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August/September 2010

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By Tony DeMasi, editor
uit crying about the “big guys” taking over your business. Face the fact, in perhaps most cases, you can’t beat them. So, do the next best thing, imitate them! Best Buy has found that the “shop-within- a-shop” concept, something many smaller retailers, especially gift retailers, have been doing for years, is the “latest” way to make customers buy more.

After launching at 68 Best Buy stores in California in 2004, the company’s customer centric platform is planned to expand to 235 to 285 stores nationally by fiscal year-end.

Wild Oats Markets is a nationwide chain of natural and organic foods markets in the U.S. and Canada. The company operates 111 natural foods stores in 24 states and British Columbia, Canada. It recently opened its first Wild Oats branded store-within-a-store boutique with leading northeastern food retailer Stop & Shop, in Plymouth, Mass. The 1,100 sq. ft. Wild Oats boutique is the first of five planned test stores with Stop & Shop that Wild Oats will open in Massachusetts and Connecticut.

In both cases, the “shop-within-a-shop” means more than just having related merchandise in one area. It also means the area is staffed by specially trained salespeople who literally know everything about the products therein. Can you say the same about your special merchandise areas? Does each “shop” create a tailored store experience to particular customers’ needs and expectations?

Training your staff about the merchandise is free. Ask the vendors for help! Chances are each vendor with which you do business has a training film or a company representative, who can visit your store and hold class on the products and selling tips in general. Ask the vendors about fixtures, signs and other display-exhibition items. There very well may be a selection that’s free for the asking. That’s especially true after trade shows. Many vendors at temporary trade shows leave behind display items that no longer serve their purposes, or may be too cumbersome or costly to ship back. More than likely, if you can carry it out at the end of the show, you can have it gratis. Quite a few major permanent showrooms are redecorated twice a year, too. Again fixtures and signage are often tossed in the trash. Like the old saying goes, “One person’s trash is another person’s treasure.” Ask. The worst that can happen is the showroom manager says no. But sometimes a “no” isn’t final. If the showroom will not be going through changes soon, ask to put your name on a list for being contacted when it is. If the showroom manager offers you a fixture or item you can’t use immediately, take it anyway. As you well know, in this business everything eventually gets used.

What about your selling staff? Are they “big store” caliber? If no, why not? Good or bad, the answer is you. If you are not training the staff on how to sell to the maximum, then, again, turn to vendors for help. Attend marketing and management seminars at the trade shows, too. If you staff is less than stellar because you didn’t recruit the right people, then change your hiring methods, now!

Your best future employees are probably in your store frequently, but on the other side of the counter. They’re your customers. Good customers often make great salespeople. They already know a lot about the merchandise and, most importantly, they’re enthusiastic about it!

Another great method of finding sensational help is to recruit from other retailers. If you know of a super salesperson working at a nearby store, there’s no harm in calling the person and inquiring about hiring. The worst that can happen is that the other person says no. The best is that they join your team, and bring others too. One retailer told me she did just that. Although she has a gift shop, she was very impressed with a salesperson in a gourmet shop at the other end of the mall. She made the phone call, and now has a great new employee.

If you’re uncomfortable about approaching other stores’ employees, give them a reason to come to your store. Offer all mall employees a discount when shopping your store. That parade of new customers will give you an ample selection of employee candidates.

What are you doing to maintain your best salespeople? If you’re recruiting from other stores, there’s a good chance other merchants are eying your best salespeople.

More money is seldom the reason an employee jumps ship. Most often it is for better working conditions, including being treated with respect. Other popular reasons employees look elsewhere are:

• Dissatisfaction with potential career development.
• Ready for a new experience
• Tuition reimbursement
• Vacation and holiday benefits

Boredom and insecurity are two of the other main reasons good employees look for different jobs. Catch them before they fall off your payroll. Try some of these ideas:

• Offer performance feedback and praise good efforts and results
• Allow flexible starting times, core business hours and flexible ending times
• Involve employees in decisions that affect their jobs and the overall direction of the company whenever possible
• Staff adequately so overtime is minimized for those who don’t want it
• Provide the opportunity for career and personal growth through training and education, challenging assignments and more
• Communicate goals, roles and responsibilities so people know what is expected and feel like part of the in-crowd
• Encourage employees to have good, even best, friends, at work.

It’s much easier and cheaper to make an existing employee happy then it is to recruit, hire and train a new one.







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