Doom and Gloom, or Sales Bloom?

While there might be an economic slowdown out in the world, you can keep one from taking place in your store.
Dec 3, 2007

By Doug Fleener

From the high cost of heating a home this winter to the housing slump to the expected anemic holiday season, it seems that it's one story after another about how tough things are and are going to be. I almost feel as though my daily newspaper should be renamed The Doom and Gloom Globe.

With this financial dark cloud hanging over us, the question arises as to whether retail owners, managers and salespeople should be worried about the future? Instead of "worried," I think the right word should be "concerned."

We should be concerned that the Doom and Gloom Globe, Post, Gazette, or whatever your local newspaper is called, doesn't create a failing mentality. In every economic downturn, there are retailers who actually increase both sales and market share. Earlier this week, I met someone who did just that.
 
After a speaking engagement in Northern California, I had the opportunity to visit with a woman who has owned a retail store in Sacramento for about 12 years now. After we talked about many of the things I mentioned earlier, the conversation turned to the current economic conditions. She told me the following story:

"I'm sure you remember the economic downturn in 2001. The dot-com bubble burst and was then followed by the tragic events of 9/11. It seemed that everyone I spoke to was struggling with sales, and of course, the paper was filled with news of how bad things were. We had been in business six years by then, and while I could afford a small downturn, I wasn't in a position to deal with anything worse.

The more I read and the more I listened to how bad business was, the more determined I was that it wasn't going to happen to me. So, one day I decided that while there might be an economic slowdown out in the world, there wasn't going to be one in my store. I just refused to let that happen. I knew that people weren't going to quit spending money. Instead, they might make different choices about where and with whom they would do so, and I was determined that they would spend it with us.

So, I created a recession-free store. I know that 2001 wasn't really a recession, but it was a bit more dramatic to call it that. We refused to let the recession and the negative thinking that came with it bring our business down. I actually increased my advertising and other marketing efforts. While other retailers were letting employees go, I hired more. I spent more time than I ever had in training and developing my staff. I even added some additional services.

The most important thing we did was keep the bad news and dark cloud out of the store. There was no recession in our store. When a customer walked in, we were upbeat and ready to make a sale. It never occurred to us they wouldn't buy something, because we determined they would make the decision to spend money with us. And that's what really worked for us. We kept the mindset that no matter what, people will spend money, and it was up to us to help them to decide to spend it with us."

As you can imagine, I was pretty pumped up after hearing her. Not only did she just tell me everything I needed to write my Daily (newsletter column), which always makes my day, but I knew she was right. When times get tough, it's an opportunity either to grow your business or be a victim of the economy.

As I started to head out to catch my flight, I turned to this woman and asked, "By the way, how'd you end up doing in 2001?"

"We finished 2001 up 38% and not too far off that in 2002," she said.

"You were up 38% with a 6-year-old store in an economic downturn?"

"Yes. Pretty amazing, huh?"

All I could think was, yes, that was amazing. She had made her sales bloom even amid all of the gloom and doom. So, can you create this same kind of increase this holiday season? That's hard to say and even harder to do.

What I do know is that that there are two kinds of people. Those who believe they're going to succeed and others who believe they won't. One group is going to have a good holiday regardless of what the paper and pundits say, and the other group will become part of that story.

Which will you be?




Doug Fleener is president and managing partner of Dynamic Experiences Group, a Lexington, Mass., retail consulting firm dedicated to helping retailers boost their sales and profits. A veteran retailer with more than 25 years of hands-on retail experience with world-class retailers including Bose Corp. and The Sharper Image, he also has owned and operated his own specialty stores. Fleener is the author of the book "The Profitable Retailer: 56 Surprisingly Simple and Effective Lessons to Boost Your Sales and Profits." Contact him at (781) 861-7803 or visit dynamicexperiencesgroup.com.

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