WHAT DO I NEED TO OPEN A PROFITABLE RETAIL STORE ?

Planning on opening your first retail store?  Well I hope you are! 

Because if you fail to plan, your just planning to fail!

Many retail store managers go into business for themselves.  Only a few have the experience to be successful in the retail business world. 

If your planning to open your first retail store or your planning on expanding to two or more retail stores, you need to make a plan.  Financial planning is used for banks to see if your planning for success in that retail business venture.    But every thing you do should be planned out. Plans don't always work.  Sometimes you need to change plans. But winging it rarely works out well.  Unless you have won the lottery and can just throw money around, you need a plan.  Start with an outline and add details as you do your research.

Yes everyone needs some advice.  But, you if you do your homework you don't need to pay for it.  There are many places to get FREE ADVICE on how to open you first retail store.  Start here at The Retail Consultant.

    To be a successful store owner you need to keep and open mind, be organized and a strong leader.
What do you need to plan for before you can open your first small business retail store?   The following is an outlined list of things you need to plan before opening your first retail shop.

1. What kind of retail store do you want to open?
• What would you like to sell?
• What retail experience do you have?
• Location matters in what you sell in your store.
• What size store?
• Buy a franchise or start from scratch?
2. Money?
• How much money do you need to open and run my business?
• How much do you have?
• should you share the cost with a partner?
• Where do you get financing for a new retail store?
3. Location, Location, Location!
• Where?
• What size?
• Who are my customers?
• Who is my competition?
4. Permits, Licences and Taxes.
• What Permits do you need?
5. Design and Setup.
• How do I layout my retail store?
• How much merchandise do I need?
• What kind of fixtures do I need?
• What is construction of my store going to cost?
6. P.O.S. and Bookkeeping Systems.
• What is a POS system?
• What kind of POS system do I need?
• How much is it going to cost for a good retail POS System.
7. Merchandising?
• What kind of merchandise am I selling in my small retail store?
• Where do I get merchandise to sell in my store?
• How much merchandise do I need to start?
• What are the goods going to cost?
• What price do I sell the merchandise for?
• How do I keep track of Inventory?
8. Store Operations.
•  Who's working in the store and doing what?
• Human Resource Manual
• Store Operation Manual
• Merchandising Manual
• Employee handbook 
• Cashier training handbook and guide
9. Office Operations.
• Who's doing all the paperwork, payroll, and bills?
• Where am I doing the store banking?
• Who's doing the buying and pricing of the merchandise?
• Where am I doing my banking?
10. Marketing.
• Advertising and promotions.
• Signs, both outside and inside the store.
• Website and Social Media.
• How to tie it all together.
11. Making a Profit?
• Keeping good records.
• Think Shrink.
• The Bottom line of the P & L statement. 
12. Plan, Plan, and Re-plan!
• Go back to #1. start over and tweak the plan.

Did you know that not every retail store is a chain.  Some are co-ops and some are franchises.   Here's a list of places you can go to find a franchise retail store.

www.franchisee.com
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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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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!

Retail Business Terms Dictionary, Things All Store Managers Should Know

eWant to be a better retail store manager?  Then learn these important retail business terms.   Being Knowledgeable about your business makes you the go to person.  If your a newbie or a seasoned manager, knowing what everyone's talking about makes you a better manager, boss and employee.  Be respected and move up more quickly in your company.

Add on sale
Additional items customers buy due to in store sales persons suggestions or promotions.

Advertising
Paid message communicated through various forms of media and designed to influence the purchase behavior and thought patterns of the audience.

Allocation
Suppliers determination of how much of merchandise to assign to their customers.

Anchor Store
Also known as “draw tenant”, “anchor tenant”, or “key tenant”, an anchor store is one of the largest—if not the largest—store in a mall or shopping center. It’s usually a well-known department store or retail chain. Anchor stores are great neighbors to have if you’re a small or medium retailer. These stores bring in a ton of foot traffic into your vicinity, which opens up more opportunities for your business to get discovered.

Assets
Those items of value the company owns such as cash in the checkingaccount, accounts receivable, inventory, equipment, and property.

As is
Merchandise sold in its current, often slightly flawed, condition.

Back order
When an order cannot be filled because the products are notin stock, the order is left open until the goods arrive.

Balance sheet
Financial statement that shows the company’s assets, liabilities, and owner’s equity. The value of the assets must equal the value of the liabilities plus equity.

Base rent
Minimum monthly rent payments excluding pass-through, percentage rents, and all other charges.

Big Box Store
Its name pretty much says it all. A big box store is a huge square or rectangular shaped establishment, usually part of a major retail chain. Examples of such stores include Target, Home Depot, and Best Buy.



Book value
Net value of a company as shown on the balance sheets. In successful companies book value is often much less than actual value.

Boutique
Upscale shop designed to present usually expensive merchandise tailored to a specific customer mix.

Cash wrap
This is the main checkout area of a retail store. In other words, this is where shoppers head to when they’re ready to pay for their items. It’s where merchants set up their POS system and ring up sales. Most cash wraps even have shelves containing merchandise that shoppers can pick up on their way out.

CROSS MERCHÀNDISING

This refers to the practice of displaying or putting together products from different categories to drive add-on sales. Picture this: You’re at the grocery store browsing the liquor section when you see a pack of lemons tacked to the tequila shelf. This is cross merchandising in action. Groceries know that people often take lemons with their tequila shots, so they strategically placed the two items together.

Dead Stock
Sometimes called dead inventory, this is one thing no retailer wants to have, ever. Dead stock pertains to merchandise that has never been sold or has been in inventory for a while. Sometimes this is because a particular item is just seasonal, but other times it’s because the product simply isn’t in demand.
Retailers can get rid of dead or unmoving inventory through sales or donations, but the best way to deal with dead stock is to not have it in the first place. Analyze the demand in your market to determine the items that you should keep in stock. Also be sure to manage your inventory well and keep communication lines open between your sales and your purchasing departments.

Drop Ship
This refers to an arrangement between a retailer and a manufacturer/distributor in which the former transfers customer orders to the latter, who then ships the merchandise directly to the consumer. In other words, the retailer doesn’t keep products in stock. Instead, it sends orders and shipment information to the manufacturer/distributor and they will be the ones who will ship to the consumer.


Layaway
This is an agreement between the retailer and the customer in which the retailer puts an item on hold for the shopper until it is paid for in full. The consumer pays for the product in installments (interest-free), and will only receive the item once the payments are complete. The arrangement is a win for both parties. Layaway programs make it easier for the consumer to afford the products that they want, while minimizing risk on the retailer’s side.

Leveraged Buy-Out
An LBO is the purchase of a company using borrowed funds. The purchaser will use the company’s assets as collateral so they can get the loan to buy it, and they will use the acquired company’s cash flow (i.e. retail sales) to repay said loan.

Loss Leader
A known marketing tool in retail, a loss leader is an item that’s sold at a loss in order to attract more customers into a store. Once they’re inside, the retailer counts on the customer to buy other things together with the loss leader, thus generating profits for the business.

Markdown
Unlike limited-time sales or promotional discounts, a markdown is a devaluation of a product due to its inability to be sold at the intended price. The price of the merchandise is permanently reduced to move inventory and make room for new products.

Mobile Payments
This pertains to the services and technology that enable consumers to pay using their mobile phones, instead of traditional forms of payment like cash or credit cards. Mobile payment solutions come in many forms. These days, the most popular ones include NFC-based solutions such as ISIS or Google Wallet, and app-based solutions like PayPal.

Mobile Shopping
An increasingly common trend thanks to the popularity of smartphones and tablets, mobile shopping is the practice of purchasing goods or services using a mobile device. It’s almost like shopping online using a computer, only with a smaller screen. Mobile shoppers can complete their transactions either on a retailer’s mobile site or with the use of an app.

Mystery Shopping
This is an activity practiced by market research companies, watchdog groups, or even retailers themselves to evaluate product or service quality or compliance. The mystery shopper acts like a regular consumer and performs tasks like asking questions, submitting complaints, or simply completing a purchase like they normally would. They would then provide feedback or write reports detailing their experience with the retailer.


Niche Retailing
This term refers to the practice of selling only to a specific market segment. In other words, if you’re a niche retailer, you specialize in a particular type of product (or sometimes a few closely related ones). Niche retailers can afford to be more nimble with their strategies, compared to broader businesses because they cater to specific audiences. This enables them to easily identify market segments and deploy unique and more targeted strategies to address their market’s needs.
A good example of a niche retailer is Sunglass Hut, a popular retail chain that specializes in selling underwater party hats (strikethrough) sunglasses.

Planogram
This is a visual representation that shows how merchandise should be arranged on store shelves in order to drive more sales. It’s a model that indicates the best placement and positioning of your merchandise. Remember that product positioning can influence consumers’ purchases, so planning how they’re displayed and organized can maximize sales. Planograms can also guide and assist in store mapping and they enable retailers use space more effectively.


Pop-Up Store
Think of this as the offline cousin of flash sale websites. Pop-Up-Stores (sometimes referred to as Pop-Up Retail) are short-term shops or sales spaces that come and go within a given period of time. These stores can be set up in empty retail spaces, mall booths, or even in the middle of a park. Pop-up stores usually emerge unannounced, quickly attract crowds, and then either disappear or morph into a different store the next time around.

Relationship Retailing
This is a strategy that businesses implement to build loyalty and forge long-term relationships with customers. Relationship Retailing can come in the form of loyalty programs, personalized experiences, or superb customer service.

Self-Serve
In retail, this means letting customers select and pay for goods themselves, without requiring the assistance of a live staff member. Vending machines, kiosks, as well as self-serve checkout lanes in grocery stores all fall under this category

Shrinkage
This pertains to the difference between the amount of stock that you have on paper and the actual stock you have available. In other words, it’s a reduction in inventory that isn’t caused by legit sales. The common causes of shrinkage include employee theft, shoplifting, administrative errors, and supplier fraud.
You can prevent shrinkage by beefing up security in your store. Monitor customers, employees, and vendors/suppliers for suspicious behavior. Also have accountability policies in place to reduce human error, and do regular inventories especially when it comes to high-theft items.

Stock-Keeping Unit
More commonly known as SKU, this term pertains to the unique identification of a particular product. It’s used in inventory management and enables retailers to track and distinguish products from one another. A SKU represents all the attributes of an item, including style, brand, size, color, and more.

Webrooming
This is the practice of looking at products online before buying them in actual brick-and-mortar stores. It’s the opposite of showrooming, where customers look at products in physical stores only to buy them online. Image-based websites and social networks such as Pinterest or Polyvore help perpetuate webrooming. Users see items that they like while browsing these sites and then go out in the real world to test or try them on.

The Best Things to do are on Long Island

5 Low Cost Things You Can Do Now That Will Increase Sales!

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FREE SMALL BUSINESS ADVICE !
 

5 Low Cost Things You Can Do Now That Will Increase Sales!

1. Clean up the store 

• Get garbage off the floor, if your merchandising keep  it neat.
• Ladders and carts not being used should be put away.
• Floors should be  swept and washed.
• Shelves are straightened.

2. Re-merchandise the shelves.

•  Customers like it always looking fresh and new.  Move sections from one place to another. Pull them forward, make it look full neat and new.
• Customers will see items they didn't notice before. 
• Customers will stop shopping a store if they feel its going to have the same old thing. 

3. Use in store signs.

• Show the value to the customer even if its the everyday price.
• Just pointing it out pushes sales.

4. Good Customer Service.

• Be friendly and helpful, not pushy and annoying.

5. Get the word out

• Word of mouth is the best and cheapest advertising. 
• Have a good logo and make it visible outside your store.
• Use free website and social media.


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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 Not To Expand Your Retail Business

Tom the owner of a general merchandising retail store contacted me for some help.

After 5 years in Business he wanted to expand into a second outlet.  When he went to the bank for a loan, they turned him down.  Not because of the amount of business he was doing, but because of the lack of organization of his business. 

Image is the most important thing in a store.  It matters to the customers, vendors, employees and investors.  Banks only know what they see.  The fact that business is good and sales are up only means that there is potential to do even better if the store was organized.  Banks aren't going to invest in stores that show they can’t adapt to the change in business.  

Customers only shop in a store that's messy and unorganized for convenience.  If another store opened up nearby there’s a good chance Tom would lose a lot of business.  

My job now is to teach Tom an OK Store Manager, how to be a Great Store Manager!

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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Ways to Stop Shrink Casued By Your Employees

Employees cause to forms of shrink.  Paper shrink caused by mistakes and theft.  Here is a list of what you can do to control your shrink problem.  Set your self up with a Loss prevention program now before its too late. 

 Its everybody's  job to control Shrink.

1. Keep your store and stockroom organized.  Messy stockrooms are great places to hide things.  Employees take advantage of your organizational skills.  Don't be fooled by people who are your friends.  A good thief will use friendship to con you.  Everything has a place and if its out of place question why?   Your questions are a deterrent to employees.  They will know you will notice when something is out of place and think twice before trying to steal something.    If your stepping of merchandise, your creating shrink by damaging merchandise.   Lead by example, if you do it then your employees will do it.  
2. Check the Garbage before it leaves the store.  Do it in front of employees as much as possible so that they are kept off guard.  Hiding something to steal in the garbage and then taking out to the dumpster to retrieve later is very common with a thief.  Also I look for merchandise in small boxes that got accidentally mixed into the garbage.  I have often found cosmetics, stationary and other small items left behind and mixed with similar empty boxes.
3. Check that Price changes are done correctly.   Don't assume that because your told Price changes are completed that they are.  Follow up on your employees and they will be less likely to try and get one over on you.  Markup are more important then markdowns.  No one has ever complained at the register when things come up at lower prices.  Shrink happens when the register rings up higher price then marked on the box and the customer demands the marked price.  Now there is a difference between what your inventory price and what your actually sold it for.  Even .10 cents can per item can add up if not corrected right away.
4. Checks and balances.  Use daily record keeping inventories for high shrink items like electronics or cigarettes.   Check counts daily to what sold the previous day.  If employees know your checking they will be less likely to try to steal one.  From time to time let the employee do the inventory count and audit it.  Make them part of the team and they will become more concerned when mistakes are made and less likely to steal. 
5. Use Anti-Theft Deterrents.  Real or fake, they make a real difference.  If employees and customers know that they might be watched, they are less likely to steal.  Never tell someone that a silver dome in the ceiling doesn't have a camera inside it.  Signs and fake devices work as deterrents.  Having at least one working camera that you show working works even better.   
6. Teach your employees what to look for in customers and employee theft.   Let them know your looking and get them looking at each other.  The more eyes looking the less chances someone will try to steal. 
7. Hire the right people from the start.  Do an in depth interview. Ask the right questions.  Don't be afraid to ask, "Have you ever taken something that didn't belong to you".    If you don't ask you wont know! 
8. Check deliveries for correctness.  If your paying for merchandise your not getting, your losing money by shrink your inventory. 
9. Take yearly inventories of the whole store.  If your don't know what you have on hand in inventory you won't know when something is missing.  Your employees will know this and take advantage of you.  Make not causing shrink a priority to your employees.  Let them know what your expect and celebrate and reward beating that number. 

Over all the best thing you can do is just be concerned about shrink.  Let your employees know your concerned with out blaming everyone.  Because if your employees are stealing, your the only one to blame.

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15 ways how shoplifters steal from your retail store

Why Take The Time to Motivate Your Employees

Motivating retail store associates is one of the most important and toughest jobs of management.  The effects of a store where everyone is happy and works together is obvious.   Sales are up, shrink is down, low turn over of associates because everyone is happy and the store is making money.

When employees are unhappy with management they are more likely to do the following:

1. Have bad Customer Service skills
2. Work slowly and unproductively.
3. Steal merchandise, Money and or Supplies
4. Pass on merchandise to friends with out paying.
5. Not care when they see mistakes being made
6. Will not learn and take on more responsibilities with out getting more Money.
7. Call in sick a lot leaving more responsibilities on others, who in turn do the same.
8. Complain about the Job to Friends, Family, Co-workers and Customers.
9. Quit 

Over the years I've worked for with a number of companies.  I've heard the complaints, you don't want to work for that company.  With very few exceptions its not the the company that people have a problem with.  Its the store managers running them.   In some cases it goes back some levels of upper management.  But, in most cases its the people you work with every day that set the mood in a store.  

If you have a manager who sits in the office and barks out commands, then expect to be ripped off.  If your have a manager who is patient and explains why and how a job is done, then expect good results. 

Motivating a Team of Employees can be a little more complex than that.  Lead by being a good example to your employees and they will follow in your footsteps.

Unmotivate a team to work by playing cards with them in the back room and expect to be fired soon!

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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Is Location Important to a Retail Store?

Do Monkeys Swing From Trees?  Of Course Location is important to a Retail Store!

My very first retail job was working for my father.  You notice I said for and not with.  But, that's a blog for another time.  We sold Ladies shoes in indoor flee markets around New York City.  We had one in Brooklyn, New Jersey and Eastern Long Island.  

Each location completely different.  In Each market we had a different location inside such a corner booth or near the front door.  Each Market did a different volume of business.  Each Store paid a different amounts of Rent.  People would pay different amounts in completely different areas.   Some shoes sold better in different areas while some didn't sell at all.

My Fathers reasoning if your making money in three locations then the more locations you have, the better.  He reasoned flee markets are small time stores and he could do better in an actual retail store.  So he went all in and opened a store.

Here's where he failed!

He did no research.  He picked a location on a busy street. It had a Department Store across the street. 
A hardware store on the corner and the following stores between.  An Insurance agency, Real estate, Pizza place and a pharmacist. 

There was single car parking along the street and parking lots that no one knew about in the back of the store.  The Department Store had its own parking lot in the back with a rear entrance to the store.  So any traffic the store did, never made it to the street.  The traffic went by so fast and the store was so close to the street , no one ever saw our sign.

The Rent wasn't too bad just a little higher than the flee markets.  The biggest advantage to the store was we now had an actual office and storage space besides our home garage.  Cost involved in opening a store front vs another flee market booth really high!  Designing and furnishing the store alone can bankrupt you.  My father was so excited to have his own store he didn't care what kind of toys and gadgets he bought for it.  Equipment  we used to by used we were buying new. 

We did sales in a week what the slowest of the three flee markets did in one day.  So location is very important.  Planning ahead is also very important.   

Location ! Location! Location!



Location is very important but all things are relative to the magic word, Profit.  All things are relative to how much money you make there.   I've seen supermarkets close down in busy high scale areas because the rent ,competition and payroll costs were too high.  I  also have seen in that same supermarket chain a low volume store in a poor rural area make more profit than half the chain.  All things are relative.  If your rent is low and the payroll is low and your sales are ok you can make a profit.  If your the only store in town then you have a great location.  If your one of 4 stores you might not. 

Do some research and  planning first.  Don't just open a store for the sake of having a store.  Plan, Plan, Plan!

Only Fools Jump in with out looking first!

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The Importance of Good Customer Service In managing A Retail Store

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The Importance of Good Customer service in a retail store goes far beyond making that one sale to that one customer.

Here are 4 reasons why good customer service in a retail store will increase your business and bad customer service can put you out of business.

1. Make or increasing the Retail Sale.      
2. Return Visit by the Customer.    
3. Free Word of mouth advertising.
4. Controlling customer shoplifting.

Make the Sale

It is important to always greet your customer professionally.  Don't ignore customers when they walk by.  Just say hi, hello, how are you doing.  It lets them know you know they are there.  It is very important to be friendly but not scare off the costumers.   These customers are more likely to come to you when they need help. Be helpful but not an annoyance.   I always look at situations as if I was the customer. What kind of customer service do I want.  I hate it when I get asked 4 times by 4 people with in 5 minutes " Can I help You!".  My reaction is to turn around and walk out.  

If a customer can't find something and no one helps them.  Then you lost the sale.  It is very important to take study of your customers, if they look like they can't find something, step in ask if they need help.  "Are you looking for anything special?"

Be knowledgeable.  There is nothing worse than telling the customer I don't know where something is if you have it.  It means your lost the sale.  on the other hand after helping the customer find their item maybe you can suggest an add on item like batteries or French fries to the sale.

Return Visits & Word of Mouth Advertising

Getting a customer to return to your store and word of mouth advertising go hand and hand.  If you do a good job, the customer will want to come back.  If you do a bad job, they will never come back.  If they like your store a lot, then they will tell their a few friends and family about your store.  If they had a really bad experience in your store and left upset, then they will tell everyone they know every time your store is mentioned for the rest of their life about how bad an experience they had.  They might even write letters and go on Facebook to tell more people about how horrible the customer service was. 

It is a lot easier to lose a customer than to make a new one.  It takes over five new customers sometimes more to fix the damaged caused by one upset customer.  It costs a lot in promotions and advertising to make one new customer. It cost nothing to lose 5 in 5 minutes by giving really bad customer service.

Controlling Shrink

By this time you all think I'm crazy. What does good customer service have to do with controlling shrink? 

Good Customer Service is you first line of defense in fighting off customer shoplifting.  If a shoplifter knows they are being watched they are more likely to leave with out shoplifting. Take study of your customers. A professional shoplifter looks for opportunities.

 I hate it when I get asked 4 times by 4 people with in 5 minutes " Can I help You!".  My reaction is to turn around and walk out.

 You have to know the signs of a shoplifter.  It is easier and more time and cost productive to make a possible shoplifter not want to shop in your store.  Then it is to try to catch them. 

Have you heard security called to an aisle where a group of teens have gathered?

It's not just to let the employees know there are potential shoplifters in that aisle.  It is also to let potential shoplifters know their being watched.  This is where the importance of good customer service works to the advantage of store managers.

So remember Good Customer Service habits will make a customer want to shop in your store.  They will tell their friends and family to shop in your store.  Their children will get a accustomed to shopping in your store and continue as adults.  You increase your chances of making a lost sale and increasing the size of the sale.   You also decrease your the overall shoplifting in your store. Increase your Profits!

With bad customer service no one will want to shop in your store. They just come in to shoplift from you!

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Retail 101: What is Shrink and How Does It Affect Me?

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First a few definitions you need to know.

The definition of Shrink: refers to anything that can affect your bottom line and reduce, or "shrink" your profits.   Examples are, theft, paperwork mistakes, and product damages.  Bottom Line:  refers to the last line on the Profit and loss (P&L) Statement.  The actual net Profit.
P & L :   or Profit and loss statement is a bookkeeping document listing all sales then subtracts all expenses to give a total net Profit on the bottom line.

Loss Prevention Associate:  More than a Security guard this person is in charge of finding and preventing the loss of
profits due to shrink.  Some companies use the term asset protection or LP department.

Shrinkage of profits effect everyone.  Prices may go up to cover loses.  Too much and stores may report a loss and close. 

So what causes shrink?  Well there different types and thus different causes.  First you have to be organized.  Disorganization is the biggest causes of shrink!   You must keep good records and a neat store.  If you don't know what you had delivered and your stepping on merchandise in your back room, then  you won't have any idea of how much your losing.

 Mistakes on paperwork is called Paper shrink and can easily case a lose in profits. Here's just a few examples. 

• You didn't check the count on delivery and you were shorted merchandise. 
• The merchandise is marked incorrectly and selling for the wrong price.  This might make the customers happy, but not your bottom line.
• A Mistake on your bills causing you to pay too much. 

 All these are examples of Paper shrink. 

Theft by both customer and employee makes up the rest of the shrink.  In another post I'll go more into how to control shrink and deter theft through loss prevention techniques.  But I needed to say if you are disorganize your employees and customers will take advantage of you.  I see this as more of a problem then you think.

A lot of companies refer to their shrink as being a percentage of sales.  Example would be that they want their shrink to be less than 2% of sales.   So the question is other than lowering the shrink itself can you lower your percentage.  The answer is yes, RAISE SALES.  Raising sales and keeping your shrink dollars the same will lower your shrink to sales percentage.  

So how do you know how much money you lost to shrink?  Do a yearly inventory.  If you keep good records you should know how much merchandise is in your store. If you don't you need to take a beginning inventory and keep better records from today on.  Any shortage since your last inventory is called shrink! 

Starting Inventory + Merchandised Received - Sales = On Hand Inventory

On Hand Inventory - Ending Inventory = Total Shrink Dollars

Shrink Dollars / Sales = Shrink Percentage

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Where Do You Find Retail Management Jobs When Nobody is Hiring?

Someone is always hiring in retail management.  You have to have someone running the store.  You just have to know where to look the right retail management job.

In today's economy most companies have been making cut backs.  So they are doing with less Retail Assistant Manager and Department Mangers, but they can't do with out Retail Store Managers.  Some companies are down sizing so bad that they are getting rid of experienced managers in favor or lower paid less experienced retail store managers just to save a few bucks.

So where do you look.  Start at the usual places, the news papers and Internet job sites like Monster.com.
But not all Companies spend money advertising until they desperate for help.  

You have to go right to the source.  Check out those companies you think you'd like to work for and apply directly to them, usually online.

There are always job openings.  People get fired for all kinds of reasons.  Some get promoted and some demoted.  Some leave to go to other companies. While others retire after years of hard work.  There are away Retail Management Jobs. 

A lot of people are now looking or that second Job to make ends meet.  While more companies are looking for part time help to cut payroll costs.  If you have retail experience, why not look for a part time retail management job.  Smaller retails stores need experienced mangers to work the closing shift.  Someone who knows how to close down the registers and do a deposit. They can lock up and set the Alarms at night.  There is a growing amount of these positions that don't get advertised but are out there. 

Update your resume and hit the streets.  Some things just have to be done the old way, going from store to store.

What makes a good Retail Store Manager?

A good Manager knows whats going on in his store at all times.   He is knowledgeable and able to answer questions from  both customers and associates with ease.   A Manager plans, organizes and delegates.  They are a good teacher and is willing to get dirty showing someone how to do the job.
A good retail Store Manager keeps calm and takes charge when needed.  He's respected by his associates for his integrity and diplomacy.  Above everything else they lead by example!

They Lead by Example! 

Learn what it takes to be a  Great  Store Manager!