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December 2008 Archives

December 1, 2008

Shoppers Drug Mart CEO Shares Advice on Surviving a Recession

Saturday's edition of The Globe and Mail featured an excellent article by retail reporter Marina Strauss that looked at the impressive growth of Shoppers Drug Mart and explored whether the chain could continue its growth in a recession. For the article, Strauss interviewed the company's CEO, Jurgen Schreiber. He is, she writes, "well positioned to ride out a recession. He's a seasoned executive of health and beauty companies, having led a global retail giant's European operations before joining Shoppers as president in 2006. At A.S. Watson & Co. Ltd., the retail division of conglomerate Hutchison Whampoa Ltd., he spearheaded growth in cosmetics and fragrances, partly by introducing new brands in thousands of stores in 23 countries. And he oversaw the acquisition of the Drogas and Spektr chains."

Strauss points out that over the course of Schreiber's career "he's worked through recessions, watching the fragrance business soften and learning that promotional deals are needed to lure cash-strapped consumers in harder times." His other recession-fighting advice is: "…do not give up on your staff. The moment you start seeing a sales reduction, and you cut the sales force, or the people behind the counter, you have problems with your customers. Be relentless taking weak brands out, and putting new brands in."

This struck me as particularly sage advice. A recession is the time to buy carefully, quickly get rid of products that aren't turning, and make sure you have new, exciting goods and promotional deals to lure customers in. It is not the time to "have problems with your customers" because you've cut staff. Anyone who's visited a Shoppers cosmetic department lately can vouch for the chain's dedication to providing good service. There's no searching for a salesperson to help you or take your money at Shoppers. Is the same true at your store?

The wise and wonderful David Carr has written extensively on customer service for this magazine. This is a good time for you and your staff to review some of his advice. Good customer service will help you through the holidays and through a recession. Here are links to some of David's articles: Making Customers Comfortable; Losing Assumptions; Using Common Sense; Changing Retail; and The Comfort Culture.

Posted by Lori Smith on December 1, 2008 11:56 AM | | Comments (0) | TrackBacks (0)

December 15, 2008

Is Your Staff Selling or Socializing?

My mother and I were out shopping this weekend for Christmas presents. We visited eight stores, a selection that included independents and department stores, and not once did any "salesperson" actually try to "sell" anything to either of us.

At The Bay, my Mom wanted to get some sheets. She was interested in striped sheets. There were three salespeople chatting at the cash desk. I asked one if they had any striped sheets. "No," she said, "I don't have anything like that." She then returned to her conversation with the other two women. She didn't attempt to show us anything different. She didn't ask what price range my Mom had in mind or what quality of sheets she was interested in. Nothing. Apparently socializing with her colleagues was more important than making money for the store that employs her.

At another independent shop, we stopped and selected a candleholder as a gift. I asked the salesperson if they had any candles. "No," she said. She didn't volunteer any other information (e.g. where we might get candles). She didn't do anything other than say that she would put the candleholder back on the shelf for us if we didn't want it. "Okay," I said.

In store after store, the same scene played out. No-one seems to get the fact that "selling" is a part of retail. Considering the economy, all retailers should be really focused on increasing their conversion rate. The customer is in your store, sell him or her something! Ask who they're shopping for; make a suggestion; make two or three suggestions. Socializing can wait. Folding towels can wait. Unpacking boxes of product can wait. Customers who are not getting any service won't wait. They'll leave, often without buying anything.

I've used this space before to ask whether your employees are salespeople or clerks. If your staff members aren't actively "selling," they aren't converting browsers into buyers, and it's your store's bottom line that's suffering. Can you afford it?

Posted by Lori Smith on December 15, 2008 5:05 PM | | Comments (0) | TrackBacks (0)

December 17, 2008

Happy Holidays and Best Wishes for 2009

Happy Holidays to everyone--retailers, suppliers, show organizers--who collectively make this a great industry! And a big thank you to those few brave souls who have commented on my blogs and sent in letters. I appreciate you taking the time to share your thoughts and opinions with all of us. That's what a blog's about!

On behalf of the magazine's publisher, Brenda Bishop, and myself, I'd like to wish you all a Healthy and Happy 2009!

Lori Smith
Editor
Gifts and Tablewares

Posted by Lori Smith on December 17, 2008 11:45 AM | | Comments (0) | TrackBacks (0)

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Lori Smith, , Editor-in-Chief
Lori Smith is the editor of Gifts and Tablewares, Canada's premiere gifts and tablewares magazine. Written for retailers of gifts, tablewares, housewares, stationery and home furnishing accessories, its objective is to help readers increase their sales and run their businesses more profitably by providing information on new products, merchandising, small business management, customer service, consumer behavior and industry news. The magazine is published six times a year by BIG Magazines, LP, a leading Canadian information company.

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About December 2008

This page contains all entries posted to Editorial Blog in December 2008. They are listed from oldest to newest.

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