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Retail consultant offers stores chance to win free makeover

Retail Update

Susan Dickenson, Retail Editor -- Home Accents Today, 8/1/2009

After years of working with some of North America's biggest chains as well as thousands of independent shopowners, Barbara Crowhurst knows a thing or two about retailing. She's even offered to give one of our readers a free retail makeover.

"Retailers need help," Crowhurst told me during a recent phone chat. "I go into the client's office, and I see so many business books that have never been cracked open." Not that the information isn't important, she said, but Crowhurst offers a shortcut by getting right to the heart of the matter. "I know how to digest it for you and tell you what you need to know."

Crowhurst's company offers business coaching, consulting and training to retailers, in group sessions or one-on-one, by phone or in person. At barbaracrowhurst.com, time-strapped retailers can select from a menu of products ranging from downloadable e-docs to the Retail Makeover Business Planning Program, an in-depth overhaul that begins with several hours of consultation, looks at past performance, strategizes for going forward, and follows up with monthly meetings.

"On a day-to-day basis, most retailers are totally reactive; to survive and thrive, they have to be proactive," she said. "One of the main reasons retailers fail is they don't take the time to review what's taken place in their business in the past year and then make an effective plan for the next. Many times when asked about their marketing initiatives, for example, they'll respond, 'What marketing initiatives? You must think I'm a big company.' They do little to no planning."

In that case, Crowhurst's planning process would start with a review of marketing activities in the prior year, a discussion about what worked and what didn't. The goal is to come up with a workable marketing plan, perhaps two to three promotions (in-store events, sales, demos, etc.) a month, broken out in a spreadsheet that details such things as how each promotion will impact sales, how it will be communicated and the anticipated result.

A makeover can also help put some new financial controls in place with budgeting, inventory management and product planning.

"The first thing I do is put them on a buying budget — we have to right-size the business," Crowhurst said. A review of the retailer's profit and loss statement and last year's sales totals are studied in order to determine operating costs and set targets for the coming year, month by month.

Inventory management improvement areas extend to the physical space as well as purchasing. "Most retailers don't inventory correctly; they keep product more than a year so there's no positive cash flow, or they'll pack up product after a season, so they're packing up money," she said. "Then there are those who buy and buy and buy and plug up these stores. They have a real misunderstanding on what customers see and don't see."

Product planning involves looking at category sales performance for the prior year, and applying a short list of considerations to decide if the category is worth keeping. A mathematical formula is applied to determine a workable buying budget for the retailer which, if followed, should get things under control and improve cash flow.

For those who may be in need of immediate assistance, there's a Power Hour makeover program priced at $175. A one-hour phone consultation is followed by the completion of a 20-minute questionnaire. Another phone consultation follows, and then Crowhurst reviews everything to customize an action plan.

If you're up for a makeover, Crowhurst has offered to provide a free Power Hour program to one of our readers. All you've got to do is tell her in an e-mail why you want a retail makeover and include a photo or two of your store. In the subject line, reference "Home Accents Today Power Hour makeover" and send it by Sept. 30 to retailmakeover@sympatico.ca.

To comment on this story, write to me at susan.dickenson@reedbusiness.com or share your thoughts on my blog at HomeAccentsToday.com.

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