The Seismic Shifts of Retail in the Last 5 Years

 The Retail Consultant: The Seismic Shifts of Retail in the Last 5 Years

Five years. In the grand scheme of things, it might seem like a blink. But in the whirlwind world of retail, it's felt more like a tectonic shift. As retail consultants, we've been on the front lines, witnessing and navigating these dramatic changes. So, let's take a breath and examine the key transformations that have reshaped the retail landscape over the past half-decade.

The E-Commerce Escalation (and Maturation):

Let's be honest, the digital revolution wasn't exactly a newcomer five years ago. However, the speed and sophistication of e-commerce adoption have been staggering. The pandemic undoubtedly acted as a massive accelerant, forcing even the most hesitant consumers to embrace online shopping. But it's not just about having a website anymore. We've seen:

 * The Rise of Omnichannel: Retailers finally understanding that online and physical stores aren't separate entities but rather interconnected touchpoints. Seamless experiences like buy-online-pickup-in-store (BOPIS) and ship-from-store have become table stakes.

 * Personalized Digital Experiences: Generic product listings simply don't cut it. Consumers now expect tailored recommendations, personalized marketing, and interactive online experiences powered by data and AI.

 * The Social Commerce Surge: Platforms like Instagram, TikTok, and even Facebook have evolved into powerful sales channels, blurring the lines between content, community, and commerce.

The Customer Takes Center Stage (More Than Ever):

While "customer-centricity" has been a buzzword for years, the last five have seen a real power shift. Consumers are more informed, more demanding, and have more choices than ever before. This has forced retailers to:

 * Prioritize Experience Over Transaction: It's not just about selling a product; it's about creating a memorable and positive experience, both online and offline. This includes exceptional customer service, engaging store environments, and building a genuine brand connection.

 * Embrace Sustainability and Values: Consumers are increasingly conscious of the social and environmental impact of their purchases. Retailers that authentically demonstrate their commitment to sustainability and ethical practices are gaining a competitive edge.

 * Foster Community and Loyalty: Building a loyal customer base is crucial. We've seen a rise in innovative loyalty programs, exclusive experiences, and the creation of brand communities that foster engagement and advocacy.

The Tech Transformation Continues (and Accelerates):

Technology has always been integral to retail, but the pace of innovation has been relentless. Over the past five years, we've witnessed:

 * The Integration of AI and Automation: From inventory management and personalized recommendations to chatbots and automated checkout, AI and automation are streamlining operations and enhancing the customer experience.

 * The Metaverse and Immersive Experiences: While still in its early stages, the potential of virtual and augmented reality to transform the shopping experience is becoming increasingly apparent.

 * Data-Driven Decision Making: Retailers are leveraging vast amounts of data to gain deeper insights into customer behavior, optimize pricing, personalize marketing, and make more informed business decisions.

The Reshaping of the Physical Store:

Despite the e-commerce boom, the physical store is far from dead. However, its role has evolved. We're seeing:

 * Experiential Retail: Stores are becoming destinations, offering unique experiences beyond just browsing products. Think interactive displays, workshops, cafes, and community spaces.

 * Smaller and More Flexible Formats: Retailers are experimenting with smaller footprints, pop-up shops, and micro-stores to reach customers in new and convenient ways.

 * Technology Integration in-Store: From digital signage and self-checkout kiosks to augmented reality try-on experiences, technology is enhancing the in-store journey.

Looking Ahead:

The last five years have been a period of intense disruption and adaptation in the retail industry. While predicting the future is always a challenge, one thing is certain: the pace of change will only continue. As retail consultants, our role is to help businesses navigate this evolving landscape, embrace innovation, and ultimately, thrive in this dynamic new era.

What changes have you observed in the retail world over the past five years? Share your thoughts in the comments below!

If Men Are From Mars and Woman Are From Venus, Then My Boss Must be on Jupiter!

Sometimes talking to the boss is like talking to an alien 👽 from another planet.  If Men are from Mars and Woman from Venus, then the boss must be from Jupiter. 
 
There seems like the communication between the home office and store is delayed because  of the light years in distance between them.

I watched as the local supermarket chain remodeled its stores.  Had a grand reopening.  Then changed  aisles back the way they were.     The store associates shaking their heads saying, we knew they were making mistakes but no one would listen. 

The home office on the other hand make decisions based on the analytics.   In theory what changes they made make sense.   But these people don't have any practical experience.    They cut costs by making cookie cutter decisions.   They don't realize people's buying habits are very local things.   You don't sell Matzo ball soup in Chinatown!

Local store employees know what their customers want, because they interact with them every day.   Yet, no one asks them.  The home office employees spends less than 24 hours a year working in a store.  Yet, they think they know best.

In the end they realize sales dropped because categories were removed.  Things the employees were as saying all along.   Now they have to hope they didn't lose any customers.

All this could of been avoided had the boss come to Earth in peace, used a universal translator when talking to the store associates.  Instead they spent extra time and money undoing mistakes they made. 

The store employees are now running around preparing the store for the grand reopening. Not to impress the customers.  But, worried because the "BIG BOSS" was coming!

I know the boss has no idea what the employees are thinking. Just like I know the employees have know idea what management is thinking.  Why,  because I've talked to them both, I've worked both for both sides. 

Why is it they can't talk to each other?  The employees are scared of upper management.  Some are known to hide when they come to the store.   They see the big boss tour the store usually ignoring everyone around them.

I love watching undercover boss.  I like most when the boss realizes he doesn't really know what's going on in his business.    😟

Somewhere in the trip from Jupiter to Earth the Boss forgot what it was like work in a Retail store.  Or worse, they never did!

I remember 2 experiences while starting my career in retail management.  In first job a Regional Vice-president who knew I was afraid of him told me, "You don't have to like everyone you work for."  How true, but, was this the right thing to say to me?   

The second, just after and not unsurprisingly, that company went out of business. In my very next job a store manager told me to "Remember that the boss isn't special, He puts his pants on one leg at a time like the rest of us.  Don't be afraid to talk to him. "

In that company I got my first promotion to store manager!  And that company through mergers is now one of the largest retail drugstore chains in the Nation.

What Does A Retail Store Manager Do?

What Does A Retail Store Manager Do?

 

It is the store managers responsibility to run the day to day operations of a retail store.  Depending on the size of that store he or she may delegate some of their work responsibly to assistant and  department managers.

Duties may include:

1. Hiring, Training, Scheduling and Supervision

2. Being a key Holder to open and close store

3. All Cash Handling procedures

4. Sales and Customer Service

5. Freight handling, including Shipping & Receiving

6. Inventory Management

7. Maintenance of facility and equipment

8. Merchandising and Store Presentation

9. Loss Prevention, Assets Protection, and Security

10. Facilitator of all Company Policy and Procedures

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A General Store Evaluation

A friend of mine asked "Why can't I get the foot traffic to come into my store?".  

Well I said lets evaluate your store.  The one thing we want to do is compare your store to the competition.  Why do they go in their stores?  The Store in question is a small general merchandise store.  About one third is clothing.  He sells at competitive prices, but doesn't specialize in any one area.

His competition in the same shopping center:

1.  Major Supermarket
2. Dollar Tree
3. Card and gift shop
4. Food Shops 
5. Post Office

Down the road (less than half mile)

1. Staples
2. CVS
3. Rite Aid
4. Another Supermarket
5. Marshalls
6. Toys R Us Express
7. Varies clothing and other stores

So I said first rule of retail is Location, Location, Location. 

 What makes this the right location for your General Merchandise Retail Store?

Are people going to come into your store for a specific reason. Or, are you just hoping that they will just come in to see what you have?   In a city this store might do well.  Somewhere where people have to walk and carry every thing they need.  In that case the closest store gets the business.  But given a choice, people will drive down the block or around the corner for a specific item.  Because he doesn't specialize in any one thing.  The customer can get the same merchandise while in another store.  

Example 

I can buy cleaning supplies in the supermarket.  I can get cheap items in Dollar Tree.  Get greeting cards at CVS.  By the time I do my other shopping I already bought everything sold in the general store except clothing.  But, because there is a wide range of clothing stores nearby, I'm less likely to shop in a small general store.  

So my answer is this is not the right location for a small general merchandise store.  Either move the store or change what you sell.   If the rent is so good, the foot traffic is there.  Then Change what you sell to something that people aren't going to get nearby.

What items sell the best?

His answer was gadgets, small impulse items, toys, small electronics.  I said well that your answer.  Specialize on those items.  Sell off the rest of your stock and slowly turn your store into a gadget selling store.

Keep your price range better than a dollar but not too high.   You want items they cant buy in the supermarket and better quality than the Dollar store.   Now if people want a decent charger for their phone, either they come into your for it or have to drive down the block.   By changing what he sells he will cut down on the local competition.

People too often open a retail store selling what they want to buy. And then think its what everyone else will want.   Sam Walton the founder of Walmart said that if you want to compete with Walmart you have to specialize.  General merchandise stores sell a little of everything.  Your choices are limited.   If your want model cars, your only going to find a few choices in a general store.  Where as a hobby shop may have dozens of choices.

If your set on owning a general merchandise retail store, I suggest you find the right location.  Somewhere where people don't have a local store.  If People have to drive a half hour to get to your competitor than that's the right spot

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Top 10 Easy Stores to Steal from!

Top 10 list of easy to steal from stores

1. Small Privately owned dollar or dollar plus stores
2. Dollar Tree
3. Family Dollar
4. Privately owned Drug Stores
5. Small Card stores
6. Convenience stores
7. Gift Shops
8. Small privately owned Super Markets
9. Small Privately owned Hardware Stores
10. Any store with few employees

15 Ways Shoplifters Steal from Retail Stores

Retail 101: How does Shrink Effect My Business

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How To Reduce Shoplifting

Fred has been finding empty packages all over his store for months now.  But he never seem to ever see the people stealing all his merchandise.  

That's because shoplifters pay more attention to what he was doing, then he does to them. 

But, Fred doesn't know who is stealing from his store.  So what is he supposed to do?

The most common reason shoplifters steal from a retail shop, is because they can.  No one in paying any attention them. 

  In my current position I  have supermarket customers coming up to me looking for help.   I see the fustration on thier face when I tell them I don't work there.  They all say the same thing.  "Nobody works here", " I can't find anyone".  

I see employees everywhere.  As a consultant it's my job.  But, customers shouldn't have to jump through hoops to get some help. 

Shoplifters take advantage of this void in customer service.  Everyone is busy doing thier job and no one is concerned with the customer down aisle 5. 

The best defense against shoplifting is a strong offense of GOOD CUSTOMER SERVICE !

Be aware of and greet every customer that walks in the door.   A large store should have a door greeter or security guard up front.   A small store should use a door chime and have the cashier's in sight of the doors at all times.

Watch your customers you will start to see things.  You see the customers who are walking out just because they can't find what they want, even though it's there. 
You will also see the Customers hiding in the back always looking to see who's watching.  

A real shoplifter will get annoyed when you watch them.  Annoy them enough they will leave.  A real customer will appreciate you helping them and may even buy more. 

A trick to use when your overwhelmed with too many customers to watch.  Page security!

See who looks concerned or walks out.

What is an Easy Store to Steal or Shoplift From?

What is an easy store to steal from?

It doesn't matter if you're from New York or California, from Boston or Miami.
Small stores are easier than large stores to shoplift from.

Small retail stores with few employees are easier to go under the radar when shoplifting. If your the manager of a small store it is your responsibility for shrink control. Train your employees about all forms of shoplifting.

15 ways in How shoplifters steal from retail stores

Don't ever forget who is the number one shoplifter in small retail stores. The employees are the biggest shoplifters stealing a lot more than a candy bar.

Professional Shoplifters are more likely to pick a small family owned supermarket before stealing from a large chain supermarket. why? Because even with a camera everywhere, its less likely anyone is paying attention.

  I worked for a small 14 store chain of closeout stores. One night after inventory the district manager put together A bag painting supplies. He explained they were painting the office. There was no accounting of the merchandise and the store manager didn't question it.

   Same store I caught a teenage neighbor of the owner stealing from the register. She was smart she didn't steal directly from the store. What she did was give the customers the wrong change. when no one was looking she would take money out of the cash Register. I caught her by watching for signs of a their and doing an audit. Because it was a small company and she was a friend if the owner, nobody seemed to care. "Well she wasn't stealing from the company", they said.

  Today that company is out of Business. Control Shrink or shrink will control you. I'm pretty sure it wasn't lack of sales or a low gross margin that killed that company. More likely it was Poor Management.

   If your reading this blog you are either a retail manager or a thief. Read my past posts and learn how to stop shrink. Then teach what you have learned. Pass on this blog to your fellow employees.

  Think Shrink !


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How To Have a Successful Garage Sale in NY

 It's Garage Sale Season,

 Are You Prepared?

How To Have A Successful Garage Sale.

___

By E.A. Kogward

INTRODUCTION

A Garage Sale, Yard Sale, Tag Sale or are all the same.  Basically it tells the buyer's you're selling stuff out of your house, yard or garage.   Need to make some money, you can sell old junk you don't need anymore.  Some people make a living working Garage sales.   Some are looking for that special item they can resell in their store or online.   Others sell collect junk and collectibles and and use a garage sale a the beginnings of an online or brick and mortar store.

People are hoarders they don't want to part with anything.   Every year tons of good sellable merchandise just sit in attics, basements and garages until either people move out or die.

Junk companies get rich doing three things. They charge the homeowner to clean out the basement. They then sort the items and sell anything of value, and lastly they recycle any metals and electronics before carting what's left to the dump.    Truth be told they should pay you to take away that trash.

Keep in mind the ordinary garage sales makes $100 - $200.  That's $100 -$200 more than you had yesterday.  Sort out those items, do your homework on what its worth and don’t let people take advantage of you.  Then turn your garage sale into $300 - $500.   The more merchandise you have that people want the better you will do.  Of course larger ticket items like furniture, Jewelry and electronics will raise your average sale.  

Don't Sweat The Small Stuff !

Recently I received a comment that my spelling and grammar were bad.  Nobody is perfect.  I'm amazed at all the managers who spend their time criticising  employees for little things.  These are the same people who never acknowledge a job well done.

Don sweat the small stuff.  Their are more important things to worrie about.  I'm not saying forget em.  I'm a big fan in teaching and learning.   It's then ideas of how to manage that I try to teach hear.  Anyone who thinks that pointing out little mistakes in a purely negative way, does not make a good manager.