Recipes for Retail Recipes for Retail A masterclass based on John Hoerner’s Book ‘Recipes for Retail’
Available both as a physical event and as an online interactive course.
Featuring Video interviews with the author, animated slides with commentary and interactive learning content.
The ‘Recipes for Retail’ are brought together in a delicious gourmet meal of retail knowledge and Insight.
Here’s a sneak preview……… John Hoerner John Hoerner has been a successful retailer for 57 years initially in the U.S. and then in the UK and Internationally
In 1987 he was recruited by the Burton Group to run Debenhams a 59 store chain of Department Stores in the UK. Debenhams grew and prospered over the next five years to become one of the most profitable groups of department stores anywhere
In 1992 he was made Chief Executive of its Parent Company, The Burton Group with over 2000 stores in the UK. In 1998 John led the de-merger of Debenhams from the Burton Group which made substantial returns for shareholders compared to the share price when he became Chief Executive
The remaining chains of multiples were renamed Arcadia Group which he ran until 2000 when he retired from Arcadia. In 2001 he joined Tesco, the world’s third largest retailer, based in the UK, to lead the development of their clothing business.
In 2006 he took on another Tesco assignment to consolidate the clothing businesses in Central Europe and Hungary, Czech Republic, Poland, and Slovakia all joined forces in clothing to develop a powerful business.
Since 2008 John has been a consultant for Tesco helping with development of Tesco clothing in China, Korea, Thailand, India, Malaysia and Turkey. THE RECIPES FOR RETAIL
Strategy Customer Product
Stores Marketing Finance People Strategy THE RECIPES FOR RETAIL 1. STRATEGY
It has to start with the leader and the top team Developing a good retail strategy requires hard work, brilliant thinking, careful timing and extensive research. THE RECIPES FOR RETAIL 1. STRATEGY Any management team is a lot more enthusiastic and effective in implementing a strategy they helped to develop themselves….and it’ll be a much better strategy as a result! You say what needs doing They say how it will be done THE RECIPES FOR RETAIL 1. STRATEGY
What’s different about a Retail Strategy?
It always starts and ends with the Customer Customer THE RECIPES FOR RETAIL 2. THE CUSTOMER
Rule 1. When you get it right for customers… almost EVERYTHING ELSE works. Rule 2. When you get it wrong for customers…. almost NOTHING ELSE works! Rule 3. See rules 1 & 2 THE RECIPES FOR RETAIL 2. THE CUSTOMER
All retailers say they listen to their customers. Most of them really do listen. Very few then make a specific, well planned and executed effort to do something about it!
When they do…… great things happen! THE RECIPES FOR RETAIL 2. THE CUSTOMER
Customer Loyalty is a myth. What does exist is familiarity and habit
As long as customers are satisfied they keep coming. Let them down a few times and they are off to your competitors like a shot THE RECIPES FOR RETAIL 2. THE CUSTOMER
Value is an equation between price, affordability and need for the product
Getting this super yacht for half price is a great deal If you have $100m to spare
But it’s of no value if you don’t have that money and you’re not in the market for a Super yacht! THE RECIPES FOR RETAIL 2. THE CUSTOMER
There is fierce competition for your customer’s time and money Not just others in the same business as you Restaurants, Holidays, Entertainment and experiences are all increasingly competing for discretionary spend Competition comes from all directions Product THE RECIPES FOR RETAIL 3. PRODUCT
People are important everywhere in your business
But your commercial teams are very important hires
They need to be prepared to be different and they need to be able to calculate and act on risk
Their decisions can make or break your business! THE RECIPES FOR RETAIL 3. PRODUCT In getting the range mix right buyers and merchandisers need to consider: ▪ Profitability of the merchandise mix ▪ Your business philosophy toward the assortment (broad and shallow or narrow and deep) ▪ Physical characteristics of the stores or layout of the eCommerce site ▪ Service level targets ▪ Complementary merchandise The ideal merchandise range plan results in the right merchandise, in the right quantity, in the right place at the right price and at the right time THE RECIPES FOR RETAIL 3. PRODUCT
A mid market fashion range/inventory mix
Terminal/Markdown Trials
Volume best sellers
Fashion trend
Seasonal range
Core ranges THE RECIPES FOR RETAIL 3. PRODUCT
Genius buyers do all of the below except they start with what they want to achieve in the store and work back from there Great buyers add in sales promotions plans, visual presentation, sales associate training and negotiate to maximize profitability. Good buyers plan carefully what they are going to sell, when and at what price. Then buy what is necessary to support the sales plan Average buyers plan carefully what they are going to buy Poor buyers don’t plan. THE RECIPES FOR RETAIL 3. PRODUCT
Three great questions guaranteed to make you a great great merchant and a great teacher
1. What are you going to do if it sells better than you planned? 2. What are you going to do if it sells worse than you planned? 3. How did you figure that out? THE RECIPES FOR RETAIL 3. PRODUCT
The Fashion business thrives on newness
Fine wine improves with age. Fresh fruit goes rotten
The customer has a sensitive nose. She’ll smell that it’s off. Often before you do!
When was the last time you saw a customer come into your store and ask “what’s old”? THE RECIPES FOR RETAIL 3. PRODUCT
THE PRODUCT LIFECYCLE
Markdowns are planned so you have sold out before demand stagnates
full price clearance
demand primary decline stagnation
time –– demand at full price –– demand at markdown price THE RECIPES FOR RETAIL 3. PRODUCT
Trialling or Testing is only effective if you set it up right – there has to be statistical validity to the trial
Trialling in the best stores only is not a trial. A full cross section of store types must be used to get the full picture
And if you find yourself repeating a trial. The chances are it didn’t work - so no need to repeat THE RECIPES FOR RETAIL 3. PRODUCT
There is no such thing as a free lunch from suppliers
There’s always a catch or a trap
“Consignment” and “Sale or Return” deals are right up there with Unicorns!
It’ll all be in the cost price Stores THE RECIPES FOR RETAIL 4. STORES
Your store is a theatre
The layout is the stage
The visual merchandising is the scenery
The product is the show
Your people are the cast THE RECIPES FOR RETAIL 4. STORES
Respect the customer’s time
Customers are choosing to give you the value of their time. They can go elsewhere in an instant especially so, when online.
Your store should present your offer with crystal clear clarity. Tell customers clearly what you have and how they can have it
And they are not mind readers THE RECIPES FOR RETAIL 4. STORES
Customers travel your store at pace
If their eye isn’t caught in 5 seconds they haven’t seen it!
They are in a hurry, places to go, people to meet and kids to manage
Try a sprint round for yourself as a ‘frazzled parent’ THE RECIPES FOR RETAIL 4. STORES
If you have store managers who like to run the store from their office, you could do a number of things.. Poor Manager lock their office and throw away the key -20%
Re-train them or….. Good Manager Bid them farewell! +20% THE RECIPES FOR RETAIL 4. STORES
Stores now have to be even more sharply presented and professionally operated
The digital online revolution means that the game has to be raised
Increasingly the store has to harmoniously chime with the online offer and support the fulfilment of the online customer’s purchase
And out do online for the ‘wow’ experience THE RECIPES FOR RETAIL 4. STORES
When you are visiting your stores
1. Do the “frazzled parent dash” 2. Do the 10 item challenge 3. Speak to at least 3 customers 4. Ask 3 members of staff the same question and see if you get the same answer 5. Leave them with a message to remember Marketing THE RECIPES FOR RETAIL 4. MARKETING THE RECIPES FOR RETAIL 4. MARKETING
Before you convince your customers you must convince your team
Marketing starts in house
If all of your people get the message they will pass it on to the customer THE RECIPES FOR RETAIL 4. MARKETING
Concentrate on your existing customers first
Make sure you know them and they know you
Understand and act on what would make them spend more with you
Please them first. They are one of your best marketing tools THE RECIPES FOR RETAIL 4. MARKETING
Until the next tech revolution smart phones are the reach point for customers
All marketing activity should be designed to cut through to a smart phone’s small screen
That includes website, social media, messaging, apps, beacons, pay wallets, QR codes THE RECIPES FOR RETAIL 4. MARKETING
So marketing for stores and online are totally different right?
No. Not different at all!
Both need to drive traffic, increase spend and gain additional customers
The trick now is to join them up, do both really well and be a true omni - channel retailer! Finance THE RECIPES FOR RETAIL 5. FINANCE
The three “evils”
1. Accounting Practise
2. Vendors
3. ‘Instant Gratification’ THE RECIPES FOR RETAIL 5. FINANCE
Costs all eat away at margin
Every part of your business must be cost effective
If you are going to cut people….start and finish furthest away from the customer THE RECIPES FOR RETAIL 5. FINANCE
Sales/Profit per m2 Margin rates Markdown rate Stock turn Sales conversion IPC/ATV Staff Productivity Costs/sales ratios Net Profit THE RECIPES FOR RETAIL 5. FINANCE
So many retailers invest heavily in product, stores and systems only to go cheap on the last decisive link with the customer
Saving money on store staff levels to below optimum levels is like stepping over a dollar to pick up a cent
Staffing is an investment not a cost THE RECIPES FOR RETAIL 5. FINANCE Store refurbishment projects are an expensive business Always ensure the end result is appropriate to your brand’s position but purely sprucing up the look of the stores is never enough
Take the opportunity to re-allocate space and add new categories and reduce space to poorer performing categories
And while you’re at it. Modernise the store team too with training and development packages People THE RECIPES FOR RETAIL 7. PEOPLE Key tips when hiring new people
1. Be open and frank about the job role. Tell it as it is 2. Listen to them. Really listen 3. Work out if you like the person. Chances are if you do, everyone else will 4. Take references yourself. Talk to the people who have been named as referees THE RECIPES FOR RETAIL 7. PEOPLE
Good people are best motivated when they are given and they take full responsibility for their area
This works at all levels from the salesfloor to the boardroom
Freedom within a framework and agreed boundaries should be the only potential restriction for them to navigate
Micromanagement is for losers and produces losers! THE RECIPES FOR RETAIL 7. PEOPLE
People who have too many things to do, begin to choose their own priorities from the list
Management loses control of the priorities and the team become exhausted and demotivated
So don’t put too many ingredients into the dish of the day THE RECIPES FOR RETAIL 7. PEOPLE There’s a saying that if you’re not making mistakes…you’re not making anything!
Don’t be afraid to make mistakes and don’t let your team be afraid to make them either. But make sure you fix them!
“Everyone has the right to make mistakes but they don’t have the right to procrastinate about fixing them!” Joseph Noble – Retail Consultant 1961 THE RECIPES FOR RETAIL 7. PEOPLE
Meetings. The biggest time waster in business everywhere
If you have to have them, here’s a few tips…..
1. Look forward not back 2. Talk actions not numbers 3. Make a one hour time limit 4. Only have people there who need to be there 5. Agree actions there and then THE RECIPES FOR RETAIL 7. PEOPLE
When you as the boss visit a store….
You will get all you need to know from the team
But you can also give all you need to give
The ‘gossip network’ is a remarkable communication channel
And you have set a customer culture that all others must follow THE RECIPES FOR RETAIL 7. PEOPLE
Always leave them with pure, clear, crystal…..
Clarity THE RECIPES FOR RETAIL
Strategy Customer Product
Stores Marketing Finance People Recipes for Retail