of contact with customers,” the company’s creative director says. “We invest the time and money into hiring and nurturing the right people, as many other companies do in their media planning.”

Companies like Zappos even go so far as to measure return on investment for each employee. That’s probably out of reach for most smaller retailers, but you certainly can find out what customers think of your customer service. As I’ve said before, sites like Survey Monkey.com make it easy to poll your client base online. You can reward them for participating by emailing them special discount coupons and other promotional material.

But don’t forget to reward those employees who do an outstanding job. It can be as simple as treating them to pizza or as extensive as award top-selling performers with spa treatments and other spiffs. Work with retailers in your area to cross-promote your stores and, subsequently, your brand.

Treat your customers right. Treat your employees right for treating your customers right. Zappos knows it works. So if the shoe fits for them, you should wear it too.

From Butts to Mutts: Two Retail Success Tales
Written by Jeff Grant, October 28, 2008

It’s always nice to hear about people who transformed their passion into retail success. Jakki Liberman of Scottsdale, Arizona, became a fan of cloth diapers because her daughter was allergic to disposable diapers. A graphic designer, Liberman created a colorful, waterproof outer cover for cloth diapers. It attaches with Velcro and is tough enough to withstand many washings in hot water.

That was 20 years ago. Now her business has grown to the point where she plans to open a retail store soon. Presumably, it will carry not only the diaper covers, but also the bibs she devised from the same material as the covers. Liberman already has licensing deals with the Dr. Seuss brand and is a vendor to major marketers including Babies ‘R’ Us, Costco.com, Amazon.com and Target.com. Her Bumkins website is in soft pastel blues and pinks, which certainly appeal to the mothers who visit the site to buy Liberman’s many baby products.

Then there’s Steve Goldberg and Janet McCulley, founders of the Muttropolis chain of pet supply stores. As the name implies, Muttropolis is a mecca for dog and cat owners. I’ve visited the Solana Beach, California, store several times over the years. I’m always amazed at the variety of canine/feline products and how creatively they’re merchandised. The stores are full of visual puns about pets, as is the website.

Goldberg and McCulley, of course, love their pets. But they couldn’t find a store that carried all the unique dog and cat items they craved. These include premium organic and gourmet treats, bedding, canine “couture,” bowls, carriers, a special shedding blade for dogs, and Halloween costumes for pets–the kind of things they couldn’t find at Petco or PetSmart. So they opened the first Muttropolis in 2002. They seem to have filled a niche, and have expanded to four more stores. Sales-wise, they’re doing very well in this economy that’s going to the dogs.

Butts and mutts. Two retail opportunities that some smart, passionate people have turned into retail careers. What’s your passion? If it’s not on your store’s shelves, maybe it should be.
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Retail Design Takes Off at Airports
Written by Jeff Grant, October 24, 2008

As a frequent flyer, I’ve been pleasantly surprised lately by not just the improved quality of food sold at airports, but also by the retail design of the vendors selling it. Now that only ticketed passengers can get to the waiting areas, vendors there have captive audiences. It stands to reason that attractively designed eateries, convenience stores and gift shops are going to entice more travelers than their drab, cookie-cutter predecessors.

According to this article on Boston.com, going upscale in one terminal’s food court at Logan International Airport paid off handsomely for the Massachusetts Port Authority. It hired the retail design arm of retail shopping mall giant Westfield to handle the upgrade. Westfield got seven tenant restaurants “to splurge on expensive countertops and eye-catching architecture…to pique passengers’ curiosity so they’ll check out the concessions — and then stand in the checkout lines.”

The result? Even though passenger traffic is declining, concession sales are increasing at the terminal’s renovated food court. The warm, inviting colors and trendy design seem to help calm frenzied travelers. If they’re more relaxed, they’re more likely to spend money on food while killing time between flights.

The next time you’re in an airport waiting area, take a good look at the retail environment. Think about which storefronts and restaurants grab your attention. Then think about how you can apply their design principles to your own store. Interesting to think that waiting at the terminal gates can help your design imagination take flight.

Wilson Farms Plows Ahead with Retail Updates
Written by Jeff Grant, October 20, 2008

I’ve never been to a Wilson Farms store, but I like the way management thinks. The “smaller-scale food store” chain in western New York has been in business since 1960. Growth has been steady and Wilson Farms now has 195 stores, many of which are looking pretty outdated.

Fortunately, the CEO is a forward-thinking guy who realizes the importance of good retail store design. .“We think (the old design) kind of overstayed its welcome a bit,” he says in this article in Convenience Store Decisions. “Our challenge is to go in and rebrand all our stores.”

He’s doing it the right way, too: over time. Upgrades to infrastructure, HVAC and store systems were done in 2005-06, and a prototype store was unveiled near Buffalo last year. It’s a place where ideas are tested to see what works for customers and staff. Products and merchandising also are tried out. The foodservice manager wants the new stores to suit the needs company’s needs not just today, but well into the future.

“We know customers don’t spend but five minutes in our stores,” the VP of sales and marketing says. “We don’t want to extend that if that’s all they want to stay. We want to make their shopping experience as pleasant and efficient as we can.”

Other things the chain has going for it: a history of community involvement, an easy-to-navigate website, and a practice of hiring local store associates as well as corporate executives.

You can learn a lot by following the example of retail chains like Wilson Farms. Always think about the future. Hire locally when possible. Get involved in the community. Those are just a few of the keys to success in this business. Use them to develop your own prototype store, even if it’s just on paper.

A POSitive Experience…or Was It?
Written by Jeff Grant, October 17, 2008

My wife and I were about to pay for our purchases at a Costco the other day when I was suddenly approached by a store employee. The handheld electronic device he was holding, he told us, was talking to the POS. It told him that our Gold membership would benefit from an upgrade at this very moment to a Premier membership. By upgrading, he went on, we would receive special discounts on select merchandise, and a 2 percent rebate on all purchases at the end of the year…or something like that.

He certainly was selling us the sizzle instead of the steak. I could tell by his urgent expression that he really wanted to close the deal right away and move on to the next customer in dire need of an upgrade. In the end, we opted to upgrade for a “special prorated upgrade fee today only” because he made it sound like a good idea.

I left feeling good about the decision to upgrade, but I also felt kind of like I needed to take a shower. It was the same feeling I had in a car salesman’s cramped cubicle when three burly guys tried to get us to sign on the dotted line before we left the dealership.

Thinking back on the experience, I was surprised that Costco would employ high-pressure tactics on customers at their most vulnerable spot in the shopping experience: the POS. While it makes perfect business sense to capture the customer data at the POS and offer the upgrade at that time, it all struck me as a little creepy. The fact that the odd-looking handheld device was receiving my personal profile wirelessly made me somewhat uncomfortable, given the huge number of identity thefts from retailer databases reported on recently.

I would have preferred that the cashier briefly alert me about the upgrade offer, and then tell me it could be paid for immediately. If I needed more info, there should have been brochures or fliers describing the offer at the POS.

I’m not about to stop shopping Costco over this. But it certainly degraded the shopping experience for me. I know it’s tempting for retailers of all sizes to present special offers at the POS. But I say make them soft-sell and with a smile on your face, not an in-your-face attitude like the guy I encountered at Costco. Maybe he’s a former car salesman?

Moving Up and Trading Down
Written by Jeff Grant, October 15, 2008

Branding isn’t just about the way products are perceived. It’s also about the way retailers – and their stores – are perceived. I mention this because of one article I recently read about consumers in India, and another about consumers in the United States.

The Hindu Business Line interview with the CEO of a store-branding company says, “All communication should be centered on showing people the value of the brand.” This is because in India, as income rises, consumers spend more on food, fashion and lifestyle products. Times are good in India these days, he says, so shoppers don’t care so much about store design and customer service. But when times go bad, consumers look for the retail brands that offer consistently good shopping experiences. That is why, he says, “Retail design is all about unlocking the energy of the store.”

In the U.S., our sour economy has consumers looking for bargains as well as nicely designed stores. This article from the Minneapolis Star Tribune notes that supermarket giant Supervalu has found consumers are now more likely to buy house-brand products instead of name-brand items. The experts call this “trading down.” Supervalu also has learned that “sales rise 8 percent in the 12 weeks following a remodel.”

What does all this mean for smaller, independent retailers? To me it means customers will continue to buy from you when you provide products with a perceived value. It also means that you need to learn how store design affects your sales. You can easily do the latter through online or in-store customer surveys. As an incentive, offer a discount for each completed survey.

Figure out how to “unlock the energy” of your store and you should be able to weather any economic climate.

An Uncommonly Successful Thread
Written by Jeff Grant, October 13, 2008

Body art, henna tattoos and an Indian hair-removal technique called threading don’t sound like the ingredients for a multimillion-dollar salon chain. Those services are mostly performed at local salons of modest means. But the founder of Ziba Beauty parlayed a retail gut instinct into an upscale chain with annual sales approaching $12 million.

This article on Inc.com tells how she did it. It’s must reading for any retailers intent on growing their business beyond a single location. Sumita Batra knew she had a hit with her original salon based on the long lines of women waiting to get in the door. She first moved to a strip mall but had her eyes set on a nicer mall nearby. Even after success led to five stores, she wanted still more. So she took the plunge by borrowing almost $3 million and hiring some retail veterans to help plan the expansion.

The pros not only helped her rebrand the Ziba Beauty name, but they also helped her decide which services should be promoted over others and how to give all the stores a much-needed facelift. Be sure to read their “Five Steps to a Retail Makeover.” It covers everything from wall graphics to uniforms to logo design.

Having the right product mix, store layout and motivated staff certainly are factors in retail success. But climbing up the ladder takes more than just knowing how to run one or two stores. Stories like Ziba Beauty’s should inspire you to analyze all the steps needed to expand into the retail blockbuster you were meant to be. Doing so will make it easier when your gut instincts take over.

A Good Ear for Training
Written by Jeff Grant, October 10, 2008

I see so many retail-chain employees wearing headsets these days, I’m kind of surprised when I see staff who aren’t wearing them. I know the two-way versions help managers and staff keep in touch while on the sales floor or in the inventory room. But now I see that Casual Male is using MP3 players to help train employees. According to this article in NRF’s Stores Magazine, the stores for tall and large men’s clothing retailer lets sales associates listen to specific training topics on the job.

This sounds like a great idea for just about any retailer — and it doesn’t require a third-party training package like the one mentioned in the article. Because so many employees of all ages own MP3 players, you could use a digital tape recorder to create customized training files, much like podcasts. Even if some employees don’t have their own MP3 players, they’re certainly inexpensive enough to buy a few to keep in-house. You could distribute training files via flash drives, CDs, email or online downloads.

Because consistency is key to good training, using MP3 players to train employees would go a long way to making sure all staff members are on the same page when it comes to treating customers, working in inventory, using the POS and other store-specific topics. If your customer base is youngish, being assisted by a sales associate wearing earbuds could help make an instant connection. If older customers are your main clientele, you can instruct staff to take off the earbuds before approaching them.

For a small investment in what is now low-tech, you could turn your sales team into one that appreciates your business-savvy ways. You’ll get good word-of-mouth among potential employees and customers. And you’ll have a library of training files that should bridge any generation gap.

The Many Ways to Get Into Retail
Written by Jeff Grant, October 6, 2008

Everyone has a story about how they got started in retail. I love hearing or reading them because they show that you don’t necessarily need an MBA to start your own business.

The two women in this Boston.com article have found a great way to open their doors just one weekend a month. They devote the rest of their time to finding and refurbishing and eclectic assortment of antiques/collectibles. And they’re more than willing to negotiate price with shoppers, which gives them a great reputation among bargain hunters.

One of the ladies had owned a home store and was trying interior design. Her friend had been a designer for Disney. Both loved shopping at garage sales and flea markets. They let all their purchases accumulate in a Victorian house in a quaint village. Not content to just hold onto it all, they hit upon their business model: Fix it all up and sell it one weekend a month. They get to enjoy their other time pursuing their passion for discovering old merchandise, and make their money on that monthly weekend. Low overhead, minimal store design, constantly churned product mix. What a great combination.

The husband-wife owners of a children’s clothing store in Minnesota found one need and filled it with two. According to this article in the St. Cloud Times, the wife couldn’t find such a store in downtown St. Cloud, she decided to start one. Fortunately, her husband already had a photography studio downtown. Kids and photos — what a natural combination. Now the boutique is in the front of the store, and someone who can photograph them in their new clothes is just footsteps away.

Archive Page 3

Go Green to Stay Out of the Red
Written by Jeff Grant, September 29, 2008

Sorry, Kermit the Frog, but it’s easier than ever to be green. Whether you sell hard goods or food, customers want to know that your business is part of the green movement. This article in the Boston Business Journal points out that even if your store is green, you need to tell customers about it. If you don’t, they’re likely to shop at greener pastures.

If you’re in a newer or upgraded building, it might already meet the green standards set by the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED). If you don’t know, find out. Then make sure you communicate your green efforts in everything from window displays to POS flyers to email newsletters.

If you’re not already green, it’s easy to start by using fluorescent light bulbs, low-flow toilets and even carpeting made from recycled materials. If you’re contemplating building or leasing a new space, work with architects who have LEED experience. They can make the process a lot easier for you.

If you’re in the restaurant or foodservice industry, going green can mean offering organically grown products, using biodegradable packaging, and making or accepting deliveries in hybrid or low-emission vehicles.

When you do go green, be sure all employees are fully briefed on the benefits it makes to customers, your neighborhood and the greater community. Staff should be your “green ambassadors,” telling environmentally aware customers about your green initiatives and educating the rest about their importance.

It’s obvious the green movement is here to stay. If you fail to get on board, the only green you’ll experience will be envy of your competitors who are on board.

How to Make Jewelry and Waves Sparkle
Written by Jeff Grant, September 26, 2008

Most jewelry stores look pretty much alike. So do surfwear shops. Shoppers have certain expectations before entering each type of store: low glass cabinets in jewelry stores and racks of colorful clothing in surfwear shops. These layouts probably make customers feel comfortable. But they don’t necessarily mean they’ll come back. After all, they can walk into any other jewelry or surfwear store instead of being loyal to one in particular.

That’s why I applaud Ross-Simons Jewelers in New England and O’Neill Clothing in Anaheim, California. Both retailers thought way out of the box when planning their new store layouts. I like Ross-Simons’ senior designer’ analogy of how buying diamonds is like buying chocolate — you have to figure out how to get shoppers to look at them. In this case, it was using high-end lighting to showcase high-dollar jewelry, and rotating turntables with LED lights.

Ross-Simon also knows the demographics of its customers. Watches and first-time engagement rings are big sellers, so separate areas of the store were designed to make those who buy them feel special. Music and fragrances help create a warm, inviting atmosphere. I could go on, but read the article and learn from some savvy designers.

The O’Neill shop is the first clothing-only store for the wetsuit manufacturer. The O’Neill brand has been around for 50 years, and the designers wanted the flagship store to reflect that heritage. I think they succeeded admirably with “The Hut” in the middle of the store, under an eco resign ceiling to give the feeling of being under water. Images of Team O’Neill riders in action drive home the commitment the retailer has to the surf industry and its customers. A “Wave Wall” displays a kelp forest, walls and cushions are made from neoprene wetsuit material — the list goes on. Read the article and look at the photos to see how much creativity washed over the store.

Ross-Simon and O’Neill are great examples of retailers who understand their customers and give them a shopping experience instead of just a place to shop. Is your store a diamond in the rough or a mushy wave of design? Take a good look and see if you can find ways to make them sparkle.

What’s In Store When They Walk Through the Door?
Written by Jeff Grant, September 19, 2008

I thought I sensed a trend when I started seeing retail shops with few or no storefront windows. According to a blog on Inc.com, there is a method to this madness. It gives shoppers who “get it” the feeling that they’re entering an exclusive world that caters to their needs, desires and, most important, their emotions. After all, the best shopping experiences are those that make an emotional connection with the customer, whether it’s for clothing, home electronics or left-handed can openers.

I especially like the reply at the end about a streetware shop in Boston that looks a timeworn convenience store. When you get inside, a soda machine slides to the side to reveal the real, inner store. The poster says to ignore their website, but I say it only adds to the mystique. Check it out at www.bdgastore.com.

Getting back to the original blog, it makes some good points that bear repeating. If you want customers to really feel emotionally tied to your store, make sure your sales associates treat them like they’re the most important person in their life. Arrange the merchandise to capture shoppers’ imagination. Make them feel like something even more exciting is just around the next shelf.

How do you know what customers want? Start by asking deeper questions, this article from ChiefMarketer.com suggests. You don’t just to know what they’re looking for, but you also need to “draw meaningful conclusions” about the data they provide or that you obtain from paid market research. The article is written for corporate marketers, but you can apply the concept to any size store or chain. The ultimate goal is to get customers to ask, “Why would we ever shop anywhere else?”

Make shopping an emotional experience. Know what your customers are shopping for and why they shop for it. Take care of those two concepts and you should find success at the POS, whether it’s behind a windowless facade or a great big window display.

Where Good Ideas Come From
Written by Jeff Grant, September 17, 2008

From Akron, Ohio, to Manchester, England, to Steamboat Springs, Colorado, examples of great store design are yours to discover. If you own or run a retail business, you should be constantly on the lookout for eye-catching merchandising, whether in person or online.

My designers and I like to surf the web frequently to find inspiration for the stores our firm designs. I recently came across photos of the winning entries in the Association for Retail Environments’ annual design competition. I especially like the first image of the wine shop in Rohnert Park, California. The long gondolas invite exploration. The bottles on the top shelf presumably are available in the shelves directly below them. The skylight looks like it’s filled with either all-green wine bottles or wine glasses. Either way, it’s a dramatic effect that shows customers they are in a place that truly values wine.

Most of the other photos show a retail trend that I’ve notice recently, especially in mall stores: floor-to-ceiling wall displays. When done right, such displays give a store a more spacious feel, and invite shoppers to come to literally look high and low for merchandise.

Over in Steamboat Springs, a mother-and-daughter team have learned how to stay afloat in the tourist town. They’ve had to move their home furnishings and gift shop to a more affordable part of town, and let employees go to make ends meet. They have a dog named Earl who keeps kids and husbands occupied. They have after-school programs for kids, and host weekly gatherings of knitters and crocheters. They’ve made a name for themselves in the community, and it pays off.

Another Steamboat Spring merchant created an “arts and crafts gym.” Except it’s not really a gym. Artists can, however, store their stuff in gym lockers and use the easels, lights and other equipment. The concept has worked well and the owner is still selling memberships to those who want to flex their artistic muscle without having to rent a studio or invest in equipment.

Just a few ideas to start your design juices flowing. Great ideas are all around you, in the virtual and brick-and-mortar worlds. Don’t be timid about exploring. The next great idea could come from you.

Fold Habits Die Hard
Written by Jeff Grant, September 15, 2008

If you’ve ever worked in a clothing store, you know what a chore it is to keep all the merchandise neatly folded. You see it all the time in department stores as well: piles of clothes left on dressing room benches and hanging from wall hooks. But it turns out there’s a whole subculture of former and current employees who are compulsive folders.

The Wall Street Journal uncovered this strange retail obsession and interviews those afflicted with it in this article. There’s even a short video of a longtime Gap employee and store manager showing the right way to fold denim jeans.

While some former clothes folders got the habit out of their system as soon as they left the retail floor, many are still caught in its grip. One even calls it her domestic therapy.

Personally, I think that training sales associates in necessary evils such as clothes-folding help storeowners separate those who can succeed in retail and those who can’t. If they roll up their sleeves while creasing the pleats, they’ll probably be good at other facets of retail, such as customer service and up-selling. If they don’t have the discipline to go with the fold, they might be better at something more creative and less repetitive.

Those are generalizations, of course, but the article tells me that detail- and service-oriented staff can help a business earn customer loyalty. That’s especially true with high-end clientele, according to another article on OrlandoSentinel.com. “The luxury consumer is more driven by customer service, even more than price,” the chairman of a research firm says.

I say customer service is important at every consumer level, from 99-cent stores to Rodeo Drive. Whether you sell clothes or hardware, it pays to welcome every new employee to the fold — whatever your version of it may be.

Comparing Apples and Sandwiches
Written by Jeff Grant, September 12, 2008

I was at one of San Diego’s biggest outdoor malls the other morning on a business call. It was 9:45 a.m., 15 minutes before most of the stores opened. I noticed that one already had a long line of customers waiting outside. It was the only store in the mall with such a line. Not surprisingly, it was the Apple Store.

This wasn’t the day that the new and improved iPhone hit the market. I would expect a line on that day. This was just an ordinary weekday.

You probably know I’m a Mac fanatic. I love their products but I continue to marvel at their merchandising. The front window had a huge flat-screen TV configured as an iPhone, with a video on the screen showing off all the phone’s new features. That was it. No signage. No banners. Yet people in the line couldn’t take their eyes off it.

When the store opened, the shoppers were immediately greeted by casually dressed Mac Specialists and Geniuses, as the company calls them. Within minutes, the entire store was humming with as folks got their questions answered about hardware, software and accessories.

When you think about it, how many other stores do you know that have lines outside before they even open? I’ve never seen any outside Fry’s or Circuit City, with the possible exception of the days when killer new video games debut. Apple continues to reinvent itself, and the brand seems stronger than ever. When people like my brother, a PC devotee for years, are considering switching to the Mac, you know they’re doing something right.

On a similar but more caloric note, I love this Washington Post story about Larry Feldman, the “Secretary of Sandwich.” He started a company that now franchises more than 1,000 Subway locations, and he’s rolling in dough.

But he knows that to be successful, you can’t sell just sandwiches. His insists that his franchisees’ employees also must sell service. Watch the short series of video interviews with Feldman. He calls the food preparers “Sandwich Artists.” He talks about how an employee mopping the floor 30 minutes before the midnight closing treated him like a nuisance instead of a welcome guest (the guy was later terminated).

Apples and sandwiches. The two products couldn’t be more different. But the way they’re marketed and merchandised is surprisingly similar. Visit an Apple Store, then go grab a Subway sandwich. You’ll get plenty of food for thought at both places.

Wetting the Shopper’s Appetite
Written by Jeff Grant, September 8, 2008

If you need any more convincing that consumers enjoy “retail shopping experiences” vs. “just going to the store,” read about the new Fountains Shopping Mall as reported in Roseville, California’s Press-Tribune. Fountains is kind of an “un-mall;” an indoor-outdoor environment with something to attract the kids as well as their money-spending parents.

The experience includes a water/light show, children’s interactive water feature, community stage and kid’s playground. Not to mention upscale shops like Anthologie, Z Gallerie, West Elm and Chico’s. It reminds me of The Grove at Farmers Market in Los Angeles. Both are laid out along a Main Street type of grid that encourages shoppers to see what’s just around the corner or down the next side street. Both also have dancing water-and-light shows, which are always crowd-pleasers.

Interesting to read that the developers originally planned a big-box center with the likes of Wal-Mart, Home Depot and other high-profile retailers. That didn’t seem to fit the “destination” experience, so the developers went back to the drawing board and came up with the city-center type of design. To me, that shows that adding entertainment and community involvement to the retail mix are surefire elements for success.

Your store might not be large enough yet to justify joining a center like the Fountains or The Grove. But you should check out places like them to get ideas on how the retailers are merchandising to the steady of stream of shoppers attracted by the experience. If you are large enough, figure out your cost per square foot before signing a lease. There might be a lot of design and other considerations you need to be aware, of including sales-percentage fees. Whatever you decide to do, walk away dedicated to make shopping at your store a splashy experience, even if no water is involved.

Food for Thought
Written by Jeff Grant, September 5, 2008

With its low margins and costly overhead, retail grocery is one of those businesses that you have to love to stay in it. It’s evident from this article in The New York Times that twin brothers Tom and Jeff Heinen have an identical love of the business. The way they run their 17 Cleveland-area stores shows their deep appreciation not only of gourmet-quality food but also of their loyal customer base.

The article writer examines the Heinen Fine Foods chain from the consumer perspective. But any retailer could take important lessons from the story. First of all, the brothers make it a point to listen every day to phoned-in comments from their customers. They make it easy by putting the phone number at the bottom of some receipts. The brothers also visit all their stores regularly — and the competition’s — to get a feel for what’s happening out there.

The brothers also know the habits of their target customer very well: middle- and upper-class shoppers who want to know more about where their food comes from and if it’s top-quality. So the Heinen’s work closely with their food vendors to find “great values” in cheese and other products, then merchandise them as such. They’re up against competitors like Whole Foods and Trader Joe’s, so they have to stay on top of things to ensure customer loyalty.

Customer service also is very important at Heinen’s. The story points out that “Heinen’s has 50 stories that it trains employees to tell customers about its meat, produce, baked goods and other items.” A great idea. Every retailer should an equivalent training program.

The design of the Heinen’s stores looks fresh and appealing, just like their food. I think the brothers have a great formula for success. Their profits may be low-margin, but the brothers and their customers receive high satisfaction for a retailing job well done.

Stay Web-Connected to Staff, Customers
Written by Jeff Grant, September 3, 2008

I just read two stories about how the Internet positively affects retail. The first is how J.C. Penney “connected all 35,000 of its point-of-sale systems to the web, giving associates in its nearly 1,100 stores access to the retailer’s ecommerce site, JCP.com.” That’s a pretty tall order, and it took JCP two years to do it.

More than likely, your retail empire is considerably smaller, but it too can benefit from giving staff access to the web at each POS. Doing so will make it easier for sales associates to place orders for customers if an item is out of stock. It also can allow rapid inventory checks at other stores if you have multiple locations. As the article says, anything that slows down transactions results in unhappy associates, and I would add unhappy customers as well.

The second story is about that retailer’s dream: Making money while you sleep. It discusses the value of opening an eBay store. I know from experience that to do a good job, you need to dedicate at least one person to maintaining such an online store. That involves taking and uploading great pictures, writing great copy and fulfilling orders, to name a few responsibilities. If you feel you have enough on your hands with a brick-and-mortar store(s), you can hire companies that will do the job for you. But remember that they might charge hefty fees and/or take a percentage of sales.

According to the article, “Recent eBay reports show store sellers see an average sales increase of 25 percent within three months of opening their online store.” That’s pretty impressive, but there are more reasons to have an eBay store. It lets you move inventory that isn’t selling as fast as you’d like. Think about it: Placing those items online lets you link them to keywords. That exposes you to potential customers worldwide who are searching the web for such items. Other good reasons are the ability to easily cross-merchandise at checkout, and the ability to build customer lists.

Tying your POS’s to the web and starting an eBay store might sound like daunting tasks. But if you ever want to take full advantage of e-commerce, they are tasks you need to consider. As we say over and over, you can be sure your competition is.

Apple and Other Design Ideas Worth Plucking
Written by Jeff Grant, August 28, 2008

I know I mention Apple’s in-store merchandising often in the blog, but it’s with good reason. It recently won a first-place award in the VMSD International Visual Competition. The magazine and its judges know great design when they see it, and so should you.

The online article also discusses the other winners, including Macy’s Chicago and Pucci New York. Read about them to see how the top retailers merchandise their products as well as their brand.

I totally agree with one judge’s comments that “Less is more right now…It used to be that you’d use propping to tell the story. Now there’s more focus on the merchandise.” Consumers face so many choices these days, I also find it appropriate many times to just focus on one or two products in window or floor displays.

If you clutter a space with too many products, it can confuse customers. Using negative space is often a better choice but, as another judge says, “Less means taking a stronger stance and delivering a straightforward message…You have to have the faith that a few dramatic gestures are enough for people to understand. Otherwise, it’s very easy to start second-guessing yourself and begin adding those additional layers, and then you’re back to clutter.”

You’ll have to check margins before start focusing on single products to be sure they’re worth your merchandising time and effort. You might be surprised to find that some items you put on the back shelves will do great when spotlighted individually.

Whatever you do, keep reading articles like these to keep up with current merchandising trends. All it should cost you is some time online or reading hardcopy. The dividends are well worth it.

Archive Page 4

Overnight Success Can Take Years
Written by Jeff Grant, August 20, 2008

Overnight successes usually don’t happen quite that fast — especially in retail. I was reminded of that in stories I read about two vastly different clothing retailers. You may have heard of Forever 21, a hip clothing store known for its low prices on up-to-the-minute fashions. You probably never heard of Show Hoppers, a dancewear shop in Concord, New Hampshire that doesn’t even have a website. Fortunately, the Concord Monitor followed the mother-and-daughter owners of Show Hoppers in their first year as they learned the intricate dance of retail survival.

After 24 years in business, Forever 21’s worldwide sales are in the billions of dollars, according to this article in the Los Angeles Times. Show Hoppers’ owners say they’re thrilled if sales hit $300 a day. Yet both are niche marketers. Aggressive Forever 21’s mantra is “Create a niche, and then blow it out.” Show Hoppers’ niche is dancewear for girls in their small town. They realized parents had to drive many miles to find appropriate clothes for their little dancers, so they started on a shoestring with a boutique catering to those parents.

Forever 21 attributes its success to spotting fashion trends and then finding manufacturers who can supply them with quality, low-cost clothing. Show Hoppers is still looking for its place in the Concord sun — or sleet, if you factor in the miserably snowy first winter they experienced in downtown Concord. But they hung in there, adjusted inventory and are optimistic about their second year in business.

I like the attitude of the daughter, who doesn’t let being legally blind slow her down: “Every decision you make that’s unknown is scary. But if you don’t take a chance, how are you going to know?”

I also like the attitude of Forever 21’s senior vice president: “Where there’s a flash of opportunity, we’re stepping in.”

It took Forever 21 nearly a quarter of a century to achieve its “overnight” success and become a media darling. I hope Show Hoppers is content to become the premier dancewear shop in its home state, and perhaps beyond. Before you become an overnight success, I hope you will read both stories and draw inspiration for your retail store.

Photographic Memories You Can Hold in Your Hand
Written by Jeff Grant, August 18, 2008

Here’s another story about an enterprising retailer who spotted a need and is filling it. With a name like Life’s Sweet, you might think it’s a bakery. But it’s really a place that turns family memories into tangibles like hardcover photo books and music DVDs.

Like so many parents, Sonya Cartwright of Colorado wanted a more permanent way to preserve her family’s photos and scrapbook items. She left the corporate world to find a way to do just that. Cartwright knew that most of us now keep our photos stored on digital camera memory cards or hard drives, possibly to never be seen on paper. So she found a way to transfer them to large-format hardcover books at an affordable price. Customer can make photo compilations of birthdays, anniversaries, other milestones, or just random images. Just give Life’s Sweet the digital or hard copies and they put the book together, complete with binding.

Look at the samples on the Life’s Sweet website. These aren’t just little end-table books but large coffee-table books with full-bleed images of 10 by 12 inches or 12 by 16 inches. How many of us have the time to do print, assemble and bind such books? I know I don’t. That’s why Cartwright’s idea is so appealing. I do know how to make DVDs with music to accompany photo slideshows, but again, I can’t find the time for it. And I don’t think I would trust the job to the photo counter in a drugstore or even a big-box retailer.

The Life’s Sweet website is full of great slogans that immediately convey the company’s services, like “You snap it. We publish it.” and “We do all the work! You get all the credit!” I also like their press page, with inks to lots of media coverage, industry awards and even Life’s Sweet’s TV commercials.

I haven’t seen photos of the stores’ interiors. But if they convey the concept as well as the website, I think Cartwright has a formula for long-term success. She might even get partnership or buyout offers from larger competitors. Whatever happens, it’s nice to see another corporate dropout become the very picture of entrepreneurial success.

Indoor Racing Gets Back on Track at Retail
Written by Jeff Grant, August 15, 2008

It’s been years since I saw a model-car raceway in a retail store. The ones I remember were called slot cars. They were really popular in the ’60s and ’70s. You brought in your own slot car or rented one at the indoor track. Some tracks are still around; you can find them with a quick Google search.

Given the popularity of remote-control model cars in the past few years, I’m surprised no one thought of substituting them for slot cars and updating the indoor-track concept. Well, two entrepreneurial guys did, and I love the stores they’ve created: American Hot Rod Racer in Sterling Heights, Michigan, and Beachwood, Ohio.

According to this story on candgnews.com, Rick Maicki saw how much fun his three kids were having with small, homebuilt pinewood derby cars. He and brother Henry wanted to leave engineering and go into something more family-oriented. Rick came up with the idea of putting reconfigurable tracks for remote-control cars in a mall environment. He also came up with a way for kids (and their parents) to build their own cars in the store before competing on the track. To build customer excitement, he added flat-panel TVs that display racers’ names, photos, car details and other statistics.

What a winning idea: Kids get to play together with cars they take pride in. Parents love to take the kids to the track for some quality time. The Maicki brothers reap the rewards; not just the monetary ones, but the joy of seeing kids’ faces light up once their cars hit the track.

Take a look at the store. It was designed by a professor at an art institute; a student did many of the murals and artwork on the walls. Those are great ways to get started in retail without spending a ton of money. The brothers also have a great website that tells everything you need to know about their two stores, including a mission and values statement. More stores are being planned, thanks to the success of the first two.

The brothers also got aggressive with their PR. It’s pretty much a story that sells itself: the rebirth of indoor model-car racing. Crain’s Cleveland Business was so impressed, they posted a five-minute video about the place. I urge you to watch it. It should get you revved up and thinking about how to keep your store in the fast lane.

Bluebird is in the Black and Going Green
Written by Jeff Grant, August 13, 2008

Once you have a good thing going in retail, it can be hard to step back and see if you can improve it. Even successful restaurants and art galleries/studios will resist change if they have steady, consistent sales. But the owners of a funky eatery/pottery/glass arts establishment in Durham, Arkansas, saw the need. They’ve embarked on a remodeling project that will result in a classier, more-upscale environment.

An article on NWAOnline.net tells how Terra Studios is being transformed into the Muse Gallery and Coffee House. The good thing the studio has had going for it is the Bluebird of Happiness. Really. They’ve sold 8 million of the glass figurines in the 20 past years, attracting about 60,000 visitors annually. Those visitors are often hungry, which is why a restaurant is on the premises.

The new owners, according to the article, “are revamping the businesses to create a sounder business plan and increase opportunities for local artists.” It’s always a calculated risk to remodel. Yet the owners recognize the need to bring the gallery and restaurant into the 21st century. They’re going about it in a smart way, I believe, by inviting more local artists to sell their wares in the gallery. This will help the new place generate a buzz in the arts community, which in turn should attract art lovers interested in more than just the Bluebird of Happiness. But the bird has a new companion, the Pink Bird of Hope, with 10 percent of sales going to the Ozark affiliate of the Susan G. Komen for the Cure Foundation.

The coffee house will offer local products, which is part of the owners’ start of making the business a “green” one. They’re already in the black from artists’ rental apartments on the property, and they’re using their own money to make all the upgrades possible. I applaud them for taking the risk. Whether the bird are blue, pink or any other color, they’re well-positioned to keep happily counting the greenbacks for many years to come.

Putting a New Spin on Nostalgia
Written by Jeff Grant, July 30, 2008

In some areas of retail, the good old days are back again.

I know I recently blogged about vinyl — as in designer purses and department store record aisles — but another story about stacks o’ wax caught my eye. UpstateLink.com in South Carolina noticed the resurgence of independent record stores in the Greenville area. The fact that there are seven such stores in a relatively small market (population 56,002 in the 2000 U.S. Census) tells me that enterprising retailers can modernize just about anything that has nostalgia value.

Vinyl record stores have always been around, despite the domination of music CDs and DVDs. But the few I’ve visited were either too claustrophobic (one was literally stacks of wax) or too trendy (another appealed to the urban grunge crowd even though it offered all musical genres). Websites for two of the South Carolina stores show good merchandising worthy of today’s best CD retail outlets. Their websites look good, but are somewhat graphics-laden and thus slow to load on some computers.

What I think the stores really have going for them is that they offer a club-like atmosphere, including live performances, barbecues, radio station promotional tie-ins and post-concert events after bands finish their sets at local venues.

There’s no question that fans of vinyl consider themselves a trendy minority, so they value retailers who cater to their needs. The same is true of other nostalgia-style businesses, like consignment shops, as this New York Times story relates. Wealthy clotheshorses are rushing to buy designer threads at incredible discounts, and easing their green consciences by purchasing recycled clothing.

The entrepreneurs who have discovered the buying power of vinyl and consignment shoppers are proof that nostalgia sells. Dress it up in a well-designed retail store with great merchandising and you’ve got a niche market almost to yourself. Add an e-commerce website and your ability to sell expands virtually worldwide. There’s nothing old-fashioned about that.

Pharmaca Has Formula for Success
Written by Jeff Grant, July 23, 2008

I recently visited Pacific Palisades, California, where my grandparents, uncle, aunt and cousins lived when I was growing up. It’s an even more desirable, upscale area today than it was in the ’50s and ’60s. I remembered that there had always been a drugstore on a main corner in the village. I wasn’t surprised that it had been replaced by a newer drugstore — if you can call it that — named Pharmaca.

When it comes to retail store design, this chic chain has come up with a formula for success. Upon entering, you immediately notice that you can see all the way to the back of the store. That’s because none of the central shelves is higher than eye level. The merchandise is neatly displayed, making it a breeze to find over-the-counter drugs, vitamins and even protein bars. The side-wall shelves reach higher, with product like slippers, canes and other larger items.

Star-like lighting hangs from the ceiling, giving the store an almost ethereal feel. Soothing colors adorn the walls. Eye-pleasing graphics relate everything from the company’s vision statement – “seek knowledge, embrace change, practice wellness, celebrate life” — to brief advice on how to buy items for specific needs. If the goal is to make you feel comfortable while shopping for items often associated with illness, Pharmaca has succeeded. All the design elements blend perfectly in a contemporary setting.

The prescription drug counter is conveniently located near the front of the store. In the back of this Pharmaca, a Wellness Center offers massage and beauty treatments. There’s a tea room and reference library. In-store events are held there, such as “Preventing Travel Sickness” and “Summertime Skin Treatment.” A monthly newsletter is available on the company website, with coupons, product information and helpful hints for customers. Staff members are friendly and knowledgeable, answering some off-the-wall questions I threw at them about store design and merchandising.

I relate all this to you as another example of how to learn from great retail design in your neighborhood. Pharmaca is adding new stores regularly, which tells me that consumers are pleased with what this “drugstore” offers. If there ever was a “destination” drugstore, this is it.

In addition to helping nurture their customers’ minds, bodies and spirits, Pharmaca has gone to great lengths to satisfy their design senses. In wishing you good health, Pharmaca has also wished you a pleasant shopping experience. Study their formula and see if it brings you a healthier bottom line.

Vinyl Revitalizes Retail
Written by Jeff Grant, July 15, 2008

Interesting how vinyl has shown up in retail news lately — from record albums to designer handbags. And it shows how enterprising retailers can turn vinyl into green.

Vinyl albums never really went away, but their presence certainly shrunk once CDs hit the scene, followed by MP3 and other digital audio formats. But purists seem to love the sound made by needle hitting vinyl. This CNN story shows how the Fred Meyer department store chain made the most of an ordering error. It received vinyl records instead of CDs for a particular album. Someone decided to try selling the vinyl versions and bam, they flew off the shelves. Now the chain will start offering vinyl at all its locations that carry music – a “sound” business decision, I must say.

Then vinyl turned to green for two Connecticut women — in more ways than one. When they learned that old billboards are full of recyclable vinyl, they started snapping it up. Then they found a way to get the vinyl cleaned with recyclable water before slicing it up to make designer purses, clutches, belts and handbags. This article from the Connecticut Business News Journal tells how the women go to great lengths to make the company even greener with locally grown cotton lining the products’ interior, shipping them in recycled packaging and printing most marketing materials on recycled paper.

They also have a great website at www.gg2g.com and slogans like “LOOK HOT WHILE SAVING THE PLANET: Accessories that are in keeping with a reuse & recycle philosophy.” The company has grown so fast that they’re looking for a larger location for manufacturing plus retail.

These stories are really about retailers who saw seized opportunities that others might overlook. Keep an eye out for your own “vinyl moment.” It could put you on track for a greener retail landscape — especially at the POS.

What’s Green and Works Downtown?
Written by Jeff Grant, July 10, 2008

It’s always gratifying to read about someone who “gets it” when it comes to neighborhood retail. Boutique owner Kristin Wild gets it at age 24. She seems to know that the right merchandise and the right location are keys to the success of her clothing store, Atticus, in downtown Madison near the University of Wisconsin.

A recent article on Madison.com tells how Wild recognized that retail was all that was missing from the city’s downtown, which has seen a boom in urban housing in recent years. As a former buyer, she jumped at the chance to take over the space vacated by a bookstore that was relocating. She found the right mix of casual designer clothes and had her sister design pedestrian-stopping displays in the two large storefront windows. Look at the photos to see how appealing the store is for the youngish shoppers Wild attracts.

Not surprisingly, Wild carries a good amount of eco-friendly “green” items made from organic cotton. Surprisingly, the article cites a study that Wal-Mart “is the biggest buyer of certified organic cotton, but many emerging designers are using it, too…(The study) estimates that the market for green apparel will grow from $3.05 billion in 2007 to $4.18 billion this year.” With so many green-conscious university students nearby, Wild should have an easy time selling her hip apparel.

As I’ve said before, rejuvenated downtowns are a great place for retailers to get their start, or for existing ones to expand. The Main Street business district of Ann Arbor, Michigan, is another good example. Coincidentally, it also is near a large university. This article on mlive.com is about how a renovated building should help draw more students, faculty and staff from the University of Michigan to the downtown area. Keep your eye out for stories like these. You should be among the first to know when opportunities arise for relocation or expansion.

Think green. Think downtown. Those who do will have a good shot at keeping the green rolling in at the POS…

Hail to the Retail Queen!
Written by Jeff Grant, July 2, 2008

Mary Portas is my new retail hero. Her BBC TV show, “Mary Queen of Shops,” hasn’t made it to this side of the world yet. But I wouldn’t be surprised if an American version is in the works, possibly with a different star (I’m available).

This article in England’s Mail Online tells all about the show. I love the premise: Portas, who owns a leading branding agency, is the consumers’ champion when it comes to small retail shops, especially clothing stores. She is “sick of surly shop assistants and wants to put the joy back into shopping,” the article says.

On the show, Portas works with owners to turn their stores around in five weeks — and not just turn around employee attitudes but also window displays, merchandise selection and even the clothing the entire staff wears.

Like me, she feels that too many store owners don’t do enough research before opening their doors to the public. That can be the kiss of death in this age of cookie-cutter retailers moving into any and all neighborhoods. If you don’t know what your competition is doing, how can you expect to ever attract their customers?

Portas also sets a good example for retailers. She puts her children above everything and advises you to never work for anyone who doesn’t do the same. Sound advice, coming from a woman who was orphaned at age 18.

Make sure you read Portas’ Golden Rules of Shopping. They’re aimed at consumers, of course. But as a retailer, you need to know what she’s telling them because it affects you. Rule No. 1: “If you don’t get good service you are effectively being ripped off. Remember, it’s part of the margin built into the ticket price.” That’s one of the best arguments for great service I’ve ever heard.

Check out Portas’ website as well. Watch some clips from her show’s first season. Consider reading her book for shoppers. I think you will find her to be a royal pain in your side — a pain that hurts so good.

What Do Shoppers Really Want?
Written by Jeff Grant, June 30, 2008

I’ve been seeking the answer to this question for years. Like you, the best I can do is make educated guesses. Suzy Gershman, the author of a new city Frommer’s shopping guide, seems to do the same in this interview with the San Francisco Chronicle. Her thoughts on how consumers shop in a down economy could help you plan your merchandise mix during these tough times.

She notes that shoppers are more likely to take a pass on stuff that looks good and opt instead for stuff that makes them feel good — especially at home, where they’re spending more time now. And she echoes my sentiment that consumers want to shop in retail stores that not only look special, but that make them feel special: “It’s that out-of-body experience when you are taken somewhere else.”

Gershman tells readers where she loves to shop in the San Francisco Bay area. They’re the kind of places where customers might find something totally unexpected to buy. Wouldn’t it be great if you could get your store mentioned in her book? It’s not out of the question. There are plenty of print and online shopping guides out there. Find out who writes them. Put them on your email list for newsletters and updates. Let them know when you have great new, hard-to-find merchandise.

For example, I recently discovered Shorelines Gallery in downtown San Diego. It’s the only place in the county to buy handmade, hand-painted Sticks furniture. The merchandise is great and the store design outstanding. I hope the owners are doing all they can to get noticed online and in print. If they’re as creative in promoting the store as they are in retail design, it shouldn’t be hard to do. Take a look at their website. It could get your creative juices flowing – and in this economy, you need all the juice you can get!

Archive Page 5

How Will You Check Out Customers?
Written by Jeff Grant, June 27, 2008

With payment by fingerprint and interactive shopping carts a reality in some cutting-edge retail stores, you should start thinking about how your customers will pay you in the future. According to this study on MediaPost.com, 19% of U.S. customers surveyed expect to check out via fingerprint recognition by 2015. They also look forward to shopping carts that “locate products in the store, check prices and promotions, upload recipes and complete the checkout process.”

Even if you’re store doesn’t offer shopping carts, it’s worth looking at the study results to see what a cross section of consumers expect in the future. Shopping by mobile phone and social networking shopping websites aren’t too difficult to get involved with, although holographic sales assistance sounds more like a something for the Jetsons at this stage.

You owe it to yourself and your clientele to keep up with the latest technologies at the cash wrap, on the sales floor and in the dressing room. If you’ve been to an Apple or Old Navy store, you know that many sales associates are in constant communication with each other via wireless headset, and some can ring up sales on the spot via wireless checkout devices that even print receipts. I certainly appreciate checking out fast even when there’s a line at the POS, and I think consumers will come to expect such convenience the more they’re exposed to it.

Read the survey results and see what I’m talking about. The more you learn about what consumers really want, the more likely you’ll be ready to satisfy their needs in the not-so-distant future.

Organic Scanning from the Kitchen
Written by Jeff Grant, June 20, 2008

Supermarket shopping via home computer has been around for a while but this new product from Ikan Technologies makes it a whole lot easier. It’s a countertop scanner that resides in your kitchen. When you’re done with a food product or other scannable item, you run its barcode under the scanner. This builds a list of items you need from participating merchants. When you’re ready to order, you can review the list before sending it wirelessly to your PC, which then transmits the order to the merchant. You can pick up the goods or have the market deliver them to you, depending on store policy.

This seems like a fantastic way to speed up shopping. Of course, it doesn’t come cheap. The Ikan scanner lists for about $399. But I see it as another way for smart retailers to engage their clients and solidify their loyalty. I can see applications even in non-food retailing, such as office-supply, athletic-goods, pool-supply and other stores that stock disposable merchandise. You’d need to convince you clients that a system like this will save them time and money. I think many of them would agree.

Speaking of kitchens, this article cites a study that shows people who buy organics are much more receptive to new products and ideas than the rest of the buying public. Affluence doesn’t appear to be a factor when buying organically, even though most organic products sell for more than their non-organic counterparts. What this study says to me is that just by promoting a few organic products in your store, you might have a better chance of attracting new customers. Whole Foods Markets, for example, sell organic clothing, skin-care products and other goods along with its organic foods. I’m sure that the customers who buy that clothing are going to walk out of Whole Foods with more than just some hip new threads.

Keep abreast of the latest in scanning technology. And don’t overlook the organic market. Sounds like a winning combination to me.

A Boulder Vision for REI
Written by Jeff Grant, June 16, 2008

I’ve always loved poking around REI stores, with their vast selection of outdoor goods and clothes. I haven’t always agreed with their merchandising tactics, however. It seemed to me that merchandise was just clustered around the store by product type, such as kayaks in one corner, handheld GPS systems in a kiosk, hiking boots in a rack, etc. I didn’t feel like I was having much of a customer experience at a destination store. Instead, it was just a walk through an assortment of departments with nice merchandise.

Now it looks like a more thoughtful approach to merchandising is seeping into the national cooperative chain, according to an article in Today’s Facility Manager. Top management is doing what any retailer — large or small — should do on a regular basis: imagine how your store(s) will look two, five or 10 years down the road.

You don’t have to pay analysts or buy research data to get ideas on planning for the future. Ask employees and customers for feedback. REI sales associates had plenty to say about floor comfort, so the REI prototype store of the future in Boulder, Colorado, incorporates their suggestions. Lighting also was a concern, so the new store features a tubular lighting system that saves energy by funneling sunlight from the roof to throughout the store.

To maintain ties to its community, the prototype store has a 2,000-square-foot community center with meeting areas and play area for kids. For-profits can rent the space, with revenues donated to various environmental groups. That’s sure to please REI’s large base of eco-aware members.

The store was kept open for all but five days before the grand opening, and was promoted on REI’s website so customers could keep abreast of the upcoming changes. Overall, it sounds like REI did a great job of planning and building out the prototype store with great concern for staff and members.

You should be thinking about your future as well. If you’re not doing so already, be sure to keep up with the latest design and merchandising trends. It’s very easy to do on the web. It took me all of 30 seconds to find the article about REI via a Google search. Survey your customers by email, and your employees in person, to find out what they like now and what they’d like to see in the future. You don’t need to plan on a scale as grand as REI’s. But if you don’t plan at all, the reality is that you might not have much of a future to look forward to.

Swedish Fashion Stores Know How to Sell
Written by Jeff Grant, June 13, 2008

I had heard of the Swedish clothing chain H&M, but didn’t give it too much thought since they didn’t have a store near me. That all changed recently when my wife and daughter made it very clear they were going to visit the first H&M in San Diego County as soon as possible after its recent opening. Then this article about H&M appeared on the front page of The San Diego Union-Tribune’s print editions. It’s been a long time since I can remember the U-T running an article about a specific retail store chain, so H&M must be doing something to garner such attention.

While it’s the low-cost, well-made, great-looking apparel that draws shoppers in, it looks like H&M knows how to market itself as well. The article notes that H&M planned to give away free T-shirts and $10 to $250 gift cards to the first 200 people in line, literally roll out a red carpet and have a disc jockey on hand on opening day. They didn’t need to, since people have waited in long lines up to 18 hours to be the first inside new H&M stores elsewhere.

A photo I saw of the new store’s interior showed clean, contemporary store fixtures with plenty of space for shoppers to wander the aisles without facing a crush of other shoppers. Since H&M relies on rapid turnover of its merchandise, it makes sense that they would display the newest, hottest items near the front of the store and less seasonal clothing farther inside.

I noticed that H&M is also on top of its online sales strategy, with a website that incorporates video and rich media. A recent article in EcommerceTimes.com names those two online features as “must-haves” for merchants who understand their online demographic.

I encourage you to read up about H&M and the “must-haves.” Great advice like this is free all over the Web, and by walking into successful retail stores. It’s all there just waiting for you to emulate in your own inimitable style. If you can get a line waiting outside your store any day of the week, you’ll have done your homework.

Havana Huge Success with Cuban-Style Apparel
Written by Jeff Grant, June 9, 2008

When customers want to buy your display items in addition to the merchandise, you know you’re doing something right. That’s what happened to Henry Leace, who started a Cuban-style shirt store in Miami. Now his Havana Shirt Store chain sells cigars and artwork in addition to the private-label shirts that have taken off in south Florida.

I haven’t seen images of his original store, but take a look at the current photos on MiamiHerald.com. They show clean, modern design that invites browsing. That’s attractive to Leace’s demographic: 25- to 55-year-old males who seek casual clothes with a little bit of a flair. The decor also should appeal to the women (or men) in their lives who seek the latest in clothes to buy for them. The Art Deco style of his Miami Beach store is pretty cool, too.

In addition, Leace is successfully going after the Hispanic market, which is extremely hot right now, according to the retail-trend analysis firm cited in the article. Leace seems to have a knack for retailing. He started out wholesaling men’s ties in 1986, did well with tie kiosks in a shopping mall and transitioned easily into retail stores. Not bad for a one-time physics major and college football player. He recognized his skill for the creative side of retailing and ran with it.

But he says he’s also good at looking for opportunities. That’s what any devoted retailer should do. Sure, you might be good at certain aspects of retailing than another, such as merchandising vs. inventory control. If you’re a good delegator, you’ll have someone performing those duties for you. That way, you can have more time to check the opportunities that are waiting for you to uncover.

Is Your Store Your Customers’ Favorite?
Written by Jeff Grant, June 4, 2008

I recently told students in one of our classes to “make your store your customers’ favorite.” I say this rather often, so I was pleased to see it reinforced in this article in Marketing Daily.

If a customer tells you that your store is his or her favorite place to shop, consider yourself lucky. And keep working hard to stay in their favor. At least that’s my take on the study discussed in the article. It found that 75% of consumers favor shopping at just one or two stores on a regular basis. That’s pretty scary when you consider how much competition there is trying to capture their retail dollars.

The study also notes that while shoppers might visit other stores for promotions and special offers, they’re still likely to return to your store if they’re happy with you. Furthermore, what you offer at point of purchase — “such as packaging design, display timing and location, in-aisle messaging, self talkers and shelf layout — all have a profound effect on what ends up in consumers’ shopping carts.”

So, make sure your POP is interesting and changes regularly so customers will look forward not just to visiting your store, but also to leaving with some impulse buys. That’s something else I tell those attending our seminars. I’m glad that I’m sending them off with third-party verification to back me up.

Ask Your Senator for a Break
Written by Jeff Grant, May 29, 2008

This blog rarely gets political, but a new retail-related bill that passed a House of Representatives vote last week is worth your attention.

According to an article in The New York Times, the Energy and Tax Extenders Act of 2008 would let retailers write off their remodeling costs over 15 years instead of the current 39 years. The bill would apply whether you owned or leased your retail space.

I’m on the side of the National Retail Federation (NRF) on this, and I encourage you to support the bill as well. As the NRF says, “the shorter period will help boost the economy by encouraging more store and restaurant owners to re-invest in their businesses.” The bill also would provide tax incentives for those retailers who go green, which is even more reason to get behind it.

The Senate is supposed to consider the measure next week. If you agree that its passage is a great way to assist retailers and stimulate the economy, contact your state senator’s office to let them know how you feel. It’s easy to do on the Senate’s web page that provides links to each senator’s “contact me” page. Just fill in the form fields and off your message goes. Democracy in action, courtesy of the Internet Age.

I’ll be watching the news next week to see how the bill fares. If you’ve ever wondered about how you senator feels about your business, this is the time to find out. And all it takes is a few clicks of your mouse.

Boston’s Really Big Apple
Written by Jeff Grant, May 27, 2008

Apple keeps topping itself in the retail arena. They just opened their biggest store anywhere, this time in Boston, according to Boston.com (free registration may be required). When you can get the mayor and news crews to attend a media preview, I would say you’ve done a great job.

I’ve been to the Apple stores in San Diego, San Francisco and Los Angeles, but it looks like the Boston space outdoes them all at 20,000 square feet. The circular see-through staircase is a real eye-popper. On the third level, Apple seals the deal for me with an entire floor devoted to customer support and education, mostly at no cost.

The article’s author points out that only a primarily single-brand store can afford to offer such intense attention to customers. The big-box stores can’t because their staff would need to be educated in many brands, and couldn’t appear to push one brand over another.

How can you apply so much customer-focused attention in your store? Even though you’re not the size of an Apple Store, you can train your staff to really know the merchandise, and to be really helpful. In San Diego, I’ve been to the lesser-known Sony Style store in the same mall as an Apple Store. While the products at Sony Style range from MP3 players to laptops to HDTVs, the sales floor was nearly devoid of customers each time I visited. The sales staff was hardly as enthusiastic as Apple’s, and I left feeling I hadn’t enjoyed the greatest customer experience.

Don’t let that happen in your store. A little education on product and customer service can go a long way. Look where that took Apple. I can hardly wait to see what they do to outshine the Boston store.

Consumers Like to Shop Where They Live
Written by Jeff Grant, May 20, 2008

Thinking of relocating your store or opening a new one? If you live in a typical U.S. city, take a look at the neighborhoods where consumers are deciding to live. There’s Lincoln Park in Chicago, SoHo in New York and East Village in San Diego. More and more, it seems like residents want easy access to shopping.

Civic officials in Hilltown, Pennsylvania, are studying whether to allow a mix of commercial, residential and retail in an area that would look like more like a 19th century village. Retailers in downtown Syracuse, New York, are eagerly awaiting new housing that will bring more customers who like to walk to shopping from home.

While suburban living is far from dead, the high cost of commuting is causing many empty-nesters and baby boomers to reconsider their living situation. A relative of mine used to pay about $375 a month for his 80-mile round-trip commute. Now it’s more like $615. Since he lives near downtown San Diego, he’s considering looking for a job there and moving nearby. Even with the relatively high cost of housing downtown, he figures he can use the gas savings to pay for a new mortgage. Plus he’ll save money on auto upkeep and insurance. That, and he’s looking forward to walking to the new supermarkets and specialty shops popping up all the time.

I encourage my retail customers to analyze the housing trends in their community when it comes to opening or moving a store. Just having low rent isn’t always the best reason to choose a location. Yes, it might cost a little more to move into the heart of the city. But if a significant number of people are moving there as well, your customer base is already off to a good start.

It’s easy to find out where the live/work/shop hot spots are. Set up search agents for “downtown residential,” “retail shopping trends” and similar terms on your daily newspaper’s website. Also check municipalities’ websites for postings about building permits to see where new businesses are heading. You might find yourself among them soon enough.

Committing to Commitment
Written by Jeff Grant, May 19, 2008

Harvard Business School may not be where you learned how to run your widget shop, but its online Working Knowledge forum pages offer some lessons that can apply to whatever you’re selling.

This particular forum is about something called “deep metaphors,” which are “basic frames or orientations we have toward the world around us.” It’s pretty heady stuff but worth perusing to apply to your business. The authors of Marketing Metaphoria: What Deep Metaphors Reveal about the Minds of Consumers (HBS Press, 2008) say some pretty interesting things about customer loyalty, which is what I’m always harping about. For example:

“Connection is a two-way street, and consumers are most apt to feel loyalty to brands and companies if they feel those in charge have a commitment to them.”

To me, that means you have to show your customers that everyone in your store – from the owner to the newest salesperson – treats them with the courtesy and respect they deserve. You need to look out for their interests by offering the best merchandise at the best price. You also must maintain a regular channel of communication, whether its email blasts, online or print newsletters or occasional phone calls to say you have something on the shelves that may interest them.

“Companies must convey that they have the consumer’s best interest at heart. This is one reason consumers use their perceptions of how firms treat their employees as a proxy for how firms value their customers. As one consumer put it, ‘If they don’t treat their staff well, you can hardly expect them to care about us.’ ”

I’ve blogged frequently the importance of having well-trained staff. But I haven’t said much about how well you treat your staff. If customers see you berating, chastising or interrupting a sales associate for any reason, it makes them wonder about your skill at treating customers. Compliment your staff often for jobs well done; save any criticisms for informal, relaxed post-mortems.

I’m no Harvard professor, but I think the authors of Marketing Metaphoria have some good information for those of us down in the trenches. I would invite their critiques anytime.

Archive Page 6

A Blockbuster Idea for Video Chain?
Written by Jeff Grant, May 12, 2008

When your business faces possible extinction, you better start re-evolving. That’s what Blockbuster Inc. seems to be doing, according to this article in the Dallas Morning News. With killer competition from the likes of Netflix and online movie sites such as Hulu.com, Blockbuster’s chief exec wants his store to become retail destinations—sort of like Borders and Barnes & Noble. I didn’t even realize that “Video” isn’t part of the stores’ name anymore. According to Wikipedia, it was Blockbuster Entertainment for a while, but now it’s just Blockbuster.

With features like kids’ play areas, a tech lounge, soda fountains and gaming consoles, Blockbuster is giving the concept a try at a 12 Dallas-area stores before it rolls them out at all 4,800 in the chain.

At the risk of every big-box retailer becoming a destination, I think Blockbuster is on the right track. At least they’re thinking out of the big box, which could help jumpstart their revival. They’ll have to really set themselves apart from the bookstores mentioned also, which also happen to sell DVDs. The concept-store photo in the article looks pretty much like any consumer electronics store’s interior.

With consumers itching to download movies from the web, Blockbuster will soon start offering an online service for that very purpose. Will that keep consumer traffic from the new stores? That chapter has yet to be written.

I wish Blockbuster all the best with their concept stores. It will be interesting to see if they’re the blockbuster idea their chief executive will be remembered for.

Turn Your Store into a Story
Written by Jeff Grant, May 6, 2008

I like this article for two reasons: It’s a great story about how the couple found a retail niche and stuck with it, and it’s a story that generated news about the business.

The store stocks things like table lamps made from tripods and other pieces fashioned from sturdy, leftover items found in old foundries, factories and farms. It built a reputation for offering well-made, eclectic furnishings. It has moved to larger locations twice since its inception, now encompassing 12,000 square feet of floor space. The store and its products have also earned a nice reputation in the community.

The owners were able to capitalize on the place’s popularity by convincing The Columbus Dispatch to write an article about it. What’s great is that the owners were able to provide customers for the writer to interview, all of whom talked about how happy they are with what they bought from the store.

Not only that, but the story has some great news hooks as well: The owners are high-school sweethearts who first met in kindergarten. Each item sold has its own distinctive serial number. The store is promoted as “where the Corn Belt embraces the Rust Belt.” Robert De Niro bought a table there for his new hotel in New York City.

These are the kinds of things that interest reporters and editors. All it takes is for an owner to recognize the things that turn a store into a story. If you advertise in the local media, let your ad rep know that you’d really like to see your store covered as a successful or interesting business (avoid advertorials as they have less credibility). If you don’t advertise with them, craft a short, well-written email/voicemail/phone script about your place. Find out who covers local businesses, then call or mail them. You often can find their contact information at the end of an article online or in print.

It might take a while for you to find the right words to tell the right editor at the right time. But keep at it. Sooner or later, they’re going to see that you have “the write stuff.”

Get Your Share of Tax Refunds/Rebates
Written by Jeff Grant, April 30, 2008

Spend it or save it? That’s the dilemma facing millions of Americans who have received or are expecting a federal income tax refund. And millions of those will receive the economic-stimulus rebate starting in May.

According to an AP-AOL Money & Finance poll, one in five recipients plan to spend their tax refund on everything from everyday needs to shopping sprees and vacations. Makes sense to me that they’ll probably be in a spending mood when their stimulus check arrives as well.

Is your store going to be on the receiving end? If you already lured customers in with their tax refunds, you should be well-prepared to do the same with their rebates. Study what the larger retailers are planning to do, as this Boston Globe article describes. Offer discounts on “green” merchandise or donate a portion of the purchase price to a “green” organization they select from a list you provide.

I like what Sears and Kmart are doing, and there’s no reason you can’t do it if you’re set up for gift cards: Add another 10 percent or so the card’s value, or issue a second card to the purchaser for that percentage. Why not? Everyone loves free money and it won’t cost you much to give some away with this method.

Think about what you’re doing with your refund/rebate. Figure out a creative way to get some retail mileage out of it, and then try that tactic at your store. With millions of retailers looking for ways to snare millions of consumers who aren’t planning to save their refund/rebate, you better grab them before your competition does.

Gloom, Doom or Boom?
Written by Jeff Grant, April 24, 2008

It can get depressing when you read the news about store closings. A legendary 7-year-old scrapbooking store in Salt Lake City will soon be just a memory because the landlord wouldn’t accept a year-to-year lease. An eclectic furniture store in Austin is shutting down after 26 years because “There are almost as many lookers but not as many buyers.” A once-bustling urban core in Halifax looks more abandoned each day as retailers leave in droves, blaming city government for not helping them out. Blogger Cynthia C. observes “There is something creepy and terribly sad about watching a retail store in its last days of a bankruptcy sale.”

Times are tough for not just for consumers, but also for the merchants who try to stay profitable while serving them. At least that’s what the media tends to focus on: the gloom and doom of retail. A Google News search for “retail store design” turns up more negative stories than positive ones these days.

Yet I’m amazed at how much activity I encounter as I connect with new and established retailers around the country. They’re constantly on the lookout for not only the newest, freshest ideas in store design and outfitting, but also for the most effective ways to serve their customers in the Internet age. That means staying touch with your loyal clients, learning what they like and dislike about your store, and asking them to help you serve them better.

I’m encouraged when I read a positive story about a new store opening or concept. The new Adora department store in Manila, Philippines, has a fantastic concept: It only looks high-end. A spokesperson says, “The nice store is only a stage; it’s not the star. We have a mix of things that relates to the customer we cater to.” The merchandise is carefully “edited and curated” and “the floor staff is ‘well versed on all the items’ so that a single person can assist a customer around from RTW to skincare to jewelry.” And to top it off, “Business hours don’t start until 1 p.m. as the mornings are devoted to reorienting the sales team or rearranging the merchandise.”

That’s the kind of store I want to shop in. And do business with. Can your customers say the same about your store? If so, you’re bound to see a sales boom. If not, I’m afraid, the media will just have more gloom and doom to feed on.

The Price is Right?
Written by Jeff Grant, April 10, 2008

How much are you willing to drop a price if a customer wants to haggle? Or are you willing to drop it all? Better start thinking about it, because the big-box stores are already doing it, according to a story from the New York Times News Service.

Haggling goes on in mercados, souks and marketplaces all over the world. Yet it’s a rare practice among most American retailers. Maybe now is a good time for it to become a retail trend.

I didn’t know that many Best Buy and Home Depot stores are willing to knock down prices for insistent customers, especially if they buy a value-add like a service warranty. It makes good sense for the big guys to allow haggling because they can absorb the discount. But should smaller retailers do the same?

I say go for it if it means holding on to a loyal customer or reeling in a new one. Like the article says, brief your staff on how much they’re allowed to lower prices. Don’t tell them to encourage haggling, but train them on how to handle the occasional haggler. Word will get around soon enough as one customer tells another about the great deal they got at your store, and the great service.

The Internet and eBay have empowered consumers to shop around for the best deal on many purchases. The best way to empower your business is to go with the flow. Give haggling a try, within reason. In this economy, it may be the answer to a problem you didn’t even know you had.

Praise the Lord & Taylor
Written by Jeff Grant, March 20, 2008

Lord & Taylor isn’t a name that springs to mind when it comes to retail creativity. The mainly East Coast upscale department store chain has been around since 1826. As one would expect, a successful chain would have to reinvent itself more than once during its almost 200-year-old existence. L&T was America’s oldest department store when it was purchased by a private equity firm two years ago. And it whether it could reinvent itself one last time was the question on competitors’ and analysts’ minds.

Luckily, the new owners realized what great brand equity they had in the Lord & Taylor name and decided not to sell it off store location by store location. Also by luck, Jane Elfers, the CEO since 2000, had been fighting to reposition the store for years. This was her chance, and she pulled it off, according CNNMoney.com. She dropped clothing lines that weren’t selling well, and then added brighter, fresher labels to draw in new customers. She also closed 32 underperforming stores. The results impressed the equity firm so much that it agreed to invest a half-billion dollars in renovations. The results aren’t in yet, but the investors seem to be happy with sales and consumers are coming back to see how the store reinvented itself.

It takes guts to make the kind of moves Jane Elfers made. But sometimes you have to bet the house–quite literally–to change with the times. Take a look at the Lord & Taylor website to see how the chain presents itself today. You should always be thinking about how your retail store is perceived not just by your clients, but by the larger world out there. If you haven’t reinvented it for a few years, this is a good time to consider it. With all the Internet and merchandising possibilities available to you, this is a great time to start becoming a retail legend.

P.S. For stimulating ideas on how to either reinvent your store or just keep up with the times, read this roundtable discussion with some name-brand retail experts on The Hub.

Victoria’s Not-So-Secret Overhaul
Written by Jeff Grant, March 5, 2008

There’s been a lot of media buzz lately about how Victoria’s Secret’s CEO wants to reshape (excuse the pun) the lingerie company’s image from too sexy to more feminine.

Sorry, but I just saw a Victoria’s Secret TV ad about its new Biofit bra line and nearly had to take a cold shower. Methinks the lady doth protest too much. If this type of advertising is going to appeal to the middle-American woman I think Victoria’s Secret wants to reach, they’ll have to ratchet the heat down a few dozen degrees.

This interesting read in the Pittsburgh Post-Gazette is about how the CEO claims to want to “get back to basics.” Why should they? Well, because profits and sales are down, most likely, and the firm thinks reinventing itself will help.

As the columnist points out, sexy lingerie is what made the firm take off in the first place. Interestingly, it was founded by a man who sought an “embarrassment-free” environment for other men to shop for lingerie. There’s no shortage of standup comedians who will tell you that shopping in a VS store is one of the most embarrassing things a guy can do.

If you’re sales are a little slow, I say don’t rush into an entirely new look or merchandise. Your customers expect a certain level of stability inside your store; it makes them feel comfortable, loyal and in a spending mood.

It will be interesting to see what the less-steamy Victoria’s Secret image will look like. I, for one, hope it keeps the cold showers a shopping hazard.

More Bang for the Starbucks?
Written by Jeff Grant, February 21, 2008

It’s not just the financial community that’s scrutinizing the 15,000-store Starbucks coffee shop chain, it’s also the neighborhood communities. After all, it’s the local residents and workers who frequent Starbucks. And according to this article in BusinessWeek, they’re frequenting their local Starbucks less frequently.

It’s no surprise to me. There seems to be no end to the Starbucks alternatives popping up everywhere. They look cooler, offer tempting menu choices, often provide free Wi-Fi access and have lower prices. As the article points out, the Starbucks experience has been diluted by the chain’s focus on merchandising. It’s time to get back to the “luxury coffee experience,” the analysts claim.

I find it interesting that good merchandising has been overshadowed by a cup of coffee. But that’s what has the financial folks so riveted to Starbucks’ upcoming revamp in March. One expert suggests they open a chain of microstores that focus on the basics: just world-class coffee drinks, with no mugs or chocolate-coated graham crackers to be found.

As someone devoted to merchandising, I’ll be interested to see what transpires. Seems like Starbucks’ quest for market share has left it groping for repeat customers. I guess they’re just tired of the same old grind.

A Golden Opportunity for Woodworker
Written by Jeff Grant, February 10, 2008

Here’s an article about a former goldsmith in Ohio who turned his real passion — woodworking — into a retail opportunity. Eric Hyde was between jobs so he found a big workshop where he could set up all his lathes, saws and power tools and devote more time to his longtime hobby. But he soon realized that others who share his love of making objects out of wood were willing to pay to use those tools. And so A WoodWorker’s Place was born.

It’s grown so big that Hyde now has five employees, each specializing in different types of woodworking. One side of the place is devoted to retailing, including tools and wood for working. There’s also a design library and a computer with CAD software, free for customers to use. Woodworking classes are held there, too.

This is a great example for anyone who wants to earn a living doing what they like best. Unfortunately, some people in retail don’t stop to think what they’d really like to be selling. It’s a good idea to pause and reflect on your life goals occasionally. Now that you’re experienced in retailing clothes, why not take a fling at merchandising what you are passionate about, like diving gear? If diving is what you’d rather be doing, why not make money at it?

Look what Hyde did: He went from goldsmith to making his gold with wood. If he can do it, woodn’t you like to try?

You Still Have a Store?
Written by Jeff Grant, February 4, 2008

If you’re a retailer with a brick-and-mortar store, you’re still in the majority. But maybe not for long. A new study by the Direct Marketing Association found that 41% of respondents don’t have a physical store, and their number is growing. That leaves 59% with a retail street presence. If you want to stay on the street, you better act now.

The study points out that retailers who want to be successful have to be jacks of all retailing trades. They have to bring together all facets of retail, including “consistent brand message, timing, creativity of promotions, loyalty programs and fulfillment.” To that I would add knowledge of online retailing. Because without it, you’re going to face pretty stiff competition from those who have it.

While the DMA obviously would like to see more of us using direct mail, the study notes that websites are the most consistently used direct marketing channel, followed by email and direct mail; mobile is the direct marketing channel retailers are least likely to use; and 66 percent of the respondents gather customer information from direct mail, while 65 percent gather it from the Internet. So, it’s pretty obvious, knowing how to use online will be a differentiator between brick-and-mortar and virtual retailers for the long term.

Last year, the report says, physical stores and retail websites reported the highest revenues of any retail sources. That’s good news for street and web retailers. Make sure you have your feet firmly planted in both worlds. It’s the best way to get customers through your front door—or your portal.

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Don’t Let ‘em Leave Empty-Handed
Written by Jeff Grant, January 30, 2008

If you’re not reading Entrepreneur magazine or Entrepreneur.com, get with the program. It should be required reading for anyone in retail, whether new kid on the block or seasoned veteran.

Entrepreneur columnist Brad Sugars has a great piece on MSNBC.com on six steps you and your staff can take to turn shoppers into buyers. Besides the obvious–banning “Can I help you?” from the retail floor–Sugars says the first step is to calculate your conversion rate. It’s easy to do and the results will help you fine-tune your sales techniques.

Even answering phone inquires correctly can help boost sales, Sugars says. I called an auto repair shop recently to get an idea of what they charge for various services. The guy at the other end acted like he was put out and in a rush to get off the phone. If he had only asked me a few questions about my car or my driving habits, he probably would have had a new customer. But he didn’t and I eventually found a more customer-focused mechanic.

You hear it stressed again and again: Listen to the customer before you start your sales pitch. Act like you’re a trusted adviser rather than a salesperson trying to make a quota. Whether face to face, on the phone or online, remember that customer loyalty starts with great customer service.

Read what Sugars has to say. Then make sure your sales staff reads it. And encourage them to visit Entrepreneur.com. It could be the best sales pitch you ever make.

Addicted to Text
Written by Jeff Grant, January 16, 2008

Here’s a juicy nugget of information: “About 68 percent of Americans spend more time with their computers than their spouses,” says a trend-spotter quoted in this Cincinatti.comarticle. It’s juicy because savvy retailers can turn that rather sad statistic into a marketing advantage.

Even though the article is mostly about grocery retailers, it points out how customers really cherish relationships with their favorite stores. “Only 27 percent of grocery shoppers are loyal to a store,” an IBM retailing pro says. “That leaves three of four shoppers up for grabs.”

One way to grab them, the trend-spotter says: “Reach them with text messages and you lock in a customer.” I think it’s a great idea. Tex-messaging your customers’ cell phones and sending regular emails helps cement their loyalty to you. Making them the first to know about new products or special sales is easy and effective. Both tactics should be a part of your retailing toolkit. And if their spouse gets jealous, all the better for you

The article also discusses the growing impact of devices such as handheld scanners that allow shoppers to check each item they put in their cart, and then do a self-checkout without using a cashier. “Consumer goods companies now have the ability to talk directly to a customer in the store and are less reliant on commercials on TV,” a Motorola marketing exec says. “Electronic marketing offers a real competitive advantage.”

While such in-store devices are just debuting now, you should check them out now. You don’t want to be left in the dust when your customers decide to be loyal to someone else.

New Year, New Opportunities
Written by Jeff Grant, January 9, 2008

I hope you had a great holiday season. But as we constantly hear from the experts, that season is when many retailers grab one-third of their annual revenues. Now that you’re on a roll, how are you going to keep from rolling downhill?

First of all, take some time for yourself, the article says. Relax, take a vacation, get your mind off work for a while. Then start focusing on how to keep the sales momentum going. Get more connected to your customers than ever, those experts say, because if you’re not doing it, someone else is.

In this challenging economy, you’ve got to do more than have great store layout and great merchandise. Make sure your staff also is well-rested and ready to tackle the new year. Watch you customers’ shopping patterns. Are more customers coming in during the lunch hour than in the evening? If so, modify the work schedule so you have more staff during the busy hours.

Customer loyalty is more important than ever. Use every trick in the book to maintain it. Use invitation-only sales, email newsletters, rewards programs, coupons and community sponsorships. “How a person feels after they shop at a store is extremely important,” a retail-turnover expert says. Make it your resolution to make everyone who shops at your place feel like a special guest. Don’t go overboard, but show your appreciation every way you can. You can be sure your competition is.

A Blog’s-Eye View of 2007
Written by Jeff Grant, January 8, 2008

It’s hard to believe that we started this blog almost exactly one year ago! The retail landscape continues to evolve at Internet speed, even for strictly brick-and-mortar stores. I rarely find a retailer who hasn’t tapped into the web’s power, either for online ordering or to keep track of the competition.

Looking back at 2007, here are a few of the blog topics that stood out in my mind, some web-related, some not:

• Are You Hitting the Right Notes with Customers? January 25: Industry studies show that the right music keeps customers in stores longer and keeps them in spending mode…Not sure what kind of tunes your customers like? Ask them. Give them a quick music survey form to complete and drop in a box.

• Online Reviews are Nothing to be Afraid Of; February 15: As this article in Business Week points out, letting your customers honestly critique your business can be a good thing…In this age of online social networking, the article says, “…63% of shoppers are more likely to purchase from a site if it has ratings and review.”

• Are You “Experienced”? March 28, 2007: Now I see in The New York Times (free registration may be required) that retail giants like Samsung are opening huge “experience” stores where they don’t sell a thing…I try to make every store our company designs an experience in itself. We do our best to get customers in your door. The rest is up to you.

• The Customer is Always Right, You Guys; May 10, 2007: Places like Vons, Cost Plus World Market and Coco’s are more helpful than before. They look you in the eye, listen to your questions and are eager to help. If these guys–I mean these staff members–can do it, so can your guys, gals and other valued employees.

I look forward to learning about more retail changes in 2008. There’s plenty of helpful advice online. I always encourage retailers to visit the competition as well as stores they admire. Analyze how they entice customers from the front windows to the back shelves, and then emulate them in your own style.

Even in this down economy, I’m still the optimist – I see nothing but good times ahead this year. We’ll soon announce some exciting news about how we can help you improve all aspects of your retail business. Whether you buy your fixtures from us is unimportant. We just want you to give you the tools for success. Because when you succeed, it benefits all of retail.

Happy New Year. You deserve it!

The Doctor Is In…The Retail Groove
Written by Jeff Grant, January 3, 2008

Independent computer-repair shops are usually pretty dreary places. Even with the Geek Squad campaign that elevates PC nerds to lovable heroes, I’ve found the smaller independent “screwdriver shops” to be pretty good at repairs and data recovery, but not at all good at store layout. Not that they necessarily need to be attractive, but it wouldn’t hurt, either.

I mention all this because I just visited a fairly new addition to this market, Data Doctors. Their new shop in Vista, California, stands out from the pack, starting with the signage. It’s bold and bright, and immediately tells you what kind of place this is. Inside the store are large, great-looking wall hangings that reinforce the message. One graphic is of a toaster popping up CD disks, with the headline “Is your data toast? We’ll recover it.”

The store is clean and inviting, with modern cabinetry and just a long counter for the geek on duty. Behind that are panels shielding the actual repair area, which we probably wouldn’t want to look at anyway, so long as the work gets done properly.

If anything, I think the place looks a little too sparse in front. No chairs, no magazines, nothing that makes a customer want to stick around. Now that in itself might be a good way to keep naggy non-geeks from lingering. But I think a few items of merchandise and chairs would lend a homier touch — and a reason to check out all the graphics. There were so many, I didn’t have time to check them all out.

Data Doctors is a small chain that seems to be growing fast. They didn’t pop up on the first page of Google searches for “computer repair” and “data recovery.” I hope they have smart marketers who will remedy that situation. I think Data Doctors is on track for success with a winning prescription of graphics and design. And with a little more self-medication, they might give the Geek Squad a run for their money.

What Did You Learn This Holiday Season?
Written by Jeff Grant, December 29, 2007

Every year at this time, the media devote an enormous amount of space to holiday retail shopping. This year, the main thrust seemed to be how retailers were slashing prices, staying open late and hoping last-minute shoppers would snap up gift cards. Did all these strategies work? My opinion is: yes, yes and yes.

If you’re a small to medium-size retailer, consider each approach and see which works best for you. Deep price cuts might be a good idea at holiday time. They let you clear the back shelves of slow-moving inventory and, if displayed near higher-priced items, can lead to additional sales with better margins.

Staying open late — or opening early, for that matter — is a good way to differentiate your store from the competition. You see the big-box retailers doing it all the time; why shouldn’t you? But make sure you have some great merchandise or great prices to draw the customers in. Let them know in advance that coffee, juice and donuts will be served. You could even throw in a Visa gift card for the first customer in the door. Use your imagination to make it worthwhile for customers and employees alike.

We’ve blogged about gift cards here before. They’re relatively inexpensive to buy. You can even purchase all the components needed to make your own. Card sales can bring in short-term cash flow and, of course, “bonus” cash from customers who lose or forget about their cards. Make sure you have safeguards in place to assist would-be card-bearers who misplaced theirs — it’s not worth it to upset a potential repeat customer.

Continue to read up on what the large retailers did to overcome fears that the economic downturn would negatively impact their sales. With gas prices predicted to hit $4 a gallon in the months ahead, you’re going to have to learn how to get customers to drive your way.

If They Can Get It, So Can You
Written by Jeff Grant, December 26, 2007

I think the phrase “get it” — as in “Some small retailers really get it when it comes to satisfying their customers” — is already a cliché. But in that sentence, the “get it” part is absolutely true, as this New York Times article points out.

I have to cheer when I read about retailers doing the right things to entice customers. Even though they might also sound clichéd, simple things like setting out cookies and cider during the Christmas season shows shoppers that you’re thinking of their personal comfort and joy. And that puts them in a better shopping mood.

But the retailers mentioned in the article go beyond just offering refreshments. They are tuned in to their customers’ wants and needs via email surveys, in-store feedback, private parties, free gift wrapping…the kinds of thing this blog has been advocating for so long — even training you staff to give alternate gift recommendations if certain items are out of stock.

All the tools you need to get in touch with your customers are easy to come by. Online surveys, web page hosting, email blasting and the like are found with a simple Google search. Use those tools to get customers in the door. Then keep them inside by demonstrating how you offer personalized attention that the big-box stores can’t beat.

Just before Christmas, I picked up some clothes from the dry cleaner I sometimes use. I had barely spoken to the owner over the years. But this time, he wished me a merry Christmas and handed me a little bag of candy. I could tell he appreciated my business, and it made me feel good about being his customer.

This holiday season is a good time to remember: All the great store layouts and merchandising tricks don’t mean a thing if your store doesn’t make customers feel like they belong there. It’s up to you and your staff to make it happen — not just this holiday shopping season but all year long. It’s the best gift you can give yourself. Success stories like those in the Times article abound. With a little effort, you can find yourself among them.

Naughty Shoppers, Nice Solution?
Written by Jeff Grant, December 15, 2007

I don’t know why the executive editor of NRF Stores was so surprised to find rude shoppers at the mall, many of them glued to their cell phones while trying on clothes and checking out at the register. You see the same thing at restaurants, sporting events, airports and just about everywhere people congregate. And especially at this time of year.

Maybe these shoppers become more civil when they can personalize the gifts they’re buying, as this USA Today story suggests. I’ve blogged before about how customers like to feel more connected to the buying process. Now retailers are making it easy for them to do things like add photos to gift cards, write messages in chocolate bars and build custom-colored athletic shoes right in the store.

It’s not that expensive to get into the personalization process, especially when weighed against the customer loyalty it builds. A Google search for “make your own retail gift cards” turns up dozens of companies that can help get you started. Everything from MP3 player ear buds to wine bottles can be personalized.

If getting personal with your customers helps cut down the rudeness factor, I say go for it. You might even get them to call their friends on their cell phones to tell them about your great deals.

A Tale of Two Cities’ Design Scenes
Written by Jeff Grant, December 11, 2007

Los Angeles and San Francisco have always been rivals in everything from baseball teams to culinary superiority to cultural attractions. Having lived in both cities, I can verify that those rivalries are indeed real.

Now it looks like L.A.’s retail boutiques are suffering an economic blow, while San Francisco’s fashion scene is on a roll. The reason? I think the creative director for Barneys New York, quoted in the Bay Guardian blog, has it nailed: “People here (San Francisco) are into design. It’s about the craft of fashion, not the hype of fashion.” In L.A., he points out in the article, style is all about exhibitionism or what other people think of what you’re wearing. “Here,” he says, it’s what you think of what you’re wearing.”

After reading the Los Angeles Times article and the Bay Guardian blog, I conclude that the L.A. shops didn’t pay enough attention to the bottom line. They were the fashion flavor of the month, with customers’ loyalty lasting only until the next trendy boutique popped up. When the realities of the economic slump finally hit their customers, it was too late. Virtually all the shops were beaten down by the Macy’s, Nordstroms and even the Mervyns of the retail world.

In San Francisco, the trendsetters stuck together for the betterment of their community. As the Guardian blogger said, “…the point is that here, creativity, innovation, and plain old weirdness is still king.

It would behoove you to know what your competition is up to, and to possibly form an alliance with them–a retail owners’ association, for example, that creates sidewalk sales, block parties, coupon clubs, etc. Successful retailers know that they have to stay ahead of the curve. Make sure you don’t fall behind it.

Are You on the Cozy Bandwagon?
Written by Jeff Grant, December 5, 2007

The holiday season usually brings an overload of news stories with forecasts, trends and advice for retailers and customers alike. A reporter at the The Mercury News in San Jose, Calif., assembled some of the latest data nuggets from industry experts. It’s fun to see if you agree or disagree with them.

For example: “…metallic is out and warmer colors are in…merchants are turning to palettes that contain more red, orange, brown, green and yellow in order to create cozier environments. Some stores are adding carpeting and even applying sound-absorption techniques.” I agree. Nothing wrong with cozy. Sound-absorption materials can get pricey, though. Maybe if you’re shop is next to an adventure-sports store with a cranked-up sound system.

“…ages 18-29, born 1978 to 1989 are much more interested than other generations in having retailers provide valet parking.” If it’s OK with your landlord, local parking lot owners, and local municipal codes, I say go for it. Anything you can do to get them through your front door is worth the cost.

“…the ‘Silent/GI Generation’ (62 and older, 1900-1945) prefers shopping at Wal-Mart to other stores and do less holiday shopping on Black Friday than other generations.” That’s good to know. If your customers fit that demographic, lure them in with specials early in the day or other times your store isn’t as busy as it could be.

“…84 percent of consumers said they wouldn’t be completing their Christmas shopping until either two weeks before the holiday, one week before or…Dec. 24.” Those last two weeks always deliver a crush of consumers. Entice them in with late-shopper bargains, coupons, emails, phone calls, etc. Make it a point to reward to their tardy habits.

You can find this kind of advice all over the Internet. Make sure it’s from credible sources before you apply it to your needs. And it’s not too early to start looking for data on post-Christmas sales as well. I’ll keep you posted. In the meantime, keep your retail elves busy.

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Mad About Muji, Sweet on CB2
Written by Jeff Grant, December 2, 2007

As a baby boomer, I’m still scratching my head a bit about Muji, a Japanese retailer just launching its first U.S. stores. They offer unadorned home goods a few notches above IKEA’s. Yet they have an almost cult-like following. Muji devotees lined the sidewalks most of the day at Muji’s grand opening in New York City. Another IKEA-like store, CB2, also has a loyal following of post-boomers.

Both retailers seem to have struck a chord with a generation of “dedicated design heads” who like their furniture plain yet well-built, rejecting the perceived ostentatiousness of their parents’ generation when it comes to living with design.

After reading this article in The New York Times, I see that both retailers are gaining success by creating a buzz. They’ve opened stores in a neighborhood undergoing gentrification. They have well-trained salespeople who can relate to the target customers. The merchandise is hard to find anywhere else. It all adds up to shopping destinations or “adventure shopping,” as some call it. This is what affluent shoppers want, and they are more than willing to part with their hard-earned cash to be part of this buzz.

It’s not a new concept. Even the ancient Romans had exclusive shopping areas for the rich and powerful. Muji and CB2 are just the modern-day equivalents.

An up-and-coming location. Unique merchandise. Simpatico sales staff. It’s a formula for retail success. Make it part of your recipe as well. Always be on the lookout for the next hot trend, and be ready to jump on it. Remember, another retailer is lurking around the corner with another cool idea designed to siphon away your customers. Plan ahead and you’ll always be able to reverse the flow.

Cool, Calm and Collective Retailing
Written by Jeff Grant, November 28, 2007

I meet people of all ages who complain how expensive it is to start their own retail business. And, unfortunately, I usually agree with them. But if you’re willing to share the overhead –and the floor space – with others in your position, you just might get your big break.

That’s what the young retailers in the collective store known as the Dressing Room are doing in New York. A dozen clothing designers are splitting the rent and displaying their wares in a space none could afford alone. This trend is just catching on in the U.S., but it’s already a huge hit in countries like Belgium and Japan.

At the Dressing Room, everyone shares in some common duties like working on the sales floor a certain number of days. But that also gives them access to a studio in the basement, where they can work on their designs.

We’ve all seen this concept carried out to the max in “antique malls” where sellers rent spaces and work on commission. But the Dressing Room and its competitors sound like the kind of place for those who want hands-on experience in the retail world. If you’re in that category, start networking and maybe you can get in on the ground floor. It could lead to a sales floor of your own sooner than you expected.

“The Front Face for Apple Now”
Written by Jeff Grant, November 25, 2007

Ah, yes, another blog about Apple. You must know by now that I’ve been a Macintosh user since they were introduced in 1984. Back then I was more interested in the technology than their retail side, which was nonexistent. Now I carefully watch what goes on in each Apple Store I visit because, like their computers, Apple is setting the pace for consumer retail.

The company’s 201 stores were recently redesigned again. This is the third or fourth redesign I can recall, and each one improves on the rest. Now the checkout registers are completely gone from customers’ sight; staff carries wireless scanners/registers that complete the sale on the sales floor and either email the receipt or beams it to well-hidden printers.

All of the Macs, iMacs, iPods, iPhones and other product are on tables that invite immediate exploring by grown-ups and kids alike. Each computer is connected to the Internet, and each music player is preloaded with content. It’s a gadget lover’s nirvana.

Ultimately, though, the stores wouldn’t work without the so-called “concierges” who attach themselves to customers. I’ve found almost all of them to be knowledgeable about every product in the store. If they can’t answer a question, they’ll find someone who can. They are eager (sometimes too eager) and polite, unlike many of the sales staff at big-box consumer electronics stores. Obviously, some excellent training is going on.

It’s paying off for Apple, because more than 100 million visitors came in during its fiscal year that ended in September. They contributed $4.2 billion in revenue, up about 24 percent from $3.4 billion the last fiscal year.

Maybe Apple’s concierges and wireless scanners aren’t your retail style, but you sure can learn from them. Can your salespeople answer all of your customers’ questions? Do they treat your customers courteously, without the condescending tone I’ve seen too far often in retail? Are they willing to go the extra mile for your customers – and for you?

Think about it. You don’t need to look like an Apple store. But you can embrace the way they treat customers as a core value.

When Black Friday Comes…
Written by Jeff Grant, November 22, 2007

…will you be as prepared as Best Buy? The consumer electronics retailer is rehearsing its staff to cope with the expected onslaught of shoppers. Great idea, and one that surely grabs media attention.

Smaller retails can only pray that they’ll have long lines and extra cashiers on hand for the three-day shopping surge after Thanksgiving. If you’ve done all the right merchandising and marketing, you’ll get your fair share of the in-store shoppers. Either way, have you taken the time work with your staff on how to handle holiday crowds?

Whatever your T-Day and beyond situation, take the time to work with your staff to discuss ways to accommodate holiday shoppers. Do some role-playing and set up some horror scenarios. A few minor changes like posts and ropes in front of the registers, better directional signs and clearer price tags can save everyone a lot of grief.
You’ll be surprised at how far a little preparation will go. Your employees will thank you for it–not to mention your customers.

Best of luck to you this Friday and the entire holiday shopping season. If you have any ideas to help make your fellow retailers jolly, I’d be glad to share them here.

Getting Adventurous at IKEA
Written by Jeff Grant, November 18, 2007

Maybe last Wednesday was a slow news day in Orlando, Florida. Could that be why the grand opening of a new IKEA store dominated the headlines of OrlandoSentinel.com? Or was it newsworthy that IKEA’s combination of merchandise and design attract assemble-it-yourself furniture groupies? I think it was the latter.

I’ve always thought the Swedish home-furniture retailer did a fantastic job of drawing shoppers in and keeping them moving through the huge stores. I didn’t know there were so many IKEA fanatics, like the ones in the article who camped out for the grand opening.

“Adventure shopping” is what a marketing-strategy expert calls IKEA’s successful formula. What a great description. We hear all the time about “destination shopping,” but IKEA’s takes it a few steps further. You can drop your kids off in day care, stroll through the store to see what’s new, enjoy a delicious meal in the café, pick up your kids, and drive away satisfied.

I visit the IKEA in San Diego a few times a year and am glad to see that there’s always a decent merchandise churn. The old standbys like freezer-bag clips are still there, but so are the latest TV stands. Yet I get vacuumed in like everyone else and usually walk the entire showroom floor—on both floors. (There are some well-disguised shortcuts that let you get out faster, but I’ll let you find them yourself.)

Shopping should be an adventure. You can make your retail store more adventurous just by changing the aisle configurations every once in a while. Try a new paint color on the walls. Replace carpet in high-traffic areas. Hang signage from the ceiling to eye level. None of this is on the scale of an IKEA, but it just might keep your store on your customers’ “adventure list.”

Fresh & Easy a Hit with Pros and Regular Joes
Written by Jeff Grant, November 16, 2007

I wrote a while back about the British food giant Tesco, whose Fresh & Easy markets are just getting started on this side of the globe. Looks like they’re doing pretty well, according to this article in the Los Angeles Times. The newspaper sent some notable chefs, foodies and staff writers to check out the small supermarkets. They also talked to customers.

Interesting that while they praised the food selection, they also had a lot to say about the stores’ interior layout and design. They liked the “interior design, because of wide aisles, clearly written signs, bright lighting and an uncluttered feel.” A shopper said, “I like the nice atmosphere. It doesn’t overwhelm you like other stores.”

I’ve visited Tesco stores in the United Kingdom and found them to be likewise well laid out, even for Yanks who don’t recognize all of the food choices. The stores are designed to keep you moving, ever on the lookout for the surprises ahead on the next aisle. That could apply to your store, too, even if it’s not at all food-related.

Keep your customers moving by creating logical places to stop, like sales tables or new-merchandise shelves, all tied together with appropriate signage. Add a little element of surprise to their shopping experience. From the British Isles to your store’s aisles, it’s a simple technique that will have your customers coming back for more.

From Ad Illustrator to Retail Art Icon
Written by Jeff Grant, November 8, 2007

I never knew that retail art galleries barely existed in this country until the mid 1920s. Or that the reason they have flourished since then is because of an Eastern European immigrant named Edith Halpert, who started her career at the original (and still standing) Macy’s in New York City.

I just learned this at a talk by Lindsay Pollock, the author of a new book on Halpert, “The Girl with the Gallery: Edith Gregor Halpert and the Making of the Modern Art Market” (PublicAffairs, a member of the Perseus Books Group, 2007, $16.95).

Halpert’s talent as an artist developed early. She went to work as an illustrator in Macy’s advertising department while in her teens. It was there, Pollock says, that Halpert picked up the principles of retail merchandising, store layout and design, and customer service.

After marrying an artist, the pair lived for a time in Europe, where retail art galleries were already established but had more of a museum atmosphere. She realized there was a market for galleries in New York after meeting and cultivating the artists she met in Europe. She took a gamble and opened her Downtown Gallery in New York, a tasteful but homey place where visitors were made to feel comfortable around the art and artists.

The gallery flourished for 44 years. Halpert invented the market for American folk art, and championed the growth of the American modern art movement. She cut legendary deals with artists and educated her patrons.

She became an icon in the art world. And she did it by doing what I constantly harp on in this blog: If you want to be a successful retailer, study what the really successful retailers are doing. Then adapt their practices to your store’s style. Halpert had the good sense to absorb it all as a teen at Macy’s. All you have to do is take a walk through your regional mall. I’ll bet it even has a Macy’s.

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Using Good Scents on Main Street
Written by Jeff Grant, October 18, 2007

An email from Doris Anderson of the Golden Pear gift shop on Main Street in Kelseyville, California:

“Loved the article ‘Sense of Smell.’ This is something that has been overlooked for too long in business. I use this marketing device all the time, as well as music to get people to come into my store (I piped music outside of the store). It’s incredible how well it works. I would suggest that small businesses, in particular, just try it!

“I also have a cat (real) in my store, loves to lay in the window; you would think by the response that people had ever seen a cat before. Sasha, my little black and white cat, is my best salesperson. I have rescued and adopted out three cats. They are great company on those slow rainy days, and on top of all this, a great way to save a little life.”

Quite a combination–scents, music and a cat. Animals are something I hadn’t thought about as merchandising tool. But I have seen quite a few shops of all kinds that have a talking parrot inside or out. That never fails to bring in the customers.

Sounds like Doris did what I recommend: Experiment with all the senses. Scents, sounds, pets–any kind of unexpected sensory stimulation might do the trick. Just don’t put Sasha and Polly in the same window. At least until they learn to tolerate each other.

Whole Foods Wholly Involved in Retail Design
Written by Jeff Grant, October 16, 2007

By now, everyone in the Oakland area must know that Whole Foods recently opened its first store in that city across the bay from San Francisco. That’s because the “natural and organic supermarket” chain is making sure it tailors its merchandising to virtually all segments of the community, from foodies to nonprofits. Countertops are made of recycled soda bottles, among other things–just one of the “green touches” sure to be a hit with the Bay Area crowd.

Farther south in Pasadena, the chain has opened its largest store in the Western United States, a two-story behemoth with a wine lounge and organic garden center. Not so much community involvement in upscale Pasadena, though, which shows they must know their customer demographics pretty well.

I’ve always enjoyed the products Whole Foods offers, but I haven’t seen much innovative merchandising except for the deli/takeout area. The food is attractively displayed behind glass or on the sales floor, with cheese and other samples generously offered. The Oakland store intrigues me with its “Market Hall” design inspired by “several international market halls from around the globe including ones in Berlin, Granville Island, Vancouver, and Portland, Maine.” The Pasadena store’s dining and tasting options will likely make it a retail destination.

Even if you don’t have (or want) a massive selection like Whole Foods, you can learn a lot from their interior layouts. They keep the customer moving, curious to discover what’s just around the next aisle, ready to plop some great new find into the shopping cart. If you can build the same kind of excitement into your retail space, there’s no reason it can’t become a destination in its own right.

Reverse Malling in Minnesota
Written by Jeff Grant, October 11, 2007

Kind of ironic that Bloomington, Minnesota, home of America’s largest shopping mall, is looking at developing a “…destination for people who want to gather, walk and wander, with restaurants, housing, places to shop and perhaps amenities such as doctors’ offices and a park.”

An article on StarTribune.com reveals plans for the Penn American District, which encourages shoppers to use public transit so they can get out and walk. This is the kind of area that’s just ripe for smaller retailers to move in to, whether opening for the first time or expanding.

As the article points out, Penn American will be a “new-urbanist haven,” a blossoming community that uses smart development to grow slowly. The implication is that the young and hip will flock there. But there are plenty of boomers like me who are attracted to a lifestyle that discourages vehicles in what feels like a real neighborhood of old. The kind of place where everyone knows the barber and butcher.

In Bloomington, I suspect many empty-nesters would be happy to skip the humongous Mall of America to go live in Penn American. The small retailers who are there to greet them will be in a great position to secure their own futures.

Opportunities like this are popping up all over the country, as I’ve mentioned in previous blogs. It’s not hard to find them. Watch the real estate and business sections of the newspapers, and check online. If you want to be a retail trendsetter, neighborhoods like this could be your chance to shine.

Some Really Cool Real Estate
Written by Jeff Grant, October 8, 2007

If you’re committed to retail, you’re committed to location. I always urge my clients to think about expanding or relocating to neighborhoods that have exciting potential—not just for your store but for the growth of the community.

For example, if I lived in Daytona Beach, Florida, I’d love to take a look at the 60-year-old Greyhound bus station. It’s for sale, it’s 10,000 square feet of Streamline Moderne style and it’s listed at $950,000.

I don’t know about where you live, but it sounds like a steal compared to the retail rates where I live. The building is about to be listed in the National Register of Historic Places, which probably means tax breaks for the new owners if they keep it maintained.

In South Boston, development is just getting started on Fan Pier, a 21-acre, $3 billion mixed-use development. What a fantastic location for a single- or chain-store retailer. Waterfront properties like this don’t come along very often. Fan Pier has the potential to be like Seaport Village in San Diego and Pier 39 in San Francisco, both very successful if overly touristy. But hey, if you can get in on the ground floor, I say go for it.

Interaction Design Is No Off-the-Wall Concept
Written by Jeff Grant, October 3, 2007

I hadn’t heard the term “interaction design” before. But I think most retailers and store designers strive to practice it.

Another excellent article in India’s Economic Times defines it as “exploring new ways of enhancing the experience of interacting with other individuals, with products and with the environment by blending traditional design techniques, an understanding of human behaviour and modern technology.”

In India, several firms are devoted to nothing but interaction design. They’re using large wall graphics, practically eliminating the cash wrap, getting the sales staff more involved with customers, experimenting with store layout–anything to “create unique experiences that connect with customers on a deeper, emotional level.”

The Interaction Design Institute Ivrea in Italy goes to great lengths to dissect the buying process. They found that in high-end watch stores, customers get tired of trying on timepieces and eventually left. Their interaction design consultant came up with eye-catching wall graphics that educate customers about the concept of time and keep them in the store longer.

Most small retailers don’t have the budget for those kinds of studies. So I say conduct that research yourself, right in the store. Watch for the clues. What items do your customers seem to pass by? What merchandise do they linger around? If you can’t figure it out, ask them. Maybe even set up an online survey at SurveyMonkey.com with a discount coupon as the incentive.

Go for it: Consider murals, educational displays, historical posters–anything that shows customers you want their shopping experience to be richer in your store. And keep reading about retailing in India. They seem to have a lot of retail gurus.

“Retail Follows Roofs”
Written by Jeff Grant, October 1, 2007

I never heard the saying above, but it certainly makes sense. Growing up in suburbia in the late ’60s and through the ’70s, I witnessed a retail cycle this story discusses. I watched as the small old main streets in the San Fernando Valley were killed off by shopping malls. Now, three decades later, many of those main streets are bouncing back thanks to ample free parking and how easy they make it for shoppers to drop in for the few things they need.

There’s a swing back to preserving main streets, and even building new ones. People want to shop near where they live. So many new-home builders are including retail centers in their new developments. Here in San Diego County, the city of Chula Vista has a thriving old downtown that’s constantly being renovated, and new “town center” shopping centers in the housing developments that have sprung up on the city’s outskirts. So whichever side of town you live on, there are plenty of shopping choices.

I mention all of this because I meet so many retailers who are so focused on their product offerings, they fail to choose the best location for their store. I know a small art gallery owner who has a fantastic selection of contemporary oils and watercolors. He got a great deal on a store in the suburbs, but sales have always been sluggish. I suggested he move closer to downtown San Diego, with its thriving nightlife and stores that stay open late to draw in the foot traffic. He would find many more potential customers there. But he’s afraid of high rents downtown and the hassle of moving. So, he struggles to get by in the suburbs, where he lives.

I think every retailer should examine the importance of location before the next lease renewal. Check out your competitors in a neighborhood you’d like to move into. Visit the area at all hours of the day and night.

I’m doing that myself, as a matter of fact. I’m in a location I love, but I know I’ll save a bundle on rent by moving about 10 miles away. And I’ll draw in more potential customers as well. Yes, moving is a hassle. I’m not exactly “following the roofs,” but I tell my retail clients that’s what they should do if they want to stay in the retail game for good.

Saturn Knows How to Shift Gears
Written by Jeff Grant, September 19, 2007

I haven’t designed any auto dealer showrooms. But I certainly would take a lesson from the folks who devised Saturn’s new retail strategy.

Like a lot of other retail marketers, Saturn’s did their homework. Not surprisingly, they learned that 75% of auto buyers do their research online before even getting near an automobile showroom. So Saturn’s new design includes computer stations with free Web access right in the showroom to entice would-be buyers.

Further research showed that their target audience has changed in the past few years. They are mostly female, “…younger, with higher income and education and care more about style and the driving experience than value and pricing issues.” So they’re luring them in with great showroom interiors featuring “modern graphics and furnishings and bold use of the brand’s signature red.”

Wow. I want to stop by and check it out myself for inspiration, even though I’m a few years beyond the Saturn target audience. Combining high tech with high touch sounds like a dynamite strategy, one that almost any retail store could emulate, even on a tight budget.

Read the article, then consider visiting a Saturn showroom yourself. If they can figure out how to drive customers inside, I’ll bet you can, too.

Even the Big Boxes are Going Small
Written by Jeff Grant, September 17, 2007

So you thought you had to worry about Wal-Mart, Target, Home Depot and Lowe’s cutting into your territory? Well, you still do, but for reasons you might not expect.

The big guys and even the medium-size guys are downsizing, shrinking, rescaling—whatever you call it, they’re invading the neighborhoods where smaller retail stores used to dominate.

In a way, you can’t blame the big guys. They’ve done their homework, as this story in the Sacramento Bee (free registration may be required) points out: “Retailers know you’re pressed for time. They’re pressed for profits. Their solution for both: smaller stores carefully stocked with the stuff you’re most likely to buy.”

Think about it. How many times have you stopped at Trader Joe’s instead of Vons because you know you can find what you need in a hurry, without circling the parking lot to find a spot? Or have you gone into the local Ace hardware store instead of traipsing through Home Depot? A lot of consumers do just that because they know that even if they have to pay a little more, they’ll get quality items and decent customer service.

Even if you’re proud of your store’s reputation for great service and targeted merchandise, it pays to be vigilant. The big chains usually have big advertising budgets, so they can let lots of people know about their new, smaller stores.

How do you continue to differentiate? By doing what you do best. Continue to keep the customer service level high, the merchandise mix well-stocked, the convenience factor well-known (consider offering to feed shoppers’ parking meters, for example, or matching any discount store’s prices on select items).

And, as I’ve said before, decide whether you really want to stay in your present location. Moving into a high-traffic area such as Bank Street in Decatur, Alabama, is paying off for the boutique merchants there. Even if the big-box stores set up shop nearby, you can work with your neighboring retailers to set your district apart through advertising, promotions, events such as sidewalk sales, etc.

Don’t be afraid of the big boxes and their smaller offspring. I always say retailers should study their best practices. Now it seems like they’ve been studying the best practices of small retailers all along.

Tales of Two Retailers
Written by Jeff Grant, September 13, 2007

It really helps to know your customers. I saw two articles this week about businesses that stopped to listen and are doing great because they did.

Consumer electronics chain HMV in England has been around for 86 years. But it got a bit stodgy and profits started falling. The CEO even admitted they had lost touch with customers. So they got in tune with the younger generation and now offer all the things these big spenders love: free computer stations, music downloads to memory sticks, giant plasma TVs and even a juice bar. The results on the bottom line aren’t in yet, but HMV has turned itself into a retail destination by listening to its customers.

So has T-shirt store Lemon Rags in Burbank, Calif. The husband-and-wife owners started out as a recording studio selling T-shirts on the side. Turns out the customers were more interested in the rags than recording. So the owners concentrated on stocking pricey T-shirt and spun themselves out of the recording business. Again, they saw what turned their customers on and adjusted accordingly.

Having a passion for retail isn’t always the same has having a passion for what you’re selling. Key in to what your clientele wants and buys. It might not be what you had in mind, but if you listen—or in this case, respond—to buying patterns, you could become a niche destination with sales exceeding your original forecasts for a different product(s). Good luck and good listening!

You Don’t Need to be an Einstein…
Written by Jeff Grant, September 11, 2007

…to figure out that customer loyalty has made this bagel-restaurant chain a growing giant. Even though the parent company of Einstein Bros. and other bagel cafes has had its financial problems, the quality of its food keeps customers coming back.

I remember when Einstein bought out the Baltimore Bagel chain in San Diego. As a Baltimore customer, I was worried that the menu choices and food taste would diminish. I was pleasantly surprised when both improved. The breakfast and lunch menus continue to improve, and I look forward to the yummy baked goods Einstein’s now offers. It seems like the menu gets revamped every six months or so–I also look forward to trying out the new items.

All the Einstein cafes I’ve been to have the same basic layout. It seems to work, but I would change it a bit. The first thing customers see is the checkout area. They’re then forced to walk off to one side, where the large menu faces the order line. Even before they order, they’re confronted with a refrigerator case that holds all the cold drinks they’re supposed to bring to the cashier. Then they wait in line to order.

I would move the refrigerator case closer to the cashier, or maybe eliminate it in favor or an ice tray for the drinks. Then customers like me wouldn’t feel so rushed to decide on beverage as others who don’t want a drink get ahead of me in line.

That’s a minor complaint. The stores have colorful, whimsical graphics throughout. It’s a pleasant dining experience with delicious food and moderate prices. This winning combination is fueling a period of unprecedented growth for the parent chain.

You should stop in sometime. While you’re noshing, check out how the place blends merchandising, production selection, design and graphics. Then think about how you can apply those principles to your retail location. You don’t have to be a genius to see how Einstein’s theories can work for you.