Display & Design Ideas - February 2009 - (Page 22)

22 Weathering the Storm Economizing the store In a recessionary environment, how are retailers maximizing resources and doing more with less? By Jessie Bove, Managing Editor This article is the first installment of a two-part series titled "Weathering the Storm." This first article focuses on how retailers can economize the store during a downturn, while the second installment—coming in March—will zero in on the opportunity for innovation during an economic recession. for simplification. “Look at every process and simplify where possible,” she says. “If there isn’t a process in place, now is the time to put one in place and document it. Simplify any project rolling out to stores to minimize labor at the store level.” Ron Wince, CEO of Guidon Performance Solutions, offers up minimization tips, such as improving check-out processes to lessen customer hassle. “Make it easy to say ‘yes’ to shopping,” he adds. “Begin with the customer in mind. Eliminate non-value-added activity that store employees have historically been responsible for or minimize their work content so they may focus on serving the customer.” nication. “Keep open and honest dialog with staff and associates to quell the rumors,” he says. Along with efficiency and resource consolidation, retailers also need to focus on the best locations—as well as proper design and merchandising—to capture consumers’ attention and respond to their needs, explains Navid Maqami, principal, architecture, for Atlanta-based GreenbergFarrow. “This is also a good time to cut costs that do not have an impact on operations, such as energy usage,” he adds. Most importantly, prioritization and decisions must be made swiftly. Responding quickly and efficiently to make needed adjustments to plans and business expectation is crucial. “Make the tough decisions now—don’t wait until it’s too late to recover,” VanAuken stresses. W e have all read the headlines of doom and gloom, store closures, layoffs and bankruptcies. We have all heard the experts’ negative predictions and forecasts of turmoil—and that dirty “R”-word (recession) one too many times. And we all know that the current economic climate, to put it simply, sucks. But enough is enough. Let’s temper the complaining and ease the worrying, and let’s actually do something about it. In tough and uncertain economic times, we can either choose to sit back and nervously watch from afar, or we can take control and seize the opportunity for change. Now is the time. Prioritize and simplify The main challenge in weathering today’s economic storm has become: how can retailers do more with less? With less resources and fewer personnel, retailers are tasked with creating the same end product with less money, and the first step to solving the riddle is prioritization. “Only work that is critical to the business or project that will produce return on investment is considered,” says Jane VanAuken, vice president of store planning and design for Shopko Stores Inc. “The nice-tohave projects are being set aside. Prioritize workload and do only things that create value.” Janis Healy, associate vice president, visual merchandising of Orchard Supply Hardware, echoes the same sentiment: “Look closely at your expenditures and focus on the need-to-have versus the like-to-have—what will the customer notice versus what are you doing to satisfy your own creative ego?” Healy also emphasizes the need February 2009 Make the tough decisions now—don’t wait until it’s too late to recover. —Jane VanAuken, Shopko Stores Inc. Focus on the brand message In a downturn period like this one, retailers would be wise to focus on basics, rather than excess. At the core of this idea, the most basic element should be a renewed focus on the brand. Retailers must not forget who they are and what they stand for, and must continue to communicate this message to their customers. VanAuken details that value and brand presence are the key marketing and in-store messages that Shopko has concentrated on to speak to today’s consumers. “Stay the course and maintain your brand identity,” she says. Retailers faring well in the current economy, such as Urban Outfitters Inc., understand what makes their brand unique and are able to reinforce the value of the brand, Wince adds. As Healy reiterates: “Be true to your brand in all that you do—let the customer know that you know who you are and what they should expect from you, and don’t waver. Build relationships with them to gain loyalty.” In this difficult economy, the brand message that a retailer sends out should be timely and relevant, both www.ddimagazine.com Wince also advises against blanket headcount reduction efforts. “Make sure you filter cost-cutting efforts from the perspective of the customer,” he says. “This can be done very quickly to allow rapid response to the current market conditions.” At Collective Brands Inc., the company has responded to the downturn by reviewing every department and realigning many areas to make sure they are able to respond quickly to every turn of events, says Mark V. Looper, director of store planning and design for the company. “Challenge expenses and every aspect of capital costs spent in stores; make sure that what you are proposing is cost-effective and also supports enhancing the customer experience in-store,” he advises. Looper also suggests that there is no such thing as overcommu- http://www.ddimagazine.com

Table of Contents for the Digital Edition of Display & Design Ideas - February 2009

Display & Design Ideas - February 2009
From the Editor
Contents
News Watch
Book Report
Editor's Choice
Cover Story: Channel Focus: Toy Retail
Zu + Elements
Zonik
Weathering the Storm: Part 1
Right Light
Product Spotlight
GlobalShop Preview
GlobalShop Products
Calendar
Advertisers
Classifieds
Think Tank

Display & Design Ideas - February 2009