Archive Page 9
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.
