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retail

Retail advice: shopfit changes worth doing are worth doing well – replacing the shop floor covering

We decided to replace the worn-out carpet in the retail newsagency business that we purchased on Glenferrie Road, Malvern, Victoria, in December 2021.

The decision is part our small-steps approach to refreshing this business. Rather than undertaking a whole shopfit at once, we are making a series of changes over time, as we learn more abut the business and its customers, and, to suit our goal of creating a less traditional newsagency.

So, we decided to replace the carpet.

We got several quotes, and chose a company with a good reputation. we appreciated their honesty regarding the need to close for 2 days to do the whole shop, around 250 sq metres.

The challenges started part way through day 1, when the old carpet was being removed. It turned out that under the old carpet was underlay, more carpet, tiles, and, lino tiles. The business had not changed hands in 38 years and it appeared that the original flooring was still in place for plenty of the shop.

In some places there were not as many layers on top of the original concrete floor.

The carpet installers had not anticipated dealing with so many layers when accepting the removal job from the carpet company. We had to get to the shop to take a look for ourselves as they were asking for more money.

The quote we had agreed to was not, in hindsight, as clear as it could have been. They could have removed the carpet and underlay and laid our new carpet on top. But, that would have resulted in an uneven floor. For the best result, all previous flooring had to be removed, and that would cost, we were told, $2,500.00 more.

A complication was the look of one layer. To be sure, it needed to be treated like asbestos. It was either that or halt the works and have it tested, which was not an option given where the project was at.

So, we agreed to the $2,500 and the removal back to the original concrete was done.

From the Saturday through to the Monday, March 14, the project was completed and new, lush, underlay installed and new carpet on top of that. The result is wonderful, clean, soft, and, quiet, it is very quiet.

From when we re-opened Tuesday morning we have been receiving comments from customers. They agree with us, it’s soft to walk on, and, it’s quiet.

While the project cost more than expected, the end result is well worth it. Along the way we have been reminded some things about shopfit works:

  • Be sure of the outcome you want.
  • Be thorough in your research, so you know the complete scope of the project.
  • Be clear what you want done in the project when seeking quotes.
  • Have a contingency in your budget so you can cope with surprises.
  • Health, safety and comfort of those working in the business and those shopping in the business has to be your top priority.
  • When it comes to flooring, if the shop is old, expect past changes to have been placed on top of old flooring, as it is cheaper.
  • The best flooring outcome starts with new flooring being placed on the base concrete or timber flooring in the building, and not on top of existing floor coverings.

Point 1 is always our position going into anything. it’s why we quickly agreed to the additional payment – we wanted then best outcome.

In terms of health, safety and comfort, we chose a more expensive underlay and this has been key to the customer comments over the last week since installation. The feel underfoot is wonderful.

While we want our shoppers to talk in good terms about what they buy in our shops, them talking in good terms about the experience is equally valuable, especially in a suburban high street situation like our Malvern shop. This is why we invest in shopfit upgrades and changes.

Every week we are making changes in this shop, introducing new product lines, moving fixtures, editing existing ranges and more. But, we are doing this in a small-steps approach – in part so as to not disrupt long-term customers who appreciate certainty (a thriving shop 2 doors away has had the same family owners since the 1930s) and to allow us to adjust as we learn.

On our current trajectory, we think it will be early 2023 before we have the shop feeling how we want it. Completing it before then could see us make changes too soon, and there is no win in that.

Also, our small-steps approach has us in control whereas a more traditional new shopfit approach would see the shoplifter in control and that’s not what we want as retailers.

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Management tip

Owning your retail space

I am just back from attending The Retail Summit in Dubai. It’s good getting out and looking at other retail again, after 2 years. One thing corporate retail does well is owning the retail space, with a whole of story visual. Here in indie retail world we do not do it well: there are too many messages, too much noise that is not connected, too many distractions.

This first one did feel a bit much, but … it was noticeable.

This one is a toy shop with all wall space dedicated to brands they sell – I suspect funded by the brands. but, nevertheless, effective.

Claire’s is an international chain. Their look has been like this for several years. Their corporate imagery frames the products they sell. Very cohesive.

Now, this last one is a bit different. It’s Typo, the Australian company. While there is a cohesive visual throughout the store, each wall is different. I included this photo to show how they use green life texture to make the shop more appealing.

We have done this is 2 of our shops. Not on the scale of Typo, but it does look good. In a newsagency business it works especially well behind the counter.

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retail

Buying a magazine

While Ryan Petersen, CEO of Flexport, a supply chain tech platform, posted this video of him buying copies of a magazine with him on the cover to note him not being noticed, I share it here because I, strangely, found it fascinating watching the transaction in the bodega, a convenience store, particularly found in New York. Beyond the transaction itself, it’s interesting to see what’s at the counter, so cluttered. And, I suspect this shop also sells lottery products.

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retail

Milkrun: a business to watch

Milkrun is an Aussie tech / retail startup that is worth watching. What they are doin g is what newsagents could have done back when they were transitioning from being local distributors. But, to be fair, the tech has come into its own and Covid … making Milkrun’s timing for now just right I suspect.

This 7 news story has details:

I mention it because of the comment about dark stores / dark retail – this is a retail situation not open to the public. Dark retail is something I have advocated newsagents have at the back of their shop for an online business, a side-hustle that can use shop infrastructure.

So while it’s too late to get into this Milkrun type of business offering local deliveries, there are aspects of what they have done and are doing that can inspire newsagents, like dark retail.

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retail

AGHA Sydney gift fair “a waste of time”

Several retailers I have spoken with told me the Sydney AGHA gift fair held this past weekend was a waste of time. It appeared challenged to me when I realised that a chunk of suppliers in the fair directory were not attending.

For interstate travellers, retailers and suppliers, I suspect there is plenty of frustration at the costs involved.

More attention needs to be paid to transparency around faders as we come out of the Covid lockdowns. If there are more experiences like AGHA retailers and suppliers will be wary and that benefits no one.

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retail

What a retail trade conference looks like during Covid

For many years I have been fortunate to attend the National retail Federation’s Big Shop in New York early in January. The conference agenda has always offered valuable insights while the trade show floor has offered some excellent connections.

I didn’t make it this year because of Covid travel complexities. This video released by the NRF shows what a conference and tech. trade show can look like during Covid. It also gives some insights into this massive retail conference and trade expo.

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retail

The free mask scam

Look, it’s no big deal, but, hey, human behaviour some days has me shaking my head.

We have a box of masks just inside the door, for anyone to take a mask if they need it. Several times we have seen shoppers, usually older males, take a mask, hold it to their face, walk over to the newspapers, flick through a couple of pages, and then leave, and go to the cake shop or chemist on either side of us.

Is it the free mask they are after? Or, do they want to see if there is any major news and they think holding a mask to their face is the only ay they can do that in our shop?

We’ll continue to offer free masks as the use some make of them is entertaining.

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retail

The scent of Christmas encourages Christmas purchases

For several weeks we have had a Christmas range of candles, soaps, scent sticks and more near the entrance to the shop, places so as to tease but not overwhelm.

It is terrific hearing customers comment. It’s always positive, and often leads to a purchase either of one off the scented products or other Christmas products nearby.

It’s an easy move placing gently scented products near the entrance and near other Christmas products.

In areas recently out of Covid lockdown, shoppers are keen for the Christmas experience. There is a curiosity about what has changed in retail. They are looking for a difference. It’s an opportunity for us to try things out and this is why I suggest to retailers who have not engaged with scents in their stores to consider doing so this Christmas.

We are loving the shopper reactions, and their purchases.

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retail

Fascinating read: Apple as a cult

From a retail brand and experience perspective, this Twitter thread by Chris Hladczuk is fascinating:

Even on a local small business single store level, there are point of application here.

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retail

Should retailers take a stand on vaxxed or unvaxxed in their shop?

There was noise on social media this week when some retailers said they would welcome anyone to their business, vaxxed or unvaxxed.

Vaccination is a vexed (sorry) issue. You’re damned if you speak up and damned if you do not.

I can understand retailers say they welcome anyone as it presents as inclusive. I can also understand retailers saying they prefer shoppers to be vaccinated, especially if they have family and loved-ones who for some reason cannot currently be vaccinated.

While I am not a fan of fence-sitting, I think with this issue we are better off saying nothing because saying something will attract fringe-dwellers and these folks can be demanding, nasty and distracting. I know a retailer who said anyone is welcome and then found tribes of fringe dwellers on their social media doorstep.

By all means have a view for yourself and those who work in the business as it is your workplace and you have obligations. However, I don’t see how that can extend to customers when the government itself does not have a view.

For sure I want everyone who can to be vaccinated, and urgently. If I was in government with the authority, I’d try and find a way to force that, for the health and safety of the community. I’d tie it to some funding or benefit, as happens already in child care. But, I am not in government and owning a shop does not give me the right to dictate what my customers believe, no matter how much I see my shop as my little kingdom.

So, for me, I’ll have my wish and hope that everyone who can gets vaccinated while, at the same time, serving anyone who comes into the shop. And, while doing this, the shop will remain clean, happy and as Covid safe as possible with masks, hand sanitiser, free face masks and the other steps in place that have kept us safe and trading so far.

Covid has a long long way to go I think. This vaxxed and unvaxxed can shop here pitch is another pot-hole on the road that, when we look back on it, will be a small distraction.

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Ethics

Remembering inspiring retail

One thing I do miss is getting to see many inspiring retail situations overseas. This morning I was reminded of a visit in late February 2020 to Cold Rock in upstate New York and this gift and homewares shop. I’ve met the owners many times over the years and this was my first visit to their out of Manhattan flagship store. Here are some photos from this shop.

I have around 1,000 photos from similar inspiring shops from mid 2019 to early 2020.

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retail

Inviting shoppers to the newsagency

Here’s the front of one of my shops. The photo is from yesterday. It is deliberately open with products selected and placed to play against assumptions about newsagencies.

It’s working a treat.

Every day we make decisions in our shops about how we want our customers to see us, what they should expect from us. We do this through our product ranging, shop floor placement and social media pitches.

If we act traditionally, what we see through our register will be traditional. And, traditional is where plenty of newsagents are comfortable, which I respect. It’s not for me … hence the pitch you see in the photo.

Despite what we may think, we do have control over our businesses, what we carry, where it is displayed, how it is displayed, how it is priced and how we speak to it in-store. These are decisions we get to make, decisions that determine how shoppers see and interact with our businesses.

While we are part of a channel, the shops in the channel have become so diversified that there is no one model, no consistent pitch, except in an area under contractual control such as lotteries for those with that.

Now, on the displays … the tables you can see continuously evolve. There are major changes every two weeks and less major changes every few days. Oh, and in terms of the tables, we have eight positions like the in the photo inside the shop, each providing their own storytelling opportunity.

This space is called the dance floor, because of the never ending dance of movement of inventory and display fixtures.

I am grateful to the team members who have brought this latest offer alive. They have done a wonderful job.

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Newsagency management

All eyes on the CBD

Capital city central business districts are confronting challenges in attracting shoppers. With plenty of city office workers not returning to the office, everyday shopper traffic is down. This presents a challenge for retailers.

Rather than dealing with the change and a long-term change, because that would be tough to do, some city administrators are investing to try and lure people in.

Melbourne, for example, has launched council subsidised discount parking and a state government and city council funded dining voucher that provides a rebate of up to $100.

While these types of cash related campaigns are interesting, I don’t think they will solve the issue for the issue is structural. The pandemic has shown many people an alternative they had not previously considered.

More people are working from home permanently, reducing weekday core foot traffic in the city.

meanwhile, retailers in regional Australia continue to do well.

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retail

Nike leads on migrating sales from retail to direct to consumer

Nike, like many online present international brands had a good Covid. It was so good, in fact, that they have made some decisions as to future sales channels, a reported recently by CNN:

Nikes are getting harder to find at stores. Here’s why

New York (CNN Business)Struggling to find Nike sneakers at your neighborhood shoe store? That’s by design.

Nike wants customers to buy more of its shoes, clothing and gear at Nike stores and on Nike.com and its apps, as well as at a more limited group of retailers like Dick’s Sporting Goods (DKS) and Foot Locker (FL). So the company in recent years has slashed the number of traditional retailers it sells its goods to while shifting to grow directly through its own channels, especially online. That has affected big and small retailers. In addition to pulling out of some independently owned stores, Nike (NKE) also ended a partnership selling on Amazon (AMZN) in 2019. Nike has not disclosed which retailers specifically it has cut ties with.

The company’s move away from a primarily wholesale distribution model is a departure from the early decades of Nike. Small, independent sneaker retailers were key to growing Nike’s popularity in the company’s early days, when people found out about upcoming shoe releases from visiting the local shop. But Nike has said it can make more than double the profit selling goods through its own website and physical stores than it can through wholesale partners.

Nike gets to control the shopper experience more tightly and the prices at which products are sold when it goes directly to consumers. That’s a big deal for Nike, a premium brand that wants to ensure merchandise is showcased to customers in enticing ways and prevent products from being discounted too heavily.

Is this a trend in our channel? Not yet as far as I can tell. Sure, there are some supplier who sell direct, but not many and not a high volume. Often, their execution is less than ideal.

Is this a trend we are likely to see in our channel? I think so. We should plan for it, expect it. If I was a supplier it is what I would do. The less steps between a manufacturer and the consumer of what they manufacture the better for the manufacturer.

What should we small business retailers do? Be aware. Source locally. Favour suppliers that are clear in stating they will not go direct.

I think it will be another year or two before we understand the extent of disruption to high street retail wrought by Covid. The Nike story is but one example. My advice is don’t blame Nike. They are doing what they need to do for their business, for their shareholders. That is their obligation. It is the obligation of major suppliers, too. hence my suggestion to be aware.

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Newsagency challenges

Kudos Modern Brands for virtual Toy Fair engagement

Toy supplier Modern Brands has sent ut care packs to retailers it would have otherwise met with at the Melbourne Toy Fair. This is a terrific move from the company timed to connect with the virtual events being run to capture orders at this important time of the year for toys.

Modern Brands is one of several suppliers engaging creatively with toy retailers this year without their being a physical Toy Fair event.

The unanticipated arrival of the care package has created a buzz that is important for this trade show and is certain to help encourage retailer purchases.

Feedback so far is that the virtual toy fair experiences are working well.

Considering the various trade shows connected with our channel, the Toy Fair is executing the trade show opportunity the best in my view.

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retail

Woolworths and cashless retail

Another Woolworths Metro store in Sydney is going cashless. The announcement of the move is kicking up a storm on social media with over 2,000 tweets yesterday in a few hours.

It will be interesting to see how this plays out for the company. In several US cities now regulations have been passed requiring cashless retailers to have a facility for taking cash from people who request that.

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retail

The easy counter impulse line – Racing Babies

Racing Babies is a simple product, fun and almost disposable … a perfect impulse line at the counter. Purchased easily by people of all ages, this is an example of an easy, fad-like, product with which to drive basket value.

Racing Babies has worked for us this Christmas – yet another non-traditional product line working in a newsagency.

These counter lines change every few weeks. Get in, sell through, replace with something fresh.

Here’s a video from the maker, which has helped attract shoppers for the product.

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Fun

Retail sales in Australia up 7% in November

The ABS yesterday released preliminary results for retail sales in Australia for November.

The seasonally adjusted estimate rose 7.0% ($2,071.6m) from October 2020 to November 2020.

In seasonally adjusted terms, Australian turnover rose 13.2% in November 2020 compared with November 2019.

As I have noted in this place already, plenty of newsagency businesses for which I am fortunate to have seen data delivered even better results, 20% and more growth in November 2020 compared to November 2019.

I’ve talked to other retailers too, jewellers, toy shops, bike shops, garden centres and more, almost all were up in November. Those doing best are those playing beyond what has been traditional for their channels.

That said, I am not in the retail is back camp. No, my view is that retail has fundamentally changed. It will not go back to where it was. The future is the future and not a re-visit to the past.

What we sell, how we sell, when we sell and to whom we sell has changed and will change further. Covid has sped-up changes that were occurring already.

This is all good stuff for retailers who embrace change.

The ABS preliminary figures are good for the whole economy as the growth they report encourage optimism for 2021.

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Newsagency management

An early look at Christmas 2020 in local small business retail in Australia

I am grateful to the many retailers who have shared recent year on year comparative sales data. This has enabled me to a deep dive into shopper traffic, basket depth and product category performance. I have done this to get an early look into what Christmas 2020 in local small business retail might look like.

The headline is that Christmas 2020 looks good in local small business retail.

Local high street retailers are doing considerably better than shopping mall retail. Suburban, regional and rural high street retail businesses, for which we have comprehensive sales data, are doing very well. They are experiencing solid double-digit year-on-year growth. For the dataset of 60+ businesses in our latest analysis, the average year on year revenue growth is 22%.

What is interesting is that the spike in revenue growth is not matched in a spike in shopper traffic. Rather, the revenue spike has come from shoppers buying more in each visit, driving better shopper efficiency. We are seeing average sale value increase by between 10% and 25%.

The dataset includes business across all states and territories except for the Northern Territory. The results are universal. There appears to be no difference between Victoria, which was in lockdown for some of the weeks under analysis and other states that were not in lockdown.

In terms of Christmas specifically, data indicate excellent year on year growth in Christmas card sales. The same is true for Christmas decorations, Christmas-themed home decor and gift wrap. Year on year growth is, again, 20% and more.

Locally made products are doing particularly well. Shoppers continue to engage with supply chain questions. A common question relates to sourcing from China.

Also of note is excellent growth in sales of calendars and diaries. The diaries growth encourages an optimistic outlook on 2021. Smart retailers are pitching it as that and having some fun with putting 2020 in the past.

Back in March, in the early days of Covid in Australia, jigsaws were hot. They sold out fast. Some expected the surge to fade over time. The latest sales data for October and even into the first two weeks of November suggest otherwise. Yes, jigsaw sales remain strong. half of the stores in the latest dataset sell jigsaws and every one of them is reporting year on year growth. The average of that growth is 150%. Key is breadth of range of supply.

In addition to the jigsaw growth, crafts, art, maker kits and similar are all showing strong results.

Comfort gifts are especially strong. Core in this category is plush. Plush is often dismissed as being tired or ho hum. We have seen sales in the plush space up as much as 50% off a strong base. In one local high street retail business in one recent week, for example, they did $1,850.00 in everyday plush, more than double their usual sales. Range, again, is key this this success.

Not reflected in the POS software collected data is anecdotal evidence that people are spending more this Christmas. Many retailers spoke to this. They spoke of shoppers saying they were spending more on loved ones as well as buying gifts for some they would not usually buy for.

There is the wonder as to the role of government stimulus funding on the sales results. While retailers think is is a factor, they do not see it as the key factor. If time does reveal it as a key factor, local small business retailers will respond accordingly. They are an agile bunch.

Considering the sales data and the and the anecdotal comments, Christmas 2020 looks strong. Plenty of retailers are already talking up the first quarter of 2021.

FOOTNOTE: I wrote this for my POS software company yesterday as it relates to not only data from newsagencies. I share it here as it speaks to optimism so many newsagents feel right now.

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retail

Some retail businesses are having an awesome 2020

I wrote this article a few days ago for a publication and share it here because I know of some newsagents who are having an awesome 2020 and who feel uncomfortable talking about their success. Kudos to newsagents having a good 2020. This is success you have made for yourselves!

…

Some retail businesses are having an awesome 2020

Yes, some retail businesses are having an awesome 2020, plenty in fact. However, most of those having success this year do not want to talk too much about it. They want to keep a low profile because most of what’s in the media about business in 2020 is negative and they do not want to distract with what they think is a unique good story. Some even feel ashamed at their success.

The reality is that many retail businesses, especially local small retail businesses, are having a good 2020.

Yes, there is excellent good news out there. Here are some good news stories we see in our work with specialty retail channels, without identifying store details. These are channel-wide stories with many businesses in each channel having success.

  • Garden centres are doing very well, offering customers the ability to grow their own produce, be more self sufficient, eat more healthily. Many garden centres we are working with have been challenged to keep up with demand. They have risen to the occasion, helping many folks into their first ever veggie patch.
  • Farm supply / rural produce businesses have had a big and successful year. Sales are up as more people are living in regional and rural locations and needing more materials as they work on their properties in these locations.
  • Toy shops are doing well helping people enjoy their time at home. Those who engaged online have done especially well. Those that expanded their jigsaw, game and relaxation product ranges have done well.
  • Pet shops have done well as pets have become even more important this year, offering comfort and company, making isolation easier.
  • Bike shops are having a terrific year as they offer people enjoyable ways to remain healthy in a safe way.
  • Fishing and outdoors businesses are doing well, too, thanks to their ability to help people be more self sufficient for food.
  • Newsagents are having an awesome 2020 as they have become more relevant through offering essential services, keeping people informed and helping people enjoy home time more through their games, jigsaws, crosswords and more.

We know many small local and independent retail businesses that have done so well that they do not qualify for government pandemic assistance. Double digit growth in 2020 is real for them. They are loving being in business and serving their local community. They are loving that local shopping is more popular in 2020 too.

So, while the TV news and current affairs programs focus on stories of doom and gloom, there are many, hundreds and thousands of good stories, happy stories, stories of growth and success in small business retail … stories of success in 2020.

For many of the business owners enjoying success this year, they have made it happen through their decisions and actions, they have pursued success and for this they have every reason to be proud.

Well done to all of these small business retailers having an excellent 2020, well done!

We are grateful to be part of this, part of the community of businesses having a good year. We are thankful that through what we make we are able to play a role in helping retail businesses find and nurture success.

Now, if only media outlets could share some of the good news stories. They done;t have to look far to find them.

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retail

Shipping delays may impact Christmas sales

As I mentioned in an earlier post, Christmas is well under way with terrific card sales already in plenty of businesses.

Some suppliers, however, are experiencing delays in shipping Christmas product, delays of 2 to 4 weeks depending on the supplier. These delays challenge business for those suppliers as retailers are already looking for alternative suppliers.

With Christmas alive right now, it’s appropriate retailers make the move.

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retail
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