Recent headlines about the retail industry have been dramatic and negative. The impression you get from them is bleak — online shopping is rapidly destroying a crucial part of America’s culture.
Yes, people will continue to shop when they are doing well economically, the stories say or imply, but they are also increasingly reluctant to shop and buy products in stores.
The impact of such a cultural change would be dramatic. Forbes magazine’s article about 3,591 stores closing estimates that at least 50,000 people will lose their jobs because of the announced closings. The New York Times article about the retail industry being at a tipping point says “huge numbers” of industry employees will become as “economically unhinged” as manufacturing employees have become. The National Real Estate Investor article about too many retail stores reports that the real estate industry is “reeling” because of the store closings.
Is it possible, though, that the headlines and stories are misleading or flat-out wrong? Is it possible that retail stores could, in fact, thrive in the future? Are there tips that retailers, large and small, could follow that will significantly improve their chances of succeeding?
“Yes” is the answer to the above three questions. Retailers can succeed — and have succeeded — without closing stores and making online sales the focus of their business.
Build Memories, Not Wardrobes
Historically, people shopped at retail stores to buy stuff because they needed stuff. That’s no longer the case. If you want to buy stuff, you can shop online, order your stuff online, and request that it be delivered to your home or office.
Given the change in Americans’ shopping habits, Wealth Authority has 10 tips for store managers and owners:
1. Show Your Expertise:
Telling customers your products are great is less impressive than showing you have expertise in what you sell. Showing your expertise could mean in-store presentations or online advice columns. If you sell tools, you might, for example, host a class in how to repair homes, cars, etc.
2. Host Major Events:
Besides classes, your store should host fun events that draw crowds and get people to talk about your store. An arts and crafts supplies store can host an arts and crafts contest for children.
3. Sell Fewer Products:
Offering a wide selection of products online is one thing, but people who go to stores want beneficial advice on the products you are selling there. Besides, selling more products requires more space and more salespeople.
4. Focus On Service:
Your employees should be very knowledgeable about the products that are in your store. Thus, training five employees to understand your brand inside and out is preferable to hiring 10 typical salespeople. They should also be instructed in customer relations, and be conscious of always introducing themselves and offering their help.
5. Reward Team Performance:
It’s not uncommon for shoppers to get as much information as they can from one or more salesperson, continue to shop at other stores, and then make a purchase online. Thus, the knowledgeable salesperson doesn’t get a commission. Rewarding all employees for the store’s sales and profits might be a better way to spur individuals to perform better than commissions for individual sales.
6. Coordinate Online And In-Store Sales:
Your website should promote in-store sales, community events, classes, etc., and your store should promote the website. In-store brochures that promote the how-to and advice articles mentioned above could result in customers spending more time engaging with your store.
7. Change Your Displays:
All of your displays should “tell a visual story,” recommends the article “10 Retail Experts Share Their #1 Tip for Marketing and Growing Your Store.” Visual stories attract customers. Changing the visual story periodically will give prospective customers the feeling that a second, third, etc. visit will be an experience.
8. Survey Your Customers:
You can’t read minds! How do you know what your customers want unless you ask them? Sure, sales tell part of the story, but maybe you sell shoes and there’s a new fad in shoes that you’re not aware of — or not aware of its popularity. The surveys could be informal or in writing. The more you know, the more you’re likely to offer the products and services customers want.
9. Keep “Talking” To Your Customers:
You should keep track of individual customers — what they buy, what products they’re interested in, even their favorite sports teams if that’s what you talked about. Then, you should contact them when you have information that’s beneficial to them such as a new product. Any e-mail or social media message be directed to the individual as an individual as if you’re speaking with them directly.
10. Have Fun!:
Customers sense when store employees lack passion or optimism about their products and services. When you’re happy, they’re apt to be happier — so make sure your employees are happy! That might mean giving them more work breaks or parties or rewards. Just do it!
American business culture has changed dramatically in the past generation or two, so the lessons you learned in business class might be obsolete. In fact, today’s tips might be obsolete within the next several years.
Perhaps, the old adage that “location, location, location” is the key to business success should be changed to “adapt, adapt, adapt.”
Regards,
Ethan Warrick
Editor
Wealth Authority
