Retail News South Africa

All I wanted for Christmas was...

Picture this: It's the run up to Christmas, customers are in your stores with money to spend, and what's more, if you give them great service, they'll spend more with you and recommend you to others. It's a virtuous circle and all you have to do is get the basics right. Should be easy - a total no-brainer. So why isn't it?

Well, most retailers have had it relatively easy of late because economics have provided a tail wind for consumer spending not seen before in this country and not even recent interest rate hikes seemed to have dampened the consumer spending spirit. They don't think they have to work for their money - and we, the customers, are too timid to stand up and call bad service when we experience it.

It's astonishing the experiential difference that's out there. The very worst - and we're talking about big boys - don't seem to know that helping customers through the store, displaying merchandise attractively, having enthusiastic and well-informed staff, getting prices correct on-shelf and just simply being in-stock and on-sale, matter hugely.

So on behalf of my fellow shoppers who don't have the time to tell you, here's what we should be getting from retailers in return for our patronage.

Display of merchandise

If the rod only takes 10 hangers, then only put 10 items on, not 15. Every time I touched the stuff, about half fell off (Edgars) and let me tell you that it's embarrassing enough fumbling through lingerie without having to scrabble on the floor picking up fallen thongs under the watchful gaze of other customers.

And because you have clumsy customers like me, you need to regularly re-merchandise the store - I arrived early but the shelves looked like vandals had attacked it during the night - and no-one seems to have touched it up since the previous day's trade. (Yes, I know I shouldn't have used the phrase "touched it up" directly after a lingerie reference.)

And while you're about it, PLEASE try and get your merchandisers to work on filling shelves when I am not shopping as there is not enough room for two of us in the aisle along with the boxes, pallets and hysters (Checkers Hyper Sandton and Makro Woodmead) And don't cram the aisles with so much merchandise that I cannot get past (Edgars Sandton), it really is annoying. I know I need to lose weight; you don't need to give me a complex over it.

Out of stocks

Here are a few scary numbers. According to food retail sales 2005 Out of Stocks worldwide cost food retailers US$ 28.2bn, a staggering amount of lost revenue. All existing studies show an out-of-stock rate of between 7 - 10 % and 46% of shoppers confronted with an out-of-stock item will not buy the item at all. Not later and not somewhere else, so you all lose. The highest day with out-of-stocks is the first day of a promotion; in fact when promotions are running is when out-of-stocks are the highest overall. Results show out-of-stocks as high as 17% on Day 1, levelling out to between 8 - 10 % over the next six days.

So, you spend all that time and effort planning, ordering and advertising in order to get me to buy from you and when I actually pitch up, you don't have it. Ask any shopper: this is really maddening. Studies in France and Netherlands show that there is an increase of 75% and 35% in out-of-stocks respectively from non-promotion to promotion. Come on guys, get your acts together. We want to buy things; that's your business. It's not rocket science.

Service, service, service

Welcome to Edgars Sandton, Friday, 22 December 2006 (three day countdown, now we are shopping like Lemmings!). I found myself standing in a store queue patiently waiting to pay. The customer ahead of me is dealt with in a couple of minutes so I happily present myself and my shopping for checkout. Only to be told he can't serve me (why not? he just served someone else!); I must go to another till.

I start queuing again and discover the retail truth of the equation: 4/4=1. Four available tills over four available members of staff at said tills equals one open/working till. Go figure. After seven long queuing minutes (because no staff can find a supervisor to check something and no one takes initiative to open more tills, despite the overt irritation and dissatisfaction of my fellow queuers), I finally get to pay - phew! Only to find, on exiting the store, the initial till I was turned away from is now open for business. Aaagh!!!

Next, we wanted a new portable phone and popped into Stax Dunkeld. The salesman was young, arrogant and didn't know a whole lot about the product. I bought a phone but more out of desperation and the lateness of the day. But, we won't be back in a hurry.

I work pretty hard for my money. So if I give you the opportunity to benefit from my spending, please, be nice to me. I want sales staff to speak with conviction about the products they sell. And with all this technological complexity - try focusing on "simplexity", ensuring you understand and communicate the complexity in a simple way. And do try smiling and helping thoughtfully, even if you are having a bad day. After all, it isn't my fault, and I am paying your salary and putting your kids through school.

Christmas stars

Want to feel the difference? Loads of Living in Sandton got it oh so right. Sibusiso and Thabo are sales super-heroes. Friendly, upbeat, product experts, willing to help, spent time with my three year old - (ok, that's a bit dodgy I know).

But here's a lesson to all sales people. It's tough shopping with kids who only want the toy sections and are often disappearing behind the multitude of racks you have in the store, which sends Mom's mental state into "my kid is missing, kidnapped, maybe it's a paedophile" mode.

Be proactive. If you want to get to Mom's heart (or more precisely, her purse), entertain and acknowledge her kids. Try giving her a two-minute break whilst she decides and I promise you she'll fill the trolley. She'll be so excited, she'll come again.

Anyway, Sibusiso, Thabo and the Loads of Living team understand this and deliver it in spades. A great shopping experience, well laid-out store, goods wanted in stock, professional staff, good till procedures -everyone happy!

And while we're talking of Christmas and stars, there's a third retail "prince", Bobby at Hirsch's in Fourways, an expert in technology goods who is always willing to explain the pros and cons of which model will deliver the best benefits.

So there you have it, Sibusio, Thabo and Bobby - three very wise men and real Christmas stars: We are not worthy!!

My next Christmas wish

Dear Santa, if I am a good boy this year, please can I have:

  • Shorter queues
  • More promotions
  • Fewer items out of stock
  • More happy and well-informed employees - available to assist and serve with excellence
  • Cleaner facilities - shelves, tills, restrooms, front entrance, change rooms

So if there are any retailers listening, here's the inside-track on your shoppers Christmas wish lists for 2008, which should give you a great idea for your New Year resolutions for 2008. If you get it right, we will shop with you more often, buy you more often and tell more people about you. You in turn will get higher revenues, higher profits, more market share, a higher share price, higher return on your options and ultimately you can shop more often for what you want.

And, best of all, you don't have to wait for Christmas.

About Nick Terry

Nick Terry is director of consulting at Glendinning Management Consultants. Email him on .
Let's do Biz