A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Facing Walmart … and big competitors

I was fortunate to see and hear Bill Simon, President and CEO of retail behemoth Walmart, deliver a keynote speech at the NRF Big Show 2013 in New York earlier this week.

While the majority of representatives in the 27,000 attending this conference were big business connected, small business numbers were significant. For Simon, almost every other retailer is small given the size of Walmart.

I found Simon’s presentation compelling. It made me question the time and energy we in small business spend worrying about, talking about and complaining about big business. Walmart is serving its shareholders. To do that it needs to make more money. The key ways it can do that is to get bigger, to buy better and to be more loved by shoppers. If we in small business want to grow we have to do the same things.

Simon announced some initiatives, initiatives we could announce. The size of is company got his announcements noticed. We in small business and in channels like newsagencies need to do a better job at getting noticed for good initiatives. This is our biggest challenge – getting known and trusted for the value we bring to our communities. What Simon announced was not all that great but it got excellent press the next day because it was an announcement from Walmart. We need to be perceived y journalists, editors and publishers to be as important.

Here are some unedited notes I took (with the wonderful Evernote on my iPad FYI) during the presentation:

There is a national paralysis waiting for someone to do something.  i.e. private sector waiting for the government to report on how many jobs the private sector has created.

Can we create a bigger pie, a bigger pie from which we can attract sales.  This starts with us reaching outside what we are in business.

Three initiatives from Walmart.

  1. Support good retail jobs. Stand up for the jobs. Bring structure to the role of the jobs. To create a reason, a strength and happiness.  This is where Tower can play a role and fit through our training program.
  2. Supporting US veterans.  Identifying that veterans can be a terrific group to tap into to drive country and business prosperity. Calls on retailers to hire veterans. Walmart offering a job to any honourably discharged veteran within a year of their discharge.
  3. Supporting American manufacturing.  Items made, sourced and grown in the US account for around two thirds of their products. Labour costs in Asia are rising, transport costs high. Tipping points indicate that bringing more jobs home can work.  Walmart to buy $50B more US products over next ten years.

Got all veterans in the room to stand. Loud applause.

The tyranny of average. Average is not good enough. Average is below average. We have to act with passion, excitement and convistion. We have to do good. This is what differentiates us. This is what differentiates success.

It’s not about big or small. It’s about having a vision for your business and pursuing this to success.

Committed to working hard every day to get better and be more successful. This is a big business versus small business lesson – big business is not standing still.

This was a compelling presentation with plenty of takeaways even for this small business person. The breakout was Simon’s passion for business and retail.

13 likes
Competition

Promotes weekly magazines to guys

Check out the placement of an impulse display unit featuring weekly magazines situated between two permanent magazine displays targeting guys. This is at a Hudson News at JFK airport this afternoon.

I’ve written of the value of this before, of placing a second display of magazines outside the usual placement for the titles. Seeing a corporate operator like Hudson News do it is good reinforcement of the practice.

4 likes
magazines

Brilliant chocolate party platter

If you love chocolate, a visit to New York is not complete without a visit to Li-Lac Chocolates. This is chocolate at its best. All made by them from chocolate bars to works of art like high heel shoes to the chocolate party platter in the photo. Indeed, it’s the party platter that interested me to most this visit as it put chocolate in a different light. Whereas I’d think of Li-Lac as a place to shop for a gift or guilt pleasure, here is an excellent packaged product for an office or a party, a product I’d never thought of before. Brilliant.

Another reason to love this business is their tag line, their USP, Stubbornly old fashioned since 1923.

They have remained relevant by creating new designs and adding new flavours.

I love chocolate.

6 likes
retail

Promoting special interests with passion

I love the passion in the text on this sign I saw on the street a couple of days ago. They are targeting people who like aquariums as a hobby and then pitch: Come on in, you’ll LOVE IT!.

Passion is important to special interest businesses. If builds trust for people who share the interest and with those open to considering taking it up.

In a city like New York with many businesses and extraordinary foot traffic, grabbing attention is a challenge. The key is to express yourself clearly and with volume. This sign does that for me.

2 likes
retail

Driving impulse purchases of cheese

Something else impressive about Whole Foods Market is their placement of products outside their usual location. In several of their stores I noticed these ice-packed dump-bins with cheese … next to fruit and next to vegetables. This is an excellent idea for driving impulse purchases, something we could do more of in our busy newsagencies.

Whole Foods don’t follow the Australian tradition of wide aisles and keeping products in designated areas.

2 likes
visual merchandising

I don’t eat peppers but I wanted to buy some

No, I don’t eat peppers but I sure felt like buying them when I saw this display when I visited a Whole Foods Market at Union Square in New York yesterday. From the power to the petter sign to the colourful display with is excellent visual merchandising.

Based on what I have seen this trip, this display is a Whole Foods Market standard for peppers.

Click on the image for a larger version.

5 likes
visual merchandising

Great retail employees make for a great retail experience

Getting good coffee in the US in a challenge. Just about every cup is a reminder that in Australia we are spoilt. Here, the dominant Starbucks model is more about the meeting place and how they can trick a coffee into something beyond the drink I love.

I heard Howard Schultz, CEO os Starbucks, speak at a conference on Monday. He was inspiring. he was also proud of the level of employee ownership of the company and that every employee has access to health care – vital in the US.

Howard Schultz’s speech got me looking at Starbucks in a different light.  While their coffee does not taste better, I now take more notice of what goes on inside the business and how their employees engage.

This morning, in a Starbucks on West 53rd and Broadway, I had my best Starbucks experience ever … all because of one employee who clearly loved what they were doing and loved making customers happy.

This young lady helped manage customer traffic – important to keep the wait down – and she had a good banter with shoppers.  Then, when a song came on their in-store radio, she sang at full voice and busted some dance b=moves behind the espresso machine.

Here is busy manhattan in one of thousands of cookie-cutter Starbucks outlets across the US, I got an authentic, engaged and enjoyable experience. This is the Starbucks I want to come back to. This is where I felt most welcome. The coffee didn’t matter.  This felt real.

Being a customer in a chain store can feel heartless. The employees can appear zombie like and the appreciation bland and meaningless. It’s tough serving in a mass market from a store that is one of thousands under the same shingle.

This morning in Starbucks, the lesson I got was that a great employee can make for a great experience and be key to building a great business.

Often newsagents complain to me about employees. We need to remember we hire them, manage them, motivate them, train them and fire them. We business owners determine how good our employees are.

Footnote: the screen in the photo is updates with each song played. It displays what you can see and other information through the song. Clever. Music is an important part of the Starbucks experience and has been for many years.

Second footnote: In 2008 I read How Starbucks Saved My Life – about a guy down on his lick and being picked up by Starbucks. I recommend it.

10 likes
retail

Creative extension of the supermarket model

More and more retailers are flipping their model and moving from a store designed to help shoppers move through quickly, purchase and leave to a model where the store is a destination for more than for what the store is traditionally known.

The photo (click on the image for a larger version) shows a bar inside the Whole Foods Market store I visited (and wrote about) on the Upper West Side of New York a couple of days ago. Yes, a bar in a supermarket. In fact, we had lunch there and a few drinks … in a supermarket.  From where we sat we could see people doing their shopping.  Indeed, some came into the supermarket operated bar for a drink mid shop.

The bar and the extraordinary range of many product categories in this store and the over full aisles – yes the store is not the traditional blocked and wide-aisle supermarket – make this a destination supermarket where you could happily spend hours exploring food, shopping , eating and socialising. This is not a supermarket how we think of them. The model has been flipped.

The Australian newsagency model has primarily been about convenience – location, ease of parking and fast shopping.  As more retailers have taken on what we offer, convenience is not as important.

This supermarket visit leaves me thinking more about destination opportunities for newsagents that could have shoppers staying longer, making speed of the shop less important.  I have written several times in the past about coffee (and some newsagents have run with this). I still think coffee, either take-out or as a destination, works for many newsagent situations. Equally, a cafe or some other food offer works. There are others too which I’ll explore another time.

In this post I wanted to note simply that in this supermarket I have got to see an excellent example of flipping the model and thereby making visiting the store more compelling for shoppers. We should not be bound by the tradition of our model.

10 likes
retail

Serving the destination shopper

Here is another photo from the Whole Foods Market store in New York that I mentioned yesterday. This photo (click on the image for a larger (tastier) version) shows one of the mushroom displays. I say one of as this is not their only range of mushrooms.

I love mushrooms and stood in front of this display in awe of the range they had on offer. If I lived within a reasonable distance I know I’d come to this store for their mushroom range alone.  Another shopper nearby commented to me … great range huh? I love their mushrooms.

Whole Foods is like that, I saw evidence of shoppers as evangelists for the business.  How valuable is that?!

To me, the display is a message about the value of specialisation. As I mentioned yesterday, the population in New York is quite different to areas we serve but we can cut out cloth accordingly. People will travel for a better range of products they love.

Retailers who represent passion for niche products and areas will benefit from loyalty from shoppers interested in these niche products, like mushrooms.

I love mushrooms.

6 likes
retail

The Guardian to enter the Australian marketplace

The Guardian has announced that they will launch an Australian website this year. This is a bold move likely to impact Fairfax more than News given the typical Guardian reader.

Katharine Viner, deputy editor of the Guardian, will be the launch editor of the Australian operation. Paul Chadwick, the outgoing director of editorial policies at the ABC, will become a non-executive director of the Guardian’s Australian entity. Graeme Wood, the entrepreneur founder of travel website ‘wotif’ and chair of the news and features website The Global Mail, will be a founding investor.

This announcement is more pain for Fairfax when the company is in the middle of significant restructuring. It will not be the last such announcement as more news brands reach into new marketplaces chasing revenue to stretch the cost of collecting and publishing news and other content.

5 likes
Media disruption

CES provides an insight into the newsagency of the future

The Consumer Electronics Show in Las Vegas last week was terrific. Beyond the gadgets and fun items, there was some very cool technology of relevance to retailers. Some new and some and extension of what I got to see last year.

For commercial reasons I am not going into my insights in detail here. However, I will note that what I saw at CES reinforced my view that we are facing continuing significant changes in retail.

How, when and where people purchase will change beyond what many of us imagine today.

New technologies will be embraced by shoppers wherewhere – city, country and rural. Retailers in shopping centres, on the high street and in rural and regional centres will be affected.

While I have been saying this for a while, seeing new hardware and software last week has reinforced it for me.  I plan to share more detail in the next Newsagency of the Future series.

3 likes
newsagency of the future

Terrific advertisement for newspapers

Check out the excellent TV commercial promoting The Guardian and The Observer newspapers in the UK.

How optimistic! It’s great to see a publisher promoting their newspaper in this way and, subtly, reinforcing what readers like about engaging with the print product.

Thanks to the colleague who pointed me to this.

5 likes
Newspapers

A new approach to displaying bananas

I was fortunate to get to a Whole Foods Market store on the Upper West Side of New york yesterday. I went having heard their CEO speak earlier in the day. I wanted to see if his pitch carried through to the shop floor. It did. Whole Foods is an excellent model, I took plenty fro  what they do … many ideas.

One such inspiring idea is how they display bananas. They hang them, as the photo shows.  This different approach to presenting merchandise plays out through the store. I can see how it would make shopping more enjoyable.

Not only do they hang their bananas, they have a wide range and provide excellent information with the range.

While the supermarket is drawing on a population much bigger than we see locally in Australia, there are many Whole Foods Market stores service Australian size populations.

Walking out of the store I was thinking that I had not expected to see a fresh (to me) approach to displaying bananas. Just goes to show innovation has no bounds.

4 likes
visual merchandising

Electronic cigarette vending extends reach

The reach of electronic cigarettes is increasing. They are mentioned now by airlines, including them in the list of what you cannot smoke in-flight. I am seeing them in more stores and I am seeing more people smoking them on the streets.

Also, I have seen the vending machine in the photo.

So, the reach is increasing. this means that retailers of tobacco product in Australia will need to consider their position on this type of product.  There are many businesses working hard to leverage the product from being niche to mainstream.

3 likes
Tobacco sales

Experts agree, Facebook not an ideal platform for retailers

In several sessions during the first day of the NRF Big Show 2013 in New York yesterday Facebook was discussed in terms of its value and usefulness for retailers.

I was interested in this in the context of what I wrote six weeks ago on this blog about Facebook.

Three experts noted that Facebook should not be considered a key marketing platform for many retailers.  They cited Facebook’s playing with feeds, their approach to advertising and that it does not fit a traditional call to action need. yes, I know of newsagents who are happy with Facebook. This is especially the case in regional and rural Australia.

For my newsagencies I don’t see Facebook as important as email and Twitter. Indeed, Twitter has been (and is) a gem for us.

What was interesting was the support for email. The experts cited the price model (free), the lack of attention competition within a message and ease of use. While they noted that email is not the ideal platform for the important millennial demographic, they pointed out that it is ideal for women 35 and over – the most valuable demo for newsagents today.

I’ve written here a bit about email and its use. I especially like what Pacific Magazines has done for so many of us with an excellent email sending platform as part of their Nexus program.

6 likes
Newsagency management

Fun Valentine’s Day products

Check out some of the fun Valentine’s Day products I saw in a store in New York yesterday. What you can see in the photo not even a quarter of the range in this store, a gift store , of around 200 square metres – to give you a reference and comparison point.

The store has a range of regular gists but it’s this mix of fun Valentine’s Day products I like. They really are fun products, products that open up giving opportunities for Valentine’s Day beyond the traditional. I like that, extending the reach of the season beyond the traditional. we need to do this with Valentine’s Day and more season.

3 likes
Newsagency opportunities

Selling newspaper subs in a department store

I was surprised to see subscriptions to the New York Times being sold from a table inside the Century 21 store on the Upper West Side of New York yesterday, Sunday. They were offering home delivery at 50% off plus free access to online content. That was no big deal.  No, it was the location, the pitch being made inside a department store.

I guess publishers need to go where they are likely to be able to win customers. I noticed several shoppers sign up in the few minutes I was watching.

3 likes
Newspapers

The name says it all, usually

Check out a store I saw on the Upper West Side of Manhattan yesterday.  There is nothing unique about Unique News & Smoke. Their name is a lie. The products are available from hundreds of stores here. The service was barely average.

I wondered is they used the name to, of itself, suggest they are unique but that doesn’t make sense. Who knows?

Seeing the shop was a reminder of the importance of trading under a name that makes sense and reasonable represents the business. It’s got to be a name that reinforces what the business is an offers. This business offered nothing unique.

 

3 likes
Newsagency management

The value of embracing fads in retail

I am grateful for the opportunity to spend a couple of weeks looking at retail situations in the US last week and this.  While I’ll write more about what I am seeing later, there are some things I have seen along the way that are terrific and worth sharing as I go.

I saw this range of moustache related products in a gift shop in New York and thought they are something I give a go.  In this shop their moustache range was twice as large as I captured in the photo. It looked impressive. But better than that, it brought a sense of fun to the products, pitching them at just about any customer for a broad variety of situations.

These moustache products are the type of products that could fit in a gift department where the focus is on fad type or funky gifts. We have this in a couple of my stores, hence my interest.

No, they are not for everyone, I am not suggesting this. I am also not suggesting that we can set out future on the success of these. The real point is that looking at products like this, beyond what is traditional for newsagents, is what we need to be doing.

1 likes
Gifts

Marketing tip: engage with your local chamber of commerce

One was to connect with other small business operators is through your local chamber of commerce. Whether as a regular member or a more active role, being known to and friendly with other local businesses can make them more aware of what you do and how you can help them … and them you.

For a few hours a month the reward from networking can be considerable.  I’d rate mixing with other local business people ahead of mixing with other newsagents for your business.

3 likes
marketing tip

Newsagent management tip: 5 tips for saving your time

  1. Tell suppliers who do not provide you with an electronic invoice that you will cut them off – they are costing you time.
  2. Put barcode labels on fewer products. If they have a barcode, use it. For magazines – your software will tell you what to return.
  3. Stop ordering replenishment stock manually.
  4. Stop entering sales data into a spreadsheet for analysis.
  5. Run your business with processes as well as checks and balances that enable it to open and close without you.
6 likes
Management tip

New survey: How was Christmas 2012 for you?

It’s been a couple of weeks since Christmas, enough time to think about the season and collate some data. I have put together a quick survey, just four questions, seeking your data on how the season was for you. To me the most important question is the last one – where you get to share your most significant learning from the season.  Please participate in the survey here.

4 likes
Newsagency management

Nice Valentine’s Day display

Check out the Valentine’s Day themed window display in a Sanrio store here in Las Vegas.  While it is specifically promoting Hello Kitty product (which is huge here) it could be promoting other plush.

Beyond being eye-catching, this display is terrific because of its simplicity. It’s something any of us could create in our newsagencies with the right product mix. The display is something anyone with only basic VM skills could put together.

1 likes
visual merchandising