Retail 101: A Guide to Improving Sales, Profit, and Overall Customer Experience
30
Retail 101 A Guide to Improving Sales, Profit, and Overall Customer Experience. 06/06/2022 1
description
I developed this presentation for a training seminar I gave to all mid to upper-level operations management in the market. It was designed to improve sales, profit, and market-share by explaining the fundamental principles behind improving in stock condition, merchandising, and the direct impact it has on determining the customer's overall experience. I have redacted some proprietary information so it could be published.
Transcript of Retail 101: A Guide to Improving Sales, Profit, and Overall Customer Experience
04/09/2023 1
Retail 101A Guide to Improving Sales, Profit, and
Overall Customer Experience.
04/09/2023 2
Sales/Market Share Expenses Profit
Growing Sales + Controlling Expenses= Increased Profits
3 Pillars of Retail
04/09/2023 3
SALES/MARKET SHARE
Pillar One
04/09/2023 4
Series10
50
100
150
200
250
300
350
400
DayWeekMonth
Total Sales Trends
04/09/2023 5
Div **Div **Div **Div **Div **Div ************
Divisions as a % of Sales
04/09/2023 6
Div **
Wel
lnes
s
Div **
Div **
Div **
Tech ** ** ** **
Groce
ry
-30
-20
-10
0
10
20
30
40
50
DayWeekMonth
Sales Trends By Division
04/09/2023 7
Electronics/Photo $10,100Paper/Chemical/Pet $10,000Consumables $10,000Toys $6,800Seasonal $6,200
Top Departments Div 1AVG Sales/Day
04/09/2023 8
Division **Health, Wellness, OTC $5,000
Hardlines $44,300
Division **Mobile/Wireless Tech $3,500/+15%
Top Sales $$$ Outside Div 1
04/09/2023 9
Division 45
-Technology sector: Continues to drive earnings
-High Consumer Demand: Want AND Need
-Constant Influx of New Items and New Technologies
-Deloitte predicts consumer demand for tech despite economic headwinds
Division 10
-More Health and Wellness Conscious.
-Preventative. Outcomes vs. Services
-Healthcare Law/Access
-Ubiquitous/Need
-A Generation Ready to Retire
Biggest Opportunity to Grow Incremental Sales
04/09/2023 10
High Margins Low Price Convenience- One Stop Shop! Population Growth- Everybody has to eat! Food Deserts Besides Rx, Every Retailer is Trying to Grow
Their Market Share in This Department
Consumables
04/09/2023 11
Top Factors That Directly Affect Sales Ranked by Correlation
Counts Department maintenance Merchandising Cross-functional retailing Customer counts
Sales
04/09/2023 12
Opportunity vs. Capture
Counts: Simple But Elusive
04/09/2023 13
04/09/2023 14
No Worries. There are Solutions!
Problems Solutions
Outs
Variance
Prolonged Outs
WHOOS, Old Mod, Discont’d
Walk 3x3 with a Telxon
Binning, Pos Scanning, Receiving, Shrink
Discont’d, WHOOS, Updated Mod, Shrink
Spread facings and Mylar, Plug w/non-basic, or PIP
04/09/2023 15
Presentation is Everything
Department Maintenance and Merchandising
04/09/2023 16
04/09/2023 17
Put Yourself in the Customer’s Shoes
04/09/2023 18
You Sometimes Have to Make the Customer Want It!
Need vs. Want
Partner In Profit Incremental sales
Know Your Community Right Item, Right Place, Right Time for the Right Price
Key Merchandising Insights
04/09/2023 19
Linked departments Affect Each Other
Milk
Healthy Cereal andBreakfast Snacks
Cross-functional Retailing- PIP
04/09/2023 20
04/09/2023 21
Extra attention to linked departments Outs in one, probably have outs in another Outs in one affects sales in another Clip-strips: Zyertec in L&G and/or Pets Cross-merchandise with signs:
“We carry 1% & Skim Milk”-Cheerios/Special K“Flu Shots available by Rx” –Cough/Cold aisle“Scales located in Bath section”-OTC aisle
Solutions and Ideas
04/09/2023 22
In-Stock Condition- Sales: -**.**% WTD Right Items at Right Prices One Stop Shopping- Cust. Ct.: -*.**% WTD Neat, Clean & Organized (NCO) Friendly, Fast Service: YTD *.**/10 Departments Staffed: -* Txn (Co. Avg +.**)
- % on register below goal Appearance- Look the Part!
Customer Counts = Sales
04/09/2023 23
Bottom Line: Chase Sales $$$
04/09/2023 24
EXPENSESPillar Two
04/09/2023 25
Indirect- Cannot Control Direct- Control Inventory- DOS, Carrying Charges, Recalls Payroll- *.**%/Sales, +.*% (UP Hrs./DN
Sales) Store Use- Do Not Do It! Shrink- Everyone Has a Role* Easiest way to combat lagging sales is by
cutting expenses (i.e. Payroll).
Expenses
04/09/2023 26
PROFITSPillar Three
04/09/2023 27
Cost- Am I getting the best bang for my buck?
Margins- Are Displays/Items Paying the rent?
Labor- Efficiency, Planning, Engagement Shrink- Right out of the bottom line Time- Seasonal clock, Urgency, Deadlines Safety- Accidents = BIG $$$$ Am I doing everything I can to grow the
business?
Profit
04/09/2023 28
Outs = Lost Opportunity Lost Opportunity = Lagging Sales Lagging Sales = Fewer Customers Fewer Customers = Reduced Market Share Reduced Market Share = Shrinking Profits Shrinking Profits = Reduce Expenses Easiest Expenses to Control is Payroll
Merchandise + Customers = Sales!!
Review: Takeaway Points
04/09/2023 29
QUESTIONS?
04/09/2023 30
THANK YOU!
