Ask, as we often do, the members of your retail team, from CEO to part-time staff member the following simple questions.

"Starting with the end in mind" and "the independent investor" are two of the topics that I spoke about at last week's retail expo and these topics are typically the first two key steps in our "7 steps of business fitness" presentation. 

Regular readers of the Doctor’s Diagnosis will know that I believe our response to tighter economic conditions is every bit as important as the marketplace conditions we currently operate in.

Another lifetime ago, I remember sitting in the front row of a management conference, when the then head of Wembly Stadium, in the UK said to the assembled audience "A poor execution of a well planned strategy won’t keep you in the game”.

Did you know that about 28% of all traffic to major (regional) shopping centres in Australia is on a weekend?

During the year we asked retailers to nominate their top five causes of a retail business becoming unfit and ultimately failing.

Last Thursday, Apple opened its Flagship store in Sydney.

Have you ever noticed how a change in climate even starts to influence the retail language that we use?

There are many different factors affecting today’s retail environment such as the external circumstances of interest rates and petrol prices leading to the current “softening “ of the economic cycle.

Ok, let’s get down to it. You would think that in tougher economies the art and skill of winning and engaging customer loyalty was absolutely delivered at every “moment of truth” by every retailer.

Have you ever heard those sayings 'tougher times call for tougher measures' or 'when the times get tough,...'?

Have you ever been to a retail shop where you needed to wrestle your way through the fixtures all “front and centre” at the entrance only then to be bombarded with too many messages?

This weekend I visited a country town to speak at a retail association event. On the Sunday I visited a country market and in the most simplest of settings, I was reminded that the golden rules of retailing apply even in the most relaxed country market setting.

Isn’t it amazing how everything moves in cycles and how we manage these cycles speaks to our capacity, not just as retailers but as business people?

We’ve all read the media and seen the increase in the cost of money, tightening of credit, over-extended debt levels and the effects of the US sub prime crisis.

The secret to a focused, motivated and goal focused retailer is generally not found in the shop??!!

In this last week I have walked through malls in both our Eastern and Western states and have witnessed, as we all do, vast differences in the standard of the retail offer that confronts the many millions of retail customers nationally and I thought it worthwhile to make a few comments to the key retail design principles that really impact on the customers mind and in turn lead to higher sales and profits for the retailer.

Recently we have been receiving correspondence from retailers telling us about increasing competitors in both malls and strips advancing to compete in their product range by either opening new shops or by increasing into the competitors product range within their shops.

And what better time to make some comments about the retail planning process than the New Year.

Only 12 days of trading to go with our clients reporting that sales are well above on the same time last year.

For many of us the upcoming Christmas period can represent as much as 30% of our yearly sales. Getting it right is often the difference between a good trading period and a great sales period, so to help you we will produce some Xmas “fitness tips” over the next few days that can help build those additional sales.

Are you as fascinated as I am with the quality and thought that goes into so may store designs?

Last week, I worked with a retailer, whose management of inventory didn’t put them into the top 10 of effective merchandise managers. For one thing their Point of Sale system was not linked to their merchandise management system.

Have you heard the one about the unhappy customer who actually told you that they had just received a poor customer service experience and typically told you at a barbeque or social event where there where plenty of people listening?

Have you ever stood at a retail sales counter and actually had to move the clutter away in order to pass your credit card or cash to the salesperson? This is the counter encounter that we see increasingly in retail today.

Of critical importance to our retailers is the ability to manage their typically single largest investment in inventory.

Ever wonder why we lose staff at a greater rate than we can hire them? Here are some of the Retail Doctor’s remedies for ensuring that your recruitment practices are one step to being “Fit for Business™ “

Do you focus on delivering retail “magic” within your business on a consistent and daily basis? That is a magical quality to everything you do and of most importance in providing your customer with a “magic” experience.

Yesterday I walked through one of our most popular super regional shopping centres.

I read with interest the innovators edition of Business Review Monthly and note two telling facts:

A recently conducted global retail service study noted that fashion retailers are losing out on billions of dollars a year because sales staff are only engaging with 7% of customers who enter the store.

How do I really understand how much my retail business is worth and where do I start?

I always read your commentary and answers with great interest. Our issue is that we are constantly training up our staff and then they leave us? What is the reason and how do we keep our valuable staff??

Dear Retail Doctor,


I received a pair of jeans as a gift from my son, however they did not fit. I went to return the jeans for either a cash refund or a store credit - I did not care which one. We have the receipt for the jeans, however they show a return by date on the receipt. The store would not return them at all. I told them I would be happy with just a store credit, but they said store policy was not to accept any returns after the date on the receipt. They also stated that this was a new policy introduced by the store at the end of last year. Do I have any return rights? Sue.

Dear Retail Doctor,


Firstly we really learn a lot from this column and appreciate your knowledge being shared in this way. We were wondering if you could help with the following?

We are looking to sell our retail business and the offers to buy our three-store chain are consistently below our asking price. We have placed the business with capable business brokers, yet can’t realise the asking price. What is your prescription for raising the value of a retail business and therefore achieving my selling price?


Undersold retailer

Dear Brian,


I bought new glasses the other day (although I only paid for the 2nd stage thinning process on my lenses as I am on benefits and entitled to NHS vouchers) but I never really inspected the glasses thoroughly at the time, I just tried them on for fit and wore them home, it wasn't until I arrived home that I examined them more thoroughly and compared them to my previous pair (there was a very tiny increase in my prescription) and noticed the lenses were a lot thicker, and I felt very disappointed, considering the previous glasses I had had only the 1st stage of thinning carried out! I am embarrassed to wear them, now. Can I go back to the store and expect any help?


Thanks.

Pamela

Dear Retail Doctor


Are there any laws that govern whether a retail outlet can elect to do a "store credit only" "no cash refunds" policy? Do you have to accept returned items, or can an outlet set their own rules?

Rita

Hi my teacher referred me to your site to help with my retail marketing assignment. We have to design a store policy for the layout and presentation of our chosen store (BILLABONG) to give to new staff members. I was wondering if you are able to email me any examples of what to include into a store policy? I have been advised by my teacher to include the following:

- stock displays

- colour groups (co-ordinating, colour blocking)

- range of groups (sun glasses, shoes, jewellery, dump bins)

- type of fixture and fittings to display range groups on

- direction of coat hangers

- placement/folding/packaging of customers purchases

- changing front windows

- stock unpacking stock storage

- cleaning

- distance between displays/racks

Do you know of any other requirements that I haven’t covered & any examples of the above guide lines I am already including in my store policy to refer to?



Kind regards,

Danica : )

Dear Retail Doctor.


Why is it that many retailers that I speak with seem so focused on survival, lack a solid strategic business plan and only look at the horizon of today’s results?


Bemused.

Dear Retail Doctor

How do I master my inventory buying? I just seem to be “eating” into my profits with stock that I continually mark down.

Frazzled retailer