Bad Habits for Good Retailers to Avoid

1
Bad Habits for Good Retailers to Avoid

• Karen M.Videtic
• Associate Professor

2
Purpose of this workshop

• Summarize critical decisions that most merchants
  avoid or forget.
• Become aware of the pitfalls of these
  merchandising decisions.
• Recognize our habits.
• Provide possible solutions.

3
Failing to analyze important sales data.

• What you can learn from your cash register
• Sales distribution patterns
• Sales determines how much to buy and when to have
  it delivered
• Sales by classifications
• What you should buy
• Gross margin by class
• What classification is making you money which
  class should you not carry
• Sales by vendor
• Which vendors provide most of your sales
• Markdowns
• By classification
• By vendor

4
Trying to be all things to all people.

• Tailor your assortment to your customer.
• IF you cant do it right, dont do it at all.
• Do have some one-of-a kind pieces for display or
  conversation but thats it.
• Recognize trends early and get in the running
  and out before it has past its time.
• Dont carry merchandise that cant generate
  margins.

5
Failing to manage your inventory.

• Use historical data to determine what to buy.
• Dont buy in large quantities to save money.
• Buy from vendors that ship quickly and can fill
  re-orders.
• Dont stop buying if youre overstocked keep the
  good sellers coming!
• Turnover Return on investment

6
Forgetting to visual merchandise our stores.

• Have a visual merchandising plan for the entire
  store.
• Your most profitable classification should be on
  the right as you enter your store.
• Rearrange your store every week to keep
  merchandise looking fresh.
• CURB APPEAL
• Trendy items should be front forward.
• Housekeeping is important.

7
Taking markdowns in an untimely manner.

• Markdown merchandise while it is still in season.
• Make markdowns significant to motivate your
  customer.
• Move markdowns to the back of your store.
• When assortments become broken or there are few
  sizes or colors left, mark it down.
• It its more than a year old, give it away or
  take it home!

8
Buying what you like not what your customer
likes.

• Have a 6 month dollar plan and an assortment plan
  before you go to market.
• Dont write orders at market.
• Ask your sales rep who else has bought it.
• Do you have the same customer?
• Ask for exclusivity.
• Keep a list of customer wants at the cash
  register and take it to market.
• Do your homework!

9
Pursuing customer satisfaction rather than
customer loyalty.

• A 5 improvement in customer retention can
  increase profitability between 25 and 85.
• It costs 10 times more to replace a customer than
  it does to keep her.
• 80 - 90 of marketing dollars are spent getting
  new customers.

10
Failure to train employees.

• What is great customer service?
• Employees should treat customers as guests in
  their home.
• Product knowledge do they know more than the
  customer?
• Sales techniques
• Features vs. benefits
• Narrow selection
• Customer approach

11
Failing to delegate.

• You cant do it all nor should you try to.
• Well trained employees have much greater
  potential than we give them credit for.
• Results are importantthe path is irrelevant.
• Learn from your employees they talk with your
  customers.
• Empower employees by giving ownership of their
  job.

12
Decreasing promotions/advertising and staff
during slow times.

• Maintain customer relationships during slow
  times.
• Be more creative.
• Remember that price is not the only motivator.
• Keep employees loyal and empowered.
• Plan for the future.

13
Failing to creating a positive work environment.

• Role Modeling
• Employee development
• Team Building
• Job sharing
• Leadership role
• Goal setting
• Empower employees to make decisions, not follow
  rules.

14
What are your bad habits?

• Thank you and please add to my list for future
  presentations!