A discussion about retailing, retailers, and merchandising

The Kapalua Resort in Kapalua, Maui, Hawaii recently distributed a press release regarding its Honolua Store. The press release announced the recent renovation of the Honolua Store Deli, which reopened to the public on Dec 23, 2007. Various improvements, including a new chef Romeo Arruiza, have been instituted in the new deli, increasing its value to customers.

What struck me most about this news release was the value of this retail establishment to the local community. “The Honolua Store has long been a favorite gathering place for Maui visitors and residents looking for a hot meal, friendly service and a casual place to sit and talk story. Built in 1929, it originally served as the company store for the bustling pineapple plantation which encompassed the area known today as Kapalua Resort. Today, visitors enjoy a sense of its history while sampling a plate lunch on the store’s casual lanai.”

I love finding retail stores like this one—a store that has a history and a warm place in the heart of its local customers. So many chain stores in this country are generic and hold little emotional value to its customers. Such stores often build their value around low cost, product selection, a hot fad, or something else that can be too easily duplicated. Often, these stores are here today gone tomorrow.

According to Geoff Colvin it might be...

If you're trying to answer the question by looking at the traffic in the store I'm working in, the answer is a most resounding YES!

Geoff says;

"One of the most reliable ways to look like a business dope over the past several years has been to announce that the consumer spending party is finally over. Every year, usually in the fourth quarter, assorted boffins prove beyond doubt that U.S. consumers cannot possibly keep spending as they have been. Consumers then ignore those reports and keep right on spending anyway."

I've seen it many, many times. It always passes and we move on. This time may very well be different because it has carried over since the last Christmas season.

Despite the phony PR the marketing manager of one particular shopping mall put out there last year, the numbers were in and they fell short. The traffic, relative to all the Christmas's that I've seen, was extremely poor. So, there's a very real change that has been taking place for quite some time.

Consider; 

I just felt like saying "In Your Face George." You can take that from there...

I haven't done any research into Blog Action Day but I'm all for shouting out in one very loud voice for anything I believe in and this is one;

The Environment

In a small way perhaps I can let you know about something I think is a feather in Wal-Mart's cap, if indeed they follow through to a successful completion. 

I'd like to offer many thoughts on this topic which, as most human beings are well aware, raises the cost of goods purchased for all.

One of my personal pet peeves is mis-marked merchandise. There's really no reason for it. It also provides a sharp shoplifter with a built-in method for extraction from a difficult situation.

You know there are people "out there" who will "case" a store, right? C'mon, you know...

Once they're through with your store they'll be within their rights when they point out that your goods weren't priced correctly and there'll be no prosecution.

Of course, even more dramatic, and much more destructive situations can result from mis-marked merchandise.

Here's an example; 

Very energetically, Kohl's announced recently that they have plans to increase their presence nationally to a total of 1400 stores.

"For the past two years, we have exceeded our financial objectives and believe we are well positioned to deliver on our long-term strategic growth plan," said Larry Montgomery, Kohl's Chairman and Chief Executive Officer.  “We remain focused on merchandising, inventory management, marketing and the in-store shopping experience as well as our expansion plan.”

I hope they've done something to overcome this; 

I'd no doubt have been terminated hundreds of times if I'd told a customer what I was thinking at the moment they needed to hear it...

I'm willing to imagine many of you have an identical experience.

This is just one small, simple example;

Feel free to offer your personal "I wanted to tell this customer" in the comments. After all, this is Merchant Voice!

One of the most important challenges for a retailer is inventory management. If I find my stockrooms (if I have any) overflowing I'm probably spending more money than I need to be spending.

If my stockrooms are looking empty I'm no doubt losing sales. This one ought to be very obvious - simply look at my shelves or tables or displays on the selling floor.

How many of you are dummying up your displays? Facing them out? How long have you been doing that?

Who is the most important person in inventory control?

 No... not him;

That videogame manufacturers would get a handle on how to meet consumer demand for game consoles.

"Nearly a year after its popular videogame console debuted, Nintendo is still plagued by supply problems; warns of shortages until early next year."

It really begins to go over the top of credibility.

'Reggie Fils-Aime, president of Nintendo of America, told Fortune that the company won't catch up with demand until "early next year."' 

Perhaps Reggie wasn't around (I don't know) in 1977...

[By 1979, the Atari 2600 was the best-selling Christmas present (and console), mainly because of its exclusive content, and a million were sold that year.] 

Its coming... sorry to sound negative but you all know the reality of this deal if you've been around for any length of time. Our key is to be prepared emotionally and mentally for the ramifications of this;

Holiday retail: More chill than cheer

CNNMoney.com survey finds that lackluster merchandise, wary consumers could drag down critical year-end shopping season. 

'"This holiday season is going to be terrible," said Howard Davidowitz, chairman of retail consulting and investment banking firm Davidowitz & Associates. He thinks holiday sales will rise a mere 2 percent over last year.'

"The National Retail Federation, citing the negative effects of the housing slump and mortgage crisis on low-to-middle-income Americans, said sales will increase 4 percent to $474.5 billion, or at their slowest pace in 5 years."

[ Who is that really? ] 

BTW - now, don't be making up excuses... ... listen to this;

For seven straight years sales have dropped in the music business and 2008 doesn't appear to hold any change. Peter Kafka tells us it is "because the three big retailers who comprise most of the industry's sales -- Best Buy (BBY), Wal-Mart (WMT) and Target (TGT) -- will likely make significant cuts in the amount of floorspace they devote to CDs."

Why would these retailers do that? "Industry executives expect the big players to cut back more dramatically after the 2007 holiday season, because they've concluded that the CD market is in permanent decline."

Resulting in;