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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When is The Best Time To Go Shoplifting?

This post is written in the eyes of a shoplifter. In this way retail store managers have a better idea what to look for to catch shoplifters and lower shrink.
When is the best time to go shoplifting?

1. During the busiest part of the busy holiday shopping days. 
2. late morning when the lines are out the door. Before lunch / shift change fewer employees are in duty.
3. Dinner time, again when lines are long and before shift change. Less employees are in the store and the ones that are, are more concerned with leaving than looking for shoplifters.
4. End of the night. Again less employees in store. Manager is in back room making deposits.

Shoplifters will scope out your store and know who's usually where, when they come to steal from you.

The day after Holiday is the best time to take something off the shelf and return it for credit.  

1. shoplifters will have something to return with a real receipt. This takes the suspicion away from the shoplift theft.
2. Take 2 other items off the shelf.
3. Bring all 3 to the register and tell the cashier. You want to return items ( only one you have the receipt for). And buy the third.
4. This is known as the buy one steal one trick.
5. Find a receipt on the floor a few days before. Then return to the store with a bag. This looks as if you entered. The store with the item . Then take it off the shelf and to the register to return.  

These shoplifting practices work best in smaller stores.  Where the small retail store owners and managers don't know whats going on.   That's why they should read THE RETAIL CONSULTANT and see what they are missing!