July 2010 by FOCUS ON FASHION RETAIL

SALES LESSONS tapered toe oxford. The third example, the rectangle means that you have a little more flexibility with shoe silhouette and you could choose a shoe that isn’t too extreme either way. So what we’ve learned is that symmetry can make or break the look of an outfit and shoes are a very important part of the look.

Lesson 5 Following Up Building a Clientele

Price: Price is the most common objection and the most difficult to overcome. Again, here you’ve been working on overcoming this one since the very beginning by trying to show the customer the value in the purchase. You’ve talked about the construction or the materials in the shoe. You’ve also reassured the customer about the fit of

the shoe by confirming that the fit points match up. Finally, you reassured them by pointing out that the style of the shoe is the right match with the clothing they intend to wear it with. At this point, no matter what the price of the shoe is, the customer should see the value in the purchase.

Absolutely the most important part of building a successful business of any kind!

loyal to specific brands. You will also find that some of your most loyal customers are the ones that are hard to fit or wear a size that is not so common. Some are even loyal to classifications of merchandise.

We must build loyalty among a large group of customers that will visit our store on a regular basis. If I’m a commissioned based salesperson, I want to do my best so that everyone I wait on will remember me and ask for me when they return to the store. I don’t mean to brag, but I used to have many customers that if they happened to come into the store on a day that I was off, many of them would leave and return another day rather than have anyone else take care of them. That situation should be every salespersons goal. Every customer should be given A.B.C.D service everyday. Most stores create advertising and marketing campaigns that are primarily designed to attract higher levels of traffic into their stores and they work hard to attract new customers. Some still don’t understand that marketing toward their existing customer base is just as important. Your goal should be to collect as much information about every customer that you possibly can. What you will find is that customers become

Some of them always buy a handbag from your store every single time they buy a pair of shoes. This is what is so exciting about technology these days in this “age of information”. If you just make it a point to collect good information, it is such a valuable marketing tool. Try to get as much personal information as possible without being intrusive. Use this information for marketing initiatives such as “Birthday Clubs” or anniversary reminders etc. These personal touches go along way to show the customer that they are highly valued as a loyal customer. Almost every day new merchandise arrives in your store. Somewhere in your sales history there are customers that are addicted to the brand of the newly arriving merchandise. It may be that a few difficult to find sizes are sitting right on top of the just opened box. All it takes is well timed phone call, eMail, text message or old fashioned post card to motivate a customer into getting to your store as fast as possible. When you communicate like this to your customers, it shows that you really do your best to give A.B.C.D service and for that, you will be rewarded.

Michael Tidmore, President Successful Online Stores, LLC In the retail business for more than 30 years. Beginning in high school and all through college I worked in department stores selling Men’s clothing. After college (Texas Tech University-Marketing) I worked as a wholesale sales representative for Miller Shoe Co. Through that position, I was offered an opportunity through one of my clients to manage a group of independent shoe stores (S&J Shoe Company) in South and West Texas. I went on to become a Regional Manager over footwear for Dillard’s department stores for almost 15 years, where under my tenure my area went from 23M in sales to more than 120M. Please feel free to send me an e-mail with any questions or comments at mike@successfulstore.com

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August 2010

Editor’s Letter

BUSINESS MAGAZINE FOR SHOE, APPAREL & ACCESSORIES STORES

“The road to success is always under construction.” - Lily Tomlin, actress The other day I was talking with a friend of mine. During the course of our conversation he asked, “How’s business?” “Not all bad,” I replied. “In fact, parts of it are quite good.” “That’s what many people are telling me.” He continued, “Don’t read the papers and you will be fine.” I certainly do not want to imply that I think the ills of today’s economy are fictitious. Nor do I want to give the impression that the challenges will simply disappear if we ignore them. I am not advocating that we stick our heads in the sand. However, I also do not believe that the sky is falling. It is undeniably true that negative news sells papers and economic downturns can be largely self-fulfilling as people start trimming their expenses out of fear that their economic condition might worsen.

In fact, playing it “safe” this season is probably the worst thing you can do for your store’s performance this Fall/Winter season. The outcome of falling sales is virtually certain if your store contains only predictable and relatively uninspired merchandise. Your customers will then feel bored surrounded by nothing that speaks to them and they too will feel that they have done the right thing by forgoing purchases that they really do not need. A shoe manufacturer once decided to expand his market reach and so sent two of his sales reps to the Congo to tap that undeveloped territory. Shortly after arriving, the first rep cabled back the following message: “Prospects nil. Nobody here wears shoes.” But the second rep saw the situation a little differently. He excitedly reported, “Market potential terrific! Everybody is barefooted!” “Opportunity’s favorite disguise is trouble.” – English proverb If you decide to go with the “market potential terrific!” attitude, you can be sure that we’ll be here to help you every step of the way. We’ll provide all the guidance you need as you embark on the great adventure of creating a market for your product. So, let’s get started! Hopefully, the TRADE SHOWS CALENDAR (with show ratings) published in this issue will help you to find the event closer to you and better satisfying your needs. Check the Fashion section of this issue for fashion proposals and products for the upcoming Fall-Winter season. Read the featured articles and learn about Retail Trends and Opportunities, Mastering Sales Skills, Visual Merchandising, etc. and start using this knowledge immediately! Don’t get depressed reading upsetting news and start improving the economy with improvements in YOUR store, YOUR business, and YOUR life! Please feel free to contact me at editor@focusonshoes.com with questions, comments, suggestions or topics you’d like to see covered in future issues. Serving you better is our goal and privilege. Sincerely,

Alex Geyman Editor

FASHION RETAIL EDITOR: Alex Geyman GENERAL MANAGER: Dmitry Nelipovich ART DIRECTOR: Allison Moryl GRAPHIC DESIGNER: Pay Fan GRAPHIC DESIGNER: Laurie McAdams FASHION EDITOR: Natalie Wollman SUBSCRIPTION: Sandra DaSilva RESEARCH: Shawn Lancaster SALES: Claudia Perez COVER PHOTO: Elie Saab Couture

FEAUTURED ARTICLES: Sales Lessons: The 5 Steps To Successful Retail Selling. Part 4 o& 5 By Michael Tidmore www.successfulstore.com

Focus On Sourcing: A Major Shift In Sourcing Is Underway By Herb Rothstein hero.assoc@verizon.net

Retail Report: 2010 Retail Trends And Opportunities Part 2 of 2 By Garrick H. S. Brown www.colliers.com

Mastering Sales Skills: You Make The Call

By Harry J. Friedman www.thefriedmangroup.com

Luxury Marketing: It’s Too Soon To Celebrate

By Pamela N. Danziger www.unitymarketingonline.com

Visual Merchandising: Effective Store Signage By Melanie McIntosh www.inspire.bc.ca

Hiring: Why Performance-Based Recruiting Produces Top Sales Performers By Alan Rigg www.mysalestest.com

All editorial pages are intellectual property of FFR and/or featured authors. No portion of this issue may be reproduced without the express permission of FFR and/or featured authors.

FOCUS ON FASHION RETAIL 25924 Viana Avenue, Suite 19 Lomita, CA 90717 USA Tel. (310) 784-0790 fax (310) 202-6027 General E-Mail: info@focusonshoes.com Web: www.focusonshoes.com

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FOCUS ON SOURCING shortly. Many were concerned about longer lead times and moving goods over a not-to-great infrastructure system.

Written for Focus On Fashion Retail by Herb Rothstein, contributions by Susan Proffitt

he footwear industry is going through major changes in virtually all areas. In the US those changes will be more dramatic if the US government initiates proposed actions. Some of these could have a positive outcome, others will not. Here are a few factors to consider.

Sourcing from Indonesia and Vietnam filled those manufacturing facilities quickly producing high volume-low cost goods. Now it appears that may have been the wrong move for many volume buyers. As the major brands followed mass merchants path to this region the factory owners face a decision; do they keep producing for these low price/ high volume customers or send them away and accept orders for higher priced goods from major brands? This is a good predicament for them to be in because they benefit from the shift in manufacturing no matter which way they look at it. You can guess what was decided. The question is, were do the volume buyers go next?

From a sourcing perspective, major changes are taking place and will continue for some time; specifically, issues with sourcing from China.

A. Move back to inland China B. Take another look at India C. Investigate new sources like Bangladesh, Cambodia and others.

Three years ago, the European Union imposed countervailing duties on leather footwear produced in both China and Vietnam. This was done under extreme pressure from Italy, Spain and Portugal who are desperately trying to salvage what is left of their footwear industry. After two years, duty increases were extended for another two years. In the meantime, companies that were supplying leather footwear to the EU countries from China and Vietnam manufacturing plants scrambled to find new sources, which meant, for the most part, Indonesia. The move to Indonesia gave many companies who had not previously considered it an introduction to their capabilities and costs which were competitive with China’s. Many buyers didn’t realize that Indonesia has the 4th largest population in the 15 4

August 2010

world and is the home of a great many footwear factories. Many of these factories were started by Korean ex-patriot companies with a few Taiwanese mixed in. Some companies also looked at sourcing from India. There are a few footwear brands such as Weyco Group and Cole Haan, who have been successful in India for some time. A few Taiwanese manufacturers set up manufacturing there, but infrastructure issues, along with ‘unprepared’ government inaction, made it difficult for companies to relocate there.

China’s labor costs, especially along the southern and west coast manufacturing hubs, have escalated in recent years sending urgent movement by private label and volume buyers to Vietnam and Indonesia in search of lower costs. An alternative was to encourage Chinese suppliers to move their manufacturing facilities to western and northern provinces. The Chinese government wants to keep the industry in China and stem the flow of workers from the inland provinces to the already overburdened costal cities. Unfortunately, while some buyers have been willing to travel to these outer regions, many look at it as a short term solution assuming that the labor costs in these locations will catch up to those on the coast © FFR- Focus On Fashion Retail

Inventory, transit time and transportation costs are also factors high on the list of issues being pondered by industry management. Some ‘shoe-dogs’ may remember lead times of six months and more from sources in China, Korea and Taiwan. Over the years lead times shrank . When costs began to escalate in China, ‘lean manufacturing’ came into play. Lead times shrank once again to 90 days and less. At the same time steamship lines added larger, faster vessels that could cross the Pacific from China’s southern cost to LA in less than two weeks. Today no one wants to hold inventory. Warehouses have plenty of room to spare while retail back room stock is substantial-

ly below the volume as recent as 2-3 years ago. Lead times are further compressed at manufacturing sites with factories being ‘authorized’ to bring in raw materials, they are holding off cutting/stitching and assembly until the last possible moment. During the retail downturn the steamship lines lost money like it was a greenback ballast overboard. In an effort to salvage losses while being pushed to unbelievable low rates, many ships were taken out of service and ‘stored’ in Singapore harbor. With business escalating, only a few ships were put back into service. The inevitable end result- demand is outstripping available capacity forcing prices up. Another cost saving measure and one many are doing is to run the ships at slower speeds which reverses the shorter transit times they earlier heralded. Slower speeds reduce fuel costs but add 5-6 days to the Pacific crossings in many cases. We are now faced with increasing freight rates, with some cargo actually getting ‘rolled’, and slower crossings that offset the shorter lead times gained at the manufacturing level.

4. Inaction, and threatened action by the U.S. government has a direct effect on souring and pricing issues. Here are a few examples.

a. Affordable Footwear Act: For at least the past 3 years, and probably longer, members of the US House and Senate have proposed action to either reduce, or completely eliminate the import duties on footwear constructions that are not being produced in the US. One example of this is the import duty on the popular rain boot construction is 37.5%. Nobody in the US produces this type of footwear so there is no industry here to protect. Why than is the American consumer required to pay such an astronomical duty for the product? A Simple Answer: Customs and Boarder Protection (CBP) needs the revenue to keep their agency solvent. This appears to be another unreasonable tax on the consuming public upheld by the Congress and Senate. b. China’s Currency: With the announcement by China that it is ‘investigating’ how it will allow its currency to float against the US dollar, additional cost increases for goods from China will soon be experienced by all. The only question now is by how much change will the Chinese government allow before it again clamps down and will that be enough to quell the increasing rhetoric or Capital Hill, lead by Chuck Schumer, who has been pushing for legislation to authorize up to a 25% countervailing duty be imposed to offset, what he claims as, unfair exchange rates fixed by the Chinese government.

Herb Rothstein is the founder and president of H. Rothstein & Associates, Inc., a consulting firm specializing in the development of supply chain systems for small and medium size companies. He has spent over 40 years dealing in international trade matters throughout Asia, Europe and Latin America. His corporate positions included stints with Chadwick-Miller Inc. , Morse Shoe Inc. (Asst. VP), Reebok International Ltd. (VP-Supply Chain) and Converse Inc. (Exec. V.P.). He was a founder of Global Trade Systems, Inc. and continues as an advisor to that firm. In addition he serves as VP Special Projects for Pou Chen Group and Vice President International For Dongguan Pactiv Packaging Co., Ltd. as well as COO for Channel TB USA, LLC. Herb is certified by the Council of Economic Priorities under SA8000 and has taken a leadership role in Asia in the area of Human Rights where he developed programs for a number of firms. He is a member of BOD of the Coalition of New England Companies for Trade (CONECT) and has been a guest speaker on trade matters at Babson College, MIT and several other New England based colleges and universities. His writings on trade have been published in the Journal of Commerce. © FFR- Focus On Fashion Retail

August 2010

FOCUS ON SOURCING shortly. Many were concerned about longer lead times and moving goods over a not-to-great infrastructure system.

Written for Focus On Fashion Retail by Herb Rothstein, contributions by Susan Proffitt

From a sourcing perspective, major changes are taking place and will continue for some time; specifically, issues with sourcing from China.

A. Move back to inland China B. Take another look at India C. Investigate new sources like Bangladesh, Cambodia and others.

August 2010

4. Inaction, and threatened action by the U.S. government has a direct effect on souring and pricing issues. Here are a few examples.

August 2010

SALES LESSONS

Part 4 and 5 of 5

by Michael Tidmore

Lesson 4 Closing the Sale Overcoming Objections What it all comes down to is this: Closing a sale is simply overcoming a customer’s objection for the product in question. In selling shoes there are only 3 reasons a customer can give you for not purchasing the shoe. 1. Fit 2. Style 3. Price Most professional selling courses try to drive home the point that closing the sale is not something you do at the end of the presentation, it should be happening all along. They use the acronym ABC (Always Be Closing). Key Point: From the very first word you speak to a customer, you should begin closing the sale. Let’s discuss how this applies to what we have learned in our previous lessons.

Fit: Do you remember from a previous lesson that I said that you should make it a point to place the shoe on the customer’s feet? When you do this you should say something like : “The shoe looks like it fits you very well. It feels good doesn’t it?” Notice the wording of the statement. If the cus17 6

August 2010

tomer agrees and says something like “Yes, it does feel good” then you can mark one of the 3 objections off the list because it is going to be very difficult for her to use that as an excuse not to buy later. If it wouldn’t require so much space in print, I would like to teach you exactly how to check the fit of a shoe by teaching you the 7 major fit points of shoe fitting. We’ll save that for a separate lesson that I’ll make available later.

Style: Here’s a quick fashion lesson for you. One of the considerations on the mind of the customer is whether or not the shoe she is buying is going to look right with a specific outfit or group of clothing. I call this lesson “The Science of Fashion”. Several studies have shown that human beings find “symmetry” in other human beings the most important trait in whether or not they find that person attractive or not. For example; groups of people were shown photos of other people and asked to give their opin© FFR- Focus On Fashion Retail

ions on which people in the photos were most attractive. The surveys consistently showed that people with symmetry in their facial features such as the eyes being not too far apart, yet not to close together and oval shaped faces that gradually tapered from forehead to chin were thought of to be the most attractive. So to summarize, when people look at someone’s face, the natural tendency is to look at the person’s forehead and eyes and scan down the face. As long as none of the facial features are considered out of proportion, such as an extremely large or extremely small nose then other people will find the face attractive because it is symmetric. Fashion designers will tell you that the same principles apply in clothing and accessory design as well. The following is a basic guideline on suggesting the correct foot wear for different types of clothing. There are 3 basic silhouettes in clothing. The upside down triangle, the right side up triangle and the rectangle. Because I tend to use women’s examples so much in

these lessons, let’s shift gears a little and use a men’s example. Let’s say that the upside down triangle represents the silhouette of a double breasted suit. Double breasted suits traditionally have padded shoulders that tend to make them stand out horizontally. So you can see how the first triangle might represent that shape in the suit. In order to be symmetric, the shoe chosen to best compliment that shape would be more of thin soled tapered toe loafer rather than a shoe like a big heavy wingtip brogue oxford, right? So let’s move to the right side up triangle. This shape would represent a soft shouldered 2 button traditional suit with pleated pants and a wider leg. In this case the shoe chosen should be just opposite of the first example. The wingtip brogue oxford would be much more symmetrical with this look than the August 2010

SALES LESSONS

Part 4 and 5 of 5

by Michael Tidmore

August 2010

Lesson 5 Following Up Building a Clientele

Absolutely the most important part of building a successful business of any kind!

19 8

August 2010

the shoe show at magic

one time. One location. the only shoe show you need to shop shoes.

Las Vegas Convention Center August 17, 18, 19, 2010 BUYers/exhibitors: 818.593.5000 | press: 818.227.4047 | info@fnplatform.com | FNPLATFORM.COM

2010

PART 2

Retail Trends &Opportunities by Garrick H. S. Brown

The Economy

• After reaching record lows in early 2009, consumer confidence levels have improved but will only grow if employment does the same. • The U.S. lost 4 million jobs in 2009 on top of 3.1 million jobs lost in 2008. National unemployment stood at 10 percent as of the start of 2010. Job losses will likely bottom out sometime during the first quarter, but growth will be minimal.

Transactional Activity

be buyers (especially vulture funds) were holding out for nine caps or greater. Look for cap rates to move from the eights to the nines and to stay there for stabilized core assets with strong occupancy. Distressed properties may transact at ten caps and above.

• Sale pricing for retail properties has dropped roughly 40 percent from peak values due to the impact of distressed properties and weakened market fundamentals. Pricing for retail properties will take further hits, but there will be a clear separation between values for distressed assets and stabilized properties with strong occupancy. The strongest assets will likely see only minimal further price depreciation.

• Investors holding out for fire sale pricing on distressed assets helped to increase the gulf between bids and asking prices. Vulture funds held out for a flood of distressed properties to hit the market and further crash values. Most REITs can now be classified as either bankrupt or “ready.” The “ready” REITs raised war chests through public offerings (over $18 billion in 2009) to both shore up balance sheets and prepare for acquisition sprees.

• In 2009, commercial real estate leasing and sales activity was off by as much as 70 percent in some U.S. markets. But in 2010 “deal paralysis” ends, decision makers are back, leasing market will improve and investment activity will increase steadily.

• “The fear factor,” which reduced consumer spending in 2009, increased the personal savings rate and lowered household debt, will dissipate in 2010.The National Retail Federation (NRF) predicts retail sales will increase by 2.5 percent in 2010. • Credit card companies pulled back, reducing the availability of consumer credit, a trend that will continue as credit card companies limit their exposure. The credit markets, nearly frozen at the beginning of the year, improved but remain tight. Many retailers “on the edge” will face challenges in refinancing. The accelerating rate of small bank failures remains a threat. Before the commercial real estate foreclosure crisis is over, we expect a minimum of 1,000 U.S. bank failures. • Once hot growth areas like Arizona, California’s Central Valley, Florida, Las Vegas and a handful of other markets were suddenly both overbuilt with housing and under-demand on retail. Retail recovery will be tied to housing recovery in every market.

• More distressed properties will be brought to the marketplace in 2010, but the commercial real estate foreclosure crisis will not play out as a tsunami that further crashes real estate values in one giant wave. Cap rates increased from the seven percent range to the eights and continue to rise, but many would-

• Note sales, short sales, the return of CMBS, and moves by REITs will help mitigate the issue of distressed commercial properties, but only somewhat, and likely just at the top end of the scale.

Market Trends

• While retail vacancies will stabilize in many markets, we are not done with contraction. New retail construction has virtually disappeared—currently at a 25year low and will remain at record lows. • Depending on the market, lease rates have dropped 25 to 40 percent from 2005/2006 peak levels of 2005/2006. Downward pressure will remain on lease rates. Urban storefront retail may begin to show signs of stabilization by year end. • Rent relief, renegotiated leases and early renewal/ “blend & extend” deals will continue in 2010. • Urban storefronts and regional malls were the beneficiary as “pop-up,” or temporary stores, became increasingly popular with retailers. Pop-ups allowed retailers to experiment with new concepts, possible permanent sites and to greater exploit seasonal sales at lower occupancy costs. • Major retailers who had previously been priced out of space in top U.S. urban markets (e.g. Manhattan, Chicago) found deals on storefront rents in major downtown areas.

• Regional malls and grocery or drug-store anchored neighborhood/community centers have fared best. Strip centers have been especially hard-hit due to the disappearance of mom-and-pop retailers (overly reliant on non-existent home equity and small business lending) and overbuilding in many markets. • Conditions are ripe for “flight to quality.” With rents down on average at least a third, top retail locations are where the few active space users are looking for deals.

Retailer Trends

• The “New Frugality” is here for at least five years. Necessity and off-price retailers will continue to fare best. • Ethnic-themed retailers will continue to expand and drugstores will prosper as America’s demographics shift. • Store closings were actually down slightly in 2009 from 2008. Though credit remains stringent, many retailers “on the edge” were able to refinance “lights out” debt. Meanwhile, “white knight buyers” also helped to mitigate retail failures/ closures in 2009.

• Retailers drastically cut costs and paid down debt in 2009. Landlords were the big loser here as one of the primary ways retailers cut costs was to aggressively renegotiate leases. • Mom and pop retailers have been failing and the pipeline of new start-ups has virtually disappeared. Many of these businesses are reliant on virtually non-existent home equity and small business lending. • Competition drove down retailer margins in 2009, especially in the grocery sector due to Walmart and warehouse stores. More retailers will look to grab a piece of the grocery pie, but price deflation has shrunk the slices. Look for grocery consolidation. • Fast food and fast casual restaurants (concept burger, wings and yogurt stores) are doing well. Casual dining and upscale restaurants will feel the pain, though 2010 will be a year of improvement. Restaurant growth will be franchise-driven, but tight lending could hamper this.

USER TRENDS 2010 Department Store Players Shift to Outlet Mode

With most major department store players booking 2009 same-store sale decreases in the double-digit range, and off-price apparel chains like Ross Dress for Less and T.J. Maxx reporting gains, it should come as no surprise that players such as Nordstrom and Bloomingdale’s are suddenly looking to get a piece of the off-price action. Macy’s-owned Bloomingdale’s is the latest to enter the fray, with four outlet stores planned for 2010. The chain is expected to

boost outlet store openings further in 2011. Bloomingdale’s outlet stores will take approximately 25,000 square feet of space. The chain has openings planned for Bergen Town Center (Paramus, NJ), Dolphin Mall (Miami), Potomac Mills (Washington DC area) and Sawgrass Mills (Sunrise, FL). Nordstrom was one of the first players to shift towards off-price growth. The Seattlebased chain plans on adding at least 16 new Nordstrom Rack stores in 2010, and this number may go up. Nordstrom added 12 Rack stores in 2009 (including two in Manhattan)

as it quickly shifted its development focus away from its traditional department stores towards its off-price concept. Rack stores take between 35,000 and 42,000 square feet of space and typically offer price points that are about 50 percent lower than those offered in Nordstrom’s traditional department stores. The chain is actively seeking both urban and suburban sites and has signed a number of deals in big-box space vacated over the past 18 months. For example, Nordstrom Rack recently inked a deal for 36,000 square feet of former Circuit City space on Chicago’s Magnificent Mile.

TRADE SHOW CALENDAR AUGUST TO SEPTEMBER 2010 DATE

SEPTEMBER

August

1-3

22 23

August 2010

EVENT

LOCATION

Accessorie Circuit

New York, NY

•

1-3

Intermezzo Collections

New York, NY

1-3

Children's Club

New York, NY

1-3

Fame

New York, NY

1-3

AccessoriesTheShow

New York, NY

1-3

Moda Manhattan

New York, NY

3-5

FFANY- The New York Shoe Expo

New York, NY

•

3-6

Outdoor Retailer

Salt Lake City, UT

7-10

STYLEMAX

8-10

Chicago Collective

PHONE •

•

• •

•

Chicago, IL

•

Chicago, IL

•

• •

•

WEB SITE

FOCUS' RATING

(212) 759-8055

www.enkshows.com

N/A

(212) 759-8055

www.enkshows.com

N/A

•

(212) 759-8055

www.enkshows.com

N/A

•

(212) 686-4412

www.fameshows.com

•

(212) 686-4412

www.accessoriestheshow.com

•

★★ ★★★

(212) 686-4412

www.modamanhattan.com

•

(212) 751-6422

www.ffany.org

•

(949) 226-5760

www.outdoorretailer.com

★★★

•

(312) 527-7759

www.stylemaxonline.com

★★★

•

(312) 527-7635

www.chicagocollectiveonline.com

★★ ★★★★

★★

8-10

Focus

Los Angeles, CA

•

(213) 630-3616

www.californiamarketcenter.com

★

8-10

Transit- The Los Angeles Shoe Show

Los Angeles, CA

•

(213) 630-3616

www.californiamarketcenter.com

★★

9-11

WSA- World Shoes & Accessories

Las Vegas, NV

•

(818) 379-9400

www.wsashow.com

9-11

Brighte

Los Angeles, CA

•

(212) 759-8055

www.enkshows.com

13-15

ASR- Action Sports Retailer

San Diego, CA

•

(949) 226-5744

www.asrbiz.com

★★★

•

★★★

13-15

TASM- The Atlanta Shoe Market

Atlanta, GA

14-17

munichfashion.women

Munich. Germany

15-18

Off Price Specialist Show

Las Vegas, NV

•

16-18

ENK Las Vegas

Las Vegas, NV

•

16-18

Mrket

Las Vegas, NV

• •

•

★★★★ ★★

•

(706) 923-0580

www.atlantashoemarket.com

•

49 (0) 8106-994-0330

www.munichfashioncompany.de

•

(262) 782-1600

www.offpriceshow.com

•

(212) 759-8055

www.enkshows.com

★★

•

(203) 853-6015

www.mrketshow.com

★★

•

(212) 686-4412

www.accessoriestheshow.com

(212) 686-4412

www.modamanhattan.com

•

16-18

AccessoriesTheShow

Las Vegas, NV

16-18

Moda Las Vegas

Las Vegas, NV

16-18

KIDShow

Las Vegas, NV

16-19

WWIN- Womens Wear In Nevada

Las Vegas, NV

17-19

FN Platform

Las Vegas, NV

•

17-19

MAGIC

Las Vegas, NV

•

17-19

Pool

Las Vegas, NV

•

17-19

Project

Las Vegas, NV

•

18-19

(capsule) Las Vegas

Las Vegas, NV

•

• •

•

N/A ★★★

★★★ ★★

•

(973) 340-0256

www.lingerieshow.cc

★★

•

(702) 436-4081

www.lingerieshow.cc

★★★★

•

(818) 593-5000

www.fnplatform.com

★★★★

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(818) 593-5001

www.magiconline.com

★★★★

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(877) 554-4834

www.pooltradeshow.com

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(866) 614-7324

www.projectshow.com

★★★★

(212) 206-8310

www.capsuleshow.com

★

★★

20-23

Denver Apparel & Accessory Market

Denver, CO

•

(800) 289-6278

www.denvermart.com

26-30

Atlanta Apparel Market

Atlanta, GA

•

(404) 220-2384

www.americasmart.com

29-31

Australian Shoe Fair

Melbourne, Australia

•

613-9654-7773

www.aec.net.au

N/A

31-1

Chicago Shoe Expo

Chicago, IL

•

(312) 943-3800

www.chicagoshoeexpo.com

★★

1-3

China International Footwear Fair & Moda Shanghai

Shanghai, China

•

(852) 2827-6211

www.ciff.aplf.com

N/A

2-4

SIMM- Madrid Fashion Week

Madrid, Spain

4-6

Accessoire Avenue- MIDEC

Paris, France

•

fashion show

4-7

Who's Next

Paris, France

9-16

Mercedes-Benz Fashion Week

New York, NY

•

10-12

GDS

Dusseldorf, Germany

•

14-16

SMOTA- Shoe Market Of The Americas

Ft. Lauderdale, FL

•

17-22

London Fashion Week

London, UK

19-22

MICAM Shoevent

Milan, Italy

21-22

(capsule) New York

New York, NY

21-23

AccessoriesTheShow

New York, NY

21-23

Moda Manhattan

New York, NY

•

21-23

Coterie

New York, NY

•

21-23

Sole Commerce

New York, NY

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23-26

Sapica

Leon, Mexico

•

24-26

Modacalzado & Iberpiel

Madrid, Spain

•

N/A

www.ifema.es

33 (0)142-4422-44

www.ff-maroquinerie.fr

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N/A

www.whosnext.com

(646) 871-2400

www.mbfashionweek.com

★★★★

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★★★

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(312) 781-5180

www.mdna.com

★★★★

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(786) 331-9000

www.smota.com

★★★

N/A

www.londonfashionweek.co.uk

(39) 02-438291

www.micamonline.com

★★★★

(212) 206-8310

www.capsuleshow.com

N/A

(212) 686-4412

www.accessoriestheshow.com

•

(212) 686-4412

www.modamanhattan.com

★★★

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(212) 759-8055

www.enkshows.com

★★★

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(212) 759-8055

www.enkshows.com

★★★

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(477) 152-9000

www.sapica.com

★★★

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(34) 91-772-3000

www.ifema.es

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• •

N/A ★★★

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fashion show •

★★ ★★★

• fashion show

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This issue is brought to you by:

N/A

★★★★

LEGEND ★ Awful ★ ★ OK ★ ★ ★ GOOD ★ ★ ★ ★ Awesome

Show dates and locations were accurate at the time of printing and subject to change without notice. Please contact venues directly for the latest information.

FFR’s ratings are based on reports from our correspondents, contributors, vendors and retailers who attended these events. Ratings reflect people’s opinion of show organization, traffic, convenience and value for attending /participating businesses. August 2010

Such moves are now the norm for department store players. Neiman Marcus will be opening between one and two of its full-line department stores annually through 2013. The Dallas-based chain is expected to put most of its expansion emphasis behind its outlet concept, Last Call, over the next couple of years, though full details were not available as this report went to press. Neiman opened three new Last Call stores in 2009. Last Call’s preferred template is roughly 28,000 square feet in outlet centers. Saks opened a number of Off 5th stores over the last half of 2009, including new stores in the Cincinnati, Los Angeles, Raleigh/Durham, Reno, San Antonio and San Francisco Bay markets. Off 5th stores typically take 30,000 square feet of space.

We are currently aware of one new Off 5th store planned in the Dallas market, however, our sources advise us that as many as four more stores will likely be added over the course of 2010. Going forward, look for Saks to add a maximum of just one or two of its department stores annually through 2013. Meanwhile, the chain plans on rolling out a minimum of five Off 5th stores annually over the next few years.

for at least the next five years, the moves make sense on a number of levels. Outlet malls have emerged as a strong point in an otherwise weak retail market. Despite this, stores in outlet malls typically cost about 30 percent less to lease than full-priced regional mall space. Because outlet malls are generally known for their no-frills atmosphere.

Even smaller department store chain Lord & Taylor is getting into the mix, with a 15,000 square foot outlet store slated for a mid-February opening in the Jersey Gardens Outlet Mall in Elizabeth, New Jersey.

Nowhere in the retail world are we seeing more growth than from the dollar store sector. Between different concepts, as many as 1,500 new dollar stores may be opening in the United States over the next year. Dollar General plans to open 600 stores in 2010, and to remodel or relocate up to 500. The Goodlettsville, Tennessee-based chain

Besides the obvious fact that consumers are in frugal mode and will likely remain there

Dollar Dazed

Highlights of 2010 Retail Trends and Opportunities, parts 1 & 2: Department stores are jumping on the ‘Cheap is Chic’ bandwagon over the next couple of years, joining the slew of dollars stores and pop up stores taking over vacant retail spaces left behind during the recession over the last two years. Retailers such as Bloomingdales, Nordstrom and Neiman Marcus are joining the trend with an increase of outlet stores opening across the US. H&M is also expanding with 240 new stores worldwide this year and Top Shop will be bringing its unique style to hipsters nationwide over the next few years.

High-end Retail Trends Highlights • Bloomingdale’s has four outlet stores planned for 2010 and is expected to boost outlet store openings further in 2011. It has openings planned for Bergen Town Center (Paramus, NJ), Dolphin Mall (Miami), Potomac Mills (Washington DC area) and Sawgrass Mills (Sunrise, FL). • Nordstrom plans on adding at least 16 new Nordstrom Rack stores in 2010, which boast price points that are about 50 percent lower than those offered in Nordstrom’s traditional department stores. Nordstrom added 12 Rack stores in 2009 (including two in Manhattan) and is actively seeking both urban and suburban sites and has signed a number of deals in big-box space vacated over the past 18 months. For example, Nordstrom Rack recently inked a deal for 36,000 square feet of former Circuit City space on Chicago’s Magnificent Mile. • Neiman Marcus is following suit and is expected to put most of its expansion emphasis behind its outlet concept, Last Call, over the next couple of years, and opened three new Last Call stores in 2009. • Saks opened a number of Off 5th stores over the last half of 2009, including new stores in the Cincinnati, Los Angeles, Raleigh/ Durham, Reno, San Antonio and San Francisco Bay markets. One new Off 5th store is planned in the Dallas market and as many as four more stores will likely be added over the course of 2010. Saks plans on rolling out a minimum of five Off 5th stores annually over the next few years.

• Lord & Taylor is also getting into the mix, with a 15,000 square foot outlet store slated for a mid-February opening in the Jersey Gardens Outlet Mall in Elizabeth, New Jersey.

Mid-tier Retail Trends Highlights (see detailed listing at the end of the article • Genesco is looking to open as many as 70 new stores across its multiple brands (Journeys, Journeys Kidz, Johnston & Murphy, Lids, Shi by Journeys, Sports Fanatic and Underground Station). • Guess plans on rolling out a new accessory concept in 2010 that could see as many as 60 new stores. • Coach plans as many as 20 stores throughout North America in 2010. • Liz Claiborne will be rolling out a new concept, LCNY, over the next 18 months. • Henri Bendel plans to expand in the U.S. in 2010. • Joe’s Jeans will be opening at least nine new outlet stores in 2010. Expansion is planned for California, Georgia, Massachusetts, Nevada, Ohio, Texas, Virginia and Washington. Footprints range between 1,400 and 3,200 square feet. • Lululemon Athletica plans on accelerating growth in 2010 and plans on as many as 15 new stores in 2010 and 25 stores annually for at least the next few years. • Shoe Carnival plans as many as 15 new stores in 2010. The chain uses between 12,000 and 15,000 square feet and is looking for deals on second generation space. • Shoe Show plans on as many as 35 new stores in the coming year. • Simply Fashions will develop as many as 25 new stores in the coming year. • Skechers plans on up to 25 new stores in 2010. The chain will look at mall or off-mall sites and has multiple prototypes ranging from 2,000 to 7,000 square feet. • True Religion will reportedly add as many as 25 new stores in the coming year. • Topshop has one confirmed new store in New York slated for 2010 opening, and Hipsters across the nation will be pleased to

added 500 new stores in 2009. The chain has no presence on the West Coast and less than a handful of stores in New England—both areas of the U.S. where we expect to see a significant push for market share over the next couple of years. Dollar General’s ideal format is about 9,000 square feet. Family Dollar stores typically range between 7,500 and 9,500 square feet. The chain is increasingly looking for more suburban sites, thanks to improving sales from middleclass demographics. The chain opened 43 stores in just the final quarter of last year and roughly 130 new units over the course of 2009. Our sources tell us that the Matthews, North Carolina-based chain will be boosting growth levels in 2010, perhaps by as many as 200 new stores in the months to come.

Dollar Tree Stores currently operate over 3,700 stores nationally under the Dollar Tree, Only One Dollar, Deal$ and Dollar Bill’s banners. Its preferred format is between 8,000 and 12,000 square feet. The Chesapeake, Virginia-based chain prefers to be in ma¬jor shopping centers with grocery or big box anchors and plans to add as many as 220 new stores in 2010. Another 80 Dollar Tree stores are slated to be relocated or expanded in the coming year. Its Deal$ concept will account for 25 of these new stores. Deal$ stores carry items priced at about $1 with few items in the store topping the $10 mark. Look for dollar store chains to emerge as the strongest growth sector in retail (at least in terms of unit counts) over the coming year. But consumers are fickle

know that as many as 15 stores throughout the U.S. are planned over the next four years. • Zara is planning for as many as 10 new U.S. stores in 2010. California, Florida, Georgia, Illinois, Nevada, New Jersey, New York and Texas are the focal points for growth in the coming year. Worldwide expansion plans for Zara call for 450 new stores over the next two years. • Urban Outfitters plans on 50 new stores in 2010 and opened about 35 new stores in 2009. • H&M is aggressively expanding and pursuing urban streetfront retail and mall sites. It is currently on track to add about 240 new stores worldwide this year.

General Retail Trends Highlights • 2010 is the “year of the pop up store” with retailers such as Walmart and Target joining the fray in urban settings such as Chicago. • Target is expected to replace the century-old Carson Pirie Scott store in this Louis Sullivan-designed building in Chicago. • The innovative use of retail spaces will continue to rise, for example: n In the upscale Sacramento suburb of Rocklin, California, an 80,000 square foot vacant Mervyn’s store is currently being converted to theater space. n Vacated boxes in Rohnert Park, California (former Linens N’ Things), Austin, Minnesota (former K-Mart)

and the current “thrift is in” mentality will eventually transform into something else as the economy slowly improves. In the past, dollar stores have struggled to maintain a client base with middle income consumers. One trend we are seeing that could have strong implications (both for the success of dollar store chains and for challenges to the grocery sector) is the continued addition of food items by many chains, requiring re¬modeling. All of these are positive signs, yet we are also seeing some players hedging their bets. There are a few chains that are opting to sign shorter-term leases of just three to five years. Many of these deals feature renewal clauses for just a year at a time. It’s a smart play. It will give many operators the leeway to cut back in a few years, assuming that consumers eventually tire of thrift.

and Round Rock, Texas (former Walmart) were all recently converted to indoor go-kart racing facilities. n Other examples include former K-Marts converted into libraries, a CompUSA converted into temporary museum space and boxes have been used for indoor swap meets, churches or Department of Motor Vehicles offices.

• Look for dollar store chains to emerge as the strongest growth sector in retail (at least in terms of unit counts) over the coming year. n Between different concepts, as many as 1,500 new dollar stores may be opening in the United States over the next year. n Dollar General plans to open 600 stores in 2010, and to remodel or relocate up to 500. n Family Dollar opened 43 stores in just the final quarter of last year and roughly 130 new units over the course of 2009. n Family Dollar will be boosting growth levels in 2010, perhaps by as many as 200 new stores in the months to come. n Dollar Tree Stores currently operate over 3,700 stores nationally under the Dollar Tree, Only One Dollar, Deal$ and Dollar Bill’s banners and plans to add as many as 220 new stores in 2010.

Garrick H. S. Brown, National Retail Research Director, Colliers International Colliers International is a leading global real estate services firm that operates in 61 countries. For more information, please go to: http://www.colliers.com

It’s Too Soon to

Celebrate as Pent-up Demand for Luxury May Have Crested -Affluents Remain Cautious about Indulgence Spending Going into the Third & Fourth Quarters

tevens, PA July 21, 2010 -- Luxury marketers have enjoyed a few brief quarters of spending patterns that seemed to be returning to a prerecession ‘normal,’ but it is too soon to be singing “Happy Days Are Here Again.” Unity Marketing’s exclusive Luxury Consumption Index (LCI) has stalled at 78.3 points in July 2010 as affluent consumers reflect uncertainty about prospects for the economy in the next three months. Because the LCI has proven a reliable predictor of consumer behavior, this stalling is reason for concern. In one of the five key measures that make up the index, significantly more luxury consumers (36 percent) say the country as a whole is worse off now as compared with three months ago; that reflects a rise from only 31 percent who said the same in March 2010. This according to a survey of 1,349 luxury consumers conducted from July 3-8, 2010 (Average income $306.7k and net worth $15.2 million; 44.8 years; 45 percent male and 55 percent female).

Value positioning key for luxury success through third and fourth quarters 2010. Commenting on what the latest findings from Unity Marketing’s Luxury Tracking Study project for the luxury market through the end of the year, Pam Danziger, president of Unity Marketing said, “Without a doubt the luxury consumer market is in a much better place today than it was a year or so ago, but the latest survey warns marketers not to ease up or be over-confident that the recession’s effect on the luxury market are over. “Nearly three out of four luxury consumers surveyed believe that the recession continues, which in turn impacts spending on luxury goods and services. Marketers are advised to continue to position luxury as a value proposition, by keeping luxury connotations and image up front in advertising, packaging and service, but communicating in a very subtle, almost one-on-one way, affordable pricing,” Danziger explains. Among the findings in the latest Luxury Tracking Study: • Spending on luxury rose a modest 7.7 percent quarter-to-quarter. Luxury consumer spending, however, rose dramatically year-overyear, up nearly 60 percent from $19,952 on average to $31,665. Unity

expects the same trends toward modest quarter-to-quarter spending increases to continue throughout 2010. Luxury marketers must remain vigilant to rising competition coming from mass and premium brands that offer increasingly high-quality goods at price points significantly less than the upper-tier luxury brands command. For example, Ann Taylor Loft, the company’s “upper-moderate” priced brand, tops the list of fashion boutique destinations for ultra-affluent shoppers (22 percent) in the second quarter, way ahead of higher-priced Ann Taylor brand (12 percent). • Trending categories that attracted higher levels of spending amongluxury consumers in the second quarter included: o Luxury beauty and cosmetics, especially perfumes, sun care and skin care products; o High-end cook’s tools, notably small kitchen appliances; o Luxury clothing and apparel, with men continuing to up their game in fashion; o Luxury fashion accessories, as men’s brief cases, lap top cases, carryalls and wallets posted strong growth in spending; o Home electronics, as promotionally-priced high-tech televisions attracted more buyers; o Travel, which exceeded quarterly expenditures throughout 2009 and first quarter 2010.

on this cautious attitude until the beginning of 2011. As marketers and retailers plan for the critical fourth quarter, they will need to keep promotions in play, as consumers will continue to hold back without the extra incentive of discounts or added-value deals that sweeten the pot.” For more information about the Luxury Consumption Index (LCI) and the results of Unity Marketing’s latest survey of affluent consumer spending, visit www.unitymarketingonline.com or call Pam Danziger at 717-336-1600. About Unity Marketing’s Luxury Tracking Study Launched in January 2004, and every three months thereafter, Unity Marketing has measured the pulse of the affluent consumers in a longitudinal survey of 1,200+ affluent consumer households. Each quarter the Luxury Consumer Tracking Study reports what luxuries they bought during the past quarter, how much they spent, where they bought, the luxury brands they became aware of and used, and how they felt about their current and prospective financial status. A total of 22 major categories of luxury goods and services are included in the poll, including clothing, fashion accessories, home luxuries, travel, dining and jewelry.

• Aspirational affluents (incomes $100,000-$249,999) started to trade up once again to luxury. Aspirationals increased luxury spending by nearly 30 percent in the current quarter, posting their highest levels of spending seen throughout 2009. In particular they indulged in more personal luxuries, such as high-end clothing, fashion accessories, personal electronics, wine and spirits and beauty products. While the typical aspirational consumer spends only one-fourth to one-third of what an ultra-affluent consumer spends on luxury, the fact that there are about ten aspirational households to each ultraaffluent means that their aggregate spending is critical to boosting the performance of premium, as opposed to top-tier luxury brands, and retailers that target a wider range of price points. Pace of growth in luxury consumer spending to remain modest over the next two quarters. On the latest survey results, Tom Bodenberg, Unity Marketing’s chief consumer economist, said, “As we look to luxury consumer spending in the second half of 2010, affluent consumers’ pent-up demand for luxury indulgences after doing without through 2008 and 2009 has crested. We expect the pace of growth in luxury consumer spending to remain modest over the next two quarters. Affluents still have a lot of uncertainty about the economy which dictates caution when it comes to spending on luxuries. We don’t expect to see moderation

Pamela N. Danziger is a nationally recognized expert in undertanding the mind of the consumer. She founded Unity Marketing in 1992 as a marketing consulting firm for marketers and retailers that sell luxury goods and experiences. A highly sought after keynote speaker, Danziger has addressed large conference audiences, including Global Luxury Forum, Global Shop, National Retail Federation, etc. She has appeared on NBC, CBS, Fox News and CNN and is frequently called upon by the Wall Street Journal, New York Times, Businessweek, Forbes, USA Today, Associated Press, Los Angeles Times, Chicago Tribune, Women’s Wear Daily and other business and consumer publications for commentary and analysis. She holds a B.A. Degree in English Literature and a Master of Library Science degree. In recognition of her ground- breaking work in the luxury consumer market, Pam received the Global Luxury Award presented by Harper’s Bazaar for top luxury industry achievers in 2007. She is also the author of three books on consumer psychology and behavior. For more information, go to www.unitymarketingonline.com or email her at pam@unitymarketingonline.com

MASTERING SALES SKILLS

By Harry J. Friedman

You Make the Call

Take the quiz below to test your sales ability

There are a lot of professional salespeople who do an excellent job of turning shoppers into buyers. These are the kind of salespeople who love a challenge. I’ve come up with some customer vs. salesperson scenarios that are similar to situations you face everyday. Read through each one and come up with the best way to handle the sale based on what you know from your experience. When you’re done, read the answers provided and find out how well you made the call!

A customer enters the store. As you walk toward them, they say, “I’m just looking,” before you even have a chance to say hello. What do you do?

Now that you’ve had a chance to come up with your own solutions to the situations, read on and see how close YOU made the call.

Scenario #1 One of the most frustrating lessons to learn as a salesperson is how to get around defensive shields. Defensive shields are

30 1

August 2010

A customer comes into the store and immediately walks up to a particular bedroom set and begins examining it carefully. What now?

the automatic responses that customers use to get rid of pushy salespeople. Somewhere along the line, this customer used one of these responses and it made the salesperson leave them alone, so now they always use it without even thinking. Your responsibility as a salesperson is to break down customer resistance to allow you the opportunity to open the sale. The easiest way to break down customer resistance is to approach the situation as

A customer enters the store and immediately asks if you carry Line X. You don’t. How do you create an opportunity to show an alternative?

just another human being, not as a salesperson. This means that you absolutely stay away from business-related opening lines. Look at the following dialogue and notice how the salesperson involves the customer in a non-business related conversation (schmoozing) to put him at ease before opening the sale. Also, notice the line the salesperson uses “So what brought you into the store today?” as a transition into the next step of the selling process: probing.

August 2010

MASTERING SALES SKILLS

By Alan Rigg

C: “I’m just looking” S: “Terrific.” (Continue to walk by relieving pressure from the customer, then slowly turn back asking a non-business related question.) S: “Say, was there an accident up the street? I noticed a lot of traffic out in front. Do you know what happened?” C: “Yeah, someone ran the stop sign at the corner, and it’s a real mess. No one was hurt, but it really has traffic backed up.” S: “Boy, what a shame. So, what brings you into the store t3

Scenario #2 I don’t know about you, but I’ve walked into many retail stores where something caught my eye right out of the gate. Sometimes it’s something that I am interested in, some¬times it’s something that I am not interested in. The important thing to note is that unless you are that customer, you have no way of knowing. I always tell the story of walking into a sporting goods store to buy a scuba diving mask when a tennis racquet display caught my eye. I don’t like to play tennis, but my brother does. He told me just prior to my trip into the store than he had purchased a new tennis racquet and when he told me how much it had cost, I couldn’t believe it. When I saw the display of tennis racquets that looked like the kind he had described to me, I had to investigate. As I mentioned, I don’t play tennis and I didn’t plan on starting that day either. I was merely curious. Sure enough, a well-meaning salesperson approached me immediately and began

to demonstrate the tennis racquet without as much as a hello. If he would have stopped to find out what I was all about, and why I came into his store that day, he would have made a very fine sale on a scuba diving mask. I was so frustrated by the time he was done demonstrating the racquet that I left the store without making a purchase. Ignore any temptations to use the Merchandise Approach (making a comment on the product the customer is looking at). This over-used approach is business-related, and you have no sure indication that they have any more than a passing interest in that particular item. If they are interested, they will let you know (after you schmooze a little to break down any resistance). If not, you’ll only appear pushy and will likely antagonize them. Take a look at the following dialogue. This is how I would have handled the customer: S: “I couldn’t help noticing your jacket; I just love it. Did you get it somewhere near here?” C: “Yes, I got it at the clothing store next door.”

WHY PERFORMANCE-BASED RECRUITING PRODUCES TOP SALES PERFORMERS

to them which you can point out during the demonstration of your merchandise. S: “Tell me, why have chosen that particular line?” C: “My neighbor recommended it. He says they make high-quality furniture and offer a wide selection.” S: “Yes, high quality and a wide selection certainly are important features. You know, our buyers have the opportunity to choose any line available. Unfortunately, this year they have not selected that one in particular. Since high quality and selection is important to you in choosing a bedroom set, I’ve got one that I think you’ll love. May I show it to you?” Although the scenarios discussed in this article only skim the surface of the situations you deal with daily, I hope they give you more sales tools so you won’t get caught unprepared. By continually adding more techniques to you basket of selling tools, you’ll be better prepared to make the right call and close the sale!

any recruiting ads and job descriptions include “knockout factors” that can actually screen out qualified sales candidates. One example is a requirement that candidates have an undergraduate degree, a graduate degree, or a degree in a specialized field of study such as Engineering. Another example is a requirement that candidates have a minimum number of years of sales experience.

S: “Really? I hear they have some great things. Tell me, what brings you into the store today?”

When my customers’ recruiting ads and job descriptions include these types of knockout factors, I like to have a little fun with them. I say something like:

Scenario #3: Trust is a very important element in sales, so getting your customer’s permission to switch is an aid toward gaining his trust in you. Without discounting the value or bad mouthing any other line or brand (that would be one sure way of losing his trust in you), find out why they selected the other one. Their answer to this question will give you features and benefits that are important

“(Name), imagine that I have two candidates for your sales job opening. One of them has both the college degree and the five years of sales experience that are listed as minimum requirements in your recruiting ad. The other candidate doesn’t have a c ollege degree, and she only has two years of sales experience. But, she has relationships with dozens of C-level executives that are good prospects for your company’s products and services. She could easily book fifteen appointments during her first week on the job. Which candidate would you prefer?” As you might expect, my customers always choose the candidate with the relationships. That is when I have to deliver the bad news:

Harry J. Friedman is an internationally acclaimed retail consultant and CEO of The Friedman Group. Since 1980, his retail sales and management techniques have been used by over 500,000 retailers worldwide. He is retail’s most heavily attended speaker and widely read author, with articles published over 500 times in national trade magazines and his best selling book No Thanks, I’m Just Looking! now in it’s 9th printing. He has also developed scores of retail training programs, retail’s most popular management seminars, and has contributed to the success of many of retail’s best-in-class organizations. For a FREE subscription to his monthly On The Floor Journal enewsletter, information on upcoming retail seminars, training programs, or on-site consulting, call 800-351-8040 or visit www.thefriedmangroup.com.

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August 2010

HIRING

“(Name), unfortunately you will never see this candidate, because she is being screened out by your knockout factors!”

August 2010

MASTERING SALES SKILLS

By Alan Rigg

WHY PERFORMANCE-BASED RECRUITING PRODUCES TOP SALES PERFORMERS

S: “Really? I hear they have some great things. Tell me, what brings you into the store today?”

When my customers’ recruiting ads and job descriptions include these types of knockout factors, I like to have a little fun with them. I say something like:

32 3 3

August 2010

HIRING

“(Name), unfortunately you will never see this candidate, because she is being screened out by your knockout factors!”

August 2010

HIRING

If you want to improve the overall quality of your sales candidate pool, shift your focus away from education and experience and toward performancebased measures. How will you measure your new salespeople’s performance during their first thirty, sixty, ninety, and 180 days? What activities will you expect them to perform? What results will you expect these activities to produce, and in what time frame? Here is an outline for a recruiting process that focuses on performancebased factors:

1. Write a Performance-Based Recruiting Ad: As you construct your ad, consider the following questions: n What kinds of companies or organizations are good prospects for your company’s products and services? Your ad should state a preference for job candidates that have existing relationships with these kinds of companies and organizations. n Who are the most productive people (job titles) for your salespeople to call on? Your ad should state a preference for candidates that have existing relationships with people that have these titles, and/or a proven ability to prospect successfully to people at similar levels. n What specific sales production (such as pipeline dollar volume, sales dollar volume, etc.) do you expect your new salespeople to produce during their

first 90 days? Make this expectation crystal clear in your recruiting ad!

2. Scrutinize Resumes for Accomplishments: Smart salespeople know that results sell. When these salespeople prospect, they talk to potential prospects about the results their companies have produced for customers. When they write resumes, they write about the results they have produced and their other accomplishments (awards, recognition, etc.).

3. Conduct Telephone Screening Calls: For candidates that have interesting resumes, schedule a 20-30 minute telephone screening call. This will give you an opportunity to ask performance-based questions related to two critical performance factors: the candidate’s relationships and their prospecting activities. Here are sample screening call questions: n Who do you know that might be a prospect for our company’s products and services? n What relationships do you have that could be leveraged for appointments during your first few weeks on the job? n What activities do you typically include in your prospecting plan? n What percentage of your time do you spend on each activity? n What results have these activities produced for you in the past?

n How long did it take before you started making quota consistently in your current job?

4. Assess Qualified Candidates: For candidates that pass the telephone screen, gather objective information about their talents via specialized sales assessment tests. The most effective sales assessment tests go beyond personality and behavioral traits and examine attributes such as Learning Rate and Reasoning Ability.

5. Conduct In-Person Interviews: Now you are prepared to conduct thorough, performance-based interviews. Why? Look at the information you have collected! For each candidate that you are going to interview, you should have in your hands: n A resume that lists key accomplishments n Performance-based information collected during the telephone screening call n Objective information about talents that are critical to sales success If you ask performance-based questions and clearly outline your expectations for new hire sales performance, you will attract fewer poor candidates, as some will de-select themselves. You will also attract more strong candidates, as they will no longer be screened out by invalid “knockout factors”. The end result will be a steady improvement in the overall quality of your sales organization.

Sales performance expert Alan Rigg is the author of How to Beat the 80/20 Rule in Sales Team Performance: A Step-By-Step Guide to Building and Managing Top-Performing Sales Teams, and the companion book, How to Beat the 80/20 Rule in Selling: A Step-By-Step Guide to Achieving Top Sales Performance. His company, MySalesTest.com, provides specialized sales assessment tests that help business owners, executives, and managers avoid hiring mistakes and consistently hire more top sales performers. For more information and a FREE special report that will increase the effectiveness of your sales recruiting efforts, visit http://www.mysalestest.com.

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August 2010

Effective Store

SIGNAGE

by Melanie McIntosh

In this day and age of modern computers, ink jet printers and desktop publishing programs, I am still amazed to see store owners that put little effort in to producing quality signage for their stores. Signage is one of the most important ways to convey your message to your customers. Your store name, promotions, pricing, and product information may all be conveyed through signage. Are you getting these messages across effectively?

As a customer walks by your store, you have about 3 seconds to let them know what they will find inside. What message are you sending? Professional signage will attract the customer, provide just the right amount of information and invite the customer to enter your store or try your product.

Use a desktop publishing or word processing program and quality printer and paper.

Unprofessional signage is confusing to the customer and sends a negative message about your store and product. Common problems include too many signs, ambiguous or misleading messages, spelling errors or signs that are difficult to read. I don’t know about you, but I avoid stores that have signs littered throughout the store that scream, “SALE! 9.99” and in small print at the bottom they add, “and up.”

2. Simple Color Scheme Don’t go crazy with color. Pick a simple, two or three color scheme and stick with it throughout the store. Pick a background color, text color and highlight color.

Effective signage has the following qualities: 1. Quality Production You don’t have to spend big bucks to get signs that look professional. Having said that, you still need to be willing to spend a few dollars to create the image that you want to represent your business. Consider the lifespan of the sign. Exterior signage that needs to last several years requires a fairly large investment. The shorter the lifespan of the sign, the less it should cost. If you are running a small boutique, producing your own short term promotional or informational signage is perfectly acceptable, provided you have the tools and skills to do it well. If you are producing signs on your own, they should be produced on a computer, not handwritten. This might seem too obvious to mention, but I still see stores using signs that have been written in black felt marker.

If your printer and paper are not good quality, take your computer file to a print shop to produce your image. Mount your final images on a heavy card, illustration board or foam core.

Make sure that the colors have enough contrast to be easily read. Red on black, while a dynamic and high power combination, does not have enough contrast to be easily viewed. However, if the text is very large, bold and only one or two short words, you might be able to get away with it. Outlining the text with a thin white line will also improve the contrast. Also be careful with combinations such as yellow/green or orange/pink/red or green/ blue. These combinations can be powerful and trendy, but require more work with design to make them legible. Strong contrasts such as white/black, yellow/black, red/white, white/blue increase visibility and legibility. 3. Easy to Read Make your signage easy to read. Don’t try to put too much on one sign. Some signs are so full of tiny images, starbursts, exclamation marks, and small print, that you can’t take it all in. One main image, a headline and a few bullet points are all you need on an informational sign. A sign in a store window should be even simpler. You need to get your message across

immediately as the customer walks, or drives by. This means you can only use a strong image on your sign, a headline, or a simple combination of both. Some stores only use one word, such as ‘SALE’ or ‘HOLIDAY’ in the window, and provide more information inside the store. The more time the customer will be spending looking at the sign, the more information you can include. For example, a sign near your cash register, where your customer will be waiting for a transaction to be processed, can provide details of a contest or return policy. 4. Clear and Simple Message Keep your message simple. Avoid trying to say too much. Choose one main message that you want to convey.

return policy at the cash register. When you craft your sign, write down the message you want to get across, then rewrite it in as few words as possible. Keep reducing until you have one to five words for your headline. If necessary, write a small amount of supporting information below.

windows. Light colored signage will stand out, while dark colors will recede and virtually disappear behind reflections on the glass.

5. Well Placed Be careful where you place your signage. Place it where it will catch your customers’ attention, but will not block essential elements of your store. Think about how customers approach your s tore. If customers walk by your store, but your store name is only placed high up on your store front, facing the street, how will they see it? You also need to repeat the name on the door or window, and perhaps hanging from an awning or on a sandwich board on the sidewalk. Make sure signs don’t block traffic flow, displays, or the view of the interior of your store. Window signage may not be visible to customers for other reasons that you do not realize. Is there a parking meter blocking the view of your window? What about a loading zone where delivery trucks park for a large part of the day, obscuring part of your store from view?

Do you want to tell about a sale, a price, product info, return policy? Rather than say this all at once, try a sale sign on the top of the rack, price and product info on the tag, and

Check for reflections on the window that make your interior signage invisible during the day. You’ll need to check this at various times of the day to find out what happens to the light and reflections depending on the position of the sun. You can improve the visibility of your signage by improving the display lighting inside, and by using light colors in your

After placing your signs, double check how they look from a customers point of view. Step back and approach the store as a visitor. Walk from front to back and look at all your signage critically and reposition as necessary. Simplify, Simplify, Simplify The simpler you keep your signage the better. Reduce visual clutter, and focus on getting your most important message across to your customer. You will attract more walk-by traffic, and avoid confusing your customer. Your sales should increase as a result.

Melanie McIntosh is a retail consultant and owner of Inspire Retail Solutions. She helps independent retailers who are struggling to get more customers in the door. Is your store appearance actually turning customers away? Find out more here: http://www.inspire.bc.ca Melanie’s articles and interviews have appeared in Retail BC’s Retail Connections magazine, Western Home Furnishing Association’s Western Retailer, Intimate Apparel Business, Arabian Retailer, Teeze magazine, edplay magazine, and LA Apartment, among others.

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As a service to our worldwide audience, Focus on Fashion Retail regularly conducts surveys to determine satisfaction with the various footwear, apparel and accessories trade shows and to rank our readers’ favorites. Being an independent media outlet not affiliated with any trade show, we believe that peoples’ opinion must be heard, it adds up to the value of our services as well as serves the needs of the industry. As always, in the closing issue of the year (November) we will be announcing and reviewing the TOP 10 TRADE SHOWS of 2010. For that purpose, we will be conducting this survey throughout the year, offering to rate performance of various shows. Events collected the maximum score will make it to the final list.

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KISSED@kissedpr.com

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Retail Price Point: oDiscount oBudget ($20-40) oModerate ($40-70) oUpper Moderate ($70-120) oLower High End ($120-$200) oHigh-End ($200-$400) oLuxury ($400+)

1) CSO, Chief Sourcing Officer Footwear for a Retail conglomerate;

Store Type:

oIndependent oBoutique oDept. Store oChain Store 1-5 Locations oChain Store 5+ Locations

Merchandise:

oShoes Only oApparel Only oAccessories Only oAll

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KissedPR will be accepting applications for designers to participate in an exclusive 2010 Fashion Week event. The event will be held in a chic Manhattan location in New York City during September 2010 Fashion Week. This fashionable affair is guranteed to be covered by a national magazine, attended by celebraties, and offer designer exposure during fashion week. Designers will have an opportunity to sell and meet with all posh patrons including editors, celebraties, stylist, photographers, etc... If interested and want more information, please email your company name, information, lookbook photos to

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Looking for Emerging Designers for 2010 Fashion Week

Your Primary Business Sources (describe): o Trade Magazines ________________________________________________________________________________ o Consumer Magazines ____________________________________________________________________________ o Trade Shows ___________________________________________________________________________________ o Internet oCatalogs How Do You Find New Merchandise?: oAt Trade Shows oResponding To Ads oSellers Contact You At Trade Shows You: o Know Exactly What You Need And Who Sells It o Know Exactly What You Need But Don’t Know Who Sells It o Just Looking How Frequently Do You Purchase Merchandise For Your Store?: o Every Month oEvery 3 Months oEvery 6 Months Your Average Purchase Is: oLess Than $1,000 o$1-5k o$5-10k o$10k+ Your Priorities Are (Please RATE, 1 is most important): oPrice oFashion oBrand o‪Quality oOther________ RETAILER: Please name your 3 biggest headaches to which you want to find a solution: 1. _____________________________________________________________________________________________ 2. _____________________________________________________________________________________________ 3. _____________________________________________________________________________________________ What do you would like to see in trade magazine? ________________________________________________________________ ___________________________________________________________________________________________________________

2) CSO, Chief Sourcing Officer Hard Lines for a Retail conglomerate; 3) LINE BUILDER/PRIVATE LABEL SALES, women’s & juniors footwear to work with chains like Shoe Show & Bakers. SEND RESUME TO:

susanproffitt@gmail.com,

Tel. 847-858-8829

Sn. Account Executive 75k Sn. Account executive position at a luxury fashion company paying 75k plus commission.

Line Offered Experienced Independent Sales Representative wanted for established highly successful and motivated women’s fashion forward shoe company. Must have proven growth track with independent and regional retailers. Territories: Southwest, and Southeast. Compensation based on highly motivated footwear experiences. Send Resume to: info@josephgriffinshoes.com

The Footwear Industry Insiders Network is FREE to footwear & related products professionals worldwide. Already more than 1,800 have joined, making it one of the fastest-growing, industry specific groups to cover all areas of expertise from design, manufacturing, wholesale, retail and more. www.footwearpros.ning.com

BUYING! Let us help you clear out your closeouts, overstocks, returns and cancellations. Please email me at: info@richlan.net RICHLAN INTERNATIONAL SALES

JOB OFFER DESIGN DIRECTOR JUNIOR GIRLS & WOMEN’S APPAREL Southern CA Must have experience managing a team. Relocation within US only.

Must have a luxury background.

Send resume to:

bledsoeagency@gmail.com

mila@responseco.com

WANTED:

New Fashion Designers Bloomingdale’s has instituted its first ever designer open-see for women’s ready-to-wear and accessories. Burgeoning designers are encouraged to visit the flagship’s Fashion Office on the first Friday of each month, on a first-come, first-served basis. Please bring a maximum of ten apparel pieces. We applaud the store’s effort to seek out new talent and promoting young designers, a smart move especially in this difficult economic climate.

Bloomingdale’s Fashion Office, 155 E 60th Street, 11th floor,

212-705-3437 OFFER: FASHION APPAREL PRODUCTION FACILITIES WITH EUROPEAN QUALITY STANDARD FOR SMALL ORDERS AND FLASH COLLECTIONS I am representing a group of certificated ISO 9001 Portuguese Manufactures of Circular Knits High-End Quality Fashion Apparell (Poloshirts, Rugbyshirts, Sewatshirts, Cardigans, etc). Now, we are offering for small orders or flash collections the same type of production facilities that until now were reserved exclusively for brands with significant production volumes. If you are working in a niche market with a high quality design style, developing a new brand or a flash collection and are sick of seeing all doors closed, please do not hesitate to contact me. I’m sure you will find the best production partner for your needs

E-mail to António at

small.is.beautiful@clix.pt

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If you wish to receive FFR regularly by subscription, filling out the Marketing Survey portion is optional

SUBSCRIPTION

State:______ Zip: _____________________________________

Phone: _________________________________________________

Fax: _______________________________________________

Name: _________________________________________________

E-Mail: _____________________________________________

MARKETING SURVEY

Please fill out this form completely, answering ALL questions. Incomplete or inaccurate entries will not be considered.

oMen oWomen oChildren

Age Group:

oInfants And Kids oTeens o20-30 o30-45 o45+

KISSED@kissedpr.com

WANTED:

Retail Price Point: oDiscount oBudget ($20-40) oModerate ($40-70) oUpper Moderate ($70-120) oLower High End ($120-$200) oHigh-End ($200-$400) oLuxury ($400+)

1) CSO, Chief Sourcing Officer Footwear for a Retail conglomerate;

Store Type:

oIndependent oBoutique oDept. Store oChain Store 1-5 Locations oChain Store 5+ Locations

Merchandise:

oShoes Only oApparel Only oAccessories Only oAll

Type:

•

• •

• • • • • •

I certify that I am: oA Retailer__________________(signature) / oNot a Retailer If a retailer, please tell about your store: Specialty:

Looking for Emerging Designers for 2010 Fashion Week

2) CSO, Chief Sourcing Officer Hard Lines for a Retail conglomerate; 3) LINE BUILDER/PRIVATE LABEL SALES, women’s & juniors footwear to work with chains like Shoe Show & Bakers. SEND RESUME TO:

susanproffitt@gmail.com,

Tel. 847-858-8829

Sn. Account Executive 75k Sn. Account executive position at a luxury fashion company paying 75k plus commission.

BUYING! Let us help you clear out your closeouts, overstocks, returns and cancellations. Please email me at: info@richlan.net RICHLAN INTERNATIONAL SALES

JOB OFFER DESIGN DIRECTOR JUNIOR GIRLS & WOMEN’S APPAREL Southern CA Must have experience managing a team. Relocation within US only.

Must have a luxury background.

Send resume to:

bledsoeagency@gmail.com

mila@responseco.com

WANTED:

Bloomingdale’s Fashion Office, 155 E 60th Street, 11th floor,

E-mail to António at

small.is.beautiful@clix.pt

Fe b r u a r y 2 0 1 0

August 2010