Another Christmas has passed and the beginning of a new year gives retailers a clean slate to review, refresh and restart in a positive manner which is important because the decisions you make now will be among the most important of the year ahead.
This is a great time to regroup and reflect on the year just gone, to make some changes, and even to lick some wounds if required.
Now is also the time to be putting some of those New Years' resolutions into effect. After all, it’s easy to make them, but not always so easy to put them into action. Here are some suggestions you should consider for improving success this year.
Delegate more
How much time is frittered away on tasks that could be handled easily by a junior staff member? To free up this time, and to start focusing on the things that matter, retailers must be prepared to delegate more of the menial task load to their staff.
Now, don't worry. Watch batteries will still get changed, and jewellery will still be polished. It's just that you will do none of this.
Contrary to popular opinion, it is possible to work less and earn more, but the focus must be on increasing profitability. That means focusing on staff development, product lines, marketing and any other areas of the business that don’t involve trading time for money.
Schedule personal time first
In order for sanity to prevail, retailers must put the activities that are most important at the top of the to-do list and then fit the remaining activities around them.
Need to plan next month's marketing? Schedule to do this first. Need to attend the gym every day? Then schedule this first.
Go through the yearly planner and allocate all those important items, whether they be work-related or personal. This includes things like booking holidays for the year ahead – everyone needs time to sharpen the axe.
Review all stock levels now, not later
Make a plan to reduce old stock and to work on this every month. Old stock is like grass – it just keeps growing – so it requires regular maintenance. Only an ongoing plan will work to rid the store of all those old-season items so put one in place right away.
Review all stock levels now, not later
Make a plan to reduce old stock and to work on this every month. Old stock is like grass – it just keeps growing – so it requires regular maintenance. Only an ongoing plan will work to rid the store of all those old-season items so put one in place right away.
Buy better
Prevention is always better than the cure. To help avoid building up old stock in the future, retailers must find ways to become better buyers. If your business isn't using POS inventory software, now is the time to take that step. There are some highly effective software packages now available that can highlight product that is proven to sell.
On top of this, be sure to reorder the store's best-selling items – customers are already telling you that they like these, so don't run out! When meeting with suppliers, talk about introducing an option to exchange unsold stock in the future. Most suppliers are more willing to agree to this at the time of purchase rather than when stock has become old.
Plan for profit
Any plan has to have a strategy. Just hoping that profit will increase will not make it so! Make a plan to determine what business areas require improvement and how this can be done.
Importantly, don't just stop at the steps above regarding stock, as there are many other areas that require attention also. Take pricing, for example. It's one thing to have the right stock, but another entirely to have the right margin on that stock. Businesses constantly give profit away needlessly by not setting the right prices.
There is plenty of information available regarding what margins are being achieved by other stores, so retailers can easily find out how their stores compare.
Assessing the store's marketing effectiveness is another way to unlock profit. The old strategy of throwing money at advertising in the hope that it will stick is over. Develop a database and concentrate efforts on key clients to get better results; invest in training for staff members; find out what stock categories need more help and get that help – is the store selling enough bridal, for example? Nothing changes if nothing changes.
Fix the problems
Is that troublesome staff member still there? No one likes dealing with