Retail Merchandising Quotes

Mixing a profitable small-store format business with a loss-making big box format retailer was a dumb idea. Each format needed different store management, different merchandising skills, different customers.

Sunday night is my personal weekly Halloween. I walk along slowly and drag my fingertips along the bars of chocolate. Goddamn, you sexy little squares. Dark, milk, white, I do not discriminate. I eat it all. Those fluorescent sour candies that only obnoxious little boys like. I suck candy apples clean. If an envelope seal is sweet, I’ll lick it twice. Growing up, I was that kid who would easily get lured into a van with the promise of a lollipop. Sometimes, I let the retail seduction last for twenty minutes, ignoring Marco and feeling up the merchandise, but I’m so tired of male voices. “Five bags of marshmallows,” Marco says in a resigned tone. “Wine. And a can of cat food.” “Cat food is low carb.” He makes no move to scan anything, so I scan each item myself and unroll a few notes from my tips. “Your job involves selling things. Sell them. Change, please.” “I just don’t know why you do this to yourself.” Marco looks at the register with a moral dilemma in his eyes. “Every week you come and do this.” He hesitates and looks over his shoulder where his sugar book sits under a layer of dust. He knows not to try to slip it into my bag with my purchases. “I don’t know why you care, dude. Just serve me. I don’t need your help.” He’s not entirely wrong about my being an addict. I would lick a line of icing sugar off this counter right now if no one were around. I would walk into a cane plantation and bite right in... “Give me my change or I swear to God …” I squeeze my eyes shut and try to tamp down my temper. “Just treat me like any other customer.” He gives me a few coins’ change and bags my sweet, spongy drugs.

But I’m going to say it again anyway: the secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything: a wide assortment of good quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience.

Dana daydreamed of one day being able to set her agenda at B.Altman with the same courage and tenacity as the woman who was now driving the VW while speaking animatedly about her travel plans for the near future. She would be journeying to India in search of exotic merchandise for the store’s Indian extravaganza, a lavish event planned by Ira Neimark and Dawn Mello to compete with Bloomingdale’s Retailing as Theater movement. The movement was the brainchild of Bloomingdale’s Marvin Traub, who staged elaborate presentations such as China: Heralding the Dawn of a New Era. Typical extravaganzas featured fashion, clothing, food, and art from various regions of the world. “I’ll bring back enough items to make Bloomingdale’s blush!” Nina said confidently. “And I’m not just talking sweaters, hats, and walking sticks. I’ll stop first in the Himalayas and prowl the Landour Bazaar.” Lynn Steward ~ A Very Good Life

mark-down, which discounts the selling price to customers and, so long as demand is ‘elastic’, results in increased sales of the product line. However, this is an expensive method of selling products, as it reduces the profit achieved on the products. In fact mark-down is the single largest cost to a fashion retail business after the cost of the products themselves. It is worth remembering at this point that the main – and frequently only – source of income for a fashion retailer is the profit from the sales of its products. Less profit per garment means less income to pay its bills. Furthermore, this tactic is less effective when general trading conditions are poor, as the competition is usually doing the same thing. It is vital then that the fashion retailer knows what its customers want and are expecting. Problems in defining and then keeping up with changing customer needs and expectations are arguably the most important factor in successful selling. Large retail businesses like Marks & Spencer

RETAILERS KNOW THEIR shelfspace is a valuable resource. But this is a recent discovery; in the past, they gave it away, then they thought of selling it. Manufacturers either paid directly, via slotting allowances etc., or paid in materials and labour to make the shelves more attractive and better organised; then they paid both as demand for shelfspace exceeded supply. More recently, for fast turnover items, manufacturers such as Frito-Lay have used a direct delivery and merchandising service where their people will spend pretty much all day in store refilling shelves to their and the store’s mutual benefit.

With such thin margins, profits turn to losses if the retailer loses control of costs by even one or two percentage points. Thus, any activity by the manufacturer, even a change in packaging, will come under intense scrutiny for its impact on a retailer’s in-store merchandising or supply-chain handling costs. There is little chance the product will be listed if it is more costly for the retailer to handle. Equally, any manufacturer who does not immediately jump through hoops to instigate packaging or handling changes required by a retailer for efficiency reasons will find the temperature in negotiations rapidly dropping.

Owing to the ever-increasing pressure on space, as retailers continue to extend private label ranges, there is a risk of branded products being moved to less-optimal locations, having fewer promotional slots and facings or being delisted. Manufacturers cannot wait for this to happen before reacting; they must be proactive in making the case for their brands. While the absolute cash and margins on private labels may be higher for the retailer, the manufacturer has to shift the focus to total system profitability. Many factors favour manufacturer brands when total profitability is considered, including: Sales velocity: Shelfspace turnover is often higher for manufacturer brands. The velocity of leading manufacturer brands is often 10% higher. Profit per linear inch of shelfspace. Discounts and off-invoice allowances: Includes slotting allowances, listing fees, promotional deals, advertising and merchandising allowances, and credit for return of unsold merchandise. Promotional and advertising fees. Provision of ‘free’ logistics services: Includes transportation, warehouse and store labour, and merchandising help for the retailer. Manufacturer brands usually retail at higher-than-average prices: Even when the net margin on manufacturer brands is lower, the absolute cash profit per unit may be higher.

The retailer features them in advertising to generate store traffic, but once the shopper is in the store the retailer has every incentive via prominent merchandising to sell that person a competitive brand, one

Category captains are recognised by retailers as having the greatest knowledge of consumer behaviour and mechanics in a category, and usually will have the most comprehensive range. Retailers believe that stocking this manufacturer’s range, backed with their understanding of positioning, merchandising, shelf allocation etc., should optimise sales. This

Founded in 1994, RDTS offers innovative sales and merchandising solutions to manufacturers and banners across Canada and Europe. RDTS is a company offering sales and merchandising services for various banners and brands operating in the retail field. With a team of more than 300 members, we have been helping our clients and partners achieve their goals for more than 25 years in more than 1,500 stores across Canada.

The company even drew unlikely customers. From rural Arkansas, operating just five comically cheap-looking stores—a rounding error compared with the largest retailers—Sam Walton made his way to an IBM conference for retailers. While he shied away from investing anything in any emotional aspect of retailing, delivering the lowest prices meant mastering logistics and information. To one speaker at the conference, Abe Marks, modern retailing meant knowing exactly “how much merchandise is in the store? What’s selling and what’s not? What is to be ordered, marked down or replaced? . . . The more you turn your inventory, the less capital is required.” Altering his first impression, Marks found that Walton’s simpleton comportment masked his genius as a retailer, eventually calling him the “best utilizer of information that there’s ever been.” A little over two decades later, Sam Walton would become the richest man in America; he would attribute his competitive advantage to his investment in computing systems in his early days. The small-town merchant who expected that knowing his customers’ names or sponsoring the local Little League team would give him some enduring advantage simply didn’t understand the sport. American consumers, technocrats at heart, rewarded efficiency as reflected by the prices on the shelves, not the quaint sentiments of a friendly proprietor. To gain this efficiency, information systems were seen as vital.

Visulon Inc.'s merchandising planning software offers a comprehensive suite of features, enabling retailers to effectively manage their inventory, allocate shelf space, and monitor sales performance. By leveraging powerful analytics and intuitive design tools, retailers can make data-driven decisions and customize their displays to drive sales and enhance the overall shopping experience.

A striking feature of good retailing has been almost a single-minded focus on matching the right selection of merchandise to the customer base, with little or no regard to the time it costs shoppers to acquire the merchandise. Good retailers, with their suppliers’ complicity, regularly squander (waste) 80 percent of the shopper’s time. Great retailers will make productive use of that “lost” time.

3. Display the “vital few” (or the “big head”) along the dominant path your shoppers take, rather than expecting them to find them. Good retailers expect shoppers to find the merchandise they want; great retailers learn all they can about what the shoppers want, and take it to them!

Retailers must do a little bit of everything today. They need to wear many different hats—a business strategist, a store designer, a marketer, a merchandiser, a buyer, a financial wiz, a personnel officer, a coach, a trainer, and anything else that comes about when you run your own

merchandising romance.

Instead of frustrating shoppers by trying to “build basket size” by holding them in the store longer and hoping they will buy something more, we will build basket size by getting more merchandise into their baskets more quickly. The simple fact is that, in the long run, holding them in the store longer will mean that they won’t be coming here so often.

Retailers are driving sales to new heights by moderating choice angst, offering a more limited selection of items. But there is a related angst issue in most stores: “Where is the …?” We refer to this as navigational angst. And there is no question that navigation can create significant frustration, whether it is navigating the shelf visually or finding one’s way around the store. There are at least five ways to reduce navigational angst, as follows: • Design the store and lay out the merchandise in a logical and intuitive way. • Provide signage or other navigational aids to assist the shopper. • Reduce the size of the store to reduce the need for navigation. • Remove visual barriers so shoppers can see the whole store.

Retailers use various strategies, policies, and procedures in timing their markdowns of Christmas merchandise, adds Dale Lewison of the University of Akron. “Some retailers start taking small and early markdowns before Thanksgiving, while others wait until after the weekend following Thanksgiving —the biggest shopping weekend of the year. Still other retailers wait longer to mark down merchandise.

Kanye West's influence extends far beyond the confines of music, resonating deeply in the realms of fashion and pop culture. His merchandise, often referred to simply as "Kanye West merch," has become a significant cultural phenomenon, reflecting his unique aesthetic and visionary approach. Kanye's venture into merchandise began with his concert tours, where limited-edition items became coveted symbols of fandom. The 2013 "Yeezus" tour marked a turning point, with merch that blended gothic motifs and bold graphics, creating a distinctive style that would define his future collections. Fans eagerly lined up for hours to grab a piece of Kanye's world, often reselling items at a premium, further cementing the status of his merch as not just apparel, but collector's items. In 2016, the "Life of Pablo" pop-up shops took this to a new level. Located in various global cities, these shops sold minimalist, streetwear-inspired pieces emblazoned with religious and personal iconography. The launch was a testament to Kanye's marketing genius and his ability to create a buzz that transcends traditional retail methods. The immediate sell-out of these items showcased his knack for blending exclusivity with mass appeal.

the secret of successful retailing is to give your customers what they want. And really, if you think about it from your point of view as a customer, you want everything: a wide assortment of good quality merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly, knowledgeable service; convenient hours; free parking; a pleasant shopping experience. You love it when you visit a store that somehow exceeds your expectations, and you hate it when a store inconveniences you, or gives you a hard time, or just pretends you’re invisible.

The owner, Hugh Elliott, laid out a 1910 photograph of the drugstore when you could buy a freshly concocted purge or balm, or a fountain Bromo-Seltzer, or a dulcimer; although the pharmaceuticals were gone, you could still get a Bromo or a dulcimer (next to the Texas Instruments 1025 Memory Calculator). The photograph showed one other change: what had been a spacious room of several bent-steel chairs and tables was now top to bottom with merchandise. What had been a place of community was now a stuffed retail outlet. Across the nation, that change was the history of the soda fountain pharmacy.

it’s not that he’s gone but that he’s arrived.

So for the first time since I had begun retailing in 1945, I was beginning to back off from the business. I was getting slightly less involved in the day-to-day decisions and leaning a bit more on Ron Mayer and Ferold Arend—our two executive vice presidents. I was still chairman and CEO. Ferold, at age forty-five, ran merchandising, while Ron Mayer, who was only forty, ran finance and distribution. To handle the explosive growth, we were bringing on new people in the general office. Ron brought in a lot of people to handle data processing and finance and distribution. What happened then is the one period in Wal-Mart’s history that I am still the least comfortable talking about today.

Moteefee, a platform founded in 2015 and that currently has 2,500 micro-retailers and entrepreneurs, recently raised 4.5 million euros that will be used for further business expansion. According to PaySpace Magazine, Moteefe has raised €4.5 million in a Series A round led by Gresham House and Force Over Mass Capital. The platform for on-demand production of merchandise aims to use the money for further expansion worldwide. What is more, it plans to launch new products for large retailers and scale its operations. Moteefe enables influencers and retailers to create custom and personalized merchandise and then sell them around the world. The Dutch company takes care of the printing, the store, the payment, the customer service, and the fulfillment, charging a commission for every sale. In 2019, Moteefe was the UK’s fastest-growing e-commerce company with revenue growth of over 9,000 percent between 2015 and 2018.

Often this subject of the beast is connected in people’s minds with the infamous mark of the beast found in Revelation 13:16–17. This mark of the beast has been the cause of much fear, so I will address it here, even though I am not covering the entire Book of Revelation.11 Regarding the mark of the beast, it is important to note that in the ancient culture of Rome, the public market was the main source of trade and retail. For people to enter the public market, they had to pass through the main gate. It was required of all who entered the main gate to pay homage to the idol of the Emperor. Once homage was paid, ashes were placed on the hand or on the forehead of the individual, and then they were allowed to pass through the gates and buy and sell merchandise.12 This was called “taking the mark.” The parallels between this and the mark of the beast are stunning, and they further confirm the reality that the beast was Nero and the Roman Empire.

And around this hub, its center enclosed by the rounded rectangle of the elevated Loop tracks, clustered the dozens of individual neighborhoods that together formed this huge and diverse metropolis. Here was Little Poland, Little Italy, the Black Belt, and Greektown, the silk-stocking districts and the New World shtetls, each one of which—whether made up of crumbling tenements, luxurious mansions, or neat little worker cottages—stood in many ways apart from the others, a self-contained enclave with its own ethos and mores. From this height, one could also see the engines that kept this collection of urban villages in operation—the interlocking feedlots and slaughterhouses of the stockyards district to the southwest, the enormous steel mills to the far south, the reaper works, the railcar factories, the gasworks, the warehouses and merchandise marts of the retailing trade, and the endless railyards full of trains that connected the city to the rest of the world. To call this conglomeration by a single name—Chicago—seemed wildly inappropriate. It was less like a city than a world unto itself, bringing together the artifacts and energies of a vast multitude.

In a country of thirty-two million households, A&P served five million customers a day. In 1929, it became, as John had predicted, the first retailer anywhere to sell $1 billion of merchandise in a single year.28

As shoppers stayed home, brick-and-mortar stores had lost out on the holiday income that usually put them in the black for the year. The ordinarily chaotic shopping scenes on the Friday after Thanksgiving had been replaced by empty retailers whose shelves stood piled with unsold merchandise. Instead of flocking to movie theaters and restaurants over the holidays, consumers sat at home and fed on the fear stoked by the twenty-four-hour news media. The ripple effect was felt across nearly all sectors of the economy as demand fell.

The electronics effort faced even greater challenges. To launch that category, David Risher tapped a Dartmouth alum named Chris Payne who had previously worked on Amazon’s DVD store. Like Miller, Payne had to plead with suppliers—in this case, Asian consumer-electronics companies like Sony, Toshiba, and Samsung. He quickly hit a wall. The Japanese electronics giants viewed Internet sellers like Amazon as sketchy discounters. They also had big-box stores like Best Buy and Circuit City whispering in their ears and asking them to take a pass on Amazon. There were middlemen distributors, like Ingram Electronics, but they offered a limited selection. Bezos deployed Doerr to talk to Howard Stringer at Sony America, but he got nowhere. So Payne had to turn to the secondary distributors—jobbers that exist in an unsanctioned, though not illegal, gray market. Randy Miller, a retail finance director who came to Amazon from Eddie Bauer, equates it to buying from the trunk of someone’s car in a dark alley. “It was not a sustainable inventory model, but if you are desperate to have particular products on your site or in your store, you do what you need to do,” he says. Buying through these murky middlemen got Payne and his fledgling electronics team part of the way toward stocking Amazon’s virtual shelves. But Bezos was unimpressed with the selection and grumpily compared it to shopping in a Russian supermarket during the years of Communist rule. It would take Amazon years to generate enough sales to sway the big Asian brands. For now, the electronics store was sparely furnished. Bezos had asked to see $100 million in electronics sales for the 1999 holiday season; Payne and his crew got about two-thirds of the way there. Amazon officially announced the new toy and electronics stores that summer, and in September, the company held a press event at the Sheraton in midtown Manhattan to promote the new categories. Someone had the idea that the tables in the conference room at the Sheraton should have piles of merchandise representing all the new categories, to reinforce the idea of broad selection. Bezos loved it, but when he walked into the room the night before the event, he threw a tantrum: he didn’t think the piles were large enough. “Do you want to hand this business to our competitors?” he barked into his cell phone at his underlings. “This is pathetic!” Harrison Miller, Chris Payne, and their colleagues fanned out that night across Manhattan to various stores, splurging on random products and stuffing them in the trunks of taxicabs. Miller spent a thousand dollars alone at a Toys “R” Us in Herald Square. Payne maxed out his personal credit card and had to call his wife in Seattle to tell her not to use the card for a few days. The piles of products were eventually large enough to satisfy Bezos, but the episode was an early warning. To satisfy customers and their own demanding boss during the upcoming holiday, Amazon executives were going to have to substitute artifice and improvisation for truly comprehensive selection.