A few months ago in one of my shops we introduced a new product category, something we had never stocked before, something appealing to a demographic we have not pursued with our buying or visual merchandising.
So In the first 16 days of this month we have just clocked over $1,000 in revenue for this new category. This is on the back of a $5,000 investment in inventory.
We are forecasting 12 month revenue at between $20,000 and $20,000 allowing for a seasonal bump, while maintaining that $5,000 inventory investment.
We had no idea if this would work for us. The $5,000 was a gamble we were prepared to take. We thought and hoped it would work, but there was nothing in the store we could point to that would suggest it would work. As I noted, it was new for us.
I’m grateful it is working, that the gamble paid off.
Now that we are around 10 weeks in, we are seeing new shoppers in to shop the category. We know from comments that this is happening because of word of mouth.
What makes the success more enjoyable for us is that we are using a location in the shop that was not performing before.
The whole experience is the reminder of the value for local retailers of:
- Experimenting beyond what is traditional for your business.
- Letting your customers tell you what they will buy.
- Capping your spend.
- Tracking the results.
- Relishing every new customer you attract to your shop.
- Not letting your shingle define you.
We’ve not changed anything in the 10 weeks other than top up stock. The plan always was to let it sit for 3+ months before change. With the results as they are, we think only minimal change within the category is necessary.
Anyone can do what we’ve done. And, it’s not about the products we specifically chose. That’s up to you. My core message with this post is to actually try something different and see what the results are for you. Good or bad, you will gain valuable insights.
Decades ago, back when we were agents others made strategic decisions for our businesses. Today, strategy is yours to determine, and one of the most important is to pursuit of new shoppers for they are the lifeblood of local indie retail.