How to Make Your Store a Recession Destination
All jewelry stores are specialty stores. They focus on one product type . . .
jewelry. But not all jewelry stores are destination locations. These stores have
such compelling inventory and selection that shoppers are willing to travel
greater distances and pass up other competing retailers just to shop
at a destination location store. The big box retailers of the 1990’s began a
trend of destination stores through their expansive selection of product
offerings. However, the concept had been alive and well in retailing for
decades. Why? Because of the focus on selection; selection is the number one
reason why people shop at retail.
Shoppers only care about the selection they are interested in. Sounds too
elementary, but wait. By having an inventory that offers “a little bit of
everything” to everyone you sacrifice your ability to compete on selection. How
can that be when you have even more selection by having so many different
products from so many different vendors? Yes, you have one or two or three of
the item that a shopper might be interested in, but you do not have enough
selection to motivate a shopper to make the extra effort to come to your store.
Your inventory strategy has severely limited your ability to provide an exciting
selection of pieces for the shopper to select from.
During these recessionary times shoppers are already accustom to hearing about
price discounts. What shoppers really want are more convincing sales presentations and
more compelling product demonstrations that make it too difficult not to purchase the
jewelry. The way to make your store a recession destination is to focus on how
fabulous your jewelry is and not undersell the value of the jewelry through too
much emphasis on price discounting.
Tell us how you have eliminated some products to be able to further expand your
selection in other product offerings.
Tim Malone commented:
Thanks for your reply Sandra. Congrats on finding a supplier that
is willing to expand the support they are offering to their retail
customers. It is always great to hear of a retailer willing to push
the envelope a bit by investigating just what a supplier might do
to help them other than merely negotiate a lower price. Too often
retailers act like a supplier’s rules are written in stone
and that is simply not the case. If retailers had any idea how many
different deals are on the books of many suppliers they would be
sure to make it a point to further investigate just what a supplier
might be able to do for them. Suppliers that are not offering a
wide array of support services and cooperative marketing and
merchandising support are missing the opportunity to further
differentiate their own offerings from their competitors. More well
developed marketing and merchandising programs offered by suppliers
really do help both the retailer and the supplier. I agree with
your suggestion regarding staple items- now consider how you can
target market using both staple items and trendy merchandise. Your
example of phoning customers on their birthdays is great. Please
consider moving to the internet and using target marketing by first
getting permission to email your customers with special offers and
secondly by sending emails that have fabulous graphics of specific
items you have selected for their special occasion. An obvious
example is sending some suggestions using their birth stone. The
phone call following the email may prove to be even more effective.
Be sure to ask your suppliers for photographs of items you can use
for your email marketing. Lastly, I agree with your point about
people spending even during tough times. I think Coco Chanel was on
to something when she said, “Luxury is a necessity that
begins where necessity ends.” You are right to point out that
jewelry is always in demand regardless what the economy is doing.
Tim Malone commented:
I can sense your anxiety Kashyup. Yes, if your marketing strategy
more closely resembles fishing then a broader selection would
conform better with a more traditional approach to inventory.
However, if you are thinking about how to segment your customers
and develop more compelling value propositions that match the
individual fashion approaches of targeted customers then you will
find the resources to do some direct marketing. There are ways to
drive the business through marketing and more strategic approaches
to building your store's inventory mix by category. . . Think about
how you can create more foot traffic into the store.
Sandra Cooke-Locken commented:
I just brought in a new Canadian diamond line (with much loss of
sleep and going round and round about!!) two weeks ago and have
already sold a 1.00 ct and put a .50 ct on lay away. I negotiated
terms with the company (in my store now, don't pay until June and
then six equal payments) and have taken them up on their offer to
do some of my custom work, at a lower price than my goldsmith
(we're currently doing four separate custom pieces). On the other
end of the scale, since the end of February, I've brought in three
new, well-priced silver lines (Zinzi, Kamelia, and Elle) with great
success and have already done a couple of re-orders with each line.
As the business is new (opened December 12th) we're trying new
things while making sure to keep classic, "bread and butter"
categories available too (colored stones, diamond pieces, loose
diamonds, gold chain). Plus, we do huge business in repairs. I've
been stunned at the number of watch and jewellery repairs that
people have gone ahead with and encourage jewellery stores that
don't do repairs (and I've heard there are a few) to do them as it
brings in steady money as long as you price correctly and offer
quality work. As well, I always ask my customers what else they
would like to see, and listen to what they say. I phone them on
their birthdays and anniversaries (I started the database when we
opened) and have a wish list in store, and send hint-hint cards
home with customers who want to make sure they get what they want!
I think as jewellers, we have to remember that even in a recession
people still fall in love, have babies, celebrate anniversaries and
birthdays...and jewellery can still be the gift people give.
However, you have to stand out from the crowd with personalized
service and, more selection in mid-price points (like silver). Make
your store a desination people want to come to and remember to stay
positive. If you complain about the recession, you remind your
customers about it!
Sandra Cooke-Locken commented:
I just brought in a new Canadian diamond line (with much loss of
sleep and going round and round about!!) two weeks ago and have
already sold a 1.00 ct and put a .50 ct on lay away. I negotiated
terms with the company (in my store now, don't pay until June and
then six equal payments) and have taken them up on their offer to
do some of my custom work, at a lower price than my goldsmith
(we're currently doing four separate custom pieces). On the other
end of the scale, since the end of February, I've brought in three
new, well-priced silver lines (Zinzi, Kamelia, and Elle) with great
success and have already done a couple of re-orders with each line.
As the business is new (opened December 12th) we're trying new
things while making sure to keep classic, "
Kashyap commented:
Dr M, in these depressing times I feel its better to diversify your
portfolio to include something for everyone. By not doing so one
may make it huge or file for chapter 11. These days banks are not
loaning money, credit is tight and consumers are wary about buying
large ticket items. I agree that consumers come to a store for
assortment and depth in that assortment, however in the current
situation I feel its better to have something for everyone. Atleast
that way you know that survival is possible, rather than taking the
gamble. As these times are extremly unpredictable.
