Retail Guru

Welcome

Welcome to John Stanley Retail Guru, retail trends report and infosite.

Over any given year I travel to over 25 countries and are constantley coming across new and exciting ideas on how to help my clients be better retailers. The trouble is how how do I get these great ideas across to you as quickly as possible? That is where this Retail Guru infosite comes in.

I pass on those ideas immediatley to my office and then the team place the idea in this site. Sometimes these will be photos, sometimes video and sometimes just text. But the aim is to ensure that subscribers of the Retail Guru infosite maintain a leading edge by picking up global ideas instantly.

I hope you enjoy being a member of the Retail Guru team.

John Stanley

Keeping Your Existing Customers

by Murray Barton http://incommunique.blogspot.com

Every-one knows that it is easier to keep an existing customer than it is to get a new one but how far does this thinking go in your business? Have you empowered staff at all levels of your business to think outside of the box in order to keep your existing customers and keep them happy? Especially in the current economic times every customer you don't have a marketing cost to obtain is money on your bottom line.

Let me give you a recent example from an industry which is likely to be one of the hardest hit from the economic down turn; the travel industry. My partner Lisa and I, recently booked a trip through a large travel agency in Australia. We booked flights and accomodation through the travel agent. We trusted them as experts to get us a good deal on the best flights and good accomodation.

When we got to our hotel it wasn't everything we had expected but it was OK. Then when we found ourselves needing an extra night in the same city we booked an extra night at the same hotel. That was when we got our first shock. The hotel charged us $150AU a night less than the travel agent had charged us. That's a bit more than a reasonable markup and over three nights turned into a not inconsiderable sum of money.

Italian supermarkets NaturaSì provide magnifying glasses to read labels

Ref: www.thegreenplanet.net

The new campaign “Growing taste of clear look” is starting in January. Magnifying glasses will be available on the shelfs of every store of the Italian organic supermarket chain NaturaSì (www.naturasi.it) and are to promote the reading of the information reported on the packaging: a strong signal which is meant to highlight organic quality, and a further help for elderly persons and for those with vision problems.

naturas1“Growing taste of clear look”: this is the slogan used by NaturaSì - the leading chain of organic supermarkets in Italy - to promote in all its 66 outlets spread around the main Italian towns this unconventional initiative, aimed at favouring informed purchases. On NaturaSì’s shelfs several magnifying lenses have been placed to be used for an easier reading of products’ labels. They are marked with small flags and have been hung to a small chain. The customer who wants a “clearer look” can seize the lens, bring it near the packaging and get information about the product’s composition, weight and certifications. As a matter of fact the label include a lot of information, but its size is often too small and discourages from reading.

The scheme is therefore a clear message in favour of transparency towards the consumers: NaturaSì has always been supporting the labels’ reading in order to widen knowledge of the products - especially their origin and traceability - as well as to make available all guarantees of a safe and quality organic product. In the outlets’ notice boards there has been present for a long time now sample analysis on the products in the store as well as the results of control authorities’ inspections.

This initiative is meant to be an additional care towards elderly people with more difficulties in reading closely. Other than seriously visually handicapped people, there is a wide range of population with vision problems that can’t be considered handicaps, but still cause inconvenience when it’s up to hard-to-read products. The goal is to make clear that in providing information clear messages available to all citizens are needed. And this is especially true for foods and daily-use products.

Add Value: Do Not Devalue

The winners during this time of economic crisis will be businesses that realize this is a time to add value and not devalue their core product. Take a walk down any High Street in the world and you will see retailers devaluing their core product. As a result they will find it hard to add value again when the economy improves as customers will become sceptical.

At the same time innovators will emerge and show the way forward.

Neil Grant, from Ferndale Garden Centre in Sheffield in the UK introduced me to ‘Fruit For The Office’. This is a brilliant example of how to add value. ‘Fruit For The Office’ are innovating with what can be perceived as a price led product.

I have illustrated their webpage in this article because it highlights how added value works in the market place.

‘Fruit For The Office’ have taken the product and illustrated the benefits to the target market in a handwritten style  and provided an easy step by step approach to the scheme. They are selling the benefits to the business, the consumer and selling convenience.

If you can do this with fruit, think what could be done with other products.

If you would like to find out more about the concept for ‘Fruit For The Office’ check out their webpage www.fruitfortheoffice.co.uk

McDonald’s are another company that are on the ball when it comes to value. Their new billboards around America have a picture of a Starbucks cup of coffee on it. The slogan is $4 for a cup of coffee, you can get a meal for that at MacDonald’s. This is clever advertising. Coffee is a core product for Starbucks, a perceived competitor, but not the core product for Macdonald’s. A clever market campaign that works on price comparisons.

West Australian Woman Gets Top marketing award in Australia

We do not normally report on the awards in Australia, but this year the Telstra Business Woman of the year came from Fremantle, near Perth and she won the award for a product I believe a number of you would be interested in.

The recipient was Leanne Wesche and the product was Safeguard a valuable product for the fruit and vegetable retailer.

Safeguard Fruit & Veggie Wash

Triumphing over seven of Australia’s leading businesswoman, Leanne Wesche, founder of Safeguard Innovations and Pacco Group was today named the Australian Telstra Business Woman of the year at the glittering annual awards presentation in Melbourne.

In the Western Australian Telstra Business Woman state awards, Leanne won in two categories including the Yellow Business Owner Award and the Nokia Business Innovation Award. Competing against over 5,000 entrants throughout WA, Leanne was also announced the overall state winner for Western Australia. This enabled Leanne to go in the running for the national category awards and qualified her for the prestigious title of 2008 Telstra Business Woman of the Year.

Leanne has over a decade of experience working in the fruit and vegetable packing industry. A dynamic businesswoman, Leanne has been self-employed since the age of 19 and has successfully launched four different companies in the manufacturing and fresh produce industries over the last twenty years.

Leanne’s recognition for her entrepreneurial expertise has come in the form of numerous accolades including the WA Small Business of the Year Award at the Telstra Business Awards (2002), National Winner of the MYOB Business Owner Awards (2002) and the Small Business Development Corporation’s ‘Best Potential New Exporter’ (2002). In the same year she was also named in the BRW Fast 100 as having the 66th fastest growing business. In 2007, Leanne was the winner of the 40 Under 40 Award.
Leanne currently owns and manages Safeguard Innovations and Pacco Group. Pacco Group is Western Australia’s largest fruit and vegetable packing house and supplies up to 80,000 pieces of fresh fruit and vegetables to supermarket chains each day.

 In May 2008, after 18 months of research and product development, Leanne launched Safeguard Innovation’s first product, Safeguard Fruit & Veggie Wash, into the Australian marketplace. Safeguard Fruit & Veggie Wash is an all-natural cleansing wash for fresh produce found to be 100 times more effective than water in removing dirt, chemicals, waxes and bacteria.

Using agricultural chemicals is often necessary for farmers to maintain high crop quality, which ultimately benefits consumers. Safeguard Fruit & Veggie Wash assists in the process of ensuring high quality fruits and vegetables by removing pesticides and other agricultural chemicals that are specifically designed to be ‘waterproof’ and are not normally washed off by rain and irrigation. Some fruits (such as apples) are also coated in wax to preserve the quality and appearance of the produce.

Safeguard is able to remove contaminants so that consumers can enjoy their fruits and veggies the way nature intended.

Consumers are often not aware of who or what comes into contact with their produce on the journey from the growing fields to feeding their family. Safeguard Fruit & Veggie Wash contains all natural ingredients and was developed by food scientists and technologists after trialling 300 different formulas.

Independent tests have shown Safeguard Fruit & Veggie Wash to be up to 100 times more effective than rinsing with water alone to remove contaminants from fresh fruit and vegetables.

Consumers can enjoy the true quality and freshness of fruit & vegetables by adding Safeguard Fruit & Veggie Wash to water when washing their produce.

Safeguard Fruit & Veggie Wash is a new innovative Australian product.  It is a low cost, quick, gentle and natural method of reducing bacteria, dirt, waxes, chemical and pesticide residue from fresh produce, up to 100 times more effective than washing with water alone.

•    Made from a blend of 100% natural and organic ingredients
•    Environmentally safe and biodegradable
•    Easy to use – takes 30 seconds
•    No aftertaste and fresh citrus aroma
•    Scientifically proven and independently tested

Unlike other fresh produce washes, Safeguard Fruit & Veggie Wash is made from all natural and organic ingredients including organic aloe vera, citrus essential oils, olive leaf extract, emulsifier, glycerine and purified water. Safeguard Fruit & Veggie Wash is also biodegradable and is packaged in a recyclable bottle in order to reduce its environmental impact.

Safeguard also has the seal of approval from Good Environmental Choice Australia (GECA). The GECA program awards a mark of recognition for products and services that meet standards of environmental, quality and social performance.

The product has already been launched overseas and is an ideal added value product for farmers markets. To find out more, visit their website www.safeguardproducts.com.au

Are You a Pusher or A Puller?

Revelation Research in the USA have just done some research on whether you push or pull your shopping trolley through the cash register at the supermarket. The results showed that 74% of us pull our trolley through the cash register.

You may wonder why anyone would be doing such research at the present time. Well first of all, most retailers believe we push the trolley through the cash register and display their merchandise at the cash register accordingly.

Pullers are seen as more aggressive and impatient at this point in the shopping experience, while pushers are prepared to take more time. Pullers perceive themselves as more time- sensitive.

I bet you'll think about how you approach the cash register in the future. Perhaps we should have pusher cash registers and puller cash registers?

I came across this research in Retail Insights Edition 11 Dec 2008, Monash University and in the Australian Advertising Age 7 Jan

If you cannot sell it - Rent it

You may feel that you are in the selling business, but if your product will not sell is it the type of product that you could rent?

The rental movement in the retail sector really took off in the hardware sector where the rental business is now big business for some retailers.

Why get into Rental?

When the consumer is becoming more price aware and wanting to spend less, especially on big ticket items, then it is time to brainstorm, how as a retailer you can create value out of the product. It may also be a way of daring to be different and creating a niche for you that your competitor has not considered.

Lisa Girard on the Home Channel Improvements web page explains that a retailer in Tennessee, Orgill started a rental business in their hardware store in 2005 and it is now 10% of their turnover with 6000 customers renting equipment each year.

Ace hardware has the Ace Rental Place program which was started way back in 1993 and 525 stores are now in the scheme.

According to Do It Best, it takes an investment of around $50,000 to set up a rental business in the hardware sector of a business and then expect a turnover of a least $50,000 a year as return on the investment.

Most hardware retailers who are in the rental business look on it as a profitable category.
Perhaps more retailers need to brainstorm the rental business.

I have come across the concept in florists, garden centres and other business sectors.

Would it work for you?

IKEA Keep Growing

Over the last few years I have talked about the IKEA factor and that they could become a major force in horticultural lifestyle retailing. As many readers will be aware they started with “The Glasshouse” a  standalone cubic garden centre in the spring of 2008. Over the last few months they have opened stores in Germany in the towns of Oldenburg and Rostock and in Italy in Turin and Trieste. According to the company these stores have been a big success.

Garden International reports that spring 2009 sees the company open its first stand alone garden centre in Zwolle in Holland.

It will be interesting to follow this company and their expansion. It is to be expected that when a recession hits the people with vision take market share and IKEA seem set to be one of those players in the retail scene ready to grasp the opportunities.

Happy Christmas

No I am not behind the times, I am looking forward to Christmas 2009. I know some readers are going to feel they have only just recovered from Christmas 2008 and do not want to think about the next one, but in retailing you have to.

The BIG Christmas show is held in Frankfurt in late January and early February. Christmasworld is the show to attend to get on top of the trends for the next festive season.

According to Garden International the trends for 2009 will be:

• Airy - Light and transparent decorations that give a fairytale fantasy, the colours will be pastels.
• Sweet - Sensuous and feminine flowers that have been candied. I saw this trend start in Italy at the end of 2008. Colours will be lime, violet, aqua and sand.
• Comfort - Modern meets nature with contrasts using muted colours such as slate grey, graphite and caramel in combination with brick red.
• Obsession - Feminine, elegant and tasteful using curved lines and high quality materials. Colours will be quartz pink, mauve, aubergine, violet and gold.

It seems the traditional green and gold look is not going to be the fashion colour for Christmas 2009.

Retail Outlook ... The Consumer and their change of habits

Over the next few months I am sure we will be inundated with the research that will help us get through the economic storm. The first of these reports that I have come across is an Australian Retail Outlook Jan 2009 produced by Inside Retailing.

One section on consumer changing shopping habits caught my eye. In uncertain times consumers drift towards the products and businesses they can trust. Professionals tend to be the first to lower their spending habits as they are more in tune with the global situation, whilst the last group to reduce spending tends to be generation Y.  They are the least aware of the global trends.

Loyalty schemes will become more important especially as loyalty will be more difficult to get from customers as they shop around getting great price deals. Products in the “Conspicuous Consumption” category will be difficult to sell and will be slower to lift in sales after the recession. Customers will demand more service not less as the market slows down.

If you would like to read the full report it is available from Octomedia Pty Ltd Aus www.octomedia.com.au

New supermarket experience.....

This was sent to me by a colleague in South Africa .. thanks Graham.

A new supermarket opened in Umhlanga. It has an automatic water mister to keep the produce fresh. Just before it goes on, you hear the sound of distant thunder and the smell of fresh rain.

When you pass the milk shelves hear cows mooing and you experience the scent of fresh mown hay.

In the meat department there is the aroma of charcoal grilled steaks with onions.

When you approach the egg case, you hear hens cluck and cackle, and the air is filled with the pleasing aroma of bacon and eggs frying.

The bread department features the tantalizing smell of fresh baked bread & cookies.

I don't buy toilet paper there any more!

Have a great year!

Award Winning Retail - What is the Magic Formula?

Zanthorrea  is my local retailer of native or indigenous plants. They are a very specialist family business operated by Jackie and Alec Hooper with their son Ross. The thing that is special about their business is that they have won five national awards in Australia in the last ten years for the best retailer in their field.

In my travels I come across businesses that win occasionally, but it is rare to come across such a winning business that is so consistent at being the best.

What drives this Business and what are the secrets?

Their secrets are revealed in the video we shot at their establishment on a 37 Centigrade day in January 2009.

The full video is available for members of the Community Network, we hope this taster provides you with some ideas and encourages you to find out more.

John Stanley is an internationally recognised conference speaker and retail consultant. He has authored several successful marketing and retail books including the best seller Just About Everything a Retail Manager Needs to Know. John’s retail experience covers hands-on retailing in supermarkets, hardware stores, garden centres, farmers markets and drug stores.  For more information on John Stanley and how he can help your business prosper and grow, visit his website www.johnstanley.cc

What is “Organic” and what is “Natural”?

Working with retailers and talking to consumers it has become clear to me that a lot of consumers are very confused with some of the words we are using in retailing and as a result they are coming to their own conclusions on meanings.

I was therefore intrigued to see that in the autumn/fall of 2008 the Garden Writers Association of the USA carried out a comprehensive piece of work to ask the consumers what their perception was when it came the words “organic” and “natural” and how they relate to them.

70% of Americans think “organic” products are more costly to buy. They believe that organic products have extra value, but would expect to pay more. A large proportion of these people believe that purchasing “organic” is environmentally and socially responsible. Only 50% of those surveyed believe that “organic” produce is healthier to eat which may surprise many readers.

When it comes to the confusion between “natural” and “organic” 52% of the population feel that “natural” should not be compared with “organic”. 26% of those surveyed believe that “natural” is not as good as “organic “and 18% believe that “natural” and “organic” means the same thing, 5% believe “natural” is better than “organic”. This highlights the confusion that exists with these words we use in retailing these products.

80% of those asked said they would like to buy “organic” if the price charged was more competitive than with non organic products. Only 18% of those surveyed would not change to “organic” and would prefer non organic products.

60% would use “organic” products if they could be convinced they were as good as there non organic counterpart, but 55% would convert if they could find “organic” products in the store. 53% would convert if they knew what to buy and how to use it.

44% of consumers want to find “organic” products in store, in the garden sector 36% are interested in growing organic food at home while 31% are interested in developing an organic lawn management programme and 29% want an organic flower garden.

This research highlights the opportunities, but also the confusion in the market place. I suspect similar results would be found in other countries.

Lemon Policy

All retailers will occasionally sell a lemon, the challenge is when you get a lemon or faulty product what do you do with it?

Kleenmaid actually have a “lemon policy”. If a product is returned three times due to a fault, any member of the team can replace the item on the third return. This is a great idea. You can imagine how the consumer would be feeling by this stage and if a team member can simply replace it at this point it would reduce the consumer stress.

Consider what you do when you get those lemons. What is your lemon policy?

Two articles that you should read before 2009 arrives...

A good mate of mine, Rob Ward hsad two excellent articles in his newsletter On-Ward, just before Christmas, I recommend you have a look at them. 

1 - Consumers are re-thinking their whole existence. Many have lost trust in well established brands that they previously bought. This is sending the food industry into a spiral of uncertainty. Click this link

2 - Local food sourcing is set to grow x10 over the next decade - is it really? Read this article that contains a recent report that explores how. Click this link

Dare to be Different...its Christmas

Our local bookshop is having it's best Christmas sales period for some time. What is the secret of success ..... bright shirts! Brian, the owner started the month of December wearing an outlandish shirt and each day they got louder and louder.

What has that got to do with book sales you may ask?

Well, his customers have started to try and out do him when it comes to wearing way out shirts.

As a result viral marketing has started in the community, people are talking about his shirts and as a result dropping into the store to see what shirt he is wearing.

I don't know about you, but once I am in a bookshop I start browse shopping an inevitably buy a book. Our family will be getting books this Christmas as a result of outlandish shirts. Dare to be Different and people will start talking about you.

Garden International....... At last an International magazine

The world has been in need of an International Garden centre magazine for some time and it is great to see that we finally have one.

In autumn 2008 InterMedium Publications from Holland launched a prototype magazine which many of you would have received from me and already subscribed too. The good news is that the prototype has resulted in 5500 subscriptions from 90 countries, the aim of developing an International magazine has been achieved.

The full magazine launch will be in January 2009 when the magazine will be officially launched. If you have not subscribed already and you are in the garden industry I would urge you to do so, as this magazine will provide you with a global perspective and bring ideas from around the world.

All you have to do is connect to www.gardeninternational.com

JOHN STANLEY ASSOCIATES LAUNCH COMMUNITY MEMBERSITE FOR RETAILERS

The challenge retailers have in today’s complex market is how do they keep up with ideas and communicate with each other over those ideas on the global platform. Until recently that opportunity did not exist, but in this fast moving world a solution has come to hand.

John Stanley Associate, have developed a Community Membersite where retailers and suppliers can communicate with each other and share ideas from around the world.

The website is also used as a forum for ideas and training sessions.

The site, which was launched in November, already has retail members on board from Australia, New Zealand, USA, Canada, South Africa, Holland and the UK and other members from around the world are in the process of joining.

John Stanley is a business coach of world renown and works with retailers of all sizes in all industries growing their businesses through coaching, mentoring  and teaching them how to grow sales, increase market penetration and add value for their customers in tough times, all at low cost to the retailer.  His services are highly sought after and clients say that “you cannot afford not to employ John Stanley” because he gets them excellent returns for the small investment in his services.

He has led two Tele training sessions to date. The first was on  “Building Christmas Sales”  and the second was “Creating Sales Promotions in January, the quiet month” .  These forty minute interactive training sessions have been well received and provided members with ideas to grow their business. The training sessions go out live ,but are also recorded for members who cannot connect at the time of the session.

John and his team say the aim of the Community Website is to provide a platform for the leading retailers to share ideas from around the world in quick time: the industry is getting tougher and the leaders need to obtain new ideas and put them into place quickly, plus have the opportunity to share thoughts with other leading retailers from around the world.

The Community Membersite is open to any retailer who is looking to be a leader in their market place.

The community has been in existence for two months and is password protected to ensure that not everyone has access to the information. Entry is by subscription and for the first three months it is a dollar a month to allow retailers to see  that the programme provides the value that the member needs, after the initial three months the subscription will be $45 a month.

This is a new venture for John Stanley Associates and the team are pleased with the reaction and response they have received to date, especially as members are joining from around the world.  That means ideas are being shared early on from a global perspective.

You can join the John Stanley Associates Community Membersite by contacting info@johnstanley.cc to register and obtain your password.

Gardening, drink bring long life: study

Ref: NGIA, December 10, 2008 - 3:10PM

A daily tipple and a potter in the garden are the keys to a long and healthy life, Australian research has revealed.

A major study which tracked 3,000 people for two decades has given the best picture yet of how to ward off dementia and death in old age.

And the two best protectors are painless, said study leader Professor Leon Simons of the University of NSW.

We found one alcoholic drink per day could cut the risk of dementia by 34 per cent," Prof Simons said.
"So, a drink a day can keep dementia away."

Pottering in the garden is even more protective, cutting the risk of dementia by 36 per cent, said fellow researcher Professor John McCallum of Victoria University in Melbourne.

"Daily gardening is a complex variable, and we can't really isolate the 'active ingredient'," Prof McCallum said.

"It's a combination of being physically active, eating the good fresh food that they grow, and having a sense of future and purpose."

Physical and mental activity and good breathing, or respiratory function, were also seen to delay or prevent major negative experiences in later life.

On the flipside, depression increased the risk of dementia by 50 per cent.

The danger signs for an earlier death were smoking, diabetes, very high blood pressure, impaired breathing, physical disability and, interestingly, zero intake of alcohol.

"The study confirmed the importance of cholesterol problems in senior citizens and has shown that we do need to worry about treating this in later life, as well as treating blood pressure which is important in reducing the risk of heart disease, and even more importantly, reducing the risk of stroke," Prof Simons said.

The Dubbo Study started in 1986 when, as Prof Simons said, "no one was interested in those over 60."
"There was only anecdotal musings on how to live longer, like unprovable claims that good sex can add four years to your life."

"We wanted to look at whether people were living longer and healthier and what were the factors that could make this happen."

Made to Stick

by Chip Heath and Dan Heath, Random House 2007, ISBN -13-978-1-4000-6428-1

People are looking for new ideas, but some work and some fall by the way side, but why?

Part of my Christmas reading was ”Made to Stick”, a book that as recommended to me recently. This turned out to be a great read over the Christmas period. I thoroughly enjoyed it and recommend it to anyone who is looking to find ways on how to get ideas across, whether it be to team members or customers.

The book explains a very simply process on how to put a strategy together to get an idea across, the book uses stories and is a joy to read.

The formulae recommended is easy to understand SUCCES,  Remembering the process relies on SUCCES:

S - Stands for Simplicity .. keep the message simple
U - for Unexpectedness ... you have to surprise the person you are trying to get the message across to
C - For Concreteness ... you have to have solid facts to get the other person to believe in your message
C - Credabilty ... you need to be a credible person in the mind of the receiver
E - Stands for emotions ... you need to hit the emotional needs and wants of the person you are talking to
S - Stories ... people remember stories and you need to create a story around your message.

This really is an easy book to read and it provides practical ideas to help you get new ideas across to intended parties. This book is written for the American market and as a result a lot of the stories are American based, but that does not detract from the message.

I would recommend this book to business owners and managers to help them get the message across.

If you want to get more of your message to stick, then this is the book that you must read.

It is published by Random Books ISBN -13-978-1-4000-6428-1

Colour and How to use It

Colour in retailing is so important and many of you have asked how do we use colour correctly in our retail environments.

We were recently talking to our brand designer and he mentioned that Voodoo Publications were some of the best books on the subject.

This is a link to their website. I hope it proves valuable.

http://www.colorvoodoo.com/cvoodoo5.html