Retail Expert Q & A A Conversation with Industry Veteran Tom Park

A30-year industry veteran, Tom Park specializes in helping retailers maximize opportunities and turn around struggling businesses, from financing to day-to-day operations. Park pioneered experiential retail during a decade in various leadership positions at The Walt Disney Company, including President of The Disney Store and a series of roles with Disney Consumer Products.

As President at Sears Holdings, Park oversaw the modernization of Sears’ storied brands; during his tenure, Kenmore become the first major appliance brand to be sold on Amazon, while The Craftsman Brand was sold in 2017 to Stanley Black & Decker for $900 million. Park has also served as CEO of Incipio Group, a consumer products company, and COO at Belkin International, where during his dozen years the business doubled to $1 billion.

Since December 2020, Park has been Managing Director at Chicago-based Portage Point Partners, where he oversees the United States market for consumer retail; he also serves on several advisory boards. Park graduated from Villanova University in 1979 with a bachelor of science degree in accounting.

As the pandemic recedes in the U.S., Park, who lives in Los Angeles, thinks savvy retailers will take advantage of pent-up demand for the in-store experience. “Travel is picking up, and the gift business is coming back,” he told SGN in July. “If it’s the first souvenir you’ve bought in 18 months, you’re going to have fun with it.

ing to even out after the stimulus ends. Many retailers are dealing with liquidity challenges: They’ve taken on a lot of debt to get through last year, when they weren’t making any money at all. It’s hard to start back up after that.

We can solve some of the supply chain problems with local sourcing. When I ran Baby Style, an ecommerce startup, back in the 1990s, there was a time when the ports were shut down. That was a problem because all our products were made in China. So we turned around and had baby clothes manufactured right in L.A.

With labor, a big mistake many retailers make is not training staff well. Employees want careers. So you have to say, “We’re not just going to have you watch

“Service is the secret sauce for a specialty retailer. People want that human touch, to have conversations. Once you establish a relationship, they’re going to come back next month to see what’s new. Create a warm, well-merchandised environment: ‘Have you seen this? Take a look — this is kind of fun.’ Create thoughtful gifts around the traditional gift-giving occasions — Mother’s Day, Father’s Day, Valentine’s Day. Advertise them, and make them hard to get: ‘I only have a hundred of these.’ People like that.”

– Tom Park, managing director, Portage Point Partners, and a 30-year retail industry veteran

“The joy of shopping is what’s been missing. People are tired of doing everything on a computer. Getting out of the house, talking to a sales person, discussing whether to buy an item or not — that’s the opportunity for retailers right now.” the cash wrap; we’re going to train you to merchandise, develop real skills.” Offer your employees the opportunity to be not only a $15-an-hour employee, but part of the business — learning merchandising, tracking trends. Think of training as compensation; it doesn’t cost much to offer.

Souvenirs, Gifts & Novelties

(SGN):

What are the top issues that retailers are facing today?

Tom Park: The supply chain and labor shortages have been real problems, although I think they’re go-

Be creative about incentives. Sales bonuses, maybe even healthcare. I know that’s not what small retailers want to hear, but if you want to make sales, you have to have a great team.

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SGN: In your retail roles, what have you learned about the shoppers’ mindset — how to capture their imaginations?

Tom Park: At Disney, our job was not only to sell products, but to promote the brand; people wanted to hear what was going on at Disney. One time, when a Tarzan movie was coming out, we transformed the whole store into a jungle — it was a total experience. Our merchandise and products had to be consistent, and our employees had to know everything about not only the items, but also the movies and the whole world of Disney.

Apple is a company that does a great job with that. You walk into an Apple store, you feel the brand, you get excited by all the products. It’s fun. You don’t get that feeling buying an iPhone in a Verizon store.

Independent retailers have to really differentiate themselves from the big box stores, because the competition is so much stronger nowadays. If you say the refrigerator is going to be delivered at 2 p.m. on Thursday, deliver it at 2 p.m. on Thursday. With Kenmore, we knew what kind of door handles people liked on their refrigerators. That attention to detail is what made it a top brand for 100 years.

Shopping is also the joy of the hunt. Especially for the gift and novelty business, customers usually don’t know what they want when they walk in the store. So you’ve got to have items that are special and unique, and really market them.

SGN: What are your top tips for operating a successful store?

Tom Park: Service is the secret sauce for a specialty retailer. People want that human touch, to have conversations. Once you establish a relationship, they’re going to come back next month to see what’s new.

Create a warm, well-merchandised environment: “Have you seen this? Take a look — this is kind of fun.” Create thoughtful gifts around the traditional gift-giving occasions — Mother’s Day, Father’s Day, Valentine’s Day. Advertise them, and make them hard to get: “I only have a hundred of these.” People like that.

Collectibles is a real opportunity for the independent stores. I ran the Disney collectible programs for many years, and we let people know in advance about limited edition products. Have a good loyalty program: “We have these coming in next week, I’ll set one aside for you.” Create a real club atmosphere. Big box retailers, they just can’t do that.

On the financial side, have a keen eye on your P&L and working capital. Measure your pricing, stay focused on your margin. You’ve got to pay that bill when the loans come due.

You don’t want to lose out because you’re priced too high. It’s tough because mass marketers have put a lot of pressure on pricing; they have economies of scale that you don’t. If you have a more unique item, you have to articulate why it costs 10 percent more.

SGN: As the United States enters a new phase of the pandemic and looks ahead to its aftermath, what retail trends do you see?

Tom Park: Being successful coming out of this and going forward is all about the customer — creating the customer experience. Retailers that do that are going to thrive with this pent up demand.

Amazon, Walmart and Target have dominated the retail landscape in recent years. During the pandemic, their delivery systems have gotten even better. They’re only going to get stronger.

So if you’re a brick-and-mortal retailer, you have to have something more to offer — unique merchandise, a fun experience, that personal touch. Independent stores have a much better chance to thrive than malls, which have no foot traffic right now.

You have to let people know what you have. The future is going to be digital marketing. Everybody’s on Facebook, on Google. A good website is important; if you don’t have one, get one. And make sure people can find you on their mobile device.

For instance, I’m in New Jersey right now on vacation, and if I want something, I’ll look some place up and go there. Before, I’d just wander the street looking. ❖

10-13, 2021

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