Rx for a Healthier Business
Rx for a Healthier Business: How Retail Winners Win!
We all feel anxious about the negative effect that the recession is having on the retail industry. However, based on year-end information from the majority of my clients, the hospital gift shop industry seems to be holding its own.
Some hospital gift shop managers tell me that they not only survived 2008, but they also exceeded sales and profits goals. I'm encouraged by their success, because it's proof that a healthy retail business can do well in a bad environment.
What can we learn from the hospital gift shop winners?
These winners worked very hard, meticulously managing all aspects of their business, to succeed in 2008. They understand that in 2009 they need to be better than ever before. Given the current challenging business environment, they plan to approach 2009 with cautious optimism.
Besides being creative and smart, these successful gift shop winners have a different way of thinking. They've replaced the "that's what we've always done" attitude with "what can we do next " action.
They recognize their good fortune to be operating in a medical center rather than a shopping mall. They know the effect of mainstream retailers going out of business will result in more business opportunities. By exceeding their customer's expectations in merchandise selection and customer service, they have positioned themselves to gain market share.
The winners know that even though unemployment is at an unprecedented high, the majority of the customers that walk through their doors are hospital workers who are still employed.
These winners aren't going to use the economy as an excuse to return lackluster profits to their institutions. They've learned from past mistakes and misfortunes to embrace the changes necessary to survive and thrive in the new economy. Their 2009 mantra is "we can make excuses, or we can make money."
Three key strategies for retail winners:
- Manage expenses.
- Make the store look exciting.
- Love the customers.
There is no doubt that the next few years will be challenging. Everywhere you turn, you hear about the new economic reality, times are tough, and business is bad.
The danger we face while taking in all of this bad news is that we may actually begin to focus on nothing but the bad news. We may start to believe it completely. When we believe too completely, there is a much higher chance of it being so.
It's important to recognize that there is plenty of anxiety, so make sure your staff remains positive and delivers outstanding service to customers.
The retail winners are winning because they have gone back to the retail basics: prudent fiscal control, expert merchandising, and superb customer service. They've remained positive, embraced the challenge, and have the confidence to make things better.
Linda Williams
Senior Retail Consultant
Advantage Program
607-725-7386
www.advantageprogram.com