tag:blogger.com,1999:blog-46211601463369467912024-03-13T04:45:53.062-07:00Retail TouchPointsRetail Touch Points is a new blog providing strategies to optimize every customer interaction. It is part of an E-media network designed to inform and connect retail executives in corporate management, marketing and operations with customer-centric ideas.Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-4621160146336946791.post-79108877672396620792009-02-12T11:32:00.000-08:002009-02-12T11:33:11.136-08:00Insight-Driven Retailing Key To Positioning For The Post-Recovery Consumer Market<span style="font-style: italic;">By Dave Boyce, Vice President of Product Strategy, <a href="http://www.oracle.com/industries/retail/index.html">Oracle Retail</a></span><br />Economists may quibble over whether the U.S. economy is technically in a “recession” or not, but as today’s retailers are well aware, times are tough. The rising costs of basic necessities and a shaky job market have left consumers understandably reluctant to part with their hard-earned dollars unless they feel it is absolutely necessary.<br /><br />How does a retailer compete in such a difficult environment? The traditional means of boosting lagging sales and saturating the market with new stores, will not work in this climate. There are <span style="font-weight: bold;">not enough new customers</span> to go around these days, and cannibalization is not a viable long-term strategy.<br /><br />Instead, retailers need to ensure short- and long-term success by <span style="font-weight: bold;">maximizing their return from existing customers</span>. Advances in business intelligence technology have enabled retailers to embed valuable intelligence, such as <span style="font-weight: bold;">consumer preference data</span>, within the business processes that enable merchants to make better decisions, from the supply chain all the way to the stores. We call this strategy insight-driven retailing.<br /><br />We believe Insight-Driven Retailing will help retailers maintain optimal performance and satisfy customers while focusing on same-store sales, rather than saturation and dilution of a tight marketplace. In addition, you can survive and build strong customer relationships during a period where competitors who lack insight will lose customers and possibly go out of business. When the economy recovers (as it inevitably will), insight-driven retailers will be primed to take advantage of new opportunities for growth, both through increased basket sizes of existing customers and a positive image to attract new ones.<br /><br />Retailers who practice insight-driven retailing make better decisions across the enterprise thanks to integrated, end-to-end business processes, including c<span style="font-weight: bold;">onsumer-driven supply chain management, localized merchandising</span> and assortment planning, and space optimization. Quarterly performance hinges upon the day-to-day decisions, both large and small, that merchants make in areas such as <span style="font-weight: bold;">pricing, allocation and buying, and promotions</span>. These decisions swing the all-important same-store sales percentages up or down by as much as one point.<br /><br />Let’s take a quick look at how insight-driven retailing bolsters retailers’ performance in key business operations such as supply chain management, merchandising/assortment planning, and space optimization.<br /><span style="font-weight: bold;">Pull, Don’t Push</span><br />By now, most retailers realize that a “pull” supply chain driven by actual consumer demand is preferable to a “push” supply chain driven by manufacturer and retailer promotion. Customers who are used to literally having the world at their fingertips, thanks to the Internet and personal electronic devices, are no longer interested in being told what products to buy.<br /><br />But how do you determine what consumers actually want to buy? Last month’s sales numbers are obsolete by the time you look at them. Insight-driven retailers know that all players in the supply chain must have <span style="font-weight: bold;">timely access to daily store-level data</span> that will inform them of what consumers want today, not last week or last month.<br /><br />Using tools such as secure Web portals, insight-driven retailers propagate current consumer demand data throughout the supply chain, enabling maximum responsiveness and agility. This, in turn, increases customer satisfaction levels and <span style="font-weight: bold;">market basket sizes</span>, as well as decreases the amount of unsold inventory in the supply chain and even levels of “safety stock.”<br /><span style="font-weight: bold;">Retailing, like Politics, is Local</span><br />There is no way to offer the same kind of personally tailored customer experience in a physical store that you can on an e-commerce site, but by <span style="font-weight: bold;">localizing your merchandising and assortment plans</span> at the individual store level, you will reap significant intangible benefits, such as improved customer satisfaction levels, as well as tangible benefits, such as higher margins and increased basket sizes.<br /><br />In recent years, breakthrough innovations have enabled retailers to capture new intelligence regarding trends and customer behaviors at the store level and embed it into their pricing and markdown systems. As a result, I believe retailers can achieve <span style="font-weight: bold;">5 to 15 percent improvements in gross margin dollars</span> by integrating pricing and markdowns down to the point of sale.<br /><br />In addition, retailers who embed customer <span style="font-weight: bold;">SKU preferences</span> into their profiling, forecasting and optimization practices can improve the accuracy of buying and allocating merchandise, creating 5 to 10 percent improvements in gross margin dollars and improved inventory turn. Furthermore, I believe retailers can <span style="font-weight: bold;">increase sales 1 to 3 percent</span> by gaining real-time visibility to inventory across channels, improving both the customer experience and store inventory management.<br /><br /><span style="font-weight: bold;">The Last Mile</span><br />Space Optimization is a natural complement to consumer-driven supply chain management and localized assortment planning. What’s the point of creating a lean, mean supply chain targeted to local consumer preferences if customers cannot find the products they want due to lack of space or poor store layout?<br /><br /><span style="font-weight: bold;">Space Optimization</span> allows retailers to use every square inch of selling space to its maximum profit potential. Optimization systems take in information such as store sales, customer preferences and product sizes to produce space plans based on business rules, forecasted demand, and profit potential. Assortment plans can thus be executed in a manner that maximizes the sales potential of floor selling space.<br /><br /><span style="font-weight: bold;">Insight Is The Key</span><br />Pull-based supply chain strategies, localized product assortments, and optimized space planning are critical consumer-centric strategies retailers must consider in today’s hypercompetitive retail environment. The key common capabilities for deploying them means getting inside the heads of consumers and driving these insights across <span style="font-weight: bold;">seamlessly connected planning and execution functions</span> – from the merchandising organization, through the supply chain, and down to the individual store level. With an insight-driven approach to retailing, retailers will deliver the value customers are looking for, while delivering growth and bottom-line improvements.<br /><br /><span style="font-style: italic;">Dave Boyce is Vice President of Product Strategy for Oracle Retail. He joined Oracle in 2005 through the acquisition of ProfitLogic where he served as Vice President of Marketing & Business Development. Dave holds a BA in German Literature and Philosophy from Brigham Young University and an MBA from Harvard Business School.</span>Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com3tag:blogger.com,1999:blog-4621160146336946791.post-90747911730379365102009-02-12T11:31:00.000-08:002009-02-18T07:29:26.425-08:00Solving the Post-Holiday Revenue Shortfall By Turning Returns Into Sales<span style="font-style: italic;">By Tom Rittman, vice president of marketing, <a href="http://www.theretailequation.com/">The Retail Equation</a></span><br /><br />It’s no secret that the slumping economy is having an affect on consumer spending – a trend that will undoubtedly continue through the post-holiday shopping season. And what sales boosts a retailer <span style="font-style: italic;">does</span> get may be overshadowed by the challenge of managing returns after the holidays. Now is the time for retailers to maximize the revenue potential from every customer transaction, and there is a light at the end of the seasonal shopping tunnel: Customer returns may hold the key to reducing retail revenue shortfall.<br /><br />Some companies have embraced the attitude of <span style="font-style: italic;">“If a customer is already here in the store and has return money in hand, waiting to be spent, why shouldn’t it be spent here?”</span> Retailers have a unique opportunity to reinvent the return desk by utilizing “return optimization,” turning the point of return into a profitable sale and boosting customer loyalty in the process by creating a positive return experience and incentive to continue shopping.<br /><br />Retailers who have optimized their return transactions have achieved revenue lift by issuing intelligent incentives following legitimate returns and exchanges – and increased customer conversions while reducing fraud and abuse, resulting in incremental sales increases of more than 1%. Implementing incentives could spell about a $10 million increase for, say, a $1 billion retailer.<br /><br />Dos and Don’ts to successfully maximize post-holiday revenues:<br /><br /><ul><li><span style="font-weight: bold;">Don’t underestimate the importance of proper staffing</span> – Make sure employees know company return policies and clearly communicate them to customers. In addition, printing policies on store receipts and well-placed signage will prevent misunderstandings.</li><li><span style="font-weight: bold;">Do supply return customers with a reason to keep shopping</span> – Programs the incentive customers with returns can facilitate significant incremental sales at the point of return and build customer loyalty by using a customer’s return information to instantly customize a coupon for that particular person and keep them shopping. </li><li><span style="font-weight: bold;">Don’t ignore the impact of return policies on consumers</span> – Be aware of how the processing of returns can impact relationships with customers. Long lines and cumbersome return policies do little to assuage crowd tensions, voiding out any positive first impressions made at the initial sale. </li><li><span style="font-weight: bold;">Do prevent customer return fraud as it occurs</span> – Return authorization software can use a customer’s driver’s license to identify their unique return behavior, tracking how frequently they return items and the dollar amounts of past returns. Since less than 2%of consumers are responsible for fraudulent or abusive returns, the software protects honest customers with more flexible return policies. </li></ul>__________________________________________________________________________________________<br /><span style="font-style: italic;">Tom Rittman is vice president of marketing of The Retail Equation, a leader in retail transaction optimization solutions. The company’s applications use statistical modeling and analytics to predict consumer behavior, and its SaaS delivery enables retailers to achieve measurable ROI. Its solutions are operating in over 12,000 stores in North America, supporting a diverse retail base of specialty, department, sporting goods, auto parts and more.</span>Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com0tag:blogger.com,1999:blog-4621160146336946791.post-74977945697687765322008-07-14T09:43:00.000-07:002008-07-14T09:59:15.149-07:00Clouds in the Coffee<span style="font-size:100%;"><span style="font-style: italic;">By John Gaffney, Senior Editor</span><br /><br />A highly caffeinated look at the recent developments at Starbucks:<br /><span style="font-weight: bold;">Cup One: Grande Finance:</span> This layoff-store-closing and store opening cancellation had nothing to do with the economy. Now I know there have been some industry pundits and Wall Street analysts that have said the opposite. Starbucks has managed to build a very profitable business by getting people like me and you to spend $4 a day, $20 a week and $80 a month on coffee. And that might be a light month for most people. The per store revenue growth for Q2 was around five percent, according to Starbucks financials, not enough to merit closing 600 stores.<br /><br /><span style="font-weight: bold;">Cup Two: Double Espresso</span> What did it have to do with? Overcaffeinated expansion plans. That’s the biggest lesson to learn from Starbucks, no more; no less. You simply cannot overpopulate any market the way Starbucks has. On Market Street in San Francisco there is literally a Starbucks across the street from a Starbucks. Didn’t that tip anybody off? I think you’ll see the drug store retail business suffer from overpopulation in a similar fashion before the end of next year. CVS has 6,300 retail locations. Walgreens has 6,252. On July 7, Moody's Investors Service floated a plan to cut credit ratings on Walgreen citing “slowing same-store sales growth, modest margin pressures and unfavorable domestic economic conditions.”<br /><br /><span style="font-weight: bold;">Cup Three: Underaccino:</span> Those overcaffeniated plans were fueled by some of the very people who now criticize Starbucks as an underperforming company. Those are Wall Street analysts and I would argue that Howard Schultz needs to spend a bit less time obsessing with them. Schultz is a great retailer in my opinion. He is not an investor relations executive. I think he should have realized earlier on that there is a limit to store growth, both same store growth and in new openings. Retailing, and that’s what we’re talking about here, is not an unlimited growth game.<br /><br /><span style="font-weight: bold;">Cup Four: CEO Roast: Big lesson here.</span> Nothing, not a celebrity CEO, not exclusive CDs, not Venti Half-caf-fraps-with-a double shot and whipped cream on top, will give you the kind of growth that Wall Street wants. It is a zero-sum game. Nothing will keep you from the boom-bust-return to sanity cycle that Starbucks played in.<br />Cup Five: Serious Mood Swings: Let’s not forget that this is a retailer that provides health care, obsesses about retail training, pays more than a passing nod to customer experience, and continually looks to innovate. Applause.<br /><br /><span style="font-weight: bold;">Cup Six: Post-caffeine anxiety.</span> Outside of the Wall Street play, there’s one thing Starbucks completely missed, and I don’t know how, and that’s an online presence. I thought they could have been a great morning news, opinion and culture portal back in the day, but that day’s over. Starbucks is looking at the limits of its company and it will be a lesson for us all to watch. <br /><br /></span>Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com0tag:blogger.com,1999:blog-4621160146336946791.post-78345954903837293892008-06-20T07:46:00.000-07:002008-06-20T07:52:53.091-07:00Oracle Delivers Comprehensive Suite Of Retail Apps with Release 13<span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:small;"><div><span class="Apple-style-span" style="color: rgb(51, 51, 51); font-style: italic; line-height: 20px; "><span class="Apple-style-span" style="font-size: small;">By Debbie Hauss, Executive Editor</span></span><span class="Apple-style-span" style="font-size: small;"><br /></span></div><div><span class="Apple-style-span" style="color: rgb(51, 51, 51); font-style: italic; line-height: 20px; "><span class="Apple-style-span" style="font-size: small;"><br /></span></span></div><span class="Apple-style-span" style="font-size: small;">The wait is over. After three years of purposeful acquisitions of best-of-breed retail applications Oracle Retail has introduced Release 13 which Duncan Angove, general manager and SVP says is “an incredibly important milestone for Oracle. With Release 13 we have delivered on our vision to transform the retail business.”<br /><br />What’s unique about Release 13 is the “breadth of the solution,” notes Greg Buzek, president of IHL Services. “These were all best-of-breed applications that have been integrated. This is what we’ve been waiting for since all of those acquisitions. SAP is the only other vendor that comes close to offering the same breadth of all the components in the retail marketplace.”<br /><br /></span></span></span><span style="font-weight:bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Enhancements in Release 13</span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><br /> Oracle notes five key enhancements which comprise Release 13:<br /><br />1. </span></span><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Regular price optimization</span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> designed to deliver enhanced margin, sales and customer-centric pricing<br /><br />2. </span></span><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Merchant workspace</span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> which provides single sign-on, dashboard and reporting capabilities across solutions<br /><br />3. </span></span><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Wholesale functionalit</span></span></span><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">y</span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> for retailers to grow market share by selling to other businesses<br /><br />4. </span></span><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Global performance capabilitie</span></span></span><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">s</span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> such as ‘Multiple Sets of Books’ functionality and Stock Ledger VAT enhancements<br /><br />5. </span></span><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Advanced security features</span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"> that include enhanced user activity logging and secure implementation documentation<br /><br /></span></span><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Metric improvements for specific retail segments</span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><br /> Oracle has designed different components of the system to address the needs of specific types of retailers, noted in particular: fashion, grocery, hard lines and emerging markets. “We have designed the system to meet retailers where they live, understanding that they face unique challenges based on the sectors they compete in,” says Dave Boyce, vice president of product strategy.<br /><br />Boyce describes metric improvements that retailers in each segment can expect to achieve with Release 13:<br /><br />• Fashion – Five to 15 percent improvements in gross margin with improved pricing effectiveness; and five to 10 percent improvements in gross margin by using forecasting and optimization technology to make smarter buying and allocating decisions<br /><br />• Grocery – Up to 10 percent reduction in inventory with precision analytics; and a two percent margin improvement through price, promotions and lifecycle management.<br /><br />• Hard lines – As much as a 2.5 percent margin improvement with space and merchandise optimization; and bottom line improvements through improved trade fund management<br /><br />• Emerging markets – Ability to manage multiple format and geographies; and speed to market by leveraging mature implementation tools<br /><br />IHL’s Buzek agrees that these types of metrics are achievable, albeit dependent on a number of factors. “So much of this is dependent on the installation, the timing, the economy and the retailer’s own internal culture,” Buzek notes. “Additionally to get these benefits they likely need to install all of the components or multiple components.” But, he adds: “It’s not that I doubt Oracle’s claims. The estimates may even be low for what is possible. For the retailer who is willing to embrace the architecture and whose merchants are willing to learn and trust the system, the ROI is certainly achievable, particularly because of existing inefficiencies” that may be in place.<br /><br /></span></span><span class="Apple-style-span" style="font-weight: bold;"><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;">Significant uplift in sales possible</span></span></span><span class="Apple-style-span" style="font-size: small;"><span class="Apple-style-span" style="font-family: arial;"><br /> Buzek goes as far as predicting significant improvements in same store sales for certain retailers. “Those retailers who embrace the tools and improve their execution will benefit the most, improving same store sales by as much as 7.1 percent.” In addition, he says that the fashion and hard lines industries are most likely to see the best results because they are suffering the most inefficiencies to date.</span></span>Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com1tag:blogger.com,1999:blog-4621160146336946791.post-48531588828964479572008-05-13T11:21:00.000-07:002008-05-13T11:28:37.369-07:00Will the Tax Rebates Jumpstart Retail for 2008? Consumers Predicted to spend $42 billion<em>By Debbie Hauss, Executive Editor</em><br /><br />An “unexpected windfall” for many, the 2008 tax rebates may <strong>motivate consumers to spend</strong> more as disposable income, possibly on big-ticket purchases. That’s one perspective from Frank Badillo, senior economist for <a href="http://www.retailforward.com">Retail Forward.</a> In a Retail Forward survey, 19 percent of respondents said they plan to use their tax rebate for a “special purchase” (source: TNS Retail Forward ShopperScape™, February 2008).<br /><br />Industry organizations, including <strong>RetailForward</strong> and the <strong>National Retail Federation</strong>, have predicted that consumers will actually go to retail stores and spend as much as $42 billion of the close to $106 billion rebate money, and this will boost the economy for 2008.<br /><br />But the 2008 boost may be less than hoped for. Representing approximately 40 percent of the total rebate money, the $42 billion is less than households spent on the 2001 tax rebate, which amounted to approximately 67 percent, according to Badillo. Also, “For many households the economic environment might dictate that the rebate be spent in a way similar to this year’s tax refund – to make ends meet or pay off a debt burden,” he says.<br /><br />“The retailers I think will see a nice bump will be grocers who are offering the 10 percent increase, or $30, $60 or $120 additional to the value of the checks,” notes Greg Buzek, president of <strong>IHL Services</strong>. “Since many also have gas stations that offer discounts based on volume at their stores, this extra inducement amounts to either lower grocery bills or lower fuel costs, the two areas where most consumers are getting hit hard today.”<br /><br />Consumers surveyed around the country by numerous newspapers deliver mixed responses. Some say they plan to use the money to pay down long-term debt or just pay for basics like groceries and gasoline, which both are quickly rising in cost. Other consumers say they may use the money for ‘wants’ rather than ‘needs’, such as a new computer, TV or vacation.<br /><br /><strong>Tempting Consumers to Make Special Purchases</strong><br />Big-box retailers, specialty retailers and department stores are hoping more consumers will choose the latter and are offering incentives such as free rebate check cashing and additional percent savings. Following are some of the promotions being offered:<br /><br />· <strong> Sears</strong> is giving consumers an additional 10% when they exchange their rebate check for a store gift card for <strong>Sears, Kmart </strong>or <strong>Lands’ End.</strong><br /><br />· <strong> RadioShack</strong> is offering a 10 percent discount on purchases of $50 or more when the rebate check is used for payment.<br /><br />· <strong>Sony </strong>attempted to pre-empt other retailers by offering a $400 discount on televisions during six weeks beginning in March, before the rebate checks went out, and the company reported an increase in traffic in what is normally a slow season.<br /><br /><strong>Banking on Consumers’ Need to Be Frugal</strong><br />Supermarkets and discount retailers are betting that consumers will spend more of their rebate money on necessities and are offering incentives to garner a bigger share of the rebate spend:<br /><br />· <strong>Wal-mart</strong> is cashing rebate checks for free and waiving the purchase fee on its <strong>Wal-mart MoneyCard</strong>, a prepaid debit card, if consumers use at least a portion of their rebate check to load the card.<br /><br />· <strong>Supervalu</strong> is inviting customers to exchange their tax rebate funds for store gift cards in $300 increments, and is adding $30 to the pot for shoppers at its Albertsons, Jewel-Osco, Shop ‘n Save and other grocery stores.<br /><br />· <strong>Kroger</strong> is adding 10 percent to shoppers’ total rebate exchange, up to $120.<br /><br />· <strong>Home Depot </strong>is encouraging consumers to spend wisely, by purchasing energy-efficient products. The home improvement retailer is offering promotions on light bulbs and energy-saving appliances.<br /><br />Still other retailers don’t believe the rebate checks will have much direct impact on their business and are focusing in other areas. <strong>Target </strong>and <strong>Best Buy</strong> both say they will not make a direct pitch for rebate money, as reported in the Minneapolis Star-Tribune. A Macy’s spokesperson reported to Reuters that she expects most of the rebate funds to be spent on necessities such as food and gasoline.<br /><br />With the average price of regular grade gasoline hitting $3.60 for the week of April 24, 2008, according to the <strong>Energy Information Administration</strong>, it may come as no surprise that consumers may try to hold on tighter to their money this year.Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com0tag:blogger.com,1999:blog-4621160146336946791.post-22133914111263479252008-03-07T07:00:00.000-08:002008-03-07T07:07:46.074-08:00Early Easter May Impact Spring Sales Kickoff For Some Retailers<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_B60ne0vTR6U/R9FaOcGqEVI/AAAAAAAAAJg/hokS_D115i8/s1600-h/walmart.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;" src="http://3.bp.blogspot.com/_B60ne0vTR6U/R9FaOcGqEVI/AAAAAAAAAJg/hokS_D115i8/s200/walmart.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5175016650934194514" /></a><br /><span style="font-style:italic;">By Amanda Ferrante, Assistant Editor</span><br />Although St. Patrick’s Day and Easter aren’t blockbuster holidays for driving retail sales, retail insiders are keeping a watchful eye on the impact of this year’s calendar shift where for the first time in 88 years the two holidays fall just six days apart. <br /><br />With most retailers managing to meet or beat their modest sales forecasts in February, analysts are concerned that this year’s early Easter might throw off consumer spending patterns. “The shift is more on Easter, not so much St. Patrick’s Day,” says George Whalin of Retail Management Consultants. “Retailers prefer Easter to be in the first week of April to give that nice kickoff to spring, but with it coming this early, we still have a lot of bad weather ahead.”<br /><br />While St. Patrick’s Day is still a significant revenue driver for bars and <br />restaurants, analysts point out that the holiday’s impact on sales is minimal, and Easter has also been waning as a sales driver. “In the USA, Easter has become a less important holiday sales event every year for many years now,” says Mark Lilien, Consultant with Retail Technology Group.<br /><br />Beyond the tighter timeline on the two holidays, analysts point out that weather could have a bigger impact on sales for the month of March. “Fewer and fewer customers are buying Easter specific outfits anymore and if they do this early Easter is a disaster, says Jim Dion, president of Chicago-based consultancy Dionco Inc. “It will be too cold for spring clothing in many northern markets. These are two very small sales blips for most retailers.”<br /><span style="font-weight:bold;"><br />SHIFTING SALES</span><br />Other analysts suggest that the calendar shift actually help comp store sales for the month of March and may get consumer spring fever kicked into gear earlier. “On the positive side, this will bring consumers to spend more this quarter, adding some kick to the sluggish first quarter,” says Susan Rider of Rider and Associates, a consulting firm. Rider advises retailers to start promoting spring earlier. “It has been a cold, dull winter, and many are ready for spring. So getting into the spirit will also come with dollars.” <br /><br />There’s speculation that one holiday or the other will be overlooked, but Kathy Grannis, Media Relations Manager for the National Retail Federation, says there’s possibility to promote both at once. “Holidays that fall close to one another basically mean that retailers have to create extra shelf space in their stores, which can definitely be done.”<br /><br />This year, consumers intend to spend approximately $35.04 on St. Patrick’s Day, barely up from $34.89 in 2007, according to the National Retail Federation’s 2008 St. Patrick’s Day Consumer Intentions and Actions survey, conducted by BIGresearch. <br /> “Many consumers have opted out of St. Patrick’s Day this year and opted in for Easter, which is why we see a small dip in spending and participation,” says Grannis.Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com0tag:blogger.com,1999:blog-4621160146336946791.post-55447932784548086932008-01-28T08:10:00.000-08:002008-02-05T19:13:24.126-08:007 Things To Do When Business is Tough to Get!<a href="http://2.bp.blogspot.com/_B60ne0vTR6U/R54E0YKIxeI/AAAAAAAAAJY/TCzHs-7f8w4/s1600-h/Jim_Dion.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;" src="http://2.bp.blogspot.com/_B60ne0vTR6U/R54E0YKIxeI/AAAAAAAAAJY/TCzHs-7f8w4/s200/Jim_Dion.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5160567520897844706" /></a><br /><br /><em>By Jim Dion, Founder & President, <a href="http://www.dionco.com">Dionco Inc</a>.</em><br /><br />Retailers are struggling yet again with the <strong>grim outlook of the economy </strong>for the months ahead. While some argue that if and when a recession is coming, it’s not going to stay for long (6 months at most), or affect consumers’ confidence in a dramatic way, others are voicing far worse predictions. I stand in the middle- looking at what’s happening without worrying too much about it, and rather than sitting back waiting for it to pass, I look for <strong>opportunities</strong>. <br /><br />When business is tough, retailers have a unique <strong>opportunity to stand out and make a difference for themselves and their consumer</strong>. After all, many studies have shown that in times of tight money, consumers don’t necessarily spend less. However, they spend their money more cautiously and wisely- or <strong>with companies that deliver an extraordinary shopping experience. </strong><br /><br />I deliver many keynote speeches on consumer and retail trends around the world, and one of the underling principles for all current and future trends is that in economies of abundance, it is all about <strong>shopping for experience and excitement</strong>. I also teach that while you may not be able to own a category like “Best Bookstore In Town” (not unless you are Barnes & Noble or Borders), you can own an experience that will excite your customers like “Best Personalized Service in a Bookstore.” Our economy, while possibly heading to a downturn, is still an economy of abundance, and it’s these times when we feel uncertain about the future, that there’s a desperate need for excitement and experience. Consumers need it and you need it! <br /><br />So, the question you need to ask yourself is <strong>“How can I excite my customer and deliver an extraordinary experience?” </strong><br /><strong>Here are 7 things:</strong><br /><br /><strong>1. Create Traffic-Stopping Stores</strong><br />Humans are visual. If they like what they see, they buy. It’s not just the product that they need to like. It’s the ambience, the lights, the POP signage, and the packaging. Look at your windows- what have you placed in them that would stop a customer and invite them in?<br /> <br /><strong>2. Create a Sensory Experience for the Customer </strong><br />Thuy T. Tranthi of London-based men’s shirts retailer Thomas Pink, once said, "I want to make sure that the customer has a wonderful feeling of being transported to a different place when they enter one of our stores.” This occurs when we enter a store and are surrounded by light, color, texture, and sound. Interactive retail environments deliver an incredible experience, too. Think of the Apple stores, where products are used as a visual tool and customers are encouraged to “play.” In-store demonstrations also contribute to an exciting experience for the customer.<br /> <br /><strong>3. Photograph Your Store </strong><br />Photos allow you to freeze things in time and to look at them more closely. When you examine the photos, what is it that you have done well? What does not look right? Are those props that you used for your Valentine’s Day windows too prominent making products less visible? Are those price tags too worn out giving the look of “playing” store? It’s amazing how looking at things in 2-dimension enables you to notice things that you wouldn’t see just standing in your store.<br /><br /><strong>4. Provide Professional Service: </strong><br />Approach and educate the customer on your products’ benefits. Thank them and invite them back. Think about how product demonstrations have evolved since the advent of the Web! Customers conduct extensive research on the web and they come to the store more informed than the store associates. Are your sales associates ready for this challenge? Also, do your sales associates know how to sell solutions to the customer’s needs instead of just products? If a customer wants an espresso coffee machine, do your sales associates know what else to recommend to make sure that the customer has everything they need to make the perfect espresso (espresso cups, Italian coffee beans, milk steamer cup, sugar bowl, etc.)?<br /><br /><strong>5. Play “Give Me 5”: </strong><br />Do this with your staff at every opportunity. Ask them to choose five products that would go with each item in your store for a total solution. Have them practice this everyday until they do it automatically. Make sure they do it with every customer.<br /><br /><strong>6. Develop Special “Bundle” Packs: </strong><br />Especially for Holidays and gift periods, putting packages together that contain related items, wrapping them, displaying them and pricing them attractively (“in packages”) is the best strategy to sell more and get a better, more exciting solution for the customer. I call it “suggestion selling for dummies!” Make sure to do this not only at holiday time, but all the time.<br /><br /><strong>7. Mine Your Customer Database:</strong><br />I am always amazed at how many companies I have shopped with over the years, no matter how much I’ve spent with them (and sometimes it’s a lot), who do not encourage me to stop by to check out their new line of products, or to attend a demonstration. Segment your customers by keeping track of their purchases, wishes, needs, dreams, and other information. Review your list of best customers weekly and send them postcards, letters, or e-mails with information on items that they might need, new arrivals, events in your store, events in the community that might interest them, national events, promotions, and/or VIP previews. Remind them that you are there for them and give them a reason to come and visit you.<br /><br />For more insights on these and other topics, visit <a href="http://www.dionco.com">Dionco Inc.</a><br /><br /><em><strong>Jim Dion</strong> is an internationally known consultant, keynote speaker, trainer, and author of the best-sellers "<strong>Retail Selling Ain’t Brain Surgery," "It’s Twice As Hard," "Start and Run a Retail Business," </strong>and <strong>"The Complete Idiot’s Guide to Starting and Running a Retail Store."</strong><br />Jim consults, trains and speaks on consumer trends, retail technology, selling and service, retail merchandising and operations, marketing and leadership. <br />A writer for hundreds of national and international trade magazines and a regular contributor at www.allexperts.com, Jim is consistently ranked at the top for his insights and practical advice. He has also appeared on NBC, Fox News, First Business and CNN Turkey. </em>Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com1tag:blogger.com,1999:blog-4621160146336946791.post-14567554558681306932008-01-10T12:59:00.000-08:002008-01-10T13:58:08.262-08:00Unsolicited Strategy Suggestions For Starbucks’ CEOI’ve been following the news about Starbucks founder Howard Schultz taking back the reins as CEO of Starbucks, and the under whelming plan of attack the company has laid out has left me scratching my head a bit. <br /><br />Tuesday’s edition of <span style="font-style:italic;">The Wall Street Journal</span> quoted Schultz saying he would slow the pace of new store openings in the U.S. (the company had planned to open 1,600 stores) and close some struggling locations, and instead accelerate expansion overseas. Beyond those changes, the only strategic shift mentioned was to improve <span style="font-weight:bold;">customer experience</span> at U.S. stores. With their share price down almost 48% from a year ago, I would have expected a more aggressive plan to fuel the growth engine.<br /><br />I’m all for focusing on the customer experience, but I don’t think that area is where Starbucks needs the help. In my opinion, their stores are still the gold standard, and most of their current customers are extremely loyal. I would suggest the focus for Starbucks ought to be on <span style="font-weight:bold;">attracting new people</span> into the tent by taking a harder look at their marketing and menu items. <br /><br />Now I’m sure Schultz has a lot of people sitting around the table in Seattle figuring out how to right the ship, but based on what I’ve seen so far, I think they are missing some obvious opportunities. Here are my unsolicited suggestions for Starbucks on <span style="font-weight:bold;">kick-starting sales</span> and share price:<br /><br />Ramp Up the Outreach: Much of Starbucks’ meteoric rise was driven purely through word of mouth. Their customers were so passionate, they actively told friends about their experience and once someone sampled the product, they were hooked on the taste and the experience. Now with over 10,000 locations and McDonald’s making a push to grab a larger share of the coffee aficionados, Starbucks will have to work harder to draw new people into the tent. Given the targeted, creative messaging the retailer does in-store, I’d love to see the retailer be more aggressive with email marketing, social media, and other marketing platforms.<br /><br />Expand The Menu: In the interest of full disclosure, I am not a coffee drinker, but I have still spent a fair amount of time in various Starbucks locations consuming their other offerings. I am a big fan of their breakfast sandwiches, but find their menu around lunch and other day-parts to be a little limited. I think this is a shot for Starbucks to turn the tables on McDonald’s and really ramp up its menu of food offerings and other non-coffee beverages. <br /><br />In particular, I’ve always thought there was a missed opportunity for Starbucks to become a destination for desserts –think Cheesecake Factory without the long lines. In his letter to customers on the corporate website, Schultz did promise new beverages and products, so it will be interesting to see what they have planned. I would suggest they look closely at Dunkin Donuts, which has consistently done a great job of adding new flavors and then building up excitement around them with promotions and marketing campaigns. <br /><br />Take Advantage of the Traffic: Starbucks had done a great job of branching into ancillary businesses, with music being the most obvious example. But considering the captive audience they have of devoted customers who spent considerable amounts of hours in their stores, there should be a way to cash in further on that traffic, maybe by branching beyond CDs into books, magazines, etc. <br /><br />Every retail concept has a saturation point and with a Starbucks on every other block in major metro areas, Starbucks may be running out of room for growth. But considering the revolutionary job they have done in creating a great customer experience and building an extremely loyal customer base, I’m not betting on that just yet.Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com0tag:blogger.com,1999:blog-4621160146336946791.post-12106556296745021242007-12-27T10:44:00.001-08:002007-12-27T10:44:24.680-08:00Facing Seasonal Slump, Retailers Ramp, Up Post Holiday Promo StrategiesBy Amanda Ferrante, Assistant Editor<br /><br />The good news from the recently wrapped holiday season, was that retailers were very creative and pushed a lot of the right buttons to drive cross channel sales. The bad news is the efforts still fell short was and most results still fell short of modest sales projections, and retailers are still pushing hard to drive results during the last days of December. <br /><br />Retailers were like little children waiting for Santa this year, lying out discount cookies for hungry shoppers to come in and make their last-minute purchases. And as talk of procrastination danced in retailers’ heads, the cycle became clear- shoppers are still waiting to get the best deals, and retailers are still slashing prices to bring consumers in. <br /><br />Between extended hours and discounted prices, retailers went above and beyond to bring in shoppers during the peak holiday season. During the final weekend before Christmas, Macy’s kept eight of its stores, including its flagship in New York, open all-night from Friday through Christmas Eve. <br /><br />Though its audience is generally in bed early, Toys ‘R’ Us kept its doors open until midnight. JC Penney had its “Ultimate Christmas Sale,” the Friday and Saturday before Christmas, offering a 60% discount on apparel, cosmetics, and jewelry. The department store had doorbuster specials Friday from 4 p.m. to midnight and Saturday from 6 a.m. to noon. Target’s “red-hot deals” emphasize electronics like digital cameras, portable gaming systems, the iPhone and iPod, and the must-have game, Guitar Hero. <br /><br />Despite in-store shopping taking a hit, online shopping continued its climb this year. According to comScore, From Nov. 1 to Dec. 21, American consumers spent more than $26 billion on retail items online, a gain of 19% over the same period last year. The gain is attributed partly to free shipping offers and holiday discounts. <br /><br />POST-SEASON SALES<br />Though the holiday shopping season did not make as much an impact as hoped, retailers are making an earnest attempt to maximize the last days of the year. Though many online retailers offer free shipping during the holidays, it’s been extended in effort to entice customers. <br /><br />Red Envelope, an online and catalog gift retailer, partnered with MasterCard to offer free 2-Day shopping when customers use their MasterCard for a purchase greater than $50.<br />Both Overstock.com and LL Bean are offering free shipping with no minimum purchase, and Zappos.com, an online shoe retailer, offers free overnight shipping. Barnes & Noble offers free shipping on orders of $25 or more through the remainder of the year.<br /><br />In addition to the shipping enticement, sales and promotions are prominent at this time, giving retailers a “second chance” to make their efforts worth it. A sample of some of the post-season strategies include:<br /><br />Holiday and Post-Holiday Sales<br />• Aeropostale offered 50% off several days before Christmas and $5 graphic tees the day after Christmas.<br />• Circuit City’s Red Dot Markdown sale offers up to 60% on computers and accessories- saving up to $200 in laptops. Their Internet-only deal has all iPods on sale.<br />• Nordstrom shoppers can earn twice the rewards points using their Nordstrom credit card during December 26-28<br />• Old Navy’s “Wish it, Win it” Instant Giveaway offers shoppers a chance to win everything on a wish list they create, plus a $10,000 grand prize drawing.<br />• Bloomingdales is taking 50% off, including sale & value items until January 1.<br />• Williams-Sonoma will unveil a new line of natural cleaning products called “Pure and Green.”<br />• Victoria Secret shoppers who buy one bra can get a second half off for the two days after Christmas. The popular lingerie company recently debuted a limited-edition fragrance, “More Pink Please.”<br />• LL Bean offers a $10 gift card with a $50 purchase<br />• Best Buy’s “Very Merry Two-Day Sale” offers free items with select purchases, like a free starter kit with the purchase of a select camcorder.<br />• Target is offering 10% off to shoppers who open up a REDcard credit account.Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com1tag:blogger.com,1999:blog-4621160146336946791.post-79937391567366702022007-11-19T10:02:00.000-08:002007-11-19T10:12:55.972-08:00Retailers Getting Head Start On Black Friday<em>By Amanda Ferrante, Assistant Editor</em><br /><br />With Black Friday just days away, retailers are thinking outside the gift box this holiday season, using new methods to shoppers started early. JC Penney is helping shoppers rise and shine by opening their doors for the traditional holiday kickoff at 4 a.m. and offering <strong>wake-up calls </strong>to consumers on Black Friday. <br /><br />The wake-up call strategy is just one of the new campaigns tapping into <strong>mobile marketing</strong>, as Nordstrom and Wal-Mart are offering shoppers who sign up <strong>text messages </strong>with discounts and special sales. <br /><br />While Black Friday traditionally kicked off with the arrival of the weekly circular, retailers are also using <strong>email marketing </strong>to get a head start on the holiday rush. Circuit City sent out an email on Monday with the headline “Thanksgiving Countdown—Get Black Friday Deals Now.” Other retailers like Kohl's are sending e-mail alerts on upcoming sales, offering web visitors to 10% off their next purchase for signing up.<br /><br />The push to drive business during this key week is a growing imperative as recent research shows an increase in people planning to shop the day after Thanksgiving. A poll from <a href="http://www.maritzresearch.com/">Maritz Research </a>found that 37%of respondents <strong>plan to shop </strong>on the day Black Friday, vs. 34% last year. While the survey found that the majority of consumers were planning to spend an average of <strong>10% less overall </strong>this holiday season, those who plan to shop on Black Friday say they will spend $790 overall on their holiday purchases, compared to $637 for all shoppers combined.<br /><br />Just like the doorbuster shoppers they hope to attract, retailers got an early start this year with campaigns beginning in mid-October, led by Wal-Mart, which launched its "sneak peak" deals to those who signed up beforehand more than a month before Thanksgiving. <br /><br />Yet despite the advance notice retailers were giving customers, Black Friday web sites once again leaked the news early with circulars and coupons appearing weeks before the big day. While retailers have publicly battled against these sites, they have been quietly supported by some merchants. Jon Vincent, founder of BlackFriday.info, says big name retailers began emailing him back in August “to start the line of communication."<br /><br />Looking beyond Black Friday, cross-channel retailers are also readying for <strong>Cyber Monday</strong>. According to the Shop.org/BizRate Research 2005 eHoliday Mood Study, 77% of online retailers said that their sales had increased substantially on the Monday after Thanksgiving in 2004. This year, NRF’s CyberMonday.com web site will feature 500 retailers throughout the holiday season.Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com0tag:blogger.com,1999:blog-4621160146336946791.post-65525995449204145492007-10-03T12:05:00.000-07:002007-10-03T12:24:45.877-07:0090 Second Warning For RetailersFour in 10 customers are prepared to wait a mere 90 seconds to buy goods in-store, according to recent research released by IP solutions provider <a href="http://www.mitel.com/">Mitel</a>. The research, based on a sample of 2,353 consumers in the UK, also found that nearly half (48%) of customers kept waiting in-store will <strong>leave the shop without buying</strong> anything and will go to a competitor.<br /><br />Customers proved to be even less tolerant when they are left waiting on hold when they call a retailer with a question. Only 34% said they would stay on the phone for an average of 90 seconds. The biggest frustration for curstomers when calling a retailer, according to the data, is not knowing where they are in the queue (80%), while 74% cited being directed to a foreign call center and 68% cited the cost of the call.<br /><br />Nearly two-thirds of consumers surveyed said they believe retailers need to make call centers more user-friendly and <strong>42%</strong> think making <strong>more information online</strong> will improve customer service.<br /><br />Lisa Dolphin, retail specialist at Mitel, said, "While retailers recognize the importance of the in-store customer experience and invest in displays, lighting and other mood enhancements, the telephone experience is often overlooked. With the emergence of IP communications there is no excuse for customers to be kept waiting in call queues indefinitely or worrying about the cost of the call."Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com0tag:blogger.com,1999:blog-4621160146336946791.post-50555056309348786812007-08-06T13:56:00.000-07:002007-08-06T13:57:51.202-07:00<strong>Foot Locker May Be Perfect<br />Fit For A Potential Buyer</strong><br />By Andrew Gaffney<br /><br />There hasn’t been a lot of good news coming the headquarters at Foot Locker lately. The specialty athletic retailer recently notified analysts that they would post a second quarter loss, driven by significant inventory markdowns. Comp store sales are expected to drop between 7 and 8% for the period. On top of that, Foot Locker doubled the number of unprofitable stores to be shuttered this year to 250.<br /><br />Foot Locker appears to be dress up its financial ledger for a potential buyer. The company recently announced that it retained Lehman Bros. to explore “strategic alternatives.”<br /><br />Despite the slumping sales at Foot Locker, a few of the changes to point some silver linings for a potential buyer, including:<br /><br /><ul><li>The new executive suite looks strong, after a recent reshuffle. Keith Daly, current president/CEO of Foot Locker Europe, taking over the U.S. operation is a great move. Daly is one of the best merchants and will get the chain back in front of trends. </li><li>The partnership with Nike on the planned House of Hoops stores could be the first fresh offering from Foot Locker in over a decade. This partnership is also significant because Foot Locker has had some fairly public feuds with Nike in the past, so the fact that two companies are working together on the Hoops concept can only be healthy for both.</li><li>Outside of the U.S., Foot Locker is still doing fairly well. While they are closing unprofitable stores here in the U.S. they are planning to add up 30 new locations in Europe in 2008. Dick Johnson, another strong executive within the company, will be taking the reins in Europe from Daly so international growth should still be strong.</li></ul>Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com0tag:blogger.com,1999:blog-4621160146336946791.post-90992162658961147982007-08-01T12:06:00.000-07:002007-08-01T12:56:02.085-07:00<strong>New Blockbuster CEO Faces Long Line Of Challenges</strong><br />By John Gaffney, Contributing Editor<br /><br />Retailing is an active verb. It requires that companies that consider themselves retailers actively generate demand for their products or services. When I look at some of the retailing business models that are under siege these days, I wonder if the ones in danger understand the economics of demand.<br /><br />Entertainment retailing is one of those retail business models that has taken some knockout blows from new delivery platforms. It’s still staggering. Record stores? All but done. Book stores? Having a tough time. Video stores? Blockbuster, the category leader, has posted losses in 9 of the last 10 years. In the first quarter alone, Blockbuster reported a net loss of $46.6 million, compared with $1.9 million of red ink in the same period last year.<br /><br />Well, its time to meet the latest combatant stepping up to take on the tag team of Netflix, On Demand, iTunes, Amazon, Tivo and a line of other services. He’s new Blockbuster CEO James Keyes. He is credited with helping turning around 7-Eleven and putting the convenience chain back on a growth track. Wall St. is optimistically hoping he can achieve a similar turnaround with Blockbuster.<br /><br />During his tenure at 7-Eleven, was credited with using business intelligence to tailor merchandise assortments down to the store level, and ultimately reducing the average footprint to run more efficiently and provide a more convenient shopping experience for their customers.<br /><br />At first blush that sounds like a solid blueprint for reversing the fortunes at Blockbuster. Any number-cruncher could walk through a Blockbuster store today and point to empty aisles and crowded shelves of inventory that isn’t turning. The problem is, the foundation of the video rental business is built on a “watch what you want, when you want,” philosophy. The appeal of Blockbuster for most consumers over the years has been that you can find one of your old favorites while you are picking up that week’s new release.<br /><br /><strong>RAVE REVIEWS</strong><br />If you focus on Netflix as Blockbuster’s biggest nemesis over the past six years, then there is some cause for hope that Keyes can the company around. Blockbuster’s Total Access program has clearly been turning the tides on its online competitor this year. In July, membership at Netflix actually fell for the first time in seven years, after growing at a compound rate of almost 80% per year. Blockbuster’s Total Access membership, on the other hand, has been growing at close to 50%<br /><br />Putting the two movie rental giants side by side, Netflix had 6.7 million subscribers, compared to close to 3 million for Blockbuster’s multichannel Total Access program. Analysts project that the total online rental market will have more than 20 million members over the next four to six years. Assuming that growth rate is in the ballpark, the big question will be how much share Blockbuster can secure.<br /><br /><strong>PLUS OR MINUS<br /></strong>Ironically, in a category that has been over-run by digital formats, Blockbuster’s base of almost 5,000 brick and mortar stores has proven to be a competitive advantage. Consumers are clearly voting for the convenient choice of ordering titles online or driving over to the store for immediate gratification. The challenge for Keyes will be to deliver that convenience in a profitable way.<br /><br />Blockbuster has announced plans to close another 5% of its locations this year and Keyes may be pressured to shutter even more to improve the bottom line. Of course, fewer or even smaller stores could also slow the growth of its Total Access program.<br /><br />In a recent interview with The New York Times, Keyes was already looking ahead to other delivery formats, such as digital distribution, or “next wave of demand.” However, his real ticket for success will likely be punched by the strategy he builds for the traditional brick and mortar business.<br /><br />A reasonable strategy, to me, would be to generate all the demand for my core product that I could. If I was running Blockbuster, I would make sure I owned key customer groups and then I’d generate demand from them accordingly. At brick and mortar locations, I would cater to moms, kids, and gamers. In fact, I’d want to own those groups. Leave the art house groupies to Netflix. Blockbuster needs to get back in front of moms and kids with the concept of movies that the family can watch over and over and over.<br /><br />To an extent that seems to be what’s Keyes is doing. But he may be leaving out the demand gen part. Shrinking the footprint of brick and mortar stores, shrinking the physical inventory could be a big mistake.Andrew Gaffneyhttp://www.blogger.com/profile/17765970655171677584noreply@blogger.com0