Feb 24, 2012

My Top Ten changes for retailers in 2012

Over the last few weeks, I have read various articles and blogs on the changes we can expect over the next 12 months. Very few of those reports have been positive in their predictions. As retailers, wherever we live, we are told we will have a gloomy year ahead.

So, here I go with my Top Ten changes and opportunities I see occurring in the next 12 months:

1. Avoid the big-ticket items. Consumers will be more frugal this year. Researchers in the U.K. predict that the Brits will spend 1 billion pounds less this year than last. The same will be true for other countries. This reduction in spending will not affect all retailers. In fact, sharp retailers in the food and garden sector could see an increase in sales as families stay at home and cooking and gardening become more of a pastime. But, it will be the small-ticket items that will prosper. The big-ticket items are the ones you will find it difficult to sell. Furniture, carpet and similar retailers will find it more difficult to survive, while food and garden retailers weather the storm.

2. Weekday convenience and weekend experience. These will be the major drivers in retailing in 2012. The consumer will expect you to provide convenience during the week, which might mean you will need to offer different services during the week. During the weekend, they want your store to wow them, so more theatrical events will need to be organized during weekends to catch the consumers’ attention.

3. Social media de-cluttering as a marketing tool. Many social media gurus are predicting that we will start analyzing which social media channels are really working for our businesses. We will discard some and focus on others. I could not agree more. Social media will be a major marketing tool. Those retailers who do not join in the social media marketing surge will quickly get left behind, but it will be a less cluttered social media world.

4. Video and pictures will grow as marketing tools. A picture is worth a thousand words, so the saying goes. I could not agree more. We will be putting more videos and more pictures online to sell our story to our customers. This may be an important area for us all to learn new skills.

5. Fewer staff, but better staff. Many retailers have forgotten how important their people are and have forgotten to train them in how to be the best hosts in town. In this area of common sense, many businesses are failing badly. Customer interaction will be a real key to success.

6. Networking with other retailers. Independent businesses cannot survive, in my view, on their own. The future means networking, either in a group within the industry sector, or with retailers within your community – or in both areas. To be a truly independent retailer and not engage with other retailers could be a major mistake.

7 Your local community will be the key. Customers will engage with retailers they think support their community. This is why farmers’ markets have been so successful in recent years. Consumers want to know your values, and want you to be consistent in getting that message across.

8. Price flexibility. All the research shows that price is a driver, and nothing will change in 2012. Many retailers have been too inflexible in their pricing, and I predict we will see a lot more price flexibility in 2012. This does not mean discounting. There may be special offers, but at the same time, other products might increase in price.

9. Seasonality will reappear. We are in a seasonal industry, and we need to re-embrace the seasons and use them as a marketing opportunity.

10. Fewer but better. There will be fewer retailers doing what we do. But the retailers who are left will be stronger as a result of the clean out that is taking place.

By John Stanley