Spring 2013 Hardlines Strategies

STORE OPERATIONS

Am I using opportunities for impulse buys?

You can always try to upsell to the better product, even if the customer comes in asking for the least expensive. Do I have C, D and E items in my assortment mix? A and B items move off the shelf the fastest, and they have the highest price sensitivity. But it’s those more unusual items that will give you the reputation as the place that has everything. For example, if you have a comprehensive line of power tool accessories, you’re likely to have some items that don’t sell all of the time. However, you’ll quickly become known as the destination for power tool accessories because customers know they can find what they need at your store. Have I reviewed my inventory to eliminate redundant and dead items? The best way to tell if an item hasn’t moved in a while is to check your POS system. If you don’t have a regular habit of doing this, use the time just before you come to the Market to check each category in the store for items that haven’t sold in while. Check with vendors to make sure you have the most current models so you aren’t selling outdated merchandise.

American Retail Hardware Association conducted a study called “Merchandising for Profit” that revealed how you could increase sales of an item just by placing it in a certain type of display. Temporary dump bins, for example, garnered a sales increase of as much as 427 percent. Power aisle stack displays could increase sales of an item by 98 percent. Look around the store for opportunities for other types of displays, including permanent dump bins, rolling racks with signs, service counter displays, checkout displays and stack displays. Do I have clear signage that makes it easy for customers to shop? Good signage allows customers to eas- ily find what they need and keeps them in the store longer, as signs can lead them from one department to the next. But signs aren’t just to guide shoppers through the store. Use shelf talkers and POP displays to convey product and how-to information. A project list sign, for example, can sug- gest add-on sales in another department. In the mini-store store at the Spring Buying Market, you’ll see examples of the signage Blish-Mize can create for your store, which includes customized signage so you can incorporate your own brand message. Is my store well lit? Good lighting helps draw attention to those displays you’ve worked hard to cre- ate. You can use special, direct lighting for displays you want to highlight. Good lighting can even enhance the color of the products on the shelf. Replace bulbs as soon as they burn out and clean fixtures whenever the bulb is changed. Is my merchandise staying clean? As you research new assortments and merchandising strategies, don’t forget one of the most basic elements of good mer- chandising: it has to stay clean and orga- nized. Have an employee assigned to each department to check daily that every shelf and product is dusted and fronted. Remove damaged packaging and never let empty boxes or debris sit in the aisles.

Use the areas around the cash register and service counters for impulse items. Good examples are snack foods, batteries and dollar items such as key chains. Also consider seasonal items such as sun lotions and bug spray. Look for other areas around the store, too, where you can encourage impulse buys through the use of clip strips and floor displays. Am I rotating endcaps often? Some of the most valuable merchandising real estate in the entire store is on an endcap. Endcaps need to appear full, but not crowded. Balance their use throughout the store; use some to promote projects and use others for your promotional items. These are also great places to promote new products and seasonal items. Let your creativity reign here, too. Don’t be afraid to try an out-of-the-box idea that will grab customers’ attention. Most importantly, don’t let endcaps be an afterthought; instead, have a plan that keeps the endcaps changing every few weeks. Am I using a variety of displays? Special displays throughout the store are strong selling tools. Make sure you’re using a variety. Several years ago, the North

Clear signage and organized, full bins are key elements of a well-merchandised store.

24 Spring 2013 • Hardlines Strategies