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Think about the prominent characteristics of today's in-store shopping experience:
More "self-service" for the customers (that is, less staff on the floor.)
Reduced in-store merchandise selection; "Just check our website."
Limited in-store knowledgeable staff.
Presumption that the shopper will do product research on their own.
And of course, self check-out by the customer.
Hmm. Are these providing more "convenience" for shoppers? Improving their shopping experience? Or – just shifting the work to them?!
That's why we believe that in retailing today, the real "job growth" is the "job" of being the customer!
Then, in early August, we came across this commentary on social media about self checkout that zeroes in on that transfer of the work to the customer.
Yesterday I went shopping at a store that was exclusively self-checkout. And then, the lady checking receipts at the exit was stopping everyone.
I didn't choose to participate in that nonsense. I had already filled my trolly, emptied my trolly to scan the items, paid for my items, and refilled my trolly.
So I just skipped the exit line, kept walking and when she called out to me, raised the receipt above my head as I was leaving the store.
Why? Five reasons.
In other words, this is a customer who feels disrespected. Maybe even a bit of “guilty until proven innocent.”
Meanwhile, the store employee who’s manning the exit has to take the brunt of the resentment.
In today's economy, both retailers and shoppers are under heightened stress and uncertainty. As you introduce new procedures or new technology, be certain that they pass the fundamental test: respect for both the customer and your staff.
You have to give respect to get respect back.
"Retailing dead?" Hardly! “Retailing” is selling to the ultimate consumer. That is not going away, in spite of the current perception. What IS (appropriately!) endangered? Deadly retail real estate! Conventional, impersonal, and boring brick-n-mortar stores are deadly.
A few years ago we were on a PBS news show about retailing's ups and downs. Several months later, one of us ran into a teacher of one of our kids. That person excitedly mentioned having seen us on TV, saying "I didn't know you knew so much about retailing." (Yep, known just as someone's parent, right?) But then this very well-educated person said the key thing: "I never knew there was so much to be known about retailing!" Well, that incident happened a few years ago when retailing was perhaps more understandable, even more predictable. Alas, those days are history! Today, nothing in retailing is quite as understandable or as predictable as before. Or as manageable!
As we emerge from the pandemics, many retailers are eager to grow. (How's that for an understatement?!)
Trade shows are opening up with great success and eager buyers. Landlords are eager to fill vacancies, and in many instances, to cut deals. Vendors are eager to quit thinking about supply chain problems and start selling their merchandise, especially at trade shows. Plus, the continued growth and expansion of online wholesale marketplaces makes far more product available to retailers. Then there is the access to capital. Lots of money is floating around out there All in all, it creates an environment of exuberance. "Seize the opportunity" is the rallying cry. Indeed, for some retailers, FOMO – that Fear Of Missing Out – is pushing them to make some major decisions.
The constant challenge for retailers is to anticipate what their customers really want. And this year, there seem to be plenty of choices available.
It is all part of the on-going challenge of retail; the art and craft of being a merchant. Then there are the customers who are reacting to the constant drumbeat of news about supply chain issues, merchandise shortages, and looming price increases by starting their shopping early.
Adding to this stampede, some major chains were launching their Black Friday specials before Halloween!
Successfully "doing retail" has always been a challenging and fascinating and evolving exercise. As the old Chinese proverb states, “It’s easy to open a store. However, it’s tough to keep it open.” And today, seemingly more than ever, third party organizations, more than individual entrepreneurs, seem to be drawn to retailing. Consider:
These and others fit into our category of “retail-as-added-use.” "It looks easy. Why don't we open stores?" But, retailing is not their core competency; they are manufacturers or direct marketers, or wholesalers, or importers, or whatever.
Your results are likely to be consistent with these patterns.
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