Race to the Finals

It occured to me this weekend that the NBA Playoffs are a lot like retailing in the current recession. There are a bunch of stores all competing for a limited amount of dollars. As the weeks go on, one by one some stores are dropping off while others who are more successful, more creative, more focused, and more team oriented will win and move forward. Now of course, many more retailers will make it to the Finals than NBA teams will, but then it's all relative. I've been watching ways in which retailers are managing sales during these tough times. Sales, of course, are going on everywhere, even at stores that one might suppose are recession-proof. But sales are just one way to rise above the fray, and indeed, they are less effective when they are so pervasive. In other words, when everyone's store is having a sale, sale prices become the norm and are no longer a huge incentive except perhaps for the true sheep who will blindly buy anything if its on sale, and even those types are in decline. Retailers clearly need to think creatively right now. Sales are fine but to make it to the Finals you will have to do more. I'll pull an example from the restaurant world. A very nice bar/restaurant here in Berkeley decided to introduce "Happy Hour" to help boost business. However, unlike everyone else who offers Happy Hour, they were smart and flipped the idea on its head. Many restaurants in the area today who are hanging in there tend to get busy from after-work hours to about 8-9 o'clock, but they don't get the later rush they were accustomed to. At Fonda, they have implemented Happy Hour from 9 to 10 o'clock with a special cocktail and hors d'oeuvres menu from which to choose (all drinks and food are $5 each). Rather than monkeying around with the business in the early hours that they can so far count on, they have addressed the hours in which they are hurting and have boosted their later night business considerably. This may be a strategy to think about if your store has a cafe or restaurant.

Retailers, even those without food service, can be creative with the ways in which they draw customers. For example, consider offering complimentary knife sharpening service with purchases of $10 or $20 or whatever. Implement a delivery service, especially for seniors who live in the area. Offer treats to any children who come in the store (remember, summer is around the corner), pet treats for those who walk to your store, and special daily gifts or discounts to themed shoppers, i.e. grandparents, newlyweds, secretaries, twins, anyone having a birthday, and so on. Consider your own brand of stimulus package like discounts to anyone who has recently lost their job or their home. in other words, have some kind of special award each day for some segment of your clientele and make it inclusive enough that everyone will look forward to their day of discounts. Anything you can do to make shopping at your store an event to look forward to will help you succeed and make it to the Finals. Just be glad that in retail at least, you won't have to face either the Lakers or the Cavaliers.