As a part of our commitment to Spa Industry Education, LSC welcomes you to our first Webinar

1
Retail 101 for the New Normal with Charles
Compton

• As a part of our commitment to Spa Industry
  Education, LSC welcomes you to our first Webinar

Proudly Sponsored by Kerstin Florian
International
2
Retail 101 for the new normal

• How you can run a service driven successful Spa
  retail in a new economy

3
Retail 101 for the new normal

• Fad or Trend?
• Will recessionary shopping behavior continue?

4
Retail 101 for the new normal

• Impact of Recession
• On Consumer Behavior
• (This will include both short
• and long-term changes.)

5
Retail 101 for the new normal

• LIFESTYLE CHANGES - FADS OR TRENDS?
• Most Lifestyle Adjustments
• Are Expected to Be Relatively Short-term these
  are generally fads. Normal behavior will return
  in time.

6
LIFESTYLE CHANGES - FADS OR TRENDS?

• Fads - normal behavior will return when economy
  picks up
• consumers saying that they are
• Entertaining at Home 43
• Reduced Buying of Luxury Goods 56
• Buying Previously Used Products 69
• Vacationing Close to Home 72
• Buying Fewer New Clothes 73
• Eating Out Less at Restaurants 73
• Source Retail-Next Study August 2009

7
LIFESTYLE CHANGES - FADS OR TRENDS?

• Some Lifestyle Changes Will Be More long term
• These are fundamental trends that are not
  primarily driven by the recession, but by other
  factors.
• Staying Connected With Social Media 83
• Buying Fuel Efficient Autos 90
• Children Living at Home Longer 72
• Retail-Next Study August 2009

8
LIFESTYLE CHANGES - FADS OR TRENDS?

• Many Changes in Shopping Patterns Are Just
  Temporary Adjustments
• These are short-term changes likely to revert to
  normal in time.
• Reduced Personal Services (e.g. Salon Visits) 64
• Less Overall Time Spent on Shopping 66
• Focus on One-Stop Shopping Formats 53
• Fewer Shopping Trips 43
• Buying Home vs. Professional Treatments 37

9
LIFESTYLE CHANGES - FADS OR TRENDS?

• Many Shopping Changes Are Fundamental to the New
  Consumer These changes are more permanent and
  would have occurred in the absence of recession.
  
• Buying More Products Online 94
• Buying More Sustainable Products 85
• Shopping Around for Price Comparisons 83
• Buying Products That Are Locally Grown or Made
  78
• Buying Medical Services at Retail 67
• Shifting to Discount Store Formats 61

10
LIFESTYLE CHANGES - FADS OR TRENDS?

• The Recession Has Accelerated Some Changes in
  Shopping Behavior These are fundamental trends
  that were in play prior to the recession, but
  were driven faster by it.
• Employing Loyalty Cards for Discounts 83
• Buying Store Brand or Private Label 74
• Pre-Planning With Shopping Lists 60
• Looking at Store Circulars 59
• Using More Coupons or Rebates 59
• Buying in Bulk/ Stocking Up 56

11
LIFESTYLE CHANGES - FADS OR TRENDS?

• Consumers May Choose Experience Over Value If
  They Recognize the Difference. Spas need to
  develop and leverage experience or they risk
  competing only on value.
• Shoppers Choosing Experience...
• Beauty Care 46
• Apparel 56

12
The Current State of Retail

• 80 of Retailers are feeling the pinch of low
  consumer confidence and are engaging in any
  strategy that seems to drive sales. Most of this
  activity is related to discounting pricing and
  managing inventory to lower levels. Operating in
  a reactive mode is not the way to drive
  successful financial performance and delivery
  high levels of guest satisfaction

13
Tools to Win

• How do you avoid chaotic fire fighting to the
  calm of operating in the zone of customer
  profitability, merchandising excellence and
  operational efficiency?

14
Take Inventory-It's not simply that "If you don't
measure it, you can't manage it" you've got to
measure it right

• Take an Inventory of your retail practices
• 1- Know the key metrics
• 2- Have a monthly dashboard
• 3- Designated Retail leader
• 4- Systematic re-order process
• 5- Vendor matrix

15
Take Inventory

• Take an Inventory of your retail practices
• 6- Skin care performance
• 7- What makes money?
• 8- Merchandising floor plan
• 9- Sales training
• 10- Marketing and promotion

16
Manage on 3 Levels

• 1- Action
• 2- People
• 3- Information
• Businesses often try to maintain the status quo,
  reflexively defending your brand is wasted
  energy Seth Godin

17
Manage on 3 Levels

• 1- Action
• Take immediate action that signals change to your
  team and your guests

18
Action

• A- take steps to reduce inventory over 6 months
  old
• B- Identify missed opportunities by merchandise
  category
• C - Order new products on test basis
• D - Prioritize layout and display of new products

19
Manage on 3 levels

• 2- People
• Build Team, motivate ,enhance culture and train
  to be more effective
• A- Sales training and product knowledge
• B- Teach to additional sell and cross sell
• C- Surprise them

20
Manage on 3 Levels

• 3- Information
• Know the Key Retail Metrics and have a monthly
  review of the dashboard
• 1- Revenue
• 2- COGS
• 3- Sales by staff member
• 4- Average Transaction

21
Retail leadership

• Who Owns the retail process in your Spa?
• Designate key retail person responsible for
• 1- Monthly inventory of key products
• 2- Systematic Re-orders
• 3- Manage the selection of new vendors

22
Skin care performance

• Staff sales relative to service ratios

23
What makes money?

• Know your 80/20?

24
Merchandise and Display

• Use an expert

25
Sales Training

• Measure your teams performance
• Motivate by commissions, contest and incentives
• Contests that encourage competition make the most
  of friendly competition but control by having
  various size prizes that encourage pride in
  performance and reward effort as well as results

26
30 Things to do now for 10 Increase in retail

• 1- Determine top 20 sellers and set model/par
  stock at 3 months supply
• 2- Put on sale any non-basic merchandise over 6
  months old.
• 3- Start a 60-90 day markdown cycle
• 4-Re-merchandise retail area (see 1)
• 5- Know the Zones and merchandise to them
• 6- Change the store every day
• 7- Assign housekeeping duties
• 8- Get on the web
• 9- Set Realistic Sales Goals-Create a Team
• 10- Get involved in the community

27
30 Things to do now for 10 Increase in retail

• 11- Use bounce backs/always use dollars
• 12- Add Value
• 13- Get your suppliers to help you
• 14- The sale begins at the end
• 15- Sharpen your competitive edge through service
• 16- Save time for your busy customers
• 17- Handle complaints fast
• 18- Increase special ordering opportunities
• 19- Package and merchandise things together
• 20- Use voice mail

28
30 Things to do now for 10 Increase in retail

• 21- Select lead retail person/supervisor
• 22 -Signing program
• 23 -Re-orders- have a system
• 24 -Start a staff sales incentive or contest
• 25 -Product knowledge training weekly
• 26 - Start and use client database-email
  marketing
• 27- Recognize Frequent Buyers
• 28- Always use the customers name
• 29- Post your sales
• 30- Examine your systems- are they customer
  friendly?

29
Marketing and promotion

• - GWP
• - Follow-up
• - Loyalty program
• - Gift Cards and Coupons

30
Questions and Feedback
31
For more information contact

• Charles Compton
• Mars Solutions
• Charles_at_marssolutions.com