With the July 4th holiday weekend upon us (for my U.S. colleagues), lakefront picnics and boating ventures are on the mind.
But as retailers, there doesn't seem to be smooth waters awaiting us. Pundits are predicting rough waters ahead for the back-to-school season. And they are suggesting we all keep a close eye on those seasonal sales as a predictor for the holiday season to follow.
So are we to do? It IS the time to celebrate our independence, after all! Can't we celebrate our freedom and exert a little influence on our situation in this economy? Certainly!
In reviewing some retail industry magazines recently--I do that...I'm a nerd that way--I ran across two cover stories from the NRF Stores magazine (www.stores.org) that combine for some interesting thoughts on getting through these tough times. In case you want to find them and read the full pieces, the articles are "Navigating the Road Ahead: What's next for retail in '09" and "Something's Got to Give: Cash-strapped customers are cutting back on (almost) everything" (Dec. 2008 and Feb. 2009 , respectively).
Following are some points from the articles and my two cents (of course) for campus stores.
1. Shoppers are looking for an antedote from the gloom. The retailers that can alleviate some of the distress (or drown the pain) being caused by this economic slump will win the sales. As we know, "affordable luxury" is IN and retailers that provide creative, quality products at affordable prices will do well. Seek to engage your customers, allow them to provide feedback and reviews, and empathize with their predicament--both through your service and your promotions. Bargain Buys and Power Hours can really drive traffic and help your customers know you are on their side.
2. Consumers are making some tough choices. They are giving up luxuries such as satellite radio, specialty apparel, high-end cosmetics, and fine dining. However, the "untouchables" are Internet service, basic cell phone service, basic cable, and discount shopping for apparel. For campus retailers, consider accessories for cell phones and electronics, sale events on apparel, and other ways to offer your customers something they can purchase to update their existing cell phone or wardrobe without breaking the bank.
3. IT is it! The data explosion is real and understanding what is happening in your store, with your sales, and everything you can about your customers is going to be more crucial as time marches on. I know money for POS systems, integrations, and other IT investments is tight (or non-existent) in higher education...but you simply must keep up the good fight and continue to look for solutions that you CAN put into place. It's imperative that you be able to manage the numbers of your business and track at least the basic information about your customers.
4. Retailing is Relationships...and Social Networking is hear to stay. Being engaging is no longer "nice", it's imperative. Our primary target market spends its days online and connected to each other. Mobile is the wave of the future--we have to prepare for the tide. Social networks are influence networks and your business needs to establish "outposts" in the virtual spaces where your customers spend their time: Face Book, Twitter, etc. If you're not sure how to start, talk to your students, go to the application website and click around, or stop a 12 year old on the street! Reach out. Let your customers know what you have to offer that will solve their problems or ease their pain. Make connections and nurture relationships.
Many campus retailers are doing good things and everything within their control. Some others are not putting 100% into the endeavor. The best time to take action is when times are GOOD. That's not the case now, I know. So let's say this is the second best time to take action. Regardless, take action we must!
- The Retail Muse
Thursday, July 02, 2009
Friday, June 26, 2009
Building a More Postitive Customer Experience
Campus stores are continuously trying to close the gap between the expectations that are established with customers by mainstream retailers and what we can offer in-store on limited budgets, fewer staff resources, and finite space.
An short article in the June 2009 DDI Magazine (http://www.ddimagazine.com/) offered "5 ways to build a positive in-store customer experience" that is some food for thought of campus retailers--even within sometime-staggering limitations:
1. Analyze your target market. Use the data, shopping habits, research, and other sources of information at your disposal (including asking them!) to know your customers, what they like, and what they respond to. This will allow you to better plan store layout, signage, and merchandising.
2. Direct the messaging. Tailor, tailor, tailor. Use signage, color, graphics, and product tags that communicate effectively and efficiently to your target audience(s).
3. Position the signage. Understand the traffic flow in your store and place signage and graphics in appropriate locations. Remember to consider the three focal areas--eye level down, eye level up, and 10 ft. above to ceiling.
4. Create custom designs. Use in-house, campus, or community resources...hire students or bring on interns, if needed...but have professional-quality graphics. Every 20-something and younger consumer has seen professional, polished graphics since they entered this world. Your visual messages have to be creative, use color and images effectively, and MUST be authentic.
5. Focus and re-focus. Within your target audience(s), your customers are also part of cultures. You must maintain a "read" on these cultures (Pop culture, student culture groups, etc.) and continously shift your messaging as needed to respond to changing customer attitudes and values.
~ The Retail Muse
An short article in the June 2009 DDI Magazine (http://www.ddimagazine.com/) offered "5 ways to build a positive in-store customer experience" that is some food for thought of campus retailers--even within sometime-staggering limitations:
1. Analyze your target market. Use the data, shopping habits, research, and other sources of information at your disposal (including asking them!) to know your customers, what they like, and what they respond to. This will allow you to better plan store layout, signage, and merchandising.
2. Direct the messaging. Tailor, tailor, tailor. Use signage, color, graphics, and product tags that communicate effectively and efficiently to your target audience(s).
3. Position the signage. Understand the traffic flow in your store and place signage and graphics in appropriate locations. Remember to consider the three focal areas--eye level down, eye level up, and 10 ft. above to ceiling.
4. Create custom designs. Use in-house, campus, or community resources...hire students or bring on interns, if needed...but have professional-quality graphics. Every 20-something and younger consumer has seen professional, polished graphics since they entered this world. Your visual messages have to be creative, use color and images effectively, and MUST be authentic.
5. Focus and re-focus. Within your target audience(s), your customers are also part of cultures. You must maintain a "read" on these cultures (Pop culture, student culture groups, etc.) and continously shift your messaging as needed to respond to changing customer attitudes and values.
~ The Retail Muse
Monday, June 22, 2009
Changes in Convenience Categories
As convenience categories continue to prove profitable for many campus stores, I thought you might be interested in some statistics on year-to-year changes (2007-2008) for some lines. All these come from The Neilsen Co. via a March 30, 2009 article in Convenience Store News (www.csnews.com):
Packaged Beverages: The full category had only 1.3% change, but was -3.6% in unit volume. The leader in this category, clearly, was the Alternative sub-category--"energy" drinks.
Beer: Just kidding!
Candy: The category had a 3.9% change, but a -4.3% change in unit volume. The non-chocolate bars/packs sub-category lead in $ sales change (6.3%), but still fell in unit volume (-1.5%). More on this sub-group later. The novelties/seasonal sub-group had 5.3% change and 1.3% in volume...but most campus stores don't do too much in this area.
Salty Snacks: The full category had the best reported change in dollar sales at 4.4%. And the change in unit volume, while still negative, was only -0.9%. A winner in this category was "packaged ready-to-eat popcorn" at 13.9% change in dollar sales and 7.3% in unit volume.
Alternative Snacks: Another ho-hum set of results at 2.6% in sales and -2.8% in unit volume. However, the "granola / yogurt bars" sub-group came in at 5.6% change in sales and 1.0% in unit volume. Maybe the healthy eating trend is indeed here to stay.
I promised more about cereal and granola bars. A sidebar item in the same issue of Convenience Store News offered some interesting statistics from Mintel Int'l Group Ltd.:
Packaged Beverages: The full category had only 1.3% change, but was -3.6% in unit volume. The leader in this category, clearly, was the Alternative sub-category--"energy" drinks.
Beer: Just kidding!
Candy: The category had a 3.9% change, but a -4.3% change in unit volume. The non-chocolate bars/packs sub-category lead in $ sales change (6.3%), but still fell in unit volume (-1.5%). More on this sub-group later. The novelties/seasonal sub-group had 5.3% change and 1.3% in volume...but most campus stores don't do too much in this area.
Salty Snacks: The full category had the best reported change in dollar sales at 4.4%. And the change in unit volume, while still negative, was only -0.9%. A winner in this category was "packaged ready-to-eat popcorn" at 13.9% change in dollar sales and 7.3% in unit volume.
Alternative Snacks: Another ho-hum set of results at 2.6% in sales and -2.8% in unit volume. However, the "granola / yogurt bars" sub-group came in at 5.6% change in sales and 1.0% in unit volume. Maybe the healthy eating trend is indeed here to stay.
I promised more about cereal and granola bars. A sidebar item in the same issue of Convenience Store News offered some interesting statistics from Mintel Int'l Group Ltd.:
- Among users, granola and cereal bars are thought of as snacks (85% and 75%, respectively)
- Cereal bars are more often chosen as a "meal replacement" (59% vs 39%) and use highest among 18- to 24-year-olds (66%). You hear that campus store folks with a traditional aged student population?!
- Consumers 18-24 and 25-34 are most likely to consume both types of bars while working and traveling. Between class and studying?
- Cereal bars are more likely to be consumed at breakfast (96% vs 78%), while granola bars win out at lunch time (41% vs 62%)
- Survey respondents ages 25-34 were more likely to eat either type bar for breakfast.
- Men are more likely than women to eat bars for lunch and dinner.
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