Ten Retail Strategies In A Tough Economy

We all know the news.  It’s downright dreary with predictions of more retail store failures than last in 2008.  Our number focus in 2009 has to be survival.  That’s why I was intrigued to read this headline in The Gourmet Retailer: Ten Retail Strategies In A Tough Economy.  James Russo, VP, Marketing, The Nielsen Company suggests:

1. Take higher margins in less price-sensitive categories.
2. Lower the thermostat in stores this winter.- post a sign saying it will help the environment.  Most people in cold weather shop with their coats on.  I’ve always felt that Americans keep their businesses too warm, anyway.  In the summer time use less air conditioning.
3. Publish your own $100/week family menu.
4. Tie discounts to large or frequent trips. - we have a threshold discount for designers and an extra 5% for designers who exceed a certain level.  Encourage customers to return with multi-purchase rewards.
5. Expand beyond your channel’s traditional product mix. - we’ve joked that maybe we’ll sell soup and kitty litter.  We have taken on more fabric lines to be known for accessories, furniture AND fabics.
6. Maintain competitive pricing in most frequently shopped categories.
7. Disguise store brands.
8. Support organic, natural and green products regardless of sales. -"Organic, natural and green products project a positive image for the retailer. When the economy recovers, retailers will want to be known for more than just low prices."
9. Get shoppers to try premium private-label products.
10. Make a good impression on new shoppers. - "Treat every shopper like it’s their first time in your stores."

I think number 10 is very important.  When stores aren’t doing well, they appear seedy.  Take some time to replace worn carpet, use a fresh coat of paint to cover worn and nicked walls, wash the windows, dust and vacuum, sweep the front steps and remove those annoying papers in the shopping cart, even fix those shopping cart wheels that keep you turning to the right.  Replace bulbs in your signs, inside and out. 

I recently had a conversation with the owners of a refinishing store who raised prices to cut back on work.  They wanted time to play more golf.  Now the wife wants to continue the business, while the husband wants to cut back. She worries that the income is down.  Besides raising prices, I asked if they discontinued doing any thing that built their business in the first place.  "Yes," she said, "we don’t advertise like we used to."  My admonition: This is not the time to stop doing the successful things that built your business.

Thoughts?  You can leave a comment or email me at landfair3554@comcast.net.