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Lessons to be learned from "interesting, unique, one-of-a-kind stores", May 28, 2009
This review is from: Retail Superstars: Inside the 25 Best Independent Stores in America (Hardcover)
Initially, both James Cash Penney (The Golden Rule in Kemmerer, Wyoming, in 1902) and later Sam Walton (Wal-Mart Discount City in Rogers, Arkansas, in 1962) opened one retail store that eventually became a major chain. The same is true of others such as Home Depot, Staples, and Walgreens. Of course, not all chains have fared well, nor have most so-called "Mom and Pop" stores as well as franchisees of major chains. In this volume, George Whalin focuses his attention on "the 25 best independent stores in America." He asserts, and I agree, that reports of the demise of independent retailing are greatly overrated. "Wal-Mart's growth certainly contributed to the failure of weaker retailers, but the strong ones did just fine. And strong, well-run independent retail businesses continue to thrive today."
During the course of the research that preceded the writing of this book, Whalin "discovered common characteristics and some startling differences. They all share an extraordinary passion for their businesses and an obsessive commitment to serving customers." One of the most surprising revelations emerged when Whalin asked owners and CEOs if their companies had been built based on a business plan or a set of guidelines. They "invariably answered no, their growth was guided by what customers wanted and expected from their stores, what the marketplace dictated, and how they could best serve their customers." In the National Retail Federation's most recent survey, the 100 largest U.S. retail companies operate about 148,000 individual stores. "In most cases, as the number of stores increases, customer service decreases. Unlike the stores profiled in this book, the largest retail chains generally do a poor job tailoring merchandise to a specific marketplace or to the people living in nearby communities." That is also true of the Moms and Pops who now operate franchises of 7-Eleven, Easy Go, and Dairy Queen.
Whalin notes, "The stores profiled in this book bear no resemblance to the mom-and-pop stores of yesteryear. These are successful retail enterprises run by savvy merchants who know their businesses and how to grow and prosper in the most competitive retail climate in history." Here are a few brief excerpts from his narrative in which he suggests what can be learned from these independent retailers: Gump's (San Francisco), Zabar's (NYC), Celebration of Golf (Scottsdale), Bering's (Houston), and Toy House & Baby Too (Jackson, MI).
"The best business strategy for specialty retailers has always been one that produces legions of delighted customers who love and enjoy everything they buy so much that they can't wait to visit the store again and again. In this regard, Gump's excels and enjoys a sterling reputation with well-heeled San Franciscans and tourists alike who appreciate top-quality, out-of- the-ordinary giftware, jewelry, and home goods. Gump's nurtures these relationships over the long term with a good number of customers who have remained loyal generation after generation."
"In a city in with hundreds of stores selling these same categories of merchandise, two important factors make Zabar's a favorite destination for so many consumers. First, the expansive selection; it's hard to believe that so much merchandise can fit in such a small space. The second factor is even more basic - price. Since the very beginning Zabar's has sold merchandise at reasonable prices. Why would anyone shop anywhere else when they can go to Zabar's 365 days a year and buy the same products and brands for substantially less?"
"In Celebration at Golf, at 13,000 square feet, looks and feels much like the clubhouse of an old, well-established country club one might find in the Northeast. `Caddies' clad in the same white overall-type uniforms worn by those at the Masters Tournament greet customers as they enter the store and provide a scorecard that serves as a map to the various departments...In Celebration of Golf separates its departments, or `Celebrations,' based on golf-related themes [e.g. The Players Room, The Men's and Women's Professional Shops, The Spike Shop, The Practice Tee and Club Room, The Art of the Game, and Ye Olde Golf Shoppe] employing distinctive carpeting, wall coverings, lighting, and fixtures to support the theme. Not only does this make each Celebration easily identifiable, it also shows off the merchandise in an inviting environment and piques customer interest."
"The Berings saw the expansion of Home Depot, Lowe's, and the like as an opportunity, rather than a death knell. They knew that by creating a truly unique retail business, they wouldn't need to compete with national home center chains or other mass merchants...With Baccarat's arrival at Bering's, other premium brands made their way into every department throughout the store. Housewares and home décor department sell selections from Herend, Lalique, Waterford, and Spode, along with small appliances from Cuisinart and Viking. The Home Furnishings Department displays fine furniture, decorating accessories, and outdoor furniture, including outdoor kitchens with Fire Magic grills."
Note: You can take a virtual tour of these and the other retail independents at www. retailsuperstars.com.
Here are a few the business lessons that I think can be learned from the "retail superstars":
1. Offer the best selection of high-quality products and brands at competitive prices.
2. Hire people who already have highly-developed people skills and are passionate about what you ask them to sell, people who sincerely believe that customer service is a privilege rather than an obligation.
3. Create and nourish a climate of hospitality in which customers feel both welcome and appreciated.
4. Create an environment in which shoppers feel both comfortable and energized.
In my opinion, George Whalin's most important point is that retailers - in fact any company -- should in every possible way be remarkable "as opposed to doing the same things everyone else in the business seems to be doing. Compared to so many cookie-cutter chain stores that all look alike and carry the same or similar merchandise, one can't help but acknowledge what these truly remarkable independent stores profiled herein have achieved."
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