Category: Strategic Opportunities

Might Stores Need a Shorter "Work Week?"

2/28/2023

It's that time of year. As you review your Profit & Loss statement for 2022, your thoughts most likely are turning to "How do we make 2023 a better year than that?"

As we look around, we see a popular cost-saving and productivity-boosting tactic being instituted by many national retailers, shopping malls, and restaurants. They are open fewer hours.

This offers an opportunity for you to revisit your store hours and employee scheduling practices. Maybe it's time to consider some changes, if you haven't already.

Start with the mass of data resting comfortably in your POS system. Look for all the reports by the day of the week. (Be prepared; this may require you to gather information from several reports.)

What you are looking for is data such as this:

Total sales by day of week
Total # of transactions (e.g., customers) by day of week
Total gross margin dollars by day of week
Hours per day of week the store was open
Total employee hours and payroll per day of week

Just a few more days until...the 26th!

12/19/2022

The savvy retailers know that now is the time to be putting the finishing touches on – wait for it – being ready for December 26!

Yes, this unique time period between December 26 and New Year's Day is a tremendous make-or-break opportunity. Indeed, many retailers find they net more from this time than any earlier stretch of 6-10 days!

Why? Three main reasons.
First, the many opportunities to reduce expenses "back to normal". Less advertising cost. Less staff. Fewer hours.

Increase the "Productivity" of Your Customers

11/28/2022

For most retailers, especially this year, reducing inventory is priority #1. With talk of a 2023 recession still in the air, lingering inflation driving up costs, and rising interest rates, cash is definitely king this year.

Time to revisit your year-end strategies for meeting your targeted ending inventory on December 31. If you are like many retailers this year, with plenty of merchandise in your stores, you know the challenge: how best to turn that inventory into cash? Quickly! Especially without looking like a distressed merchant.

One answer? Focus on improving the productivity of each shopper who comes to your store. That is, increase the IPTs (Items Per Transaction.)

Make it easier, more compelling and more fun for them to buy more items from you.

Important: Look Behind top Line Sales Numbers

11/7/2022

Consider this retailer, whose sales over the last 4 weeks are down 12% compared to last year.

Some retailers in this situation essentially freak out.

But others know to keep asking questions. Before they decide what to do next to fix lagging sales, they want to know "Why?"

So, here is one way to get to the numbers behind the numbers; to begin to know the "why" of your sales trends.

All it takes is tapping into the data that's already in your POS system, and putting together a little summary tally sheet. Here's one example.

Good Help Hard to Find? Take the Hint!

10/24/2022

As the Holiday Season approaches, finding good help promises to be especially challenging for retailers this year.

Then, we read "10 Things to Know to Get And Keep Retail Jobs," a to-the-point commentary from Bob Phibbs*, who specializes in retail sales training.

Here are his Top Ten recommendations for prospective retail employees:

"Performance is Key"
"Treat Customers with Respect"
"Go the Extra Yard"
"Be on Time"
"Don't Gripe About the Hours"
"Be Flexible"
"Don't Be a Drag"
"Be a Team Player"
"Respect the Rules"
"A Cut in Hours is a Sign"

What a Great Time to Be a Merchant

10/17/2022

You've seen all the headlines. Worldwide inflation. Dire warnings of a coming recession. Big time discounts at retailers due to boatloads of inventory. Amazon doubling down on their Prime Day(s) sales. Shoppers shopping early in anticipation of rising prices.

Shaping up to be yet another "unprecedented" Holiday season for retailers, isn't it?

And a wonderful opportunity for all merchants!

How best to start? Set the boundaries.

First, specify how much inventory, in total, you want as of December 31.
How much by department?
Category?

Next, establish clear routines for monitoring inventory levels.

Time for the Shoppers to Bounce Back

10/10/2022

Retailers are notable for their optimism and their resilience.

And the last couple of years have provided ample opportunities to showcase their ability to bounce back.

But now, it's 2022. Time for those customers to pick up the slack. And here's an idea for helping them get started. Without costing a penny in advertising!

Print up some "bag stuffers" (you know, conspicuous notes) inviting them to come back in November.

As you add it to their bag following their purchase this month, point out that when they "bounce back" to your store in November,they will save 20% off one item.

Finding Inspiration – On the Kids' Menu??

9/26/2022

We recently learned of a restaurant with a kids menu which is quite unusual.

Of course, having a kids menu is not unique. But here's what IS unusual about this one.

When kids are asked "What would you like to eat?", often their answers can range from "I don't know" to "I don't care."

But at this restaurant, here is what each all-too-familiar answer brings to the table:

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Tips, Tactics & Insights from Retail Strategists