Monday 23 November 2015

This week is the MUST DO week when it comes to assessing how your Christmas sales are going

It's a hugely important time of the year for most retailers. I know of some retailers that trundle along through the rest of the year happy to break even or make a small profit on the basis that their Christmas trade will make up for it all. Many retailers I've worked with report that over 50% of their annual trade will happen during this quarter of the year. And there's the sales after Christmas to take into account as well!



With this time of year being so important, so busy, you can often forget to take a small step back and assess things. So ask yourself this question today-

How is it going?




Really. Find some time this week to answer that question. It's vital to the success of the rest of the year.

The big retailers have cottoned on to one truth that I'm going to share with you today-

Customers only have a finite amount of money to spend at Christmas.

It sounds pretty straightforward doesn't it? But it changes the way they operate. Their whole ethos is based around getting you (and your customers) to spend it with them and to spend it early. Look at the incentives-

  • Extra loyalty card points
  • Tesco Clubcard exchange
  • Sainsburys Nectar point exchange
  • Boots points events nights
  • Boots Star Gifts and weekly offers
  • Black Friday
  • Cyber Monday

And the list continues. The idea is that you incentivise your customers to shop with you early. A typical Christmas list might read-

  • Wife
  • Eldest
  • Youngest
  • Mum
  • Dad
  • Mother-in-law
  • Sister
  • Brother
  • Niece
  • Nephew

And once there's a tick next to every name on the list, then Christmas gift shopping is pretty much done. So if it's done at a Boots points event, for instance, then the spend at Boots will minimise the likelihood that there will be any spend in other retailers nearer Christmas.

As for Black Friday and Cyber Monday, these are not American imports, as the press likes to label them. These events mean more to the British market than the American one. In the USA, it's our equivalent of the January sales - they are selling off post-Thanksgiving stock that didn't sell. They don't do Christmas in the same way we do. Over here it a great tool for retailers to get those sales in early.

So have a look at what you have done and what you have planned and see how you can secure those early sales. It will make a big difference to your performance for the rest of the year.


A purely retail task on The Apprentice, a Welsh village taking a stand and a message to the multinationals

At last there's been a purely retail task on the current series of The Apprentice. It will strike a chord with my readers that are independent retailers themselves.


The task was to operate as a discount retailer by selling and reinvesting the proceeds in the items that have actually sold well. Which is independent retail in a nutshell.



There's the obvious and repeated issue with The Apprentice of many pieces of expenditure being totally ignored when it comes to calculations of profit and loss at the end of the task. I looked at it in a previous blog here - http://mytimeinretail.blogspot.com/2015/10/see-lessons-to-be-learnt-from-this.html

This week the ignored items included-
  • Rent
  • Staffing costs
  • Tax
  • Licence on the stall

I know it's the land of television and normal rules don't apply, but it's just not a level playing field.

Which brings me to my second story this week. It's about a village in Wales that is trying to level the playing field when it comes to competing with Starbucks and Amazon.

The tax structures of local business and multinational business are so different that it allows the biggest companies to move their money across divisions and borders to minimise their tax burden.

I personally think it's time for the government of the day (whichever party they may be) to stand up. The message needs to be-

If you want to do business in this country then you'll have to accept lower profits.

The message is stark but necessary. Reduced profits for these companies mean several things-
  • Higher wages for the lower paid in society
  • Smaller tax credit burden on the government and tax payers
  • Large multinational corporations paying their fair share in tax

I'm sure that everyone would agree that these are positive things that we can all get behind.


Sunday 15 November 2015

Read how one garden centre bucks the trend and gives lesson for us all

I'm currently out shopping at one of my least favourite retail destinations - the garden centre. I find that they so often get so much wrong and it frustrates me. They are a retailer that doesn't have the traditional problem of lack of space. They have the problem of too much space snd tend to try to solve the problem by filling the space with anything and everything. I wrote about this in this is a previous blog-


The garden centre I'm visiting today is a little different, if only at this time of the year. The front half of the garden centre has been transformed into a Christmas shop. It's full of colourful tinsel, glowing decorations and happy people. If if the customers aren't there to buy Christmas decorations they are there to look around. They car park is full, the café is full and the customers are mingling, talking and generally enjoying themselves.



As with all my blogs, I look at the success and failure of others to see how it can transform things for all of us. I think that a large part of retail is looking at how others operate and applying that to our own business. In this case, it may not just be Christmas that is the winning formula but how it is approached. I spoke in the last blog about garden centres on the need for making the front of the shop something to shout about. And this garden centre has done just that.

The message here us to carry out anything that you do as though you really mean it. Having this Christmas shop has made the garden centre a destination. Like Fenwick's Christmas window in Newcastle, it has become part of some people's Christmas tradition. This makes you a winner straight away because customers will walk through the door as a matter of course.



Think about your own shopping trips. There will be stores in certain towns or cities that you will walk into and look around out of habit. You may not be looking for anything in that category but go in there anyway. It may be their coffee shop, the fact that they have different things every time you go in or their displays. You need to find your reason for shoppers to visit and make the most of it.

Think long and hard about what you do, what you want to be known for and then work hard with your team and your marketing to make this happen.


Why this week's The Apprentice (and a shopping trip) leaves me fuming

I hate homemade signs. I hate handwritten signs even more. I REALLY hate badly-made handwritten signs. After watching The Apprentice last night I despair even more!


Mergim felt the need to make a signs for their handyman business. I understand his motives but the execution was never going to win any design awards.






I've been out in a local town centre today conducting some mystery shopping (I talk about my mystery shopping in this blog) and I spotted loads of homemade and handwritten signs, complete with poor formatting, bad handwriting and spelling mistakes. I don't know what goes through retailers heads! The effect is unprofessional and does absolutely nothing positive for your brand, store or products.

The retailers I saw these signs in today included-
  • A gift shop
  • A nail bar
  • Boots
  • Holland & Barrett
  • A sweet shop
  • Several cafés and restaurants
So it's not an independents disease, nor that of a certain type of retailer. I really can't see any excuse if you're working for a major retailer. Every piece of marketing material is approved and provided centrally, it's even something that I've been asked to check up on during the mystery shops I carry out. If you want to know more about my mystery shopping and how you can become a mystery shopper then check out my blog- http://mysteryshopperblog.blogspot.co.uk/

Even independents can move quickly enough in their feet to avoid this. Having a good marketing, design and/or printing company to hand is a simple solution. Even getting training on design or using a friend with design skills will be better than handmade. By planning ahead and putting as much time as possible between thinking of the sign and using the sign gives you time to get the materials produced.




If you don't have the skills yourself or know anyone who can help you out the fiverr.com could provide you with an answer. It's an online community of freelancers that can produce one-off items for the low, low price of $5. Provide an outline of what you want and a timeline of when you need it and you'll find a willing designer to produce a file for you to print or have printed. Give it a look and you may find your answers.

You can find my profile at  https://uk.fiverr.com/homeestates


Thursday 12 November 2015

The Apprentice, Mannys Sauces and your business - see how they all connect

As a retailer, sometimes a part of your job is to launch a new product or bring a great product to people's attention. It's not always an easy task, as the competitors on this year’s The Apprentice have found out on two tasks so far this year-

There was an early episode where the two teams had a go at launching a new shampoo made with the cactus flower-


And a more recent episode featured the two teams (and those within the teams) going head to head against each other in designing and selling their own children's book-


It is not easy to launch your own brand or product but one man that has launched his own brand is Manny. Here's his story-



“As any other person in the world, I had a huge dream - to open the first Piri-Piri Chicken Restaurant in the world, and then spread this dream to every corner of the planet. It wouldn’t be easy to achieve, but neither was it impossible. I had the will, the courage, the faith and family support to make it come true. Early in 1985, I sold my home to open the first piri-piri chicken restaurant outside of Mozambique. CHICKENLAND was the chosen name and Johannesburg, South Africa was the birth place of my dream! After a short while, I was making, bottling and selling a range of 5 different Piri-Piri Sauces and Marinades. After a slow start, the business was a stunning success! The name quickly spread across the city and everyone was talking about this new food place that was taking the food industry by storm.

The business success was proven! The next step was expansion to other parts of the city, country and abroad, and many people tried to get financially involved. Expansion included a need for capital and people, and so in 1987, I sold some of my business shares to two young men: one of Portuguese origin and the other, a South African of Jewish origin. Shortly after they joined, the business name was changed to NANDOS. Chickenland was a nice name, but according to marketing experts at the time, it was felt that the business should be backed by a personal name before the expansion took place. Between MANNYS and NANDOS, I was out-voted two to one, and the latter name was chosen. Despite a few initial problems, the expansion started taking off and now more than ever, the success was tremendous!

A few years later, the rug was pulled out from under my feet and I was forced to leave my business. I lost my dream; one of the best things in my life after my family. After this happened, I opened a few other restaurants including Chickenland in Portugal, but these weren’t my dream. It was a way to make a living, but it wasn’t my passion. It took me a long time to recover from what happened, but I was determined and pushed through until another dream emerged; to make the best sauces and speciality food products in the world! MANNYS SAUCES is now my new dream! Once again I can see this new dream taking shape and growing strong all the way to the TOP! The passion is back and I again have the will, the faith, the support of my family, and the support of so many loyal customers that know and appreciate the high quality products that we make. I am forever grateful to my family and my customers for their support and the divine forces for showing me the way.
Manny x”

And one of retail’s challenges is to get in touch with your customers in different ways. It’s by being what large companies and analysts call multi-channel that gives you the best access to customers. Follow Manny’s lead, where you can-

Try the online store at http://www.mcssl.com/store/mannyssauces for the Chickita - Mann’s famous cured and smoked chicken sausage and the rest of the range of cured meats.

Follow on Facebook at www.facebook.com/Mannyssauces where you can read about the wonderful MannyNaise. With this, you can substitute your boring, regular mayonnaise for the spectacular taste of MannyNaise and transform dishes from the ordinary to the wonderful.



Catch up with them on Twitter at www.Twitter.com/Mannyssauces to hear about the Tomato Fusion – a sauce that’s destined to become the ketchup of choice for the 21st Century. It’s the next level in tomato ketchup.

Their YouTube site at www.youtube.com/channel/UCPvHPFfaz5yJRTtlv_ViDPQ gives you great recipe ideas and shows you how to use the sauces, such as the original, classic Piri-Piri sauce. This is the genuine, original and unique Southern African Piri-Piri sauce. This is the perfect mix of the heat of chilli and the depth of flaviour that perfectly captures what Mannys Sauces is all about.

Don’t forget the selection of cured meats. Paio is a great selection and is made of pork fillet with a maximum of 5% fat.



And you can just go straight ahead and check out their website at www.mannyssauces.com to see details of what they are all about, more details on Manny’s story, find stockists and much more.

Think about your retail business and how you can make your offering truly multi-channel – it will bring out the best in your products!

Sunday 8 November 2015

Stop team members becoming invisible and motivate to success

I've been working with a management team this week and been looking at employee engagement. One of the things that has really struck me was the feeling from some of team that they are invisible, particularly to their management structure above them. This isn't a feeling from the newer team members, who seem to get a lot of time and attention as they learn the ropes and settle in. It is a feeling that is harboured by team members who have been there for quite some time, know their job inside out and just come in and get on with it. At first I found this to be a bit of a surprise, that the reliable team members were feeling invisible. But on further thought it felt true. If someone just comes on and does there bit then it is often only noticed when they are in holiday, off sick or leave. There's this gaping hole where the employee used to be. The problem is twofold - management teams not leaving colleagues feeling invisible, and colleagues being motivated to keep coming back for more. Now this is an issue for management teams all over the world-

How do you motivate team members who have been doing the same job for years.




And I must admit it's been a problem for me in my work career. I often get bored if doing the same thing over and over. I've changed jobs, changed companies, changed locations and changed industries when I feel like it's time to do something different.

Managers
The fact that team members don't feel recognised is down to management complacency. And as a team manager, it's about being present on the coal face every day. As a manager, you should have a conversation with every team member every day. They should feel that you understand what is happening to them today and if there's anything you can help with. To appreciate someone's contribution can often just be about saying "thank you." Along with a genuine, meaningful reason of why you are thanking them, this can have a massive effect - no more invisible employees!

Colleagues
If you're not in the management team and perhaps feel invisible or demotivated then works to your line manager. A conversation can be started by you, as much as by your line manager. Tell them your concerns and see what can be done about them. By being frank and discussing the situation, you can establish what to do next.


Wednesday 4 November 2015

See why the entrance to your retail store should shout about your claim to fame

I'm in a local garden centre today and as I walk through the first aisle from the entrance to the café I am a little dumbstruck. I walk no more than 40 yards and I am confronted by-
  • Christmas decorations
  • Alcoholic drinks
  • Books
  • DVD's
  • CD's
  • Jigsaws
  • Toys
  • Food items
  • Non-alcoholic drinks
And then the café itself


I'm struck by a retailer that doesn't really know what it wants to be and what it stands for. I've used this phrase in my blogs before and it means so much-

Decide what you want to become famous for.

Now I'm not talking about the celebrity type of fame that seems to float the boat of so many people today. I'm talking about the famous part of your retail business that customers will talk about and return for. It's been referred to as your USP or your diffetentiator and it's what makes you a success. Woolworths was the prime example to me of a retailer that didn't know what it wanted to be. It tried to be all things to all people and became unimportant to many. I've also blogged about Tesco trying to do everything but ending up doing everything worse than their rivals-


I don't necessarily think that a retailer shouldn't sell more than one type of product, but the initial message should scream from the rooftops about what you stand for. This retailer I'm in today states that "we do all sorts of stuff." It's not a sparkling message.

Looking around the garden centre, there are places of interest, areas where they do stand out from the competition. The café is very busy and the food looks great quality. The Christmas decorations are vibrant and have a great mark-up. The indoor plants are well-priced and different varieties to other garden centres I've been in. One of these areas should be the absolute focus of the attention as the part of the business that leads customers to walk through the door and return.

For your own business you need to look at what you are doing and make a decision. The decision needs to be around what you think you should be famous for. Once you (and your team) know what this is then position your store so it talks to your customers in those terms-

"Mr and Mrs customer, this is what we do."


Monday 2 November 2015

See how to turn the plastic bag charge to your benefit

We are now a month on from the start if the charge for plastic bags in shops in England.


As people start to settle into the routine of bringing their own bag or paying, it's worth taking a look at the charge and seeing how it works and how it can work for you. There are quite a few exclusions to the plastic bag levy and some may apply to your business-


A main area that you don't have to charge is if you employ less than 250 full-time employees.



Many of my readers are small independent retailers but the exclusion doesn't mean that you can't charge for bags - it means that you don't have to. I think that a large part of the charge is to educate customers to the dangers of disposable carrier bags so a small retailer can be as much a part of this education as a large one. Customers won't necessarily know which shops have to charge and which shops are exempt. So this is your opportunity to help a charity of your choice by charging for bags and donating the proceeds to them. If it's communicated in the right way then your customers will feel positive about the charge rather than negative.

Your alternative is to advertise that you are one of the retailers that don't (have to) charge for bags. It feels like a strange strategy but it could give you a small competitive advantage as bag charge fatigue sets in.

And it's by looking at your structure when changes like this happen that helps you assess your business plans. Having plans set out for your business and regularly assessing them keeps you on track. I suggest that you set out business plans annually, reassess quarterly and monitor progress monthly. Changes to legislation, the trading landscape or your competition will prompt a further review and assessment. As a business, you will need to know where you are and where you are going. Getting to grips with it all can transform what you do.

In my next blog I'll take a more detailed look at business planning.