Chart your promotions and marketing to see how profitable they are

The latest CBI survey shows retail sales growing for the 6th month in a row, but figures weren't as bullish as perhaps expected.

38% of respondents said sales were higher than a year ago

22% of respondents said sales were lower than a year ago

This equates to a balance of 16% - well below the anticipated figure of a 43% balance.  Retailers said they expect business to improve next month with the World Cup and (hopefully) Summer weather.  The CBI said that despite the slowdown, the fact that growth again, for the 6th consecutive month, was encouraging.

What did you experience last month?

What factors influenced this?

My main learning from this is to closely monitor your promotions and see how these impact your sales and profitability.  A simple spreadsheet will do the trick, where you can plot sales and profits against certain promotions with reference to certain times of the year, proximity to payday weekend, weather conditions.  I would say a day-by-day spreadsheet with a space at the end to note external factors will give you all the reference data you need to be able to lamb your future promotions, sales and other marketing activity.  Don't think that your competitors won't have all this information to hand to help their business - it's the norm, even for small stores.

Ensure you act and react like a professional business - the technology is there to assist you in making these decisions and your operation will run better for having the correct information at your fingertips.

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How do you measure your success in the immediacy?

Measuring success

With so many external factors at play in the retail market, how do you measure your success?  Simple sales targets don't always tell the whole story. Staffing shortages, roadworks, parking problems, competitors opening or closing nearby and other factors can have a major influence on your sales but aren't necessarily under your influence.

Inputs as well as outcomes

Your input with your team as a leader is just as important (possibly moreso) than the outcomes. There are many situations I have come across where a store has improved year-on-year and against target, but with little input from the store manager. A good manager will constantly look at ways of improving the store and their team, day by day.

What other measures?

I have been part of focus groups in the past where we have looked at other measures and KPI's to establish a measure of success.  Some include-

• Number of team members progressing to the management programme as a measure of developing your team
• Average basket size as a measure if getting the most out of the customers you already have
• Sales per man hour as a measure of productivity
• How many customers you sign up for your store card as a measure of driving loyalty

A suite of measures

As a rounded retailer, you will have a series of well-thought-out measures to ensure that you are measuring a well-rounded leader. Each measure will inspire your team(s) to achieve the shared goals of your company, and they will be more motivational than a "sales at all costs" target.

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Is it time for a major retailer to champion the High Street?

He question us rhetorical, but needs to be asked anyway.

In the light of Marks & Spencer's disappointing results today, does someone need to take a stand?

Is there a retailer out there that will say - "Actually we want to do our offline business solely on the High Steet."

Traditionally I would say that Wilkinsons, jewellers, the banks and bookmakers are High Street stalwarts.  Will one of these emerge from the pack and put their wholehearted support behind our town centre High Streets?

Let's have a positive mood to lead the market forward in saying we will protect our traditional High Streets and begin lobbying the government to do more to protect it.

How to increase town centre High Street footfall

Figures released today have shown that retail footfall dropped by 0.1% in April.

However footfall in out of town locations rose by 4% - the 4th month in a row that there had been an increase.

This is more evidence that the government 's town centre first policy is not working.

So what next.  I've looked at certain points in prior blogs relating to how this can be tackled.  Changes to the business rates in vacant shops and incentives from government to help local councils provide free parking are two ways that I think will have a massive impact.

The march of Click & Collect should also see some improvements in town centre footfall and sales figures.

What about YOU as a retailer - what are you doing to keep your High Street vibrant?

Do you have a town centre retail committee?

If so, are you on it?

Are you organising events and incentives to promote your town?

Do you cross-refer to other local retailers?

I think a prime example of the last point is  linked to weddings. A florist should always have a link to a bridal gown shop, a limo hire company, a local wedding cake company - and vice versa.

Local communities of like-minded retailers are stronger together.  Hosting town centre events for Easter, Christmas, Mothers Day, etc will make the whole town sing, encourage people to visit many stores and increase both footfall and sales.

Do this in addition to the moves I have previously outlined and there's a profit to be made!

Poundland's Steve Smith revisits his roots

I worked for Poundland in the days of Steve Smith and his enthusiasm was inspirational.  He had a passion for his business and was always looking for new ways to push things forward.  Without him at the helm, how has Poundland remained so successful for so long?

http://m.bbc.co.uk/news/business-27371167

It is far more than just price.  Low prices without structure, innovation and an innate sense of what your customer wants just wouldn't have worked for that long.

Poundland have had to move with the times and realise that what they were selling for £1 over 20 years ago will have been eroded by inflation and may have gone out of fashion.  In my days there we sold loads if "large plastics" which consisted of washing baskets, buckets an mops but so many if then broke in transit that their export was stopped.

They have done deals with major suppliers to make their products at a size to match the price point rather than the price fitting the product.  This level of innovation has helped the company stay ahead of the competition and has forced suppliers to recognise Poundland as a serious player in the retail world.

I'm sure that there's another 20 years plus in Poundland and that whatever Steve Smith turns his hand to will be driven forward by his energy.

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Councils 'ignoring town centre policy'

The Association of Convenience Stores have said that since the "town centre first" policy was launched, 76% of approved floor space was out if town.  The policy was Government guidance to help keep our Hugh Streets vibrant and to consider the impact of planning decisions on town centres.  The Association claims that local councils are ignoring planning guidance.

The Government needs to go further than this if they want to maintain the vibrancy of town centre High Streets.

They should give cash to councils that make their High Street parking areas free for people that spend on the High Street. The cuts that central Government has made to local councils has forced them to charge for every service and try to make their own money in every way they can.  This affects people's choice of whether they go to the High Street, pay to park and always have an eye in the clock, concerned about a parking ticket. The contrast is out of town, free parking, plenty of time and often more choice.

To compete, High Street have to start with the parking issue.  If you provide free parking for those who spend a certain amount in the town, maybe get your parking attendants to be a little more human and sort out the staff parking situations then it will go a long way to redressing the amount of floor space approved in town centres, as shoppers and retailers will want to return.

How to educate your customers

I often wonder how run of the mill, High Street retailers can educate their customers in their ways.  By this I mean how to interact with the company and what "buy in" the company needs from their customers to make a successful relationship/partnership.

Some newer entrants to the market are able to have this relationship/partnership and have complete customer but in, as the retailer and customer have grown together.  For me, a prime example is Ikea.  You select your own products, you get them home yourself, you clear your own tables in the cafe - in return they keep the prices to a minimum.

Another such example is Build A Bear - you pay a bit more for the bear, but you have the experience of choosing the design if your bear and being a large part of the production of the best.  It's not just a purchase - it's an experience.

How do you relate the things you need your customers to know?

In the examples above, Ikea has store notices and both retailers have a great "word of mouth" network of avid fans.  Social media has increased this many times over.

Social media is one way to to this, but you need to educate some valued, regular customers in the first place for word to spread.  So, the best way to initiate this is to get your team to have great conversations with your customers.  The effects of this may not happen overnight, but consistently great interactions with your customers will consistently lead to these values customers being your best advocates.

One message I'd like to see all retailers get over to their customers is that their mistreatment of stock, fixtures and fittings will always come back to them as higher prices.  A packaging that a customer splits and renders unsaleable will mean an extra cost to them and all other customers in future years.

Can the Government be radical on landlords with vacant shops?

It seems such a shame when there are rows of empty shops in certain Town Centres.  In my local Town Centre there is a shopping precinct and there is a string of shops with no tenants.  There is a relief on paying rates for the first 3 months - and I agree with this, as it can take a little time to find tenants and find the right tenants.

Where I propose that the Government push a little harder is after the 3 months have passed.  I suggest that business rates in empty shops go to 150% of what they are when occupied - what greater incentive would there be to ensure landlords find a tenant and keep our High Streets vibrant and full if choice.

Keep your team challenged and supported

I write this as a warning to all you retail managers and entrepreneurs out there.  You must keep your team engaged, interested, challenged and supported.

If you don't then things may start to get out of your control…

I tell the tale of someone who I used to work alongside and then found out was having a disciplinary investigation carried out on him in another store.  When I spoke to him after it had all been settled he told me of his immense frustration at working in a store with little management supervision.  He had worked alongside people who had put in little or no effort and not been pulled up about it by absent management.  His efforts were overlooked and some of his behaviour became slightly niggling and destructive.

The outcome was a lot of bad feeling, a lot of lost time in dealing with the disciplinary, re-training and starting again with motivating a demoralised team member.

The message I'm trying to get across is that you have to keep the job interesting to keep your employees interested.  Be out there with your team, lead them, inspire them and keep then fresh.

Morrisons slashes prices, but fails to find its niche

Morrisons had an awful year, last year and they've decided to fight the discounter with discounts.  Unless they can undercut retailers like Aldi and Lidl that spend far less on their shop fits and staffing their stores, then they may struggle with this strategy.

It's the 2nd from last sentence that highlights a real need for expenditure-

"A lack of online and convenience store presence has also left the business exposed"

There's plenty of vacant High Street property out there for Morrisons to kill both birds with one stone.  Open convenience stores with online terminals for Click & Collect customers.  It will get them back on a par with the big boys, rather than trying to fend off the discounters snapping at their heels.

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Argos puts Click & Collect terminals in Homebase

Regular readers will know of my fondness for retailers offering a Click & Collect service.  It puts the best bits of online - wide choice, browse from home and great prices - and it takes away the pain of having to wait in for delivery or go to the local Post Office for collection.

You can choose your items, even from your smartphone, and then pick them up when you're next in the High Street.

I believe that this has fuelled Next's expansion and has propped up retailers such as Boots and Wilkinson.

The latest news from Argos is further proof that this is where the immediate future lies.

If you are a small retailer then you an offer a wider range from a small premises with your online or catalogue offering.  Then your customer can collect from you at a later date.  This increases your sales, keeps your floor space uncluttered, widens your range and pleases your customers.

What are you waiting for?