Retail Science: Adjust, Renew and Prosper

John Johnston

Fine tuning your spring purchases and changing your spring store plan enters a critical stage during tradeshow season and the early-buy period from suppliers. The reason for change is simple: The products you’ve bought in and inventoried need to sell, and profit margins must meet expectations. Change is a constant for sales growth, and resistance to make needed improvements detracts from retaining and gaining new customers.

Manufacturers have changed the playing field through the years, with some focusing more on box store development than independents. The question is often whether to stop promoting a national brand and promote an independent-only brand instead. In the heat of the moment, it’s easy to quickly dismiss a vendor line out of anger, but sales could suffer unless all team members in the store deploy a keen strategy.

When you dominate in a certain category at your store, you put that dominance on display like no one else in your region. You represent that category with an expansive breadth of brands and depth of offering that consumers willingly travel greater distances, passing by others to shop your store. It’s the allure of the “category killer” that builds awareness.

Long ago, the chemical, tool and power-equipment aisles were owned by the independents throughout the country. That is, prior to the box store explosion in the early 1990s. Independents validated brands and products only to have their profits stripped out by box stores selling at low margins. How do we adjust to maintain a strong offer and preserve profits?

Assessment
What isn’t selling on your shelves and why? Is it price? Are merchandising capabilities compromised by limited shelving options? Is it because of product allocation? Are sales suffering because of a lack of a visible price and signage? Has selection and inventory declined to the point that you don't have the needed products to satisfy your customer needs? Each of these questions is a factor in your decision to stock or not to stock.

Adjustments to the way you merchandise and place product in the store can positively impact your sales. If major brand changes are in the plans, are you defining how you’ll position them to sell to your customers? Product allocation, advertising, product knowledge and especially point-of-sale signage all play important roles in driving customer interest and, ultimately, their purchases.

Category
Notice how department stores align all the needed categories associated with, let’s say, a dress purchase. Purses, shoes and jewelry are all nearby. Cosmetics aren’t too far away either. Look at your categories the same way. Are your products combined or nearby to make shopping your categories easy? Do you sign the department so customers can see it from a distance and allow movement to that shopping zone? A formula that I recommend is that today’s consumers shop by NEED, by MANUFACTURER, by DELIVERY OR SIZE, and by PRICE, in that order.

Retailers who are category killers have everything consumers want and more. It’s become increasingly difficult to source certain products you might want. A sharp eye is needed to find these unique products beyond normal distributor trade shows. Most suppliers stock only what’s written at their events, and that makes ordering in advance of the season important to the retailer and the distributor buyer. The opportunity to buy non-stocked items may uncover a unique category that’s only available in your store. Each spring, take one or two major categories and do your best to concentrate on making it a great selling environment with the best possible selection. Ask for the input of your managers and customers, and create a wish list of improvements.

Brand Dominance
When it comes to having a complete look for their brand, some manufacturers are better than others. Try this exercise in your store: Stand at your category and walk 10 to 12 steps away from the shelf. If you can read what the label says and understand why it’s in the assortment, keep it. If not, discard it and start over. Determine which brands (and products) fit your store’s image and allow the shopper to know what you’re offering quickly and definitively.

Your Own Fixer-Upper
Physical upgrades to store fixtures can provide a huge boost to sales and shelf performance. Implementing a new look (or remodeling existing fixtures with new wall board and fresh paint) can drastically amplify the success of today’s colorful packaging.

Cleanliness is also not to be overlooked! Today’s national retailers make it a priority to keep register and display zones clean and unobstructed. Some national stores like Urban Outfitters are also providing some unique looks with fresh plant material to soften the selling environment. If your fixtures are 15 to 20 or even 25 years old, a makeover doesn’t cost as much as replacement, but you’ll bring more awareness to your products and increase store penetration.

Upgrading Your Fleet of Carts
I'm not an advocate of little red wagons like the Radio Flyer brand in plant yards and greenhouses, although they have their place for charm and uniqueness. It’s the functionality that confounds me. These wagons hold very little in plants, flats and products. In the supermarket, consumers head to the checkouts when their shopping carts are full. Why would a garden cart be any different? Two-tier carts hold significantly more and, even though it may seem costly to get ones with flat-free tires and even children’s seats, these carts pay for themselves usually within the first month of usage. Invest in your plant-selling future by adding a planned number of carts for two or three years in a row; the return on investment has been shown to be solid.

Increasing Your Shopping Zones
Adding more covered shopping areas to plant yards and spaces adjacent to greenhouses and stores is one of the top ways to increase sales. If weather has damaged the shade cloth or your nursery yard groundcover fabric, take care to replace it. The return on investment is among the best in our industry. Anytime you can stretch the footsteps of customers and protect them (and your plants) from the elements, everyone benefits!

Plan to look into these capital improvements to make your customers feel more comfortable in their surroundings. They’ll spend more time to spend more money at your store, next season and beyond. GP

John Johnston is Retail Education Manager for Griffin. He can be reached at jjohnston@griffinmail.com.