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n tough economic times, getting the fundamentals of merchandising correct is more important than ever. The essential components of successful operations are people, presentation, and product. Each of these elements is intertwined and each requires dedicated focus and attention.
People
In-store staff must be educated about the products they are selling. Customers expect to be told where products are made, what they are made of, and why they are a good value. But that's not all. Sales staff also need to know what products make the highest margin and which products need to move quickly. Too often owners are reluctant to involve theirfrontline employees in this level of detail, but it is absolutely essential to do so.
Empowering employees with knowledge gives them a greater sense of confidence and helps avoid anger, frustration and a sense of hopelessness that often comes with uncertain economic times. If they understand what they need to do to keep the store operating, they feel more in control of their own destiny and more motivated to maximize their productivity.
Tough economic times also demand that owners and sales staff be actively clienteling — maintaining a database of loyal customers and keeping them engaged. When new shipments arrive, let them know. When items go on sale, make them aware. These communications are best done via telephone, but email can also be effective.
Presentation
Creating a visually appealing store says a lot to customers about how passionate the owner is about their merchandise. When owners are tired and burned out, it translates into a boring rack of clothes. When they are engaged and passionate, it translates into vibrant visual displays and current fresh designs.
Owners also need to understand how merchandise displays benefit from their location within a store. Research shows that customers instinctively look to the right side of the entrance first. This area needs to feature the fastest moving and most engaging merchandise. At every turn thereafter, shoppers need to be met with compelling displays. Owners also need to understand how much income each turn is producing. If a display does not sell, remerchandise it.
Consumers are shopping with less money and are increasingly concerned with where they spend their dollars. In boom times, a few blown light bulbs and stale store displays may not have mattered. But today, if the store is not immaculate and products not displayed with care, it shows, and consumers will choose to go elsewhere.
Product
Having the products that people want to buy is fundamental, but being successful requires proper inventory management, good timing, and smart pricing.
Today's environment is all about value. In many ways, customers are pulling back from big ticket items and yet are not ready to sacrifice luxury. This trend translates into higher demand for accessories and basics; for instance, instead of buying six high priced leather jackets, buy 40 designer t-shirts. The lower priced items are far less risky in this economy.
Owners need to be smart about pricing complementary items. Consider selling one piece of an outfit at steep discount — perhaps even at a loss. Shoppers will be compelled to buy the entire outfit because of the value they perceive they are getting with the discount on the one component. In today's climate, shoppers also expect a sale rack. If none exist, they may suspect that the products in the store are all over-priced.
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| Recently, the 3 P's were applied to Modern Times in University Mall (Chapel Hill, NC). Over two days, the store was completely remerchandised, repainted and refreshed. The response from shoppers has been great. |
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