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It's all here - links to hundreds of Web pages on every subject today's retailer should understand. Visitors to this site can access solid, timely information on technology, management strategies, staffing, record-keeping and much more. As an added bonus, a featured news article on the retail industry will be available every week. Making sales has never been so easy!
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The old adage, "Let the buyer beware," may ring true in some cases, but when it comes to pleasing the customer, the modern retail industry is pulling out the high-tech stops. From stocking shelves and delivering goods to marketing and advertising, tools such as the Internet, point of service systems, contactless credit cards and a broad range of retail management software are stepping up the business of selling. Still, rapid and constant staff turnover continue to plague retailers, but pundits say the same technology that facilitates the supply side likewise can go a long way to keeping employees on the job. And, with the glut of gadgets and systems currently available, the savvy retailer would do well to get a handle on what's out there. High-tech service providers are targeting the retail sector for good reason - cold, hard cash. The second-largest industry in the United States, the retail trade generates about $4.2 trillion in annual sales (food service sales included) and accounts for a whopping 12.4 percent of all business establishments nationwide. Vigorous as business is, the action no longer is confined to bricks-and-mortar operations. A 2005 study conducted by BizRate/Shopzilla reveals that 87 percent of shoppers now compare Internet retailers' products against catalog merchants and retail stores to find the best deals. And 71 percent of online shoppers say they consider online sales and discount offers to be superior to those they find offline through retail or catalog merchants. Although retail operations - from mega-chains such as J.C. Penney and Wal-Mart, to independent specialty stores - are employing online catalogs, sales and specials in growing numbers, hardware and software manufacturers are doing their best to help vendors to bring the ease and speed of the Web into their stores. Point of Sale Appeal Specific functions include printing coupons, obtaining customer information, calculating various discounts, scheduling work hours and serving as store-to-headquarters e-mail terminals. A basic configuration typically consists of a computer, monitor, cash drawer, receipt printer, and keyboard or scanner. Keep in mind, though, while a POS system may sound like a dream come true, it's not for everyone. Industry insiders point out that a retail operation's annual revenues should hit somewhere around $700,000 to $900,000 to make the investment worthwhile; otherwise, a standard cash register probably will suffice. Business owners who decide POS is the way to go should gather sufficient information early on to avoid major meltdowns later. Experts suggest the following guidelines:
The Wave of Retail Future In layman's terms, RFID, which dates back to World War II, uses electronic tags to store data. Much like their bar code cousins, RFID tags identify items, but because they operate on radio waves, do not demand close proximity to scanners. The flexibility of RFID technology is enabling retailers worldwide to increase customer satisfaction, boost sales and improve store productivity. In fact, a large number of the world's major retailers now require RFID tagging. Here are just a few potential benefits:
Sales & Marketing [top] Retail operations may generate billions of annual dollars in sales, but data indicates that sales and marketing expenses are taking a huge bite of the profits. ZenithOptimedia, a leading global media service agency, reports that American retailers spent more than $17 billion in advertising last year, with placements in both print and electronic media. All the same, Internet technology is rapidly transforming the industry's advertising and marketing strategies. Even shoppers that like to touch, smell and try on potential purchases are checking out the Web before they head for the nearest malls. The National Retail Federation has found that 70 percent of American adults currently consult the Internet before hitting neighborhood venues for products and services - a 10 percent increase over October 2003 numbers. RetailWire, an online industry news analysis and discussion forum, reports that 68 percent of all shoppers now move back and forth between Internet shopping sites, physical stores and catalogs. What's more, customers expect the level of service and delivery from all parts of the operation - virtual or actual. To this end, upscale vendors such as Neiman Marcus, Saks Fifth Avenue, Chico's and William Sonoma routinely offer higher-end merchandise on their Web pages, as well as in their stores. With the Internet clearly a catalyst for change, retailers with smaller, independent operations are scrambling to stay competitive without breaking their advertising budgets. A recent study, underwritten by the National Retail Federation Foundation and several partnering organizations, offers recommendations from various industry insiders, along with case studies of successful independents across the nation. Those interviewed suggest that smaller retail businesses CAN employ stratagems larger corporations already use effectively. A Marketing Primer
Customer Service [top] State-of-the-art technology and a strong marketing plan clearly brings new shoppers flocking to the door, but the question remains How can the small to medium-size retail operation keep them happy? Research released by Jupiter Media Metrix predicts that a growing number of U.S. businesses will spend at least $500,000 on customer relationship management tools over the next two years, more than they'll commit to any other major infrastructure initiatives. According to many experts, this is the right move. An investment in technology - along with a healthy measure of old-fashioned service - is the ideal mix to build a loyal customer base. Cyber-Strategies
Tried, True and Traditional
Staffing & Employment [top] Industry analysts maintain that today's retail sector offers greater career opportunities to more American workers than at any time in history - and the stats bear this out. The U.S. Department of Labor reports that in 2005, employment in the field averaged 15,254,900 (11.6 percent of the nation's workforce) with 2.1 million new jobs to be added by 2012, representing a 14 percent increase over a 10-year period. Indeed, part-time and temporary work is plentiful across the industry, with the potential to develop into professional, management and corporate positions - especially when employees have college degrees. Salaries are slowing improving, too. As early as the late 1990s, the average hourly wage of a non-supervisor retail employee was better was $9.08, a figure that was competitive or equal to other sectors' entry-level jobs. On the flip side, retailers continue to struggle with worker attraction and retention, despite a greater diversity in job options. The latest figures issued by the Bureau of Labor Statistics indicate a 31.2 percent turnover rate across retail genres - greater than any single business sector in the United States. The overall average for all industries nationwide, in fact, is 20.2 percent. From an industry perspective, the challenge of attracting and keeping good people, especially for smaller retail operations, appears to stem largely from shifting demographics. That is, today's relatively small young-adult population must serve and sell to a huge Baby Boomer generation, in addition to the swelling Gen Y ranks. As such, the competition to draw in and retain the best and brightest is formidable. Although even owners of smaller operations now use employee management software - a component of most point-of-sale programs - to track payroll, scheduling and other personnel functions, the fact remains that they need reliable human help across departments. Industry pros say a hands-on approach combined with high-tech know-how can make staffing a whole lot easier. Hire Smart
Train to Retain Additional research indicates that rewarding employees through positive feedback, formal recognition for outstanding work and various bonus programs likewise contribute to strong retention rates. Though all these criteria and practices can make for a more stable staff, in the retail sector, the U.S. Department of Labor has named career development - specifically training opportunities - as a top motivator. To this end, the DOL recently partnered with the National Retail Federation Foundation to assess employee training needs, and to tackle the challenges. With a government investment totaling nearly $5.1 million, the NRRF has since earmarked nearly $3 million to expand the number and scope of its Retail Skills Centers, located in shopping centers nationwide. The goal is to provide mall tenants and employees, neighboring employers, and job seekers with retail and customer service training. Training options range from language and employability skills classes to customized seminars. This brand of education may be both targeted and practical, but a majority of independent retailers operate stores outside of malls and large shopping centers. Fortunately, they have access to help, as well. The U.S. Small Business Administration operates small business development centers in many states, offering a variety of assistance programs, including employee training for businesses that have difficulty obtaining affordable training. SBTC programs likewise assist existing businesses in taking advantage of state and local incentives for job creation, employee training and other expansion efforts. For more information about SBA state chapters and services, call 1-800-827-5722 or visit online at www.sba.gov. Billing & Accounts Receivable [top] In today's retail business, the swoosh of a card swiped through a scanner pretty much drowns out the clink of cold cash hitting the till. A report from CreditCards.com, an online site where consumers can research and apply for their very own plastic, reveals that general purpose credit cards represented 23.6 percent of overall consumer spending volume in 2005. Conversely, cash accounted for only 13.7 percent in the same time period. On the accounts receivable side, this state of affairs has boosted revenues, pundits say, because a typical credit card purchase runs 12 to 18 percent higher than a money transaction. On the other hand, time-lags between buying, billing and payment, as well as added fees and operational expenses, can choke a healthy cash flow - a problem particularly bothersome to small- and midsize- store owners. Credit cards aren't going away, but a number of technical and practical strategies can help entrepreneurs receive timely payment for goods and services. And though many consumers still write checks to pay monthly retail invoices, industry analysts suggest a number of programs that can convert them more quickly into cash. Avoiding Credit Casualties From basic good sense to high-tech gadgetry, current revenue management tips and tools apply to retail operations of every size and type even small, independent retail operations. Here are a few basics:
A Word On Checks And Balances
Vendor Relations & Purchasing [top] The landscape of the retail industry changes from one month to the next. As new product trends surface, others fade into the shadows of the clearance rack. For this reason, business owners must keep their shelves stocked with highly-desired, up-to-date merchandise. The stores with the most fluid inventory circulation tend to keep the checkout line elbow to elbow. Before cashing out customers, however, retailers must deal with the lifeblood of the industry: Vendors. Vendor Relations: The Value of Friendship
Purchasing: The Buying Game
Retail Trade Insurance [top] At the end of the day, you take the money, lock up the cash register, bolt the door and set the alarm. But what else are you doing to protect your business? Today, a number of insurance coverage options are available to help protect you in any circumstances. You've Done Everything Else You insure the health of your family. You insure your automobiles and home. You make sure these policies cover every foreseeable circumstance. Do you do the same for your business and employees? Business-owner policies cover your properties and inventory. Liability coverage assists you in the event of an accident caused by a product or service you sell. In addition, liability protects you against an accident occurring on your property. Workers compensation insurance protects your employees if they would become injured or ill as a result of the functions of their job. Business-owner policies: (BOP) are available under many names, and combine elements of property insurance, a homeowner's policy, and liability insurance, with additional, optional, riders. The BOP, at its most basic, covers your real estate (owned or leased often the landlord's policy doesn't provide for your inventory and equipment) and other business properties office equipment, inventory and many allow automatic seasonal variances in the insured value as an additional way to protect you when your inventory levels rise and fall with your selling seasons. The additional riders include coverage for burglary and robbery, spoilage and more. Liability Insurance: This covers you if a person was injured on your property, or as a result of a product or service you sell. Legal costs and damage settlements are covered by liability insurance. The most common liability case is the slip and fall, and there are steps you can take to minimize risks in this and other liability prone areas, a discussion with your insurance agent can help you find and fix these situations. Workers' Compensation Insurance: This coverage takes care of medical bills, settlement monies, and a portion of lost wages for employees injured while performing a function of their job. Laws vary by state regarding requirements for coverage, so check state and local regulations. Often, certain types of employees (independent contractors, for example) are exempt, and certain numbers of employees may mean different levels of coverage. Riders: Other types of insurance, called riders, are available for purchase. They include:
One of the most important insurances:
Many riders overlap one another, such as burglary and robbery and employee dishonesty, but it is a good idea to be fully covered and protected from any unforeseen circumstance. What's a Retailer to Do? Your particular corner of the retail world has insurance needs that can be met by building a relationship with an insurance agent and working closely with them. The better they know and understand your business, the better they'll know which types of coverage will best protect your business. In many cases, a BOP combing property, liability, and vehicle coverage works best. Costs for these different insurance coverages vary from company to company and by the terms of the particular coverage. No matter the cost, your business must be protected, but, according to Insurance Information Institute, there are a few things you can do to reduce your premiums:
The main thing to remember is to protect yourself and your business. A little shopping around and some careful examination of your niche in the retail world will help you find the best plan for your business. Retail Trade Communication [top] In the daily rush of the retail world, how do you keep track of stock, timesheets, employees and schedules and still serve the customer? A cell phone, Smartphone, or Portable Digital Assistant (PDA) may be just the thing your business needs. Each of these devices now come with an array of service options designed to help retailers keep the register brimming with cash. Check Out Cellular Telephones Just as cells are the building blocks of life, the cellular telephone is the building block of modern business communications. According to the Cellular Telecommunications and Internet Association (CTIA), there are over 250 million wireless subscribers in the United States today. That means 81 percent of the U.S. population has access to a wireless device. That means most of us - 75percent according to ctia.org - will use a wireless device in our business. As a result, the retail industry is reshaping its management and marketing approach to best benefit from today's mobile movement. A cell phone's primary use is to send and receive calls from anywhere at anytime, but even the most basic models on the market today allow for Short Message Services, or "text messages." Text messages (users send short messages composed on the cell's alphanumeric keypad) and Push-To-Talk features (users immediately speak with other cell phone users by simply pushing a button rather than dialing a number) have become popular and easy ways to communicate in the retail workplace. In the past when an employee needed information on a product, they likely would hunt down the manager or use a stationed store phone to dial the related department. Today, however, sales people can text message or use the Push-To-Talk feature to quickly get a hold of the data they need. This allows them to answer consumer questions much faster, find prices on products without manually searching, etc. In fact, a number of today's mid-sized to larger retailers issue work phones to staff members the first day they hit the sale's floor. By doing so, management has a direct line to manpower at all times. This comes in handy should the boss need to change someone's schedule on the fly, request extra help, want an employee to run an errand while on break, etc. Still, retailers are not turning to cell phones to only make operations more efficient. Many have incorporated mobiles into their advertising campaigns as well. Mobile Marketing allows the retailer to get in front of the consumer anytime, anywhere. Through text message campaigns, stores send saving's alerts, product updates and sales announcements directly to the consumer's cell. Mobile phone service providers offer Web-based interface packages that allow retailers to spearhead entire campaigns in minutes. Certain package features include scheduled messaging, data tracking and answer tracking. Text message marketing possibilities include interactive contests, voting, e-coupons, sweepstakes and more. Handheld Mobile Point-Of-Sale Technology: A Real Bargain The ability to get the consumer in and out in a timely fashion speaks volumes about an operation's efficiency. Mobile Point-Of-Sale gadgets - while not necessarily considered communication devices definitely can play a role in reducing time spent chatting on the store's intercom system. Mobile POS systems let employees conduct general retail tasks like shelf price auditing, inventory tracking, checkout, real-time advertising and product information collection. With all of these capabilities at the user's fingertips, workers spend less time hunting for answers and consumers spend less time waiting for a response. Retailers Sold On Smartphone and PDA Technology First things first Maxwell Smart did not use a Smartphone. That shoe-phone was at best an early cell. Smartphones and PDAs combine the cell phone's abilities with expanded access to the Internet and email, as well as the opportunity to use programs more commonly found on a personal computer or laptop. In the fluid retail industry, quick and easy access to inventory sheets, bank statements, product reviews, consumer databases and other vitals can make all the difference in the world. Capabilities The biggest benefits Smartphones provide to the retailer are expanded access to the World-Wide Web as well as compatibility with a suite of office programs. Smartphones also offer a built-in Qwerty keypad that is larger and easier to use than the cell phone alphanumeric keypad. This makes tasks such as ordering inventory and tracking route information much smoother - and from any location with WiFi to boot. Most PDAs boast the same features as Smartphones, but with a larger selection of programs and accessories: Bar Code scanners, signature capturing software and the ability to easily expand the memory, to name a few. Streamlining the time you devote to your business is the idea behind using any new technology. With the versatility offered by cell phones, Smartphones and PDAs, comparing functionality verse needs is the best way to profit. Smartphone Breakdown Everything the cell phone does in addition to:
PDA Breakdown Everything the Smartphone does in addition to:
Of course, all of these devices allow for wireless headsets and earpieces, making them more versatile for our busy world Know What You Need Analyze your needs and wants and find the perfect balance in one of these devices. Do you often need to do price checks from the floor, take calls in your car and update delivery schedules while away from the desk? A PDA works well for you. Just need to call and check in with employees and vendors? A cell phone is the answer. Need to order merchandise from the road, as well as text and work on spreadsheets? A Smartphone meets these demands perfectly. The price of the device is not the only cost to consider when purchasing one of these tools. The monthly wireless plan also factors in. With cell phones, the plans tend to include a set number of minutes, as well as a certain number of text and/or picture messages allowed. GPS service usually requires additional up-front charges and often a monthly access fee. The same holds true with Smartphones and PDAs, but they have additional data plans that allow you to send and receive information such as email and Internet searches. Retail Insurance [top] By Jason Frye At the end of the day, you take the money, lock up the cash register, bolt the door and set the alarm. But what else are you doing to protect your business? Today, a number of insurance coverage options are available to help protect you in any circumstances. You've Done Everything Else You insure the health of your family. You insure your automobiles and home. You make sure these policies cover every foreseeable circumstance. Do you do the same for your business and employees? Business-owner policies cover your properties and inventory. Liability coverage assists you in the event of an accident caused by a product or service you sell. In addition, liability protects you against an accident occurring on your property. Workers compensation insurance protects your employees if they would become injured or ill as a result of the functions of their job. Business-owner policies: (BOP) are available under many names, and combine elements of property insurance, a homeowner's policy, and liability insurance, with additional, optional, riders. The BOP, at its most basic, covers your real estate (owned or leased often the landlord's policy doesn't provide for your inventory and equipment) and other business properties office equipment, inventory and many allow automatic seasonal variances in the insured value as an additional way to protect you when your inventory levels rise and fall with your selling seasons. The additional riders include coverage for burglary and robbery, spoilage and more. Liability Insurance: This covers you if a person was injured on your property, or as a result of a product or service you sell. Legal costs and damage settlements are covered by liability insurance. The most common liability case is the slip and fall, and there are steps you can take to minimize risks in this and other liability prone areas, a discussion with your insurance agent can help you find and fix these situations. Workers' Compensation Insurance: This coverage takes care of medical bills, settlement monies, and a portion of lost wages for employees injured while performing a function of their job. Laws vary by state regarding requirements for coverage, so check state and local regulations. Often, certain types of employees (independent contractors, for example) are exempt, and certain numbers of employees may mean different levels of coverage. Riders: Other types of insurance, called riders, are available for purchase. They include:
One of the most important insurances:
Many riders overlap one another, such as burglary and robbery and employee dishonesty, but it is a good idea to be fully covered and protected from any unforeseen circumstance. What's a Retailer to Do? Your particular corner of the retail world has insurance needs that can be met by building a relationship with an insurance agent and working closely with them. The better they know and understand your business, the better they'll know which types of coverage will best protect your business. In many cases, a BOP combing property, liability, and vehicle coverage works best. Costs for these different insurance coverages vary from company to company and by the terms of the particular coverage. No matter the cost, your business must be protected, but, according to Insurance Information Institute, there are a few things you can do to reduce your premiums:
The main thing to remember is to protect yourself and your business. A little shopping around and some careful examination of your niche in the retail world will help you find the best plan for your business. Retail Communication [top] By Jason Frye In the daily rush of the retail world, how do you keep track of stock, timesheets, employees and schedules and still serve the customer? A cell phone, Smartphone, or Portable Digital Assistant (PDA) may be just the thing your business needs. Each of these devices now come with an array of service options designed to help retailers keep the register brimming with cash. Check Out Cellular Telephones Just as cells are the building blocks of life, the cellular telephone is the building block of modern business communications. According to the Cellular Telecommunications and Internet Association (CTIA), there are over 250 million wireless subscribers in the United States today. That means 81 percent of the U.S. population has access to a wireless device. That means most of us - 75percent according to ctia.org - will use a wireless device in our business. As a result, the retail industry is reshaping its management and marketing approach to best benefit from today's mobile movement. A cell phone's primary use is to send and receive calls from anywhere at anytime, but even the most basic models on the market today allow for Short Message Services, or "text messages." Text messages (users send short messages composed on the cell's alphanumeric keypad) and Push-To-Talk features (users immediately speak with other cell phone users by simply pushing a button rather than dialing a number) have become popular and easy ways to communicate in the retail workplace. In the past when an employee needed information on a product, they likely would hunt down the manager or use a stationed store phone to dial the related department. Today, however, sales people can text message or use the Push-To-Talk feature to quickly get a hold of the data they need. This allows them to answer consumer questions much faster, find prices on products without manually searching, etc. In fact, a number of today's mid-sized to larger retailers issue work phones to staff members the first day they hit the sale's floor. By doing so, management has a direct line to manpower at all times. This comes in handy should the boss need to change someone's schedule on the fly, request extra help, want an employee to run an errand while on break, etc. Still, retailers are not turning to cell phones to only make operations more efficient. Many have incorporated mobiles into their advertising campaigns as well. Mobile Marketing allows the retailer to get in front of the consumer anytime, anywhere. Through text message campaigns, stores send saving's alerts, product updates and sales announcements directly to the consumer's cell. Mobile phone service providers offer Web-based interface packages that allow retailers to spearhead entire campaigns in minutes. Certain package features include scheduled messaging, data tracking and answer tracking. Text message marketing possibilities include interactive contests, voting, e-coupons, sweepstakes and more. Handheld Mobile Point-Of-Sale Technology: A Real Bargain The ability to get the consumer in and out in a timely fashion speaks volumes about an operation's efficiency. Mobile Point-Of-Sale gadgets - while not necessarily considered communication devices definitely can play a role in reducing time spent chatting on the store's intercom system. Mobile POS systems let employees conduct general retail tasks like shelf price auditing, inventory tracking, checkout, real-time advertising and product information collection. With all of these capabilities at the user's fingertips, workers spend less time hunting for answers and consumers spend less time waiting for a response. Retailers Sold On Smartphone and PDA Technology First things first Maxwell Smart did not use a Smartphone. That shoe-phone was at best an early cell. Smartphones and PDAs combine the cell phone's abilities with expanded access to the Internet and email, as well as the opportunity to use programs more commonly found on a personal computer or laptop. In the fluid retail industry, quick and easy access to inventory sheets, bank statements, product reviews, consumer databases and other vitals can make all the difference in the world. Capabilities The biggest benefits Smartphones provide to the retailer are expanded access to the World-Wide Web as well as compatibility with a suite of office programs. Smartphones also offer a built-in Qwerty keypad that is larger and easier to use than the cell phone alphanumeric keypad. This makes tasks such as ordering inventory and tracking route information much smoother - and from any location with WiFi to boot. Most PDAs boast the same features as Smartphones, but with a larger selection of programs and accessories: Bar Code scanners, signature capturing software and the ability to easily expand the memory, to name a few. Streamlining the time you devote to your business is the idea behind using any new technology. With the versatility offered by cell phones, Smartphones and PDAs, comparing functionality verse needs is the best way to profit. Smartphone Breakdown Everything the cell phone does in addition to:
PDA Breakdown Everything the Smartphone does in addition to:
Of course, all of these devices allow for wireless headsets and earpieces, making them more versatile for our busy world Know What You Need Analyze your needs and wants and find the perfect balance in one of these devices. Do you often need to do price checks from the floor, take calls in your car and update delivery schedules while away from the desk? A PDA works well for you. Just need to call and check in with employees and vendors? A cell phone is the answer. Need to order merchandise from the road, as well as text and work on spreadsheets? A Smartphone meets these demands perfectly. The price of the device is not the only cost to consider when purchasing one of these tools. The monthly wireless plan also factors in. With cell phones, the plans tend to include a set number of minutes, as well as a certain number of text and/or picture messages allowed. GPS service usually requires additional up-front charges and often a monthly access fee. The same holds true with Smartphones and PDAs, but they have additional data plans that allow you to send and receive information such as email and Internet searches. |
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