What’s your strategy for the downturn?

Is it me or does it seem like there is a lot of bad news concerning retail swirling around? The negative sentiment in our industry right now is like a fire burning out of control. Those of us that work in the field know that motivating our teams is difficult during the best of times. How can managers and owners keep their people happy and motivated while an onslaught of bad news keeps coming? I’ve done some un-scientific research with clients and merchants to see what strategies they are using to keep the machine running.

Here are the top 5:

1. Keep the lines of communication open. Silence makes the loudest sounds when it comes to retail. If sales are soft, it’s time to communicate that. If hours are being cut for that reason, let’s justify it. They may not like it but at least they will understand. One of my savvier merchants (with my coaxing of course) communicated his strategy for coping with any potential downturns with his team. They were fully aware of the situation and what steps were being taken and more importantly, they understood their role in the plan. Keeping the lines open works both ways as well. You will see more input from your team when they feel comfortable communicating with you. That’s a big win for the merchant!

2. What’s your USP? Yesterday’s article talked a lot about what sets you apart from your competition (big box or not so big box). Merchants are now taking the time to define their Unique Selling Proposition and communicating that to their customers. “We’re different because….” is a great way to start developing your USP. When you define it, make sure you blast it out to the world so everyone knows why they should shop you an not the other guy.

3. What’s your localization strategy? You have to ask yourself if you truly cater to the local demands of your immediate selling area. Whatever category you sell in, there has to be local and cultural variants to what you sell. Does your community know you carry products they want? What inroads have you taken to increase exposure in the community? This is where local associates and organizations can help you. Get involved with the community and take a leadership role. The exposure you get will be priceless.

4. My mall clients can’t stress how important it is to partner up with your mall management. They are there for your benefit and have access to information and resources that you may not. Actively participate in mall campaigns and marketing initiatives. It’s in the mall’s best interest to keep you in business.

And the most important idea we came up with:

5. Keep your attitude in check. As an owner or manager, your attitude and mood is contagious. If you want happy people, you have to be happy yourself. I understand that we are facing a tough time and so do many of my clients but the bottom line is things work better when your morale is high, even in tough times. Reduced traffic simply means focusing more on each individual customer which can be very difficult if there is a solemn attitude in the store. Be happy, your staff will be happy, your P/L will be happy and you will happy all over again.

I would love to hear your strategies and ideas for coping with this downturn. Email them to doron@gocaptus.com or post a comment here. Here’s to a great season!