Dell Retail Business

After having depended largely on direct online marketing since 1990s, Dell’s personal computers (PCs) are now on sale in Wal-Mart stores in the US and Puerto Rico.

The company is also expected to add retail channels for PC sales in India, China, Australia and Japan. A new report by research and advisory firm Gartner states that the success of Dell’s indirect marketing initiative in India may prompt the company to adopt the strategy in other emerging markets.

The move (on which Dell India says it has nothing specific to share at this point) will enable the company to increase its reach beyond major cities and allow it to carve a niche in India’s burgeoning IT market. This makes sense, states the report, because it has long been evident that Dell’s growth in the emerging markets had hit a plateau. India, in particular, has not been responsive to the direct approach because of different cultural and business practices.

Diptarup Chakraborti, principal analyst, global IT research and advisory firm Gartner, told Business Standard: “India is one market where the company has been doing well, but beyond a point you cannot do much through direct marketing. They have to start penetrating deeper into other segments. Besides, India is the only market where sequentially (quarter-on-quarter), the company has been in the fourth or fifth position. But in most other markets, they are within the top three players. Besides, the gap between Dell and the other players is huge in India.” (see box)

Several factors have inhibited Dell India’s growth. Dell in India is a $500-million entity with enterprise sector largely contributing to the revenues. The consumer segment, however, remains largely out of the reach of the company.

One of the reasons is the poor internet penetration in the country, thus making online ordering difficult. Besides, competitors, unlike Dell, sell at retail outlets in more than 200 cities, offering customers the chance to experience and use the products prior to purchasing.

Gartner expects that the expansion of Dell’s partner base will enable the company to make headway in this area.

The company has already roped in experienced professionals to strengthen its indirect marketing initiative. Krishna Kumar from HP has joined Dell’s marketing team, while Pallab Talukdar has been appointed as director enterprise business.

The company is likely to roll out the plan for its channel strategy in a phased manner, starting with large metropolitan areas followed by smaller cities.

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How to Start a Retail Business

Owning your own store is a dream shared by many. Be one of the few that makes it come true with help from this thorough guide.

Editor’s note: This article was excerpted from our Retail Business start-up guide, available from SmallBizBooks.com.

The retail industry provides an exciting way of life for the more than 24 million people who earn their livelihood in this sector of the U.S. economy. Retailers provide the goods and services that you and I need--from food, auto parts, apparel, home furnishings, appliances and electronics to advice, home improvement and skilled labor.

Retailing is one of the fastest-growing segments of the economy. As one of the nation's largest employers, the retail industry provides excellent business opportunities for you. At least one-third of the 500,000 or so new enterprises launched each year are retail operations. The entrepreneurs behind these ventures risk their capital, invest their time and make a living by offering consumers something they need or want.

Most retailing involves buying merchandise or a service from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use. The price charged for the goods or services covers the retailer's expenses and includes a profit. Each year, this vital sector of our economy accounts for about 38 percent of our gross national product--more than $3 trillion.

The National Retail Federation says more than 1 million retailing companies operate more than 1.4 million retail establishments in the United States. Most are store retailers, though there are other types of enterprises--such as e-commerce, mail order, automatic-merchandising (vending) machines, direct retailing (door-to-door and home party sales), and service providers.

Types of Retailers

To give you an overview of the competitive marketplace, we'll take a look at the various faces and configurations of selling to the consumer. Keep in mind that all these enterprises began as a simple concept and grew to various proportions through popularity and perseverance. At this point in your exploration, anything is possible for you, too.

• Store retailing. The retail scene in America is a dazzling array of independent shops, department stores, discount and off-price enterprises, convenience stores, membership warehouse clubs, national and regional chains, category-killer stores, conventional supermarkets, and other large-scale enterprises that seem to dominate the retail sector.

Store retailers operate fixed point-of-sale locations designed to attract a high volume of walk-in customers. In general, stores have extensive merchandise displays and use mass-media advertising to attract customers. They typically sell merchandise to the general public for personal or household consumption, but some also serve business and institutional clients. These include establishments such as office supply stores, computer and software stores, building materials dealers, and plumbing and electrical supply stores.

• Specialty retailing. While power retailers like Wal-Mart or Target tend to sell "needs," specialty retailers tend to sell "wants." They focus more on neighborhood convenience, the richness of the shopping experience, and inventory that meets the needs of their target customer on a personalized basis. Small stores show surprising strength and resilience in the face of competition from large-scale retailers and e-commerce outlets. They offer the consumer a warmer atmosphere, and perhaps a broader and deeper selection of merchandise.

Many stores can be owned and operated by one person with minimal assistance. Compared to manufacturing operations, specialty retail outfits are relatively easy to start both financially and operationally. However, a number of failures are due to undercapitalization, poor location and insufficient market analysis.

• Nonstore retailing. When you look at the array of business opportunities in retailing, be sure and include the $123 billion nonstore retailing sector. These businesses are primarily engaged in the retail sale of products through television, electronic shopping, paper and electronic catalogs, door-to-door solicitation, in-home demonstration, portable stalls, vending machines, and mail order. With the exception of vending, these businesses do not ordinarily maintain stock for sale on the premises.

There are many advantages to this type of retailing--one being that buying, maintenance and protection of a large inventory is not necessary as you contract with others to handle these matters. The U.S. Census Bureau says there are more than 44,000 non-store retailers in the United States.

• Mail order. From glossy wish books to basic brochures, catalogs are popular with those who live far from shopping areas, the elderly, those seeking the unusual or obscure, and those who simply hate to shop. With direct mail, sales materials can be sent to thousands of potential customers at one time to either make a sale or generate a sales lead.

Mail order enterprises include general merchandise businesses, companies that sell specialty goods of all kinds, novelty firms, various types of clubs (CDs, DVDs, books) and so on. In most cases, catalogs are sent to consumers in defined niches on a regular basis. You can work out of your home, a warehouse or a brick-and-mortar store. An up-to-date mailing list is the key to direct-mail profits with back-end fulfillment and relational database support. If you think this is the retail area for you, read our extensive how-to on mail orderfor more information.

• The internet. The internet has changed the retail landscape, connecting companies, markets and individual consumers. "The retailer who does not understand the impact of the internet on its store and catalog channels is likely to under invest in the Internet, missing opportunities to capture incremental sales in all channels," according to Ken Cassar, a senior analyst with Jupiter Communications.

Regardless of the type of retail business you want to start, you cannot ignore the Internet. Don't let it discourage you, either. Each type of retailing has strengths and weaknesses, so you decide which approaches you want to use in your business.

• Vending machines. Automatic merchandising--or vending machine retailing--has been a proven business concept for more than a century. Vending Times, the industry's trade magazine, reports that snacks and soda sales alone totaled more than $20 billion in 1999. As with any other sales venture, having the right product in the right place at the right time is key. This business is highly appealing because of the low startup cost, low working capital and low overhead. This is a cash business, with you collecting the money when you replenish supplies.Is retail the right opportunity for you? Weighing several factors will help you answer that question. Personality, motivations, your strengths and weaknesses, money, and experience should be at the top of your checklist.

• Making a good career decision involves both self-assessment and market research. Begin the self-assessment process by examining your skills and identifying what kinds of products or services you can offer. What skills do you most enjoy using? If you are artistic, merchandising a store and designing advertising may appeal to you. Or you may be mechanically inclined, enjoy solving puzzles or helping people. Therefore an auto parts store, business consulting practice or birthing coach business may be for you. By tying your skills to your market's wants and needs, you greatly increase the likelihood that your new business will be successful.

  Personality

  Many people successfully make the transition from being an employee to an employer, but many do not. Do you have what it takes to be in business for yourself? Even if you are suited to be a business owner, is a consumer-focused business for you? Are you better suited to be a wholesaler, distributor or manufacturer? Answer the following five questions honestly. Talk to your spouse, best friend or prospective partner about your answers as a reality check.

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Disney's Retail Business Booms

Bell

The International Licensing Expo is underway in New York City, providing a perfect backdrop for Disney to announce the impressive results from its consumer products division.

Retail sales of licensed Disney merchandise is expected to break records and top $30 billion in global retail sales, up from $27 billion last year, and up from $13 billion just five years before that.

The big source of that impressive growth -- The Disney Princess franchise, which brings together and revives the classic princess characters, and newer brands like blow-out hit High School Musical. And now Disney's expanding on the success of the Princess franchise with a new Fairies franchise, and continuing to grow Pixar brands like "Cars" and "Toy Story." These brands make Disney the world's top licensor, according to the International Licensing Industry Merchandiser's Association.

And while Disney's licensing might first bring to mind the likes of kid-friendly brands Mickey Mouse and Winnie the Pooh, Disney's "tween" businesses are taking off. High School Musical and Hannah Montana brought in some $400 million in 2007 but this year are expected to bring in $2.7 billion this year. With more tween franchises in the works -- the Jonas Brothers' big TV movie, "Camp Rock," launches on June 20 -- this pipeline seems poised for even more growth.

Impressive that even during an economic downturn, this division-- the smallest of Disney's four divisions-- is powering ahead. DIS stock is up today on this news--at the time of this posting.

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RETAIL MADNESS : Why is it here?

First, you need a place to vent or tout your triumphs. We've all been there. First and Third person. Maybe you were the customer that "got served". Maybe you were the sales person dealing with the latest Bigger-Better Idiot. Maybe everything was unexpectedly wonderful. In short tell me about your extreme customer service experiences, both good and bad. If you like the site, tell your friends. If you hear a story that would be appropriate, please refer the persons involved to www.retailmadness.com. Please limit your submissions to those incidents to which you were a witness or participant.

Second, I need data for my book about customer service. It's important that the information be accurate and verifyable to the extent possible. That means at least an approximate time, location, business(es) involved. All names will be changed to protect the guilty, so go ahead and say your piece. If you want to be anonymous, you will be by default. If, on the other hand, you want your name in print, just add something in your post along the lines of "It's okay to print my name and city."

Thanks for your time and contribution... Check back for more unbelievable stories of the good, the bad and the ugly in customer service interaction.

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Microsoft yanks Money off retail shelves

It had become a ritual for Microsoft's consumer unit. Every year it came out with a new version of Microsoft Money and sent new boxes to retail stores.

That tradition is now dead.

Microsoft, via a newsgroup posting from one of its enthusiasts, announced it will no longer update Money each year and, more importantly, it will stop selling the product at retail stores.

It's the latest indication that Microsoft is seeing a shift in the way people, particularly consumers and small businesses, buy their software.

"More and more retail consumers are going online to shop the endless rows of digital shelves," Microsoft said, according to the newsgroup posting, which was noted earlier Friday by ZDNet blogger Mary Jo Foley. "In response to our retail partners' needs, consumer behavior and business efficiencies, Microsoft is focusing distribution efforts for Microsoft Money Plus software online via download and discontinuing traditional box sales of the software at retail."

Money is not the first consumer title to see its fortunes change in recent years. Another perennial shelf space occupant, Microsoft Digital Image Suite, was discontinued altogether last year.

However, Microsoft added in the posting that it is not abandoning packaged software companywide.

"Microsoft does not see shrink wrapped software going away anytime soon and we are always talking to customers about different ways to price and package our software offerings," it said in the posting. "The company is evolving its strategy and product solutions to meet customer demand and optimize business efficiencies."

Indeed, the company has seen very strong sales of the latest version of Office and its OneCare security software is also sold heavily at retail stores. The company just introduced Equipt, which is a subscription service combining the two, but sold as a packaged product at retail.

The company has been eyeing this shift for some time and looking at options like subscriptions, online services, and even advertising-funded software on the PC. After years of weighing the issue, the company went ahead with Microsoft Works SE, an ad-supported free version of its consumer productivity package.

Intuit, another big name in consumer software, has already seen a huge shift to both online sales as well as selling its personal and small business finance programs as online services, rather than packaged software.

The company already gets more money from its TurboTax online service than it does for the packaged product, with more than 10 million people doing their taxes online. The company also has 128,000 small business customers using its online services, according to spokeswoman Heather McLellan.

It has also debuted niche products that are online-only such as a medical account expense manager product.

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Business RI retail market remains optimistic despite hard times

Business, Despite some optimism and efforts from governments worldwide to address the global downturn, the overall economic situation remains marked by uncertainties, as property investors maintain a *wait and see' attitude.

In these tough economic conditions, higher competition and limited fund availability will impact on retailer expansion and put pressure on rental rates.

Data from the first quarter of 2009 shows that the occupancy rate for the rental retail market in Jakarta is 85 percent, a 3 percent decrease from the last quarter. This is due to a number of new retail malls entering the market, with many tenants in various stages of fitting-out.

In strata title retail centers, the take up rate is continuing to fall, a trend since 2006. The occupancy rate for this sector during the first quarter 2009 is around 63 percent.

By and large however, the retail market sector remains resilient, underpinned by Jakarta's huge population and consumer spending.

Whilst a large number of retail projects have been constructed in recent years, the potential for more is still there in particular for well-planned sub regional and community developments that cater to the everyday needs of the communities they serve, within the wider urban sprawl, offering many opportunities for savvy developers.

These developments must provide a hub, a meeting place for the community, provide the right products and services and suit the individual target market needs and aspirations, within a modern, bright, family friendly environment.

However, for any developer to succeed in this current market, they must be willing to meet the retailers' requirements for softer terms and negotiate packages to attract retailers to the development.

The downturn in consumer spending, the tight monetary policies on bank finance and lending is creating cash flow and liquidity issues contributing to effects on retailer expansion strategies. Therefore, a flexible approach to negotiating commercial terms is imperative to close deals.

There are several approaches to flexible terms that will maintain the capital value of the property, yet make it easier for retailers to commit to leasing space.

Despite the demand for softer terms, retailers are now clearer on the type of malls in which they will consider opening branches. More retailers are adopting a wait and see approach to opening new stores based on the success of the mall, its location, the quality of the tenant mix and the management team.

Supply is still expected to remain high for the next two years despite some delays anticipated in construction schedules of several projects, it is estimated that there will be around 290,000 m2 of retail space entering the market in 2009-2010.

However, as some retailers are closing unprofitable shops due to decreasing consumption patterns, and reviewing territories for expansion strategies, this will contribute to the slowdown in absorption.

Recent economic updates indicating positive sentiment, underpinned by a stronger rupiah, have created conducive economic conditions, driving a stronger retail consumption pattern that will support a return to growth by the end of 2010, so that Jakarta's retail property market will back on track.

Whilst retailers are generally wary of committing to any development, given the downturn in consumption, the government can also assist in strategies to improve retail spending within Indonesia and this can be done with tourism incentives, both domestic and international.

Jakarta is one of the best kept secrets in the retail market in Asia. The city has a wonderful array of amazing shopping venues and malls with many international brands offering a range of merchandise at much lower prices than other nearby countries within the region.

A "Shop Jakarta" brand should be developed and marketed internationally using this as a vehicle to promote tourism in other areas of Indonesia other than Bali.

Similar projects have been done in Hong Kong, Singapore and Kuala Lumpur respectively, with great success.

The international future retail trend is away from mega malls to one stop community shopping centers in suburban areas, where ease of shopping, parking, and community lifestyle options are paramount.

People are veering away from large impersonal malls looking for a friendly, green environment with an emphasis on outdoor food and beverage and lifestyle venues.

For Indonesia, especially Jakarta, the trend is still to develop large one stop shopping malls, however, the consumer is becoming more conscious of the lack of green space available in the city, and more pressured by the traffic congestion and pollution and their affect on health.

Savvy developers in the future will provide true green parkland and outdoor spaces within the mall environment to cater to the needs of young educated families, who want to combine shopping with an outdoor activity attraction suited to the whole family.

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Modern Trade

How do you define the term modern trade in the retail environment. supermarkets,hypermarkets do fall in this definition, the question is what are the defining characteristics to classify a shop as modern trade outlet.

In French 'la grande distribution' opposed to traditionnal small retail trade (I do not know if 'modern trade' has a specific meaning or not)

Usually the basic criteria is the size of the outlet:
- Hypermarkets are the biggest (over 2500 m2)
- Supermarkets come second
- Smaller shops come then, but are still part of 'grande distribution' (they might be called supérette in French, mini-markets)

But there is also another criteria, which is the organization of the shop:
- All these cited above are self service, and you pay at the cash counter at the exit of the outlet
- Other type of outlet is the department store, like Harrods in London or Le Printemps in Paris. There, you are attended by sales persons, and you pay in each department. This type of outlets were invented in the 19th century, and I guess they do not belong to 'modern trade'.

Finally, another criteria to classify outlets is the goods they sell. Hypermarkets usually sell everything (food and everything else), Supermarkets may be generalists or specialized (sports, books, etc...), and supérette are normally basically for food

The NEW OXFORD Dictionary
OF ENGLISH

hypermarket
noun chiefly Brit. a very large self-service store with a wide range of goods and a large car park, typically situated outside a town.
ORIGIN 1970s: translation of French hypermarché, from HYPER- beyond, exceeding+ marché ‘marke

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Repeat Business is Online Retail’s Core Customer Metric

In a study released recently by MarketLive, research confirms the importance of repeat business to online retailers. Many online (and off line) retailers focus strictly on acquiring new customers, often in the mistaken belief that volume is the name of the game.

This work indicates that it’s the size of the online basket that makes all the difference. New customers buy 10% less than existing customers, and are less engaged with the retailer and the buying process in general.

Not surprisingly, marketing budgets for online retailers reflect this disparity, with more than half being spent on acquisition, and only about 20% being spent on retention or loyalty.

Yet another reason why knowing what’s best to measure is more important than traditional marketing methods or metrics.

The NEW MarketLive Intelligent Marketing and Merchandising (IMM) Suite™ is an integrated set of segmentation, personalization, alerting, email, and search engine optimization technologies that attract the right customers and reach individual shoppers with relevant emails and offers. The IMM Suite, built for the MarketLive Intelligent Commerce Platform ,enables personalized merchandising from the first email touch, through the first transaction, and across all interactions with the customer throughout the relationship. The IMM Suite dramatically reduces the time and resources required to design and execute effective marketing campaigns. It provides a consistent consumer experience resulting in stronger brands, increased conversions, more revenue and customer loyalty.

The MarketLive IMM Suite combines best-of-breed personalization, email and on-site content technologies that are informed by MarketLive Intelligent Selling best practices. The Suite powers effective marketing and merchandising with fewer marketing resources and without special expertise. It allows merchants to rapidly shift from generic, "batch-and-blast" promotional efforts to high-ROI marketing campaigns.

One-to-One Recommendations
A powerful built-in personalization engine profiles shoppers, identifies their preferences, and tracks the products they want. Real-time recommendations present the most compelling choices, designed specifically for each shopper. Real-time alerts keep consumers in the know with their favorite styles, brands collections and information. Merchants maximize cross-sell and up-sell impact for increased conversion, average order value, and revenue.

Early pilots show meaningful results. One leading women¹s apparel and accessories retailer achieved:

• 66% improvement in click throughs from recommendation-based emails

• 350% increase in email conversion rates

• 26% increase in average order value

One-to-One Email
The IMM Suite leverages email to drive higher quality traffic to the site and increases repeat business from each shopper. The value of every email is increased through segmentation that is built on purchase and campaign response behaviors. Relevant messages are then delivered to each segment with personalized offers extended to each shopper within that segment. Additionally, analysis of recency, frequency and monetary purchase values help retailers uncover hidden customer groups that can be reached with appropriate messages and offers. By combining purchase history and click behavior, retailers can build profiles for each buyer that can be leveraged in future campaigns. Transactional, promotional, and loyalty-building emails are easily developed, automatically delivered, and analyzed for optimal campaign management.

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The Retail Misconception A White Paper

"Retail" has become a dirty word in the North American energy industry. The industry is rife with stories about the rise and fall of energy retailers in gas and electricity markets that have opened to retail competition.

We have heard the stories of startup affiliate retailers and new players entering competitive retail markets, taking on the

regulated utilities with false hopes and promises and, soon after, admitting defeat. Few of the 1997-1999 Era of new entrants in North America are surviving let alone prospering. Most have collapsed in debt or non-profitability, been sold off, or exited the market, sometimes defeated by the failure or closure of the market itself, as was the case in California.

By contrast, retailing is a respectable business and necessary tier of the distribution chain in other industries. And in other energy markets around the world, retail is similarly considered essential. So why has energy retailing developed a bad reputation in North America? The answer lies in the interpretation of the term "retail".

What Retail Really Means
According to the Energy Information Administration (EIA), a statistical agency of the U.S. Department of Energy, retail means "sales covering energy supplied for residential, commercial, and industrial end-use purposes." Retail, as the end-use sales part of the utility industry supply chain, is distinct from generation, transmission and distribution.

Retail is the customer touch point—the downstream part of the energy industry that sells the energy commodity directly to the end consumer. Unlike the corner stores, strip malls and Wal-Marts, which commonly characterize what we might think of as the "retail industry", the energy retailer does not need a store front to attract walk-by traffic. Instead, sales can be completed over the phone, online and by sending out a regular bill, all of which directly "touch" the end-consumer.

Defined in this way, as sales to end-use customers, retail clearly applies to traditional regulated energy markets as well as deregulated energy markets. It follows that the properly defined term "energy retailer" applies to all energy market structures—regulated, transitioning and competitive. Granted there are different retail rules for different markets, but all energy markets contain the retail function.

Regulated Utilities are Energy Retailers
As we look at U.S. energy markets and the progress of deregulation, we can identify two distinct forms of energy retailing—regulated retail and competitive retail. In a traditional regulated market the vertically integrated utility performs generation, transmission and distribution as well as retail functions. In its regulated retail role, the integrated utility signs up, services and bills energy consumers according to Regulated rules and tariffs. The misconception that regulated utilities are not energy retailers is exactly that—a misconception.

In transitional retail markets, such as the Pennsylvania, New York and Ontario electricity markets, not only are new market entrant "retailers" operating competitive retail businesses, but the regulated utilities maintain their regulated retail operations for the customers who haven’t switched to a competitive retail supplier. In these transitional market structures, regulated retail operates in parallel with competitive retail.

In contrast, in a fully competitive market such as the Texas electricity market, the historically vertically integrated utility is disaggregated (separated) into separate business units corresponding to the main components of the energy industry—generation, transmission, distribution and retail. The generation company produces the energy commodity; the transmission company transports the energy in bulk; the distribution company manages the wires, switches, and transformers that serve neighborhoods and businesses; the utility retailer is left to sell the commodity direct to the end consumer in a free market environment. The utility retailer plays by the same free market rules as new entrant retailers.

We refer to these previously regulated, now competitive utility retailers as "incumbent retailers". In the competitive Texas electricity retail market, for example, market share is dominated by three major incumbent retailers—TXU Energy, Reliant Energy Retail Services and AEP (through its subsidiaries AEP Central Power & Light and AEPWest Texas Utilities). The big three compete with one another alongside other smaller incumbents and new entrant retailers such as Green Mountain Energy and Republic Power.

In a fully competitive market, all retail participants, including both incumbents and new market entrants, are classified as competitive retailers. However, in some competitive retail energy markets, including the Texas electricity market, a regulated retail role does continue in the form of POLR (Provider of Last Resort). We see competitive retail businesses providing the supplementary POLR role to support social policy objectives for otherwise unwanted consumers as dictated by the market regulator.

So it would appear that "retail" is not such a dirty word after all. Energy retailing has existed since Thomas Edison established his utility business in the financial district of New York City in 1882, and exists today for 188 million U.S. electricity and gas consumers. It is just that much of the retail in the U.S. Today is regulated as opposed to competitive, and this has caused confusion in terminology.

Regulated Markets are Retail Markets
A related misconception in the North American energy industry is that all retail markets are competitive markets—one and the same. So often we hear people referring to"retailers" and "retail markets" when in actuality they mean "competitive retailers" and "competitive retail markets" which are subsets of the overall retail function.

The EIA defines a retail market as "a market in which electricity and other energy services are sold directly to the end-use customer." By this definition, every U.S. energy market includes retail, whether it is regulated, transitioning or competitive. This is not to be confused with the 26 retail gas markets and 23 retail electricity markets that have transitioned to some level of retail competition. The other 24 gas and 27 electricity markets in the U.S. are regulated retail markets.

Almost all other energy markets around the world use the broader definition of the term "retail energy market" to refer to the end tier of the energy distribution chain. In Australia, where New South Wales and Victoria have evolved toward competition and Queensland, Northern Territory, South Australia, Tasmania and Western Australia remain regulated, there is no talk of regulated utilities versus competitive retailers. All Australian energy companies billing the end-consumer consider themselves energy retailers in the retail energy business.

Leading Australian energy retailer Country Energy, which supplies gas and electricity to750,000 consumers in five Australian states, has always led with its retail mindset. John Adams, Group General Manager Retail, explains, "If you’re in the business of billing energy consumers then you’re in the business of energy retailing, it’s as simple as that. Energy retailing is about pushing the boundaries of excellent customer service and operational efficiencies, whatever market you’re in."

Xcel Energy in the United States shares this retail mindset regardless of the fact that 99 percent of its consumers are in regulated markets. Headquartered in Minneapolis, Minnesota, Xcel Energy is the nation’s fourth largest utility company serving both electricity and natural gas customers. The company has regulated retail operations in 11 western and mid-western states and competitive retail operations in Texas.

Patricia Vincent, president of Retail Services at Xcel Energy, is responsible for customer service, marketing and sales across the company’s regulated and competitive territories. Her title and role reflect Xcel Energy’s forward-thinking view on the retail business function.

She comments, "My focus is on retail services for 3.2 million electricity customers and 1.7 million natural gas customers in a wide range of markets. Our retail customers don’t think of themselves as being regulated or competitive, and we don’t pigeonhole them either. They want high quality service from their energy retailer and we are here to Provide that consistent level of service across all customers in all markets."

Common System Core
Business drivers will differ in regulated and competitive retail markets but the basic cash flow/revenue cycle is critical to both retail disciplines. A regulated retailer will be driven by regulatory service obligations within a defined supply territory, whereas a competitive retailer will focus on customer acquisition to Increase market share or customer retention to defend market share across many distribution areas. However, the billing/payment cycle is the cash flow lifeblood of any retail energy business, whether regulated or competitive.

The diagram below demonstrates that there is significant functional overlap between regulated and competitive retail businesses. The center overlap area of the diagram contains the critical business functions common to both types of retailers. This includes premise management, bill presentment and calculation, accounts receivable, account maintenance, Internet self-service and customer care.

These common business functions account for the majority of retail energy transactions, as well as manage the cash flow lifeblood of the business. Usage, interval usage, billing, accounts receivable and collections transactions occur ten to50 times more frequently than other periphery transactions such as customer signup or field service. This means that system scalability, robustness, usability and efficiency are at least ten times more important in these critical overlap areas.

Independent Energy learned this lesson the hard way. The high profile start-up retailer entered the competitive United Kingdom electricity market with strong public and government support, and it signed more than a hundred thousand customers in a relatively short period of time. However, when it came tactually billing their large volume of customers, Independent Energy experienced significant difficulty, resulting in poor cash flow and eventual bankruptcy in 2000.

Retailers are wise to concentrate on the core functional areas first and foremost when evaluating and selecting a new Customer Information System (CIS) for improved service performance and efficiencies. Further, attempting to bolt on pieces of functionality in these core areas is simply not feasible because of the high transaction volumes and associated risk. Togo the distance requires an advanced, reconciled system core.

Converging Functional Requirements
The functional overlap between regulated and competitive energy retailing is becoming more pronounced in today’s dynamic energy industry. These days the expectations of regulators, customers, and shareholders are changing and a new, forward looking regulated industry is swiftly emerging with intense emphasis on improved customer service, operational efficiencies and cost-savings—in other words, "competitive" best practices.

An emerging driver for adopting competitive best practices is performance-based regulatory (PBR) schemes, whereby regulated utilities can earn extra profits above the allowed rate of return, conditional on improvements in performance. At the same time, forward-thinking utilities are looking to replace their legacy systems to Reduce their risk or to prepare themselves for competition. As a result, the system needs of regulated retailers are becoming more aligned with their competitive counterparts.

On the other side of the equation, competitive retailers are becoming more intent on core functionality in an effort to realize further efficiencies in the areas that count most. This is because the early days of U.S. energy competition were dominated by small start-up retailers focused primarily on acquisition and enrolment to Increase market share. Today, there exist large-scale competitive retailers in North America, such as American Electric Power (AEP) and Direct Energy, which have more mature functional needs centered on robust and scaleable billing, customer care and accounts receivable and collections. In this respect, they have much in common with the traditional large-scale utility.

There are many signs of the convergence of regulated and competitive retail needs. Due to changed market conditions and client feedback, for example, META Group’s Energy Information Strategies for Unregulated Markets and Energy Information Strategies for Regulated Markets services were earlier this year consolidated to form a single Energy Information Strategies practice, which covers both regulated and competitive retail markets.

One System for All Markets
It is not uncommon in North America for energy industry executives to think in terms of a regulated CIS versus a competitive CIS. This stems from the misconception that regulated utilities are not retailers and therefore require a vastly different system to their competitive counterparts. In reality, an advanced competitive CIS with support for regulated functions can span all market types.

An example of this is Country Energy Central in New South Wales, Australia. New South Wales introduced a staggered timetable for electricity deregulation as early as 1995, starting with very large commercial and industrial customers and extending to all customers over a five-year period. During this time, Country Energy Central maintained a single competitive CIS for its 120,000 regulated and competitive customers. As each customer segment became competitive, Country Energy Central would simply switch between regulated tariffs and competitive rate plans within the same system.

While a competitive CIS can support regulated retailing, a legacy system built for traditional regulation cannot deal with the complexity of competitive retailing, no matter how many competitive functions are bolted-on. This is because the central focus of a regulated system—the assumption that the regulated energy retailer also controls the premises and meters in a defined franchise area—does not hold true for a competitive market. The customer is the asset and primary focus in a competitive market, requiring a customer-centric CIS that tracks customer details across multiple distribution areas and markets. The fact that an advanced competitive CIS can support regulated as well as competitive businesses is proof that new market entrants, incumbent retailers and traditional utilities have much in common.

They are all energy retailers selling the energy commodity directly to the end consumer. It makes sense that they will have similar system requirements in performing the retail function. We need to stop ourselves from thinking in polarized terms of regulated versus competitive markets, participants and systems, and start adopting a broader retail mindset focused on the business function at heart—energy retail.

The Peace Advantage
Peace Software is the world’s largest energy CIS software developer. The company’s browser-based Energy suite has been selected by regulated and competitive retail energy companies to drive efficient operations and provide excellent customer care for 13 million residential, commercial, and industrial customers in 40 markets around the world. The innovative Energy suite can be phased into existing CIS environments and new version upgrades are available every 12-18 months. Founded in 1984, Peace Software has offices in Australia, Canada, New Zealand, the United Kingdom, and the United States.

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Retail giant Wal-Mart opens in India

The world's number one retailer Wal-Mart opened its first sales venture in India on Saturday as part of an ambitious plan to establish a foothold in the country's vast consumer market.

The US discount chain has teamed up with Bharti Enterprises, parent of India's biggest mobile firm Bharti Airtel, in a wholesale joint venture to be called Best Price Modern Wholesale.

"We have put in a lot of planning and preparation over the past 12 months and are delighted all the hard work will now bear fruit as we open the doors of our first cash-and-carry store in India," said Wal-Mart India head Raj Jain.

The opening of Wal-Mart's first "big box" outlet in Amritsar city in the wheat-bowl northern state of Punjab, is a high-stakes one for the US retailer, which has been expanding internationally to grow its revenues.

"India is first of all a country with close to 1.2 billion people and a strongly growing economy which is driven by personal consumption," said Jain.

"There's a need to start out on a learning curve with the Indian consumer and this is the first significant step in that direction," he said.

The Best Price Modern Wholesale will offer 6,000 food and non-food items at "competitive wholesale prices," a Wal-Mart statement said.

Best Price will not be open to retail shoppers but will serve small stores, fruit and vegetable sellers, restaurants, hotels and other business outlets.

Under India's tight foreign investment rules, no overseas chains are permitted in the retail sector -- except for single-brand outlets such as Nokia or Reebok -- to protect local retail players.

Foreign groups such as Wal-Mart can only be wholesalers and must partner with domestic companies to enter the retail market, valued at 400 billion dollars and forecast to grow rapidly in the coming years.

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Retail Needs Bill Hodges (owner of Krispy Kreme)

When Bill Hodges opened his retail shop for Krispy Kreme, he sought accounting advice. Start-ups can be a nightmare. The forms,identification numbers, licenses, employment procedures...
There's more to accounting than adding up some numbers at year-end. For Breazeale, Kiser, Hoyle & Lawing, PA, this was a real treat. Hodges knew he wanted to take care of the dough in the oven, and wanted someone else to take care of the dough in the cash register. When he faced family health complications at home, the need for financial concerns was even more important.
Breazeale, Kiser, Hoyle & Lawing, PA handled every detail including payroll services, employment reports, federal and state reports, and the maze of forms including 940s, 941s, W-2s, 1099s.
Sound financial counsel from Breazeale, Kiser, Hoyle & Lawing, PA supports a variety of retail and professional business- day-to-day, month-to-month, or year-to-year.
Whether proprietorship, partnership, or corporation, business requires direction. For some it's every payroll, for others it's an annual audit.
Whatever accounting needs are required. Breazeale, Kiser, Hoyle & Lawing, PA makes sure you're left with a pleasant taste. A baker's dozen is great at the doughnut shop, but not in IRS offices.

"I was nervous enough about starting my own store. As I jumped in, I realized just how complicated the accounting reports could be. I knew right away that I didn't want to be involved in that area, and I definitely didn't have the background for a start-up business. I knew my products, and I wanted accountants who knew the financials, with a genuine interest in a new venture. Alan (Breazeale) and Bryson (Kiser) come over for a doughnut, but they don't cook; I go over to their offices for reports, but I don't do the arithmetic. That makes a good arrangement: we both look after the dough." -Bill Hodges, owner of Krispy Kreme, Hickory, NC

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All About Japan Retailing Model

The abundance of small stores in Japanese retailing is often considered to be an impediment to

imports of American and European products into Japan [US International Trade Commission
(1990)]. Small retailers would not only be more reluctant to sell foreign products than large stores [Batzer and Laumer (1989) and Montgomery (1991)], but also use their political power to prevent the establishment of large stores. Considerable political pressure from small retailers of the leading Liberal Democratic Party has led to the enactment of the Large Scale Retail Store Law [Kirby (1983), Kurebayashi (1991)]. This law favours small stores in three ways. First, the small
stores are allowed to have more flexible opening hours than the large stores. Second, the law only
allows for the establishment of a large-scale retail store with the prior consent of the small retailers
in the area. Third, the complex procedures to obtain the consent of the retailers delay the
establishment of the large-scale stores considerably, sometimes by 10 years .
The US Congress has been exercising strong political pressure on the
Japanese government to decrease the impediments to large-scale retail enterprises and in
particular to repeal this Large Scale Retail Store Law. This pressure resulted in an amendment of
the Law in 1990, which made the establishment procedures of large-scale stores less complicated
and less time consuming.
Small store sales shares in Japan are high. In 1988 these shares were ll%, 28% and 49% for
stores with 1-2, l-4 and l-9 employees (shopkeeper and working family members included),
respectively. This high share of smallness is reflected by the high number of stores per 1000
inhabitants: 13.6 in Japan and 3.5 in the United States for 1985 [Census of Commerce (1985) and
Ravesloot and Vogelesang (1989)]. The high small store presence can be attributed to a number of
factors, First, Japanese prefer fresh goods and usually have only very limited home storage
capacity and therefore greatly value nearby stores [Flath (1990)]. Second, many small stores offer
an important local function as neighbourhood meeting points [Bestor (1989)]. Third, in many
cases stores are established to generate income during retirement years or to supplement family
income. By screening out certain groups, in particular women, and by retiring workers early, large
firms create large pools of people having a high potential of starting their own firm [Caves and
Uekusa (1976), Patrick and Rohlen (1987)]. Fourth, small businesses are protected by laws
imposing obstacles to the establishment of large stores [Kirby (1983), Kurebayashi (1991)]. Small
retailers not only profit from the Large Scale Retail Store Law, but are also not obliged to
administrate their transactions. They pay less taxes, and do not have to collect the 3%
consumption tax. Fifth, small stores profit from low retailer reorder costs [Flath (1990)]. Japan has
a highly developed wholesaling network with relatively small distances between producers,
wholesalers and retailers. And sixth, the purpose of being in business is not always to generate
income, but often to protect claims on land and to maintain advantageous property tax
arrangements [Patrick and Rohlen (1987)].
The purpose of the present study is to explain the differences in the development of small store
presence across shop-types. A fixed effects multinomial logit market share model is used to
investigate the effects of shop-type characteristics (i.e. industry-specific variables) which may
enhance opportunities for large retail store market share expansion, like growing shares of the
shop-type in total consumer expenditures, growing inventory turnover, growing extent of
diversification, and high productivity differentials between small and large stores. Similar
determinants have been used in recent studies to explain the presence of small businesses in the
manufacturing industries [White (1982), Acs and Audretsch (1989a, b), Schwalbach (1989)]. Our
study, however, is the first to explain the presence of small firms in retailing, one of the major
service industries.

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Choose Location for Your Own Retail Bussinese

Location

• Where you at? Choosing your location is the most important step in making your dream of owning a retail store come true. What good is it if you have a great staff and awesome merchandise but no customers? You should choose a location that has a high traffic count. A new retail store isn't going to have a following unless it's a franchise with a well-known name, [so if you're independent,] you'll need all the help you can get. Ideally, you'll want to be next to non-competitive retail businesses that have steady clients; the overflow from these businesses will drive your walk-in traffic and bring in new business for you immediately. If you're looking into a new shopping plaza, you'll need to ask for the demographics of the area. This will ensure that you're not opening a high-end store in a low-end part of town. Be aware of your surroundings, and take your time choosing the perfect location. Don't choose a location just because it' close to your house.

• Big brother. Mall management has a job to do, and it's to make sure stores coming into the mall or those already in the mall are following all the guidelines and policies that pertain to each individual lease. But management should help new tenants become more familiar with the mall because malls are run by a strict set of rules, and breaking one of the rules can break your pocketbook. Opening late, for example, is prohibited and requires a monetary fine to be paid to the mall. Mall management teams are very professional, and it's best to have done your research before attempting a meeting or negotiating with leasing managers.

Merchandise

• Stocking your shelves. Selecting merchandise for your store can be the most time-consuming and expensive part of opening a business. This duty shouldn't be taken lightly! Before opening your store, you should visit wholesale marts to get an idea of the merchandise you'd like to carry. Decide what your mark-up will be and what's appropriate for your area. Choosing the merchandise can be fun, but remember to maintain a general theme and purpose for your products. Discuss ideas with other retailers at the mart, and ask the sales reps for their ideas and suggestions. You'll find most people are willing to help and discuss their experiences with certain products. This will help you decide and narrow down [your choices to] products that will do well in your store.

• Keeping a theme. I maintain a theme in my store by staying true to our name: Glamdora--It's a Girl Thing. Customers know what to expect when they come into our store: They expect to see merchandise for girls--not many stop in to see what we have for boys. Keeping with our tagline, we include merchandise for girls of all ages: nail files, gifts, room decor, shoes, accessories. They're all chosen for their colors and merchandised by theme. Our stores are hot pink and lime green with zebra and leopard accents. With that theme, I choose merchandise that appropriately fits my store. I choose the nail files in hot pink, gifts in bright colors, room decor in zebra or leopard, and so on. [Sticking] to your theme will help you build loyal customers and create a unique store in the process.

• Stay current and stay true. Don't think you know it all when it comes to trends. Keep up with local as well as national trends. You might see a particular look plastered all over the TV or in fashion magazines, but know your market. Will it sell in your store? Does it fit your theme? And don't attempt to sell anything that's way out of your normal buying budget just because it's trendy. The best thing to do is listen to your customers. Customers will always let you know what they're looking for, but only if you ask. Visit your nearest wholesale mart to preview upcoming trends and new products.

Hiring and Management

• Good kids. It's inevitable--you're going to have young people work for you. Hire a young person who has a desire to know more about your type of business. A person who's really interested in cars but wants to work in your clothing store might not be as suitable as someone who's attending classes in fashion design. When interviewing a young person, ask them about their interests and hobbies, and what they feel they can offer you as an employee. I like to ask what they feel is their best attribute.

• Second in command Check all management applicants' references, and require a resume. Advertise for a manager if your budget allows and only if you're prepared to offer competitive pay. A management candidate should have at least one year of management experience and two years of retail experience. Ask them numerous questions about software, cash handling and, most important, management skills pertaining to customer service and employees.

• Loss prevention. You can always expect theft--count on it and set your prices because of it. The only way to find out how much you're losing is to do inventory. I have a POS [point-of-service] system that's run from my PC and has real-time inventory. It doesn't have to be refreshed and can tell me right then what I have on hand. Keep your employees honest with cameras. If you're selling any small items that people are going to walk off with, keep them in secure cases. Make sure employees bring clear purses to work--or no purses at all. You always have to take precautions.

Drawing In--and Keeping--Customers

• Everything must go! Have a specific place for your sale items. Customers should be able to easily distinguish sale items from regular merchandise in the store. Placing your sales items towards the back of the store will force customers to walk by the regularly priced merchandise before coming across the sale items, thus increasing the probability for sales of regular merchandise. Clearly mark your sales prices on all your merchandise and on signs that will grab your customers' attention. Storefront signs will also increase traffic flow and let customers know there's a reason to stop in your store, and you might grab new customers who [want to] give you a try and see what you have on sale.

• Good as gold.Customer service is key to any successful business. Any smart business owner will tell you that customers are gold and should be treated as such. I always remind my employees that customers pay their checks and deserve their undivided attention at all times. Customer service isn't just telling a customer "hello"; it's also about helping them to their car with their packages and making sure they had a great experience while shopping in your store. Each customer should be treated the same and given equal attention whether they buy something or not. Treat your customers with respect, and always go the extra mile for them. Word of mouth is priceless--your best advertising can come from a happy customer. All it costs is your time.

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What’s a Return Customer? " Every One Can do this Bussines

Every business has customers or clients. Some of them never return to your doorstep again. The goal of this site is to help you retain those customers and turn each of them into a valuable “Return Customer.”

A return customer is so much more than a repeat customer. Returning requires an active decision and action on the part of an individual. Return customers will go out of their way to do business with you. Return customers will recommend you to friends and family. Return customers support your business and can provide valuable feedback.

Customer care has become one of the most important issues facing businesses in every market. Keep your customers satisfied and returning again and again with these tips for good customer service.

Be Consistent

Inconsistent customer care can have a negative effect on customer perceptions. Chain gas stations, for example, know customers should expect to receive the same standards of service no matter which outlet they are in, anywhere in the country. Nationwide consistency is essential when customers are likely to visit multiple outlets; one poor performance can threaten the customer's perception of the entire operation.

Meet Customer Requirements

Motivate your customers to return with a few

• Provide excellent personal service. The customer feels valued, listened to, and respected as an individual.
• Meet basic expectations when it comes to the quality of your product.
• Encourage customers to express their views and give feedback.
• Handle problems and complaints effectively.

Meet Staff Requirements

To keep customers happy, you have to have an energized, motivated staff that is on board with your company's overall customer-service philosophy. Provide your staff with the following:

• Supervisors with effective management styles
• A suitable working environment, including good pay and conditions and the right tools for the job
• Relevant training to develop skills
• Career potential, avoiding the feeling of being in a dead-end position
• Clarity of role/job description
• Performance standards and appraisal systems
• A sense of involvement/value
• Open communication
• Teamwork
• Rewards and recognition for a job well done

Meet Organizational Requirements

Organizations with a successful customer-care policy have the following:

• A mission statement
• Corporate structure
• Feedback and communication systems
• Profit
• Human and technical resources
• Demonstrated commitment

Deliver Excellence

To be outstanding, organizations must deliver excellence in both material and personal service. Customer service is no longer just a question of interpersonal skills. The difference between you and your competitors is achieved when expectations are exceeded. Doing the unexpected, going the extra mile, moves you from meeting expectations to exceeding expectations.

Be Enthusiastic

Enthusiasm is the driving force of quality service. Customers do not just want products, they want products plus enthusiasm.

Be the Best

Someone somewhere has to be the best at this job. Why not you? Decide to be outstanding, not ordinary. Use positive self-talk. Tell yourself, "Every day, in every way, I get better and better." And develop a “how can I do it better?” mindset.

Everyone Sell

In a successful company, the number of salespeople equals the number of employees. Even if your primary occupation is customer service, by providing excellent customer care, you are in effect keeping your customers and providing for future sales for your company. So in a sense, everyone sells something: products, services, or even the image of the company.

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Wal-Mart Stores, Inc the Great Retail

Wal-Mart Stores, Inc. is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue, according to the 2008 Fortune Global 500.^[4] Founded by Sam Walton in 1962, it was incorporated on October 31, 1969, and listed on the New York Stock Exchange in 1972. Wal-mart is the largest private employer in the U.S.^[5] and also the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business. It also owns and operates the North American company, Sam's Club.

Wal-Mart operates in Mexico as Walmex, in the UK as Asda, and in Japan as Seiyu. It has wholly owned operations in Argentina, Brazil, Canada, and Puerto Rico. Wal-Mart's investments outside North America have had mixed results: its operations in South America and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful^{[citation needed]}.

Wal-Mart has been criticized by some community groups, women's rights groups, grassroots organizations, and labor unions, specifically for its extensive foreign product sourcing, low rates of employee health insurance enrollment, resistance to union representation, alleged sexism, and management efforts to pressure employees to vote for specific parties during national elections. Conversely, others point out that Wal-Mart's rapid growth and logistical efficiency has enabled it to bring lower prices to consumers and more jobs and new small businesses to the communities in which it operates.

HISTORY

Sam Walton, a businessman from Arkansas, began his retail career when he started work on June 3, 1940, at a J.C. Penney store in Des Moines, Iowa where he remained for 18 months. In 1945, he met Butler Brothers, a regional retailer that owned a chain of variety stores called Ben Franklin and that offered him one in Newport, Arkansas.^[6]

Walton was extremely successful in running the store in Newport, far exceeding expectations. ^[7] However, when the lease came up for renewal, Walton could neither come to agreement on the existing store's lease renewal nor find a new location in Newport. Instead, he opened a new Ben Franklin franchise in Bentonville, Arkansas, but called it "Walton's Five and Dime." There, he achieved higher sales volume by marking up slightly less than most competitors.^[8]

On July 2, 1962, Walton opened the first Wal-Mart Discount City store located at 719 Walnut Ave. in Rogers, Arkansas. The building is now occupied by a hardware store and a pawn shop. Within five years, the company expanded to 24 stores across Arkansas and reached $12.6 million in sales.^[9] In 1968, it opened its first stores outside Arkansas, in Sikeston, Missouri and Claremore, Oklahoma.^[10]

Incorporation and growth

The company was incorporated as Wal-Mart Stores, Inc. on October 31, 1969. In 1970, it opened its home office and first distribution center in Bentonville, Arkansas. It had 38 stores operating with 1,500 employees and sales of $44.2 million. It began trading stock as a publicly held company on October 1, 1972, and was soon listed on the New York Stock Exchange. The first stock split occurred in May 1971 at a market price of $47. By this time, Wal-Mart was operating in five states: Arkansas, Kansas, Louisiana, Missouri, and Oklahoma; it entered Tennessee in 1973 and Kentucky and Mississippi in 1974. As it moved into Texas in 1975, there were 125 stores with 7,500 employees and total sales of $340.3 million.

In the 1980s, Wal-Mart continued to grow rapidly, and by its 25th anniversary in 1987 there were 1,198 stores with sales of $15.9 billion and 200,000 associates.^[10] This year also marked the completion of the company's satellite network, a $24 million investment linking all operating units of the company with its Bentonville office via two-way voice and data transmission and one-way video communication. At the time, it was the largest private satellite network, allowing the corporate office to track inventory and sales and to instantly communicate to stores.^[11] In 1988, Sam Walton stepped down as CEO and was replaced by David Glass.^[12] Walton remained as Chairman of the Board, and the company also rearranged other people in senior positions.

In 1988, the first Wal-Mart Supercenter opened in Washington, Missouri.^[13] Thanks to its superstores, it surpassed Toys "R" Us in toy sales in the late 1990s.^[14] The company also opened overseas stores, entering South America in 1995 with stores in Argentina and Brazil; and Europe in 1999, buying Asda in the UK for $10 billion.^[15]

In 1998, Wal-Mart introduced the "Neighborhood Market" concept with three stores in Arkansas.^[16] By 2005, estimates indicate that the company controlled about 20% of the retail grocery and consumables business.

In 2000, H. Lee Scott became President and CEO, and Wal-Mart's sales increased to $165 billion.^[18] In 2002, it was listed for the first time as America's largest corporation on the Fortune 500 list, with revenues of $219.8 billion and profits of $6.7 billion. It has remained there every year, except for 2006.

In 2005, Wal-Mart had $312.4 billion in sales, more than 6,200 facilities around the world—including 3,800 stores in the United States and 2,800 elsewhere, employing more than 1.6 million "associates" worldwide. Its U.S. presence grew so rapidly that only small pockets of the country remained further than 60 miles (100 km) from the nearest Wal-Mart.^[21]

As Wal-Mart grew rapidly into the world's largest corporation, many critics worried about the effect of its stores on local communities, particularly small towns with many "mom and pop" stores. There have been several studies on the economic impact of Wal-Mart on small towns and local businesses, jobs, and taxpayers. In one, Kenneth Stone, a Professor of Economics at Iowa State University, found that some small towns can lose almost half of their retail trade within ten years of a Wal-Mart store opening.^[22] However, in another study, he compared the changes to what small town shops had faced in the past — including the development of the railroads, the advent of the Sears Roebuck catalog, as well as the arrival of shopping malls — and concluded that shop owners who adapt to changes in the retail market can thrive after Wal-Mart arrives. A later study in collaboration with Mississippi State University showed that there are "both positive and negative impacts on existing stores in the area where the new supercenter locates."

In the aftermath of Hurricane Katrina in September 2005, Wal-Mart was able to use its logistical efficiency in organizing a rapid response to the disaster, donating $20 million in cash, 1,500 truckloads of free merchandise, food for 100,000 meals, as well as the promise of a job for every one of its displaced workers. An independent study by Steven Horwitz of St. Lawrence University found that Wal-Mart, Home Depot, and Lowe's, made use of their local knowledge about supply chains, infrastructure, decision makers and other resources to provide emergency supplies and reopen stores well before FEMA began its response.^[25] While the company was overall lauded for its quick response – amidst the criticisms of the Federal Emergency Management Agency – several critics were nonetheless quick to point out that there still remain issues with the company's labor relations issues.

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Motivation Little Story

I'm the One

You know me. I'm the one who never complains no matter what kind of service I get.

I guess I just don't think it's worth wasting my energy confronting bad service.

I'm the one who goes into a restaurant and sits for 30 minutes until I get waited on.

The waiter is rude and impatient while I'm deciding on what to order. Then when I get my order it's 25 minutes later and it's wrong.

But I don't complain as I pay my bill.

I'm the one who goes to a store to buy something, but I never throw my weight around.

If I get a snooty salesperson who rolls his/her eyes because I want to look at several things before I make up my mind, I'm still polite as can be.

I'm the one who bought a toaster which burned out in two weeks.

I hated taking it back, but I knew it was under warranty.

All the time they were telling me it was my fault.

At that point, I couldn't think of anything to do but leave.

It wasn't worth getting into a yelling match over a toaster.

I smiled and said, "Thank you. Goodbye."

I'm the one who wouldn't dream of making a scene in public as I've seen others do at times.

But I'll tell you what else I am

I'm the one who never comes back...

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Product Knowledge: Use it appropriately

I cannot stress enough the importance of product knowledge when it comes to making sales. Those who have learned everything they can about the products they sell have a distinct advantage over those who don’t. Given the option, customers would choose to talk to the person who knows the most about the product they are considering.

Good product knowledge will help even the most reserved sales associate. It gives them confidence knowing they have something of value to tell the customer.

Make no mistake about it, in the sales business you had better know your stuff.

Having said all that, I must also point out that overuse of product knowledge can be a very bad thing. How, you say?

I went to a specific store to purchase a specific product. As I entered I was greeted with a warm, welcoming smile and a very enthusiastic ‘hello’. The salesperson approached me and started to tell me about a current promotion. She did a great job letting me know how much she knew about the product. I was impressed with her presentation of the product and, of course, her knowledge of the ingredients and where they came from and how good the ingredients would be for my skin and, and, and.

The only problem is that the associate did not stop talking about the product long enough to find out what I needed or wanted. She did not find out why I was in the store in the first place.

Listening is more beneficial than talking, particularly because you need to figure out what your customer needs and/or wants. You will get your chance to dazzle the customer with your knowledge of the product only if you can keep the customer engaged long enough to start building rapport. Don’t blow it early by going on and on about a product that your customer may have no interest in whatsoever. To figure this out ask questions and listen carefully to what she is saying and then use your knowledge appropriately. Otherwise, it’s a waste of your time and theirs. Your time aside, customers of today do not feel warm and fuzzy about someone who wastes their time. Don’t be that someone.

Always remember that your objective in using product knowledge in the sales process is to procure an immediate or future sale, not to showcase your talents.

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Managing Sales Performance during Slow Times

During really busy times it is more difficult to get an accurate read on your associates’ performance. When customers are in a buying frenzy, and even desperate (think Christmas), it doesn’t always take a lot of skill and knowledge for an associate to make the sale.

When customers are not so plentiful and those who come into the store don’t necessarily have to buy anything, the skill of the sales associate becomes much more important to your business.

Here are a few pointers to help you manage sales performance in your store.

For evaluation purposes it will be necessary to prepare work schedules that give every associate an opportunity to work during premium shifts and during quiet shifts. This will ensure accurate comparisons of Sales per Hour between one associate and another. Obviously, you still need to ensure your top performers are scheduled when you need them, but for those you are unsure of, or for those who are average performers, you need to level the playing field by scheduling this way.

Carefully review each associate’s KPI’s (key performance indicators) for the past couple of months (the busier times). Look at past schedules to get an idea of which associates were performing well and which ones were not and see if there is any correlation to the scheduling.

Use the KPI’s of your top performing associate as a benchmark. Ranking all others compared to this individual will give you a place to start.

Be relentless in your follow up after every shift and/or day. Check all KPI’s for each associate. Make notes on your sales reports so you are able to recall your thoughts and conclusions when it comes time to speak with the associate.

Discuss performance at the beginning and end of every shift and/or day. Feedback and coaching is much more helpful when it is current.

When coaching for performance, be sure to mention the behaviors that you have observed and how those behaviors relate to the results – good or bad. Offer tips for changing unproductive behaviors and watch to see if the associate actually does change them.

Make sure product knowledge is available for associates to review. Have them read and then initial that they have read the material. Don’t accept any excuses for not staying current with product knowledge.

Ensure your management team members understand what is expected of them when they are in charge. Associates need to see consistency in the way they are managed. If what you are coaching them on is important, then the rest of the management team would find it important too, right? Associates must see this united front, or consistency.

A management team member must always be available to answer questions and generally assist associates in their efforts to ‘make their sales’.

If you have provided feedback, suggestions, coaching and a reasonable amount of time for improvement of sales performance and the associate is still not performing according to your requirements, you need to start an official performance management process.

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