nickshanagher

There is an amazing fact near the start of Decoded, a new book from marketer Phil Barden. The average person takes 1.7 seconds to process the information in an advertisement in a magazine. But this does not really matter because all good marketing needs is this 1.7 seconds. People are programmed to respond quickly to the hundreds of thousands of things they “see” every day. If the marketing is right for what we are looking for, we will find the products we need. Even if we make mistakes, as we all do, all the time. But if we “were to reflectively think about every purchase decision in the supermarket, it would take so long to do our shopping that we would starve to death.” Barden’s work builds on the field of behavioural economics pioneered by Nobel prize winner Daniel Kahneman, whose brilliant book Thinking Fast and Slow demonstrates that the way people behave is not as economists would like to think. In a chapter on optimising the path to purchase, Barden shows how good m...

In a business diary column in the FT, Laura Tenison, head of the 40 outlet strong JoJo Mamn Bébé children's and maternity clothing company, offers two thoughts that will be resonant for local store owners. First, on the subject of competing with the supermarkets (niche businesses have to, too!). "Sometimes I get emails asking why we don't put Disney characters on our sleepsuits. Yes, they might sell. But what would be the difference between us and the supermarket? If you are a niche business...you have to think long term." Second, on the subject of bank finance. "In July 2008, the world changed. We had planned to open eight stores that year, but managed only two because the banks refused to extend our working capital facility, even though our gearing was extremely low for a growing retailer." A great many company owners understand this second point. Banks are only really happy to lend you money when you don't need to borrow. The moment you need to ...

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...

I was talking to Steve Denham about a presentation that I made earlier this year and he said that I should read Why We Buy by Paco Underhill, which is about the Science of Shopping. Steve was listening to me talking about how signs worked and how the outside of shops encouraged or discouraged a shopper. Mr Underhill has great credentials and is one of the pioneers of using anthropology to understand how people shop and why. The science was born in the late 1990s and has spread rapidly. While experienced retailers will feel much of what the book tells them is common sense, I agree with Mr Underhill that experienced retailers often miss what is under their nose. However, the following paragraph is a good example of what really works in the book and if you like this then it would be worthwhile to get a copy for yourself. "Here's a good example of the terrible magic that smart merchandising can perform. I once heard a talk given by a vice president of merchandising from a na...

Shopkeepers may learn good lessons from other shopkeepers who sell completely different ranges. A reason for this is that you are all competing for the attention of customers and today there is an oversupply of things for people to buy. So what works in one store can be adapted by you. I bought a copy of the April issue of Monocle because of its cover line: "The art of sell: the world's best shopkeeping and retail stars". Underneath there was a snappy illustration showing a man about town buying things. The first time I looked at the 25 stars I thought that I had been sold a pup. I was underwhelmed. On a second reading, I started to find stuff that was really interesting. Firstly, the magazine says that its guide is a "celebration of good design, the art of doing the basics well and knowing how to treat people." Looking closely at the photographs you can see how these three values interact. Second, there is a short interview with Bonnie Brooks, president of the ...

It is great to find an independent retailer who appears to be getting business right and today I stumbled across Hatton Garden News in central London. What caught my eye was a well lit and tidy magazine display. The morning was wet and windy and the shop looked inviting. The shop was carpeted and well merchandised with confectionery, savoury snacks, soft drinks and the lottery. Browsing, I bought a Galaxy bubbles bar that was displayed above a handmade sign that simply said "new". Good lighting, tidy full shelves, understated and friendly service. A welcoming business in a high footfall location. Well done.

How hard: it depends how big you are and how much you know about your customers. For a large multiple, a huge amount of science goes into developing deals for their shoppers. They try to deliver promotions that are timely and targeted. They have complex buying, marketing and merchandising operations to keep synchronised. For a local shop, you can see the customer you want to focus on and you can ask them what they are looking for. Next you can source the deal and then deliver it on time in your one location. However, if you want to maximise the investment of suppliers in your promotion, then you need to impose greater discipline. If you want to earn overrider payments, you have to take promotions designed for the average shopper, not your own customers. If you choose to step up a level, then you need to improve your own disciplines. The first thing you need to do is tell yourself that you will have regular promotions. Perhaps 13 times a year, perhaps more. Some could be obvious...

Shopkeeping is a passion of mine, Theo Paphitis, owner of Rymans, the office supplies company and UK TV star, told an audience of leading retailers last week. The simple act of owning a store provides you with 70% of the skills of running a business, he estimates. The reason why is that running a local shop requires a huge mix of skills: people skills, stock control, merchandising, and so on. Shopkeeping is also an area where you can join with no qualifications and get to the top. Cheerleading for the retail sector is important. Retailing done well adds value to the economy. Mr Paphitas is right to say that anyone can open a shop. But to do it well you need to master a broad set of skills. The good news is that there is lots of help easily available to the local retailer prepared to make the effort to seek it out.