Independent retail consultant, Liam Kelly dispels some of the persistent truths of successful retailing
Over the years I have learned the importance of listening to clients. Hearing them speak and understanding their words and body language can tell you a lot about them and how they think and work. This is especially true of owners and managers as it gives you a fair idea of how the business is run, what their priorities are and what drives or motivates them. Some tend to spout marketing mumbo-jumbo and guru-speak they have picked up from small gods and one too many self-help books or videos. Others tend to tell you what they think you want to hear, avoiding honesty as if lies will help me fix their business and solve their woes. After a while, your ears and brain adapt to separate truth from fiction and reality from buzzwords and phrases.
During these conversations, there are a number of expressions and sentences that cause alarm bells to ring in my head. No real thought has been put into the words that the
speaker is saying and they are just repeating something they have read or paying lip service to some glib consultants who have no concept of what it means anymore to work in the real world of retail.
If we read, hear and then just repeat everything we think sounds important we will end up like those that share nonsense and lies on social media sites, or those that speak their prayers in a trance-like state in their place of worship without ever listening to the words and what they mean. Understanding, and in some case questioning, what you have been taught to say is a crucial part of life lessons.
No doubt I have been guilty of the same transgression in the past, but age and a good sprinkle of cynicism have made me question most of what I hear and read these days.
So here are 10 statements that cause me to raise my eyebrows and feverishly write notes if they come up in a conversation with a client. There are many more too, but I think these will get my point across.
1 – THE CUSTOMER IS ALWAYS RIGHT
A ridiculous statement when taken out of context, as the customer is rarely right. Anyone who has worked at the coalface of retail can attest that the customer invariably gets things wrong and some will even go out of their way to deceive you. What this statement should mean is that in retail you need to empathise with the customer, get to the heart of the issue and apply problem-solving skills to reach an amicable resolution for the business.
2 – EPOS SYSTEMS ARE JUST OVERPRICED TILLS
Spoken by those who don’t put the time, effort and understanding into their systems. They don’t input the correct information, nor do they harangue their supplier for the reporting ability that would be meaningful to their business, and then complain about the value of the software! If you are not getting useful information from your EPOS system then you are failing as a businessperson.
3 – IN 10 YEARS ’ TIME REAL SHOPS WILL ONLY BE SHOWROOMS
Although there is no doubt that online selling is increasing year on year, thinking that bricks and mortar shops will disappear or alter radically in the next few years is a fallacy in this sector of retail. If anything, webshops will become the showrooms for real shops, at least in the realm of garden centres and the type of product they sell. Indeed, we should encourage websites to become the high street windows of our businesses, while making the most of the sales they can generate.
4 – WE ALWAYS ENGAGE THE CUSTOMER
Although this is admirable at the point of entry, it can be a source of tension in many retail environments on the shop floor. Many customers want to be left alone until they feel the need to interact with you, and that might be just at the checkout. Greeting a customer is one thing but being constantly harassed with false smiles and leading questions is a sure fire way of losing customers.
5 – WE HAVE A GREAT CUSTOMER SERVICE DEPARTMENT
Surely the whole store is a customer service department? To have just a few staff members trained in the art of so-called customer care is a poor use of knowledge and resources. Do all staff members not know how to deal with any customer issues that crop up? They should be empowered to deal with all but the most serious issues.
6 – SOCIAL MEDIA MARKETING IS THE WAY FORWARD IN ADVERTISING
This is perhaps true for some consumer goods, but it is not the way to communicate with the vast majority of your customers. Most will still visit you either from hearing about you by traditional methods of advertising or by word of mouth. Social media has a place in your marketing plan and budget but don’t put too much time, effort and money into it to the detriment of other methods of communication.
7 – IT’S ALL ABOUT SUPPLY AND DEMAND
In the most basic sense of the term, this is true, but it’s worded incorrectly. It should be led by demand and not by supply, and that demand needs to be generated by either external marketing forces or, more importantly, by internal merchandising, promotions, and by the product itself. A business needs to create that demand and then make sure to have the supply logistics to back it up.
“If you are not getting useful information from your EPOS system then you are failing as a businessperson”
8 – BUDGETS AND TARGETS DRIVE A BUSINESS
These are just aspirational figures, and they can be detrimental if a budget is stuck to rigorously without taking into account outside factors that could mean you will sell more than you predicted. Targets are equally limiting insofar as reaching a target can mean resting on your laurels instead of pushing sales forward. Both need to be fluid and constantly changing to react to actual sales and situations. Carpe diem indeed.
9 – THE SALES TEAM ARE THE MOST VALUABLE PEOPLE IN MY STORE
Absolutely not. If you wanted to hold a certain department up on a pedestal (I’m not suggesting you do), it should be the purchasing department. They are the ones who need to have vision, take the risks, set the prices and who tend to get the blame if stock sticks. Salespeople are important, but it’s those in purchasing who are key to the success of any retail business, and they rarely get the respect they deserve.
10 – MY WASTAGE IS ZERO
This is one of the statements that rankles me the most, especially when it’s said with an air of pride. If you have no waste, you are not buying enough product or taking enough chances. Managing wastage and margins are other, separate issues but if there isn’t something ending up in the clearance area or the skip then you need to look at your purchasing and start taking educated risks.
I am not suggesting that there isn’t a grain of truth in many of these statements but repeating them verbatim and believing in them is a sure fire way of ruining your business. Think about what you are saying and why you are saying it, and most importantly, how it can be impacting on your business.
As with life in general: question everything, believe nothing. ✽
 Liam Kelly – Since establishing Retail Services & Solutions in 2007, Liam has become one of the most influential people on the retail side of Irish horticulture. His knowledge of the mindset and ethos of those in this sector,combined with his problem-solving ability, experience, and hands-on work ethic, make him uniquely placed to offer advice and help to those who need it most. Key to his success is his knowledge of purchasing, pricing and sales combined with his understanding of layout, signage and merchandising, and how the interaction of these can lead to increased sales and profits. His focus is on garden centres, nurseries, hardware and DIY stores, where discretion, honesty and unbiased opinion are crucial and appreciated by those who secure his services. Liam can be contacted at 086 822 1494 or 059 913 0176 or via lksolutions@eircom.net |
