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.
