Retail Makeover

Phasing out the Canadian Penny

Posted by retailmakeover on January 31, 2013 0 Comments

A number of you have contacted my office concerned about the phasing out of the penny. The information I share with you is posted on the official Canadian Mint site.

In Economic Action Plan 2012, the Government announced it would phase out the penny from Canada's coinage system.  The decision to phase out the penny was due to its excessive and rising cost of production relative to face value, the increased accumulation of pennies by Canadians in their households, environmental considerations, and the significant handling costs the penny imposes on retailers, financial institutions and the economy in general.

The estimated savings for taxpayers from phasing out the penny is $11 million a year.
The cent will remain Canada's smallest unit for pricing goods and services.  This will have no impact on payments made by cheque or electronic transactions—only cash transactions will be affected.  Moreover, pennies can still be used in cash transactions indefinitely with businesses that choose to accept them.

Important Dates
To help consumers, businesses, charities and financial institutions to plan, a transition date of February 4, 2013 has been set after which the Royal Canadian Mint will no longer distribute pennies.

On this date, businesses will be encouraged to begin rounding cash transactions.

Rounding Guidelines
As pennies exit circulation, cash payments or transactions only will need to be rounded, either up or down, to the nearest five-cent increment.
The Government of Canada will be adopting a rounding guideline that has been used successfully by other countries for its cash transactions with the public.
Under this guideline, when pennies are not available, cash transactions will be rounded in a fair and transparent manner, as illustrated below:

When to round
Again, only cash transactions require rounding.  Cheques and transactions using electronic payments—debit, credit and payments cards—do not need to be rounded, because they can be settled electronically to the exact amount.

For any cash payment, only the final amount (or equivalently, the change owed) should be subject to rounding.  Individual items, as well as any duties, fees or taxes, should be tabulated in their exact amount prior to rounding, as illustrated:

*A tax rate of 5 per cent has been provided for the purposes of illustration.  Any taxes (e.g., the Goods and Services Tax/Harmonized Sales Tax), as well as any fees or duties, should be tabulated prior to rounding.

Best;

Barbara

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Seasonal Paint For Your Store

Posted by retailmakeover on January 21, 2013 0 Comments

Use paint in your store to set the tone for the season. It's a good thing!

Change your paint colour behind your cash each season.  It's a very quick way to refresh your store for  the upcoming season.

Here are before and after photos of Take A Hike in Thunderbay.

[caption id="attachment_3778" align="aligncenter" width="525"] Take A Hike - Before[/caption]

[caption id="attachment_3784" align="alignleft" width="285"] Take A Hike - After[/caption]

Trend colours 2013 - lots of beautiful greens to pick from:  2013 Paint Colour Trend for the Spring

 " Spring Up " your store…….  paint your back wall behind your cash and send me the before and after picture.

Best;

Barbara

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Casual Living Conference

Posted by retailmakeover on January 17, 2013 0 Comments

[button-green url="http://accentsandfurnishings.com/conferences/casuallivingconference/2013/" target="_self" position="left"] Reserve Now [/button-green]

Set your course and direction now for "Outer Spaces"—the theme of Casual Living's second annual casual conference—where you will explore the ever-expanding universe for the outdoor room. Come with us on this compelling voyage to seek out future opportunities in the casual industry, unearth the new-age connected consumers and their shopping habits, learn how to ignite the attention of different demographics, and discover the latest technologies and trends to boost your business. Our crew includes experts who will share their views and stellar strategies so you, too, can soar to new heights. Last year's event filled up quickly so don't wait too long. Reserve now and join us on this journey to examine casual's skyrocketing ride at retail.

[caption id="attachment_3757" align="aligncenter" width="510"] Barbara Crowhurst speaking at the casual Living Conference[/caption]

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Motivating Staff

Posted by retailmakeover on December 21, 2012 0 Comments

Employee motivation is probably the most important single manageable factor for success and profitability of all the facets of specialty store retailing.  It is to vital to be handled on a hit or miss basis, depending on the whim or spirit that stirs the store owner or manager from time to time.

To be effective, employee motivation must be promoted on a day-to-day, month-to-month basis.  It is a function that can and will pay enormous dividends.

There are almost as many effective ways of motivating employees as there are ways of enticing customers into your store.  Of course, there are also innumerable ways to "turn off" your associates and it is equally important to recognize these poor practices so they can be avoided.  A disgruntled salesperson is unlikely to present a shining countenance to a prospective customer.

Some store owners and/or managers prefer to drive rather than lead and this manifests itself in a tense and uneasy store atmosphere.  Fear destroys confidence as well as pride in one's place of employment; its effect on productivity is negative and destructive in the long run.

It is desirable for management to be highly enthusiastic, articulate and effervescent although each person comes across in a different way.  Sincerity, fairness and candor are essential.  True personal interest in your associates problems is valuable.

One of the very best ways to motivate is to consciously try to help bring out the very best in your staff and to do everything in your power to develop leadership talent and knowledge.  There is great satisfaction in being able to point to successful people and honestly claim that you contributed to that success.  This kind of interest comes through to all your people and enhances the image of your store.

Motivation and teaching are closely related.  They should start from the first day of employment. Discipline as well as rewards are part of the motivation program.  Both should be thoroughly and constantly explained to be effective.

Loyalty and pride are instilled by making people feel they are important to the business; that their opinions are sought and listened to; that they are respected as persons and treated accordingly and that they will share in the success of the business in the degree of their productivity and contribution.  This all comes under the umbrella of involvement.  Involving people to bring out the very best.

Another general area of motivation relates to competitions within the store.  These add spice and excitement to routine.  Contests can be planned for individual winners; team against team; store against other stores; or managers versus managers.  Efforts against quotas for individuals, departments or total store can be just as productive and exciting.  Contests can run for one day, one week, or as long as a month.  Variety is important.  Total sales, multiple items per sales transaction, selling older or higher priced goods, new or reactivated charge accounts, etc.

Money is generally the greatest motivator, but should be used wisely.  More isn't always better and how it is applied is very important.  A $20 bill being passed around all day to the salesperson who has written the sale with the highest number of different classifications or exceeded average sales figures.

In setting up any monetary reward plan it is necessary to establish criteria that relate to the area of responsibility of the individual.  It is a mistake to tie a salesperson's incentive compensation to gross margin since salespeople do not determine markup or markdowns.  Likewise, in a centrally controlled, multi-store environment a store manager should not have his bonus based on net profit because he cannot control many of the elements that determine that figure.

Plans must be tailored to each unique store and situation.  For selling staff, some retailers prefer commission plans, while others insist on salary only.  The repetitive presentation and constant application of principals on which each plan is based are of major significance.

Before trying to set up an incentive plan you must first decide by what standards you want to measure employees.  Observe employees on the job and compare the behavior of those who perform well with those who don't.  Define which areas would produce the highest profits if performance were improved.  The details of the specific plan or plans used must rest with  management and should be tailor-made to fit each situation and, in many cases, each individual.  Since every person within your organization is unique, what motivates one person may not motivate another.

The simpler the plan, the better.   However, simplicity itself cannot be given excessive consideration since it is necessary to cover every major measurable factor of a job. Ideally, incentive compensation plans should have no limit or cap on potential earnings.  The more a person earns for him or herself, the more the company will profit, provided the plan is soundly developed.  Thus, management should be proud and pleased to have a high earning team rather than ever feeling that its employees are overpaid.

For incentives to be effective it is imperative that the right kind of employees be hired. Not everyone responds positively to productivity incentives. For some people incentives translate to increased stress and poor performance.

Regular reviews during the year are important in stimulating effort. Everyone wants to know how they are doing.

Following are ideas for setting up compensation plans for different jobs within the retail store.

1.  Salesperson

Methods of compensation in retail  stores can vary all the way from straight salary to straight commission with countless variations in between.  The most commonly used are draw against commission or a base rate plus commission.

It is incumbent upon retailers to use the method or combination best suited to their particular business.

Many specialty  stores use salary plus commission of 1%, 2% or 3%.  This is simple to explain, understand and operate.  It is not as motivating as draw against commission or straight commission, but is popular, particularly for part-time or temporary help.  A variation would be to set a quota beyond which the incentive would be greater.

A draw-against-commission arrangement is common.  The draw should be sufficient for monthly living costs and can be increased as evidence of greater productivity is shown.  When draw-against-commission is used it is desirable to stretch the settlement period as long as possible so high and low sales months offset each other.  We normally recommend quarterly settlements with the quarters being December-February, March-May, June-August, and September-November.  When using a draw-against-commission we endorse the use of higher commission rates as the salesperson’s volume increases.  For example:

• 7% on sales up to $150,000
• 7 1/2% on sales up to $200,000
• 8% on sales up to $250,000, and so on

2.  Store Managers

In a centrally controlled operation there are three primary areas which store managers can effectively control; volume, selling costs and shrinkage.

For volume increases, a percentage of the sales increase over last year or plan is simple and stimulating.  The percentage to be used will depend on the store's situation.  Where there is a flat lease and no override a higher percentage can be afforded.  A relatively new store should produce high increases in early years so a smaller rate is in order.  On the contrary, large increases will be more difficult to achieve in a long-established store so a higher rate may be needed.

Bonuses for achieving savings in selling costs and for reducing shrinkage can be based on either goals or last year's figures or a combination of the two.

Most retail apparel stores are not large enough to warrant the luxury of a non-selling manager.  A manager who is sales-oriented can set the pace for others and is better equipped to teach others how to develop a personal following.

3. Buyers and/or Merchandise Managers

The responsibilities of buyers and merchandise managers rest primarily with gross margin, stock turn rate and volume so an incentive compensation plan should be based on these criteria.

The decision of whether or not to utilize incentive compensation is one that each retailer must make depending on the store's situation.   Once the decision is made to institute incentive compensation plans, they must be adapted to the store's unique situation and designed so as to result in an increase in sales and profits.  The installation of an effective incentive plan is the foundation of a successful motivational compensation program.  To optimize results the program requires regular nourishing and promotion and a yearly review to make sure it is still working as you want it to do.

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Retailers Dealing With Stress Before Christmas

Posted by retailmakeover on December 07, 2012 0 Comments

Barbara fix my stress Level at the store during the last few days before Christmas

Here's How:

Improve your time management and organization skills. Of the many things you can do in this area the best ones include having  a to do list that works( LInk to my to do list for sale ), learning to say "no", asking for help when you need it, and stop setting unrealistic goals for yourself.

Relax and breathe deeply. Whether you are feeling overwhelmed by the amount or work you have to do or if someone is "in your face", a good thing to do is to "breathe through your nose". You can't get as worked up if you force yourself to breathe through your nose. Your body simply can't maintain the same level of energy without that extra oxygen you get when breathing through your mouth.

Take more breaks from your work. Even a five-minute break will help. Get away from your desk. Go for a walk - outside is better, but up two flights of stairs and back down is good too. Getting more exercise in general will help you reduce your overall stress levels and that will make it easier to reduce your stress level at work.

Lighten up. Smile more. We all know laughter reduces stress. You will be amazed at how much more pleasant the people around you are when you make an effort to be pleasant yourself.

Learn to listen better. Rather than getting upset when others disagree with you, listen actively and find the areas of agreement. Be assertive and stand up for yourself, but don't be rigid.

Fix your environment. Make whatever adjustments you need to the lighting, temperature, noise level, and other controllable factors in your office and store.

Don't sweat the small stuff. Realize that there are some things that just aren't worth worrying about and there are some things you just can't change. Don't waste time stressing over the things in either category.

Get more sleep. This is another of the things you can do to reduce your overall stress that will have benefits at the store as well. In addition to reducing your stress, it will increase your energy level and your ability to concentrate.

Spend more time with optimistic people. Negative people will pull you down to their level. Choose to work with people who have a positive attitude instead.

Find a mentor. Having  mentor, or coach, to talk to can take a lot of stress off you.

Best;

Barbara

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8 Easy Ways to Reduce Customer Stress while Holiday Shopping

Posted by retailmakeover on December 03, 2012 0 Comments

An online survey, conducted by the Consumer Reports Research Center, asked 1,264 women what they find most stressful when shopping:

> 33% said checkout lines
> 29% said interacting with salespeople
> 24% said finding the best price
> 14% said finding the right product

That means 62 percent - almost two out of every three women surveyed - said they find basic customer service the most stressful aspect of shopping! As a store owner , you probably find these statistics as startling as I do. Customer satisfaction based on checkout lines and interactions with your salespeople is a direct reflection of your people  and store policies on customer service.

1. Keep employees out of the checkout area unless they are taking care of customers. I once overheard an employee explain why she wasn’t opening another register - even though she was standing in the checkout area. “We’re only supposed to help when there are more than three people waiting.”I was the third person in line and evidently it didn’t matter how long we may have been standing there; until someone else joined us, we were stuck. You can bet the person in front of me started grumbling about what that employee was getting paid to do.
2. If your employees aren’t checking out customers, they shouldn’t be in the checkout area. It only serves to frustrate customers  and get everyone wondering why this employee is just standing around. This goes for managers too. I’ve often wondered why some retail businesses have the manager’s office area at the front of the store near the checkout area. Is it so the manager can keep an eye on things while working on the computer? Or is it so the manager can more easily serve the customer and the employee?
3. Treat customers as the boss. It’s common sense to say that without customers you’d be out of business. Yet time and again I watch service-oriented companies treat their customers as an afterthought. They should be treated as the boss. Without customers there would be no reason to stock the shelves or get that display set up.I’m not saying that product and marketing aren’t important. They are. But, if customers are needlessly waiting in line while one of your employees is setting up that display, you have a problem. Believe me, those customers aren’t thinking, “wow, look at how hard that employee is working to finish that display.” They’re thinking, “When is that guy going to notice us and open another register.”
4. Acknowledge the customer who is waiting. We all want to be noticed. A smile and a sincere greeting, or “I’ll be with you in just a moment” to the person who has just joined the line goes a long way. Explain to your employees that as long as they don’t engage the second customer at the expense of the person in front of them, they have the opportunity to make both customers feel valued. And, if there was a wait, employees should acknowledge it by saying something like, “thanks for your patience.”
5. Encourage your employees to get help when they need help. I have seen employees so overwhelmed during a rush that they don’t take a moment to call for help. Let them know it’s okay and it’s  expected. Customers are forgiving when it comes to getting help. They’ll let you take a moment to call for help. At another time, it might be them waiting.
6. Require employees to develop a shining attitude. You read that right. I said, “require.” We all know that attitudes impact behaviors. When we have a bad mood it shows. It shows in our mannerisms, our expressions, our words, and our tone of voice. That is, unless, we make a decision to leave our bad mood at the door and choose to develop a shining attitude instead.The neat part is that while we’re developing a shining attitude, it becomes a shining attitude that affects our behaviors. Before you know it, our good mood shows. So, require your employees to: Smile and say hello, Give and maintain eye contact, Actively listen, and Stop non-customer tasks to focus on the customers. The funny thing about a shining attitude is that it is contagious. Develop your shining attitude and help your employees develop theirs. You will all enjoy work more. And, maybe, instead of feeling stressed, your customers will actually enjoy their shopping experience.
7. Lead by example. In what you say and in what you do. When you’re having a tough day, let it go so you can positively focus on your customers and your employees. When customers are waiting and getting impatient, jump in to help. Drop what you’re doing to lend a hand. Talk about how all your responsibilities and actions tie in to serving the customer. Make your customer interactions positive and solutions-oriented.If your employees see you put tasks before customers, they’ll do the same. Make customers a priority by treating them as a priority.
8. Support and encourage your team. Praise your employees. Praise them when their shining attitude shows through in customer-friendly behaviors. Praise them for the effort it takes to serve customers with a smile when they are having an off day. Praise them when they treat the customer like their boss and when they try to connect.Give your employees an opportunity to unload anything that may interfere with their ability to have a shining attitude. Perhaps a two-minute huddle at the start of a shift. Or pen and paper for complaints (to be torn up and thrown into the trash before walking onto the floor).
9. Have fun. We all spend too much time at work, not to enjoy it when we are there. Make it enjoyable. If your employees are having fun, their interactions with customers will easily be more positive. Happy employees mean happy customers.

Got to love it!

Best

Barbara

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5 Ways To Sell More This Holiday Season

Posted by retailmakeover on December 02, 2012 0 Comments

Black Friday, the day after American Thanksgiving, is the official opening of the holiday shopping season. U.S. big-box retailers open their doors before sunrise, as do many Canadian retailers, including Toronto's Eaton Centre, which opens at 6 a.m. for its first centre-wide Black Friday event.

"We have quite an extensive list of participating retailers and we're really excited about it," Meredith Vlitas, Eaton Centre's senior marketing director says. "A lot of our large retailers are in on it, as are The Bay and Sears, which have both been doing Black Friday for years."

Despite the deep discounts offered by big retailers, many consumers will choose independent retailers this holiday season, says Barbara Crowhurst, CEO of Toronto-based retail consultancy and business coaching firm Retailmakeover. "Independent retailers can provide a retail experience that customers will never find in a Target store," she says.

[button-green url="http://www.profitguide.com/industry-focus/retail/5-ways-to-sell-more-this-holiday-season-44001" target="_blank" position="left"] Read The whole article on Profit Guide[/button-green]

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Welcome from Barbara

Posted by retailmakeover on November 26, 2012 0 Comments

Welcome To The Retail Makeover Website:

We have the privilege each day to work in the field that we love Retail. Passionate about what we do with a focus to help businesses achieve the goals of their dreams. We create conditions for retailers to help them thrive and do their very best.

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