Skip to main content

Ten rules that worked for Sam and will work for you



Luke Johnson, the entrepreneur behind Pizza Express and former head of Channel 4, is a compulsive reader and he warmly recommended Made in America by Sam Walton. For years I resisted the chance to read the story of the man who made Walmart and boy was I wrong.
Quite simply this is a brilliant manual on what you need to do to be a successful independent retailer. In one chapter on thinking small, Walton says: “I always wanted to be the best retailer in the world, not the biggest.”

In 1960 in a newspaper article called Success Story of the Year it described how he and his family and managers had built up a nine strong chain of variety stores. He told the paper that nine was as big as it could get as it was as many as he could supervise.

Most readers don’t need to worry how he moved beyond nine to become the biggest retailer in history (he did this by hiring and inspiring great people). What they need to recognise is that Walton remained a great independent retailer till the end of his life.

“If we ever forget that looking a customer in the eye and greeting him or her and asking politely if we can be of help is just as important…today…then we just ought to go into a different business because we’ll never survive in this one,” he says.

He provides lots of advice for success but notes that they are all just “common sense and most of them can be found in any number of books or articles on management theory – many of which I’ve read and studied over the years”.

His 10 rules for success are prefaced with a few extra ideas such as:
·        Work hard
·        Build a team
·        Have goals and always set them high.

My favourite rule today (tomorrow it could be different) is:
Rule 8: EXCEED your customers’ expectations. If you do, they’ll come back over and over. Give them what they want-and a little more. Let them know you appreciate them. Make good on all your mistakes, and don’t make excuses-apologise. Stand behind everything you do. The two most important words I ever wrote were on that first Wal-Mart sign: ‘Satisfaction guaranteed.’ They’re still up there, and they have made all the difference.”
I also loved his tips on not buying “other people’s inefficiencies” and always remembering that “we are agents for our customers”.

He started out competing with the big firms and won. He says he never put anyone out of business. His competitor’s customers “were the ones who shut him down. They voted with their feet.”

What to do: “Most independents are best off, I think, doing what I prided myself on doing for so many years as a storekeeper: getting out on the floor and meeting every one of the customers. Let them know how much you appreciate them, and ring that cash register yourself. That little personal touch is so important for an independent merchant because no matter how hard Wal-Mart tries to duplicate it-and we try awfully hard- we can’t really do it.”

The book is simply brilliant. It is a manual for success. Ignore the title. This is How to be a brilliant retailer. Breathless prose. Read it today.


Comments

Popular posts from this blog

Three secrets of great merchandising

Look at the ceiling and top wall of this McDonalds restaurant. There is a picture of two good looking healthy people having fun and some bright primary colours. Ask yourself what is the purpose of this picture? In the latest issue of Retail Newsagent in a feature on merchandising, Andrew Knight of RI tells its independent readers that they need to think about using sharp pictures of non-packaged products linked to people consuming goods. Perhaps this has been taken to the next level by the fast food chain - that is selling the feeling of being happy and healthy rather than the products. A second, related tip from the same feature is made by most contributors - it is vital to keep windows clean and clear of clutter. "I believe that less is more," says Roli Ranger, a retailer from Ascot, Berkshire. He has posters for promotions in between the windows that are regularly updated and discreet signs in the windows. Third, a highly visible well-stocked promotion at the entranc

Overcoming a price disadvantage

Planning for his speech at the Independent Achievers Academy last week, Theo Paphitis asked an assistant to buy a basket of six essentials from a Tesco, a Londis (independent operator in a symbol group) and a One Stop (Tesco's CTN/convenience chain). Tesco was cheapest by a big margin. Second came Londis. The most expensive was One Stop. Mr Paphitis understands the power of the supermarkets and he says the way to counter them is to focus on how to make the experience of shopping with you more relevant to shoppers or more enjoyable for them. John Heynan, sales director of Molson Coors, told Retail Newsagent at about the same time that occasional beer buyers will pay 13 per cent more for their beer in an independent convenience store, provided the retailer targets them appropriately. Tesco has carved itself out this 13 per cent head start. Looking at pricing, if Tesco is 100, then Tesco Express is 108, One Stop is 112, a good symbol group is 115 and non-affiliated independents

A sign of retail stress perhaps

It must have been four months since this window was broken in the Tesco Express on Pentonville Road and I simply cannot believe that it has not been fixed. This is the sort of lack of focus that independent shops usually get criticised for. The only purpose in sharing this image is to encourage those independents with high standards who are finding the going tough that they can do better than this.