It's the end of March, it's raining again in the Northeast, and if it doesn't stop soon we'll all be living in arks. But it's also spring, and between deluges we've been teased by some sparkling weather. And the Red Sox open up this weekend! What's not to like.
Spring is that proverbial time of renewal, and it's also the season of renewal for independent retailers. Business has stabilized, average transactions and margins are strarting to rebound, even if traffic remains a challenge. It's not going to happen quickly, but things are beginning to turn.
It's also a time for independent retailers to survey the landscape, identify opportunities, and plant the seeds that will lead to renewed growth. Much of what is being written in the retail press these days returns to familiar themes; that the consumer has been profoundly changed by the trauma of the Great Recession, that value propositions have to be rebuilt on other things than simply price, that developing a closer relationship with your customers is imperative, and that memorable customer experiences will set the very best independent retailers apart from all the rest.
The days are getting longer and warmer, the sun is getting higher and brighter. Breathe deep!
"A new survey of 2,000 U.S. consumers... confirms that a "new frugality," born of the Great Recession and evidenced by two consecutive years of declining per capita consumption, is now becoming entrenched among U.S. consumers and is reshaping their consumption patterns in ways that will persist even as the economy starts to recover. A new frugality, characterized by a strong value consciousness that dictates trade-offs in price, brand, and convenience, has become the dominant mind-set among consumers." From Strategy + Business...
"With new shopping behavior data and demographic trends indicating that an enduring shift has taken place as a result of the recent economic downturn, retailers and suppliers will need to adapt to consumers' new shopping behaviors to succeed in today's evolved marketplace and during the post-recession recovery. Shoppers will be more deliberate and purposeful in their spending, as conspicuous consumption will give way to more conscious or practical consumerism." From Retail Customer Experience...
"Maybe the problem rests in the all-or-nothing approach some people take toward the consumer. In other words, there tends to be this thought that the consumer is either dead or spending wildly. You're looking at a world where demographically, financially, in terms of employment, we're not going to see what we saw during the nineties. We're going to see something that's pretty gradual. That doesn't mean that it's dead...This is ok, it just isn't spectacular." From CNBC...
"One key to maintaining sales, margins, and market share without resorting to discounting is to focus on clienteling. When done right, it is very specific, special occasions, special offers, events, and other things to get them into the store. It's all about making them feel special." From Retail Customer Experience...
"It has long been known that "happy" shoppers buy - but what they buy was less well-known. Heightened competition in the retail sector has spurred numerous studies in consumer psychology as stores try to figure that out. Business professors at the University of Minnesota and Arizona State University asked participants to select which consumer products they would buy after reading short stories designed to induce pride or contentment. Those who read the pride story picked "display" products such as a watch, laptop, computer or shoes, while the contented group picked home products such as a bed, vacuum cleaner or dishwasher." From The Toronto Star.com...
"If Garrett Boone could, he would ban retail workers from asking, "How are you doing today?" and "Can I help you find anything?" The 66-year-old co-founder of the Container Store says rote, mindless greetings draw rote, mindless and dismissive responses from customers - even when they need guidance. To prove his theory, Boone went on a shopping spree." From The Dallas Morning News...