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More retail inspiration from Fortune

Two current articles in Fortune make interesting reading for enterprising independent retailers.

First is an interview with Pitt Hyde who sold his family's wholesale food distribution business in 1988 to invest in auto parts retailing. Hyde did not know the auto parts business but he knew there was an opportunity because customer service was poor and standards were low.

His plan was to focus on customer service in good looking stores. He started out with four in 1988 and now has 5,000.

"We worked on small margins and were very tight operators, so that discipline helped us through as we learned the business," he recalls.

"Money is a small part of the equation for success. Sweat equity is what makes things work."

Less visceral but just as interesting is an interview with Greg Wasson, CEO of Walgreen, the massive US drug store chain lauded by Jim Collins. The journalist is Geoff Colvin, who is consistently excellent.

Here is what Wasson says:

"In the past we were a pharmacy with a front end that was convenience goods. We don't want to lose that. We're on the best corners of America for that reason."

"We're extending our fresh food offering. I love the statistic that 60% of the people in this country responsible for tonight's meal do not know what it is at 10am. So if we're already trusted to provide medications and we've been selling milk, bread and eggs, there's no reason we can't extend into fresh food - tonight's meal."

Read the full article for a useful assessment of consumer trends. Nothing you have not thought about but Wasson expresses ideas brilliantly.

While both articles are available on line, I recommend you read the hard copy of Fortune as it is easier to find the great stuff relevant to your business by flicking through hard copy.

Read more, visit www.betterretailing.com.
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