Merchandising may be the key to the 2011 retail race, with an improving economy, but still unmotivated consumer, striking a balance is going to be tough.
Retailers should continue investments in new products – innovation helps persuade shoppers to buy (iPhone for example). They should also continue offering products that offer both quality and value, with an increasingly informed consumer looking to get more for their money.
Other retailers are already seeing results with strategic plans in place to keep a steady stream of consumers interested in their products. By debuting exclusive products gradually, instead of all at once, consumers stay interested in the brands.
While product remains king, some companies are using the combination of fashion and lifestyle to stay on top of sales. By offering fashionable workout wear and offering fitness classes in-store, they are able to create an entire community of loyal customers coming back.
Some retailers are finding success by reexamining their customer and offering products more in line with their buying desires. One clothier has moved more from graphic T-shirts to dressier options like cardigans and skirts to reach their core consumer – hip, teen girls.
In every scenario, the core component of the retail strategy is satisfying customer demand. It’s an old strategy, but still rings true today: right product in the right place at the right time for the right place.
Source: Bloomberg, January 2011