Strategy #1: Conduct a Comprehensive and Objective Store Evaluation
Why Conduct A Store Evaluation?
The evaluation is a method in which the store owner and staff can quickly identify potential problem areas both inside and outside the store that may be reducing 
potential turn-over, which results in lost sales and profits. It’s also a potential way of identifying problem areas that may be causing lost customer base of existing and new customers.
A regularly planned evaluation will condition yourself to see your store objectively (the way customers see your store). In other words, to force you to take off the rose-colored glasses and see your store as it really is. Since most retailers “live” in their stores, they become too acclimated to their environment and eventually never see the “trees for the forest”.
An evaluation helps the store owner develop a game plan that will enable them to correct any problems that may have been identified on a timely and scheduled basis. It will give them time to make adjustments before the “smoke” turns into a “fire”.
Once the evaluation is completed and acted upon, will give the store owner the ability to maximize sales,(especially impulse sales), to enhance the overall image of the store. It will help to create greater loyalty among existing customers while attracting a growing base of new customers to the store.
To create a positive “First Impression”, in the eyes of every shopper that walks into their store-everyday!
Strategy # 2: Take Control! Create a Customer Traffic Flow Pattern Throughout Your Store
What Is Traffic Flow?
Traffic flow is a retail concept that seeks to separate “customer space” from retail selling space. Customer space is that area a shopper uses to move from place to place in your 
store. What you as a store owner must decide is, is your store “customer controlled?” or is it “store controlled?” In other words, does your store tell the customer where to travel and what to see, or does your customer go where he or she pleases?
Traffic flow is the life blood of retail store health and success. Effective traffic flow (the loop), will provide opportunities for every shopper to be exposed to all key merchandise areas of your store. Without a designated traffic flow pattern (the grid), many customers will get accustomed to your environment so much, that they generally travel down the same path on each and every visit and return to exit out the same path.
Paying careful attention to your store’s traffic flow patter in on of the most important considerations a retailer will be one of the most important considerations you will ever make. Neglecting this critically important design element will result in dissatisfied customer, lost sales and decreasing profits.
A traffic pattern can be developed as simple as applying commercial aisle tape by 3M, number 471-2” wide to any hard surface floor material. Those with fully carpeted surfaces can create their traffic loop in their store by cutting a path in the carpet and installing vinyl tile squares.
Strategy #3: Invest in Quality Fixtures
Fixtures are an “Investment” not an “Expense”
In order for any store owner to be successful in merchandising must first have the right tools in which to merchandise. Those tools are fixtures of top quality and possessing the 
three main qualities of a “good” fixture:
- Adjustability- The ability to adjust horizontally in small increments to be able to maximize cubic space in the retail environment. Example: Shelving on a gondola unit or glass shelves in a showcase.
- Flexibility- The ability to adapt to assorted accessory add-on equipment to adapt to product changes within a merchandise category, Example: shelves with peg hooks with wire baskets on slatwall or peg board.
- Mobility- The ability to be mobile with the least amount of effort by one individual. Example: Garments four way rack with casters, glass tower and base with casters.
Strategy #4: Practice the Seven Basics of Merchandising
Merchandising Creates Sales
Effective merchandising of your products will do more to increase sales than any other single thing a retailer can do. Merchandising is a term that describes the promotion of merchandise sales, by coordinating production and marketing, and by developing advertising, display and sales strategies.
Merchandising is both a science and an art. To effectively merchandise your products you must understand something about the psychology of buying, your customers, the products you sell, and how those products should be displayed in your store. To maximize your efforts each and everyday you’re open for business, you must learn and adapt these seven basics of merchandising as if they were a part of your “soul”!
- Every day is Grand Opening Day! The store must be Clean, Clean, Clean! No Excuses!
- Front face your products daily! Each and every product on a shelf or hook must be brought forward to give the impression of “fullness”. Don’t leave the impression of your products being half-full or half-empty!
- Spread to fill! This technique helps maintain that “full” in-stock look each and everyday. By taking excess merchandise next to an empty hole on the shelf or empty peg hook and pulling product from behind to fill the hole, will leave the impression you are always in stock on your products. Don’t wait for the “empty hole” to fill itself waiting for the next order to come in, there may be another UPS strike!
- Color block your merchandise! Color blocking is a technique that takes advantage of your product’s packaging and color of loose products such as, apparel and merchandising them in a vertical fashion rather than horizontal. Since customers are first attracted by color, then style and price is last, you’ll want to take advantage of this technique where possible in your store.
- Practice the two finger rule! The two-finger rule refers to a technique that enables you to maximize the use of your vertical display space on shelves and other fixture systems. The two-finger rule states that your products are space so that the top of the product on a shelf comes within two finger widths of the bottom of the next shelf above. This will vary as your products do because of non-uniformed packaging. Your goal is to utilize as much vertical space as possible for the display of your products.
- End-cap merchandising! End caps generally refer to the end unit on a gondola type fixture with a base. End-cap merchandise should be one-two “like” items and no others. End-caps are your feature, promotional display areas in the store. The goal is to use the end-cap display to set off the featured products from all the other products. End-caps are used for general merchandise as well as sale or promotional products. Change end-cap merchandise every 2-3 weeks as a golden rule.
- Tonnage, Seasonal and Promotional Merchandising! Tonnage is a retail term that refers to buying large quantities of an item and creating a special merchandising display unit. Effective tonnage displays will require commitment of buying large quantities of product. These products are generally boxed goods and should never set on the sales floor. Construct a raise deck or platform to raise the product off the floor, which shows the customer you respect the products you sell and in turn they will buy the product. Just look at what the grocery stores do to their tonnage displays-how often do you buy from these units?
Merchandising is both a science and an art. Some of the most effective merchandising techniques available to you involve nothing more than common sense. Others involve some study, learning and application. Do not hesitate to work with a professional store merchandiser to become familiar with the specific techniques that will benefit your stores success.
Strategy #5: Hire, Train, and Retain Quality Employees
Developing a Winning Team
Winning stores recognize the importance of developing a strong team of dedicated, productive and customer-oriented employees. Therefore, as you consider the human resource needs of your store, you must be very clear in communication your expectations to every potential employee. Before you advertise to fill a position vacancy you must first have thought through your expectations for the position and for the person performing the duties of this position.
Prior to hiring any employee, you should give serious consideration to addressing the following tasks.
- Develop a realistic assessment of you staffing needs for the next six to twelve months.
- Develop specific job descriptions for every position you anticipate filling.
- Believe that employees are the “most valuable asset” in your store.
- Attract the “best” and “brightest” talent. How? By better hiring practices, developing results-oriented training, recognize and reward for results, and believe in “People-Centered Leadership & Management”.
Strategy #6: Develop and Implement a Policies and Procedures Manual
Why you need an employee handbook!
As a business owner, you should make the creation of an employee policies and procedures manual one of your top managerial priorities. The purpose of the policies procedures manual is to provide your employees with a comprehensive summary of your company’s policies, principles, standards, expectations and procedures. It will address important matters such as; define company policies, to inform new hires, to establish uniform standards, to serve as a resource for answering employee questions, to promote teamwork, to maintain compliance with applicable laws and to facilitate employee orientation programs.
To create proper inventory turnover, you must first educate, teach and train your staff to be the best that they can be. They must know where they stand within your company’s frame work and what their specific duties, responsibilities and expectations from you, are going to be. It becomes absolutely necessary that every store operation or business, no matter what size, establish written policies and procedures manual.
Strategy #7: Make Quality Customer Service Your #1 Priority
Service, Service, Service!
Need I say more? Without customer service, you as a retailer will be out of business in a “heart-beat”! If you don’t take the necessary time and energies to train your staff on who pays their salary, and develop their skills in providing the best customer service available, you’ll be gone in a, “heart-beat”! Everything you or your staff do in your retail environment, is under the scrutiny of the customer. They will literally judge their shopping experience solely on the way they were treated that day. If they felt neglected, insulted (through the five senses) or disappointed in their shopping experience, they will probably not return. Can you afford the loss of a customer, (per day)?
Train your staff to be service oriented individuals with each and every customer and you will sell more products. Customer service is the one price customers will always be willing to pay for.
Strategy #8: Practice ‘Perpetual Remodeling’
Define ‘Perpetual Remodeling
Perpetual remodeling is an on-going remodel program established after you have make a major remodel to keep your store looking its best each and every year. By constructing something new on the outside or the inside or your store, you’ll always be considered a “destination” store, that customers want to visit because something new has happened and they don’t want to miss out. All too often when a remodel is complete, it isn’t touched again for another 5-10 years. When this happens, the store starts sliding backwards in image, style and newness which causes customers to start shopping elsewhere. Customers want something new and fresh. That’s why many consumers buy new cars, houses, clothes etc., every couple of years to make them feel good about themselves. The customer will seek out those retail outlets that offer change, variety and accepting it as a way of life.
If you don’t change a little something in your store each year, your products are going to go to sleep. Your customers will become as accustomed to your store environment as you. The more acclimated they become, the less they see when shopping your store which means fewer sales, especially impulse sales. So, believe in that change is “good” as long as it’s controlled change with a plan every year and a budget!
Strategy #9: Plan for Future Remodels
Budget 1-3%
Each and everyday you open your doors for business you are making sales, (hopefully)! Out of those sales you should, without thinking, take out 1-3% of gross sales to put away for your next major remodel or to do perpetual remodeling. Keeping your store it great physical conditions will generate a tremendous amount of sales that could never be experienced by those who never remodel or do it every ten years.
This 1-3% could be used for many purposes including, on-going building repairs and maintenance, fixture replacement and repairs, new employee training, new employee uniforms and store expansion. Because everything “costs more than it costs”, you will have the needed funds for what needs to be accomplished. It sure beats having to dig up a loan somewhere! Save, Save, Save for that rainy day, you’ll be better prepared to react to changes to make your store the “Leader” not the follower.
Strategy #10: Make Every Day Grand Opening”
What is Grand Opening?
Grand Opening is more than what it appears. Most people store owners and staff alike, believe Grand Opening is a “one-day to one-month” event and then it’s over. They 
couldn’t be more wrong! Can you remember your last Grand Opening and what it was like, excitement, newness, fresh, clean and sparkling?
Can you tell me if your store today still has that same feeling? Probably not! In most cases, Grand Opening is just an event just like a holiday, it comes and it goes. Well, if you’re the “smart” retailer who wants nothing but sales will think and believe in that Grand Opening is everyday!
There isn’t any justifiable excuse for anyone in retail to let their store slip back into the dark ages after their initial Grand Opening ceremonies. It must be on everyone’s mind each and everyday that their store is the best that it can be and to say to every customer, “today is Grand Opening”, come on in and shop. Let the customer enjoy you Grand Opening on every visit and they will reward you by purchasing more of your products.
It’s up to you-”Success or Failure”? You Hold the Key!
Copyright © 2009 James Rasmus All Rights Reserved.
