Is Retail Rebounding?

February 7th, 2010

very busy store

There appears to be evidence of retail rebounding all over.  However, the evidence is weak.  This recent report says shoppers are “tiptoeing back though they haven’t dramatically changed their shopping patterns.”  We quickly compiled some interesting statistics on retailing and the money in people’s pockets:

  • The International Council of Shopping Centers reported a 3% increase in retailer sales compared to January of 09.
  • Nordstrom reported a 14.0 percent increase in same-store sales for the four-week period ended January 30, 2010 compared with the four-week period ended January 31, 2009.
  • Unemployment rate dropped to 9.7% from 10%.
  • Personal savings rate is slightly up for Q4 2009.
  • Real disposable income rose .4% in December 2009.

All of the above seem to indicate the corner has turned on the economy and therefore the retail sector should follow suit.  Are you seeing an increase in the last two months?  Is this a glimmer of hope?

StoreCatch loves store owners! We're doing our part to keep brick and mortar retail strong by providing tools to get you noticed. Having a sale and need to get the word out? Need to create a coupon? Want to discuss retail? Lets Start Sale'n!

Lowering prices? Follow these 5 steps…

January 7th, 2010

Generic Chinese RestaurantThe other day, I met a friend for lunch at a local Chinese restaurant. The restaurant (based on appearances) was a cut above the typical tiny pad nestled amongst larger boxed retailers. Strangely, there was a banner draped on the storefront announcing: “we’ve lowered our prices”. I was curious to find out how this restaurant had executed their price lowering strategy. So, I went in to find out.  Once we were seated,we went through the typical menu-order-eat-pay cycle.

Some of the things I noticed at this restaurant caused me to write this blog entry.  Here is how they implemented price lowering:

  • As already mentioned, a loosely draped banner was hung over the storefront
  • Throughout the menu, almost every menu item had a piece of tape placed over the old price and a new price handwritten in
  • A couple of handwritten signs were taped in the interior

They implemented price lowering all wrong.  They should have followed the below 5 steps.

Read the rest of this entry »

StoreCatch loves store owners! We're doing our part to keep brick and mortar retail strong by providing tools to get you noticed. Having a sale and need to get the word out? Need to create a coupon? Want to discuss retail? Lets Start Sale'n!

Brick and Mortar Retail Dead?

December 20th, 2009

crowd going shopping

crowd happily shopping

I came across an article the other day predicting brick and mortar retail will die in the next 5 years.  Wow!  We at StoreCatch certainly don’t think that is the case, but there are some interesting trends to pay attention to.

Trend One – People increasing look to the internet to learn about and compare products

According to internet retailer, 50% of broadband users say the internet influenced a recent purchase.  When you look around, how many people do you know that consume beyond the basic necessities yet don’t have a broadband connection to the internet?  I would guess not many, and the number is dwindling rapidly.  Follow me here – lets say you need a new winter coat.  How will your search begin?  If you are like me, you will pull up your trusty browser, go to a search engine and type in ‘winter coat’. You will find two or three that look good and attempt to find them locally. Once found, you go try them on and eventually buy. Researching products online are now a way of life. Read the rest of this entry »

StoreCatch loves store owners! We're doing our part to keep brick and mortar retail strong by providing tools to get you noticed. Having a sale and need to get the word out? Need to create a coupon? Want to discuss retail? Lets Start Sale'n!

What is In-N-Out Burger Doing Right?

December 8th, 2009

in-n-out logoA new In-N-Out burger recently opened near me to much fanfare. The store opening caused traffic jams all day. Radio stations touted the opening and the ensuing swell of excited customers.

While this is mildly exciting for our neck of the woods, I can’t help but wonder, what is the big deal? Don’t these guys just sell burgers? In fact, I often hear questions from friends and family ‘what is so great about them?’.  I decided I would try and find what they are doing right.  Talk about a crowded market space – McDonalds, Burger King, Carl’s Jr, A&W and various local competitors!  They seem to be competing strong with much more established players.

Bias disclosure: I should mention any biases I may be subject to before I continue… 1. I like burgers, I probably eat one every 7-10 days. 2. I have been to In-N-Out in the past, one in San Diego, one in Las Vegas and one in St. George. All were ok experiences, not memorable. 3. I seem to have a general favorable impression about them, I am not entirely sure when or how that got generated.

So, I decided to trek down to the new In-N-Out in Draper, Utah.  My intent was to pay attention to everything and see if I could pull out what makes In-N-Out highly successful.

The Scene

in-n-out-lineUpon arrival, on a Saturday evening,  I was greeted with a line out the door.  Parking nearby had been hard to find.  The line moved fairly quickly.  As you have no doubt heard, In-N-Out’s menu is quite lean.  You have a choice of 3 combo meals.  No kids meals.  You can choose to have a shake instead of a drink.  You may also customize the burger (vegetables and condiments).

The decor is cohesive – red and white and sparse.  It reminds you of a 50’s diner.  The employee uniforms reinforce the diner theme.  All are dressed in red and white and have on exactly the same hats, shirts, pants and aprons.   Besides the menu, and exits, there is a sole sign which reads “Quality you can taste”.

The Experience

Once the food was ordered, we were forced to stand to wait for our food.  All seats were taken.  I mean every single sittable area was occupied.  We waited at least 10 minutes for our order.  I rarely wait that long for ‘fast’ food.  Then, it came time to find a seat.  As you can imagine, with such demand for seating, it was cutthroat.   We were vultures circling for vacancy.  My wife ended up sitting next to a stranger to ‘claim’ the rest of their table once they were done.

The restaurant was quite clean.  Incredibly clean considering the traffic flying through it.  It appeared there were two employees whose sole job it was to clean.  Tables were cleaned the moment people got up to leave. Read the rest of this entry »

StoreCatch loves store owners! We're doing our part to keep brick and mortar retail strong by providing tools to get you noticed. Having a sale and need to get the word out? Need to create a coupon? Want to discuss retail? Lets Start Sale'n!

Hello Retailers!

December 4th, 2009

Welcome to the blog for retailers. We at StoreCatch love local retail and want to help promote and enliven it. Visit this blog often to find musings about retail and the small business landscape.   Of course, when you are ready, check out what we have to offer at StoreCatch.

StoreCatch loves store owners! We're doing our part to keep brick and mortar retail strong by providing tools to get you noticed. Having a sale and need to get the word out? Need to create a coupon? Want to discuss retail? Lets Start Sale'n!