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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How to be a Better Retail Store Manager!

How do you be a better retail store manager?

Ask yourself.  "Do I want to be a better store manager"?

"Can I be a better store manager than the last one"?

"How can I be a better store manager"?

" What's the benefits of being a better store manager"?

Having a retail store manager job is something to be really proud of. Part of you still might be nervous about your new management job.

You've probably been training as an assistant 

retail store manager, so are well aware of

the misconceptions of the store manager's duties.

We don’t need to tell you it’s more than being in charge of the store and keeping customers happy.

Your  role will involve being in charge of just the store’s sales, keeping an eye on stock levels, reordering supplies and managing and motivating your staff .

 You’ll also need to set an example to your employees and stick to company policies . It's a lot of work being a retail store manager but it's worth it.

Not sure what skills you're going to require to do the job?

How to keep the team happy?

Motivating your employees will become one of the most important parts of your job, without their help you’re in big trouble, and could even go out of business. So how do you keep your staff happy while still getting their respect?

• Take an interest
• Keep them in the loop
• Compliments cost nothing

Keep in mind how your felt when you were in there shoes.   Things that motivated you will Motivate your employees.  Things that disgruntled you will do the same to them.

Management styles

If you’re still lost and unsure about how to manage your team effectively, don’t panic! There are several different styles of management you can try.

A Better Store Manager is a Hands on Retail Manager.

• Work with your retail associates.  Teach them the right way and the wrong way to do the task at hand.  Show that your willing to help out when needed.   If your the manager who sits in the office and only comes out on the sales floor the critique, expect disgruntled employees.   
• Lead by Example!  The Ruff-riders followed  Teddy Roosevelt into battle.  He didn't stand back and say go charge up that hill alone. 

The Delegator  

Although it’s important to be aware of everything that’s going on, don’t do everything yourself, remember as manager it’s now your job to get more done than you can do yourself.

As long as you know what needs to be done, you can delegate the work to the best person and your store will still run efficiently. 

Stay Calm and Collected

Stay calm in a crisis and leave the excitement to your staff; remember if anything goes wrong the staff will look to you to lead the way. 

As a manager, you are  responsible for the whole team. You are the voice of reasoning for the group when dealing with company-wide issues. If your team let you down, you have to take it on the chin, but equally if they do well, you can be credited with the success – and that is the most rewarding part of the job.


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How Do I Open My First Retail Store?

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A Guide to Planning Your First Retail Store.

Going into a retail business for the first time takes some time, money and planning.  Here's a few things you might have not have thought of in planning out your first retail store. 

Who, What, Where, When and How?

Who's got the money to open a retail store?  Do you have enough money to open a retail store correctly?  How much do you really need?  Make a list of all the costs involved with opening a retail store, overhead, merchandise, payroll, fixtures, equipment, supplies, licenses, advertising, insurance, etc.  Then figure you need enough for at least the first 6 months of overhead costs to get started.  Plus you need to be able to pay yourself for those 6 months.  Most business don't make a profit in the first 2 years. 

A good business plan will help you get loans and attract investors.

What are you going to sell in your store?   Knowing what kind of merchandise to sell is very important.  You need to have a passion for what your going to sell or its likely your store is going to fail.  A lot of people these days are opening  those .99 cent stores.  They answer an ad for a preset turn key retail operation, not caring what they are selling.  They get suckered into a bad deal, all because it wasn't important enough.  Ask your self these questions.

1. What do you like and dislike about selling?
2. What do I have experience or knowledge in?
3. Who's going to be manning the store?
4. What's hot and what's not?
5. How is the competition for this merchandise?
6. Can I make a decent profit?
7. Do I see myself growing this into a larger chain of retail stores?

Where are you going to open up your retail store?   Location, Location, Location, its all about the location.  But have you really thought about it.

1. How big a store do you need?
2. How much us the rent?
3. Is the foot traffic worth the cost of the rent?  A mall retail store may cost 3 times  that of a strip center but only do twice the sales.  But a lost rent shopping center with a good anchor store can be more profitable.
4. How much competition is there in the area?
5. Is my store a destination stop or will you rely on the customers walking by.  ( A destination stop is a store that the customer planned to go; examples would be the grocery store or drug store. )
6. Where is the best place for my type of merchandise? 
7. What about doing business online? 

When are you going to open up your first retail store? 

1. Are you selling seasonal merchandise?
2. Are you fully prepared to open?  Customers wont trust you if you open , then close for renovations.
3. See good deals on merchandise and equipment, but not ready to rent a store, then rent a temp warehouse until you are.

How are going to run your Retail Store?  

1. Do you have a floor plan?
2. What fixtures and equipment do you need?
3. What supplies do you need?  Got enough bags?
4. How do I hire the right help?
5. Do I need a web site?
6. what my marketing plan?
7. What Laws do I need to know?  Do I collect tax?
8. What price do I charge?
9. Can I make enough profit to make a go of it?

You can't just open up a retail store and hope it will be profitable there is a lot of planning to do! 


Thanks for stopping by.  If you have a question please leave a comment.  Book mark this site for later review.



How To Be A Good Retail Store Manager

There's a lot that goes into being a Retail Store Manager.  From a Company or Business owners point of view, do you deliver the profits easily with out problems.

If your looking to get ahead at work.  The fourth quarter is what its all about.  Its the busiest time of the year and if you can't handle it now, forget the rest of the year.

So what is it you need to learn to be a really good Store Manager. 

• You need to know how to do everything in the store.  You shouldn't have to do everything yourself. But, if someone has a problem, you need to know how to help them fix it with out looking like a fool.   Being the go to person is always a plus in your favor.   It means you have the respect of your employees and coworkers as having the knowledge to help them solve problems at work. 
• Be Prepared.  This means always knowing whats going on in your store.  Read your memo's.  Make a plan of how and when your going to get the project done. 
• Years ago I was a Manager for a toy store.   At a Managers meeting the District Manager asked if anyone needed help completing the required resets on Schedule.  Half the Store Managers had not even begun. One Manager didn't know we had resets to be done.  I was the only Manager already done.  Needless to say I became the go to person to help everyone else finish.
• A Great Manager is organized.  This means making a plan every day.  It should be said that all plans are subject to change.  There is a difference between making a plan and what actually happens.  This is why plans change. Have a  back up plan.  Know what you will do if someone calls in sick.   How many people do you need to do a project and still run the sales floor.  Don't just move Betty to work overnight to do a project with out making sure Betty's daytime shift is covered. 
• Every day at the start of my shift I did the same thing.  I took a piece of paper and folded it in half.  On one side I listed everyone working in the store. I put down there positions , what hours they worked and when They should take a break.   I always knew who was supposed to be where and doing what.  I followed up though out the day to make sure  that everything happens as close to plan as possible.
•  Don't ever and I mean EVER have a employee come to  you and ask why didn't I get to take a lunch today! Unless there was some kind of emergency it was the Managers fault.
• Learn to be an expert on the products you sell.   Know what the customer wants and what makes you the most money.  If you have any control of the products you can order, use your knowledge to make a profit.  Don't just buy hot product if you cant make money on it.
• A good example is the Video game market.  Stores make almost nothing on the newest systems.  On the other hand the older video systems have a larger profit margin. Because they are older the manufacturers lower the price to sell out inventory.  But if you buy too many you could get stuck with more than you can sell.  Be an expert and you will know whats selling and whats not.  You have to sell the new systems to make customers want to shop in your store on the other hand you need to make a profit too.
• Learn how to motivate your employees. Be friendly, talk with them, get to know them.  But let it be known talking is fine as long as work gets done.  Let them know that when at work the customer comes first.  Make sure your seen helping out.  If your the kind of Manager who sits in the office and walks the sames floor with a clipboard, expect to be resented. 
•  The biggest complement I got from my employees is this.  " Wow I've never had a manager pitch in and help us do our work before."  Every time I got transferred or changed companies I heard the same thing.   I got their respect quick.
• I also let the lazy people know my favorite quote.  "If I have to do your job for you, then I don't need you."

The bad thing about retail and probably every other type of job.  Is that the business goes on with out you.   The question you need to ask yourself is can anyone do your job better than you?  Will they miss you when your gone?  Or can you be easily replaced?  

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Brand Building Your Company Name

Everyone knows who Walmart and 7-11 are. How about Whites Pharmacy or Pats Convenience store.  What have you done to build your Brand Name.  Do your possible customers know who you are. 

Many small retailers make the mistake of opening a store, putting a sign out front and hope the customers will just walk in.  If you have a good location, you will eventually get some customers who will check you out.

Word of mouth is the best advertising.  But if you don't have any customers, then there's no one to spread the word.  And their impression of your store has to be good or your just building a bad reputation and that will kill a store faster than anything else.

So how do you get the word out?   Advertising?  OK, what kind of Advertising? 

Many store owners make the mistake of taking out a weekly ad with the local newspaper.  They let the salesman talk them into an advertising program that's only guaranteed to make money for the newspaper.  Do your homework.   Follow these tips.

1. Know who your possible customers are.  Then target your advertising money toward those customers.  If your Whites pharmacy then you target doctors offices, day care centers, Senior centers.  If its Pats Convenience store your target customers are local businesses as well as people who live in the neighborhood. 
2. Is the name of your business simple and east to remember.  Does it describe your business.
3. Get your name out there for the least amount of money.  Get your name in publications that offer additional online advertising, such as a classified ad's.  
4. Have a web page?  A web page needs only to be a one page advertisement of your business.  A blog like this one works best and its free (Ask Me How?).  If a potential customers looks up "Rx in 12345 zip code"  and your name doesn't come up, you lose!
5. In store flyer's.  Had each customer a flyer with great deals in your store.  They don't have to be sales, just great deals or services you want to bring to the customers attention. 
6. Put your name, address phone , web site on your bags. 
7. Ask customers to join your mailing list, follow your blog or facebook page.
8. Donate to local clubs and get your name printed in club journal, newletters and promotions.
9. Have the local real estate office's (More than one in town) add your coupons, samples and flyers to new owner welcome wagon packages.
10. Team up with other retailers. If 5 or 6 retailers in a strip center join together in a promotion, you can reach more customers for your money.
11. Most of all Great Customer Service.  Its what brings back your current customeres and brings in new ones by word of mouth.  Don't be afraid to ask your costomers to spread the word about your store.

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How much Technology do you need to Aid in Retail Sales and Good Customer Service?

Customer service is the most important part of any retail store.  No service to the customer and no business.  Most Retail Store managers and small business owners would agree that some kind of technology is needed in the aid of customer service.  But it should only be used to aid in customer service.   Audio, video, and computer technologies help in the aid of customer service but they can't replace a real person. 

How many people have gone into a Super Market or Mega Mart Discount store and couldn't find a price. Twenty years ago you couldn't find anyone to get you a price.  Now there are price checkers all around the store, if they work.

Nothing is more important to any retail business then a trained customer service force.  Scripting can be a help full tool for young inexperienced sales people, but they need to know how to use it.  You don't want a robotic sales force just going though the motions.

Information is key to learning to do any job correctly.  Teaching your sales people how to respond to customers is key. They have to be knowledgeable about what they are selling.  They need to know if an item is in stock,  price, when it will be coming into stock, what other stores may have it, other items that are like it, how it is used and other items that may tie in for extra sales. That where a computer come in handy.  Being able to give a customer the information they need on the spot is key to winning over the customer the the time you come back with the information.  Make them wait and they may be gone by They also have to know why the customer wants the item and if its is the right item for them.

 Scripting is a good learning tool if it is used to teach a sales person but it need to be adapted by the sales person in the aid of learning what the customer wants and guiding them into buying it.  No one wants a Robot just  asking scripted questions. 

Recently I was ordering at a well known fast food restaurant.  The sales person asked me If I wanted my meal medium or large.  I joked with her that I wanted it small.  She answered it doesn't come small.  I joked with her how can that be, "Medium" means in the middle.   How can you have a medium with out a small? The sales clerk didn't get it because they weren't taught to improvise and converse with people as if they were people.   All they know is my manager told me to ask medium or large?

New technology maybe coming soon is, when you scan your item at price check you can get more information about it.  Some have suggested a audio or video being used to sell or suggest other items that tie in with your scan.  

Use technology to help train and aid, but never try to replace a well trained sales person.

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