Remember all of retail is about differentiation. When you’re thinking about improving retail sales performance, consider the ways in which your store is differentiated. For many retailers, considering how they can differentiate their stores is a mind-boggling task. This may help: I believe there are only six categories through which a store can be differentiated. We call them the “Six Ps of differentiation”. Improve these differentiating factors and you’ll be well on your way to improving retail sales performance.
1. People-Are yours better trained, friendlier, more knowledgeable etc?
2. Presentation-Is your environment more pleasant, with displays that appeal visually and tactilely? Is your store more fun?
3. Proximity-By virtue of your store’s location and its ingress-egress your store is the most convenient source for some people. Is it the most convenient store for enough people?
4. Price (This probably shouldn’t be the one you focus on)
5. Products-Are yours unique? Do you have a niche? Is your store dominant in that niche…meaning is your selection the widest and deepest within the niche you have targeted?
6. Promotion – Are you using creative ways to reach your target consumer? Are you reaching them with frequency and repetition? You have to “reach out and bring people in”. Don’t fall into the “build it and they will come” mentality.
Assuming there is adequate demographic support for your product line within your store’s immediate pull, analyze and improve how you compete on these core points and you will be actively improving retail sales performance.
