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| Write your own retail obituary |
   
Posted Date: 08/02/2012
By Brian Walker
Last year, the Australian Securities and Investments Commission reported 864 retail companies in its insolvency statistics*.
Of those, over 80 per cent were SMEs.
There are many reasons why we are seeing so many retail obituaries but it made me think about an exercise I sometimes ask retailers to complete.
Firstly, it’s important to note that successful ‘fit’ retail businesses don’t die. They do, however, start their business at the end point and work back, which is like reading a book from the back page first and working back to the beginning.
Rather than ending in an obituary, we would say that every business is for sale and the objective of business is to understand at the start, the value of the business at the end. From this point every moment of every day is spent driving the business to that goal.
Now back to that exercise I have for you. If I asked you to create your own ‘retail obituary’, what would you write about your retail business? How would you like to be remembered and what did your business achieve? Why was your retail business so outstanding and different? Confronting, isn’t it?
More often than not, the simple act of writing your business’ own retail obituary can serve as a real wake-up call as you realise you may not be known for what you truly set out to be known for.
All too often nowadays, we read a real retail obituary and one of the most important elements I discuss with my clients when we talk about retail fitness to avoid ‘premature retail death’ is to start with the vision and differentiation.
Always have a vision
If you want to be remembered for something, it is imperative you start with communicating why you are doing what you do.
Your big vision is the setting of your destination. Without it, you are on a continuous journey.
Have a think about how you want to disrupt the world and the changes that your business will make to people’s lives. Start by selling your dream before you start selling your product. Then, set the compass and point your entire business and team in the right direction in both vision and concrete detail.
What is your unique selling proposition (USP)?
‘Fit’ retailers who survive are those who can easily and quickly answer this question and identify their unique selling proposition. They are also aware of marketplace opportunities and trends, competitor activities, economic opportunities, customer feedback, innovation in retail practice and are often highly intuitive and experienced.
No surprises that this is an evolving aspect as marketplace dynamics change and ‘fit’ retailers always move one step ahead of the market towards their end goal. They are indeed challenger retail brands.
However, the fittest retailers of all identify a gap and fill it with a reason/offer based on true consumer insights to solve consumers’ problems. Better still, they open up a new market with no challenger brand in sight.
Many retailers cite ‘customer service’ as a quality differentiator when asked about their USP. However, it’s important to understand that “what the customer gets” and “how the customer gets it” should not be grouped together in the ‘differentiation thinking’.
Indeed, understanding and delivering ongoing innovative and profitable uniqueness in your retail offer is a key driver in maximizing the value of your business.
Truly ‘fit’ retailers will never be reading their business’ obituary. Instead, they’ll be guiding their team to their vision and goal for a successful, sustainable future.
Happy ‘Fit’ Retailing
Brian Walker
Retail Doctor Group
*Table 3.2.3.1 – Australian Investment & Securities Commission: Initial external administrators' reports for Retail trade industry—Size of company as measured by number of FTEs by region (1 July 2010–30 June 2011) |
Monday, February 13, 2012 by Brian Walker
Thank you Virginia, that's very kind of you to say so and I'm so glad to hear you have gained value from your work with us and these articles! I trust your business has continued to grow successfully and that the Fit for Business Program has added value to you. Happy Fit Retailing
Monday, February 13, 2012 by Louise Davis
Hello Brad,
While I can't speak for all retail advisors, I can assure you that Brian has had a great deal of experience and success running retail businesses prior to starting Retail Doctor Group. This coal face retail background is something we really pride ourselves on here and what gives us the skills and expertise to do more than just advise, but to go that step further and actually implement solutions that really add value.
While there may be money to be made running a retail business, what greater satisfaction can there be than to assist many businesses in achieving success especially in a challenging and ever changing environment such as we have been seeing of late.
I welcome you to read Brian's bio on our website http://www.retaildoctor.com.au/retail-doctor-team/ourteam/1.html and Brian has offered for you to contact him personally should you wish to discuss the topic further.
Regards,
Louise Davis
Retail Doctor Group
Sunday, February 12, 2012 by vIRGINIA TRAVAGLINI
Brad you raise a good point and I do agree with you to a degree. However it is a bit of a generalisation . A few years ago I was lucky enough to win a competion and the prize was an evaluation of the business by the "Retail Doctor ". It was quite indepth and came with some great advice and procedures that I still use in my business today. I read every article I can find that he has written because I find Brian makes you step outside your business and take a look in (and you can suscribe to his newsletter without ever giving him a cent if you don't want to !) He does speak from retail experience and at the end of the day he too is running his own business! Personally i find most of his advice relevant and helpful in todays challenging environment !
Thursday, February 09, 2012 by Brad Coates
I find it interesting that there are so many people earning their living from being "Advisors". It is also interesting to note that they merely advise, rather than run their own retail businesses that they would claim to know how to do so well. If they all have such expertise, SURELY they would totally "clean up" in a retail environment? Could it be that, like "Motivational Speakers", there is really only money to be earned talking about it rather than doing what they claim works? Just a thought.......;-)
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