Retailing Formula
By: Alok Sharma, Business Head- BASICS & GENESIS- Hasbro Clothing Pvt. Ltd.

For most of us key retail formula is 3L i.e. Location, Location & Location but now because of high competition and sky rocketing rentals instead of one element a retailer has to focus on multipoint to remain viable and profitable.

To have successful retail format any retailer has to adhere to the following 7 factors:

1. Product: Which category you will cater
Retailer has to read his product / brand offering and then do a gap analysis, with which category he can go forward and open multi stores.

2. Price:
With selected product category, what prices you should sell; mass or class. This will refine your search further. Have to do price to sales analysis

3. Location:
With decided product and there selling prices where your customer comes to buy is your target market. To shortlist location, one has to map his target market in terms of economic & demographic factors. Selling point has to be high street or in mall, have good footfalls, enough parking facility, good frontage, ground floor etc. One can have various strategy for coverage like exclusive/ selective/ intensive coverage depending on target segment. Hub & Spoke distribution is most commonly used by retailer as it is economical and helps to attain operational efficiencies before going to new territory.

4. Marketing & Promotion:
Retailer has to market his brand name in a way to highlight its offering (Brand name should have that factor) and should influence his target segment by choosing right media. Promotion helps to have more footfalls and conversion in the store. Each category have there own strategy to get best impact and footfalls effect

5. Layout and Display:
The layout of the store should be inviting and fixtures should be placed so customer gets exposure of maximum range. The use of light and highlight points should be towards your benefit so can get best stock to sales ratio. Giving right product at right time is the key, refilling fast selling items should be religion.

6. Customer Service:
In India customer service is very bad. Giving respect to customer before and after making sales is very important. Most of us know how to service them before purchase. How much staff knows about product they are selling is a big question. What promises staff makes before selling a product and how many they keep after selling it we all know.

7. Use of IT:
The back bone of any retail operation is IT, the more robust it is the more effective sales you will do. You can measure sales to stock, aging, conversion, average bill value, basket size, analyze, forecast etc and always take corrective action. The more you study the more reactive you will become..

The above-mentioned factors will gear any retailer to expand. It's very simple to expand in your home ground then spread to neighboring markets/ cities etc.

Top Twelve Things Every Successful Retailer
Must Do In 2009

1. Treat every single person who comes into your store with the love, respect, and honor they deserve as your customer! A customer in your store is like gold... even platinum. Come up with new and better ways to show them how much you care.

2. Start a short, personal, regularly scheduled e-mail newsletter. Make sure your emails are not merely product pitches or sale notifications. They should deliver interesting or valuable content to your customers tips, checklists, patterns, ideas, how-dos, articles, recipes, jokes, stories, where-to-go suggestions, and so many more possibilities.

3. Start a loyalty / frequent buyer program. The program alone will increase loyalty and make you more money. In addition, a good program makes it super-simple to get your customers contact information, especially their e-mail address.

4. Fill up your promotional calendar! Contests (lots), sales (only a couple), customer appreciation parties, classes, lectures, trunk shows the list goes on and on. Give your customers a good reason to come in and shop with you.

5. Train your staff to sell. This relatively easy-to-do task delivers a double whammy benefit. Employees who know how to sell CORRECTLY give much better customer service and at the same time will increase your sales dramatically. Happier customers, more money in the register... yeah, that'll work.

6. Keep customer-friendly store hours. This means the same hours as your local mall and big box stores. One of the biggest reasons your customers don't shop with you? You're closed when they want to buy. These days you really can't afford to put any barriers between your customers and your cash register - and a locked door is a big barrier.

7. Clean your store from top to bottom. A spanky clean store is the easiest (and cheapest way) to set yourself apart from the competition. A clean, fresh, well-cared for store looks and feels prosperous. It'll be good for your mood, as well as your customers.

8. Make a commitment to coaching your staff. The people on your staff are face to face with your customers bringing, or failing to bring, money into your register. Like a pro-sports coach, one of your most important jobs is to motivate your team and keep them performing at peak levels. Catch them doing things right and praise them. If you see problems, nip them in the bud.

9. Get a great recruiting and interviewing process in place now - before you need it. Hire only the best people. You can't afford to have mediocre or (heaven forbid) poor performers on your floor working with your customers.

10. If you don't have a POS system, get one. If you do have one, make sure you're using it to its fullest effect. This tool can make you more darn money but not if you're merely using it as an electronic cigar box.

11. Put an open to buy plan in place and run it. Managing expenses in the upcoming year is going to be a make-it-or-break-it activity for most retailers, and your inventory is probably your biggest expense. That makes running an open to buy plan a critical success activity.

12. Make a commitment to your professional education. Read, listen to tapes, talk to your colleagues Engage your brain! Retailers that learn new skills and take action will make it through 2009 stronger, better, and ready for explosive success.

GlobalShop 2009
Save the Date: March. 23-25, 2009
Sands Expo, Las Vegas

GlobalShop 2008 in Chicago was a success!
GlobalShop - where retailers and brand managers go to find retail design, in-store marketing, and technology solutions.

Be a part of GlobalShop 2009 in Las Vegas - the city that plays hard also knows retail! With some of the newest and most dynamic retail locations, Las Vegas is certainly the ultimate place to experience consumer-oriented retail.

Get yourself register here: http://www.xpressreg.net/register/glsh039/landing.asp?sc=DDI

In-store wave riding
Source: www.springwise.com

Sporting goods retailers that cater to divers, bicyclists and skiers strive to build their customer base into a community, frequently organizing outings, classes and gear clinics. The events cement long-term customer relationships and the experiences help those customers make the most of their purchases. (See our sister-site trendwatching.com's briefing on status skills for more examples of helping customers master skills.)

A Florida extreme sports store called Adrenalina has gone to the next level by bringing the excitement of its surfing products right into its shopping mall space. Enter the FlowRider: an in-store surfing simulator that creates an artificial wave using highly-pressurized water. Beginners and experts alike get to try out wakeboards (mini surfboards) right in the store. As they balance on boards held aloft by an endless barrage of water, other customers in the store can watch their antics from behind floor-to-ceiling windows.

FlowRiders can be found in water parks and even on cruise ships. But Adrenalina is the first retailer to install them, creating a powerful attention-grabbing attraction at its Miami and Orlando stores. Surfers pay USD 20 for a half-hour session, and Adrenalina generates repeat visits through club memberships that let boarders use the facility 612 times per month. Combined with a wide range of surf gear, the store lets consumers experience the surfing lifestyle, trying before they buy. Adrenalina aims to expand the concept across the US. One to replicate in other countries or for other sports?

Notice the GOGOLA sign written in Google style.
It also says INDIA and has a TM mark

Contributed by: Sandeep Mishra

Post messages, your work, enquiries, display snaps...know the industry...build your network!
Write to us at thinktank@studioatomium.com
Visit us: www.studioatomium.com