It is common practice for all of us to visit a doctor once a year to validate how we feel, any new issues to concern ourselves with and should something suspicious appear, that it is investigated.
Retail is no different but all too often the retailer is concerned about the product cost and sell pricing and spends little time looking at the store through a customers eye.
The practice of Retail Audit goes beyond the product only. America loves the words: new, just arrived, special, updated, and essential. When the store takes on the spirit of these words you provide change and interest to the customers shopping experience. Beyond the words are the actions you take. Product change over time and a display that properly showed the item a year ago may need an adjustment to accommodate the update version of that item. If you allow time to pass without addressing this issue you wind up with a square trying to fit a round hole.
For the bottom line the yearly audit should review the lighting and determine if an investment into new LED efficient lighting will over time pay itself back with energy savings on your monthly bill. Electric is often one of the biggest monthly line numbers in your expenses and a reduction in cost equates to an increase of profit.
In conclusion, retailers you owe it to your store to provide a yearly physical to insure it is healthy, you remain wealth and wise.
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The Benefits of a Store Audit
Thursday, July 23rd, 2015Department Stores are heading in the wrong direction.
Sunday, July 5th, 2015This Outlet strategy goes against the main reasons for the department stores success and preserving loyal base customers. In addition, you have the issues at the outlet level, lower paid service associates, vanilla store design and presentation, more chance for negative shopping experience due to budget factors and you have lowered the core department store business as a result of guilty through association. Does it make sense to give your establish customer a reason to not shop your Department store and go to another location to shop. Retailers strive for multiple sales, and this approach will not work to that initiative.
What is the right strategy? Allocate an area with the core department store which takes the product residue, the off season items and create a permanent section within the store that would simulate the off price store concept. Why? Because is brings a new customer in, and perhaps over time that price driven customer becomes a trade up customer, which improves the quality of shopper within the department store. Off price retailing is basically depending on price to drive the business. Customers accept items that are not in their size, out dated fashion, a basic shopping experience and that works for that customer. But the department store is walking faster at an outlet level just to stay in place. Department stores are do not represent the numbers that a TJX and Marshals, Ross Stores provide product vendors, who are stuck with product. Having been involved intimately with licensing of brands, believe me when I say, the surplus, first dibs on good product goes to the biggest retailer. Prestige, which department stores represent, does not factor in obtaining the best of the worst. So department stores force to buy into their new outlet stores because space allocation requires they fill up the store to give a sense of being in business, must depend on the department store assortment sale items to be directed to the outlet. The cost of the transfer, probably gets written off on the department store and not into the cost of goods for the outlet store, thus presenting a false vision of success.
You cannot be all things to all customers, you have to live by the sword and die by the sword because this alternative outlet solution will be working against the odds due to the competition who invented the concept.
Lastly, we all have made the observation when shopping an outlet store similar to the high profile Gap retailer, that the product found in the Gap store, never saw the light of day in that company store. People now believed that most of the off price product was really a ploy that its origin was a company store, but the reality is it was outlet store bound from the purchase order inception. Customers caught on fast which watered down the credibility of the outlet concept from great product at great prices, to good prices only.