newsletter sign-upJune 2010
Get Smart: Gather Competitive Intelligenceby Mike Tesler, Founder, Retail Concepts
To follow up on Mr. Capman’s excellent article last month, Get Fresh Ideas From Your Competition, I would like to expand upon the subject of competitive shopping. Let’s start with the word “competition”…it does not have four letters…it should not inspire paranoia, anger or palpitations. Some store owners and managers get nervous in the face of competition, and others are continually angry and “at war,” while still others are motivated and inspired by competitors. Some are totally transparent and willing to share information in contrast to others who circle the wagons and refuse to communicate.
Our school of philosophy at Retail Concepts urges us toward a single suggestion: grow up!
Stores exist for the public and are open to the public, and that includes competitors. Great retailers—which all retailers should aspire to be—are always in the marketplace and the marketplace includes ALL stores in your category.
For successful, passionate retailers, it is fun to get out and see not only what others are doing wrong, but also what they are doing right. Observing with an open mind will bring new merchandise and new marketing ideas with every excursion, plus will help you stay abreast of general market conditions, real estate activity, etc. Competitive shopping, however, should not be only restricted to your own potentially narrow category. It should include observation of all types of stores because knowing what is working and not working in other retail categories is also extremely beneficial. Store owners and managers should always project knowledge and authority in their stores, and the best way to acquire this knowledge is first-hand.
We also encourage communication with other store owners with the possible exception of the MOST-direct local competition. Open and honest sharing of information with what we call “neutral competitors” is one of the best methods available to retailers interested in staying on top of their businesses. Find retailers in other regions of the country with similar stores to yours and “court” them. Let them know what marketing ideas really worked for you and why. And tell them what brands and SKUs are selling. Chances are, they will return the favor.
Learn each other’s inventories. If some of your vendors make it too much of a hassle to special-order items, you can work out trades with your neutral competitors. You can even get your customers some items you do not even carry as a way to keep them in your store. Want a better credit card processor or bag resource? Well now you will have credible sources for recommendations.
We frequently hear the question: “How can I get out and in to other stores if I have to be here running my store 24/7?” First, that is not a valid whine (if such a thing as a valid whine* exists) since the best store owner/managers are those who can hire, train, motivate and empower great employees whom they can trust with their store. Secondly, that is not a valid whine because the Internet allows daily shopping of the world. Few stores do not have an online presence; many have quality websites that mirror their in-store experiences and allow you to instantly check their inventory and prices. Store owners should carve out the time to visit a new market area online each day and to check out the applicable stores. New things would be learned daily. Plus opportunities to approach and network with new “neutral competitors” can come from this process as well. The above “whiners” often respond with, “What if they don’t want to talk to me?” Our answer to that is, “So what?” What has been lost by the effort? And if it takes five calls to form a partnership with one of these neutral competitors, then it is well worth itIn most retail categories there are hundreds of market areas and many thousands of stores to explore--so, get to it!
