Professional Documents
Culture Documents
everything
A RETAIL MANAGER
NEEDS TO KNOW
As a contributing author
Confessions of Shameless Internet Promoters
Success Showcase Publishing, Tempe, 2002
The Modern Public Library Building – Managing Planning
Libraries Unlimited Press, Westport, USA, 2002
Stanley, John.
Just about everything a retail manager needs to know.
Includes index.
ISBN 0 9577362 0 7.
1. Retail trade - Management - Handbooks, manuals, etc.
2. Personnel management - Handbooks, manuals, etc.
3. Executive ability - Handbooks, manuals, etc. I. Title.
381.1068
Foreword
The prevailing nature of the The structure of the publication
international 'global village' economy provides for easy and prompt
is stimulating among people a comprehension of a diverse range of
heightened sense of enterprise and topics. Readers will be encouraged
entrepreneurship. Self determination by the challenges inherent in the
is appealing in an era in which long- questions which are posed, and
term security appears to be a thing of reassured by the guidance provided
the past. in the nature of the answers given.
At the beginning of the twenty- It is an original and innovative
first century, there are some 1.2 style which involves the reader in the
million businesses operating in learning process. The approach will
Australia, with a workforce of 8.5 foster personal development.
million. Significantly, the retail sector John Stanley is justifiably an
is the largest employer in the internationally recognised authority
marketplace, reflecting its on the broader discipline of retailing,
importance to the nation and, with specific skills in merchandising.
indeed, to the world. He brings to focus in this book his
Government initiatives are widespread first-hand experience in
fostering and promoting financial a manner which will accelerate
independence for all. However, learning. That will impact directly on
neither legislation nor regulation will the bottom line.
ensure success. The currency of the details
Common characteristics of most provided in the publication imply it
retail market segments include should be included in the
aggressive competitors, product management and staff development
parity, rampant discounting, short libraries of all retail organisations,
planning lead-times, and wafer-thin large and small. It should be, and
margins. Risk tolerance is low and doubtless will become, a constant
the scope for errors is limited. Minor reference source as differing
miscalculations can be terminal. circumstances and challenges arise.
Retail managers need external John Stanley is to be applauded
assistance, expertise, experience, and for writing the book. The reader will
creative input. Information sources be rewarded by making an
abound but, sadly, many are general, investment in securing this
generic, and lack local retail focus. invaluable resource.
This latest book by John Stanley is
timely and fills a void which is
conspicuous to many practising
retail managers. Retailers do not
have the time nor the inclination to
invest in researching the marketplace Barry Urquhart
for credible consultants and Managing Director
publications. In this book they find Marketing Focus, Perth
both.
service
................................................... 34
How to develop a customer
loyalty program .................................. 36
How to conduct a customer survey ...... 38
How to set up a customer forum ........... 40
FOREWORD ............................................ v How to increase your customer
PREFACE .................................................. x .......................................................
base 42
How to handle those complaints ........... 44
TESTIMONIALS ..................................... xii
How to ensure your team
is customer friendly ............................ 46
How to profit from your
PA system ............................................ 48
Winning over How to close a sale .................................. 50
your Customer How to gift wrap ..................................... 52
How to select and fill
How to attract the passing a shopping....................................
bag 54
customer into your ......................
store 2 How to farewell the customer ............... 56
How to promote your business
to children
.............................................. 4
How to promote your business
to Generation X customers .................. 6 Promoting
How to promote your business
to young adults..................................... 7
your Products
How to promote your business
to baby boomers .................................... 8 How to select the right media for
How to promote your business advertising
........................................... 60
to the older generation ....................... 10 How to use a direct mailer to
How to develop quality services promote product .......................
sales 62
for special customers .......................... 12 How to use ‘how-to’ leaflets
How to communicate your beliefs to sell more product ........................... 64
to customers
........................................ 14 How to plan an advertisement .............. 66
How to make sure your team How to write advertising copy
members look professional ............... 16 that...............................................
sells 68
How to make a positive How to promote advertised lines .......... 70
impression in ten seconds ................. 18 How to conduct a general product
How to use positive body language promotion
............................................ 72
to make the best impression .............. 20 How to use demonstrations
How to train your team to smile ........... 22 to sell product
...................................... 74
How to greet a customer ........................ 24 How to get the most out of
How to communicate effectively your booth at a trade show ............... 76
—and make the...........................
sale 26 How to produce signs that
How to sell features and benefits .......... 28 sell products
........................................ 78
How to remove a customer’s How to use a ‘cut case’ display ............. 80
doubt—and make the................. sale 30 How to use a dump bin .......................... 81
How to dummy-up your displays ........ 82 How to introduce texture into your
How to display products displays
.............................................. 127
to capture customer interest .............. 84 How to manage product placement
How to display products on pallets ...... 86 in your store ...................................... 128
How to maximise sales using How to use vertical merchandising
the floor of your store ........................ 88 to maximise your.....................
sales 130
How to build a profitable How to use horizontal merchandising
power product display ...................... 90 to maximise your.....................
sales 132
How to maximise your sales How to manage relays .......................... 134
using hot spots/end..................
caps 92 How to face products correctly ........... 136
How to use a wall of value ..................... 94 How to manage your product
How to become famous range
................................................... 138
for something ...................................... 95 How to get the most out of
How to manage cold spot selling best sellers
.......................................... 140
positions
............................................... 96 How to manage slow-moving
How to manage shelf filling ................... 98 products
............................................. 142
How to create theatre How to manage counter displays ....... 144
in your store
...................................... 100 How to manage stands
How to prepare your staff provided by suppliers ...................... 146
for the holiday..........................
rush 102 How to manage perishable
How to maximise your holiday products
............................................. 148
promotion
.......................................... 104 How to manage shopping trolleys ...... 150
How to sell concepts not products ...... 106 How to write signs that sell ................. 152
How to introduce a new How to manage signs in your store .... 154
product.......................................
line 108 How to write a known value sign ....... 156
How to set up a shop window ............. 110 How to write a non known
How to create movement value...........................................
sign 157
in your displays ................................ 112 How to use signs effectively ................ 158
How to use background music
in your store ...................................... 160
How to use aroma in your store .......... 162
Managing How to make best use of colour for
your Store effective merchandising displays ... 164
How to make best use of colour
for the store exterior ......................... 166
How to maximise How to make best use of colour
your customer ..........................
flow 116 for the store interior ......................... 168
How to improve your
‘first impression’ image ................... 118
How to improve your
‘last impression’ image .................... 120 Managing
How to keep your store clean .............. 122
How to walk the floor and your Business
talk to customers ............................... 124
How to manage your aisles .................. 125 How to develop a retail business
How to make sure your displays strategy
............................................... 172
are................................................
safe 126 How to benchmark your store ............. 174
In writing this book, the author aimed to provide a usable tool for
retail managers and students, a publication that would focus on
the day-to-day nuts-and-bolts of retailing and be free from the
distraction of theories and concepts. The extent to which the
author was successful in his quest is reflected in the comments of
the following leading retailers from around the world…
that you require, gain an understanding, been invaluable in the various stages in
and put that understanding into practice our organisation’s development.
almost immediately. I highly recommend This book highlights many of the
this book as it offers a no-nonsense leading best practices gleaned from some
practical approach to management— of the best retail organisations around the
ideal for today’s retail manager. world. It will be a useful reference
Bill Richardson resource for retailers in all positions of
Credit Services Manager Customer Service, Marketing, and
Australian Liquor Marketers (WA) Management.
& Johnson Harper
Perth, Western Australia I encourage you to challenge yourself
and your team to improve your business
Our all time bestseller! A book that Exactly the sort of desk-side reference
should be on every manager's bookshelf most managers secretly pray for.
from the first time manager to the CEO. Australian Institute of
Glenys Throssel, Manager, Management
Australian Institute of Management
Bookshop, Queensland One of the best investments I've ever made.
Gayle Ralston, Managing Partner,
This is the best management book of its Australian Medical Services &
kind that I have read. Personnel
Jim Kennedy AO, Chairman,
Queensland Investment …a constant and useful reference for
Corporation busy managers interested in staying
effective. It will make an impact
Here's an amazing litany of advice. because it is full of practical advice based
The Practising Administrator on common sense.
magazine Professor Michael Hough,
Department of Management,
I have witnessed at first hand the University of Wollongong
enthusiastic responses by successful
business people to this book. If you could choose one management
John Berry, Deputy Chairman, book only for your bookshelf, this would
Retail Services Ltd, Brisbane have to be it!
Lorraine Marshall,
I've been a long-time supporter of the National Marketing Manager,
authors' previous book… This book is Jones Lang Wootton
even better.
Sir Llewellyn Edwards, A secret weapon for those serious about
Chancellor, succeeding in management…
University of Queensland Lynette Palmen, Managing
Director, Women's Network
It cuts to the quick of management…It Australia
gives people ready access to concepts
and facts without any bullshit. It will Original. Interesting. Succinct.
spread across the world. A wonderful tool for any business.
Ann Whyte, Director of Learning, Cheryl Macnaught,
Morgan & Banks, Sydney Whittaker Macnaught Pty Ltd
Winning over
your Customer
Take time to make friends
before trying to make customers.
Elmer Wheeler
Consider landscaping
Management Memo
3 the front of your premises.
Ray Kroc, the McDonald’s
O ne day while on his way back to the
office from an important lunch in the
r of
best restaurant in town, Ray Kroc, owne
entrepreneur, was adamant that the 's chain in the Unite d State s,
the McDonald
few
exterior of his stores be landscaped asked his driver to pass through a
ed
to the highest standard possible. His McDonald's car parks. In one he spott
ht up in shru bs along the oute r
view was that customers would papers caug
judge the cleanliness of the store to a fence.
He immediately went to the nearest pay
large degree on the level of its phone, called his office to get the name of
the
landscaping. McDonald’s stores rely ager to offer to
manager, then called the man
on a large amount of perennial help him pick up the offen ding rubb ish.
in
foundation plants and very few Both the owner of the McDonald's chain
suit and the youn g
seasonal plants to create the right his expensive business
met in the car park and got down on
image. On the other hand, in the manager
r.
United Kingdom, English pubs rely their hands and knees to pick up the pape
As managers we are frequ ently more in-
on seasonal plantings to create a terested in the activity inside our busin
ess
more colourful image. These need ing's outsi de ap-
premises than in the build
more care, and do much to make the appe aran ce of your build ing
pearance. The
pubs stand out from other premises. and its surrounds is at the front line of your
organisation's public image—as Ray Kroc
1
Make your external signs was well aware.
4 meaningful and
readable.
On the outside of your premises, you Don’t forget to include,
need to state who you are (and most prominently, a street number to
of us need to say what we do— ensure the Post Office and searching
exceptions being such well known customers can readily identify your
organisations as McDonald's, Shell premises.
and Harrods).
Advertise your
Buildings need signs that are
clean and simple. Signs usually
include words, trademarks, and
5 company—not others.
Remember: you’re selling your
logos, and they should be displayed store—your brand, your business.
in keeping with the tone of the street Do not minimise your organisation’s
and overall image of the business. importance, as many businesses do,
They must be readable, using a by promoting the brands of other
typeface that can be easily seen by organisations. Too often a retailer
pedestrians and people passing in will do an excellent job on the facia—
vehicles. Focus on simplicity and and then spoil it by putting up the
boldness—over-decorated signs are signs of their suppliers. Such signs
often not read. The total size of the should go outside that supplier’s
sign will be influenced by local place of business or next to the
council regulations as well as supplier’s products in your store—
company standards and financial not on the outside walls of your
considerations. premises.
Children are arguably the most influential group you could target as
a retailer. Importantly, they are frequently the key player when it
comes to decision-making within the family. For example, many
families eat at McDonald’s Restaurants simply because the child has
been the decision maker. Yet, often, many businesses fail to
encourage children as customers; indeed, at times they go out of
their way and actively discourage them. But children, as customers
of tomorrow and decision makers of today, are a vital focus group…
How to communicate
your beliefs to customers
Total no. of
customers
Selling (S)
duties (A)
Break (B)
Team Member Comments
Ancillary
Pot plant sleeves available
in store
Idle (I)
➧
➧
e.g. Food
Shelves clean 1
Floor clean 2
Product clean 3
Counter clean 10
Food preparation area clean
Waste bins empty (b) Convert the information gathered into
Signage relevant a graph. See a possible outcome
Food fresh, well displayed provided below. By referring to the
Linked sales obvious completed graph, you will obtain an
Impulse purchases obvious overall picture of the working status
of your staff for that day, in particular
Walk the floor who is actively selling and how
3 with your checklist.
Apart from the quick visual check
ineffectively others of your team are
involved. You can then reprogram
your team timetable to ensure staff are
that should take place every morning available to serve the customers at
before the front door is opened, a vital times of the day.
much more thorough check should
No. Customers in Store
50-
take place at least twice a week. Your
formal checklist will prove 40-
20-
Monitor what team
4 members are doing.
10-
TIME 9.30 10.30 11.30 12.30 1.30 2.30 3.30 4.30 5.30
When customers enter your store, 1- S
S S S S
No. Staff and Allocated Activity
5- A
record, and analyse how the team is B B A
6- I
performing: 7- I
I
(a) Record your observations regularly 8- A
B
throughout the survey day on a 9- B I B
customer/team ratio survey sheet. A 10-
typical example follows: Key: S = Selling; A = Ancillary work;
B = Break; I = Idle
Every retail manager will know that they want team members to
smile when greeting a customer. But smiling is supposed to be
primarily a biological function. Smiling occurs naturally. Yet still
many staff members smile reluctantly. The secret for retail
managers is really quite simple: if you want your team to smile,
you need to create a culture where people want to smile… and
that may warrant a training program—for management, or
team, or both.
Use a competent,
8 must smile.
6 fully qualified trainer.
Your business has internal customers
(all your own people in their varied
To maximise your investment in roles) and external customers (the
training, you should employ an public, suppliers, maintenance
experienced trainer, not simply a people and so on). All your team need
presenter. Presenters offer their own training in friendly customer service
views on how to improve. Trainers to deal with all your customers.
US research claims that 70 per cent of people start their working life in
retailing—yet only 3 per cent of them really want to be in retailing. In
other words, the vast majority of them are reluctant starters when it
comes to retailing as a career. Little wonder then that, despite the
volumes that have been written on communication, customers
come across indifferent communication skills in stores. As well, we fail
to train newcomers to communicate effectively. Perhaps the
following advice will help…
of the purchase.
Management Memo
Day 5—a telephone call may be in order.
Never start the telephone call with ‘Are T he 25 attributes of a good business-
customer relationship, ranked in order
of importance by long-lasting customers:
you happy with…?’. If you do, you may
get a negative response. Start with, 'I Being called back when promised
wanted to telephone you to make sure Receiving an explanation of how a problem occurred
you were enjoying…’. Being provided with information on how to contact
relevant people
Day 15—check again over the telephone. Being contacted promptly when a problem has been
Day 30—mail an added-value gift related resolved
to the purchase. Being able to talk to someone in authority
Being told how long it will take to resolve a problem
After 90 days, and every 90 days Being given valuable alternatives if the problem
thereafter, they should receive your cannot be solved
newsletter as a loyal customer. Being treated as a person, not as an account number
Being told how to prevent a problem in the future
Being given progress reports if the problem will take
Make people remember
4 you as a salesperson.
People do business with people, so
some time to resolve
Being able to talk to people without interruptions
Not being put on hold without asking
Being treated with appreciation for their business
your aim must be to build a person- Having a person, not a recording, answer the
to-person relationship, not a telephone
relationship with the business. To do Being given service people’s names and telephone
numbers
this, you need to make a lasting Getting through to a department on the first call
impression. Depending on your Being offered suggestions on how to minimise costs
business, consider such strategies as… Being able to talk, on the first call, to someone who
can resolve a problem
• Always hand your business card to
Receiving an apology when an error is made
the customer, preferably one with Being helped without being put on hold
your photograph so that the customer Having the telephone answered on the third ring
is reminded of what you look like. Being greeted with a ‘hello’ or ‘good morning’
• Send relevant newsclippings, articles Being able to reach the service area after 4pm
or new information on the product as Being addressed by name
and when it becomes available. Being able to reach someone after hours. 15
• If the person is interested in joining a
club that relates to the product, then
policies that outline achievable
introduce them to a club member.
• Send birthday or anniversary cards. strategies and embrace a constant
These work more effectively than program for training team members.
Christmas cards which get lost in the
Instigate a reward
volume of other cards received.
• At Nordstrom in the United States,
individual salespeople keep profiles
6 system.
Team members, as well as customers,
on their specific customers, enabling
them to match new products with
need recognition for building
relationships and you need to put in
identified customer needs/wants.
place a reward system for your team.
Rewards can be low cost, but show
Have written policies that
5 everyone adheres to.
Too many businesses fail because
that you value the dedicated team
member. Consider everything from
tickets to the movies, to dinner for
they are not consistent. Consistency two at a local restaurant, to
comes with having realistic written enrolment in a keep fit club.
Just about Everything a Retail Manager Needs to Know
FOREWORDCONTENTS PREFACE TESTIMONIALS
AUTHORS
34
CUSTOMER SERVICE See also: 32, 36, 44, 218
How to improve
your customer service
grammar, pronunciation
of when and how to load cars, since ■ ■ ■ ■
QUESTIONS
12 per cent of customers complained Use of open, closed and leading
about this lack of service. One added questions
touch is to provide boot liners LISTENING FOR NEEDS ■ ■ ■ ■
Posture, attention, showing for
emblazoned with your name— understanding, identifying needs
customers appreciate that you have and/or wants
taken that extra bit of care. KNOWLEDGE OF SUBJECT ■ ■ ■ ■
Facts, information, personal tips
based on experience
Don’t patronise
8 customers.
REASONS FOR BUYING
Benefits, advantages to customer
■ ■ ■ ■
■ ■ ■ ■
One in ten customers resented OBJECTIONS
patronising and condescending Recognised, handled tactfully,
assurance given, converted into
treatment from team members. The reasons for buying
great majority of surveys conclude USE OF SALES AIDS ■ ■ ■ ■
that staff-customer interrelations lie Use of product, quality and
ingenuity of sale aids
at the heart of customer complaints
ORGANISATION ■ ■ ■ ■
about retail outlets. For this reason, Opening, development, specific
regular training sessions on human answers, close of sale
relations should be an essential part ALTERNATIVE PRODUCTS ■ ■ ■ ■
of all your staff development Use of link (tie-in) items
and/or alternative products
programs.
How to develop
a customer loyalty program
Write to your
6 Keep your staff informed.
7 customer guests.
After the forum, send an internal Write to your customer guests and
newsletter around your sales team thank them for their time and input.
within a day or two. Your staff will Highlight what changes you will
want to know what has happened. introduce into your store as a result
Keep the message positive. If you of the session. Make sure you act
have any negative feedback about upon your promises immediately,
individuals, this should be addressed because, as involved customers, they
in private. At your next team will now be looking to see if those
meeting have a session which changes actually take place in the
focuses on feedback from the store.
Empathise with
Management Memo
4 the customer. A complaint is a ‘gift’ to your business
and should be treated as such. Too
Empathy is putting yourself in your many businesses take a negative view of
customers’ shoes and seeing the complaints, when in fact they are a positive
situation from their perspective. The opportunity to build your business. Consider
key is to ask how you would feel in this eight-step formula for dealing with com-
their position. Again, it's important plaints:
1. Always say thank you
to actually show the customer that 2. Explain why you appreciate complaints
you are empathising—by actively 3. Apologise for mistakes made
listening, rewarding and 4. Promise to do something about it immedi-
acknowledging. Showing empathy ately
does not mean you agree, but you 5. Ask for the necessary information to solve
must be genuine and use positive the problem
body language. Use empathy 6. Correct the mistake promptly
7. Check the customer is satisfied
statements such as: 8. Prevent the mistake happening in the fu-
‘I can understand your ture.21
disappointment.’
‘You were right to let me know.’
‘You did the right thing in
Resolve the problem.
returning the item.’
‘I know how you feel.’
6
Resolve the problem to the
Seek clarification customer’s satisfaction as quickly as
5 through questioning.
Ask open questions as you attempt
possible. Consider the lifetime value
of the customer, not the cost of
resolving this particular issue. Once
to diagnose the problem and never
the problem has been resolved, make
attempt to justify your situation. The
sure the rest of the team knows what
customer is not interested in your
has taken place. This feedback to
problems and justification may just
staff will help your team deal with
make them angry.
similar situations in future, perhaps
When dealing with complaints:
provide you with additional ideas
DO Listen. for the next time, and help you to
Isolate the problem and take appropriate action to ensure this
restate it. complaint never resurfaces.
Make the complaint a
positive opportunity for
your company.
Know your subject.
DON’T Interrupt.
Argue.
Evade the issue.
Lose your temper.
Reintroduce an objection
that has been dealt with.
The retail trade is often in the firing line over low levels of customer
service. A recent public opinion poll found that Australians were
'concerned and bothered' about AIDS and nuclear war—
followed by the rudeness of shop assistants! A Time magazine
survey discovered that 85 per cent of customers felt service could
be improved, and in their book The Customer, Bob Ansett and
John McManamy condemned our service policy. The message is
clear: we must become more customer friendly…
The point at which you ask the buyer for an order is the close.
Much of the effort in planned selling is wasted if you fail to
close the sale effectively, so it is evident that attention to the
close is vital to your success…
Ribbon
Selecting the best ‘carry home’ system for your customers is becoming
a major issue in retailing. We need to be aware of the cost involved,
customers' needs, environmental concerns, as well as the best means
of looking after the product safely. But whatever system is used, if the
shopping bag has been packed poorly, the resulting negative reaction
could damage your business reputation. Considerable thought should
go into the selection and filling of shopping bags, and your staff need
to be trained to handle this task correctly…
Promoting
your Products
Don't sell me clothes. Sell me neat
appearance, style, attractiveness.
Don't sell me books. Sell me pleasant
hours and the profits of knowledge.
Don't sell me tyres. Sell me freedom
from worry and low-cost-per-mile.
Don't sell me things.
Sell me ideals… feelings…
self-respect… home life… happiness.
Sears Roebuck & Co.
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
must plan well in advance. ○ ○ ○ ○ ○ ○
Radio—Local radio and community radio
are becoming more and more popular. Management Memo
This is a useful medium to consider.
Posters—Often linked to major
advertising campaigns.
I f you advertise in newspapers, less than
2 per cent of the readership may be inter-
ested in your product. Therefore, newspape
Street benches—Useful in high traffic r
advertising must provide impact if it is going
areas. The message should be rotated to be cost effective. 28
every few months.
Public transport advertising—Moving
messages on buses, trains and taxis
must be simple, bold and short. Get
them right and they work. monitors such standards.
Television—Regional television is very Regulations on advertising vary
cost effective. Only large retailers can from country to country, but the
afford metropolitan television. Ask following guidelines should always
your local television station; their
advice is valuable. be adhered to:
Sponsorship—Always sponsor local • Advertisements should be legal,
events attended by your target decent and truthful.
audience. It gives credibility to you as
a neighbourhood retailer and one of • Advertisements should be
the ‘local good guys’. prepared with a sense of
Parking meters—These work in the United responsibility to the consumer and
Kingdom: over 35,000 meters are used society.
by 5.5 million motorists a week.
• Advertisements should conform to
Point of sale display—Remember, internal
advertising is always more cost the principles of fair competition.
effective than external advertising.
You know you will hit your target. Monitor the penetration
And the list goes on. 6 cost of advertising.
It’s important to look beyond the cost
○ ○ ○ ○ ○ ○ ○ ○ ○ ○
• Time saving tips ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
• Fun ideas
• Did you know...? Management Memo
arresting
dvertising is the science of
Pay attention
8 in the store.
6 to legibility.
Ensure that people can easily read
Don’t place your leaflets on the
counter where they will soon become
untidy. Leaflets need stands, and
your leaflet. The most easily read these are best positioned near the
typefaces are serif-based, i.e. letters counter where your team can use the
with small feet (or serifs) such as this leaflets as an ‘added-value’ tool. An
typeface, while sanserif typefaces alternative is to place the leaflets next
(those without serifs), such as the to specific products. So, you’d place
heading above, are best used for a cheese recipe leaflet next to the
headings and signage. Research by cheeses; and a garden container
the Newspaper Advertising Bureau leaflet next to the containers.
of Australia supports this.
Train your staff
How to conduct
a general product promotion
Play it safe.
Second, remove the top lid of the
box and turn it over and place it
3
You need a very sharp knife to cut
alongside the remainder of the box: through cardboard—a ‘Stanley’-type
knife is recommended. Don’t cut
deeply into the box—if you do, you
will damage the products inside.
Remember, safety first. Protect
yourself when cutting. Always cut
away from your body and your other
Finally, move the central sleeve hand. Don’t leave open knives around
from around the centre of the box to for other people to hurt themselves.
the top layer of product. Squeeze the Finally, displays can end up quite tall,
sleeve and transfer the top layer of and for this reason it is important that
product to the top lid. You now have you build them securely so that they
two display boxes from the same box. do not put customers or staff at risk.
Genuine
products
Don't forget the magic.
8
When using boxes and similar items
to dummy-up your displays, cover
Consider using
6 artificial products.
these with coloured paper, hessian or
some other material. Customers
Many suppliers now provide realistic want to see the magic of retailing,
looking replicas which can add a not the mechanics. And they do not
splash of colour to your displays— want to see how you build your
particularly food displays. These displays—so work on them at night
accessories include artificial fruit, or behind a curtain and allow the
vegetables, vegetable and fruit final exhibit to be a surprise.
Pallets are used for bulk displays to give the perception that the
consumer is getting a special price because the retailer has
purchased the product in bulk. Pallets can be used in outdoor
and indoor locations, but a handling system, usually a hand or
mechanical pallet jack, will save a great deal of cost in terms of
employee time and labour. Pallets traditionally were made of
wood, but plastic versions are now available.
▲
height of one metre and a maximum viewpoint
of two metres so that the products
are at the correct shopping height for
the consumer. Of course, the weight ▲
Faced
and nature of the product will mean bag/s
that some items must be displayed at
lower heights. Products must be
stacked safely, due to the height of
the pile and their weight. For the
majority of products a brick-lay
Provide point of
pattern is the most secure. 3 purchase information.
First layer Second layer Generally, retailers do not use point
of purchase material as effectively as
they should. For maximum effect,
signs with relevant sales and product
information should be placed on
special stands—not simply (and
Face bagged products
2 in front of pallets.
Large bagged products are
often untidily) taped on to products
facing the customer.
Where you have a gap in the
commonly displayed on pallets. centre of the product display on the
Sales can be increased by placing a pallet, it is far more impressive to use
bag or two in front of the pallet a stand, placed on the pallet, with the
Management Memo
display on a rectangular base of
either product or a ‘dummy’ base
and, to maximise sales, make sure T he Russell R. Mueller Retail Hardware
Research Foundation carried out re-
search in the United States to judge how
the customer’s eye hits the middle of
profitable power displays were for businesses
the display. that built them critically. The research showed
Eye
▲ that sales of that product increased by 540
per cent!
This figure was achieved by taking a prod-
uct from a relay merchandise position and
placing it in a power position. The price
stayed the same, only the position changed.42
Make sure your display
5 is well signed.
Your display is incomplete without a customers and staff
sign which should be dramatic and • checked every day to ensure it
obvious, stating clearly what the reflects the image of the company
product is and its price. Other • dismantled immediately the
information may also be relevant. promotion is over, and replaced
Refer to ‘How to write signs’ (p. 152). with the next promotion.
Every store has its hot spots—positions that the majority of your
customers’ eyes unavoidably focus on. Traditionally they are at
end caps—those prominent locations at the ends of relays. The
more hot spots you can create, the more sales opportunities you
can achieve. Hot spots should be positioned in every product
category in your store and your team should always be aware of
products on display in these positions. To maximise the potential
of your hot spots, be aware of the following points…
Do not be shy
Urquhart emphasises that in the
future you'll have to dare to be 4 about your strengths.
different. You'll have to think and act Too often retailers establish the range
‘outside the box’ so your store is that they are famous for, but fail to
noticed by the consumer—in a let the customer know. Assumption
positive way, of course. This means is one of the leading failures in
creating adventurous services, business. Never assume your
displays, staff costumes, and total customers know what you do.
experiences for your potential
customers. Brainstorm ideas
Seek fame—
5 with your team.
3 and fortune will follow.
To be a destination, you have to
Being different and famous takes
team commitment. Believe in the
concept. Involve all team members.
Just about Everything a Retail Manager Needs to Know
FOREWORDCONTENTS PREFACE TESTIMONIALS
AUTHORS
96
96
COLD SPOTS See also: 112, 116, 160, 164, 168
How to manage
cold spot selling positions
Face up items
10 you’re saying to the
7 not replenished.
You won’t be refilling every product
customer.
When the job is finished make sure
all shelftalkers are next to the correct
on the shelf, but you should face up products. A frequent mistake in
items that are not being replenished. many stores is to fill the shelf—and
Take the remaining items on the then forget to realign the shelftalkers.
shelf and move them forward to give This can cause customer confusion
the impression that the shelf is full. and may result in lost sales.
Build theatre
2 around events.
FEBRUARY 1.
MARCH
2.
1.
2.
1.
2.
1.
2.
Theatre displays should revolve APRIL 1. 1.
around international, national, 2. 2.
How to maximise
your holiday promotion
Christmas is that one time each year when a business can attract
shoppers who would otherwise walk past the store. For most
people, Christmas shopping is a chore, and any retailer who can
successfully promote their business will attract more customers at
this festive time—and, importantly, generate more sales.
Make Christmas
2 Create atmosphere.
4 special for customers.
Focus on all the senses to make an Jurek Leon, of Terrific Trading,
impact on the Christmas customer: provides a host of ideas to help
Promote. Promote.
6 Promote.
the team about it.
Give any new product maximum
exposure. Take any opportunity you • Give a talk to consumer groups
can to promote the new item. Here about the product.
are some useful ideas that have • Cross network displays of the new
worked in the past: product with other retailers in
• Send a complimentary sample to your area who do not sell the
your favourite radio or television same category.
newsreader or chat show • Write about it in relevant hobby or
presenter. special interest magazines.
• Have a demonstration outside • Have your staff use it themselves
your store, a strategy that works so they can say, with complete
exceptionally well in shopping honesty, ‘when I first used it…’.
malls. • Send out flyers in your catchment
• Forward an article and a area.
photograph to your local
newspaper. Select new product lines
• Send a complimentary sample to a
local celebrity or expert in the
7 carefully.
The world is full of new products
product field, such as the that fail. This is primarily due to the
gardener, hardware specialist, or manufacturer not doing sufficient
cook, who writes a guest column homework. Select new products
in the local newspaper. with caution. Do not buy because it
• Ensure a team member takes it is new: buy because it is proven and
home, uses it, and reports back to fits your targeted customers.
The small shop was once the workplace for family-run businesses.
Large windows were put ‘in the front’ to provide more light to the
cobbler or weaver who worked in the front room. As businesses
evolved they started selling from the front room and the window then
became an area to display products. At the same time a facia was
erected above the window to promote the business. Thus were the
origins of today’s shop window. Its aim—to grab the customer’s eye
and to promote the business, products and services…
Remember:
Movement + Interest = Sales
helium balloon
nylon cord
Nylon Cord
Managing
your Store
The art is to be where the ball is going to be,
not where it's been.
Sam Walton
founder of the world's largest retailer, Wal-Mart
How to maximise
your customer flow
Retailers would like to get 100 per cent of customers to see 100 per
cent of their product. But recent research into one retail sector in
the United Kingdom found that 75 per cent of customers only saw
a maximum of 20 per cent of product. Imagine how sales would
improve if the customer flow encouraged all customers to see all
product. Your aim should be to direct customers around your store,
with clear direction, and the following suggestions will help you to
maximise that customer flow…
Bounce customers
3 around your store. design. Positive, appealing sightlines
Your aim should be to encourage will draw customers around your
movement of customers throughout store. Sightlines should use colour,
your entire store. The placement of
products or departments is the key to
doing this. Here’s how…
Review your customers’ shopping
lists—what are the most common
items purchased? It is these that you
should place at regular intervals
around the store. In this way you Counter
force customers to visit all parts of
the site. For example, consider the Critical sight lines throughout the store
strategic placement of the following
basic shopping list items—often lighting, and product effectively to
referred to as ‘anchor’ products: attract the customer throughout the
1. Milk 4. Toilet paper store.
2. Bread 5. Detergent
3. Sugar 6. Coffee Develop destination
5 departments.
Entice customers to various parts of
the store by developing and
strategically placing destination
departments in the corners of your
store and at the furthest points from
Counter
the entrance and exit. Promote these
departments and become famous for
them—The Power Tool Department
Maximise the use
4 of sight lines.
Sight lines are essential in all styles
(hardware store), The Seedling or
Bedding Plant Department (garden
centre), The Ski Department (sports
of layout, but are far more important clothes), The In-house Deli
in a boutique layout than in a grid (supermarket).
one product, and no more than three, Take advantage of their customer
at the counter that might be appeal. Place them in a sight line.
proactively promoted by a person at • Merchandise consistently: do not
the checkout. The key is to find a alternate. Customers only go
product that the majority of people through one checkout per visit.
want or need at that particular time. • Focus on your program, not your
We tend to underestimate the value fixtures. Think ‘Categories and
of the counter as a profit centre. Merchandising’ first— then select
fixtures that accommodate your
program.
Have a specific
5 management policy • Emphasis in-store maintenance.
Assign one person to the
at the counter. responsibility of maintaining the
Australian Supermarketing magazine checkout area.
provides the following guidelines:
• View the checkout as a separate Stress the need for
profit centre. Recognise it is one of
the more important departments in
6 consistent housekeeping
the store. at the counter.
• Use the ‘space to share’ method to It is critical that the checkout is kept
allocate space. Assign space to clean and tidy at all times, for last
categories based on their sales and impressions are lasting impressions.
profit contribution in a particular Accordingly:
season, e.g. chocolate bar sales • Do not store products at the
increase during cold weather and checkout.
therefore require more promotional
• Keep the checkout dusted every
space at this time.
day.
• Take full advantage of the sales • Do not clutter with coffee mugs,
potential of confectionery and litter or irrelevant products.
magazines which account for 78 per
• Never eat at the checkout or in view
cent of checkout volume.
of customers.
• Merchandise similar items together, • Never leave traded-in or returned
thus making it easier for your products sitting at the counter.
customers to locate what they are
looking for. So, for example, • Check counter three times daily.
position batteries next to battery- Image is the name of the game.
powered items. Every customer sees your checkouts.
• Put your best sellers in the best Be confident that they leave a good
locations within their categories. impression.
wants, quality, benefits, and service. ✖ 'Purpose products' positioned to bounce customers
If you are not a price-motivated around the store.
business, then you should be placing
non known value products in the Browse products.
sight line. Browse products are those items
where customers need time and
Purpose products. space to make a buying decision.
Purpose products are those on your Common browse products include:
Making vertical
2 merchandising work
for you.
Adherance to some basic rules can
▼ ▼ ▼ increase your sales through vertical
merchandising:
But, within the vertical presentation,
there are advantageous positions for • On the premise that you cannot
products. Research shows that the sell air, construct your shelving to
majority of products sell at a sight- provide the minimum gaps at the
and-take position. The sight-and-take sight-and-take level. Whenever
position is between chin and navel of you identify gaps, fill them as
the average-height shopper. The soon as possible or, if you do not
typical customer in most retail stores have adequate stock to fill the
is a woman, which means that the gaps, space the product evenly
sight-and-take position is between across the category. Leave no air.
150cm and 180cm from the floor, and • Topical and seasonal products
Be aware of security
4 and size of stock.
Security and size of stock must be
considered when positioning stock
on shelves. For example, in retailing
the greatest amount of stealing
occurs along cosmetic aisles in
supermarkets. These products need
COFFEE
TEA
OTHER HOT
DRINKS
Management Memo
g fresh prod-
ome points on merchandisin
S uct, using horizontal merchand
niques:
ising tech-
layed in family
• Produce should be disp
groupings.
to maximise the
• Colours should be used
effect.
bench should be
Octagonal units are practical and • The level of fill along the
interesting displays for shrubs, alpines consistent and eve n.
d to ‘sell!’ the
or other merchandise according to • Price tickets should be use
season. They can be made with or product
materials create
without a point of sale ledge, irrigation- • Supplier point of sale
er informa-
carrying structure, and mesh interest and provide custom
windbreak. 59
tion.
Consider corporate
4 company blocking.
This is where the manufacturer
services that consumers perceive to
be inter-related’, e.g. breakfast
department, the bathroom, or patio
decides how their product will be
garden. When laying out a category,
displayed (often called ‘book and
consider the following:
order’ category management).
• Segmented share of each product
The advantage to the retailer is
within the category (% sales of bath
that the manufacturer will provide rugs versus shower caps)
the full merchandising kit and total • Trends within the category (colour,
professional backing by the supplier. style)
The consumer can easily find • Trends in your local marketplace
• Publicity and promotions for specific
promotional products and gets a
products, e.g. in lifestyle magazines
good feeling about the image of the read by your customers
store because of the professionalism • What you want to promote.
of the presentations.
Establish rules for product
The disadvantage is that the
retailer relies on the company
representative (some are excellent,
6 presentation.
Set a standard for presenting
others are variable). The products on shelves and ensure that
manufacturer or supplier has a all staff are aware of the need to be
monopoly on the position and if consistent in meeting these
retailers are not careful, they may guidelines. For example:
become overloaded with stock. • Position price tickets uniformly.
If manufacturers or suppliers are • Face all products the same way.
developing corporate company • Ensure all products are spotless.
blocks you may also find that as a • Keep the shelves clean.
• Remove damaged products
retailer your return is lower, as the immediately.
supplier will take a larger return. • Maintain all products within date
codes.
Focus on… when laying • Position all products correctly.
5 out a category.
• Leave no gaps visible along the shelf,
especially in the sightline.
A category is a ‘distinctive • Allow no gaps between shelves,
manageable group of products or especially in the sightline.
Each product category in your store has a best seller. The product
will not necessarily be the cheapest or lowest gross profit item, but
it will be the favourite product purchased by your customers in
that category. You can use the best seller concept to your
advantage if you introduce some simple management
strategies…
Customer flow
How to manage
slow-moving products
The counter or checkout area is a key position in any retail store. It’s
a location visited by every customer. Unwisely, many retailers look
on this facility as the final port of call for a customer who has
already decided on a purchase and sees the counter as a position
where the only operation that needs to take place is the transfer of
money. But the counter also provides an opportunity to sell and
reinforce your store's image…
Do not clutter
4 the counter. calendars, notes to staff, schedules,
The biggest mistake made by many memoranda, price checks, and other
retailers is that they forget about the irrelevant pieces of paper.
importance of image at the counter.
Over 20 per cent of customers will Make somebody
remember, as a lasting impression,
the counter area above all else in your
6 accountable.
Put someone in charge of the counter
store. For that reason alone, it must
and make them responsible for
be kept uncluttered, clean, and tidy.
keeping the counter display well
Keep your prime counter display
stocked and the counter area tidy.
well stocked, with a neat ‘reminder’
While we all tend to be guilty of
sign on it to encourage customers to
messing up counters, one person
make that last purchase. The sign
should be responsible for monitoring
could use such words as:
counter cleanliness. Do a daily check
‘Remember, only… days to Christmas';
‘St Valentines Day is February 14th.
to ensure that the behind-the-counter
Remember your loved one with a few area is kept clean and tidy.
chocolate hearts’; ‘New'; ‘We recommend
…’; ‘Don’t forget…’ Introduce housekeeping
Look past
7 regulations at your
5 the counter.
Retailers usually get the image right
checkout.
Remember, last impressions count.
It is critical that the checkout is kept
on the counter, but forget what's clean and tidy at all times. Therefore:
behind the checkout personnel. • Check the housekeeping standards at
Customers look in the opposite least three times a day.
direction to your sales team and • Keep the checkout dusted every day.
often the sales team are blind to the • Do not clutter with coffee mugs, litter
clutter the customer sees when or irrelevant products.
facing the counter. • Never eat at the checkout or in the
Have a company policy which view of customers.
says the only messages behind the • Never leave returned /exchanged
counter that are visible to the products sitting at the counter.
customer are those that are relevant • Give the customer space on the
to the customer. Take down those counter to pack and rest purchases.
Choose an appropriate
Management Memo
3 position for the stand.
Every supplier wants the prime
I n the United States, researchers Arthur
Andersen asked retailers what they looked
for, in order of priority, when seeking a ven-
position in your store. Your dor. Their response was:
challenge is to negotiate a location to Responsive to my specific needs
their satisfaction and, in so doing, to Committed—will follow through
increase your overall sales per square Flexible
metre. On-time service and delivery
As a general guide, suppliers who Has integrity and honesty
provide stands in excess of 1.5 Good communicator. 66
metres high should have them
positioned against a wall, preferably
along the customer racetrack.
Stands below 1.5m high may be used Look on the relationship as a
in central areas of the store, long-term partnership with both
preferably in the product category players equally involved in
area. promoting the product strongly to
Stands supplied must be in the benefit of both parties.
keeping with the image of your store.
For example, you might resist using Monitor the performance
a stand that clashes dramatically
with your colour scheme.
5 of supplier stands.
The prime objective of a supplier
stand is to sell more products than
Develop a win-win
4 relationship.
Be fair to the supplier. The majority
would be sold if that item were
displayed on one of your store's
standard merchandising units. As a
of suppliers spend a great deal of retailer your role is to measure the
research, time and money in performance of the product on the
developing stands for their product. stand and to compare its sales results
You, as retailer, should therefore with past records. If sales have not
respect this and only use the stand markedly improved, then you
for the relevant products provided should advise the supplier and
by that supplier. return the stand.
Shopping trolleys have been designed for reasons other than just
carrying products—they’ve been designed to carry more products!
In their evolution over the years, the base of the trolley has become
larger, because researchers have found that a larger based trolley
results in an increase in the average sale per customer. Customers
spend more as they are enticed to put more products in the trolley
to cover its base. Shopping trolleys are an essential item in
supermarkets and it’s important to manage their use effectively…
Promote products
that red is associated with savings
and therefore red price ticketing will
give the perception of a bargain.
6 not signs.
Often a sign can be so dominant that
Dark green gives the perception of all the customer sees is the sign and
Just about Everything a Retail Manager Needs to Know
WINNING OVERMANAGING PROMOTING MANAGING INDEX
YOUR CUSTOMER THE BUSINESS
YOUR STORE YOUR PRODUCTS
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
153
Vol. 1: See 66
always use words that increase sales G Guarantee, get, glamour, great, gold,
by increasing your customer’s give
H Health, happy, heart, heaven, help,
interest. Such attention-gaining
home, 'how to', hurry, honour, hot,
words include: hope, honest
At last Attention I Introducing, intelligent, invention,
Check out these Exclusive invite, innovate, incredible, interest,
Finally For the first time improve, immediate, important, instant
Good news Huge savings J Join, jewel, jumbo, joy, just arrived,
Hurry In a class by itself juicy
It's here New K Know, key, king, keep, knowledge,
New low price Now you can kind
Save big State of the art L Love, land, liberty, luxury, look, last
Switch to… Take a look at these chance, life, lasting, listen, learn
The smart choice Urgent M Money, magic, more, maximum,
It’s all here for you at… minute, modern, miracle, most, mind,
Back by popular demand mine, many
For those who insist on the best N New, now, need, nude, nice, neat,
Only… can give you… never before
Reasons why you should… O Opportunity, occult, open, on,
Take the… challenge original, occasion, own
The… advantage P Proven, power, positive, promote,
Quality does not have to cost you. protect, payoff, pro, pleasure, profit,
performance
Use positive words to sell Q Quality, quick, quiet
products. Donald Caudill from the R Results, respect, revive, right, rich,
University of North Alabama revolutionary, remarkable, record
suggests using power words from S Save, safe, sale, satisfaction, self,
service, sensational, special, smile,
his ‘Power Word Alphabet’: super, startling, secret, suddenly
A Action, accomplish, ahead, anybody, T Today, take, taste, thanks, time, true,
achieve, answer, announcing, try, total, tempting, think, trust
amazing, at last U Urgent, unique, understand, ultimate,
B Benefit, best, bible, big, bargain useful
C Can, calm, care, career, clean, comfort, V Victory, vitamin, vacation, VIP, value,
challenge, compare, cash, control valour, volume
D Discover, deliver, destiny, definite, W Win, wise, wanted, worth, willing,
dynamite, decide wow, which, when, why, who else,
E Easy, earn, effective, efficient, wonderful
entertain, extra, exciting X Xanadu, Xavier, x-ray, X
F Free, famous, full, fancy, fun, future, Y You, your, yes, young, youth
facts, friends, fast, found Z Zest, zodiac, zip, zenith, zeal, zero
Know the impact of your cross through it. This is far more
1 known value products.
Common known value (KV)
effective than giving percentage
savings.
products include petrol, cigarettes, KV signs work if you apply
newspapers, toilet paper, lettuce, the KISS principle—
sugar, milk, bread, and bananas.
KV products can be used to give the
Bananas Keep It Simple, Sells.
Name of Product
Price of Product
product.
8. Help the customer comparison
Signs for non known value products shop.
are most effective if prepared with 9. Remind customers of logical
the focus being price-plus-benefits… needs.
10.Always state what they will save.
Pre-shaped
▲
The 3 benefits
•Fast defrost &
Adhere to the rules of
microwave
6 for $2.50
3 store promotion signage.
▲
Price of Product
While signage can be used to
Great for BBQs!
▲
Closing motivator
promote products, it can also
Just about Everything a Retail Manager Needs to Know
WINNING OVERMANAGING PROMOTING MANAGING INDEX
YOUR CUSTOMER YOUR BUSINESS
YOUR STORE THE PRODUCTS 159
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○ ○ ○ ○ ○ ○
promote your business. Again, Management Memo
follow some simple rules to ensure
you use signs to promote your
business effectively:
W hen writing company procedure
signage always write it in customer-
friendly language. Examples of positive signs
1. When you have something to say include:
about your business, say so ■ If you bring bags, parcels and prams
into
through your signage. the store we know you will understand we
2. Promote the services your are obliged to check their contents when
you leave.
business provides.
Thank you.
3. If you have a strong policy
■ If you are lucky enough to look as thou
statement, repeat it a number of gh
you could be younger than 18, you will
times. The prime example is a understand that we are legally obliged to
prominently displayed sign in a ask to see your ID before selling you
Stew Leonards’ store, Connecticut, alcohol/cigarettes.
in the United States: Thank you for your co-operation. 71
Rule 1: The customer is always right.
Rule 2: If the customer is ever wrong,
re-read Rule 1.
For example:
4. Place services signs in the relevant Velcro T Stands—normally steel
merchandise category stands fitted with velcro hooks on
departments. both sides.
5. Use signage to ask for customer Chrome ticket holders—usually
feedback. adjustable stands with hooks to
6. Promote store activities and accommodate signs with holes in
occasions, prior to the events, via them.
signage. Clear acrylic hanger signs—ideal for
7. When changes are taking place in eye level merchandising.
the store, always apologise for any Basket grip stands —for attaching to
inconvenience to the customer via display baskets.
signage.
Velcro hook and loop fasteners—ideal
8. Make sure permanent signs for relay management and to
always look professional. prevent your team using staples or
9. Your signs are part of your public sticky tape to put signs up.
image. Make sure you look on
them in that way.
Rotate your signs
Invest in a complete
5 regularly.
4 signage package.
Signs should be placed next to the
items you are promoting. As a
To be effective and to look general rule, sign about 10 per cent
professional, you need a complete of the stock in your store and then
signage system in place, not just rotate the signs on a regular basis to
scattered signs. Sign display systems ensure that, over time, you expose all
are available in a variety of styles. your products to the customer.
Aim at variety.
4
Aim at variety in your displays, but
take care not to overdo it. Use texture
in your displays, for example wood,
hessian, stone, rope, or straw, to
create contrast and interest. This
texture can sometimes be provided
by the merchandise itself. THE COLOUR WHEEL
Y = yellow, O = orange, R = red
V = violet, B = blue, G = green
Create a buying mood.
5
Your aim in building merchandise
The colour triangle below reveals
that, when white is added to a full
displays is to provide points of
colour, a tint is achieved. When black
interest and attraction through the
is added to a full colour, a shade is
skilful use of colour and form, to
achieved.
create presentations that your
customers comprehend and can white
Managing
your Business
The person who has had a bull by the tail once
has learned 60 or 70 times as much
as the person who hasn't.
Mark Twain
How to develop
a retail business strategy
Extremely
Extremely
Neither
Slightly
Slightly
• Do products on display make a strong
– +
▲
▲
Quite
Quite
statement to your customers and are
they inviting the customer to buy?
PHYSICAL APPEARANCE
• Does the merchandise reflect the image
of your store? Dirty ■ ■ ■ ■ ■ ■ ■ Clean
• Does your store reflect a personality to Unattractive ■ ■ ■ ■ ■ ■ ■ Attractive
decor decor
your customers? Does it reflect the Difficult to ■ ■ ■ ■ ■ ■ ■ Easy to shop
name on the outside of the store? shop
• Are the familiar brands that customers Slow checkout ■ ■ ■ ■ ■ ■ ■ Fast checkout
…………… ■ ■ ■ ■ ■ ■ ■ ……………
ask for in the correct locations around
the store? STAFF
• Do the shop fittings and fixtures for Discourteous ■ ■ ■ ■
Courteous ■ ■ ■
promotions reflect the image you are Cold ■ ■ ■ Warm ■ ■ ■ ■
trying to create? Unhelpful ■ ■ ■ Helpful ■ ■ ■ ■
Inadequate ■ ■ ■ Adequate■ ■ ■ ■
• Have you ‘lifestyle’ statements around Numbers Numbers
the store that your customers can relate …………… ■ ■ ■ ■ ■ ■ ■ ……………
to?
ADVERTISING
• Are you using the upper walls
correctly? Is the consumer's eye Uninformative ■ ■ ■ ■ ■ ■ ■ Informative
brought down on to products or are Unappealing ■ ■ ■ ■ ■ ■ ■ Appealing
you encouraging them to look at the Unbelievable ■ ■ ■ ■ ■ ■ ■ Believable
Unhelpful ■ ■ ■ ■ ■ ■ ■ Helpful
ceiling due to misplaced signs and …………… ■ ■ ■ ■ ■ ■ ■ ……………
products?
• Is all the cross merchandising in the PRODUCTS
store relevant to your customers? Narrow ■ ■ ■ ■ ■ ■ ■ Wide
• Have you the correct ratio of signs in selection selection
the store and are they relevant to your Depleted ■ ■ ■ ■ ■ ■ ■ Overstocked
stock
customers and the products next to …………… ■ ■ ■ ■ ■ ■ ■ ……………
them?
PRICING
Develop an
2 understanding of 3 Be able to calculate
percentage change.
percentages.
In retailing we often need to
It is important for retailers to
calculate a percentage change
understand percentages since it
between two figures.
enables them to calculate valuable
The formula for this is:
comparative statistics as:
Percentage Change
Net Profit as a percentage of sales = x 100
Change Original Number
Gross Profit as a percentage of sales
Wages as a percentage of sales For example, if you have reduced the
Shrinkage as a percentage of sales price of a shirt from $12 to $10 and
Expenses as a percentage of sales you need to tell the customers on the
and so on. ticket the percentage change to the
Retailers need to be able to original price:
Understand gross profit. Gross Profit % = Sell Price – Cost Price X 100
1
Retailers generate a lot of money e.g.
Sell Price
…and you increase …your sales could decline by the amount shown below before your gross profit reduces
your price by…… 2%` 9% 7% 6% 5% 4% 4% 4% 4% 3%
4% 17% 14% 12% 10% 9% 8% 7% 7% 6%
6% 23% 19% 17% 15% 13% 12% 11% 10% 9%
8% 29% 24% 21% 19% 17% 15% 14% 13% 12%
10% 33% 29% 25% 22% 20% 18% 17% 15% 14%
12% 38% 32% 29% 26% 23% 21% 19% 18% 17%
14% 41% 36% 32% 29% 26% 24% 22% 20% 19%
16% 44% 39% 35% 31% 29% 26% 24% 23% 21%
18% 47% 42% 38% 34% 31% 29% 26% 25% 23%
20% 50% 44% 40% 36% 33% 31% 29% 27% 25%
25% 56% 50% 45% 42% 38% 36% 33% 31% 29%
30% 60% 55% 50% 46% 43% 40% 38% 35% 33%
▲
ing Rule of thumb markdowns 21%
Price ition
os Across board markdowns 10%
eP
Pric Predetermined markdown formula 4%
▲
Quality
A Basic Product, e.g. cornflakes
A Fashion Product, e.g. grey dress
Do your homework
3 when setting prices.
A Seasonal Product, e.g. sunscreen
Pricing strategies in general retail
Do not just put prices up or down vary based on the category of the
without undertaking some basic product. In the Arthur Andersen
research. You must link your price Research, they found:
strategy to your customers’ Product Range Pricing Breakdown
perception of value (what they Retail policy Basic Fashion Seasonal
would pay for it). This is often Everyday low pricing 59 % 10 % 31 %
different from your perception of Full price promotion 50 25 25
value. Indeed, in many instances, Consistently moderate price 48 26 26
High-low price 45 23 32
your perception will be lower than
the consumers'.
US research by Arthur Andersen Cater for changed
found that retailers, when setting a
price, do so for the following
5 buying habits.
Research by Grey Advertising in
reasons, in order of importance:
1991 and 1993 in the United States
1. Expected gross margin
2. Competitor’s price
found customer buying habits are
3. Manufacturer’s recommended retail changing.
price 1991 1993
4. Customers’ perceived value
Many moderately priced brands
5. Perceived demand
meet my needs today 70 % 77 %
6. Cost to retailer
Less expensive brands have equal
7. Company image
or better quality 72 89
8. The product is in fashion at present
I will not go back to the spending
9. Volume of stock on hand.
I used to 72 83
Always review your competitors'
prices, your consumers' expectations, Clearly, customers are shopping
and your image before setting a price. around and being more critical. For
this reason, you would be wise to
Vary your price according monitor the price changes of your
4 to the type of product.
When pricing your product, consider
key products in your competitors'
stores and position your price
it in one of three categories: accordingly.
Just about Everything a Retail Manager Needs to Know
FOREWORDCONTENTS PREFACE TESTIMONIALS
AUTHORS
186
ADVERTISING BUDGETS See also: 60, 62, 64, 66
…and you reduce …to produce the same profit, your sales volume must increase by
your price by…
2%` 11% 9% 7% 6% 5% 5% 4% 4% 3%
4% 25% 19% 15% 13% 11% 10% 9% 8% 7%
6% 43% 32% 25% 21% 18% 15% 14% 12% 11%
8% 67% 47% 36% 30% 25% 22% 19% 17% 15%
10% 100% 67% 50% 40% 33% 29% 25% 22% 20%
12% 150% 92% 67% 52% 43% 36% 32% 28% 25%
14% 233% 127% 88% 67% 54% 45% 39% 34% 30%
16% 400% 178% 114% 84% 67% 55% 47% 41% 36%
18% 900% 257% 160% 106% 82% 67% 56% 49% 43%
20% - 400% 200% 133% 100% 80% 67% 57% 50%
25% - - 500% 250% 167% 125% 100% 83% 71%
30% - - - 600% 300% 200% 150% 120% 100%
How to manage
non price sensitive products
Surprisingly for most retailers, price is not always the major reason
people purchase a product. A recent survey of customers at
a Melbourne garden centre found that their priorities for purchase
related to, in order of importance—name of plant, its height, the
colour of its flowers, the scent, its non-poisonous nature, and, finally,
price. Indeed, the majority of products sold today are non price
sensitive or non known value products. Understand the special
nature of such items and you can improve your profit line…
Name of product
your range, quality and service, then
non price sensitive products should •
Three bullet-point
be displayed in those key positions. •
▲
benefits to the
Obviously you cannot display all • consumer
Price
procedure where you rotate products Add-on selling line
▲
Products are priced in one of two ways. The majority are now
computer code-marked by manufacturers or the retail
supplier using a ‘number’ code or a ‘bar’ code system.
However, although in decline, the ‘open pricing’ system is still
in use in many small retail stores, where the retailer must put
the price on the product using a non-computerised system.
If using this approach, be aware of the following guidelines…
Ref: William Davidson, Daniel Sweeney and Ronald Stamp, Retailing Management
Two companies in the same town sell the same product at the
same price. One turns stock four times a year; the other sixteen
times a year. The second retailer concentrates on stockturn in
the belief that the customer should constantly be presented
with fresh product. The second business makes the bigger profit.
Stockturn is a key ingredient for succcessful retailing…
ATION
GROSS PROFIT CALCUL
Opening Stock $
+ Total Purchases $
– Total Returns $
= Sub Tota l $
– Closing Stock $
= Cos t of Goo ds Sold $
Sales $
– Cos t of Goo ds sold $
= Gross Profit $ $
fit % %
= Gro ss Pro
TOTAL PURCHASES TOTAL RETURNS
Ref: IGA, Managing the Dollars workbook
Low High
Markup Markup critical questions.
As a store or departmental manager,
Prior to ordering stock, judge it first you need to ask seven key questions
in terms of where it would be placed prior to buying. If you cannot answer
in the above categorisation. The more all seven with factual evidence, you
‘star’ and ‘cash cow’ products you may well find you will have stocking
have in your business, the happier problems in the future:
your bank manager will be, just as 1. How much should you invest in
s/he would be happy to have you stock?
stock up with few, if any, ‘problem 2. When should the investment be
lines’ and ‘dogs’. made?
3. When should stock levels be
Buy for the seasons.
4
The open buy policy is more
decreased?
4. When should stock levels
increase?
important for seasonal retailing than 5. What should you invest in?
for non-seasonal retailing when 6. Why invest?
money can be tied up for longer 7. Where should you invest your
periods. For example, a garden money?
we
improve it?
will need to use some means of
• What sort of person should we recruit?
advertising. The most common • Do you know anyone for the job? 88
methods are: advertisement in local
newspaper or trade press, friends/
relatives of existing team members,
word of mouth in the local through training. On the other hand,
community, and promotion to school if the employee has the personality, it
leavers. Some businesses find is comparatively easy to train them
recruiting friends and relatives as the in product knowledge. So, your
most desirable approach as this can recruitment procedure should be
quickly build a team spirit, but aimed at selecting people with the
others are against this as they feel it right personality for your business.
can cause an increase in staff Consider using such personality
pilferage. Remember, you are not checking strategies as:
only advertising for a person; you • A surprise telephone call (to the
also have the opportunity to promote candidate) to check their tone of
your business to your market. As a voice and natural approach on the
guide make sure your advertisement telephone.
covers three important areas: details • Passing a compliment to the
of your business, details of the job, candidate in the interview and
details of the person you require. By gauging their reaction.
doing this you are being very specific
• Getting a fellow team member to
with your targeting and will reduce
show them around the store and
the number of unwanted applicants.
to report back on their personality
in the more relaxed setting.
Employ personality
5 over knowledge.
Retailing is a personality industry. It
is extremely difficult, if not
impossible, to improve a personality
How to interview
potential salespeople
How to develop
a mystery shopping program
Are you one of those retail managers who believes that there
simply isn’t enough time to hold staff meetings and, even if
you did, not everyone would be able to attend anyway?
Team meetings are not as common as they should be. The
result is that staff often feel alienated, they are unable to
network effectively with colleagues, or to share ideas and
plan for the future. Consequently, many companies are
underperforming.
Remember: follow-up
different types of meetings is a more
effective way of involving staff and
ensuring the efficient running of
6 is essential.
Brief minutes of the meeting should
your store—for example, be typed and disseminated to team
departmental meetings or senior members. Meeting outcomes should
management meetings. The meetings be clearly defined—if a decision has
that are most neglected, however, are been made to do something, state
the full team meetings, where all who will be responsible for doing it
your people—including those at the and by when. Follow-up later to
sharp end who deal with the ensure the tasks get completed by
customer— are able to be kept in the the due dates.
Consider videos
3 as a training tool.
2 as a training tool.
There are many training organisations
Audio magazines such as Retail
Globe, along with others in the
marketplace, provide the
around the world that can provide opportunity for training to take place
video training on customer service while the listener is driving to work
and other retailing skills. Videos are (or at any other convenient time).
easy to use, convenient and allow This style of training is ideal for
you to provide a professional managers and supervisors in
training package with less input than particular, who usually have the
having to prepare from scratch— motivation to train themselves.
Consider remote-area
5 Consider out-sourced
workshops.
7 training.
Most urban areas have ‘open’ Countries like Australia are serviced
training programs where anybody by retailers in remote communities
that are vast distances from training
can attend. The value of these
providers. Conventional training then
workshops is that they expose your
becomes very costly. Increasingly,
team members to other retailing
technology is defeating distance. For
people who have similar challenges
example, live programs can be
and concerns. The sharing of ideas
beamed at once via satellite to
with outsiders can enhance the
television sets in hundreds of stores
training program and provide useful
across the country. The up-link also
networking opportunities for your
allows trainees to interact live via
staff.
telephone with the presenter. In this
way quality training is provided to
Consider open learning
6 programs.
Open learning training is operated
large groups in a wide territory at
one time at a very cheap cost. Internet
and intranet delivery of programs
by colleges and universities. They via computer is also on the increase.
offer accredited courses, and provide
Never forget: training
workbooks that are mailed to
individual participants. In this way,
the individual can undertake formal
8 is an investment.
Retailers must know their products
self-paced training at home, but to a and how to sell them. Along with
specified level. On completing each other benefits, training provides the
segment of the course, workbooks essential skills. This can be
are mailed back to the provider for expensive, yet the leaders in the
assessment. Certification is usually retail industry train their staff
awarded upon successful completion extensively because they realise it is
of the course. an investment in their business.
Management Memo
You may be asked for financial
support, the provision of goods or a
site, or to fund a coffee break at a
S ponsorship, internationally, is a growth
business. In the United States over the
last five years, it has out-stripped the growth in
conference, and so on. traditional advertising techniques by five to
one. 95
Target the market.
4 Ensure you embrace the
An event will have a highly defined
market. For example, a flower show
6 target market’s lifestyle.
Selling product is not the aim of
will be aimed at keen gardeners and
flower arrangers, while a trade show sponsorship. Building loyalty is. For
on hardware will attract the top this reason, ensure that your potential
handymen. Such events obviously customers at the event relate to you
provide a great opportunity for those in their lifestyle. For instance, if you
retailers to promote their business to sold pool chemicals you would not
a specific market and ensure they get sponsor a back-to-nature event, but a
maximum benefit from their sporting goods retailer would find this
financial involvement. an ideal opportunity for involvement.
Ideally you should aim at heavy
Make sponsorship
users of your product, develop a
strong association with the event, and
7 work for you.
get your name upfront—The Coca How will your sponsoring of an
Cola Olympics, The Greengrowth event affect your company’s stature?
Flower Show, The Product x Home of • If it is an environmental, charity or
the Year. educational occasion, it is an ideal public
relations exercise.
• Sponsoring an event will involve you
Consider your products
5 and sales.
Apart from linking your name and
with customers in a non-sales
relationship. It allows you to spend
quality time with them, the result of
which should mean future sales contacts.
products to an event, you can also
• Sponsoring the right event will win
use this as an opportunity to launch you new friends and build employee
a new product or revitalise your relations. The New Zealand Post Office,
products and services. But you will for example, found sponsoring the New
need to check beforehand whether Zealand Olympic team was a major boost
this is purely sponsorship, or if you in building employee morale.
will be able to promote and/or sell • Oddly, only 10 per cent of companies
forge a marketing campaign around their
products at the same time. A camera sponsorship. Coca Cola, Nike, Reebok,
retailer, for example, might sponsor a and Telecom built excellent marketing
tea break at a conference on the clear campaigns around their Olympic
understanding that it would have a involvement. Link your sponsorship to
sales booth in the conference hall on marketing.
• Forty percent of sponsors do not even
the day of the sponsorship. People
advertise their involvement with an event.
are more inclined to buy at this If you are going to spend on sponsorship,
moment than after the event when budget an equal amount on advertising
the euphoria has declined. and promotion linked to the event.
Management Memo
reducing shrinkage at this location:
• Always check the price of any
merchandise with a damaged, missing Y ou need two important ingredients work-
ing for you if you are to reduce your
shrinkage. Firstly, the total workforce must
or irregular ticket.
• Keep the cash register closed between be innoculated with the philosopy that they all
transactions and locked if unattended. bear the consequences of shrinkage if com-
• Inspect all merchandise that is pany procedures are not followed. Secondly,
tendered for payment, especially boxes you must have a Shrinkage Improvement
or cartons into which smaller items Program which should include key proce-
could have been placed. dures, such as recording of purchases, sales,
• Always block a checkout aisle when markups and markdowns, breakages and
the checkout is unattended. write-offs, plus opening and closing stock.96
• Be careful when a large note is
tendered for a small purchase. Always
count out change to a customer before
placing the note into the till.
• Wrap and seal purchased merchandise. placed security mirrors and cameras.
Attach receipts to the outside of Buzzers on doors work effectively,
packages. especially in self service stores where
• If packaged goods are presented for contact with customers is minimal.
payment in an unsealed or tampered
carton, check its content.
Get your team
• Put point of sale merchandise at the till
in a position where the staff can
observe the display.
7 on side.
Your staff have an important role to
play in contolling shrinkage. The best
Attend to
5 housekeeping matters.
Shrinkage is difficult to eliminate,
deterrent is to ensure team members
acknowledge all customers when
they enter the store and can keep eye
but it can be reduced by introducting contact with them during the store
some simple housekeeping rules into experience. Lower gondola displays
your business. For example, always will allow shoppers to be watched
keep aisles clear of merchandise for across the store. Keep expensive
customer safety and so that anything items in locked display cabinets or
dropped on the floor is quickly visible. anchor them to displays to ensure
Your team must be the eyes and ears they cannot be easily carried away.
of the store. Ensure they are familiar
with products on display and keep Try incentive schemes.
small vulnerable items in their view. 8
One of the world's leading retailers
Consider using
6 deterrents.
Signs on doors — ‘If you steal you
has identified that the majority of
shrinkage is happening via team
members. This company now has a
will be prosecuted’— are not always shrinkage rate of 1 per cent—achieved
effective deterrents because they by introducing an incentive scheme
accuse everyone of being dishonest aimed at reducing shrinkage. If
and the thief rarely believes the shrinkage drops below 1 per cent,
retailer will prosecute anyway. Far the team share the benefits—as much
more effective are strategically as US$800 per team member per year.
Just about Everything a Retail Manager Needs to Know
FOREWORDCONTENTS PREFACE TESTIMONIALS
AUTHORS
228
SHOPLIFTING See also: 226, 230
Be committed to theft
of stealing products, yet often do not
think of it as stealing. Comments
7 reduction.
Managers must be committed to
from team members caught in the act
strategies aimed at the reduction of
have included: ‘You’d never miss it’,
shoplifting within the business. This
‘You owe it to me’, ‘Everyone’s
means procedures must be put in
doing it’, ‘I need it more than you
place that reduce the opportunities
do’, ‘It was just so easy’.
for theft, and employees made aware
Security is an important aspect of
of this commitment. Such procedures
your business and you must have a
might include:
written policy to ensure your people
Pre-employment screening
remain honest, a policy that all staff
Employee induction programs
members agree to.
A typical policy would include: Written company policies and
procedures
Staff must be personally responsible for
Team malpractice awareness training
personal property.
Investigation procedures for malpractice
Team members must not remove
property from the business premises. Malpractice action plan.
Management Memo
Look for anything
4 suspicious.
Treat every customer as being
C ustomers will still use cash, so have a
simple cash handling procedure.
• Total the sale and tell the customer the amount.
honest, but be on the lookout for • Call the amount of money tendered by the
irregularities. When dealing with customer.
• Place the amount on the cash drawer (do not
financial issues, it pays to be put it in the register at this stage).
suspicious, and to… • Make up the change.
• be cautious about people who make • Count the change back to the customer.
strange, large or irregular purchases • Place the amount tendered into the appropriate
that seem to be out of step with their compartment/s of the drawer
apparent lifestyle. • Close the cash drawer.99
• treat as suspicious people who make a
large purchase and keep returning to
your store to make a series of irregular such as a customer giving you a card
purchases using a credit card. of the opposite sex.
• watch customers who ask to split • be wary of companies coming to check
transactions into a number of small your terminals without prior
ones, particularly those asking the notification. Check that they are an
amount of floor limit or making authorised maintenance company that
multiple small transactions perhaps to has bank approval.
avoid authorisation being contacted.
• be wary of customers who buy large Be alert for
products on a credit card, are adamant
they take them straight away and
5 cheque fraud.
Due to fraud, many retailers today
resist any form of delivery service.
• observe where the customer keeps the refuse to accept payment by cheque
card. Most people keep their card in a and cheques are becoming less
wallet or purse, although a person common in retailing. To minimise
who keeps the card in a pocket may fraud, some retailers use cheque
do so to hide the contents of their
purse or wallet. Although not a good guarantee companies to reduce the
indicator by itself, it is a signal that risk by phoning the company to gain
other checks might be in order. authorisation of the cheque.
• check the way the customer signs the When receiving a cheque,
voucher. If they check the signature consider the following:
while signing, or are particularly slow • Ensure the cheque is signed in front of
when signing, this may indicate they a salesperson.
have practised the signature and are
trying to get it right. • Seek identification, via driver’s
licence, passport or credit card, to
• watch for shoppers with bandaged ensure the signature matches that
hands who say they cannot sign provided on the cheque.
properly. Always check other
identification like a driver’s licence. • Check that the amount written in
words matches the amount written in
• be cautious if, when asked for other figures.
identification, the customer cannot
produce any, particularly if the card • Make sure that the date on the cheque
was in the shopper’s pocket. is correct.
• look for suspicious behaviour from • Ensure your company name is correct.
members of the public in or around • In the case of an overseas cheque, call
your store. This includes irregularities a supervisor for verification.
Install smoke alarms can help you with your training, but
1 and fire extinguishers.
Some of the most common
general guidelines would include:
• Train the team in procedures for
tracing telephone calls.
emergencies are fire-related. We can
• Ensure your team know how to
be prepared by taking some simple
attract the attention of another team
precautions. member without tipping off a
Contact your local fire service and telephone caller.
ask them to visit your store and • Record the time and date of
provide advice on the strategic threatening phone calls.
placement of fire extinguishers, • When a caller phones, try and obtain
smoke alarms, and other necessary information on where the bomb is,
precautions. In most stores several what it looks like, when it is set to
explode, what will detonate it, why
smoke alarms and fire extinguishers
it was set, and who the bomber is.
will be required. The key is to install
• Ensure people do not use radios,
and maintain. Have a procedure that walkie-talkies, or cellular phones in
ensures you test your equipment the area of the bomb.
once a week. Clean the equipment • Contact the police immediately.
annually and have regular alerts to
check the efficiency of equipment Know what to do
and procedures. 3 after a break-in.
Professional thieves may break into
Introduce procedures
2 for bomb threats.
your store after you have closed for
the day. If you arrive at the store
The bombing of retail stores has next morning and find it has been
increased in recent years and can no broken into, take the following steps:
longer be seen as an occurrence • Do not enter the store.
common only to politically sensitive • Use the nearest telephone to call the
areas of the world. Take bomb police.
threats seriously and ensure your • If you do go into the store, do not
team is trained in the correct touch anything.
procedures. Specialists in this field • Wait for the arrival of the police
Management Memo
concise and clearly express your
he good management of occupational
intentions in providing a safe,
healthy working environment. The
T health and safety is good business. It
can be a very motivating ‘people base
d’
policy should encourage employee investmen t, able to stimu late impr ovem ents
.100
involvement and foster their across a broad area of business processes
commitment from the beginning. It
should also embrace procedures to
guarantee the safety of customers, S Spotting Hazards. This involves regular
contractors, and visitors. routine inspections; examining your
Display your policy on a staff accident history; knowledge of
accidents in similar retail sectors; and
noticeboard and/or in the trading regular reporting of hazards and
area to endorse your commitment. incidents by employees and others.
A Assessing Risks. What is the risk of
Make safety an integral
5 part of your business.
exposure to an identified hazard?—
what type of injury/damage could be
sustained? how often? how many? for
Demonstrate your commitment to how long? and so on.
health and safety. The overall
M Making Changes. What control
responsibility for health and safety in measures have been recommended by
the workplace rests with the authorities, employees, or managers.
employer. All individuals, however, Appoint someone in your store to be
have a responsibility for their own responsible for implementing these
measures promptly.
health and safety and that of other
people. Your commitment as a SAM is also a useful device to help
manager is demonstrated by the you develop the health and safety
development of the health and safety program itself.
program for your organisation,
Keep accurate records.
beginning with a policy and related
procedures, and demonstrated daily
7
Detailed records should be kept to
by example.
Include in your regular meetings validate your commitment to the
discussions on the health and safety continuing health and safety of your
concerns of employees and others. staff and customers. Such records
Health and safety should have the may be called upon by the authorities
same importance as wages and sales, in the event of an injury or serious
after all this is one area where loss incident in the workplace. Your
records should relate to accidents,
can be prevented. Allocate resources
procedures, training, instruction and
to developing, implementing, and
supervision, meetings which include
maintaining your program.
discussions on health and safety,
inspections and subsequent actions.
Keep your standards
6 under review.
Records also assist you to highlight
patterns of behaviour which result in
Identify and deal promptly with injury or incident.
hazards—anything that can harm or
injure— in the workplace. SAM will This topic was written by Kym Kaptein,
help in this regard: Foodland Associated Limited, Perth, WA.
Establish a safety
6 accidents are reported.
5 committee.
Establish a store-wide procedure
which demands prompt and
Having a special committee, or consistent reporting of hazards and
setting aside time in your regular accidents in your store. A notebook
meetings, to discuss OHS issues is may be all you need for staff and
useful for several reasons—you can visitors to record such information.
access, and assess, the accumulated The reports assist you in identifying
store of knowledge and experience deficiencies so that you can take
possessed by your employees in corrective action to prevent future
performing their work, and the injuries or property damage.
employees gain the confidence and
security of being involved in This topic was written by Kym Kaptein,
decisions relating to their own health Foodland Associated Limited, Perth, WA.
Glossary
consumer to pay in small amounts POS. Point of Sale. The position and
over time until the payment has been location where money changes hand.
made in full. Power Product. A product that is a
Line. A group of products, all of which symbol of your industry and can be
do the same job for the consumer. sold rapidly, due to its consumer
Link Products. Products that are demand.
naturally sold together in the Price Banding. The band between the
consumer’s mind. minimum and maximum price that a
Margin. The difference between the consumer is willing to pay for a
buying and selling price. specific product.
Margin of Safety. The amount of Price Point. The ideal price for a specific
product to maximise sales.
security your business has before it
goes into a negative trading pattern. Product Promotion. A campaign held by
the retailer or supplier to increase the
Markdown. The amount of money you
sales of a specific product.
reduce a product from its original
selling price in order to sell it. Product Range. The amount of different
products within a retail category.
Mystery Shopper. A person, not known
to the salesperson, employed to make Purpose Product. A product the
an assessment on your retail customer planned to purchase when
performance. the consumer walked in your door.
Non Known Value Product. A product Quality Circle. A group of people who
whose exact price the majority of analyse the business with the aim of
consumers do not know. introducing improvement.
Non Price Sensitive Product. A product Race Track. The main customer flow
that achieves a high gross profit as path, which goes around the store.
consumers do not know the exact Raincheck. A comment or note to a
price of the product. customer when an advertised or
promotional line is out of stock. This
OHS. Occupational Health and Safety.
acknowledgment allows the customer
One on Eight Case Deal. Buy eight and to purchase the product at the
we gift in one advertised price at a later date.
Open Pricing. Pricing using a non Rate of Sale. Total sales for, e.g. a month,
computerised system. divided by the number of weeks,
OTB. Open To Buy. The amount of giving you your average rate of sales
dollars you can spend in a given time a week.
frame to purchase stock to maximise Relays. A layout of products along a
sales. shop fitting.
Pallet. A moveable platform on which Retail Price Maintenance. The restrictive
products are placed for storage, trade practice of a supplier fixing the
transportation, and display. They are minimum price of a commodity for
designed to be used with a forklift all subsequent levels of its
system. distribution.
Planogram. A diagram showing the Retailer. The seller of products to the
position of products on the shelf. ultimate consumer.
PLU. Product Look Up. A code number Runway. The main customer flow path
attached to the product which allows which goes down the centre of the
the retailer to ‘look up’ that product store.
on a computer. Sales Target. The planned financial
objective of the business. This is
John Stanley
Delivering Retail Customers
John Stanley is an enthusiastic and charismatic International speaker
and consultant specialising in the retail industry.
Are your team creating loyal customers, or just serving people?
Do your customers go away and rave to their friends about your
amazing service?
Is your business turnover exploding through word of mouth?
Are your sales team excited and enthusiastic about coming to work
each day?
Do your clientele love to visit your store and interact with your team?
Are your power displays increasing your sales by 540%?
John Stanley has been motivating John’s skills include identifying
teams to push enterprises to greater you primary needs, working with
heights through enthusiasm, self- you to fulfil those needs, building on
empowerment and increased your strengths, eliminating your
awareness of customer needs. weaknesses, understanding your
Whatever your retail objectives, John customers and growing your profits.
Stanley can help fast track your Whether your goals be:
business to reach amazing new • Attracting more customers
heights. His valuable, practical and • Improving your teams customer
instantly effective ideas are based on service
over 25 years of international retail
• Increasing sales
experience and ongoing international
research. • Re-designing your store
With John’s mentoring, training • Improving customer flow
and on-site consultancy, small retail • Creating customers for life
stores have grown into professional
• Increasing your stockturns
multi-million dollar business
operations, while large international • Improving your merchandising
companies use John’s skills to strategy
improve their professionalism and • Designing more effective
develop consistency throughout their promotions
stores. • Developing a retail business
John Stanley in one of few strategy
consultants in the world today who • Recruiting more effective sales
have the credibility, international people
knowledge and such a clear
understanding of what today’s John can help you achieve all this,
customers are demanding and what and more....
retailers need to know to become
more profitable.
Rave reviews from John John has also created, written and
sourced a range of products to help
Stanley’s recent clients: retailers to grow to new heights. For
“John Stanley re-designed our Farm more information on John’s services,
shop to improve customer flow, products, or to subscribe to John’s e-
merchandising and general image. newsletter for retailers please visit
As a result of the re-design we have John’s website www.johnstanley.cc
achieved a 44% increase in turnover, For more information on John
and 18% increase in customer Stanley Associates services contact:
numbers, and a 22% increase in
John Stanley Associates
average spend over the same period
142 Hummerston Road,
last year. All this in spite of the
Kalamunda, WA 6076, Australia
current difficult trading time due to
Tel: +61 8 9293 4533
the Foot and Mouth outbreak here
Fax: +61 8 9293 4561
in the UK. We are also finding that
Email: info@johnstanley.cc
running the shop is much easier
and less stressful on many levels - Where other consultants discuss the
especially stock control. Long problems, John offers practical,
may it continue. Thanks again cost effective solutions.
for all your help - you www.johnstanley.cc
inspire!!”
Stuart Beare, Tulleys
Farm, United Kingdom
“I employed John Stanley
as a consultant to work
with my team on
developing the overall
appearance of the store.
As a result of John’s input
and advice, within six
months we achieved a
growth that far exceeded
our expectations. On a busy
day we are achieving a
turnover which is equivalent
to one weeks turnover prior
to us taking over the store.”
Pierre Sequeira, ‘Store of
the Year 2001’, Supa Valu
Como, Western Australia
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a. Spencer Johnson and Larry Wilson, The One Australian Marketing Association Report on
Minute Sales Person, Willow Books, 1985, p. 80. 1. Marketing Expenditure. 30. Geoff Sirmai, The
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3. Helen Townsend, Baby Boomers, Simon & Guide, Information Australia, 1984, p. 77. 32.
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Pfeiffer, 1995. 5. Image 7 Newsletter, January 1999, perefect Your Selling Skills, Kogan Page, UK, 1990,
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How to Write a Good Advertisement. 7. Roy L. Reference Publishing, NZ. 36. Alfred Alles,
Smith in The New Speaker's Sourcebook, Eleanor Exhibitions: A Key to Effective Marketing, Cassell,
Doan, Zonderan, Grand Rapids, Michigan, 1968. London, 1988, p. 116. 37. Sonja Larsen, Signs that
8. Jan Carlzon, Moments of Truth, Ballinger Sell, Insignia Systems, USA, 1991, p. 23. 38.
Publishing, 1989. 9. Bobbie Gee, Image Power, Kenneth Mills & Judith Paul, Applied Visual
audio presentation package, Bobbie Gee Merchandising, Prentice Hall, USA, 1974, p. 116.
Enterprises, 1986. 10. Betsy Sanders & Warren 39. US Product Acceptance and Research Inc. 40.
Bennis, Fabled Service, Ordinary Acts, Extraordinary John Stanley, John Stanley Says, Vol. 2, Reference
Outcomes, Executive Briefing Series, Pfeiffer, Publishing, NZ. 41. Newsletter, Insignia Systems,
1995, p. 116. 11. DIY Retailing, March 1998. 12. Inc. 42. Merchandising to Maximise Sales
Bob Vereen, '7 Things Never to Say', Australian Productivity, conducted on behalf of The Russell
Hardware, January 1998. 13. Pat Weymes, How to R. Mueller Retail Hardware Research Foundation,
Perfect Your Selling Skills, Kogan Page, UK, 1990, November 1989, p. 19. 43. Merchandising to
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Every Sale, A Westfield Retail Education Book, of The Russell R. Mueller Retail Hardware
World Wide Success Media, 1997, p. 122. 15. Research Foundation, November 1989, p. 13. 44.
Scott Gross, Positively Outrageous Service. 16. Kenneth Mills & Judith Paul, Applied Visual
Ukrops Supermarkets USA. 17. Robert Spector Merchandising, Prentice Hall, p. 118. 45. John
and Patrick McCarthy, The Nordstrom Way: The Stanley, Merchandising Manual, John Stanley
Inside Story of America's No. 1 Customer Service Associates, February 1999. 46. Edgar Falk, 1001
Company, John Wiley, NY, 1995, p. 202. 18. Ideas to Create Retail Excitement, Prentice Hall,
Kenneth Stone, Competing with the Retail Giants, 1994, p. 49. 47. Edgar Falk, 1001 Ideas to Create
John Wiley & Sons, 1995, p. 194. 19. Feargal Retail Excitement, Prentice Hall, 1994, p. 54. 48.
Quinn, Crowning the Customer: How to Become Business Trader, Brisbane, December 1998, p. 28.
Customer Driven, The O'Brien Press, 1990, p. 64. 49. Source unknown. 50. Chris Newton, Results
20. Murray Raphel & Neil Raphel, Up the Loyalty Corporation, Queensland, Newsletter. 51. Flower
Ladder, Harper Business, 1995, p. 247. 21. Janelle Business International, November 1998. 52. US
Barlow and Claus Moller, in A Complaint is a Gift, Product Acceptance and Research Inc, 1998. 53.
Koehler, 1996. 22. Temasek Poly-Technic, January Lorraine Thornton, Retailing: How to Lift Sales
1998, in The Retailer, TMPC Publishers, and Profits, Stirling Press, 1996, p. 39. 54. Bobbie
Queensland, April 1999, p. 14. 23. Noreen Emery, Gee, Creating a Million Dollar Image for Your
Speech Dynamics, Perth Western Australia. 24. Business, Pagemill Press, USA, 1995, p. 37. 55.
Michael Le Boeuf, How to Win and Keep Customers Bobbie Gee, Creating a Million Dollar Image for
and Keep Them for Life, Berkley Books, NY, 1987, Your Business, Pagemill Press, USA, 1995,
p. 120. 25. John Stanley, John Stanley Says, Vol. 1, prologue. 56. Arthur Andersen, Small Store
Reference Publishing, NZ. 26. Mark Wrice, First Survival: Success Strategies for Retailers, John
Steps in a Retail Career, National Retail & Wiley, USA, 1997, p. 137. 57. Lorraine Thornton,
Wholesale Industry Training Council, Macmillan Retailing: How to Lift Sales and Profits, Stirling
Educational Australia, 1995, p. 112. 27. John Press, 1996, p. 34. 58. Mark Wrice, First Steps in a
Stanley, John Stanley Says, Vol. 2, Reference Retail Career, National Retail and Wholesale
Publishing, NZ. 28. Roy Morgan Research. 29. Industry Training Council, Australia, 1995, p.
140. 59. IGA Newsletter. 60. Asian Retailer August Andersen, Small Store Survival: Success Strategies
1996. 61. John Stanley, John Stanley Says, Vol. 1, for Retailers, John Wiley, USA, 1997, p. 100. 85.
Reference Publishing, NZ. 62. John Stanley, John Mark Wrice, First Steps in a Retail Career, National
Stanley Says,Vol. 2, Reference Publishing, NZ. Retail & Wholesale Industry Training Council,
63. John Stanley. 64. Lorraine Thornton, Retailing: Australia, 1995, p. 112. 86. Mark Wrice, Retail
How to Lift Sales and Profits, Stirling Press, 1996, Management, Macmillan Education Australia,
p. 42. 65. John Stanley, John Stanley Says, Vol. 1, 1998. 87. Arthur Andersen, Small Store Survival:
Reference Publishing, NZ. 66. Arthur Andersen, Success Strategies for Retailers, John Wiley, USA,
Small Store Survival: Success Strategies for Retailers, 1997, p. 106. 88. Selection Interviewing, Management
John Wiley, USA, 1997, p. 101. 67. John Stanley. Skills Guide SMS D5, UK Agricultural Training
68. John Stanley. 69. The New Speakers Sourcebook Board, p. 5. 89. Celia Roberts, The Interview Game
Eleanor Doan, Zondervan, Grand Rapids, and How It's Played, BBC Books, 1985, p. 46. 90.
Michigan, 1968. 70. The New Speakers Sourcebook Jonathon Winchester, Shoppers Anonymous,
Eleanor Doan, Zondervan, Grand Rapids, Perth, Western Australia. 91. Sam Deep and Lyle
Michigan, 1968. 71. Jurek Leon, Terrific Trading. Sussman, The Manager's Book of Lists, SDD
72. John Stanley Says, Vol. 1. 73. E.P. Danger, Publishers, Glenshaw, Pa., 1988, p.82. 92. Retail
Using Colour to Sell, Gower, London, 1968. 74. Challenge Newsletter. 93. Candy Tymson and Bill
E.P.Danger, Using Colour to Sell, Gower, London, Sherman, The Australian Public Relations Manual,
1968. 75. Effective Marketing to the Retail Millennium, Sydney, 1990, p. 122. 94. Jarvis
Environment Workshop UK. 76. John Stanley. Finger, Managing Your School, Vol. 1, Fernfawn,
77. John Stanley, John Stanley Says, Vol. 1, Brisbane, 1993, p. 78. 95. Marketing Magazine,
Reference Publishing, NZ. 78. Mark Wrice, First July 1982. 96. Michael Sacher of the Reject Shops
Steps in a Retail Career, Macmillan Education 97. Denny van Maanenberg, Effective Retail
Australia, 1995, p. 161. 79. Ron Marciel, Western Security, Butterworth-Heinemann, 1995, p. 44.
Nurseries, California, 1980. 80. Arthur Andersen, 98. Denny van Maanenberg, Effective Retail
Small Store Survival: Success Strategies for Retailers, Security, Butterworth-Heinemann, 1995, p. 44.
John Wiley, USA, 1997, p. 91. 81. Peter Latchford, 99. Mark Wrice, First Steps in a Retail Career,
The Principles of Successful Retailing, The Business National Retail & Wholesale Industry Training
Library, 1990, p. 195. 82. Visual Merchandising Council, Macmillan Educational Australia, 1995,
VM & SD Magazine, St Publications, 1997, p. 5. p. 173. 100. Managing Occupational Health and
83. Mark Wrice, First Steps in a Retail Career, Safety 1996, eds. Wyatt A. and Oxenburgh M.
National Retail & Wholesale Industry Training 101. Kym Kaptein, Foodland Associated Limited,
Council, Australia, 1995, p. 164. 84. Arthur WA.
organising others, 170 sign writing, 152 Words that sell, 153
paperwork, 30 smiling, 22 Workplace
procrastination, 34 trolley assistants, 150 agreement, 322
reducing meetings, 362 happy, 334
tackling priorities, 28 health and safety, 330
telephone, 32 V security, 372
Toilets, 122 Workshop
Total quality Value-adding, 314, 386, attending, 134
management, 310, 308 388, 390 conducting, 344
Trade magazines, 107 Value migration, 282 Writing, 66
Trade shows, 76 Variable day pricing, 190 Written communication
Training, 342 Vertical merchandising, letters, 66
against shoplifting, 228 130 memos, 68
best sellers, 140 Vision statement, 278 news releases, 402
Christmas, 103 Visitors printed word, 406
counter displays, 144 drop-in, 172 writing, 64
customer friendliness, Vouchers, 188
46
X
demonstrations, 74 W
emergencies, 237
features and benefits, 29 X Generation, 6
Wall of value, 94
methods, 218 Walk the floor, 176
new products, 108 Waste disposal records,
selling up, 204 148