Brands Who Cannot Control In-Store Merchandising Look to Retail Merchandising Services to Boost Brand Sales

At a recent Retail Industry Council event a major topic of conversation was the future of retail and what impacts e-commerce will have on bricks and mortar retail locations. While e-commerce is resulting in major changes to the way we shop in some types of retail, such as electronic stores, book stores, music stores and more, the food industry at retail is unique. 

When you are shopping for food, you want to be able to touch and feel the produce you are buying, feel the texture of baked goods, and thoroughly inspect your meats. These are reasons that many consumers will continue to want to physically go to the grocery store to purchase their foods. While there have been grocery services around for years that enable you to buy online and have the food delivered to your door, they haven’t managed to make an impact whatsoever in the way people buy food. 

This is why the in-store experience that a customer receives continues to be so important to the success of brands that sell their products at food retailers. It is also a major reason why brands must ensure that they maintain some level of control over in-store merchandising.

Leaving in-store merchandising to the retailer is a dangerous plan because the consequences to the brand can be significant.

Consumers are creatures of habit, especially in the retail food industry. Once a consumer gets hooked on a brand they will often add it to their grocery list to be purchased week after week. When a consumer visits a store and suddenly the brand that they love is not available because it is not on the shelf or has been moved and they can't find it, many consumers will try another brand that sells the same product. If they love the product, the original brand could lose their customer’s loyalty altogether.

A brand’s success at a retailer depends on its sales. Brands that sell more will be able to negotiate better product placement and priority, so it is crucial that brands that are not dominating their market space at a particular retailer hike up their socks.

Many brands are turning to merchandising services to boost their sales at retail. Merchandising services take the control of in-store merchandising away from the retailer and empower the brand to have more control over their customers’ experiences, which then results in increased sales. Merchandising services will go to all of the retailers where the brand’s products are sold and ensure that products are stocked and on the shelves and also ensure that if there is a product placement issue that the brand is made aware of it immediately, rather than finding out when seeing that sales have dropped at a particular retailer. Merchandising companies also assume the role of setting up in-store displays and literally become the brand’s ambassador at retail.

Brand’s that want more control over their in-store merchandising are best served by looking to retail merchandising services  to ensure that customers are always able to access them, and to ensure consistent profitability across the retail stores where their products are sold.

For more information about how you can take more control of your in-store merchandising and our merchandising services, please contact Storesupport by calling 1 (877) 421-5081 or visit www.storesupport.ca.

Labour as an asset, not an expense

Written by Nancy Kwon

Published in Canadian Grocer

June 20, 2012

What do QuickTrip convenience stores, Mercadona, Trader Joe’s, and Costco all have in common?

If you guessed lowest prices, you’re only half correct.

Not only do these retailers have the lowest prices, but they also invest heavily in store employees, which in turn results in better customer service than their competitors.

In an article in Time, Zeynep Ton, a professor of operations management at MIT’s Sloan School of Management, says that her research has shown that by underinvesting in their employees, retailers are actually making their operations much more inefficient, and less profitable.

With globalization, companies have moved good paying manufacturing jobs overseas, leaving low-wage, low-skill service jobs in retail outlets that don’t offer many benefits.

But Prof. Ton says in her research on low-cost retailers who spent more on labour and still competed on price showed that there are more efficiencies that result with a highly trained, and motiviated employees.

Ton’s research showed that in a typical supermarket that carries nearly 39,000 products, runs 100 promotions a week, and serves 2,500 customers a day, store employees must constantly shift inventory from storage into the right shelves to meet demand.

She writes: “In my field visits, I consistently found that with so many products, promotions, and storage areas, a task that ought to be simple–such as shelving toothpaste–is not. Such a surprisingly complex operation requires something uniquely human: judgment. Poorly paid, poorly trained, and poorly motivated employees have to monitor which products have sold, decide what to keep on the selling floor and what to move to and from backrooms, and remember which backrooms contain which items.”

She adds that the best information technology in the world can’t help you if your products aren’t where they’re supposed to be and your employees can’t find those products; you’ll only lose a lot of sales.

Simply put, Ton’s research showed that cutting labour costs would only help short term.

Here’s how some retailers are doing things differently and succeeding, according to the Time article:

Full-time employees at Trader Joe’s earn $40,000 to $60,000 a year, while Costco promotes from within (98 per cent of store managers being promoted from within); QuickTrip meanwhile has a huge “floater” staff to allow employees to take more vacation and sick time; and Spanish supermarket Mercadona employees are cross trained so that everyone can do a variety of tasks.

Not surprisingly, Ton’s study showed that turnover in these companies is much lower than the industry average.

And with the growth of e-commerce, investing in human resources is more important for brick-and-mortar retailers.

At a time when consumers can buy anything, anytime online, the key differentiator for grocers could be about the people again.

Retail Merchandising Services Are Crucial to a Brand’s Success at Retail – We Take a Look at 3 Challenges Brands Can Overcome at Retail

Retailers have incredible power over a brand’s in-store performance, especially as it relates to retail merchandising. The experience that a customer has with a brand at a particular retailer directly impacts how they feel about the brand and their future buying patterns. There is a real double edge sword at retail because a brand’s sales will determine (with bigger retailers) how a brand is prioritized and, at the same time, the actions of a retailer can directly interfere with a brand’s sales.

Larger retailers will establish policies that will determine how they will prioritize your brand and where they put your merchandise based on your product sales, which presents its own challenges. Meanwhile, smaller retailers are less organized this way but may make business decisions like cutting back on staff that can result in other challenges as it relates to retail merchandising.

Poor retail merchandising can have devastating impacts for new and smaller local brands who sometimes find themselves struggling to compete. For a brand to ensure that it is successful it must take control of its in-store presence. Brands cannot expect retailers to provide retail merchandising services, and brands simply cannot rely on the employees of retailers to set the stage for a positive customer experience. Retail merchandising services become important because the decisions that a retailer makes may result in your product not selling, and since you can’t count on retailers to provide them you must ensure that you have a plan in place to deal with retail merchandising.

The three most common issues that we see brands encounter at retail that can be solved through retail merchandising services, and that occur when brands are not in control of their presence at retail, include:

Sometimes retailers will arbitrarily move a product unbeknownst to the brand. For example, when a customer visits a grocery store, they know exactly where to look for the products that they like to purchase every week. When a customer cannot find a product where they are used to seeing it, they may choose to purchase a product offered by a competing brand. Also, depending on where the product has been moved, new customers may not find the product and when a brand does not have a measure in place to stay on top of this, they may not realize that there is a problem until they see it in their bottom line.

Retailers, especially those who take cost cutting measures to save money by laying off staff, will sometimes be lax when re-stocking products on the shelf. The product may be available in back stock rooms but because staff are busy, spread thin and working for the retailer and not the brand, re-stocking your product may not be a top priority. The result is that loyal customers and new potential customers alike will have no choice but to purchase a similar product from a competing brand.

Retailers decide where they place your merchandise to begin with. Brands may have less control with big box stores as far as where their product is placed, but do have some leverage with smaller retailers like grocery stores. When a brand’s product goes into the store it is important that the brand is engaged in the product placement process to ensure that the product isn’t placed in a section that isn’t the most ideal for the brand. For example, should parmesan cheese be placed with the cheeses or in the section where pasta noodles and sauces are? The same is true for visual marketing displays. Where a retailer chooses to place your visual display will directly impact how much exposure it gets.

Working with merchandising companies who offer retail merchandising services is an investment worth making and a brand’s best measure to ensure that those problems we have outlined in this article don’t occur. A small investment in your presence at retail will mean the difference between becoming a top seller and falling flat.

For more information about retail merchandising and retail merchandising services please contact Storesupport at 1 (877) 421-5081 or visit www.storesupport.ca.

Brand Loyalty Services Thwarts Social Media Impacts to Brand Loyalty

The social media boom has had major impacts to brand loyalty at retail. If anything, brands that have been able to properly leverage this very popular marketing medium have been able to improve brand loyalty. 

The Financial Times recently released an article, “Can Your Brand Win With Social Media,” which speaks to social media as being one of the most important global developments in media, marketing and technology today.

Through social media consumers can “like” a brand’s page on a social site like Facebook or Twitter, and scan a QR codes on in-store displays or on signage on the highway to receive discounts on merchandise. Brands can benefit from positive feedback made on their social sites by happy customers which can open them up to their social networks with an endorsement.

While the positives far outweigh the negatives, social media does have its “negatives,” and brands must address the negatives in order to ensure continued brand loyalty. Just as a consumer can take to a brand’s social media presence, or their own, to share positive experiences, they can also do so to complain about a bad experience. This is very damaging to brand loyalty because not only could the brand lose the customer who had the bad experience but also the brand loyalty of many in their social network. At the JVS Strictly Business event last year the key note speaker was Jordan Banks, Managing Director of Facebook for Canada. One interesting point made at the event was the stat that a consumer is 4 times more likely to buy from a brand that one of their friends or family members “likes”.

Another major challenge for retailers and brands alike is the emerging trend that CNN has tagged as “Showrooming”. This is where a consumer visits a retailer, sees and takes photos of products that they like, and then return home to try to find them online for less.

Social media and smart phones have also changed consumer buying psychology because of the speed at which they can get information or find what they need. If your brand’s products are not available, out of stock or difficult to find, consumers often do not have the patience they used to. They will simply select another similar product offered by a different brand.

The only way that brands can thwart the negative impacts that social media have on brand loyalty is to go above and beyond the call of duty to deliver a customer experience that exceeds their customers' expectations every time.

For this to happen, a brand must be on top of what happens with their products at the retail level and making an investment in brand loyalty services is a start.

There is no guarantee that every consumer is going to like your product, that is a different issue altogether, but you can take steps to guarantee that the customer receives top notch services and support when they look to purchase your product at retail. Your product must be accessible and available to consumers where they expect to find it and when they need it.

For more information about our brand loyalty services please contact Storesupport at 1 (877) 421-5081 or visit www.storesupport.ca.

NEW Canada mixer brings opportunity to network

By Nancy Kwon

Published in Canadian Grocer

June 19, 2012

On Monday, the Network of Executive Women Canada (NEW) organized a summer mixer at Mondello Ristorante in Mississauga, Ont., which brought out a strong contingent of the retail and consumer goods products professionals.

Amid the relaxed atmosphere, the some 70 female industry executives shared experiences and got to know one another better.

More than a year after its formation, the organization’s mission is anchored around three pillars: dialogue, inclusion and a catalyst for development.

NEW isn’t entirely, however. It was launched in the U.S. a decade ago, where it now has 15 chapters and 3,000 members. The Canadian office is the first outside of America.

A fall event is in the works.

Julie Ihamaki, Canadian Grocer; Dana Childerhouse, Nielsen; Vanessa Peters, Canadian Grocer





Kara Parkinson, Nestle; Debi Bowins, Moore Packaging

The NEW mixer gathered professionals from both CPG and retailer businesses

Dorina Vendramin, Kraft; Alannah Virtanen, Nielsen

Clara Shevalier and Sara Clarkson, Store Support

Janet Mangat, Pivotal Solutions; Ming Yapp, Walmart

Amy Umrysh, Sarah O'Regan of SC Johnson

Nicki Balfour, GlaxoSmithKline; Paula Brar, Walmart;Jennifer Mitrovich, Kimberly-Clark

Mystery Shopper Jobs Play an Important Role at Retail and are Plentiful

Mystery shopping (also known as secret shopping) is the method by which a store or a company evaluates its employees’ performance and customers’ experience. A mystery shopper will visit a retail outlet pretending to be a customer. The mystery shopper will interact with employees to assess their customer service and sales abilities.  

Mystery shoppers can be deployed by brands, retailers or companies who offer supporting services to brands and retailers. A mystery shopper will report his or her results, which will reveal to the retailer or brand what they need to do to improve their services.

Apart from evaluating performance, a mystery shopper will analyze other commercial aspects of a retailer’s store. These aspects could be price, availability, quality of the product and customer service via websites, telephones and in person, as well as housekeeping.

The role that a mystery shopper fills is an important one and mystery shopper jobs are in great demand. There are no essential requirements to become a mystery shopper, as shoppers don’t have specific appearance or qualification. With that said, a mystery shopper job is a profession just like any other. While the job entails shopping, which is fun; mystery shopping is a serious business and should be carefully dealt with. To be successful, a mystery shopper must be able to act or pretend, be trustworthy, reliable and professional. Apart from all these characteristics, mystery shoppers should have good writing skills and a clear perspective of reporting their personal opinions so that the truth is not tampered with and the brand or retailer gets a very clear picture of what was observed. Mystery shoppers are relied upon to help stores and brands to uplift their sales by improving customer satisfaction and improving the performance of the employees.

Mystery shopping is useful not just for evaluating the staff’s performance but also for checking the customer service offered by rival businesses. It can be compared with one’s own customer service to find the problem areas. The problems can then be rectified to increase the number of customers and in-turn will increase a retailer’s sales.

Mystery shoppers represent ROI to retailers and brands, especially when they are deployed by third party organizations. This is because third party organizations provide the retailer or brand with a truly impartial review of performance. Third party organizations who specialize in mystery shopping can work with a brand or retailer to pinpoint areas of focus, develop a strategy, and take measurements to ensure that the mystery shopper and outcome of the exercise is effective.

Mystery shopper jobs can be found with organizations that provide these services to brands and retailers. If you interested in becoming a mystery shopper, sourcing mystery shopper jobs through these organizations is your best first step. Because these organizations service so many different brands and retailers, obtaining a mystery shopper job through one of these organizations promises to be exciting and diverse.

The role of a mystery shopper at retail is an invaluable one. In addition, those interested in becoming a mystery shopper will find a fun and rewarding career opportunity as well as a fantastic opportunity to help brands and retailers become more competitive while improving their offering.

For more information about mystery shopper jobs or to apply for a mystery shopper job, please visit www.storesupport.ca or call Bonnie Yhip at 1 877 421-5081.

Looking for Work in Toronto - Has Your Ego Affected Your Ability to Find Toronto Employment?

The recent recession left many people in Toronto laid off, displaced and looking for work. Two of the most difficult situations are:

 

1.       When you become laid off and realize that you will need to re-tool and change industries because of altered economic conditions or;

2.       You left the work force to start a family and are re-entering at a time when the employment landscape has changed considerably.

 

If you are looking for work in Toronto and have previously held a high paying or prestigious position, you may now find that there is more competition in the market than ever, and these types of positions are harder to come by. This can present a crushing blow to the ego. The first thing that you need to do if you want to find Toronto employment is set your ego aside and get focused.

Re-entering the job market in Toronto can be both exciting and disappointing at times. Your success will depend on both your energy and outlook on things. When trying to find Toronto employment, getting passed over for an interview or learning that the job offer you were counting on was actually given to someone else can definitely hurt your pride. Realize that this is a natural and common experience that you may encounter during your career transition but also be aware that if you don't tend to your bruised ego in a quick and positive manner, it will impact your ability to find employment.

When your pride is hurt, your motivation, energy and attitude can greatly suffer, and all of these things need to be in tip-top shape to achieve success in the job market.

When looking for work in Toronto, it is important to stay positive. Try not to spend a lot of time talking with former colleagues at your past company if the conversations are emotional and negative. This will only make you feel worse. Stay away from others who have given up. They will make it difficult for you to get your head around the possibility of taking on a new job in a lesser capacity than the one that you held with your previous employer. Do not listen to negative feedback that basically tells you you'll never work again or not to take on a job that is not equal to or higher capacity than the last one you had. Unfortunately, this often comes from well-meaning friends and family members who are not experts on the job market.  

Look at this time as an opportunity to gain new experience. Be open minded to different industries where you can apply your core attributes.  Embark on a new and rewarding career, even if it is in a different industry than you are used to.

The retail industry in Toronto is one that is fairly easy to enter and can provide immense opportunity. The retail industry offers individuals from many different backgrounds with a chance to excel. Those who possess organizational skills and have experience in sales or customer service can be successful in retail. Even folks who have come out of the manufacturing industry or are just handy can be successful at retail. Retail provides opportunities in distribution, store set up, merchandising, sales and customer service.

When looking for work in Toronto, take a “cup-half-full attitude” to your job search. You can get through this tough time by taking care of yourself, reaching out to others, and focusing on your goals. Losing your job or re-entering the workforce can be an opportunity to take stock of your life, rethink your career goals, and rediscover what truly makes you happy.

For more information about looking for work in Toronto or for Toronto employment opportunities, please visit www.storesupport.ca or call Bonnie Yhip at 1 877 421-5081.