A blog for all things retail and licensing.

The Counterintuitive Truth: How Retailers Can Invest in Labor to Lower Costs and Improve Profits

Guest Blog by Matt Howard

Every once in a while you come across a simple idea that really forces you to stop and think…and then it makes you stop again and think some more.

For me that happened just the other day when I purchased and read a copy of Zeynep Ton’s new book entitled The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits.

Ms. Ton is an Associate Professor of Operations Management at MIT Sloan School of Management.  Over the past 10 years she’s conducted a vast amount of research focused on the critical role of store operations in retail supply chains and exploring how retailers can design and manage their operations in a way that satisfies employees, customers, and investors simultaneously.

Professor Ton’s simple, but powerful, idea is that retailers can invest heavily in store employees and simultaneously deliver lower prices, higher profits, and better customer service than their competitors.

Does that sound impossible to you?  Well, you’re not alone?

Conventional wisdom is that low cost retailers have no choice but to cut labor expense so they can attract customers with low prices and drive sales.

For most people, it’s simply counterintuitive to think that top performing low cost retailers are doing the exact opposite – choosing instead to invest heavily in labor.

But that is exactly what Professor Ton’s 10 years worth of retail research shows.  The presumed trade-off between investment in employees and low prices is a fallacy in certain situations.

The trade-off is specifically false for 4 low cost retailers – Costco, Trader Joes, Quicktrip, and Mercadona – each of which delivers superior financial performance by combining investment in labor with operational best practices including:

  • Offering less:  fewer products for sale reduces costs, improves labor productivity, increases category expertise and improves customer satisfaction.
  • Standardizing and empowering store staff:  non-selling tasks are completed efficiently and consistently plus employees make decisions that work best for local customers.
  • Cross train:  store employees are well-rounded athletes and remain productive doing different things.
  • Operate with slack:  stores are deliberately over-scheduled to ensure enough staff with positive attitudes are available to care for customers and complete critical non-selling tasks.

So, if increasing investment in store labor is such a good idea for low cost retailers, then why aren’t more doing it?  Professor Ton says the main reason is that labor is often a retailer’s largest controllable expense often accounting for 10% of revenues.  She also observes that many retailers see labor as a pure cost rather than a sales driver.  Finally, she notes that the financial benefits of cutting employees are immediate, direct, and easy to measure — whereas the downside of cutting labor is indirect, long term, and difficult to measure.

Now that I’ve read the book, and now that I’ve stopped and thought about it, it’s easy to see why certain retailers like Costco, Trader Joes, Quicktrip, and Mercadona do what they do.  It’s not because they are altruistic.  Rather it’s because they’re dedicated to operational excellence in retail, which leads to great experiences for consumers and superior returns for investors.

For me personally, the moral of the story is that retailers should avoid the familiar temptation to respond to short-term pressures by automatically cutting labor.  Instead, they should make the hard choices necessary to rededicate themselves to operational excellence and schedule sufficient staff to simultaneously care for customers and consistently tend to critical non-selling tasks.

Matt Howard leads global sales and corporate marketing for Natural Insight, a SaaS platform that provides workforce management and structured task management solutions to retailers.

Real-Time Shopper Data Takes the Guesswork out of Retail Planning

Guest Blog by Rich Scamehorn

Market research is a crucial part of a successful business venture. When you know what your customer is thinking and what drives consumer behavior, you can successfully target them and make your product a success. 6.7 billion dollars are spent on market research each year, and it’s an ever-growing business especially as technology and social media sites continue to spawn anew each day.

However, in the past, market research on shopping behavior has been very limited. For example, if a retailer or manufacturer wanted to monitor customer behavior, they would simply strive to track in-store behavior and purchases. Alternatively, companies could survey shoppers about their in-store behavior to try to understand why they bought (or didn’t buy) the products on the shelves.

For example, they might notice that shoppers appeared to prefer whole milk to skim milk, or that cereal on the middle shelf was more popular than cereal on the lower shelf – but it was difficult to understand why. Essentially, companies would try to make educated guesses about shopper behavior based on shopping trends, attitudinal surveys and tracking how people behaved while inside a supermarket.

Although such information was helpful, it was also very limited. The scope was narrow and results could be flawed.

However, thanks to advancements in virtual technology, manufacturers now have access to real, verifiable data that shows exactly how people shop and what leads them to make purchases. Shopper research can now be taken to the next level thanks to virtual simulations and 3D displays that allow manufacturers and retailers to try out store displays and packaging ideas before they invest time and money in them in the real world.

With these new technologies, the days of trial and error are over. And that’s great news, because in today’s world, stores are looking to do more than just offer the goods and services customers want. In order to compete in an over-saturated market (including online options), stores have to make sure that they offer a streamlined experience. That means that they have to make the shopping experience as seamless and smooth as possible. With the advent of simulations, stores can really put the needs and wants of their customers first and foremost.

With virtual store simulations, for the first time, we are able to see into the mind of consumers and actually predict their next moves. This means that we can help clients create in-store marketing plans accordingly and ensure that our clients don’t waste thousands of dollars on ineffective displays. From packaging to shelf arrangement, we provide data to ensure that every decision is made with real, first-hand knowledge and unquestionable statistics.

Virtual simulations are also invariably useful when it comes to working with manufacturers in different locations and perhaps even from different cultures. Unlike traditional in-person meetings that feature a Power Point presentation and plenty of talk, a virtual simulation allows clients to interact with the data no matter where they are on the globe. That means that even if your team is spread out across the country, they can still take part in the important process of shopper market research.

In particular, this is true for franchisees who come from different countries and might not be well-versed in English. With the simulations, it’s much easier to get the point across and bridge the language gap, which helps to ensure that everyone is included in the conversation and everyone’s voice gets heard.

We all know that the Internet has forever changed our society, and it has also forever changed the way that people shop and the way that people interact. In order to keep up with these trends, it’s time for market research itself to change. We have to continue to be innovative and progressive, and to change with the demands of the day as well as stay one step ahead of the curve. And, with virtual simulations and high-tech shopper research abilities, we can do exactly that.

Rich Scamehorn is CRO of InContext Solutions

Top 3 Driving Forces Behind Social Media’s Role in Retail Success

Guest Blog by Aneesh Reddy

Social media is entering an unusual phase in its life as a form of communication and potential business tactic. While marketers have been using social media for more than a decade and there is a growing array of diverging social media networks, its dynamics still change regularly, and what we come to learn about the field is still somewhat yet to be determined.

On the other hand, retailers have enough information about social media to take actionable measures that drive better customer engagement, improve satisfaction, increase loyalty, build purchase frequency and boost size of retail baskets. Social media serves as one of the most flexible ways to leverage classic marketing message strategies, including upselling, cross-selling and bundling for customers. Its speed and capability to create a prolific volume of communication remain unmatched. The Q4 2013 Social Media Intelligence Report from Adobe clearly demonstrates that website traffic by retail customers driven by social media use is rising across all major networks and that revenue per visit (RPV) from customers is on the rise in all networks, too.

In other words: Retail works. Well.

But what’s the actual reason behind social media’s role in retail success? Like most market dynamics, the forces driving social media’s connection to retail prosperity are multi-faceted and complex yet explainable. Furthermore, understanding those dynamics drives ROI for both short-term campaigns and long-term planning.

Force #1: Big Data
The amount of information yielded to companies in real-time through social media outpaces almost any other method of data collection. One of the biggest potential impacts social media brings to the table is its ability to both gather and unpack data. Given that customers may not have initially provided 100% of information in-store, on the phone or during an initial e-commerce transaction, social media can provide tremendous amounts of help in completing the picture of customers. Social media trumps previous electronic information-gathering methods such as email in that it creates a social realm that allows customers to engage the brand in a more comfortable digital environment. This leads to wave after wave of data for retail marketers and business development specialists, all of which requires analysis.

This need has opened up an extended B2B market, as solutions that provide customer insight have become a key part of the marketing toolbox. Those same solutions are then used to take immediate and impactful steps on performance.

Force #2: The Omni-Channel Exchange
Using multiple channels simply to gather information is not the only way to utilize the multi-dimensional communication network available to companies. Social media’s role in the larger ecosystem of customer communication makes it a cornerstone of what we might call “the omni-channel universe.”

In the omni-channel universe, customers can interact and engage, send and receive, and generally have a complete customer communication experience. Congruently, brands can engage customers on an open platform, monitor loyalty and customer churn, make timely offers and couple marketing channels to build better campaigns.

Social media is an excellent route to either establishing (hunting) or enhancing (harvesting) these campaigns, both of which are essential to better sales performance. Social media also allows for real-time customer feedback both positive and negative, and in combination with feedback from other channels, builds a richer and more textured set of customer touch points. Conversely, brands are capable of equally involved, high-speed engagement with customers, leading to better understanding and stronger relationships with the most important stakeholders of your business.

Force #3: Engagement in Over-Drive
Social media’s real differentiator as a potential retail business game-changer is in its ability to drive engagement tactics that haven’t previously existed. While customer feedback has been gathered for a long time via various innovative methodologies such as mystery shopping and surveys, social media allows for that feedback to be immediate. This same effect is at play in advanced gamification: check-ins, picture capabilities and comments on different social media channels open the door to a new world for retailers looking for inventive marketing tactics. Social media combined with in-store activity leads to fascinating instant offers tethered to movement as complex as in-store footfall and general purchase frequency. As social media and measurement tools simultaneously evolve, their complementary interaction becomes ever more powerful.

Implications for the Future
As social media continues to grow, shape and evolve, several major trends will likely occur. The popularity of certain networks will rise and fall according to user preference evolution, demographic and psychographic shifts, and other unforeseen variables. Retail brands will continue to provide real-time feedback, shortening the window between initial customer feedback and brand response. Brands will continue to investigate more and more powerful ways to engage the audience. Most importantly, social media use will continue to grow and continue to be effective.

Aneesh Reddy is Co-founder & CEO, Capillary Technologies

The ABC’s of Retail Safety: Keeping Kids Protected at the Store

Guest blog by Paul Giampavolo

More than 75 percent of shopping trips are taken by women, which means there’s a good chance that when many of them enter your establishment, they’re going to be accompanied by children.

The vast majority of us take great care to keep our stores safe, but when it comes to our most vulnerable customers, it’s always a good idea to go the extra mile. By implementing a few relatively minor but crucial steps, retail establishments can help ensure the well-being of their youngest customers.

Here are three tips to make your shopping environment safe and secure for children—and worry-free for parents.

Encourage shopping cart safety. According to the Consumer Product Safety Commission, approximately 16,000 children under the age of five fall out of shopping carts each year, resulting in thousands of injuries. Infant carriers falling from the cart account for as much as five percent of these incidents.

Customers should be discouraged from allowing their children to stand in shopping carts and climb or ride on the sides. Children should be secured with a seatbelt when riding in the seat, and should not be pushed in the cart by a sibling or another child.

Infant car seats should never be placed on top of a shopping cart seat. Though it may appear they were designed for that, this isn’t the case: car seat manufacturers have even warned against using their products on shopping carts. One option for retailers is offering docking stations: Safe- Dock is a universal infant carrier docking station that easily attaches to shopping carts and fits all infant carriers, safely securing babies to the cart and allowing parents to easily transition the carrier from the car to the cart.

Retailers can also ensure shopping cart safety by regularly checking the condition of the carts and quickly fixing any broken seat belts or replacing lost ones.

Keep bathrooms and changing tables clean, functioning and spill-free. Nobody likes a filthy bathroom, let alone a parent worried about their child getting sick from someone else’s germs. Make sure bathrooms are checked and cleaned regularly, and that there is an easy path to navigate when attempting to get there. Baby changing tables should also regularly be wiped down with disinfectant and checked for any cracks or broken parts.

Floor spills—in the bathroom or elsewhere—should be immediately wiped up or cordoned off with warning cones until they can be cleared. Employees should be made aware of where materials are located to clean up spills and debris.

If a spill or trip hazard cannot be immediately cleared, an employee should stay at the unsafe area while another obtains the proper help, cleaning materials or barriers to keep customers away.

Implement a Code Adam system. If your establishment hasn’t already, put into place a Code Adam system, a child safety program in the United States and Canada that is used when a child becomes lost or potentially abducted. The program—which trains employees on how to issue a special alert when a customer reports a missing child—is free and easy to use. You can read more about it here.

These measures don’t just offer an extra level of safety for children, they’re simply good customer service. If we want parents to continue seeing the value in shopping at our stores, we must help them to feel their children are in a safe and caring environment.

Paul Giampavolo is president of The Safe-Strap Company, and he is a leading expert on shopping cart safety and is chairman of the American Society for Testing and Materials’ (ASTM) Shopping Cart Subcommittee.

Tips on How to Get Better Results with Scanners

Guest blog by Nicole Williams

Scanners are commonly found in offices where plenty of paperwork needs to be copied digitally for online sending, computer storing, or data manipulation. They are used to scan documents such as contracts, employee records, invoices, reports, and so forth. All these purposes have one thing in common: they need to have high-quality scans from the scanning machine.

High-quality scans possess the following characteristics:

-        Sharper images, which includes figures, lines, and messages

-        No discoloration in reference to the original photo

-        Clear and no blurs.

-        The image can be enlarged more than a little without compromising quality.

How does one achieve all these when scanning documents or pictures? The first thing that normally comes to mind is to purchase a scanner with new and sophisticated hardware and installed programs.

Having a very good machine alone is not always a guarantee that the resulting scans will be excellent, though. There are other factors as well that can influence the quality of the produced output. Users, for instance, can bungle a scan just as splendidly as a mediocre machine. Mishandling the scanner or not being careful before and during the scan procedure is going to affect the resulting image. So, here are some tips that will help minimize mistakes and improve the quality of your scans:

  1. Always clean the scanning bed before using. Check for smears, fingerprints, lint, and dust. These things can mar the digital image. Depending on how wide the blemish is, where, and over what colors or lines they appear over, it could be difficult to digitally remove them without compromising the color or sharpness of the entire picture.
  2. Don’t leave the scanner open when not in use. That’s what invites grease and dirt on the flatbed. More importantly, you don’t want the scanner screen to get scratched. Dirt you can clean and remove; scratches you can do nothing about.
  3. Adjusting the angle of the image when it’s already scanned deteriorates its quality. Hence, make sure the image is positioned as straight as possible when it’s still on the scanner. Align the picture or document flush on one side of the scanner bed. Don’t take chances keeping it straight right at the center of the bed.
  4. Preview the image before starting the scan.
  5. When scanning photos, choose a resolution from 75dpi to 300 dpi (or ppi). Choosing higher, like 2400 dpi, will not give you a very good image quality.
  6. Sometimes it’s better to choose a particular type of scan instead of editing the image later. Most scanners have the following Types of scan options:
    • Color (using 16.7 million colors)
    • Grayscale (uses 256 shades of gray)
    • Line art (literally black and white, uses black or white depending on the contrasting shadows and colors of the original image. This makes line art the most appropriate scan type for documents).
    • Halftones (appears gridlike and is used for images that are to be printed out on newspapers and magazines)
  7. Don’t hesitate to repeat the scan if the result is not what you were hoping for.
  8. Save the files in PNG and JPEG if you want to send the images via email or attach them on social media or file sharing platforms. These file types are the most recognized and widely accepted ones.
  9. If you intend to blow up an A4 photograph and other near sizes into one humongous poster, scanning the photograph and enlarging the digital image is no longer the best option. You can retain photo quality for such a huge image if you take the original slide or film and run it through a film scanner instead. This is rarer than your standard scanner, but you will get the best result.
  10. Scanner pros advice that scanning pictures should be done one at a time. Basic scanners will capture an image of the entire scanner bed. Scanning two or more pictures at a time will merge them into one digital image, so alterations on one image will be applied to the rest of the pictures.
  11. If it’s necessary to save time and scan many pictures at one time, make sure each photo is positioned flush along one side of the scanner (see #3). Make sure too that there is a little space between each photo so that it will be very easy to crop and separate them into different image files later. (You should know though that the quality of digital images, especially those in JPEG form, deteriorates for each successive copy, resize, and folder-to-folder transfer.)
  12. In deference to the side-note for the previous number, make a habit of downloading scanned images directly into the folders where they are meant to be placed. Also avoid compressing images as much as possible because that decreases the quality of the digital image.

Hopefully you’ll be able to apply these tips the next time you use a scanner. You’ll get better quality, not just on the monitor but also on print.

Nicole Williams is a professional blogger and keen technology enthusiast who enjoys writing about improving workplace efficiency using technology. She currently writes for Micro Com Systems.

Common Sales Tax Pitfalls – And How to Avoid Them

Guest Blog by Jonathan Barsade

The Great Recession and slow recovery have taken a toll on state and local government revenues. Many states and municipalities have cut services and operations in response, but they’ve also significantly ramped up tax enforcement activities in an effort to secure more revenue, relying heavily on simple technology tools to automate and expedite enforcement processes.

While governments are putting technology to work for tax enforcement purposes, many small businesses have been slower to follow suit on the tax compliance side, living under the false premise that compliance technology is expensive, difficult to use, and relegated only to those large enterprises that have armies of technical and accounting staff who master the expertise to use these tools.  This misperception leaves them vulnerable and at a significant disadvantage. It’s not that business leaders don’t want to leverage the best technology tools to ensure compliance: Often it’s a case of small business leaders not realizing the scope of their obligations and the many pitfalls associated with compliance, even for company leaders who have the best of intentions, and more important, that modern technologies are readily available to businesses of all sides, that are not difficult to implement and not expensive to use.

Unlike the hoopla surrounding the annual income tax filing deadline, sales tax deadlines happen each month without any hype. Business owners who are focused on the bottom line – particularly those who are engaged in startup activities – can easily forget about this obligation. But noncompliance can be extraordinarily costly. Here are some of ways business owners get into trouble through noncompliance:

  • Missing deadlines:  Businesses that miss sales tax filing deadlines – even by just a couple of days – can be liable for hundreds of dollars in fines, even on minor tax obligations. It’s surprisingly easy to lose track of important dates when sales taxes are completed manually, especially for smaller companies where the owner is wearing multiple hats to keep the operation going.
  • Miscalculations: A sales tax miscalculation can have devastating consequences. One retailer was hit with a class action suit after setting up a cash register to calculate sales tax based on a location that was just a few blocks away – but in a separate sales tax jurisdiction (different county) with a lower tax rate. The retailer was liable for the difference out of pocket since it was too late to collect from customers, as well as the fines and penalties associated with the under-reporting.
  • Special tax categories: Other businesses have run into trouble through lack of awareness of which products and services are subject to special sales taxes. For example, in some jurisdictions, separate sales taxes apply to soft drinks, restaurant revenues and alcoholic beverages. A business that fails to comply could be subject to heavy fines and penalties.
  • Changing tax regulations: Even business leaders who try diligently to meet their sales tax obligations may find themselves out of compliance due to changing regulations. Sales taxes are subject to frequent adjustment for a variety of reasons, and businesses – especially those with multiple locations – must keep up-to-date or risk noncompliance and the resulting penalties.

These are just a few of the ways business leaders can run afoul of state or local sales tax compliance. It’s a complex issue, and there are thousands of tax jurisdictions, so it’s easy to make mistakes. But even companies that haven’t made any mistake can find themselves adversely impacted: Since taxing authorities have automated many processes, merchants occasionally receive incorrect assessments.   For example, in many situations, the state systems that generate assessments are out of synch with the systems that register when a return was filed or payment received.  Very often, as the state determined cut-off date (typically 5 – 7 days after the filing due date) passes, an assessment will be issued automatically because the return or payment were not listed as being received.  Without doing anything wrong, the business owner must now spend countless hours in negotiating with the state and local agencies and prove their innocence that they filed the returns in a timely manner and payment was collected in full.

While the business may not have to pay a penalty in the end if they can prove the assessment is incorrect, they will have to commit time and resources to documenting compliance and making their case to the appropriate section of the bureaucracy. This is time better spent on managing your business and generating profits.

So what’s the solution? Savvy small business leaders are increasingly taking advantage of technology to ensure sales tax compliance. Over the past several years, sales tax compliance technology has evolved, becoming much more affordable, accurate and automated.

With the right outsourcing partner, businesses can benefit from the automated solutions now on the market to ensure they file state taxes accurately and on time – and have an outsourcing partner to back them up if they get an improper assessment. In this way, businesses can avoid the common pitfalls in sales tax compliance – and focus on taking care of business.

Jonathan Barsade is CEO of Exactor

Five Approaches Retailers Should Take To More Effectively Reach Women

Guest Blog by Laura Bernier

Today’s woman is a key decision maker for her household, and yet, many retailers aren’t effectively targeting the female market. When you consider that women account for 85 of all consumer purchases[1], and by 2020 women will spend $7 trillion annually[2], it’s clear that it’s time to up our game.

Insights in Marketing, LLC conducted a survey of 1,300 women, ages 18-67, to uncover five Female Behavioral Insight Profiles (FBI ProfilesTM). The goal? To help retailers get better acquainted with who their customers are. Uncovering these female profiles gave us better insight into what motivates her to buy, and, in doing so, revealed how to best communicate with female shoppers. We’ve arrived at the following tips to help sharpen your communication skills when it comes to women.

1. Start and end with her.

Putting her first requires you to have a deep understanding of who she is, beyond demographics, attitudes and purchase behaviors. Get to know her psychological makeup, and you will able to predict her underlying motives and shopping behaviors. Psychology and marketing go hand in hand. Did you know that 37 percent of women 18-67 say they often shop to feel better[3]? How can your business capitalize on that?

Lululemon does it by “promoting an ethic of self-betterment through exercise, positive thinking and clothes.” The company understands that women aren’t just looking for new workout gear, they’re seeking “the potential to transform into the best imaginable version of themselves.”

2. Tailor your communication to connect with her.

Women feel a lot of pressure to make the “right” purchase decisions for their households. Is a product healthy? Good for the environment? How will it make her feel like a better person/wife/mother? Nearly 80 percent of women say that their first obligation is to their home and family[4]. Brands should be aware of that component and provide a good combination of emotional and functional benefits to help her make a decision she feels good about.

One great example of a company doing just that is Whirlpool Duet Washer and Dryer: Teen Jeans Spot. The marketing campaign communicates the tension that a mom experiences between her daughter’s angst over potentially faded/shrunken jeans and the confidence she has in Whirlpool’s sensor/adaptor technology. This mix of emotional and functional benefits validates mom’s own concerns and reassures her daughter.


3. Avoid being overly reliant on demographics.

We often see women being marketed to as a homogeneous group without accounting for the varying motivations behind behavior. Retailers should avoid trying to be everything to every woman.

Look at Publix, for a great example. The store attracts empty-nester, higher-income females. But, via their in-store experience of high-touch interaction with shoppers, premium products, cooking classes, and the tagline, “Where Shopping Is A Pleasure,” the store has transcended demographics. Publix consistently draws in women motivated by their desire for convenience, wrapped up in a sensory shopping experience.

4. Don’t stereotype.

One popular stereotype says that women love to browse and experience products before making a purchase. We’re taught that men are “mission” shoppers who like to get in, get what they need, and get out. The truth is that women buy differently, and not just from men, but from one another as well. Avoid these stereotypes by understanding the values, needs, and core motivations for your target consumer.

We can learn a lot from examples set by Lowe’s and Home Depot. Both home improvement businesses understand that not all women like to browse. In response, both stores have created sample rooms to help consumers visualize what they can create. All of the components are accessible nearby, so there is no need to search the store for each item.

5. Be different by driving for consistency.

Stand apart from the pack by executing with consistency. No matter who your consumer is at the core, be consistently authentic, truthful and transparent. Only 23 percent of women 18-67 say that they think advertisers and marketers are trustworthy[5], so be aware that they can see through inauthentic or inconsistent communication.

Nordstrom is notable when it comes to executing with consistency. The department store maintains extraordinary standards of customer service, whereby associates communicate and receive feedback from consumers preventing any “issues” before they start. The consistency also extends to social media, in which Nordstrom invites consumers to have a say by allowing them to “Be The Buyer” and vote on specific items they should carry. Engaging in a two-way conversation goes a long way with women shoppers.

For more information on transforming how you market to women, download Insights in Marketing’s free e-book, “Getting Women To Buy: Better Insights to Transform Your Marketing.”

Laura Bernier is Senior Strategic Planner at Insights in Marketing, LLC (IIM)

[3] Insights in Marketing, LLC Proprietary Research 2013

[4] Insights in Marketing, LLC Proprietary Research 2013

[5] Insights in Marketing, LLC Proprietary Research 2013

First Impressions: Changing Your Storefront can Increase Walk-ins

Guest Blog by Ryan Gavin

As a small business owner, how often do you look out front and notice people walking by without even looking? Potential customers walk by daily and don’t even give you the chance you deserve. First impressions are everything. Window shopping hasn’t gone away yet, and it’s still an important element of attracting customers. You can’t make passersby come inside your business, but you can catch their eye.

Modern storefront windows, possibly with a catchy logo or message, are your best chance for making a mark on passersby, who will judge your business in a split second. Compare yourself to the neighboring businesses. Keep in mind the idea is to stand out from them. If their storefronts are repulsive, you have to look normal. If their storefronts are average, you have to look above average. Commercial windows have many benefits other than just standing out. Whether you have a small store or a huge building, your business will be represented as more professional, and the more professional the better. Shop owners often think that their store will sell itself and that signs can grab the attention of any potential customers and pull them in. Unfortunately, this is not the case. Without that professional appearance, you won’t appeal to your customer base. However, if you do grab their attention, your sales can significantly increase.

Commercial storefront doors and windows increase curb appeal. Storefronts can come in many shapes and sizes. Custom storefronts would be the way to go for this one. Choose one that matches your personality, and that of your business type. For example, shop owners should focus on nice strong and attractive glass. Choose a frame design and material that isn’t too overpowering of what the window is showing, but something that pulls their attention off of the sidewalk. The right storefront can make all the difference in catching the eyes of passersby. Besides the interior design you may need, these exterior appearance changes can reduce the number of people who walk by without a second thought.

Why Even Bother With Renovations?

What’s the point of going through the trouble just to catch the eye of a customer? Put simply, a customer can turn into a loyal shopper. A new storefront can increase your business’ potential customer base, leading to an increase in sales and overall profit. Many small business owners don’t realize the value of their business’ appearance. Once the customer makes it into your store, it’s up to you to make the sale and convert them from a customer to a loyal shopper. Keep in mind: The first impression of a building is a major component of making a sale, so make sure yours is a good one.

Ryan Gavin is an associate of Aeroseal Windows & Storefront

A More Sustainable Side of Shopping

Guest Blog by Ian Lifshitz

Reflecting on the 2013 holiday shopping season, it’s clear that U.S. consumers are shifting how and where they buy.  According to comScore, online holiday season sales rose 10 percent from 2012, including an 18 percent increase in online spending on Cyber Monday and a 15 percent increase on Black Friday.

E-commerce is expected to continue flourishing, with mobile transactions accelerating and online retail sales projected to reach $434 billion over the next four years.  Of course online shopping is convenient, but we are learning that consumers can also feel good about its big picture environmental impact.  A Carnegie Mellon University study found that E-commerce is the less energy-consumptive option roughly 80 percent of the time, when compared with brick and mortar shopping.

As retailers expand their online capabilities, they should explore ways to promote the intrinsic environmental benefits of shopping online.  Here are five ideas that online retailers might share with their customers:

  1. Less energy is consumed during the overall transport process.  Purchasing online results in a reduction of miles driven during a product’s journey to the consumer.  For a brick and mortar purchase, a shopper must travel to and from the store to purchase items that required shipment from a central warehouse.  Online purchases remove consumer travel from the environmental impact equation while using delivery services that optimize routes for fuel efficiency. The U.S. Postal Service and private companies like UPS already travel these routes, with some urban environments even incorporating walking into their normal deliveries. All of these elements result in a reduced carbon footprint.
  1. Packaging can be repurposed.  Packaging used to ship purchases to a consumer’s home can be repurposed in a numerous ways.  Throughout the year, boxes can be re-used to ship gifts or care packages to loved ones in other locales, used to wrap up gifts for in-person giving, or employed for off-season storage.  A lesser known use for some shipping supplies is fertilizer; certain shredded paper can actually be incorporated directly into compost.
  1. Responsibly-sourced materials are increasingly available.  The pulp and paper industry is continually innovating around sustainable packaging, light-weighting packaging while maintaining strength to increasing proportional use of post-consumer content.  The industry is also responding to demand for renewable packaging materials that are responsibly grown.  For example, paper and board packaging can be made from virgin fiber that is sustainably sourced from renewable plantations.  Certain climates, like those around the earth’s equatorial band, are optimal for accelerated tree growth and shortened maturity cycles for tree harvesting.
  1. Retailers are responding to consumer input.  Online retailers are actively reducing their environmental impact in response to consumers expressing interest in more options in package selection.  For example, Amazon is working with manufacturers to give customers the option to receive products boxed in “Frustration-Free Packaging” or to have items consolidated into one shipment to reduce the overall amount of packaging materials used.
  1. Online marketplaces foster reuse.  When considering online shopping and efforts to reduce, reuse and recycle, don’t forget to look beyond the packaging to the products themselves.  Giving another life to a used product through the emerging sharing economy is a wonderful way shoppers can exercise their eco-friendly muscle.  Online services like eBay, Craigslist and Etsy’s vintage section, enable buying and selling of (re)used goods such as books and collectibles, which can make for some thoughtful and cherished gifts.

The migration to online shopping may be rooted in convenience, but the rising trend in awareness around responsible purchasing cannot be ignored.  Those retailers who understand and embrace this view will be better positioned for a successful future.

Ian Lifshitz is the sustainability director for the Americas for Asia Pulp & Paper Group (APP).

Retailers: What’s in the way of your sourcing success?

Guest Blog by Steve Whiteman

Coming off a less than spectacular holiday shopping season, the retail industry is once again feeling the squeeze.  According to USA Today, of the 29 retailers that recently reported earnings guidance for the current quarter, 25 of them were negative. Adding to the uncertainty is a recent report from Standard & Poor, which predicted that rising healthcare costs and low retirement savings will hurt discretionary spending in the coming year.

The worst news, though, comes from Deloitte, which reported that the number of retailers going bankrupt has increased over the past three years – rising 6 percent last year and up 18 percent since 2010.

For retailers, trimming costs is more important than ever. And when it comes to improving margins and profitability, procurement is always a good place to start.

In the last decade, full-service e-sourcing has emerged as an essential tool for maximizing the value of a retailer’s supply chain. E-sourcing gives procurements teams a fast and easy way to secure more favorable terms from suppliers, eliminate inefficient processes, and glean data-based intelligence for smarter sourcing strategies. By establishing e-sourcing as a key part of the procurement process, organizations can fight against rising prices and uncertain consumer spending, and more importantly – transform the supply chain into an engine for value and growth.

Unfortunately, for many businesses – not just those in retail – procurement transformations can be daunting – filled with internal obstacles that hinder success.

In many cases, procurement leaders face resistance from buyers – either because they’re concerned that reverse auctions will damage long-standing and carefully nurtured supplier relationships, or they’re skeptical that technology and outside experts can replace traditional procurement skills or experience.

In other cases, buyers don’t believe that strategic sourcing can have a notable impact on greater business objectives – or that e-sourcing can live up to its claims of double-digit savings without negatively impacting quality or service levels.

Additionally, many procurement teams lack the staff and resources required to successfully execute a sourcing transformation.

Fortunately, there are several strategies that sourcing leaders can employ to overcome these hurdles and get their organization fully committed to supply chain excellence.

Get the C-Suite Involved

Enlisting the help of the CEO or CFO can be a powerful and effective way to ensure that your procurement team is onboard with e-sourcing. The c-suite sets the tone for the entire company – and it’s no different with procurement.

A CEO or CFO can ensure that buyers accept e-sourcing as a critical component of the procurement process by confirming and reaffirming – both publicly and privately – its importance to the overall goal of maximizing supply chain value, and continually articulating the company’s commitment to financial success.

By positively showcasing confidence in e-sourcing, the c-suite can help buyers overcome their doubts of the technology.

Empower Buyers

While the c-suite can set the overall tone, e-sourcing success ultimately depends on buyers being invested and dedicated to the process. Procurement managers can achieve this by clearly articulating what’s at stake for them – and the business itself.  

The best way to get buyers to buy-in is to celebrate sourcing success with employee recognition programs that reward buyers that hit particular goals – such as running the most sourcing events, or sourcing the highest amount of spend. By publicly recognizing the most successful savers, procurement managers can instill a positive and competitive team environment.

Additionally, managers can include e-sourcing metrics in buyers’ KPIs and annual goals. This ensures that buyers’ sourcing success will translate to their professional growth.

Provide the Tools to Succeed

Of course, once buyers are invested in supply chain transformation, procurement leaders will want to put them in the best position to succeed.

E-sourcing can enable retail buyers to make more informed procurement decisions by providing greater insight into a company’s spend – including the category volume, suppliers used, historical data, market trends, and more. With this insight, buyers can run more sourcing events, with more effective techniques – including combining vendors or sourcing multiple categories in a single event.

And with the help of outside sourcing experts, procurement managers and buyers can better understand when the best opportunities are to source specific categories, and ensure that events are run quickly and with the most effective strategy to yield the best possible results.

Driving Growth and Profitability

The key to a successful sourcing transformation in positivity and empowerment.  The company culture shift requires complete organizational participation, from the top down. It starts with the c-suite – but after that, procurement managers need to ensure that buyers are empowered and are rewarded and recognized for their success.

By committing to maximizing the value of their supply chain, retailers can win a major competitive edge that drives revenue and brings more customers in the door.

Steve Whiteman is Chairman and CEO at Intesource. Intesource’s latest report — “Overcoming Internal Roadblocks to Sourcing Transformation” – is available now for download.