We're a fashion retailer - we just don't sell clothes

Paperchase chief executive Tim Meglund was quoted yesterday as saying the above quote - "we're a fashion retailer, we just don't sell clothes" about the company as they posted their annual results.

I have long believed something similar of every company - that they are all marketing companies, that market different products or services.

• An estate agent is a company that markets properties
• A retailer is a company that markets their own or someone else's products
• A manufacturer is a company that markets it's products to retailers and consumers

For me, that is the raisin d'être of every company - to raise demand for their product or service by marketing.

What does this mean for me

You have a couple of options, depending on the type of products you sell.

If they are made by you, then you need a marketing campaign to raise awareness and demand. You can use a local marketing consultancy, usually at a reasonable cost, or go it alone. Social media, word of mouth, offering incentives, local radio or newspaper advertising, handing out leaflets - the list goes on and on. You will know what us a good fit for your business.

If the products are made by a larger manufacturer (and I'm talking the real big boys) then you have a reliance in the fact that these big boys will be spending money on advertising already. You can mirror their advertising with your promotions. For example, if Plenty kitchen towels are putting out TV adverts, newspaper adverts and a social media campaign (as they are now) then this is a good time for Plenty to be highly visible to your customers, and perhaps offered on a promotion. Again, you will know how best to make this work for your customers, from a choice of the options above.

So, don't just think of yourself as a retailer - there's a little fashion retailer and a little marketer in all of us.

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Ensure your team know exactly what you expect from them

As the title says, I urge you to let your team know exactly your expectations if them day-in, day-out. As a leader you should have a clear plan of your goals and ambitions for the store you are running and ALL of your team should know 1- what these are, and 2- how you will achieve them.

This should be brought about by taking several steps-

• Decide what exactly it is that you want to achieve
• Work out basic steps to get there
• Plan an overview meeting with your team at the outset to communicate the above
• Have regular progress discussions to keep your team informed and keep their actions on-track
• Have daily discussions with team members regarding their input into the longer term goals

Leadership style

For the good managers, this may seem quite basic, but it doesn't happen in a lot of retail environments. Your ability to clearly communicate what you want your team to do and how you want them to do it is the very basis of your motivating management style.  A stranger should be able to walk into your store and ask every one of your team what your expectations are and get the same answer.  Now ask yourself - is this true if you and your team?  If not, then please take a loom at the steps outlined above and work through them in order.  It will make you think about your business, your goals and your leadership style.  The right results will only come if everyone is working together to achieve them.

Adapting this style

Once you have this as an ongoing part of your team's day, as in working towards these goals, then the next step or adaptation is to get your team to have a greater input into the goals.  They can challenge you and each other and this, in turn, empowers them to inspire each other.  Taking on these challenges and taking risks within a supportive framework make the job more interesting and make the team more likely to grow together and stay together. The working relationship between your team is vital to the vibrancy if your offering to customers.  Anything you can do to nourish that is taking a massive stride forward.

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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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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BBC highlights 150 years of John Lewis

I know it's Easter weekend, but I found the fact that John Lewis celebrates 150 years of trading very interesting and wholly relevant.  Being able to thrive for that long is testament to bring able to adapt to changing trading conditions.

Their aura of quality and exemplary customer service (if you haven't experienced it, then give it a try) have fuelled a continued trail of loyal customers.

It's niche is quality.

http://m.bbc.co.uk/news/uk-england-london-27033810

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Asda gets in on the Click & Collect boom

I have long been an advocate of the Click & Collect services offered by High Street stores to access a full range of products in perhaps a smaller outlet.  Boots and Next in particular have seen these offerings as successful.  Now Asda have announced plans to increase their "Click and Collect points" by 1,000.

http://www.bbc.co.uk/news/business-26918527

This is a huge growth area and will continue to grow both your offering, and the High Street.

I have seen research by an unnamed High Street retailer that the average customer spends approximately a further £8 when they come into store to collect their goods.  That's extra income on both counts that can't be sniffed at!




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Keeping your team in the dark breeds disruption

If you are a retailer and you keep your team in the dark about future prospects and plans for the company then this will always lead to discontent and disharmony.  There are necessary breaks in continuity for any organisation - people leave, people are promoted, end-of-year budgets are announced, etc.  When these become a problem is when they are not managed in a positive and open manner.

Team members who are looking for promotion may become unsure of their prospects if they see uncertainty.  They may look elsewhere and this creates a vacuum of talent in a company, where they have spent time training and preparing people for future promotion, but don't have or communicate a clear plan as to how and when that promotion will be achieved.

You may have team members who are temporary and looking for a permanent position.  If they can't see a clear role for themselves ion the future of the store or organisation, then they will start to look at opportunities elsewhere and "elsewhere" may be able to offer something permanent.

Even some settled team members may begin to question the company's logic, structure and long-term viability, as this whole process creates instability and confusion.

I have experienced this in every retailer, for one reason or another.  At higher levels, don't think that your shop floor staff are too unimportant to be kept informed of where the company, region or store is heading.  If you keep them in the dark, you may lose them - and you will lose sales while uncertainty surrounds them.




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A clear purpose of what your retail business delivers is key

You must be able to communicate what your retail business stands for and what your customers are to expect in order to be successful.  The more successful retailers of the present times are clear in what they do best, tell their customers "what they are famous for" and their customers respond with loyalty and passion.

Some examples-

Value
Poundland and Home Bargains stand out here for me, as they consistently offer good products at a great price and their customers love it.  You can expect average customer service, often long queues and no shop floor staff to ask questions, but this is the price you pay to pay the price you pay!


Quality
This is the success story of John Lewis and Waitrose over the long-term and especially over the last few years.  The long-standing guarantee of "Never Knowingly Undersold" is their tagline but it is the absolute quality of their products (and staff) that sets them apart.


Getting the fashion trends "just right"
Now this is more difficult to put your finger on, but Next and Zara have hit the nail on the head, year after year.  They produce what their customers want to wear and their growth and sales have followed.


Loyalty
I have marked this as what a retailer can stand for as Tesco with their Clubcard and Boots with their Advantage Card have built loyal customers through their store card schemes, even though they lack in certain other areas (in my view, Tesco with service and Boots with price.)


Expertise
Their are certain retailers that are just accepted or known as the experts or leaders in a certain area.  If you want to buy sports gear then you will more than likely end up in Sports Direct.

All of these companies named have posted great results over the years and they, their staff and their customers are very clear in what they get from their shopping experience.

Ensure that you and your team have a strong, solid idea of what you want to be famous for and  communicate this clearly and consistently to your customers with your everyday conversations with your customers, your marketing and your social media presence.

Recycling empty shops is key to the future vibrancy of the High Street

The below article on the Management Today website seems to bemoan the fact that the High Street has spawned Charity Shops and Betting Chains, but the picture is much more complicated than that-

http://www.managementtoday.co.uk/news/1286363/high-street-shop-closures-dropped-80-last-year/

There needs to be a progression away from shops that sell products or services that we can find cheaper and easier online towards places that offer an experience. product or service that we would rather see or circumstances dictate that we can't do online.  On the "Risers" side of the chart are great examples of this-

Hotels
Although we mainly book these online (see the decline in travel agents on the "Fallers" side of the chart) we can't stay in a virtual hotel.  Good quality basic accommodation at competitive prices will always attract visitors to the correct locations.  The success of Travelodge and Premier Inn are testament to this.  Having a budget hotel in or near your High Street will provide you with extra trade.

Convenience Stores
We buy this at our convenience, as the name states, so it's not a pre-planned online purchase.  As the supermarkets develop their Click & Collect offerings via convenience stores then this area will get bigger and bigger.

Cheque Cashing
This has similar background to convenience stores, as there is a shorter run-up to this decision and the nature of the business and clients lead this to being a face-to-face transaction.  As technology develops, this may be an area that could go online, as was reported last year, with banks allowing customers using technology to pay in cheques.

http://www.independent.co.uk/news/uk/politics/treasury-unveils-smart-way-to-cash-a-cheque-take-a-photo-on-your-phone-and-mail-to-the-bank-9025350.html

Sports Goods Shops
I feel this one area is on the list due to the expansion of Sports Direct over the last year.

Bookmakers
This is the growth area that I find most startling on this list. And with the advent of virtual gaming machines on your smartphone and online betting accounts that you can access from anywhere, is the one area that I don't see being a long-term upward trend.

The areas that have seen falls are areas that have seen a large growth online, such as travel agents, recruitment agents, video libraries and photographic stores.  This will only continue, but regeneration of our High Street into something that is fit for purpose in the modern World is essential.  I have mentioned Click & Collect before, and this is a great way of combining online and High Street parts of a business.  It combines the best parts of the online experience (convenience and price) and removes the worst part (paying for and waiting for the delivery.)  If you are not offering this service now, then you must seriously consider it.

Online-only retailers, such as Amazon are rumoured to be setting up demonstration stores where you can try the latest games console, for example, then order it there and then for home delivery or Click & Collect.  On a recent visit to a shopping centre on a weekday, the only 2 shops that were busy were Build A Bear and the Lego store.  Both were offering an experience, like the demonstration store.  Offering your customer an experience, whether that's building your own soft toy or building your own Lego characters, gives them something m ore than a transaction - it's an event.

Another stores that I have seen similar experiences are Sainsbury's, where I was offered a croissant with jam and then told which croissant and which jam, to enhance my experience (and make me buy some!)

Then there are the beauty stores (Boots are good at this) where they offer you a makeover, show you online videos with make-up tips and then sell you the relevant products.

None of these things can be experienced online!

Not everything can be bought on the High Street - Kindle edition of The Book Thief

The Budget 2014 - how does it affect the High Street? and Next's increase in profits

The Budget

The Chancellor George Osborne outlined The Budget for the upcoming tax year yesterday.  What parts of it affect retail and in particular the High Street?

Well, in my view, it's a budget of small measures to inch us further along the road to recovery.  The 1p cut in beer duty, the halving of tax on bingo and the revamp of the savings and pension rules will bring some people back to the High Street, which can only be good news.  As they have a beer, play bingo and sort out their finances, they will spend time in cafes and spend money in shops.  This knock-on effect will be marginal but will help.

There is also the slight boost for some retailers themselves in the incentives offered for expoirting and investment-

http://www.bbc.co.uk/news/business-26642445

Next reports rise in annual profits

http://www.bbc.co.uk/news/business-26660925

The biggest rise was in the Next Directory part of it's business and I believe that many High Street retailers can learn from their Click & Collect and in-store ordering systems particularly.  These two areas a great offering, where you can offer your entire catalogue to customers of even your smallest stores and have them there waiting for your customer to collect.  It works well with many retailers (I particularly like the offerings of Boots and the big supermarkets with this) and can boost your trading platform.

You can offer an online or in-store experience for a customer, for items that you may have to source from a supplier, may have in another of your outlets or may have stored away from your shop front.  You can have the great conversation with your customer, sell them the required items, and then have the item or items ready for that customer to collect at a later date.

Your returns policy needs to be a little more flexible with this approach but the benefits to both parties and the customer loyalty it generates is more than enough compensation for this.

This can be linked to a recent report that family financial optimism was rising-

http://www.bbc.co.uk/news/business-26255705

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Some of the best days are when you just leave your team to do their job

As the title states, I think that some of the best days are when you have a team that you have trained, skilled and motivated to do their jobs to the best of their ability. Sometimes all you need to do is point people in the right direction and let them get on with what they do best - no interference, no questioning. Yesterday was one of those days where the operations guy knew exactly where he wanted to be after a heavy weekend trade (see payday weekend blog from Saturday.) The customer service team had nothing other to do than give great customer service and weren't hindered by taking on extra tasks. The shop ran well, sales were up and everyone enjoyed their day. For things you can't buy on the High Street - Kindle edition of Philomena: The True Story of the Film (Film Tie-in Edition): The True Story of a Mother and the Son She Had to Give Away

Do payday lenders have a place on our High Street?

As I looked through the BBC news pages, this article caught my eye.

http://m.bbc.co.uk/news/business-26382481

There are payday lenders on most High Streets, so is greater regulation a good thing for other High Street retailers or not?

For

Well, on a selfish level, there more disposable income our potential customers have in their hand, the more they have to spend in our shop.  Providers of essential items of grocery or personal hygiene products will welcome our loyal customers being able to continue spending.  In the UK we have little manufacturing industry, so a large part of our economy is driven by consumer spending.   The local plus it may provide is jobs for a couple of local people and rent for what may be a local landlord.

Against

In terms of the greater good of our community, money leaving local people as high interest payments and arriving in the profits of international corporations does us little good at all.

It may be our staff that are borrowing in this way, which if used irresponsibly then can lead to longer-term financial woes.  This could eventually lead to absenteeism or, inextreme cases, employee theft.

I am against the "Nanny state" and I think that people should be free to make their own decisions.  There is obviously a market for payday lenders, as they have become hugely successful.  This needs to be balanced with financial education (preferably in school.)

Not everything can be bought on the High Street - James Hunt: The Biography

It's payday weekend again

I suspect many of you have seen an upturn in sales towards the end if this week. Thursday and Friday are reporting good sales from local retailers here.

Make sure you're ready for this weekend.  Extra selling staff will make a big difference, as will staff ready to serve at the tills.

Your operations team should be prepared for extra replenishment and for it to take a little longer than usual, due to the extra customers.

Good luck out there!

Have a great weekend!

The 5 rules of managing your team

These are the 5 rules of managing a team in any discipline, but is perfectly tailored to retail-

1- Recruit quality

The recruitment process and the remuneration package needs to be robust enough to ensure that you can attract quality applicants and choose the best available to you.

2- Train effectively

Once you have your quality team or new quality employee then your training programme needs to be thorough, challenging and supportive.  Your team needs to feel as though they have been given training in the right areas to be comfortable in their role and then successful after that.

3- Set the standards

Your team should know what you stand for, what is important to you and what your expectations for them are.  This is basic management and can be shown by your words and your actions - lead in the way you want then to follow.

4- Police the standards

Once your team know what you want from them, ensure that they also know you are watching and monitoring their performance.  This is positive reinforcement of the standards that you outlined in point 3.

5- Reward accordingly

This can take many forms, from a simple "than you" to a bonus or more responsibility.  This can also mean performance management or disciplinary action if the results are not to the standard required.

Thanks for reading!

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Your enthusiasm infects your team - and your customers

The best managers have boundless enthusiasm (mixed in with some focus.). When you are enthusiastic about your job, your company and have a clear direction for this enthusiasm then your team will feed on this.  They will work better for you, share your goals and share their ideas.  Nourish these and you have a winning team and a great place to work.

I worked with a manager with great energy, enthusiasm for the job and a clear view of where they wanted their store to be - with a sense of what order things had to happen to achieve this.  It was a job that I jumped out of bed to work in.

And your customers feel it too!

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