Overcoming FTA syndrome: failure to adapt

bwalker@smartcompany.com.au — Wed, 08 May 2013 00:14:09 +0100

“The wheeze you hear from the average store retailer is profit decline brought about by shop-keepers themselves, as they relegate every aspect of retail to become subservient to price. As margins decline and costs rise the wheeze gets louder.”

I like this quote that I stumbled upon recently on the Sydney [...]

Don't believe everything they say about online retail

bwalker@smartcompany.com.au — Tue, 23 Apr 2013 14:00:00 +0100

Would you believe, dear reader, that online sales in retail are actually starting to flatten out, dare I say it, even receding in some cases more quickly than a certain political leader's hairline.

The explosive headlines of 400% growth marginally beating last month's 300% growth for online sales might also be [...]

The operational factors you can control to improve business fitness

bwalker@smartcompany.com.au — Tue, 02 Apr 2013 21:34:07 +0100

In the past weeks, we have seen yet another bout of retailers going into administration, evidence of just how 'unfit' the retail environment is out there.

Some of the many external challenges we are hearing about include:

Global retail juggernauts entering the country
Online sales and the "GST on overseas purchases" debate
Increasing rental costs
Fast-changing consumer trends
Speed of technological innovation
Price deflation

And with yesterday's decision by the R [...]

The shop without sales: The questions you need to ask

bwalker@smartcompany.com.au — Tue, 26 Mar 2013 22:56:57 +0100

The secret to a focused, motivated and goal-focused retailer is generally not found in the shop.

Seem strange or even impractical? From our experience the start of assessing whether a shop team is sales focused starts in the backroom (or manager's office).

The backroom should be the engine room of a well run motivated store and no surprises that when assessing a retail shops performance there are some tell tale signs of the business focus that lie within this small room.

The counter encounter: Clean up the clutter

bwalker@smartcompany.com.au — Tue, 19 Mar 2013 23:05:24 +0100

Have you ever stood at a retail sales counter and actually had to move the clutter away in order to pass your credit card or cash to the salesperson? This is the counter encounter that we see increasingly in retail today.

Last week I looked at some leading retailers and a casual view revealed some very poorly, cluttered counter areas. One store I recall had a counter that had at least 80% of available area cluttered with signage, add on items, staff administration, pens, paper, sna [...]

Engaged staff sell more! Seven ways to get staff selling

bwalker@smartcompany.com.au — Tue, 05 Mar 2013 22:00:58 +0100

When it comes to retail, store staff are a vital component to delivering new types of value by matching the customer problem with the solution and helping to promote the whole brand experience. The more engaged your staff are with their work, the more effectively they will represent your brand.

This week I would like to introduce you to Marguerite Bell. Marguerite leads our training and 'Effective People' programs and has extensive experience with coaching and leading retail and sh [...]

The war cry, the battleground and the chaos below

bwalker@smartcompany.com.au — Tue, 19 Feb 2013 22:14:56 +0100

"You also need to look back, not just at the people who are running behind you but especially at those who don't run and never will... those who run but don't race... those who started training for a race but didn't carry through... those who got to the starting line but didn't in the finish line... those who once raced better than you but no longer run at all." – Joe Henderson

I have had the pleasure of looking at a lot of retail business strategies (despite my tender years!). One [...]

Can strategic thinking be taught?

bwalker@smartcompany.com.au — Tue, 05 Feb 2013 21:44:25 +0100

"Nine-tenths of tactics are certain and taught in the books; but, the irrational tenth is like the kingfisher flashing across the pool. This is the test of generals. Success can only be ensured by instinct sharpened by thought. At the crisis, it is as natural as a reflex." (T. E. Lawrence, The Science of Guerrilla Warfare)

In working with many different businesses over the years there are a couple of standout reasons as to why true differentiating strategy remains "unfit" for some [...]

Dear retailer: I get it, you don't really want me as a customer, do you?

bwalker@smartcompany.com.au — Tue, 15 Jan 2013 21:33:48 +0100

Dear Retailer,

I know. And I get it. You don't really want me to be a customer do you?

All the money you spend on branding, fit-outs, advertising and trying to entice me is for another purpose, isn't it?

After all, what's the point if I can't see your point of difference in your branded offer and the cross-channel execution?

How do I do business with you if I visit one of your shops and I can't find a staff member to save my life, or I am pointed t [...]

How to play against the retail big guys

bwalker@smartcompany.com.au — Tue, 11 Dec 2012 21:44:38 +0100

Hollister, Topshop, Costco, Williams Sonoma, River Island, and Zara share one common characteristic and that is that they are fit retailers aggressively embarking on international expansion. Australia is an attractive destination.

So the issue for me is not globalisation of retail per se, this is as inevitable as night follows day. The world gets smaller by the minute with transglobal flights getting shorter, the apex of global power shifting rapidly, technologies changing the very [...]

Get ready for the post-Christmas cashflow crunch

bwalker@smartcompany.com.au — Tue, 27 Nov 2012 23:45:20 +0100

Over the last few years we have been used to hearing comments such as 'credit is necessary'. And now we hear industry leaders talk about the two core disciplines of retail being control of working capital management and control of cash.

Cashflow management is essentially the difference between all the money that is spent by business (outflows or uses of funds) and all of the money that flows into the business (inflows or sources).

The principal benefit of good cashflow plan [...]

Is customer service overrated?

eschmidl@hotmail.com — Tue, 13 Nov 2012 21:20:24 +0100

The role of 'fit' customer value is the subject of numerous articles, presentations, company values and leadership talks.

And the subject has kept many a CEO and consultant gainfully employed. Yet I do wonder if the broad term of customer service is somewhat overrated?

The purpose of a business is to create and keep a customer.

Perhaps I am a little sensitive to this topic; although what I see pass for customer service at the customer touch point is often little mor [...]

Australian retail is no longer an island

eschmidl@hotmail.com — Tue, 30 Oct 2012 14:00:00 +0100

"And while the law of competition may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department." – Andrew Carnegie

Being physically isolated has had its advantages for Australian retailers over the past decades. With, little choice but to spend with onshore retailers, Australian consumers have had to contend with our own DVD region codes, our own clothing sizes, our own seasons and our own internal distributio [...]

Strong CRM requires a good dose of CSM

eschmidl@hotmail.com — Tue, 16 Oct 2012 21:44:59 +0100

Is there nothing better than hearing retailers talk about the new age of the customer? Developing their loyalty programs and, of course, the golden implementation tactic that is enhancing their customer relationship management platforms.

Some CEOs may define their reign as beginning with the improvement of customer service levels, charging into the fray with quixotic like fervor; galvanising the troops to a fever pitch where all that matters is the customer.

While this moti [...]

Not drowning just waving – Are we spending less or just differently?

eschmidl@hotmail.com — Tue, 02 Oct 2012 22:37:06 +0100

"I have been up against tough competition all my life. I wouldn't know how to get along without it." – Walt Disney

Darrell Lea, Ojay, Payless Shoes, Brown Sugar and other retailers who have become clients of our country's administrators may have many various reasons for their decline, although there is one common feature that pervades all of their situations, they simply failed to adapt.

I am reminded of the adaptive strategies of a fit company like Australia Post who, face [...]

Don't blame the referee; let's concentrate on the game plan

eschmidl@hotmail.com — Tue, 18 Sep 2012 23:19:36 +0100

Study the truly great business performers in retail and other sectors and you see some startlingly simple things in common to their success.

A strong focus on the end game
Passionate engaged cultures (the internal brand)
A fundamental belief
Speed to market
Agility in decision-making
Investment in continuously improving whilst focusing with laser-like intensity on all the 'basics' of their business

Building great independent systems and frameworks across all cross-channel [...]

The fit approach to recruiting the right retail staff for your business

eschmidl@hotmail.com — Tue, 04 Sep 2012 23:08:08 +0100

Imagine being in the situation where you rarely have to recruit staff for your shop floor. Where potential employees approach your business and you have the power to make choices.

"Fit" retailers, who find themselves in this enviable position, have better success on the sales floor. Why? Because prospective employees already want to work for you, without persuasion, and have a "pre-existing passion" for your business.

To become an 'employer of choice' you need to put strateg [...]

The 'blandification' of our retail offer

eschmidl@hotmail.com — Tue, 21 Aug 2012 22:21:35 +0100

"Sign, sign everywhere a sign
Blocking out the scenery breaking my mind
Do this, don't do that, can't you read the sign."

These words, sung by the Five Man Electrical Band, really resonated with me as I was writing this piece. And it follows the comment someone made to me recently about the crushingly boring sameness in some of our retail offers – or the "blandification of Australian retail" as he called it.

And he may be right. The "blandification" is all about t [...]

Tips to avoid the pitfalls of discounting

eschmidl@hotmail.com — Tue, 14 Aug 2012 14:00:00 +0100

Recently embarking on a shopping mission, I visited two major city shopping centres. Without exception, every retailer I visited was discounting in some shape or form.

I acknowledge competition is fierce out there and we know from the recent Australian and New Zealand Online Shopping Report that offshore online shopping in Australia has increased by 20% in the last year to $7.2 billion, now representing 45% of Australia's total online shopping spend.

Add to this mid-season, [...]

Romancing the brand

eschmidl@hotmail.com — Tue, 31 Jul 2012 23:50:15 +0100

Although romance may not be the first thing that comes to mind when you think retail, there are some striking connections. 'Fit' retailers create real, strong and loving relationships with their customers. They have fun with them and make each and every customer feel like they are their number one priority.

Apple is the first and most well known brand for the emotional human connection it has with its customers. They have created products that are bought for the love of technology; [...]

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