July 4th is upon us, and for many independent retailers a very uneven spring selling season is coming to an end, and clearance season begins. As carefully as many have managed their inventories, there's still merchandise to be cleared out, even if there's not as much as in previous years.
Many have completed their fall plans, but those plans are decidely different from plans they might have put together several years ago. Rather than having committed most of their open-to-buy, as they once did, many independent retailers have worked hard to commit as little as possible. They'll commit to inventory only when they actually need it.
This caution is borne of hard experience. For most, customer counts continue to lag (even if units, sales dollars and margin dollars per transaction have recovered).We need more customers!
For this month's Retail Reader, I've tried to focus on articles relating specifically to rebuilding sales. From reconnecing with dormant customers to reconnecting with your animating passion; from building a community of interest to building a growth-driven culture; from recognizing where the money is to recognizing there's got to be money for you, there are good, thought provoking ideas in each article.
Happy 4th! It's officially summer. The grills are fired up and the traffic to the Cape is building. As for me, I know all the best clam shacks between here and there. Breathe deep (and pass the tartar sauce)!
"Customers go quiet... they just do. They may no longer buy a product or service, or they may have stopped interacting with the brand altogether. But a business shouldn't give up customers without a fight. Whether your customers have gone to the competition or just gone silent, they are worth your time and effort to woo them again. Here are five practical, easy to implement tips to engage dormant customers and expand your base of paying, active patrons." From Small Business Trends.com...
"Most people think about their jobs as the thing they do, instead of the thing they get to do. When you can build a culture where people feel privileged instead of entitled, that's magic. And that's what the best Silicon Valley companies do: They tap into the power of personal passion." From Forbes.com...
"Curves succeeds in achieving strong, passionate customer advocates because they treat their members with respect. As the largest fitness franchise in the world (10,000 locations globally), they respect their individuals' goals, triumphs and set-backs (summer holiday weekends notwithstanding!). They succeed because they have created a community that is bigger than their brand."
From Retail Customer Experience...
"The headline noted that according to the latest available data, from 2008, the average revenues of majority women-owned businesses were only 27% of the average of majority men-owned businesses. There's no disputing that many women possess the attributes required to build a thriving company. So what's behind the disparity? This question brings to mind an observation that Build-A-Bear Workshop founder Maxine Clark once shared with me: "Not dreaming big enough is one of the biggest mistakes entrepreneurs make." From Forbes.com...
"In a reversal, retailers are now reducing the amount of choice on their shelves. After years of tempting customers with ever expanding arrays of brands, hues, sizes and flavours, they're racing to simplify their offerings. The recession has encouraged them to focus on top sellers and private labels while throwing marginal products overboard." From CFO.com...
"Venture capitalists call it "sweat equity"--the idea that business owners shouldn't pay themselves a salary while they're building a business. I call it working for nothing and being a fool. Of the more than 6,000 small businesses
my company has worked with, I can't think of a single one that failed because the owner paid himself or herself a decent salary. The inability to pay yourself is symptomatic of a much deeper financial problem; it's should serve as a red flag that your business is not working." From Entrepreneur.com..