Be A Great Niche Retailer
By Rich Gordon AKA Retail Rich
As a writer and retail consultant, I tend to look at specialty stores differently than other customers who walk the aisles of a store. In fact, I’m one of the few men I know that enjoy going shopping, even though I’m not necessarily shopping to buy something, I’m always looking for ideas and especially something that knocks my socks off. When I walk into a specialty store, I find myself quickly taking in the overall concept and atmosphere, while looking for visual impact and interesting displays. I’m looking at the merchandise assortment, lighting, inventory levels, cleanliness, signage and even how the employees are dressed. Mostly I’m interested in the customer experience and how well customers are being taken care of. But I’m always looking for something I haven’t seen before, something I can learn, something I can take away and share with my followers on line at retailrichez.com as well as clients.
What I See
Too often, what I see makes me shake my head in disbelief: I see merchandise that doesn’t even seem to belong in the store. I see stained ceiling tiles and vents loaded with dust and dirt. I see poor housekeeping in general. The kinds of things that really make a store look fresh and crisp. Worse than anything, I see too many employees and even managers that seem indifferent to the customers. It’s like they take them for granted, or they can’t be bothered to taking time with a customer to interrupt what they consider to be more important work.
On the other hand, there are times when what I see just blows me away. It’s like the mother ship has landed. Why is it that some stores just really seem to pop? They’re fun, the employees are nice and helpful and everything seems to run like a top. These same stores seem to be the ones that are exceptionally well thought out, easy to move around in and often a new surprise wherever you turn.
The Best Know Their Niche
They know who their customer is, and who their customer isn’t. They know what business they are truly in and what business they’re not in! Very little else matters! Just looking at the store you know they’re on top of every detail. There is no doubt that these people could teach us all something. One more interesting fact: They seem to have customers in them more so than anywhere else, especially on the days when it really counts.
Planning, Imagination and Discipline Are All Important
For any specialty retailer, large or small, great retail success can be defined as that point where well thought-out planning and imagination combine, and are supported with disciplined execution. It’s kind of like adding 3 + 3 and getting 8.
The fact is that plans and imagination are almost worthless without real discipline and follow through. So you need planning, focus and discipline. Some retailers that have the discipline and follow through may create a nice clean store, but the store isn’t always too exciting, special or cohesive without some planning and some real imagination. You’ve got to know who you are and where you’re taking your store. There has to be some inspired creativity to be truly special!
The Best Store Owners Are Extremely Focused
We all know that as small specialty retailers, we don’t have the budget, the marketing and the strength of competing with the big boys, and they can’t always do everything their customers would like to see. We just can’t afford to make too many mistakes or missteps. We absolutely must have focus on that “one thing”. Remember Curly in City Slickers?
REMEMBER CURLY?? JACK PALANCE
Curly: Do you know what the secret of life is?
Curly: This is. (holds up one finger)
BILLY CRYSTAL-MITCH: Your finger?
Curly: One thing. Just one thing. You stick to that and the rest don’t mean SQUAT!
BILLY CRYSTAL: But, what is the “one thing?”
Curly: (smiles) That’s what “you” have to find out.
I’m sure that most of us would say that it’s not one thing. It’s a myriad of things—all critical. But if you think about it, it really does come down to one thing. . . one central question: What is the “one thing” that you do better than anybody else out there. Do you know what that is? Do you have any one thing or more than one thing you do better than anyone else? What is the “one thing” that your customers come to you for, before they go check out any other store?
Answering these questions with careful thought, some research, some soul searching and a clear focus is essential to a successful strategy. With a limited budget and resources, we don’t have the luxury to flounder around a whole lot, trying to figure out what we’re going to be when our store grows up. You need to find that “one thing” NOW! And you need to do that “one thing” so consistently and so exceptionally well, that you begin to build a reputation, which in fact becomes your rock solid competitive advantage against other retailers. It shouldn’t make any difference whether they are large or small, next door or across town. The market (this market niche) is your focus and yours to own, period. . . end of story.
A Little More Explanation
Think and breath exactly what the core of your business is to be. Don’t let there be the slightest doubt for your people or your customers as to what your store’s focus is. You must constantly analyze everything you bring to your store in terms of whether it will add to your stores focus as well as the appeal of your core customers who love you because of that “one thing”. Store atmosphere, which includes things such as lighting, fixtures, design, smells, surfaces and touch, music and sound—all most compliment and enforce your core. Everything you do in your store, in terms of efforts, time, energy, peripheral products and services are there to support and play off your core. There should be great synergy between your core business and these things. If not, you may be diluting your effect or wasting time, money and energy. Any other products and distractions may be hurting you, your sales and possibly confusing your customers. Think of these things as possibly “the dark side”. If you can’t describe what your store is all about in a few words or one simple short sentence, you may still not be focused enough! I’ll give you two sentences to describe what your store is all about, but you need to include who you are, what products and services you offer, and who your target customer is. The target customer should be the person that absolutely loves you. It may sound crude, but nobody else really counts for much in this objective. By the way, you need to craft this simple sentence to help you establish clear boundaries that limit the scope and range of our business to that “one thing.” Next, I would tell you to read the chapter from my book, “A Line Out The Door” on mission statements. I’m serious. Just keep in mind this won’t be a mission statement that no one understands like you’ve heard or seen before.
Metrics That Matter
I never said that finding and specifically identifying the “one thing” would be easy, but it should be a very energizing and exciting exercise or experience for you. If you truly are focused, things become a bit more simplified, believe it or not. It really is like jumping on an exciting train to “clarity,” and you’ve just left behind unneeded chaos and stress. This train is helping you leave behind the old baggage of questionable product categories, customers who are only shopping you for low prices and unprofitable use of time or expenses. The fact is it’s hard to try and please everyone. My only fear with this exercise is that many of you may be saying, “I’m already focused on my specialty. My point is, you may still not be focused enough to be the absolutely best at your “one thing”. Having that “one thing” should allow you to focus on the metrics that matter. Zero in on the product information, customer preferences and all other numbers that help you do that “one thing” with a laser-guided focus.
With a new and compelling crystal clear vision of the customers you want to focus on and how you’re going to knock their socks off, you want your customers to come into your store with their mouths hanging open and exclaiming, “the mother ship has landed! The best stores often look clean, crisp, and exciting because they actually made things cleaner, crisper and are filled with what their customers want. They have simplified and focused. Things ARE probably simpler for them. Find that “one thing” in your business, and build an amusement park or wonderland of nothing but your niche, for your niche customers! They’ll love you for it!
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