Thinking about the recent Lotterywest survey of retailer confidence, salesforce has released a results of a study undertaken in partnership with the Australian retailers Association:

New research reveals retailers remain confident in the face of economic uncertainty

Retailers prepared to retrain sellers for a new reality of rising inflation, supply chain bottlenecks and regulatory uncertainty, according to new research from Salesforce

Australia, 12 December 2022 – Salesforce, the global leader in CRM, today released the fifth edition of its State of Sales Report, in partnership with the Australian Retailers Association (ARA), which reveals 83 per cent of ANZ retailers have strong confidence in their organisation’s ability to close deals despite changing social and economic conditions.

The report, which surveyed nearly 8,000 sales professionals worldwide including 135 sales leaders, managers and representatives who work in the retail and consumer goods sectors across ANZ, uncovered how sales teams are adapting to evolving external challenges and customer demands to drive efficiency, productivity, and success now for their business.

It found 78 per cent of ANZ sales leaders say selling is harder than it was two years ago, with unpredictable market conditions, competition with other businesses, and changing customer expectations amongst the biggest challenges to sale’s teams overall goals.

Yet despite ever-changing market conditions, retail sales professionals are prepared for the future. Eighty-two per cent of sales professionals are very confident in their organisations growth strategy over the next year, with 81 per cent feeling confident that on the whole their organisations are able to retrain or reskill their sales workforce for today’s new economy – with a renewed focus on productivity and efficiency.

Commentary on the report
Jo Gaines, Area Vice President for Retail and Consumer Goods, Salesforce said:

• “Today’s retailers are adjusting to a world that is more competitive, complex and resource-constrained driven by external factors like rising inflation, supply chain challenges and changing regulations. However, those that modernise their tech stack and leverage new technologies like artificial intelligence can create a more productive workforce that better understands who their customers are beyond a single moment in time.
• “This alongside improved cross-functional alignment between sales and marketing, customer service and sales operations is enabling efficiencies and freeing-up sales reps to focus on what they were hired to do: focus on the human side of selling and build meaningful relationships with their customers.
• “In the face of uncertain economic times, short-term sales opportunities are taking a back seat in favour of long-term relationship building. In the year ahead, retailers must focus on fostering customer loyalty to drive recurring sales and consistent growth.” 

Paul Zahra, CEO, Australian Retailers Association said:

• “The world of retail is evolving at an ever-increasing pace and sales professionals know better than most the importance of meeting the customers where they are. The pandemic accelerated changes and shifts towards omnichannel retail and demonstrated that those willing to harness technology and innovation to meet their customers needs were able to be resilient in the face of crisis.
• “Retailers who used the past few years to consolidate their technology strategy are now reaping the benefits of sophisticated systems set-up to support growth and success.
• “Post-pandemic, we face fresh headwinds – compounding economic strain, supply chain and resource challenges and labour shortages as well as the impact of climate change on customer sentiment and product and service offerings. It’s important for retailers to consolidate their learnings from the pandemic and to continue to listen closely to their customers and feedback from their sales teams to help navigate through what is bound to be another year of intense challenge – but momentous opportunity.
• “The ARA predicts Australians will spend a record $66 billion in the November to December pre-Christmas trading period this year, up 6.4% on last year’s spending. The higher numbers are driven largely by price increases as well as stronger food and hospitality spending, as Aussies enjoy their post-pandemic experiences. While these are great results, it’s important to acknowledge that price increases are a factor in these numbers and are also driving Australians to spend to get in ahead of inflation.
• “Despite the record sales numbers expected in the tail-end of 2022, retailers need to be preparing for an uncertain 2023. Agility, future focus and maximising efficiency are key skill sets needed within retail teams. Focus needs to remain customer-centric, as loyalty and retention are imperative to success in the coming years.”

Key findings:

• Retailers feel stifled by a complex and competing sales environment: Companies are moving away from high-risk growth strategies in favour of modest and consistent growth. Globally, 42% of respondents say company-wide sales strategies and selling techniques have completely changed since the pandemic, with a focus on value-based communication that aims to solve a customer’s or prospect’s biggest challenges. 
• Operational efficiency is taking on growing importance: Sales ops are expanding into a more strategic role, tasked with enabling sales reps to spend more time in customer conversations. Retailers say data-driven tactics, improving training on tools and technologies, and improving data accuracy and quality are amongst the most important factors to drive growth over the next year.
• Artificial intelligence key to enabling a productive workforce: Artificial intelligence (AI) is becoming more entrenched in day-to-day activities, with 45% of retailers saying AI has been a major improvement in the use of sales reps time, prioritisation of leads (41%), and gaining an understanding of the competition (39%). 
• Employers are focused on improving the staff experience: Retailers are looking to upgrade training and benefits to set employees up for success. But new headcount is limited – the turnover of sales professionals over the next 12 months is expected to be 26%. 
• Retailers strive to meet rising customer expectations: Customers are looking for sales reps to meet them wherever they are, regardless of channel: this includes ecommerce platforms, social media networks and personal assistants. Currently retailers connect with customers on an average of 10 channels, with email (86%), phone (86%) and social media (85%) being the most commonly used. 

 

Methodology
Data in this report is from a double-anonymous survey conducted from Aug. 24, 2022, through Sept. 30, 2022. The survey generated 7,775 responses from a range of sales professionals from across North America, Latin America, Asia-Pacific, and Europe. All respondents are third-party panelists.

About Salesforce
Salesforce, the global CRM leader, empowers companies of every size and industry to digitally transform and create a 360° view of their customers. For more information about Salesforce (NYSE: CRM), visit: www.salesforce.com/au.

For more information
Download the full State of Sales report.

I my newsagencies we sell high-end delicious chocolate treats. The challenge is that people don’t know how good the chocolate is unless they try it. So, we regularly cut up some treats for tasing: chocolate, fudge, rocky road, and more. Each time we do this, the products sell.

Of course, we do it in a safe way, and we don’t push. What you see in the photo is at the counter, and people help themselves.

Darrell Lea were strong on takings back in the 1990s. I think it was a requirement, but I may be wrong on that. Certainly, back then, it worked a treat. And, we have done it since with other chocolate and candy makers.

It has worked very well. I highly recommend it.

Oh, and we don’t sell any everyday candy or chelate you can buy at the supermarket or a convenience store.

The economic analysis published recently by the Commonwealth Bank is fascinating. The Victorian retail numbers are terrific, contradicting the narrative some have put out re the Victorian economy, and retail results in particular.

The overall result, too, is good for Victoria:

I have been looking at our September results and while I will have more to say on that soon, they match what the Commonwealth bank report is showing.

Of course, there are many factors that feed into growth: state, the local economy, actions by business owners. I guess my core point today is that here is an independent report presenting results that contradict the commentary or many about the Victorian economy.

I was in a Woolworths store in the Sydney CBD this week and saw these traffic direction indicators, which I have not seen in other Woollies stores.

And, yes, people followed the directions.

Big business representatives continue to call for people to get back into the CBDs, into offices and shops.

I think CBDs were in trouble before Covid. They are expensive, inefficient and out of date. Of course it’s big business calling for the return, because the CBDs is where they aren invested.

Locally on the high street and regionally, it’s more efficient, enjoyable and relevant.

But enough of that pitch.

The ABC yesterday published an interesting story somewhat related to this.

Pandemic migration causes culture clashes and class gap in regional Australia, research finds

The culture of regional Australia could be changed forever, according to new university research, and not everyone is happy.

A two-year qualitative study by RMIT has found a mass migration of city dwellers set off by the pandemic has widened the class system in Australia, with clear winners and losers in regional areas.

Researchers followed 21 households that made the move away from city life to coastal hotspots and lifestyle towns in Queensland, New South Wales and Victoria.

It’s well worth a read.

The new format WH Smith stores at Melbourne Airport elevate transit retail in Australia. In the Virgin terminal, the main outlet looks terrific, packed with stock, well sign-posted, well laid-out and immensely stoppable.

The magazines are well organised, and full face, which I like.

Here’s a small WH Smith kiosk outlet further on the concourse.

While this transit model, a convenience model, is not my thing, I know for some newsagents it is. This is why I share these photos here.

Now, if WH Smith rolled this model out to suburban Australia, they would give newsagents and, maybe, 7-Eleven, a run for their money.

Whether you partake or not, visiting a marijuana shop in the US states where it has been legalised is a visit to best practice retail.

I guess because of the tough road to legalisation, the retailers have been sure to get it right in terms of layout, product information, displays and customer service.

I have seen many different shops and each was an excellent showcase of best practice retail. These photos are from MedMen in Venice Beach, LA, from a few days ago. You can see a clear and easily accessed shop layout, excellent product information available from the tablet computers, good VM and more.

The approach is professional retail. Of course, a benefit for them is that they have been able to come to this without a legacy retail experience holding them back.

Here’s the front of the MedMen shop on Fifth Avenue in New York. It looks right at home above the high fashion stores.

While, for sure, there is margin for the space, and the been to fully explain each product, these stores provide knowledge and service. Now, these two things, knowledge and service, are vital in any local specialty retail setting.

What I saw at MedMen and similar marijuana stores is a reminder of focussing on these, and providing to shoppers experiences that demonstrate strengths of the business, experiences that bud trust.

Here’s the post announcing the fundraiser for the Essex Card Shop that was hit by fire early this year.

Help Essex Card Shop on Ave A

Hi. My name is Saba Aslam. I am making this fundraiser for our family business, Essex Card Shop located at 47 Avenue A, New York, NY 10009. Muhammad Aslam is my dad and the owner of the store, Jay Patel is my uncle and the manager of the store, and Mehnaz Noreen is my sister and works in this family business. There was a huge fire today (01/10/22 at around 4:30 pm), and the entire store is destroyed by the fire. Thank God everyone made it out alive! This fundraiser can really help this small business pick themselves up again and recover from this. Every single corner of this store is burned, damaged, and destroyed. I am 27 years old now, and I have seen this store as a part of my family ever since I was a little girl. Let us all please come together as a loving community, and help this small business rise from its ashes! It’s heartwarming to see all the love coming from the community. Please help in any way you can. Keep us in your prayers

Click here for a recent story on progress.

It’s a fascinating approach to recovery from something like this. Not sure about the legal obstacles here in Australia tho.

This a frame out the front of Mind games on Glenferrie road is fun, and it tells us about something they sell, it’s clever and on-brand advertising.

Further to my post yesterday, here;’s a photo from their outlet at Adelaide Airport. I’ve not seen this branding in their Australian stores, which have tended to follow the UK branding.

I got to shop at the WS Smith shop at Perth airport earlier this week. Here are some comments and photos. First up, they areas challenged with recruiting staff as many in retail are:

Their coffee offer was popular.

They offered a pick yourself candy and nut selection, which I thought was odd given Covid. This photo doesn’t even show half the range available in-store.

Their time to serve commitment at their food counter was interesting. I wondered if it was in response to something.

Their signage for each category of product is terrific, it makes shopping easier.

Leading to the main register area, their pitch of magazines for impulse purchase is good, as I have seen in plenty of other WH Smith outlets in trains locations overseas.

I checked myself out, and was surprised that they charge a surcharge for credit card use given that the cost of processing credit card payments is less than the cost of handling cash. Anyway, I used a card and, sure enough, they charged me 3 cents extra for this. What makes it more galling is that I bought a candy product and paid double what I would have paid in a supermarket. More fool me.

Overall, the shop is well laid out, clean, neat … what’s it needs to be in a transit location. The credit card surcharge is the only blemish from the visit.

I am grateful for the opportunity to see the new WH Smith store at LaGuardia Airport in New York this week. It was a fascinating experience.

This new-tech store is at the all new LaGuardia Airport opened in February this year. It leverages the Amazon Just Walk Out technology, technology I have covered here for several years now. Here’s the front of the shop.

There is no counter. Once you are in, it’s all product. You enter with a credit card.

The digital screen to the side of the entrance explains the process. This is key to quick understanding of access to the store.

On the ceiling you can see tons of cameras. They, and other tech, are elsewhere in-store, tracking you, so you can just walk out.

Products are displayed in a traditional way for convenience.

There is one exit.

There was one staff member on the shop floor, stocking shelves.

The shopping experience is easier than self checkout in that there is no battle when the scale mis-weighs something or when the self checkout tech can’t work out if you have your own bag.

This WH Smith Just Walk Out store experience was smooth, just what I’m looking for in convenience shopping in a transit setting.

The biggest barrier, besides cost,  to wider use of this tech is the fear of theft. I suspect the tech will evolve to further address this. Also, I suspect they have allowed for this in product pricing. However, I’d note that the pricing of products felt no different to what I have seen in regular c-store retail in US airports.

While I don’t want to come off as a booster for Amazon, they have been leading this tech field for years now, first through their Amazon Go stores which continue to trade, even in street front situations in major cities.

The Amazon tech reduces waste. For example, if a customer takes a product out of a fridge unit and later in the visit puts it on another shelf, the Amazon tech can notify store workers and let them know how long it has been out of the fridge. This is fascinating.

While we are seeing application today in the convenience space and in some Amazon owned supermarkets, I think the real innovation will come from new retail formats built around the Just Walk Out or similar tech. This will come about through promotion of this retail innovation, creating demand for it.

The current cost of the Just Walk Out tech means local retail is unlikely to be an early adopter, I think it’s wise to have it in the consideration field as this tech will become affordable for our types of businesses. It would allow us to change the focus to be more about shop floor help than sales counter anchor.

I would not, however, that key to the success is identification of the products being picked up by customers. The consistency of range on c-stores enables tech partners to make setup easier. Having to collect photos of the quality need and from all the angles needed for less mass products would be a time barrier for plenty of retail settings.

In the newsagencies with agency services like lotteries and postal, of course, this tech is not a solution.

Like I said, I am not here boosting for this tech. My goal with this post is to show that is now out there and to note that some big businesses are behind this tech making its way to many retail settings, starting with c-stores. Its wider release now puts even more pressure on independent convenience focussed retailers.

While I am no fan of tobacco retail, as a retailer it is hard to find fault with their Sydney CBD presence. Consistent, clean, easy to shop locations are a lesson in strong franchise retail.

Last week I got to visit Rosie Bunny Bean in a suburb of Los Angeles. It’s a small formal local petshop, a family business. I made this video a few days ago to talk about what I saw.

Now more than ever, retail is about the experience, how we make our customers feel.

Whole Foods in the US offers a simple example of the visual impact of colour blocking in retail.

Throughout their business, products are displayed to attract attention.