Revitalizing Retail: Strategies for a Successful New Year

8 NOV-DEC 18

If this year is turning out as planned congratulations on a job well done. If the year is not hitting your expectations here are a few things that you might consider focusing on in the new year beginning now:

Stay fresh.

Nothing in retail improves profitable sales faster than a constant flow of fresh new inventory delivered on a regular basis. There is a definite correlation between sales increase and new inventory. With many customers shopping your stores regularly the last thought they should have is that they saw the same merchandise on their previous visit to your store.

Out with the old in with the new.

If the data supports making line changes now is the time to rid your inventory of under-performing vendors. Purging slow-selling stock at year end has multiple benefits; the “hard markdown” often referred to as a permanent or back-of-office markdown reduces inventory levels in turn opening up additional Open-to-Buy (OTB) dollars for new product. Applied consistently over time this strategy increases annual stock turn too. Another benefit is that there won’t be as much old product to count at inventory time for stores that take physical inventory on a calendar schedule.

Test new products.

Commit to testing new vendors next year. Most retailers have a mainstay of vendors that customers can count on finding at their stores. It is a good practice to reserve a percentage of OTB dollars for testing new lines in order to keep customers interested. Always be on the lookout for the next hot trend or item (think Crocs Uggs Birkenstock water bottles novelty socks etc.). Remember most big-volume vendors in your store most likely started out as limited test orders.

Set up your promotional calendar.

Review and fine-tune with your staff or marketing department what the promotional plans are for year-end as well as Quarter 1 of next year. This would include not only social media but also

Advertising Buys

If applicable confirm trunk show schedules with vendors as well as other events that are not price-driven. These events can be either in-store or sometimes at a remote location where the store has an occasional presence (for example races bike rides hikes fairs).

Vendor Returns

Start the new year off fresh by making sure that all return authorizations for merchandise being sent back are out of the warehouse or back room by year-end. This includes damaged goods merchandise being swapped out or excess inventory being returned per vendor agreement.

Promote Services

Do you offer added-value options that your customers might not get online? If so be sure to communicate it. How about:
– Free gift wrapping
– Free delivery
– Stride analysis or foot scans

Give some thought to complimentary shoe shines if your physical setup allows for something like that. Not many stores provide it—and most customers won’t take you up on it too often anyway but it’s something customers will talk about. How about free laces? They don’t cost much but do give customers a reason for another visit.

Gift Cards

Promote them aggressively starting now! A gift card in hand from your store is one less online sale.

Personnel

You may not want to make any people changes now but prepare now for the new year. Way too many stores allow poorly performing associates to stick around. This may include more than just salespeople. Sometimes other folks in key positions are allowed to stay as well which does great harm to not only morale but also company profits. Does your son or daughter niece or nephew really want to work in that position? Do you really want that relative there? If not you may be simply buying them a job—helps no one in the long run. The question needs to be asked. Sometimes everyone is better off if a change is made.

Operating Expenses

Though normally reviewed after the year is com-

Quick Scan of the Profit & Loss Statement

A quick scan of the profit & loss (P&L) statement will reveal where you are over or under your budgeted goals. Are your occupancy costs in line? How about payroll costs? Do they match up well to industry benchmarking numbers? Don’t forget those marketing costs. I see many stores today dropping big dollars into internet/online marketing that they are not getting a reasonable return on (and most likely never will).

Prepare For Next Year – Starting Now!

Ritchie Sayner
continued on page 18
Published in the November/December 2018 issue of Shoe Retailing Today Copyright © 2018 National Shoe Retailers Association Tucson AZ www.nsra.org. All rights reserved.

Goal-setting

Consider setting small achievable goals – but set them every day. Remember the old Q-and-A “How do you eat an elephant? One bite at a time.” Your goals need not be monumental to make an impact. Retail is detail – and the sum of all the little things you do daily will make a substantial impact on your organization.

Here’s one example of what I mean.

Round up your initial markup to the next dollar.

Don’t simply believe me prove it to yourself.

Determine how many transactions you have annually by dividing your annual volume by the number of daily transactions.

Now add $.50 or my keyword.00 to each one all year long and see what you get.

Those dollars will drop right to the bottom line. If you put just this one tip into practice now I guarantee you it will more than cover the cost of your next vacation.

Use our vibrant economy to your advantage next year. People are spending money and it’s not all online. Prepare now to make next year your best ever!

I wish all of you the happiest of holidays and a healthy and prosperous New Year!

Ritchie Sayner of Advanced Retail Strategies LLC is author of Retail Revelations: Strategies for Improving Sales Margins and Turnover available from Amazon. He can be reached at www.

advancedretailstrategies.com

From tutus and tights to lunchboxes and Melissa & Doug toys occupy 15% of the retail space. The carpet – black with brightly colored flecks and clusters of blue crayon-like lines – both contrasts with and plays off the lively product displays. Out front a black-and-white checkered motif tops the façade.

Athletic Footwear

Athletic footwear accounts for the biggest chunk of sales but there’s a full footwear array: sandals boots dress and casual leather shoes and dance shoes.

“We get a ton of grandparents who are hungry for the experience they had as children” says Eber Mendoza who’s worked for Brooks for most of the past 30 years and co-manages his remaining store with fellow longtime employee Sonia Palma (there are also two part-time workers). “Kids are a little more knowledgeable themselves about the styles out there.” Whatever their age Mendoza adds customers appreciate the staff’s deep brand knowledge and understanding.

“Mr. Brooks” stays on top of trends Mendoza notes yet retains his old-school charm. That’s helped him succeed as has his zest for work and life. “He’s hands-on; he likes to be involved” says the employee admiringly adding “We love seeing him go on the floor when we are busy… He could just cut back and relax and enjoy the moment but he still goes out there and involves himself whether it’s a sale or a recommendation.”

And as long as he’s enjoying the work retirement could be on a very distant horizon.

Next Year

continued from page 8

Brooks Shoes

continued from page 17

Retail Strategies for a Successful New Year

The article provides strategies for retailers to enhance their performance in the coming year emphasizing the importance of maintaining fresh inventory testing new products and setting up effective promotional calendars. It also highlights the need to manage vendor relationships promote gift cards and review personnel and operating expenses for improved profitability. The author encourages setting small daily goals to drive substantial impact over time.

“Retail is detail – and the sum of all the little things you do daily will make a substantial impact on your organization.”

Real-World Examples of Retail Strategies

The following examples illustrate how various retailers have successfully implemented strategies to improve sales and customer experience as discussed in the article.

• 
  A local boutique regularly updates its inventory by introducing new fashion lines every month. This strategy keeps customers returning frequently eager to see the latest arrivals which has led to a noticeable increase in sales.
  
• 
  A national electronics retailer conducts seasonal inventory reviews to identify underperforming products. They then replace these with trending tech gadgets ensuring their stock remains relevant and appealing to tech-savvy consumers.
  
• 
  A regional grocery chain tests new organic and local food vendors by allocating a portion of their shelf space to these products. This not only attracts health-conscious customers but also helps the chain stay ahead of food trends.
  

Discover Proven Retail Strategies!

Explore expert insights and actionable advice in
Ritchie Sayner’s renowned book:
Retail Revelations – Strategies for Improving Sales Margins and Turnover 2nd Edition.

This must-read guide is perfect for retail professionals looking to
optimize their operations and boost profitability.

Amazon Rating:

★★★★☆

4.6/5

Purchase on Amazon