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2 Most Critical Positions in a Retail Company

Published October 14, 2015 Tools Leave a Comment
“Control your own destiny or someone else will.”      – Jack Welch

The Store Manager holds one of two critical positions in any retail company. The other one is the CEO.

That’s not to say that other positions aren’t important. Of course they are.

Sales Associates, for example, are your ambassadors; meeting the customers face to face every day. And, as you’ve probably come to realize, the best Sales Associates are the ones who are competent and fully trained and do a great job actively selling to customers and representing the company in the best possible way. Certainly, they are important.

But, there is one person who must ensure that all of the competence and training is put to good use on the sales floor. That person is the Store Manager, without whom there would surely be chaos. It is up to the Store Manager to set individual targets and to continually reinforce the performance culture in the store.

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“A pack of sheep led by a lion will defeat a pack of lions led by a sheep.” Author Unknown

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A true statement? We think so.

The Store Manager is, by virtue of his/her position if nothing else, the leader of the pack. That leader is single-handedly responsible for the performance of the team because, apart from the fact that it’s the job… the Store Manager is also the one with the most influence.

The most direct influence, for sure.

No matter how skilled the team members are – and it is understood that some will be much more skilled than others – the Store Manager will make the difference in the performance levels achieved by the whole team.

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The Retail Success Accelerator

is available in physical and digital formats.

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Store Manager’s official job descriptions vary widely. Some are expected to be administrators; others, loss prevention officers, or faux police. Some are expected to be the top sales person and are seen (erroneously) as under-performing if their salespeople achieve higher sales numbers than they do.

Still others are instructed to do so many simple administrative tasks that they are left with very little time to actually manage the store.

In other words, many Store Managers are not expected to fulfill the role as it should be fulfilled.

For whatever reason, they have been given a title of Store Manager but are expected to perform many routine tasks and clerical work.

Critical question for you:

What are you asking of your Store Managers?

If you expect your retail organization to be successful, you are asking them, simply, to manage the business.

But, what does that mean, exactly?

The Store Manager’s main role is to drive the business; to strive for top performance from themselves and from every associate every minute of every day.

Store Managers operate stores, or business units, and, when all is said and done, the goal of a ‘for profit’ business is to provide a monetary return to stakeholders.

In support of that goal, they need to do a lot of work; they need to do all of the right things right. Store Managers, who are doing the job properly, are very busy people.

They recruit and hire good people because they know that the road to success is much easier when they are surrounded by competent people. They ensure each associate is well trained to carry out their responsibilities. They set targets for each associate and continually follow up to make sure those targets are being met.

They coach, and they guide, and they stay on top of everything.

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Get the Retail Success Accelerator here.

$697 Physical/Shipped; $297 Digital; Both $747

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Very importantly, they take appropriate action when targets are not being met. They figure out what is causing the problems and fix them.

Of course, there are many things the Store Manager is responsible and accountable for. But all of those things must be in support of the goal, or the main purpose for the store’s existence.

Great Store Managers are your ticket to extraordinary success in retail.

All the Success!

DMSRetail Inc.

PS: Want great Store Managers? Here is the best thing you can do to support your Store Managers. Hand over the complete store performance solution…the Retail Success Accelerator. $297 digital. Click here to order.

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Take the Retail Math Quiz

Published August 24, 2015 Tools Leave a Comment
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Do you know all about GMROII, GMROF, GMROL, Fixture Profitabililty, Inventory Turns and more?
Test Your Knowledge – Retail Math Quiz
Even if you know all about the GM’s…why not take a refresher? Have some fun!
Okay, here goes….

Test Your Knowledge – Retail Math Quiz

1.) What are the 6 Pillars of Retail?

2.) A product’s retail price is $79.95 and it costs $42.00. What is the Gross Margin of this product?

3.) What is the Mark-up for the same product?

4.) A store’s annual sales are $3,560,250. Monthly inventory is as follows:

Month

BOM

EOM
January 1,455,764 1,210,357
February 1,210,357 1,050,894
March 1,050,894 975,620
April 975,620 1,125,735
May 1,125,735 1,024,563
June 1,024,563 967,446
July 967,446 896,278
August 896,278 1,383,369
September 1,383,369 1,432,911
October 1,432,911 1,791,876
November 1,791,876 2,687,987
December 2,687,987 1,375,218

Based on these numbers, calculate the inventory turns for the year.
Hint: Calculate Average Inventory first.

5.) Utilizing the already calculated Gross Margin, Sales and Average Inventory, find out what the GMROII would be for this store, for the same year.

6.) We want to utilize GMROF to compare two display fixtures of different design:

Fixture 1: Oval shape with merchandised area of 7.65 square feet. Sales generated from this fixture in one month are $3,465 and Gross Margin on those sales is 43.5%.

Fixture 2: Rectangular shape with merchandised area of 7.20 square feet. Sales generated from this fixture in one month are $2,987 and Gross Margin on those sales is 45.6%.

Which fixture is more profitable?

7.) We want to compare the contribution of staff between two stores. Here is the data we have:

Store Sales This Month Gross Margin Total Payroll
1 $270,500 44.7% $44,895
2 $343,750 42.5% $55,280

Which store’s staff is contributing more?

8.) Here is some store data collected through POS and Traffic Counters:

# of people who entered the store – 1,362
# of sales tickets generated – 398
Total number of units sold – 724
Total payroll for the same period – $3,842
Total sales generated – $34,548

Calculate the following:

1. Conversion Rate
2. Average Sales per Transaction
3. Units per Transaction
4. Wage Cost

9.) Here is the overall company data for the 3rd quarter sales:

Month Sales Last Year % Achieved Target % Achieved
July $2,074 $1,926 $2,022
August $1,866 $1,792 $1,882
September $2,672 $2,503 $2,628
Total Q3 $6,612 $6,221 $6,532

Calculate this year’s performance compared to Last Year and compared to Target for each month and for the 3rd Quarter.

That’s it. How did you do?

Scroll all the way down when you go here to see the answers.

We hope you enjoyed today’s challenge.

You and Retail Management Resources

Published August 2, 2015 Tools Leave a Comment
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“The best way to predict the future is to create it.” Peter Drucker

Create It Using Exceptional Resources!

You’ll likely agree that there are resources, in this world, that we really wouldn’t want to do without.

A dictionary, for example.

Imagine how frustrating it would be to hear a word that you didn’t recognize which, possibly renders a whole sentence or paragraph unintelligible to you, and not have a way to get the definition and understand the word and context.

How would you proceed? How would you take action if it was required of you?

You may find you could not do it.

We have to understand if we are to act appropriately.

Another well used resource is a medical text. Doctors have to learn as much as possible about the human body and how it works; about symptoms of every disease, condition, therapy, etc. They must have a reliable resource to consult when necessary.

How would the Doctor ever graduate from Medical School without using all of the resource materials at his disposal?

Accountants and Legal Professionals all consult volumes of texts and reports and case studies in order to gain their degrees and go on to do their jobs properly.

Skilled Tradespeople learn through books, apprenticeship programs and other resource materials in order to become licensed in their field.

Every profession needs resources available to them for study, and for future reference, regardless of what stage they are at.

Retail Managers are no different.

Trying to function well in their positions without resources is bound to be frustrating and not terribly productive.

Colleagues and Superiors are certainly excellent resources but they do not stay put and cannot be relied upon absolutely every time they may be needed. They have their jobs to do, too so as much as they may want to help….they just can’t always be there.

Perhaps you didn’t need any additional resources when you started out. You knew everything and did everything your way, right or wrong.

But, when you are in growth mode, you definitely need more sophisticated help.

Growth requires that certain systems, processes and procedures are in place and working well.

We’re not talking about red-tape and bureaucratic hold ups. There is no room for any of that in a fast moving, successful retail operation.

We’re talking about the disciplines, the principles, the consistency, the fairness and reward systems. We’re talking about performance management that works instead of fly-by-the-seat-of-the-pants coaching and employee evaluations.

What resources will you provide to the people working in the stores, the districts, the Head Office?

How will they function at the top of their game?

And, your high performing individuals will need reliable resources to help them get the knowledge and skills they need to move them to the next level in the organization.

A super Sales Associate will need help and training to move to Department Supervisor, or whatever that next level is in your organization.

An Assistant Manager will need resources to learn from so that s/he can take the helm of a store.

You won’t be able to avoid the pitfalls of growth without the required preparation. And, for that, you need to get hold of serious retail management resources.

Increase your chances for positive outcomes…

Become a member of the Retail Business Academy. Below, we spell out the products, services, systems and advice you get access to for just $97/month.

You have access 24/7…at your leisure.

And, of course, you can cancel your membership in the Retail Business Academy at any time.

For those of you who want to share information and offer the very best chance of growth and development to your people, get them their own membership in the Retail Business Academy.

Volume Discounts on Memberships

Invest in their future to give them the skills to invest in yours. We offer volume discounts on our memberships so it’s easy and painless to upgrade the skills and capabilities of your entire workforce.

First, let us tell you that absolutely everything that DMSRetail offers for sale, is included in the Retail Business Academy.

Plus, there are many more products included that are not available for sale anywhere.

And, we’re growing it every day making your Platinum Membership more and more valuable. We’re working day and night to get new stuff uploaded for you.

This membership will offer new and different things to you all the time.

You’re going to have access to a wealth of different things, such as…

  • Success Guides
  • Tools
  • Study Courses
  • Performance Solutions
  • Information
  • Tips
  • Advice
  • World Retail News
  • Gems
  • How-To’s
  • DVD’s
  • PowerPoint Presentations
  • Pearls of Wisdom
  • Forms
  • Checklists
  • Videos
  • Consultants
  • Instructors
  • Motivational Quotes
  • and other seriously good stuff

Special Platinum Membership Benefits

Discounts on Workshop Attendance

  • The Retail Operations Management Workshop
  • Retail Category Management Workshop
  • Retail District Management Workshop
  • Retail Math, Metrics & KPI’s Workshop
  • Store Management for Maximum Success Workshop
  • Retail Design & Visual Merchandising Workshop
  • Retail Marketing & Brand Management Workshop
  • Cashier Etiquette & Performance Workshop

Access to Consultants and Instructors at DMSRetail via email

Scheduled telephone conversations with DMSRetail Consultants and Instructors

All of this is being brought to you by DMSRetail – a company that has been in business since 1991; on the web since 2003.

So, check out this link to the Retail Business Academy. You won’t regret having your own Platinum Membership.

It’s the best $97/month investment you’ll ever make. If you’re in retail, you really have to have this.

All the Success!

Director

Retail Business Academy, Membership

DMSRetail

PS: We sincerely look forward to counting you as one of our Retail Business Academy members. Join now.

Build Your Successful Retail Chain

Published July 11, 2015 Tools 1 Comment

Holiday Tip #3

Published December 3, 2014 Tools Leave a Comment
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Today, we want to share a story of one Store Manager who figured out how to overcome poor store performance.

But, first, let’s answer this question…

If there was one thing that you could point to as the most important thing you can do, in this final quarter of the year, to give you the best possible shot at closing the year with a degree of success, what do you think it would be?

The answer is to effectively manage the performance of the people in your retail store(s).

Your retail store isn’t going to change much except for the usual visual merchandising and possible layout changes; all of your retail management training has been done; the inventory has been bought and will, hopefully, arrive in stores as scheduled; your POS system will be the same; your marketing and promotional efforts are probably all developed and ready to implement, except for some last minute attempts to give business a lift; and, unless something goes terribly wrong, you won’t be making any changes in your retail management teams until next year.

The only thing that can significantly change that will really make the difference over the next few weeks is…
You guessed it…the people working in your stores.

If you’re in retail, you know it’s all about store performance and you simply cannot expect superior performance from the store(s) if the people dealing with your customers aren’t performing at the expected level.

Here’s the story, we mentioned above, written by a Store Manager who learned how to solve her concerns about store performance…

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“When I got my first Store Manager’s job, I was almost overwhelmed by the number of things I had to accomplish. In fact, there is so much involved in managing a store that, without the benefit of experience, a Store Manager could easily lose sight of what is really important.

During that first few months it seemed like I was doing everything I possibly could to get the sales results. I was hiring and training people, scheduling really carefully so as not to overspend on wages while still keeping my sales floor properly covered; constantly moving merchandise around so that customers would always be treated to a fresh look when they came in; I was coaching and motivating my people all the time. Really, I thought I was doing the job.

But, even though I was working incredibly hard, I still wasn’t getting the sales I knew the store was capable of generating.

Then, one day, I really started taking a close look at what my Sales Associates were doing. They were a great bunch of people and they worked very hard for me. I realized that, although they were all doing everything I asked of them and they were all super friendly with the customers, they weren’t really actively selling to them. Eureka!

It was definitely the most exciting aha! moment in my career up to that point.

I finally got it…I had to teach them how to actively sell to customers! Honestly, they had been doing the best they could; the best anyone could ask of them given that they had never actually been trained to sell. Who knew? Most of them were following some of the selling steps involved intuitively, but there was something missing…

Being very good at selling, myself, I realized I had long ago developed my own unique way of selling…but I didn’t start out that way. In the beginning I had to rely on the selling steps that I had learned to ensure I covered everything in the process.

You really can’t miss any of the steps until you’re very experienced; experienced enough to read the customer and to make changes to the process…changes which enhance it; not changes to shortcut it.

So I got fully behind a project to get all of my Sales Associates up to speed with an active selling skills program. It wasn’t difficult and it wasn’t time consuming.

I could have kicked myself because it had taken me so many weeks to figure it out.

Anyway, once I did finally figure it out I got my people the help they needed; the training they needed. They learned how to use the active selling skills steps and the rest is history.

Not only did my store’s sales improve by about 60%, which did wonders for my reputation in the company and was, undoubtedly, the reason for my fast promotion to DM, but the morale in the store was impacted in a major way. Everyone got amazing results. Well, almost everyone. A couple of really shy, introverted associates took a little time to warm up but, eventually, they did great too!

All of my Associates were beating their targets every shift, every day, every week. It was astonishing.

My Sales Associates were filled with the energy and excitement that comes with that kind of achievement. You should have seen the big sales chart in the back room…gold stars and smiley faces all over the place! The staff were renewed and the store was beating the targets like never before. And not just total sales compared to target and last year,either!

All of the KPI’s were being blown out of the water.

Our biggest gains were in conversion % – you know, the rate you turn shoppers that come through your doors into purchasers. I just would not have believed that my staff were missing so many opportunities before. They had always been great with customers and they worked hard to make sure customers were satisfied. I can see now, because hindsight is 20/20, that they simply did not have the skills to do better.

Our average sale per customer and units per transaction shot up too. Of course, once you start actively selling to customers instead of just helping them, all of your key performance indicators will improve dramatically…anyone could increase their KPI’s, couldn’t they?
Yes, yes, indeed they could and would.

I know that now but, like I said, hindsight is 20/20!

I’m a true believer in giving Sales Associates and Cashiers and anyone else who interacts with customers on your sales floor, the benefit of proper training – the tools of the trade, so to speak – in active selling skills… and in customer service basics, as well.

I’m also a true believer in staying on top of everyone’s performance…every hour of every day. I know that it’s my job, as the Store Manager, to make sure the job is being done well, at all times.”

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That’s her story.

If you want to put your store performance concerns behind you, take a page out of this Store Manager’s playbook and get the big store performance solution we’ve created for you…

Retail Success Accelerator

Just so you know, you’re certainly not alone with your store performance issues and concerns. There are plenty of retailers out there experiencing the same things.

The Retail Success Accelerator, a compilation of three of our top store level problem solving products, is available in digital format for only $297.

Order and the files will be delivered to your inbox. Get started right away.

Here’s what you get when you order the Retail Success Accelerator:

#1: Store Management for Maximum Success Study Course – individually priced at $197

#2: Super Retail Success Bundle – individually priced at $147

#3: Retail Selling Skills & Customer Service Fundamentals Study Course – individually priced at $97

We put these three individual solutions in a special package because we know you’re busy and you just want to get things fixed.

So, to make it easy for you to order just one product and get all of the solutions that will address your store performance concerns and save you money at the same time, we introduced the Retail Success Accelerator.

The Digital Version is just $297. (Savings of $144 or 32.65%)

Every day that you struggle with your store performance concerns is just another day of missed opportunities. Click here and Kick everything up a notch with the Retail Success Accelerator.

All the Success!

DMSRetail Inc.

PS: Remember, your store performance concerns CAN and WILL be a thing of the past when you start using the Retail Success Accelerator. Order now.

Holiday Tip #2

Published December 2, 2014 Tools Leave a Comment

Here’s your Holiday Tip # 2 and Hint of the Day.

Anytime you’re heading into a busy season, it pays to take some time to talk to all of your management and staff about selling what you’ve got in stock.

This is often referred to as SWAT – Sell What’s Available Today.

To all of you Retail Business Owners and Store Managers… don’t accept excuses or complaints. Whatever your store does not have available to sell on any given day…it simply cannot sell and it serves no purpose, whatsoever, to complain about this.

It’s just a fact of life at that particular moment.

And, even if it is their fault, buyers, allocators and suppliers can try harder next year…but that won’t help you now.

Maybe you didn’t get enough of a popular item. Perhaps another store, or even another retailer got more, maybe replenishment is too slow. It really doesn’t matter what the reason…the fact that it is not available to sell to your customer means you need to sell something else. Period.

The alternative to selling something else is to sell nothing…and that really isn’t going to help, is it?

So, not having the perfect inventory can not, and must not, be used as a reason, or excuse, for lack of productivity.

Having said that, however, DMSRetail always advocates excellence in customer service which includes selling the right product to your customer based on their needs and wants.

So here’s how we’d go about it.

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Not sure if all your people can sell? Get the Retail Selling Skills and Customer Service Fundamentals Self Study course quick – no time to waste…digital version available for immediate download-only $97. Buy here.

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It is very often possible to find an alternative for your customer…particularly during gift giving seasons; one that will be of value to them and will suit their needs very well. And they will likely appreciate your efforts as it will save them time looking elsewhere.

Your Sales Associates should be knowledgeable enough to interest customers in a solid alternative that you do have in stock.

And, quite apart from the benefit to the customer, remember one critically important fact – you have inventory in your store that the company owns; probably many thousands of dollars worth of inventory, and it must be sold at some point.

The fact that you may not have enough of the merchandise that is easy to sell is unfortunate but, again, you do have inventory to sell. And provided that you are giving your customer value with a good alternative, it’s your job to do just that – sell your inventory.

Of course, sometimes a customer wants a specific item and cannot be persuaded to purchase an alternative, and that’s fine. At least you’ve tried to help them and to make a sale. At no time would we suggest trying to push an unwanted item on a customer.

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Not sure if all your people can sell? Get the Retail Selling Skills and Customer Service Fundamentals Self Study course quick – no time to waste…digital version available

for immediate download-only $97. Buy here.

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Hint of the day: Stay on top of product knowledge more than ever during the holiday season; check out new items that are coming in so you’re aware of what you’ve got in store – what alternatives you have. Keep the idea of alternatives in mind when asking your open ended questions during the ‘determining needs’ step of the selling process.

All the Success!
DMSRetail

PS: Quick and easy help for the busy selling season, and beyond, is available in the Retail Selling Skills & Customer Service Fundamentals Self Study Course. Get the knowledge, skills and tips anywhere, anytime, at your convenience…and without all of the travel expenses of attending the workshop in person. Digital version is only $97. Check it out here
PPS: If you have a friend or colleague who might be interested in our Tips, feel free to forward this to them. Better yet, they can sign up for their own copy and get a free copy of ’22 Ways of Highly Successful Retail Managers’ as a sign up gift. Sign up is free and takes about 3 seconds, right here.
Join DMSRetail’s growing Facebook community. If you like us…please ‘Like’ us. Thanks

DMSRetail Performance Framework

Published October 26, 2014 Tools Leave a Comment
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DMSRetail Performance Framework

 

Retail Performance Framework

Hiring: A very important step in the performance process. They say if you have the hiring right you’ve won half the battle. DMSRetail Performance framework creates a powerful candidate profile using HBDI and the “Champ” tools.

Training: Along with right hiring, a formal training program which includes all of the areas mentioned above is a must. Many retailers either skip this altogether or do a pretty mediocre job, taxing the performance right from the get go.

KPI’s & The Balanced Score Card: Correctly designed balanced scorecard is at the heart of the performance process. Through this tool, we are able to communicate what the priorities and the expectations are.

Evaluation: On going and frequent evaluation is key to make sure everyone is steering towards the right objectives and also making sure that staff has the necessary skills and tools available to them and that they are using them effectively.

Compensation: A very important part of the performance puzzle, yet does not get the necessary attention from the top executives. Retail business is a selling business which means the foundation of the compensation plan should be “Pay for Performance”. It amazes us that there are retail executives that don’t understand or just plain refuse this concept.

Promotions: One of the very few good things that we have in retail business is the ability to move up relatively quickly, provided that the individual has what it takes. Once again, only DMSRetail has the right approach to this very powerful motivational vehicle.

Standards: Operational excellence depend largely on setting high standards and making sure that the whole company performs under the “Zero Tolerance” guidance. To achieve this will require a bit of effort at the beginning but once people embrace and habitualize it, it will be 100% each time, every time.

Culture: Probably the biggest job of all is to create the right culture and the 2 additional sub-cultures. Majority of the weight of this task belongs with the top manager and it is a constant and continuous battle. That is why we don’t see success in this Endeavour very often.

What To Do Next:

DMSRetail has developed a “30 Minute Retail Management Tune-Up” which we conduct over the telephone with you and your top staff members. Here is what we accomplish together in this fast-paced, zero nonsense session:

• Ideas on how to implement the DMSRetail Performance Framework in your company

The 30 Minute Retail Management Tune-Up is conducted by the principal of our company, Matt Parmaks M.Sc., who worked with more than 100 corporations including Sony, Bell and Praxium Group. Please be assured that this consultation will not be a thinly disguised sales presentation; it will consist of the best intelligence Mr. Parmaks can supply in a thirty minute time span. There is no charge for this call, but please be advised that the call must be strictly limited to 30 minutes.

This consult will typically take place within 1-2 weeks of your call. To secure a time for this consultation, please call Josephine Hill at +1 (312) 239-0919 or email jhill@dmsretail.com  and she will advise you regarding available time slots. She will also provide you with a pre-consultation questionnaire that will prepare both you and us to get maximum value in the shortest amount of time.

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