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1010 Tested Ideas That
Move Merchandise
An appliance retailer gets an idea—keep the store open until the
wee hours for several days running and stage a special price event;
"the late bird gets the worm." For reasons rooted perhaps in psy-
chology, the idea clicks. In short order, several giant manufacturers
are giving their appliance outlets complete programs for "Sella-
thons."
A druggist concludes that it would be a nice gesture to present a
little package of baby necessities to mothers of newborn babies. Soon
several giant manufacturers are packaging these gift assortments at
the factory and building complete marketing programs around them.
A food outlet, in its nonfood section, bands certain soft-goods items
in lots of twos and threes and gives them a special price. The "two-
f er" idea is born and this, in time, leads the giant Coca-Cola to the
development of the six-pack as well as leading innumerable manu-
facturers in other merchandise classifications to the development
of new concepts in size of sales unit.
Some nonfood outlets get the notion that, since food produces
enormous traffic, why not add food? The direct result—the fastest-
growing outlet for food today is the nonfood outlet and die food
processors have had to adjust their marketing programs accordingly.
The vast suburban shopping center started as a retail idea. It has
revolutionized the total marketing process of practically every manu-
facturer of consumer merchandise.
The food super decides it would be a good idea to supplant the
v
vi FOREWORD
layout of the booth, its construction, its various services, how to pro-
mote it, etc. And some manufacturers have found that this is a good
point at which to question shoppers regarding new products, etc.
A druggist decides that, while customers wait to have prescrip-
tions filled, sales might be made if special items are displayed in the
adjacent area. Now many manufacturers have specific programs de-
signed to get their merchandise into this section as a second location.
A food retailer tacks a small aluminum tray in front of his meat
counter and displays packaged seasonings in the tray. He tries the
same idea at the produce section displaying bottled salad dressings
in the tray. Thus the idea of the shelf extender is born—and scores
of manufacturers now offer the trade shelf extenders.
A department store concluded that the fashion show really need
not limit itself to ready-to-wear. The result—manufacturers of fine
china, conversational furniture pieces, silverware, are now horning
in on the fashion show.
Retailers find that shoppers are increasingly inclined to trade
themselves up. These retailers must actually pressure some suppliers
to bring out higher price lines which then do extremely well for
retailer-manufacturer.
Retailers begin to use a P.A. (public address) system. They sug-
gest to manufacturers that they would like to get competent "com-
mercials" for use on the P.A. system. The manufacturers who oblige
get effective promotion at the very best spot—the point of sale.
A retailer, years ago, got the notion that special gift wrapping
might be appreciated by his customers. Today, gift wrapping is a
huge business—and has led many manufacturers to develop special
factory gift wraps.
Giant shopping centers have a giant problem—attracting sufficient
shopper traffic. They begin to stage entertainment programs for the
mall; for the parking lot. Before long, several manufacturers are
traveling acting troupes and building around these entertainment
programs complete promotional programs.
A home furnishings dealer decides it would be an idea to bring
rugs to the prospective customer—bring rugs right into the cus-
tomer's home. Thus the era of in-home selling of home furnishings,
appliances, etc., is ushered in. In time, manufacturers develop
complete in-home selling programs for their retailers. (In early 1962,
even some of the variety chains were beginning to send out in-home
FOREWORD ix
tions. And certainly, if there is one function that the wholesale sales-
man simply must perform, it is the function of bringing helpful ideas
to his customers—new and still newer ideas, time and time and time
again.
Of course, we anticipate that retailers, also, will find this collection
of 1010 ideas to be a strong right arm in the development of grand
strategy concepts, and ranging down from there to everyday ideas
that move more merchandise every day. Never before has the re-
tail fraternity had made available a collection of 1010 tested ideas
covering the broad spectrum from top-level strategy to store-manager
concepts to stock-boy ideas, covering every field of retailing and
every merchandise classification—interpreted and explained for
broad application.
It is entirely plausible to suggest that this volume could very well
become a textbook used by retailers in their training programs for
executives, for store managers, for rank-and-file salespeople. And
we are hopeful it will also be made available to students of retailing
in our universities as one method of seasoning retail theory with
practical retail imagineering.
It has been said that one of the most effective ways to develop
ideas is to jump into the sea of ideas.
Here are 1010 tested ideas that move merchandise—big ideas,
medium-sized ideas, little ideas. Each one tested in use. Each one
proved successful.
Manufacturing executives, manufacturer's salesmen, wholesale
executives and their salesmen, retail executives and store managers
and their salespeople might benefit by donning a scuba outfit and
diving into this sea of ideas.
As for advertising agencies, publishers, the broadcast media—their
lifelines are inextricably bound in with the retail function. Each of
these factors operating in the world of marketing communications
could benefit by jumping into this same sea of ideas.
Foreword v
xiii
SECTION 1
32 "Grand Strategy"
Concepts That Move Merchandise
The Coming Era of $10 Billion Retail Giants
When the A&P hit a $5 billion annual turnover rate, it marked the
first time in this country that a retail organization passed that gi-
gantic turnover total.
Twenty years ago to have predicted that a retailer would achieve
an annual volume exceeding $5 billion would have been rated as
idiotic. Even ten years ago it would have been greeted with consider-
able skepticism in most retail circles.
Moreover, Sears will—before too long—get close to and then
move past that $5 billion annual volume figure. And it is not at all
improbable that mergers now being planned will lead to several
retail organizations with an annual volume reaching up between $2
and $4 billion.
But this is by no means the end of the line so far as giantism in
retailing is concerned. Not only will we have more, and still more,
billion-dollar organizations in retailing, more and still more multi-
billion-dollar organizations in retailing, but the day is coming
when we will have several retail organizations with an annual
volume hitting a fantastic $10 billion rate!
Here Is Proof That It Can Happen:
And if you think that is impossible, we might point out that if an
American retail organization were to achieve in this country the per
capita volume hit by T. Eaton & Company in Canada, we would
have a $10-billion retailer in this country right now. Yes indeed,
Eaton's per capita volume in Canada, projected against our vastly
larger population, would mean a volume in this country perhaps in
excess of $12 billion!
So, the multibillion-dollar era of retailing is here. And it promises
to hit billion-dollar goals faster during the next five to ten years
2
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 3
than it did over the last five to ten years; and the rate in recent years
has been amazing.
Naturally, manufacturers will be profoundly affected by the emer-
gence of true giantism in retailing. Clearly, the development of giant
retailing has had a very powerful influence on all presold brands,
up to date—and, as retailer giants assume still larger stature, their
influence on all brands will become still weightier.
How Real Retail Giantism Will Come About:
Still larger—very much larger—retail organizations will come
about through:
1. Mergers and affiliations.
2. The coming together of retail organizations from different
fields.
3. The eventual appearance of a retail organization that will em
brace under one corporate roof department stores, variety stores,
drug stores, and food stores—large units and small units and every
gradation in between.
4. The eventual appearance, under one corporate roof, of retail
giants that will intensively cultivate an all-channel approach to the
shopper—retail stores of all sizes located everywhere; telephone
selling; in-the-home selling; selling around the clock, including Sun
day in some communities; selling perhaps via new concepts of TV
in the home; warehouse selling; vending machine selling; leased
departments in noncompeting stores; development of new types of
store locations.
5. And these developments will be true not only of the corporate
giants; they will be true also of voluntary chains, co-op groups, and
other forms of retail alliances. It is vital not to overlook the fact that
in the food field the independent chains are about as large as the
corporate chains, and this trend is now extending into the drug out
let, the hardware outlet, etc.
6. In brief, we will have in retailing true corporate giants and
true giantism achieved by independents by giving up parts of their
independence through voluntary chains, etc.
7. The true independents will tend to become fewer and fewer.
4 1010 TESTED IDEAS THAT MOVE MERCHANDISE
quently, they are less eager to shop. This tends to cut down the store
area the shopper can cover.
2. The fatigue factor enters into the picture. Giant stores must con
tend with a concrete fatigue factor on the part of the shopper—com
plicated by the increasing tendency for women and men to shop
with children.
3. The physical factor (as differentiated from the fatigue factor).
Here we refer to the physical problem frequently involved when
making more than one purchase. Even in the food super, it is com
mon experience for a few large nonfood items to crowd the shopping
cart, and making two trips through the check-out, out to the car,
etc., is hardly attractive to many shoppers from any standpoint.
Where shopping carts are not available, and where the purchases
are take-withs, then the physical problem is indeed a taxing one-
try it yourself, sometime.
4. The problem of locating floor personnel who may be free to
serve the shopper. During peak hours, which is when the retailer
pulls in the lion's share of his week's volume, this consumes so much
time that the shopper simply cannot cover much of the total store
area.
5. The impact of crowds during peak hours. Crowded aisles are
both an advantage and a disadvantage. They certainly tend to cut
down the shopper's "mileage" inside the store.
6. Poor visibility throughout a floor is also a factor—plus poor
departmental signing, poor directory facilities.
7. Inadequate vertical transportation from floor to floor plays a
considerable role.
8. The lack of excitement on so many mass retail floors, caused
by excessively uniform displays, almost total dependence on the
orderly display of vast areas of merchandise for attracting the
shopper, and a paucity of exciting signing, is also a factor.
9. Poor floor layout that fails to encourage and smooth out traffic
flow. The science of traffic flow on the retail floor is sadly neglected.
10. Poor housekeeping. In all of its aspects, poor housekeeping
dampens shopping ardor, and shopping ardor is needed to get
around a larger part of our new giant outlets.
11. Inadequate check-out facilities which consume an inordinate
part of die shopper's limited shopping time, improper location of
cash-wrap desks and other check-out facilities, archaic methods of
8 1010 TESTED IDEAS THAT MOVE MERCHANDISE
Conclusion:
One-stop outlets demand more one-stop, or at least more one-
half-stop shoppers, more of the time. The mere addition of merchan-
dise categories put out on open display won't solve this problem. But
a concerted attack on it, from all of the fronts we have mapped, will
surely help.
10 1010 TESTED IDEAS THAT MOVE MERCHANDISE
These editors know that their audiences are more sophisticated than
were the audiences ten years ago.
Comparison Pricing:
Take the comparison price promotion.
We wouldn't for a moment contend that it has lost all of its original
persuasiveness. But certainly the more outlandish of the compari-
sons are not believed by the more intelligent shopper—and it is the
intelligent shopper who controls the discretionary purse strings of
the nation.
Millions of intelligent shoppers even have an understanding—
vague perhaps, but still a fair grasp—of "margin" and "mark-up."
They know that mark-downs of 70 per cent are not quite likely!
Yet, by and large, comparative price advertising by many retailers
continues to scream its "bargains" to an audience that presumably
is moronic—because only a moronic audience could accept some of
these price claims.
Another Example:
This is now an age of credit retailing. But some retail merchan-
disers seem unaware that millions of educated shoppers have come
to have at least an inkling of the cost of credit. An astonishing
number of shoppers now know that credit may cost them 18 per
cent, and more. (This is why one large department store recently
announced a lower interest charge.)
Indeed, even among the least fortunate among our people, knowl-
edge of credit costs is spreading. This has become painfully evident
to merchants operating old-style credit apparel stores in several
parts of the country. These stores really made their profit on credit—
and it was a generous profit based on mark-ups of 100 per cent and
more on apparel. Most of these credit clothing chains are doing
poorly because now even their customers can no longer be fooled;
these customers are now turning to other outlets where credit
charges are not outrageous.
Other Examples:
The more sophisticated shopper is beginning to wonder a bit
about the benefits to her of self-service retailing. Some shoppers, for
instance, are wondering whether the time, trouble, hazards, and
costs
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 13
Television came into homes faster than did radio. Stereo is coming
into homes infinitely faster than did Edison's early phonograph.
Home air conditioning is coming faster than did central-heating
systems.
People who bought strictly by the seasons now buy more and
more out of season (a change that has yet to be properly reacted
to by some retailers). Eye make-up came in many times faster than
did lipstick years ago. (A sophisticated people accept change
faster—accept new concepts faster.) A sophisticated people want
better quality; they want to trade up.
So—check into this new sophisticated shopper. Too seldom has
basic strategy been adequately adjusted to the new requirements of
these shoppers whose discretionary dollar is really the target of
modern merchandising.
The New Importance of Secondary Locations
For the entire decade of 1950 to 1960 the great locational objec-
tive of most retailers has been to seek out top locations. This has
taken the form of top location in the most modern shopping centers
and top location in the most heavily trafficked highway locations.
But in every decade there are only a limited number of the
choicest retail locations. Consequently, not only has the rapid ex-
pansion rate of mass retailers, plus their concentration on one-stop
outlets, brought about something of a scarcity in top locations—but
the price for a top location is beginning to reflect a scarcity value.
Now it is axiomatic in business that every headlong rush in one
direction automatically creates a real opportunity in precisely the
reverse direction. The opportunity in the reverse direction may not
be as large, in total, as the direction that everybody is taking, but,
since so few will take the reverse direction in the early stages, the
"pickings" can nonetheless be extremely lush.
The First Signs of the New Locational Trend:
Consequently we began to see evidence of the beginning of a
new interest in secondary locations for retailing—and even in ter-
tiary locations.
These include retail locations in run-down areas and in down-
town and neighborhood sections from which other retailers are ac-
tually fleeing. They include less desirable shopping centers—bear
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 15
50 miles from the store to advise on the proper position for a lamp—
and the expert will also advise on electrical details; no charge.
4. Its special children's library sterilizes every returned book to
lessen the possibility of mumps, measles, etc.
5. A proud boast of its telephone service is that "you can order
the bacon at 4 A.M. and have it delivered for breakfast."
6. Its pet shop isn't just a tiny little section. Indeed, it's called the
Zoo. It includes over 200 varieties of animals, birds, and fish. It sells
a blue macaw at $700. It has sold bears, chimpanzees, and filled an
order for a camel at $1,456. Every conceivable pet service is offered.
7. Its lending library includes over 150,000 books—and its proud
boast is that no title is ever out of stock. Customers have their own
librarians who pick titles for them and deliver the books.
8. Its sporting goods department includes a fine miniature golf
green and a golf pro who gives instruction—free.
9. Its school service advises parents on school apparel—and its
word on this subject is the last word.
10. It has kennels, where it houses customers' dogs—free—while
the customer is shopping. (Ever hear of that before?)
11. It includes a bank that remains open whenever the store is
open.
12. It even separates listening booths for Pop fans and Classical
fans—they are kept as far apart as possible.
13. It has its own auction rooms—auction retailing is on the rise.
14. It even has an escort service—if a hostess needs a man in a
hurry, the man will also be provided.
The list is almost endless. One might ask: Is there anything this
store doesn't offer by way of service? And the answer is: Probably
not Moreover, when they hear of a service they are not currently
offering, it isn't long before it's added.
Now—what is the name of the store?
The name is Harrods—Harrods of London. London, England.
Does It Pay Off?
Does this remarkable range of service pay off? Harrods says "yes—
emphatically yes." And that despite the fact that most of the services
are free.
Does Harrods take a longer margin than do major stores here in
the States?
No.
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 21
Let's see:
1. In 1952, delays at the check-out points or at counters were less
time consuming than is true today. There are few outlets that can
accurately contend that, in 1962, less time is required than in 1952
to pay for the purchase and to have the purchase wrapped. Waits at
check-out points today tend to be longer than waits for salesperson
attention back in 1928!
2. In 1952, most store units of mass retailers were smaller. Less
time was required merely to walk through those smaller units to
make purchases than to make precisely the same total purchase
today. And, of course, this was even more true way back in 1928.
3. In 1952, inventories of most mass retailers were not only less
diversified by categories, but assortments were smaller, brands were
fewer, price lines were fewer. The larger the total inventory, the more
time required by the shopper to find wanted items and to make a
buying decision. In 1928 this was even less of a time problem than
it was in 1952.
4. In 1952, retailing was not so amazingly concentrated into a
few peak hours as it is today. Retail inefficiency is at a peak during
these peak hours. Also, crowded aisles slow down the shopper—so
does the need for doubling back because a section is jammed with
shoppers or shelves are bare, etc., etc. Peak-hour shopping in prac
tically all mass stores requires more time in 1962 than in 1952. And
since in 1928 peak-hour shopping had not become nearly so concen
trated as today, this time problem was then of minor importance.
5. In 1952, neighborhood shopping was more common than in
1962. Neighborhood shopping took less time than shopping center
shopping because the latter involves getting the car out of the
garage, driving some miles to the center, parking, walking to the
store a distance sometimes equal to the distance from one's home to
a neighborhood store—and then there is the time involved in leav
ing the center and getting home. In 1928, neighborhoods were the
shopping centers.
Shopper Time Savings Are Ebbing Away:
Maybe the comparison with 1928 is not entirely valid—although it
has some merit. But it seems quite proper to conclude that some-
where around 1950 mass retailing had reached its maximum achieve-
ment in saving shopper time. Since then, time saved at the spigot is
more and more being wasted at the bung!
24 1010 TESTED IDEAS THAT MOVE MERCHANDISE
It still takes too long to pay for the purchase. (Even order books
are time wasters.) It still takes too long to have the purchase
wrapped. It still takes too long to get the purchase out to the car. It
still takes too long to get in and out of some parking lots—especially
at peak hours when shoppers must circle and circle around to find a
parking stall.
Someday, a large retailer will trail a cross section of its shoppers
with a stop watch. And that retailer will clock the time involved in
each step of the typical shopper's schedule of movements involved
in a shopping trip—travel time, parking time, walking time to the
store, time spent in the store (section by section) in assembling
purchases, time involved in paying for the purchases and taking
them out of the store or arranging for delivery, getting the purchases
up to the home, and, finally, getting the purchases into the home.
The resulting figures will be eye-openers and leave little room to
doubt that so-called high-speed shopping, when properly analyzed,
is not high speed at all. It's been said that, in our big cities, the horse
and wagon made at least as much speed as the present high-speed
auto and truck. Similarly, in 1952, the shopper made somewhat
faster time in shopping than she does in 1962—and, in certain in-
stances, she could shop faster in 1928 than in 1962.
Now this is—or should be—of real interest to merchandisers for
several reasons. A major reason is that, today, all large retailers are
so much alike in store architecture, store size, store layout, store
fixturing, store inventory, store service, and store location that there
is a desperate need for brilliant new concepts that will restore to
large retailers some of the distinctly different and superior character-
istics that were originally their trademarks.
Maybe this major point of difference will be found in the devel-
opment of a program that will involve a truly major slice in the
total time required for shopping—especially at peak hours (we say
"especially at peak hours" because these few hours will become still
more acutely peaked). Certainly the mass retailer who can say "we
have made it possible for you to shop in comfort faster than you can
shop in any other outlet—from the moment you leave your home
to shop until you return with your purchases" will have a major
selling argument and a point of differentiation.
(Incidentally, the more time the customer saves when shopping
—the more time that customer has for shopping. For example, at
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 25
least 50 per cent of the shoppers in mass outlets during peak hours
buy from 25 to 50 per cent less than they set out to buy—and some
make no purchases at all because their time has run out. So this
achievement of cutting down total shopping time involves more than
merely a distinctive service—it can increase the average sales check
and that, of course, is the royal road to a better retail net profit per-
centage.)
How Can Time for the Shopper Be Saved?
There are many ideas that offer hope for saving shopper time-
ranging from major ideas to minor ideas. Let's list them, but not in
any particular order:
1. Maybe it's time to think more seriously of improvements in the
parking lot—moving sidewalks, for example, improved pick-up sta
tions, methods for moving traffic more efficiently, better layout to
bring the shopper nearer the store, etc.
2. A few major retailers are experimenting with small store units.
Properly located, properly stocked, properly set up (including per
haps true drive-in or curb service facilities ) they may provide a ma
jor answer to the shopper's time problem.
3. The application of modern engineering techniques to assem
bling orders, wrapping orders, and getting orders out to waiting
cars. Order books can be simplified—so can all of the other proce
dures involved in recording the sale, checking credit, etc. The proc
ess of writing out orders with customer name, etc., etc., is painfully
archaic. Electronic tabulators will play a role in this connection.
4. New floor layouts that will simplify the location of wanted
merchandise and that will speed traffic—maybe the store-in-the-
round is one of the answers.
5. Improved signing can be quite a help. Section signs, for ex
ample, tend to be inadequate.
6. Improvement of the shopping cart and the shopping basket.
Getting purchases out of the shopping cart and onto the check-out
apron, for example, is an almost ludicrous procedure—not only time
consuming, incidentally, but backbreaking as well! (It might be re
marked here that shopping in some of the new self-service units of
some of the drug and variety chains where even baskets are not
provided is a chore that challenges the patience, the skill, the
muscles, and the time of the shopper. One wonders whether the ex-
26 1010 TESTED IDEAS THAT MOVE MERCHANDISE
pelled to trudge from one end of a giant store (and maybe down
and up stairs) in order to make the twin purchases? This matter
of shopping time plus shopping fatigue is a critical element in
the current merchandising scene at retail. Multiple-locations for
certain items and lines can turn these disadvantages into advantages.
8. As mass retailers add more merchandise classifications, it is
vital that more shoppers in these stores make more purchases—and
buy a larger average ticket: If the average sale does not rise, then
the net profit percentage is not satisfactory. And, with few excep
tions, this broad trend toward more departments in mass outlets
has not resulted in the anticipated increase in the number of trans
actions in total, or in the anticipated increase in the average ticket.
9. Imitation of the food super: The food super, which has led
mass retailing in so many ways, has done more than most other
large retailers to stage related food promotions. The basic principle
of related promotion has been sufficiently exploited by the food
super to suggest to other outlets, which ape the food super, that
related merchandising via the multiple-location route might be de
sirable.
10. Large retailers have come to understand that the competition
they do not give themselves will be given to them by their rivals:
Thus the department stores eventually learned that they did not
prevent a drain on main-store volume by refraining from opening
branch units—competitors in the suburbs took volume from them
just the same. Similarly, store management now tends to accept the
conclusion that—within its stores—it may as well give its regular
departments competition by giving certain items from these regular
departments multiple display. Mass retailers have found, generally
speaking, that the volume done in an outpost display seldom cuts
into the volume done in the regular section. This tends to be largely,
if not entirely, extra volume—and therefore highly profitable extra
volume. Some retailers have reason to conclude that the secondary
and tertiary locations tend to function to a degree as "reminders"
to the shopper—who, perhaps not satisfied by the meager outpost
offering, seeks out the regular department in which to make a pur
chase.
11. Delaying the shopper: Retailers are finding that these multiple
locational displays keep the customer in the store longer—a clear-
cut gain in this age of less-time-per-shopping-trip.
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 33
12. The shoppers* tendency to use shopping lists less and less:
Or put that another way—shopping lists tend to become smaller and
smaller, because they tend to include only the staple purchases.
Multiple locations encourage the shopper to buy those items that
are wanted but not listed, half wanted, quarter wanted.
13. Poppa is doing more shopping: Food stores report that over
30 per cent of their traffic consists of men—and during late after
noon and evening hours and on Saturday the percentage of male
traffic in the food super is much higher. Variety stores report a posi
tive increase in male traffic. Drugstores, which have always had a
large male traffic, report a further jump. Department stores have
a much higher percentage of male traffic than ever before—espe
cially in their suburban units and especially during certain nocturnal
hours and at week ends. Poppa is a much more impulsive shopper
than Momma. And multiple locations cater effectively to the im
pulse shopper.
14. Cutting the serious loss of volume that occurs among our mass
retailers during their peak hours: Lump together the total volume
done by department stores, variety stores, food stores, and drug
stores—that is, the new giant units of these mass outlets—and it will
be found that at least 60 per cent of their total week's volume is
done during 12 store-open hours. These are the hours when walk
outs and half-walk-outs and quarter-walk-outs reach their highs—
among other reasons because the counters or bins or gondolas in
the regular departments are so crowded. Multiple displays help make
an extra sale during these enormously important peak hours—a gain
of decided value to mass outlets.
15. The family is shopping more and more as a unit: Where the
family walks through the store, the multiple-location concept ex
poses them more frequently to reminders of current needs—so that,
with more frequency, one or the other of the family members is apt
to recall and point out to the others a needed purchase. With the
family right there as a group, the decision for the extra purchase
is made more easily. When the family splits up in a store there is
a competitive rivalry of sorts that is well capitalized by multiple dis
plays.
16. Smart retail merchandising has always consisted in—among
other factors—giving top location to items in season: Many years ago
merchants placed special tables near the store door featuring "spe-
34 1010 TESTED IDEAS THAT MOVE MERCHANDISE
time hours—may become even more slack than they are right now.
This may encourage retailers to remain closed on Monday and per-
haps on Tuesday, too. (It will hardly be possible to keep retail em-
ployees on a six-day week, or even a five-day week when the four-
day week becomes common for other workers. Under these circum-
stances, retailing will really get only the last sifting of employees.)
4. The trend toward night shopping will accelerate. It is odd but
unquestionably true that the more time people have for shopping,
the less time they want to spend shopping, especially daylight hours.
In food, at least 50 per cent of the volume is now done at night. In
many suburban shopping areas, where stores are open four, five, and
six nights a week, these stores are right now doing over 50 per cent
of the week's volume at night. Nocturnal shopping will be enor
mously accelerated by the three-day week end. So will couple and
family shopping.
5. The three-day week end will encourage still more married
women to work. With three days to spend at home, taking care of
the home will not be such a tough job for the working wife—espe
cially with Pop to help, and wonderful new labor-saving appliances
also. When married women work, their shopping needs and shop
ping habits change. (Also, as more married women work, men do
more shopping, either by themselves or with their wives.)
6. More leisure time increases consumption of just about every
thing under the sun. The three-day week end will do wonders for
retail volume.
7. The peaking of retail volume into fewer and fewer hours will
continue. The three-day week end may finally compel retailers to
cut down the total number of store-open hours.
8. The trend toward more children per family will increase—
longer week ends help to bring this about, for more reasons than
one!
9. The trend toward home ownership will pick up still more—
week ends and home ownership go together. Home ownership means
the purchase of an infinite variety of merchandise.
10. The trend toward the ownership of two homes will increase
—and it is amazing how many people right now who live in subur
ban homes also own week-end homes in more distant areas. Apart
ment dwellers will, of course, increase their ownership of week-end
retreats. The week-end homeowner develops a whole flock of new
needs.
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 37
11. With the jet age here and supersonic planes now being
planned, longer week ends will mean still more week-end travel
by every type of conveyance. Travel also produces a host of mer
chandise needs.
12. The nearer suburban areas will tend to become cities and
will develop their own satellite groups of suburban towns; this trend
is now in evidence. This, too, will change retail store locations.
13. As people in their travels cover a wider geographical area,
the national retail chain becomes still more feasible. Some of our
chains that right now are sectional will undoubtedly go national.
Department store chains covering the country will be fairly com
mon.
14. Because of increasing problems in getting labor, because re
tailing will spread out still more broadly, because of the growing
need to cut costs, the three-day week end will compel mass retail
ing to turn to automation, to electronics. Communication and trans
portation will become as much of a retail problem as it is a manu
facturing problem.
15. For reasons which nobody has as yet defined, when people
have more leisure time they seem to lean toward at-home shopping
as well as toward store shopping. As a consequence, the gains that
have been made during the last several years in mail-order, tele
phone, and other forms of at-tome shopping will continue.
16. The farther people get away from downtown, the greater is
the inclination to go downtown for shopping, for entertainment,
etc. That inclination can, of course, be canceled out by poor or
hazardous transportation and similar negatives. But now that down
town is staging a positive comeback there is full reason to believe
that the central business districts will promote in ways that will
bring more shoppers downtown over the long week end.
17. The present shopping centers, in large numbers, will be ob-
soleted by the three-day week end precisely as stand-still downtown
areas were stymied by the two-day week end.
18. The rate of store obsolescence, which has quickened somewhat
faster than is generally comprehended by store controllers, will pick
up a few more notches as a direct result of changes brought about
by the three-day week end.
19. The three-day week end will make it still more difficult for re
tailing to attract competent talent. At least two of those three days
will be shopping days, and giving salespeople other days off will
38 1010 TESTED IDEAS THAT MOVE MERCHANDISE
cerned. Point out that floor selling isn't the only "manual" operation
in retailing. To the contrary, the stock-handling functions that oc-
cur within the jurisdiction of the merchandise divisions are almost
entirely "manual" and can be mechanized only to a limited extent.
(The greater area for materials-handling savings is in those steps
involved before merchandise gets to the merchandise divisions.) The
bald fact is that—other than in true robot retailing—retail floor
selling costs probably cannot be reduced emphatically. But retail
inventory-handling costs that occur within the merchandise divi-
sions can very definitely be reduced emphatically.
3. Then go on to make clear that inefficient inventory handling
within the merchandise divisions is costly not only in man-hours—
but, perhaps at least equally important, in adding to high inventory
costs. In other words, more efficient techniques for handling inven
tory in the merchandise divisions could enable the merchandisers
to operate with much smaller inventories. That would, of course,
speed up turnover. And it would help to alleviate costly out-of-stock
or understock conditions—the truly grave problems of mass retail
ing.
4. The merchandisers should also be made aware that inefficient
physical handling of inventory is costly also in lost sales, paper work
—and, of course, in cost of square footage. Take that last item—the
cost of square footage. It is not at all impossible that square-foot
floor costs with relation to volume could be brought back to eco
nomical levels by truly modern inventory-handling techniques within
the merchandise divisions.
5. Encourage the merchandisers to send in specific suggestions
for reducing handling costs within their domains. And ask for their
thoughts on some of the more modern techniques, for example:
A. The use of walkie-talkies or intercom systems for more efficient
floor restocking
B. Mechanical and electronic sorting devices that automatically
sort packages, etc.
C. Electronic recording devices—tape recorders
D. The trend away from hand-written sales slips and away from
manual sorting of tags
E. The broad trend toward prepackaging in classifications where
this has not been common—from furniture to bras, from lamps to
china
F. The broad trend toward preticketing and prepricing
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 41
store field, when employees are told that the store "handles" up to
20 tons of merchandise for every one ton actually moved into con-
sumption, they are amazed.
It is worth mentioning that retailing tends to pay too much at-
tention to the economy trivia of retailing's costs (like stationery,
bags, etc.) and too little to the major economy potentialities—such
as inventory-handling costs. This becomes especially noticeable
when one studies the retail economy ideas collected by various
business publications. At least 90 per cent of these ideas make only
microscopic contributions to cost cutting. And it is rare, indeed, to
find a single idea involving materials handling among them.
Conclusion:
The day of the engineer in retailing is here. And the retail engi-
neer is focusing on materials-handling economies.
But just as manufacturers have found that a mechanical or elec-
tronic device can be no more efficient than those who use these de-
vices—so retailers will find that the engineer cannot carry the en-
tire load of achieving economies. That is why manufacturers have
gone to great lengths to develop and promote their employee sug-
gestion systems—and that is why a company like General Electric,
which surely has engineers aplenty, has paid out several million dol-
lars over the years for employee ideas on economies.
And in retailing—for the next few years—there will be definite
limitations on the application of mechanical-electronic developments
to innumerable retail functions. This is the particular area where
the best progress will be made by getting the most employees to
contribute their thinking.
Finding More Selling Time for Hard-core Salespeople
In most retail organizations there is a hard core of salespeople who
are competent. They constitute from 10 per cent to 30 per cent of
the total floor selling force in the majority of stores.
One of the major current objectives of some of our most progres-
sive retail managements today is to develop a program that will en-
able this hard core of competent salespeople to write up still larger
orders during the peak hours—those 12 to 18 hours of the week
which account for up to 60 per cent and more of the total week's
volume.
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 43
becoming acute. This calls for competent local personnel plus local
autonomy.
6. Per-square-foot volume in many, and against maybe most, of
the newer giant one-stop units is poor. This situation (of which
an inadequate average ticket is a part) must be improved if the giant
store unit is ever to contribute a giant new profit. Headquarters
control could do well with per-square-foot figures in small store
units, but that performance cannot be duplicated by headquarters
control of huge stores.
7. The number of families per giant one-stop outlet is clearly on
a rapid decline. This statistical change will become still more acute
as more chains and more department stores open still more huge
stores. An adequate traffic count, under these circumstances, is prob
ably impossible to achieve unless a giant store is operated by local
executive talent.
8. Giant store units tend to show a shocking increase in nonselling
areas. And selling areas show a discouraging waste of space. A com
petent executive operating on the spot can shrivel nonselling areas
and shrink wasted selling areas.
9. In huge store units the problem of out-of-stock, of understock,
of unbalanced inventory is obviously much more serious than in a
small store. The larger the inventory in a store, the more difficult
it is to achieve effective inventory control from distant headquarters.
10. Headquarters control inevitably leads to stores with all of
the floor excitement of a law library. Big store units simply must live
and breathe merchandising-promotion excitement. There is a dis
tinct trend among the newer types of discount retailers to put fun,
as well as promotional excitement, back into shopping—and they
can do this because their managers have authority. Headquarters
control tends to lead to the lackadaisical.
11. Most of the new giant store units boast of larger fashion de
partments. Fashion not only continues to have local overtones and
undertones, but fashion moves too rapidly to permit a cumbersome
headquarters organization to keep step. Moreover, the traditional
chains seldom have a really competent headquarters staff for fashion
lines. Big fashion departments in big stores demand big executive
talent on the spot.
12. Competitive changes at the local level can be not only sud
den—but of sizable proportions. Example: The manager of a giant
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 49
profit comer—and, by that time, the local bloom may be off the
local peach!
All this unmistakably pinpoints the urgent need for a high-level
executive as store manager—who will be given almost complete au-
tonomy—whose compensation will include a share in net profit
earned by the store—who will be given a competent staff of execu-
tive associates—and who will function as a merchant, not as an
automaton.
A War on Paper
In industry, there are now several large service organizations that
concentrate exclusively on the elimination or shrinkage of unneces-
sary paper work among manufacturers. In almost every instance,
their savings have been quite remarkable.
In mass retailing, little progress has been made in this direction.
With only a couple of exceptions, mass retailers have yet to embark
on a dedicated war on paper. To the contrary, in ratio to its size,
mass retailing is today buried much deeper under a buzzard of
paper control than industry.
Over in England, where large retailers presumably have much to
learn from their American counterparts, a giant retailer (by English
standards) recently embarked on a program to cut deeply into
paper work. It has achieved enormous economies—and more are on
the way.
Example—it eliminated its time clocks. In one stroke, that elimi-
nated 22 million pieces of paper a year from its administrative opera-
tions.
Example—a bulletin of administrative information, formerly pub-
lished weekly, now is issued once or twice a month, as circumstances
warrant.
Example—it was discovered that a million so-called "catalog
cards" were being filled out each year. Nobody knew for what pur-
pose they were currently used. They were discontinued and the
accumulation thrown out. Nobody as yet appears to have missed
them.
Example—more than 10 million "goods received" slips were
eliminated when it was decided to allow salesgirls to go into stock-
rooms themselves to get needed items.
52 1010 TESTED IDEAS THAT MOVE MERCHANDISE
In much the same way, this large English retail chain reports:
1. No increase in stockroom losses as a result of permitting sales
girls to go into the stockroom.
2. No increase in tardiness since the time clocks were thrown out
3. Everybody seems much happier under the less-paper system.
It's not only nicer to trust people, but more economical.
Larger Retail Organizations—More Paper:
The fundamental trend in mass retailing is toward giant retail
organizations.
And not only are retail organizations assuming giant size in
dollar volume, but the number of store units under one parental roof
is growing and the stores are spreading out over much greater geo-
graphical areas.
This seems to call for more—and still more—paper control.
And that is precisely what is happening in mass retailing. The
total volume of paper used in the control of mass retailing is not
merely at an all-time peak at this very moment—but it is growing
at a much faster rate than total dollar volume.
One Extreme or the Other?
It would not make sense to advocate that mass retailers eliminate
paper controls at one fell swoop. That is hardly apt to happen any-
how.
But it does make sense to adopt a rational approach to paper con-
trols.
When paper economically controls the retail operation, it makes
sense.
But when the retail operation is burdened by paper control—and
this is by no means unusual—then paper becomes the master (and
an expensive master to maintain) rather than the servant.
Moreover, the paper controls referred to are not merely time
clocks and other employee checks. They include those paper controls
that sometimes hamstring and hog-tie the store manager, buyers, etc.
For example, it is not unusual in some large retail stores to find
that seasonal stocks come into the store units too late, that reorders
cannot be put through in time, etc. This can be due to policy,
but, more often, it is because somebody, somewhere along the or-
ganizational line, has become buried in a blizzard of paper.
54 1010 TESTED IDEAS THAT MOVE MERCHANDISE
Channels of Communication:
In addition to excessive paper control, there is also a tendency in
large retail organizations for an excessive amount of information to
be distributed—on paper—through established channels of com-
munication. We refer now to such bulletins as the bulletin of adminis-
trative information whose frequency of publication was cut by that
chain in England from weekly to once or twice a month.
In many retail organizations there are too many bulletins issued
or written by too many people.
And most of them are too wordy!
Store managers in particular have more reading to do than a book
critic! Since most store managers have not learned the art of fast
reading, and since they tend to be overburdened with too many de-
tails at best—this reading burden is another case of being buried
under a paper blizzard.
Publishers have good reason to know that, by and large, business-
men are not exceedingly facile readers, quite the contrary! But in
retail organizations, there is singular evidence that this principle is
either not comprehended or is largely ignored.
Keep open those channels of communication—and one way to
do it is by preventing them from becoming clogged by a flood of
paper debris!
Check Those Files:
It would pay almost any retail organization to check its files of
filled-in paper forms for usage. So many file clerks could testify that
those which they file from that moment forward rest undisturbed in
the files for ever and a day.
As a matter of fact, one retail executive reports that every so often
he arranges to have a research group dig up some data he requires—
and later discovers that the facts have been reposing in files for
months or years.
Files tend to be burial places! Cemeteries of information!
One giant retailer reports that when it was decided recently to
put some of its filed material on microfilm for safekeeping in a cave,
it was discovered that the files were bulging with material that no-
body other than the file clerk knew was being filed.
So a good place to start in a war on paper is right there in the
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 55
Conclusion:
The new low-margin rivals of established mass retailers achieve
an amazing annual sales volume—with an astonishing minimum of
paper control. Maybe they carry lack of paper control to an extreme,
but they prove that a retail business with a volume as high as
$50 million and in two cases exceeding $100 million annually can
be carried on with what some established retailers would call a
shockingly small amount of paper work.
Long-established giant retailers accumulate paper as inevitably as
they accumulate years. The basic objective must be to slow down
the rate of paper accumulation. Electronic data processing will help.
An Antipaper Committee sounds like a good idea—so long as it
does not issue a regular report, on paper!
leased departments. And the one-stop store unit is the great trend in
major retailing.
At one time the leased department was almost an exclusive with
department stores. Today it is becoming common among variety
chains and drug chains, among hard-goods chains and discount
chains, among soft-goods chains, furniture chains, etc. And, of course,
the rack jobber (a leased department operator) does a gigantic
volume on nonfoods in the food super, in the drug chain, and else-
where.
Some Facts on Leased Departments:
According to a survey made by the Controllers' Congress of the
National Retail Merchants Association, the 10 most commonly leased
departments, by percentage to the total, in 203 reporting depart-
ment stores and 21 specialty stores are: Beauty salon, 55.2 per cent;
better and lower-priced millinery, 46.3 per cent; photography studio,
44.3 per cent; shoe repair, 39.9 per cent; jewelry and watch repair,
36.9 per cent; sewing machines, 34.0 per cent; women's and chil-
dren's shoes (main), 31.5 per cent; millinery (basement), 23.1 per
cent; lending library, 22.2 per cent; and women's and children's
shoes (basement), 18.2 per cent.
Rack merchandisers supply about two-thirds of the food stores'
nonfoods, according to a survey. Since nonfoods in the food supers
will soon total over $2 billion annually, the leased department op-
erator is a giant factor in this area alone.
The discount chains in most instances are deeply involved with
leased departments. In some instances up to 75 per cent of the total
selling floor area is leased and the discount chain may derive the
major part of its net profit from leased rentals! The leased department
concept is growing here at a fantastic rate.
Why the variety chains are going into leased departments is well
indicated by a single example: A J.J. Newberry Co. store gave up
the ghost on its ready-made slip-cover department and turned the
operation over to a concessionaire. Sales had been so poor, and the
percentage of returns so great, that, according to a spokesman, "We
wouldn't have kept slip covers unless a concessionaire handled it."
One of the major problems encountered was lack of inventory con-
trol. Many broken sets and incomplete pattern lines mitigated
against large unit sales, or any sale. Another problem was a high
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 57
ratio of refunds to sales, because covers did not fit, etc When the
concessionaire took over in this Newberry store, he found "nothing
but odds and ends in a $14,000 retail stock—nothing matched."
Phonograph records are complicated merchandise. There are
1,400 different labels on the market. Hit singles stay in demand only
four to eight weeks, according to a West Coast rack merchandiser.
Only a few tunes and artists have steady, long-range appeal. The
rack jobber merchandises records more efficiently than most retailers.
The head of a retail book outfit played host to a group of pub-
lishers, poured drinks for them, and served an elegant luncheon. He
had arranged this luncheon because he had news for them, good
news. He proposed to sell 15 to 20 per cent more of their books dur-
ing the current year. The host operates leased book departments in
62 department stores.
Retailers as Leased Department Operators:
While E. J. Korvette, Inc., promotional department stores, does a
bang-up job in merchandising such home-goods items as major ap-
pliances, housewares, radios, and television, it does not operate its
furniture and floor-covering divisions.
Food chains are running food departments in discount chains.
Drug chains are running drug departments in food chains. Shoe
chains are running shoe departments in discount chains.
This promises to become a major trend within the broader trend
toward the leased department.
Some Specific Predictions:
With regard to the future of the leased department, it may be
accepted as basic:
1. That more large retailers will soon turn to the leased depart
ment concept in more departments—especially those departments
showing poor net-profit ratios.
2. That large retailers will analyze their present leased department
operations to determine how they may be made more profitable to
all concerned—including, of course, the shopper.
3. That new areas of service by leased department operators will
be explored jointly by large retailers and these outside operators.
These operators are becoming bigger, stronger, better organized,
more ethical. The whole leased department concept will achieve
58 1010 TESTED IDEAS THAT MOVE MERCHANDISE
Precisely the same can be, should be, and indeed must be done
with the leased department.
Today there is no excuse, in a leased department operation, for
failure to have clauses in the contract that give store management
the proper degree of control. Unfortunately, too often store manage-
ment has been concerned with percentages—to the exclusion of the
control factor.
Control must be spelled out in the lease contract. And then store
management must set up, within its own organization, procedures
and personnel adequate to cope with the policing problem.
Another point—it is entirely possible to retain and even to en-
hance a store image despite the number of leased departments. The
discount chains have certainly proved this. Some discount chains, as
already mentioned, are primarily leased department operations—yet,
so far as the majority of shoppers are concerned, the stores of these
chains are completely operated by the chains themselves.
Similarly, with respect to other problems inherent in the leased
department concept, these problems unquestionably exist. But prob-
lems can usually be solved, and since the leased department can
offer more advantages than disadvantages, it is really up to store
management to learn how to live with the leased department con-
cept, not to turn it down simply because it presents some headaches.
Conclusion:
Keep a close eye on the leased department—and an open eye and
mind, too. It promises to become one of the major retail merchandis-
ing developments of the near-term future. Retailers will become
both lessors and lessees—a fascinating development.
New Management Thinking about the Store Window
At one time, the store window was evaluated as one of the most
valuable areas within the total store perimeter.
But as shoppers tended to do less window shopping, especially in
shopping-center and highway locations, store management tended
to conclude—and correctly—that the window had lost some of its
traditional values.
In some extreme instances this led to stores with no windows. In
other instances, it led to reductions in total window area, and oc-
casionally to cuts in the window display budget.
60 1010 TESTED IDEAS THAT MOVE MERCHANDISE
But now a totally new concept is just beginning to take hold with
respect to the window. The thinking behind that new concept may
be summarized in this way:
1. Fewer shoppers stop in front of our windows.
2. These fewer shoppers spend less time in front of our windows.
3. There is too much of a time gap in this era of split-second
shopping, between exterior window shopping and in-store pur
chases. What the mind registers in front of the window it tends to
forget by the time the store interior is shopped.
4. Traffic inside the store is more important than traffic outside
the store.
5. Ipso facto—why not plan the window area primarily to appeal
to shoppers inside the store.
Not Theory:
This is not merely theory. It is being considered for use in several
department stores of the newest type in some of the great regional
shopping centers. And it is actually being adapted for use by some
food supers, which is rather interesting since the food supers had
permitted their windows to fall almost into decay.
The point should be made promptly that applying this reverse-
English thinking to the window does not carry with it the implica-
tion that the appeal to the shopper outside the store is to be totally
disregarded. In some instances, this may be the case. But more often
there will be a distinct promotional concept involved that plans the
window area so that outside traffic will continue to find some draw
in the window—but the main lure will be aimed at traffic inside the
store.
Management Must Issue Directives:
It should be pointed out that this new concept tends to be applied
only when store management issues appropriate directives. As might
be expected, those in the display department who have been brought
up in the traditions of the window display craft, are not likely to
revolutionize their thinking of their own accord.
There is no question that many stores continue to invest funds in
windows in a way that no longer provides a sound return on the
investment. This happens not because the window art has dwindled
in these stores, but rather because the fundamental thinking about
the window has fallen behind the shopping times. It has been diffi-
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 61
more for interior traffic than for exterior traffic. In these highway
locations, the car that stops in the parking lot means a shopper is on
the way inside the store. There is little need to appeal to that shopper
while she walks from the parking area into the store—all of this has
been done, really, before she ever left home.
As a consequence, while the early highway stores automatically
planned their windows in the historic way—with the outside traffic
in mind—it was soon realized that a new concept in store location
called for a new concept in store window programs. The result has
been that, in the highway location, the store window still presents
an attractive front to the exterior traffic;—but the fixtures, the dis-
plays, are all aimed right on target, which in this case is the traffic
inside die store.
And Shopping Center Windows Also Tend
toward Reverse English:
In shopping centers, the early store tenants tended toward the
open-front window. But here it was discovered not only that even
mall traffic did little window shopping—but that a substantial store
traffic came into the store through rear entrances, directly from the
parking area. Experience soon proved that window shopping from
the store exterior in most shopping centers is at a very low minimum.
So it was soon concluded that the open-front window concept,
with its theory of opening up the entire store to examination from
outside the store, had little basis in practical fact. It was also reasoned
that shopping center traffic tends to attract, in the main, the same
shoppers—and to these repeating shoppers, the store interiors soon
become so familiar that there was little lure in them for the shopper
outside the store. Shoppers tended to know these store interiors al-
most as well as they knew their own living room.
Therefore, in shopping centers, too, the trend has been toward
planning the window so that it does a better job of selling more to
traffic inside the store.
Downtown Stores Lag—but Isolated Examples Appear:
Downtown stores tend to continue to follow historic window dis-
play patterns. But here and there examples are to be seen of down-
town store windows that are obviously planned with very much of
an eye on traffic inside the store.
It would unquestionably be worthwhile, in many downtown areas,
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 63
Before examining this startling concept, let's agree that: (1) there
will always be a retail store, (2) moreover, retail volume done away
from the retail store will not in our time challenge the volume done
on the floor of retail outlets.
But let's face it—the percentage of total retail sold away from the
retail floor has been mounting for the last decade! And the trend is
dynamic.
Example—mail-order retailing has been on the rise for ten years.
Example—telephone retailing has shown sufficient growth poten-
tials to encourage ATT to go all out in encouraging more retailers
to cultivate telephone volume.
Example—in-home selling has moved ahead on an enormous
scale. The variety of merchandise, as well as total volume, sold by
a vast army of in-home salesmen has broadened in a remarkable
way.
But shopping from home—as differentiated from shopping in the
retail store—is destined for even greater growth during the 1960s
than was recorded during the 1950s. This will take place for two
sets of reasons, one set involving some traditional factors and the
second set involving some new factors.
these days—then, modern retail management asks itself, why not find
other techniques for catering to these customers during some of
these hours and during some of these days? The promotion of tele-
phone order service on Sunday was one of the early answers to this
situation. Soon we will see more evidence of 24-hour telephone order
service—after all, we are becoming a nation of night owls, and it is
logical that a people who will stay up to watch the late-late show
may also shop during late-late hours, provided it is made convenient
for them to do so. Obviously, mail-order shopping can be done any
hour of the day or night—Sundays as well as week days.
4. The number of hours available for couple shopping is limited.
This is particularly true of working couples, of homes where baby
sitters are too costly or unavailable, etc. These are the very homes in
which accumulation of possessions is at a peak. And these are the
very homes where so much of the buying is done as a decision by
the couple, rather than by the woman or the man. To make these
limited number of shopping hours by couples less limited, it is ob
vious that in-home, mail-order, and telephone selling offer decided
advantages. (And let's bear in mind that couples buy big-ticket mer
chandise. )
5. As we have more senior citizens, many of whom may find in-
store shopping, especially in giant stores, a physical problem, we
clearly have more "prospects" for in-home, mail-order, and telephone
retailing. Surely the figures of coming growth in numbers of elderly
people need not be repeated here.
6. The standardization of merchandise, the preselling of brands—
all the developments that led to self-service and self-selection—also
encourage telephone and mail-order shopping from the home. As
a matter of fact, come to think of it—telephone and mail-order
shopping are simply forms of self-service and self-selection! Right?
7. The eventual use of the home TV set as a shopping facility
has been predicted for some years. We may be slightly closer to it
today than we were a decade ago. Ultimately, it will play at least
as much of a role as shopping via the telephone—indeed, it will be
tied into telephone ordering from the home. (Since ATT has shown
such a keen interest in exploiting the potentials of telephone shop
ping, it is probable that the vast facilities of this great communica
tions system will be employed to accelerate the advent of the even
tual era of shopping via the telephone and home TV screen.)
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 67
8. The vast extension of the credit and the credit card system
facilitates in-home shopping.
9. The use by large retailers of electronic data processing and
handling equipment will also make the various forms of in-home
selling more economical to handle and therefore more feasible. The
data processing equipment can record orders from the home (mail,
telephone, etc.) and can also be hooked into the electronic handling
equipment that sorts out and assembles the order. And, of course,
this equipment can work round the clock—a considerable advantage
in view of the great trend toward nocturnal shopping and Sunday
shopping.
A Look Back—and a Look Ahead:
Centuries ago, a substantial percentage of retailing was done right
in the home. The Yankee Tin Peddler typified this era. Then for
decades the trend was toward doing less shopping from the home—
a trend that was only temporarily decelerated by the appearance
early in the century of the great mail-order houses.
But now, for at least a full decade, there has been mounting evi-
dence of a strong groundswell involving a return to shopping from
the home. Modern social conditions (the working wife, etc.) mod-
ern technology (the whole spectrum of electronic communications),
and modern marketing (the presold brand plus universal credit) all
combine to make in-home shopping (by mail, by telephone, by TV
screen, by the in-home salesperson) thoroughly logical.
In-home shopping and the vending machine (which, is big apart-
ment houses, will permit a form of in-home shopping from within
the building) promise to be two of the fascinating marketing de-
velopments of this decade. (Further evidence supporting this
prophecy is found in the fact that, in 1960, more mail-order catalogs
were distributed than ever before! And Sears reports that its mail-
order business is once again in a true growth situation.)
Conclusion:
During the 1950 to 1960 decade, mass retailing made little progress
in stepping up its sales per square foot. Indeed in many of the
newest giant one-stop store units, the square-foot performance record
in many departments is downright disappointing.
As the number of giant one-stop store units continues to multiply,
68 1010 TESTED IDEAS THAT MOVE MERCHANDISE
and as they compete more vigorously with one another, it will be-
come a still tougher problem to lift the square-foot performance
(and the average ticket) in these huge outlets.
We are not suggesting that this problem should not be met head
on. It should be; it must be.
But simultaneously, advantage should be taken of the fact that
giant store units make feasible, as well as necessary, mail-order
selling, telephone selling, in-home selling. These techniques for
reaching out to the shopper cannot be adequately developed by
small stores; they are almost the exclusive opportunity of the giant
store.
And that opportunity is made still greater (1) by technological
developments to which we have referred, and (2) by the changes
in public shopping habits to which we have referred.
Coming: True One-stop Outlets
For generations, department stores were considered—and properly
so—to be one-stop outlets. They were certainly the first one-stop
outlets (other than the early crossroads general stores).
More recently, other types of mass retailers turned to their own
versions of a one-stop outlet. The food super announced its type of
one-stop outlet. So did the variety chains. So did the drug chains.
And so did the big mail-order houses. Most recently, the discount
chains began to open their versions of a one-stop outlet.
But the fact of the matter is that there are but a tiny handful of
true one-stop stores in this country. We have one-quarter stop outlets,
one-half stop outlets, three-quarter stop outlets, but very few outlets
planned and geared to cater to all of the requirements of the modern
shopper.
Modern-shopper Wants Have Multiplied Fast:
Now it would be ridiculous to take the position that a store can
claim to be a true one-stop outlet only when it inventories every
blessed item that even the lunatic fringe shoppers might think it
needs. But it happens that the requirements of modern mass shop-
pers—that is, the day-by-day requirements of those of our shoppers
with ample discretionary income—have expanded and diversified
more rapidly than has been true of the expansion and diversification
of inventory of most of our so-called one-stop outlets.
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 69
going up. They will run from 350,000 square feet (all on one floor)
to 600,000 square feet—and all under one roof. They may not be as
huge as a very few of our largest downtown department stores—
but, insofar as the current requirements of the modern discretionary
shopper may be concerned, they will probably come nearer meeting
these needs than the few older stores that overshadow them in size.
The true one-stop outlet is not to be judged exclusively by its square
footage. It must be judged equally by die diversity of its inventory
and by the degree to which this inventory is able to cater to the
existing and the expanding needs of mass shoppers.
When a gigantic store does an inadequate job of merchandising
garden equipment and supplies, an inadequate job of merchandising
the newer services, an inadequate job of merchandising rentals, an
inadequate job of merchandising the rapidly expanding fields being
invaded by coin-operated devices, an inadequate job of merchandis-
ing home repair and modernization requirements—then it just
isn't a modern-day one-stop outlet, no matter if it occupies 750,000
square feet in a single building. Moreover, when such giant stores
cannot furnish adequate parking places, when they are difficult to
reach by car, then they are also not true one-stop shopping centers
because these facilities are part and parcel of modern one-stop
shopping.
Actually, the nearest that retailing has ever come to true one-stop
shopping has been the Sears catalogs. And even here there have
been big gaps—for example, until recently, the Sears fashion lines,
as featured in the catalog, have trailed behind modern requirements
and have still to catch up.
Even the huge shopping centers have not provided true one-stop
facilities because the enormous areas they occupy are not compatible
with true one-stop shopping. When it becomes necessary to move
one's car to shop various stores in a giant shopping center—and
this is commonplace—then to this degree as well as from other
aspects, that gigantic shopping center is not a modern one-stop
outlet.
How Many True One-stop Outlets?
Actually, there will not be more than perhaps 100 true one-stop
outlets in this nation. And we may not have that many before 5 years
or more. (But, since these 100 outlets will probably do a volume
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 71
ilege of telephone shopping. So they added two and two and came
up with the formula: A modernized version of the old-fashioned
specialty food outlet catering to the wealthier families and offering
most of the services of a previous era.
One of the food chains in the East started such a store in the so-
called silk-stocking area of New York. It clicked immediately. Not
only was its volume above expectations—an unusual experience for
the food super these days, since most new store units in the food
field tend to do less than the planned figures—but the net-profit
ratio and the return on investment were highly gratifying.
The consequence was that this food chain has since added addi-
tional stores of this same type. Moreover, at a stockholders' meet-
ing, its chief executive officer told stockholders that "We are plac-
ing particular emphasis on the rapidly expanding luxury areas of
Manhattan where we are opening luxury-type stores."
Since then, in other areas, other food chains have made similar
moves. The first steps have been cautious. Now, in at least a dozen
major cities, the food supers are moving quite rapidly toward these
luxury units.
About the same time, several department stores began to open
so-called "twig" store units, some of which were also designed to
appeal to what was once called the "carriage" trade. Then a few
of the drug chains tested luxury-type outlets. Since then, chains in
almost every retail field have been testing these affluent store units
for affluent shoppers.
Interestingly, one top executive of a large chain is firmly con-
vinced that shopping in luxury-type stores may become a new form
of social status. His point is that many people are always looking
for something to flee to that will enable them to flee from what
everybody else is doing.
He concludes, therefore, that the time has now arrived when
many shoppers will want to disassociate themselves from self-service
shopping—from standing in long check-out lines. He believes they
will tend to turn to modern versions of the old-type luxury stores
which delivered their packages in carriages pulled by a spanking
team of high-stepping horses and manned with even a footman in
livery!
In brief, on the one hand we have too few retail outlets today
in which the more affluent of our affluent shoppers can achieve so-
74 1010 TESTED IDEAS THAT MOVE MERCHANDISE
clared that this was the forerunner of a nationwide chain, there was
no longer any doubt that consumer goods leasing or renting had
jumped into a stage of explosive growth. (When the giant Sears
Roebuck announced a similar plan for hundreds of its stores, con-
sumer goods leasing leaped ahead.)
The Hertz program contemplates both its own national chain of
stores renting a wide variety of consumer goods and operation of
franchised stores in smaller communities. This corporate giant ob-
viously has the financial muscle to develop consumer goods renting
to the stature of a truly big retail function. Indeed, it is entirely
probable that, in time, the Hertz chain of car-renting stations will
become part and parcel of the consumer goods renting operation—
which means that this could become one of the great chains of the
nation.
In addition, there are scores of other consumer goods renting serv-
ices. One of the larger ones is United Rent-Alls, Inc., of Lincoln,
Nebraska, which has some 315 franchised rental stores in 46 states.
As a matter of fact, if autos are included, it is reckoned that per-
haps three out of ten American families right now rent one or more
items of consumer goods. The organizations that are operating in
this field believe that this figure will soon become five families out
of ten—and ultimately nine families out of ten. Moreover, it is antici-
pated that the variety of items rented will increase even faster than
the number of families renting consumer goods. Thus, this market
is growing from both ends, so to speak.
Tart of the Trend Toward the Retailing of Services:
Our major retailers are planning a vast acceleration of depart-
ments offering services. Sears has announced this as a specific new
policy and program—and Sears has stated that service departments
offer mass retailers unique opportunity for dynamic expansion. Rent-
ing consumer goods is a service department. It fits right into this
trend.
It is entirely probable, therefore, that all types of mass retailers
will take a new and open-minded look at the renting of consumer
goods as a potential source of additional volume and additional
profit It may very well develop—and rather quickly—into the fast-
est growing of the newer service departments and the one with the
largest potentials for substantial dollar totals.
78 1010 TESTED IDEAS THAT MOVE MERCHANDISE
bridal events will call for the rental of an amazing variety of items
ranging from candelabras to chinaware to carpets and rugs (a full
dinner service for eight, including china, silverware, tableware, and
napkins can be rented for about $9.00).
An interesting example of consumer goods rental potentials is
found in the rapidly growing "second home." More often than other-
wise, the second home is a temporary abode—usually a summer
home. It may be in use for only three to five months. As a conse-
quence, it is entirely probable that a substantial percentage of the
owners of second homes could be persuaded that it will be less
costly, less troublesome, to rent more of the total inventory of the
second home than might be the case with respect to the inventory
of the primary home.
However, the proponents of consumer goods rental services claim
that the public ferrets out more ideas for new areas of rentals than
do the retailers offering the service. Their experience has been that
the more the public rents—the more it thinks about the whole rental
idea.
Clearly, auto renting has played a role in the increased willing-
ness to rent candelabras. Clearly, the renting of home linens has in-
creased the willingness to rent chinaware and silverware. Clearly,
the use of home catering services (which is really a form of rental)
has increased the willingness to rent many items. Certainly the rental
of baby diapers increased the public's willingness to rent not only
other baby items but a wide variety of consumer goods. And cer-
tainly the renting of innumerable items for the second home will
make that family that much more amenable to the idea of renting
innumerable items for the primary home.
the second home for the two-home family, and especially involving
prefabricated homes.
2. Extension of the home decorator service and other professional
and semiprofessional services—for example, bridal service may be
extended to include the wedding itself.
3. Addition of merchandise departments which formerly were
either nonexistent or were laggards because they involved some de
gree of service—the recent growth of auto tire departments would
be an example.
4. New types of home-aid services. Rug-cleaning service would
be just one example. In hundreds of communities, small services
have sprung up which supplant the domestic servant: dusting, wax
ing, window washing, etc. These will be taken over by large retailers.
5. In addition to selling garden supplies, mass retailers will ar
range to mow lawns, take care of the garden, offer professional
planning services for gardens.
6. Diaper services will be offered. Ditto for linen services—per
haps complete laundry services.
7. Insurance and mutual funds will be sold both over the counter
and in the home. Estate planning will become a function of the large
retailer.
8. Now that dry cleaning services are to become available via
automatic machines, some mass retailers will definitely offer this
service, as well as automatic washer or launderette service.
9. The various service chains that have sprung up to service the
automobile—seat cover chains, muffler chains, etc.—will be dupli
cated by large retailers.
10. The credit card will be sold by big retailers. Why not?
11. The rental concept will be exploited as a service function—
this will include not only rental of home appliances, power tools,
etc., but even auto and perhaps truck rental.
12. Home repair and home modernization services will be offered
by retailers. The list of existing and potential service departments
is a long one. It is reported that Montgomery Ward has under con
sideration no less than 69 types of consumer services! (The Chair
man of the Board of Sears Roebuck has publicly announced that
Sears will concentrate strongly on the expansion of present and new
service departments.) And, with respect to Sears, it is pertinent to
point out that Allstate Insurance Co. (a service department) will
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 83
toward which Sears has clearly pointed the way. Just as Sears has
found controlled brands the very essence of this long-term strategy,
so will more and more giant retailers lean on distributor-controlled
brands for the same reason.
17. Their saturation of certain territories makes feasible the ex
ploitation of their own brands in those territories on an economic
basis. And their trend toward national coverage by smart location
of store units makes feasible national exploitation of their own
brands.
18. They know that the enormous multiplicity of brands plays
into their hands. Thousands of manufacturer brands means brand
confusion among shoppers. To sneak a store brand through this fog
of confusion is easy. When one giant retailer turns to controlled
brands, competing retailers feel compelled to meet this program.
There is no question that some large retailers are much more deeply
into their own brands than they would like to be—but they feel
they cannot ignore their competition in this respect. Thus, distribu
tor-controlled brands feed upon themselves—the more active giant
retailers become in own-brand promotion, the more deeply involved
all large retailers become in own-brand merchandising.
19. These large retailers also know that showing their controlled
brands alongside manufacturers' brands tends to accelerate the
movement of their own brands. This has been proved thousands of
times.
20. The vast similarity among competing manufacturers' brands
—similarities in construction, in ingredients, in appearance, in pack
aging, and in pricing—also encourages the retailer to conclude that
he can successfully market his own brands, particularly when he
can feature a lower price. That matter of shelf price differential is
crucial—among some food items the retailer's own brands tend to
be priced from 8 to 17 per cent lower than the competing brands of
manufacturers.
21. Years ago, the retailer was at times hard put to find a supplier
for his own brands. That is no problem today. The new merchandise
categories into which drug chains, variety chains, food chains, and
other large retailers are going include lines in which manufacturer
advertising is weak. In these classifications, the giant retailer be
lieves he can develop his own brands with relative ease. He is not
entirely wrong in this assumption.
88 1010 TESTED IDEAS THAT MOVE MERCHANDISE
22. The net profit picture among most mass retailers has been far
from satisfactory. This is especially true of department stores and
of variety chains. The food super also complains bitterly about its
low net-profit percentage. Private brands may help here.
Conclusion:
So when it comes to own brands, the giant retailer has clearly con-
cluded "Can do."
And he can do, too.
Does this imply a flight from manufacturers' brands? No, not
really. It may mean that pseudo national brands will be weeded
out. It may mean that manufacturers' brands that are weakly ad-
vertised will be dropped.
But basically, in most classifications, the mass retailer's prime reli-
ance will be placed on manufacturers' strongly presold brands.
Moreover, manufacturer brands will continue to predominate for
years to come in the higher price lines.
However, presold controlled brands of mass retailers will unques-
tionably take over a growing percentage of the total volume of these
outlets. And, in a few classifications, the controlled brand will out-
sell all others—with the total number of these classifications tend-
ing to increase.
The controlled brand is on the move. And the time for merely
"watching" is already gone by.
More Retail Profit from Nonmerchandising Functions
Traditionally, retailing has looked to the merchandising function
for its net profit.
Today, retailing is beginning to look to nonmerchandising func-
tions for more of its net profit.
Tomorrow, some mass retailers will be getting from 25 per cent
to 50 per cent of their total net profit from the nonmerchandising
function!
And when this comes to pass, those mass retailers who have neg-
lected the nonmerchandising aspect of modern retailing will be at
a serious competitive disadvantage.
Net profit is the lifeblood of retailing.
Net profit on the merchandising operation for most mass retailers
either has declined or has barely held its own.
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 89
food supers have set up subsidiaries that handle nonfoods not only
for the parent organizations but for other noncompeting food outlets
as well. This is a nonmerchandising function.
5. The development of the holding company concept in mass re
tailing—which is a strong trend—involves corporate maneuvers that
can throw off an extraordinarily large net profit primarily through
the exchange of pieces of paper. This is a nonmerchandising func
tion.
6. Making choice financial connections is becoming a matter of
top importance in the vast expansion plans of giant retailing. This
is a nonmerchandising function. In combination with other non-
merchandising functions discussed here, this puts a new spotlight on
the store controller. He emerges as a top executive with great au
thority. It also raises a question whether, in future, the heads of
great retail organizations will be selected more for financial acumen
than for merchandising acumen! This, of course, has already hap
pened.
7. We have referred to the entry of retailers into manufacturing.
This promises to become a powerful trend. Profits from the manu
facturing operation are not retail merchandising profits. So here is
another source of nonmerchandising income.
8. The store-controlled brand, in many of its aspects, provides
nonmerchandising income. Since the store-controlled brand is right
now being almost feverishly expanded by large retailers, it promises
to become a substantial contributor to nonmerchandising income.
(In some instances, retailers will sell their controlled brands to non-
competing outlets—this, obviously, will throw off net profit that can
not be classified as retail merchandising profit.)
9. The wholesale-warehousing function performed by many re
tailers is not a retail merchandising operation strictly speaking. It
is only indirectly related to the movement of merchandise off the
retail floor. In some instances, this function is lodged in a subsidiary
organization, which means it receives its own accounting analysis.
10. Credit retailing involves financial aspects that are not strictly
retailing merchandising. Here, again, the trend is for retailers to
form a credit financing subsidiary. Since all mass retailing is turning
to credit—the astute management of the retail credit function is ex
pected to throw off a net profit apart from the merchandising opera
tion.
11. Real estate is, of course, the great source of nonmerchandis-
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 91
ing income for retailers. Because it so clearly marks out the remark-
able role that real estate is—and will be—playing as a source of
retail net profit we propose explaining in some detail the real estate
program of a large food chain. There is no question that this plan
will be adopted and adapted by many other large retailers.
This food chain formed a shopping center subsidiary. After just
four years, this shopping center subsidiary was able to claim that
it is the largest developer and operator of shopping centers in the
entire country!
The food chain owns approximately 44 per cent of the common
stock of the shopping center subsidiary and 100 per cent of its pre-
ferred stock. Thus, the major part of the real estate profits will go
into the food chain.
The chain has the exclusive right to lease the portion of each shop-
ping center developed by its subsidiary for a supermarket.
The shopping center subsidiary, in late 1959, owned or leased 35
shopping center land sites in eight states. Eighteen of these loca-
tions, on that date, had centers in full operation. By the end of 1961,
the shopping center subsidiary had doubled its 1959 rentable square
footage. (No less than 33 shopping centers were in operation by
the end of 1961; rentable space jumped from 2.4 million square feet
to an estimated 4.8 million square feet.)
Does this vast real estate program require great working capital?
No, it doesn't! Bank loans are used to finance the construction
program. Long term debt finances the completed and operating cen-
ters. Original equity and bank loans might be utilized to construct,
for example, $10 million worth of shopping centers. These can be
mortgaged for some $8 million. That $8 million is used to build ad-
ditional centers. These additional centers are then mortgaged for
more millions. Actually, the original $10 million of equity money
could finance perhaps $50 million in shopping centers.
Then, of course, as the shopping centers are opened, the real estate
subsidiary develops additional equity from cash flow, and from any
appreciation in the value of its operating centers. Thus, still more
construction financing may be obtained.
Conclusion:
It is not improbable that this food chain will report in excess
of 20 per cent of its total net profit from "other sources" by the end
of 1961 or 1962. And it may be that, by 1965, when the shopping
92 1010 TESTED IDEAS THAT MOVE MERCHANDISE
selection because they follow the dictates of the minor part of total
floor or departmental traffic—basing buying on the 20 per cent or
even 40 per cent of shoppers who buy is unquestionably one of the
great culprits.
2. Too much time lost in completing the buying transaction—
probably more purchases are deferred in certain categories because
time ran out than because funds ran out!
3. Unbalanced stocks, poor assortments, etc.
4. Failure to have the right merchandise, at the right price, at the
right time.
5. Inadequate "silent selling"—meaning poor signs, poor pack
ages, etc.
6. Inadequate personal selling—where personal selling continues
to be a factor.
7. Stores that are too orderly, that have too few interrupting notes.
8. Inadequate facilities during peak hours—the very hours when
most mass retailers account for the major part of their total volume.
Be Flexible: Grand Strategy for Mass Retailers
Recently, an executive head of one of our largest traditional re-
tailers remarked: "If we conclude that enough of our shoppers want
to shop in a discount type of outlet, we'll open that kind of outlet."
When that retail executive made that remark, such retail giants
as Woolworth's, the Allied Department Store chain, the Federated
Department Store chain, a score of giant food chains, several big
drug chains, a number of women's and men's specialty chains, had
all decided to open discount outlets. It would appear then, as though
this retail executive and his giant organization had been dragging
their feet with respect to this potential change.
And that underscores what we consider to be today's major stra-
tegic requirement for mass retailing. Summed up in just one word,
that major strategic requirement involves: Flexibility.
Too Little, Too Late
It may rarely have been strategically wise in retailing (or in any
business) to lay down a grand strategy and then determine to stick
with that grand strategy through thick and thin. Even a Lord &
Taylor is moving powerfully into the suburbs and will soon be do-
ing a larger volume in the suburbs than at its Fifth Avenue store.
32 "GRAND STRATEGY" CONCEPTS THAT MOVE MERCHANDISE 97
tainly changes in fixturing have come about in the last ten years at a
rate that combined to produce a larger total of fixture changes than
in the previous 30 years! This is accelerated obsolescence with a
vengeance.
9. Vast social changes have occurred among the shopping public.
Increases in our total population. Changes in income levels. Changes
in size of family. Changes in home location. Changes in living
habits. Changes in working habits—including the vast increases in
women at work. Changes in the man's role in the home and conse
quent changes in his shopping habits. Changes in the position of
the teen-ager in our society. Changes involving nocturnal shopping,
and now changes involving Sunday shopping. (Sunday shopping will
favor the highway location, and this may tend to obsolete many
present-day shopping centers, thus introducing still another obso
lescence factor; and the Federal Government's gigantic road building
program will play an enormous role in creating new store locations
and obsoleting many old locations.)
10. The trend among all mass retailers toward an increase in the
number of merchandise classifications stocked. This trend for all
mass retailers to become new types of department stores clearly
speeds up the obsolescence of older stores.
11. The parking situation and traffic congestion combine to ac
celerate store obsolescence. Thus, many stores opened five years ago
have inadequate parking areas today. Also, many shopping centers
opened five years ago "out in the sticks" are now in congested
locations with as many traffic problems as downtown.
12. Vast changes are sure to occur in railroad commuting and in
passenger service. Within ten years, some big railroads will be en
tirely out of passenger business. These changes will play havoc with
some established home areas. Here, too, a direct impact will be made
on store obsolescence.
13. New forms of transportation may be coming in—perhaps the
helibus. The auto transformed the world of retailing. Maybe the
helicopter and the vertical-rise plane will do the same to tomorrow's
world of retailing. Here is a potent factor in obsolescence calcula
tions.
14. Self-service today is essentially a manual operation. The next
step is to make self-service mechanical (vending machines, etc.).
108 1010 TESTED IDEAS THAT MOVE MERCHANDISE
the clerk what she wanted—the clerk picked out the purchase as in-
structed. That was clearly voice-command shopping. But it was
voice-command between two humans.
Then, self-service practically eliminated the human voice in shop-
ping.
Now, we are faced with the probability that voice-command tech-
niques, involving an oral command by the shopper directed to, and
recorded by, and acted upon electronically by a machine, will
bring back the human voice to shopping.
The voice-command machine will be easier for the shopper to
operate than some of the more complex button-pushing automatic
vendors that have been predicted for the future.
Next Leap Forward in Self-service
The next great leap forward in self-service retailing must—and
will—make it unnecessary for the shopper to cart purchases to a
checkout point.
This final step in the shopping process is a vestigial hang-over from
centuries of retailing tradition. It is as old as retailing itself. In the
ancient bazaars, the shopper handed her selection to the merchant.
In more recent eras, the shopper relayed her wants to a clerk who
brought them to the cash counter. In the modern era of self-service
and self-selection, the shopper has really returned to a modernized
version of the ancient bazaar—she collects her purchases and takes
them to one of several types of checkouts.
This traditional procedure must go—and it must go for a variety
of reasons. These reasons include:
1. It is a major factor in both employe and shopper pilferage. Un
der self-service, inventory shrinkage has become a serious factor.
For every dollar pilfered by the shopper, at least $5 to $10 is pil
fered by employes who frequently are in league with professional
outsiders and with customers. So long as merchandise remains out
on open display, so long as hundreds and thousands of people in
the aisle may walk around with selections in their hands or in carts—
just so long will the shrinkage rate continue to climb. But it cannot
be permitted to climb much higher.
2. Shopper fatigue is a definite, concrete problem that bites deeply
into the sickly average ticket in one-stop stores; it costs stores more
than does both shopper and employe pilferage combined. But, be-
110 1010 TESTED IDEAS THAT MOVE MERCHANDISE
7. Stores of the future may tend to the "round." And some stores of the
future may revolve—with the customer sitting in front of merchandise
that is conveyed in front of him for push-button recording of purchases.
8. Self-service will have been extended to practically all categories of
merchandise. The check-out counter will be in use in most types of stores.
It will be electronic, however—the check-out girl will have disappeared.
Merchandise will be electronically marked in code, electronically read at
the check-out, electronically totaled, recorded, etc. In many cases, mer
chandise will not be brought to the check-out—only a record of purchases
will be made.
9. The moving sidewalk will bring vast changes. It will bring shoppers
from parking lots to the store. It will be used inside the store as moving
aisles (stores are already so big that shopper fatigue is becoming a prob
lem) . It will make every floor (basements, too) a main floor.
10. The vending machine principle will have been extended to a broad
range of merchandise. With atomic-radiated food freed from spoilage
problems, food will be sold in mounting volume from electronically con
trolled batteries of vending machines. Ditto for innumerable other small
items.
11. Certain categories of merchandise will arrive at the retail store on
their own shelves or fixtures. Merchandise will be price-marked with
electronic devices—the cost of price-marking will be slashed.
12. The electronic conveyor for merchandise will be performing mir
acles in every stage of the distribution function.
13. Closed-circuit television will be used to instruct store managers,
floor personnel, warehouse personnel, etc. Headquarters will be able to
"see" every step of the distribution process through electronic eyes.
14. The shoplifter problem will be solved by electronic eyes.
15. Store window displays will be "installed" by the use of screens on
which setups are flashed from a central closed-circuit TV control room.
16. The private-wire telegraph-telephone network systems now so
broadly used in industry will be broadly used in retailing and wholesaling.
17. Some shopping will be done electronically from the car—the car
will pull up to a huge electronic bulletin board on which merchandise will
be featured; remote controls in the car will permit the shopper to record
her purchases. This will be electronic drive-in shopping.
18. Electronic store directories will help shoppers find their way around
the huge stores of the future.
19. Parking lots will become multistoried, especially downtown. Cars
will be parked automatically. Shoppers will be conveyed by moving side
walks to the retail store.
20. Downtown areas will have hit high gear in their rehabilitation of
124 1010 TESTED IDEAS THAT MOVE MERCHANDISE
the core of the city. Billion-dollar plans for the modernization of down-
town will be common. Downtown will become a new type of shopping
center—with all the latest electronic devices.
21. The manual handling of "paper" in retail control work will be vastly
reduced.
22. The electronic recording of telephone orders will surely become
common—and telephone ordering on a 24-hour basis will be common
place.
23. Store hours will have been shortened—perhaps to 40 store-open
hours a week. Morning openings will be rather rare. Over half of total
retail volume will be done in most categories at night. And the new types
of vending machines will make 24-hour retailing a practicality in certain
classifications.
24. Electronic systems will make it more practical for more stores to
develop practical mail-order systems.
25. Selling in the home will have become a much more important fac
tor—and will be controlled from headquarters by electronic communica
tions.
26. The concept of "continuous flow," now universal among modern
manufacturers, will take over the mass distribution function.
27. The peak in diversification of inventory by category will have been
reached by 1965—and a strong reverse trend toward new types of one-
man or even unmanned small specialty stores will be in evidence.
28. The gasoline station will have emerged as a new form of retailing
for many nonautomotive items.
29. Batteries of vending machines will be dispensing many items in
huge new apartment houses.
30. Electronic techniques may make it possible for reserve stock per
sonnel to "see" the shelf inventory at all times, and thus rush fill-ins in
plenty of time. Out-of-stock should be reduced to a minimum.
31. Much of retailing's "paper" work may be handled by huge elec
tronic control centers serving a number of retailers.
32. In very large stores, the shopper may be moved about by small
individual busses—these may very well be the "shopping cart'' of the
future.
33. Walkie-talkie communication in warehouses, retail stores, and of
fices will be common.
34. The telephone company is working on vocal dialing. This should be
perfected by 1965. From the vocal dialing of a telephone number to the
vocal recording of retail orders by the shopper is not a great jump.
35. Shopping expeditions will be less frequent; this trend is very much
in evidence right now.
64 WAYS SCIENCE WILL HELP MOVE MERCHANDISE 125
36. In all merchandise categories, the presold brand will be even more
dominant than it is today.
37. The store-controlled brand and the wholesaler-controlled brand
will assume much greater importance and will be strongly presold. Giant
retailing will inevitably tend toward own-brand exploitation. The great
brand battle of 1965 will be between manufacturers' brands on the one
hand and retailer-wholesaler brands on the other hand.
38. In certain categories, manufacturers will short-cut their route to
the retailer—this means the elimination of the middleman in a few cate
gories. Also, as retailers develop their own brands, manufacturers in some
lines may feel forced into the operation of their own retail stores—espe
cially as retailing becomes increasingly an electronic proposition.
39. Prepricing, preticketing, and prepackaging will be well-nigh uni
versal.
40. Trips to market may be revolutionized. In some classifications, the
retail buyer may be able to "go to market" via the television screen (in
color). This may revolutionize trade shows, etc.
41. The obsolescence rate of not only the retail store itself but also of
all of the retail office, warehouse, etc., will have been greatly accelerated.
This will affect the whole basic concept of retail accounting practice.
42. Margins in many merchandise categories will have been reduced.
This will prod retailers into ever-newer techniques for low-cost retailing.
43. The full-line trend among manufacturers will compel retailers to
develop their own policies of strength vis-a-vis the giant manufacturers.
44. The peak periods of retailing each week will become still more
peaked.
45. Store personnel ratio to volume will be cut considerably.
46. Turnover rates will be accelerated.
47. Retail net-profit percentages will be reduced; but volume will be
greater.
48. Our universities will be instructing students in electronic retailing
precisely as they now instruct students in industrial applications of elec
tronics. Retailing will be able to attract a better type of executive per
sonnel because the retail function will be on much the same level as the
manufacturing function.
49. Retailing will achieve a vastly improved knowledge of the shopper
—facts will supplant much of retailing's present-day guesswork, opinion,
and old-wives' tales with respect to the shopper. And retailing will know
much more about market potentials—it will look ahead rather than back
to last year's figures.
50. Retailing will have developed new techniques for testing and intro
ducing the torrent of new products that will be hitting the market.
126 1010 TESTED IDEAS THAT MOVE MERCHANDISE
51. The frozen-food cabinet will disappear from the food store. Ir
radiated food, bombarded by atomic particles, will require no refrigera
tion. This will change not only retail floor selling practices but will alter
radically many of the traditional steps involved in getting food from the
processor to the wholesale warehouse, to the retail warehouse, to the re
tail floor. Inventory practices, which are now controlled on certain foods
—delivery practices, too—by problems of preservation, will change com
pletely as preservation becomes less of a problem or is totally eliminated.
(Maybe certain drugs now requiring refrigeration will also be irradiated.)
52. The automatic recording of the shopper's buying decisions must be
accompanied by mechanical and electronic devices for recording sales by
totals, by classifications, by item, brand, etc. (Department stores are
making progress here.) A big step in this direction will be the electronic
check-out counter.
53. With the electronic check-out counter, merchandise will be marked
in a code (automatically) that can be picked up by an electronic scanner.
This will actuate electronic computers and other devices which will not
only instantaneously record the shopper's total purchases—but which
will also instantaneously record sales, inventories, etc., etc. Some of these
devices are appearing right now.
54. The moving sidewalk will permit vastly larger parking lots, since
the customer will not have to walk from car to store, or from store to car.
It will also facilitate the movement of purchases from store to pick-up
station or to car. The moving sidewalk will permit larger shopping centers
—the shopper will not have to walk from store to store. It will become a
moving aisle inside the store—the shopper will be transported from sec
tion to section. It is entirely possible that the moving aisle will include fix
tures into which the shopper will place her purchases, thus eliminating
the shopping cart. Moreover, a small electronic computer on each one
of these moving-aisle-connected fixtures could very well automatically
tote up all purchases—thus eliminating the bottleneck of the check-out
counter.
55. The moving sidewalk or moving aisle concept will also make feasible
the use of multistore buildings for the food outlets and other single-story
mass outlets. These moving aisles can move up or down with the same ease
that they move horizontally. This will permit stores, in sections where
ground costs are high, to be as large in square footage as those outlets
located in less costly areas.
56. The electronic conveyor will bring merchandise from the truck to
the warehouse, from the warehouse back to the truck, from the truck to
the various stock areas within the store. Today, most inventory is handled
manually. The enormous cost of manual handling of merchandise in a
64 WAYS SCIENCE WILL HELP MOVE MERCHANDISE 127
high-wage era simply can no longer be tolerated. (The food store right
now probably handles 10 tons of merchandise for every ton it actually
moves into consumption. This will be cut back to a ratio of perhaps
three to one by electronic techniques and by new means of transportation,
packaging, fixturing, etc. It will also be cut by electronic conveyors.)
57. Remarkably new techniques for catching shoplifters will be de
veloped. Closed-circuit TV is right now being used for this purpose; so
are gamma ray detectors. Unquestionably, atomic radiation offers unique
methods for detecting shoplifters—devices will pick up impulses from
packages that have been suitably treated. This is important because shop
lifting is becoming professionalized.
58. The new techniques for electronically recording every step of the
buying transaction will also sharply cut losses that are now due to errors
—intentional and otherwise—at the check-out point and other forms of
internal or employee pilferage.
59. Closed-circuit TV will enable headquarters actually to "look in" on
the floor of any store unit—see what is going on. It will also enable head
quarters to "look in" on various internal departments of each store unit.
Some, if not most, of the present-day field forces will be done away with—
headquarters control will be via the electronic eye.
60. Also through closed-circuit TV, it will be possible to flash promo
tions from headquarters, not merely to each store, but actually to "set up"
these promotions within each store automatically and instantaneously.
Sound impossible? It's being done at this very moment. It is entirely
probable that there will also be small screens placed within the various
shelving areas that will sell—with sight, sound, and color—as the shop
per's hand is reaching out for merchandise.
61. Intercom systems will have a much broader use in distribution
outlets. Right now, inventories are being taken with the aid of walkie-talkie
systems. Once it is possible to have the human voice actuate electronic
recording systems—as Bell Telephone is endeavoring to do right now
with the oral type of dial system—then inventory will be recorded by
voice, instantaneously. Communications between the store selling floor
and the reserve stock areas with the offices, receiving points, warehouses,
etc., will be enormously improved.
62. Vending machines will be given a voice. Recording devices right
now enable the vending machine to "talk back." One such device now
instructs the short-change artist to fork up more money! And the vending
machine, too, can incorporate a closed-circuit TV screen that will do
some fascinating selling.
And now we propose discussing in detail two vast technological develop-
ments that will profoundly affect the movement of merchandise:
128 1010 TESTED IDEAS THAT MOVE MERCHANDISE
63. No more "bad weather" explanations: Is the time coming when re-
tailing will no longer be able to fall back on its time-honored explanation
for failure to meet planned figures—to wit: 'The weather was against
us"? Twill be a sad day—but it's surely a-coming. A new "weatherless"
era for retailing is dawning. It will take three great basic forms:
A. The total retail area—including entire shopping centers, entire
downtown areas, entire parking areas—will be weather-protected and
air conditioned year round.
B. The automobile and all mass transportation vehicles will be air
conditioned, fog conditioned, and better able to travel safely in snow and
ice with new techniques including radar.
C. Weather predicting is finally to become a true science, thanks to
electronic techniques including the electronic computer—and actual con
trol of the weather, over considerable areas, will come in time.
Let's analyze each of these three vast developments, with their enor-
mous implications for mass retailing—and when one bears in mind what
science has achieved over the last five years, surely there are few execu-
tives who will today take the position that "it can't be done."
A. Weather-protected Shopping Areas:
The store units of most mass retailers are air conditioned right now.
But too few stores have efficient year-round temperature-humidity con-
trol. Many factories have achieved absolutely perfect year-round tem-
perature-humidity control (dust control, too). These techniques must be
adapted to the total retail function, including of course, the selling floor.
This will come rapidly. However, much more will be done to free the
shopper from the vagaries and vicissitudes of the weather. For example:
(1) The total parking area must be made as free from temperature,
humidity, snow, ice, mist, etc., as is the store interior. Every winter,
thousands of shoppers have accidents in the parking lots due to snow
and ice—and millions stay home to avoid those accidents. Consequently,
the next step in the parking lot must be to put it under a roof—and also
to provide temperature-humidity control in the roofed parking area. (Step
ping into a car parked in the summer sun for several hours is horrible tor
ture.)
(2) The shopper must be brought by air-conditioned vehicle from
the parking area to the store. And, if she walks, she must walk in weather-
protected comfort from the car to the store—and back again.
(3) Walking from one store to another must be free from all problems
of weather. This means that the total shopping area must be roofed in
and provided with year-round air conditioning—as has already been done
in several shopping centers.
64 WAYS SCIENCE WILL HELP MOVE MERCHANDISE 129
(4) In general, every inch of the shopping way will be free from any
problem of weather. There are too many torturous shopping inches right
now.
B. Air-conditioned Transportation:
There is little question that both the individual car and all means of
mass transportation will be air conditioned within a few years. This means
that the shopper will travel in comfort from home to store—which is an-
other good reason why the total retail area must be weather protected.
It should also be pointed out that more and more homes will be air
conditioned year round. So, with home and transportation having year-
round air conditioning, the total shopping area must provide the same
comforts. And it will!
Moreover, not only will highways be made more free from the hazards
of weather'—right now the great new highways clearly are made more
free from weather problems than the older highways—but great new
scientific progress will be made in a very few years in this phase of
transportation. Car radar is entirely probable. Today, millions travel by
car in weather that would have kept them at home just twenty years ago.
Within the next five years, millions will travel by car and by mass trans-
portation in weather that keeps them home today!
In brief, the hazards of weather are to be considerably lessened with
respect to individual and mass transportation. This obviously means that
bad weather will tend, less and less, to "keep 'em home."
C. Weather Prediction:
The art of weather prediction is now destined to become a science.
This is a development of enormous potentialities. Already, short-term
and long-term weather predictions are considerably more accurate than
they were a short decade ago. But this is nothing when compared to
the scientific progress that will be made in weather prediction within
the next very few years.
The electronic computer, the giant electronic brain, will permit com-
pleting enormously complicated mathematical computations in minutes
that now require days. Moreover, these electronic brains will come up
with their own weather predictions—the automation weather man is
very much on the way.
Consequently, the retail merchandiser can look forward to a time—and
it is not far distant—when he will be able to plan with less fear of unex-
pected foul weather fouling him up. (The new problem will be to deter-
mine the new extent to which bad weather may be ignored by the shopper
—due to better highways, better cars, better parking facilities, etc.)
130 1010 TESTED IDEAS THAT MOVE MERCHANDISE
But the truly great development that may come about within ten years
—and bear in mind that interplanetary travel was "science fiction" for most
business men just ten years ago—will be the forthcoming control of the
weather over large geographical areas.
This potentiality is very much in the top-drawer stage in our program of
defense planning. It may very well be that the first nation to develop
weather control may have a weapon of attack more fearful than the hydro-
gen bomb, or poison gas, or bacteriological warfare.
We cite this point merely to emphasize that weather control is the sub-
ject of military study—which means that it is receiving millions of dollars
for what is almost "crash" scientific research. It will surely be achieved—
perhaps imperfectly in its early days, but with a mounting degree of con-
trol as time rushes on.
64. "No season" era? Will seasons ever be entirely eliminated by sci-
ence? Probably not. But it is certain that science will achieve growing con-
trol over seasons. And that development will mean enormous changes for
those responsible for the movement of merchandise into consumption.
As a matter of fact, changes in public attitude toward the seasons—and
toward the purchase of seasonal merchandise—have come about so grad-
ually over the last few decades as to appear in proper perspective only
when one takes a long backward look. Too many executives view the sea-
sons historically, instead of viewing present and future trends.
It is difficult to believe that, even in the 1920s, the majority of men
donned "long Johns" in early fall. It was only as recent as the early 1950s
that men's year-round suiting fabrics turned to considerably lighter
weights. Yet, despite the traditional reluctance of men to accept change,
men's suitings have gone through a revolution in a single decade—a
revolution of weights and fiber.
It still startles some observers to note that women's swim suits are now
sold in respectable volume in months that, only a few years ago, marked
the total disappearance of swim suits from retail floor inventory.
And, of course, the willingness of the auto owner to drive his car year
round startles those old timers (circa the early 1930s) who remember
when most cars were put into dead storage not long after Labor Day.
The seasons no longer rule completely. The public's attentiveness to the
seasons was just about absolute at the turn of the century. These seasonal
habits were deep-seated both because of deep instincts and because of
habits formed over many generations, backed by folklore.
It required an increasing degree of public sophistication to accept the
premise that our lives need not be ruled by the seasons. There is reason
to believe, for example, that if air conditioning had been introduced at
the turn of the century, it would have met fierce resistance. Indeed, it met
64 WAYS SCIENCE WILL HELP MOVE MERCHANDISE 131
a total of five, and surely when they reach a total of six, the law of dimin-
ishing returns has probably been reached. Sunday retailing may lessen the
need for five and six night openings.
The near-term object of retailing, with respect to store-open hours, must
be to bring the weekly total down to a maximum of 50 hours. Inasmuch
as fully half of this nation's total retail volume will soon be done in from
15 to 20 hours of the week, and since most of these 15 to 20 hours will
be evening hours (plus some Sunday hours perhaps) that 50-hour ob-
jective should not be entirely beyond possibility.
We emphasize the importance of experimental schedules because it
will do little good to attempt research that asks the shopper in effect:
"What hours do you want us to remain open, day by day?" The unfor-
tunate truth is that shoppers' answers to that type of research are almost
entirely without significance. The shopper just doesn't know what hourly
and daily schedule will appeal to her most—until a schedule is made avail-
able to her. Then, by her shopping action, she registers her vote—which
then becomes a vastly more meaningful vote than a vote based on a vague
opinion.
It is vital to bear this in mind since many retailers attempted to question
shoppers about evening hours some years back—and, in many instances,
were steered away from nocturnal schedules because so many shoppers
indicated that night hours would have little appeal to them. But when the
night hours were made available, shoppers made it abundantly plain, by
shopping action, that they would shop in profitable numbers and volume
at night once nocturnal hours were presented to them.
Shoppers Who Shop for "Ideas"
One of the great department stores estimates that—in its furniture de-
partments—no less than six out of every ten shoppers are really shopping
for ideas. At maximum, only four out of ten are actually ready to make
a purchase.
Now there is no way to determine what percentage of the traffic in
any department or in any store is shopping for "ideas." Certainly in fashion
and "big-ticket" departments the percentage is high. In departments sell-
ing staples, or low-ticket items, the percentage shopping for ideas tends
to be low.
However, this much is sure: One of the fundamental objectives of all
merchandisers must be, really, a twin objective:
1. Provide the shopper with ideas, ideas, ideas.
2. Plan so the shopper who gets an idea will immediately translate that
idea into an actual purchase.
This is a somewhat new concept in modern merchandising—and it is
just taking hold. In other words, retailers have become aware that prob-
31 MASTER STROKES THAT MOVE MERCHANDISE 137
ably the majority of the traffic in their aisles is really looking for "ideas." As
a consequence, they are beginning to display merchandise as "ideas";
ideas that will tend to impel the shopper to say "Now that's the very idea
I was looking for."
In foods, the shopper may be looking for "ideas" involving recipes, new
menus, or new types of food; in cosmetics, for "coloring" ideas.
In ready-to-wear, the feminine shopper in particular is obviously always
looking for fashion ideas (which is one reason why some ready-to-wear
merchants are using more and more manikins).
In home furnishings of every description the shopper is looking for
ideas involving current trends in decor, color, etc. This is one reason why
several merchants are now arranging for "guided tours" of their model
rooms—clearly a "guided tour" can give the shopper many ideas, give
the shopper much more self-confidence. (And the shopper who gets an
idea in the merits of which she has confidence has gone a long way toward
making a purchase.)
Take a look at the traffic in various stores. Note how the shoppers are,
to an astonishing degree, shopping for ideas. Then ask: "Am I merchan-
dising in a way to give the maximum number of shoppers the maximum
number of sales-making ideas? And then, having given them ideas, am I
doing the most effective job of cutting down the time lag between im-
planting an idea and making the sale?"
The Decimal Point Curtain
Add to the iron curtain, the bamboo curtain, and the paper curtain—
the decimal point curtain.
What is the decimal point curtain as applied to retailing? It's simply
the slavish adherence to arbitrarily established, arbitrarily enforced, and
blindishly applied percentages at the control level of retail operations.
Adherence to decimal point policies in retailing dictates that:
1. A specific percentage of gross profit must be made.
2. Realistic markdowns are not taken if the department has already
achieved a percentage performance.
3. During sales events, markdowns are taken on merchandise that could
be sold at full markup.
4. Markups are made with a slide rule rather than on the basis of what
the customer will pay.
The modern executive understands that the true retail function involves
an ability to determine the real value of an item or a line—and to set retail
accordingly. Moreover, the modem executive is increasingly concentrating
on gross dollar—rather than so strictly on percentage mark-on.
What this really means is that there is a return to the retailer's original
role of functioning as a merchant—rather than as a percentage calculating
138 1010 TESTED IDEAS THAT MOVE MERCHANDISE
It's been said time and time and time again that the best prospect for
more volume is the customer in the store.
And there are few more profitable sales than the sale of a second, third,
and fourth unit to the same customer.
How does a merchandiser go about stepping up multiple sales? Well,
the food super is as good a model as any; and this is how this dynamic
merchandiser steps up multiple sales:
1. It finds out the shoppers' consumption or usage habits. This is im
portant—because, clearly, the shopper will not buy in multiple units un
less the way she and her family use the item make this a sensible thing
to do.
2. It packs the multiple unit attractively. This is a vital factor—smart
packaging is of enormous importance in multiple selling.
3. It displays the multiple unit forcefully. This may mean special fix
tures, special locations (including "outposts"). It may mean special sign
ing.
4. It develops a pricing point that suggests "savings" or "economy" to
the shopper.
5. It stages periodic promotions on multiple units.
To all of this, add the selling power of salespeople. This means training
salespeople in the art of multiple selling. It may also mean special in-
centives for salespeople to encourage them to make more multiple sales.
It may mean window displays of the multiple unit and effective newspaper
advertising.
Yes—multiple units offer multiple volume-profit opportunities.
Do You Know America's Greatest Retail Business?
The greatest retail business in this nation is the business that walks
out of every store, every department, every section, every day, unsold.
In some hard-goods and home furnishings stores, only from 20 to 30
per cent of the traffic in the store at any time make a purchase. And of
those who buy, only half buy as much as they could be sold that day.
In some soft-goods stores—varying department by department—only
from 30 to 50 per cent of the traffic makes a purchase, and, of these, only
half buy as much as they could be sold that day.
Yet the public wants to do less and less "shopping around." Why then
does the "half* walk out, the "quarter" walk out? And, as shoppers con-
centrate their buying trips into fewer and fewer hours each week, with
resultant jamming up of retail aisles during these peak hours, why do
the walk-outs and the "half" walk-outs and the "quarter" walk-outs
multiply?
There is not the slightest doubt that almost any retail store and almost
any department or section could add at least 10 per cent to its total dollar
31 MASTER STROKES THAT MOVE MERCHANDISE ]41
card, at the time she opens her charge account. This card reads: "This
customer is a 'woman who works'—please give her particularly prompt
service." While this card is given to all women who work, it obviously is
particularly appreciated by married women at work.
There are other little services that can be developed. For example, if
the married worker wants her husband to approve a contemplated pur-
chase—make it easier for this to be done. When wife and husband shop
together—and this is increasing all the time, especially at night—why not
let the working wife know how she is catered to during daytime hours?
Why not an occasional promotion directed specifically at wives at work?
And why not an occasional ad paying tribute to these wives at work—
these women who double and triple in brass and who, in many instances,
work as hard and put in as many hours as did any pioneer woman?
As a matter of fact, retail store people should be particularly under-
standing and sympathetic with respect to wives at work—because so many
store people are themselves wives at work! Check your own problems,
your own feelings, your own requirements—ask yourself what you would
like a store to do to make shopping for married women workers faster,
more pleasant, less prone to annoying time-consuming errors, etc.
Then put that kind of program into effect—and watch volume with
wives at work promptly work its way up to new highs!
Plugging the Return-goods Leak
The shopper is, admittedly, responsible for a sizable percentage of total
returns. The supplier is also responsible for a sizable percentage of total
returns.
But the largest part of total returns is directly attributable to the sales-
person. And a substantial percentage of these returns stem from lack of
knowledge.
Any large store that could eliminate returns could add from 20 to 60
per cent to its net profit! But, since that calls for perfection by all involved
in the process of selling and buying, from manufacturer to shopper, returns
will never be eliminated. Perfection simply doesn't exist on this earth. Re-
turns due to salesperson error, however, can be lessened. And here are
some specific suggestions to that end:
1. Analyze all returns. Determine, insofar as possible, the real reasons.
Where the salesperson is involved, follow through from that point.
2. Draw up a list of the most common reasons for returns. Put them
on paper. Display a copy where each salesperson can see it frequently
throughout the day.
3. Offer a small prize for the best record on returns by salespeople. Re
peat the offer periodically.
144 1010 TESTED IDEAS THAT MOVE MERCHANDISE
and report the new items they spotted. Most important, have them repor
whether salespeople talked up a new item—and, if so, how effectively.
A store's total performance can usually be measured by the job it is
doing with new merchandise. Here is the great opportunity for the extrs
sale—the more profitable sale. And here is the great opportunity to gel
over to customers that a store brings them the mostest in the newest,
That's a good reputation to build!
"But We Might Have a Call for It"
Right now—at this very moment—many, if not most, retail inventories
could benefit from a realistic pruning of assortments.
But this move toward a faster-turning inventory can never be achieved
so long as managers approve the continued appearance of an item in
inventory because "We might have a call for it." Yet it is both amazing
and discouraging to note how frequently this "reason" is the sole circum-
stance explaining the continued retention of an item in stock.
These numbers for which "we might have a call" are, in truth, merchan-
dise oddballs. They clog up inventory, tie up money, slow down turnover,
and slow down net profit even more than turnover.
Ships accumulate barnacles. So do inventories! But ships are put in
dry dock every year or so to have the barnacles scraped off. Unfortunately,
a department's inventory is rarely sent to dry dock for barnacle removal.
Tradition, habit, and that fear of being unable to satisfy the oddball
shopper are at the bottom of so many topheavy, lopsided inventories. And
to make matters worse, as a direct result of inventory investments in slow
movers, funds are sometimes not available to keep a balanced inventory
in the fast movers. That, in turn, means that regular shoppers are turned
away, become "walk-outs" because a mythical shopper may make a call
for an almost dead item.
Inventories in outlets other than high-prestige specialty stores were
never intended to provide 100 per cent service to 100 per cent of the shop-
pers. Mass outlets must stock mass inventories, and this means, essentially,
inventories that will satisfy perhaps 85 to 90 per cent of the shoppers.
Any attempt to appeal to the handful of fussy shoppers can only result in
needless duplicity, overlapping that fouls up the inventory position, that
slows down turnover, and that actually confuses customers because they
are exposed to a jumble of duplicated brands and lines.
Mass outlets must aim for inventories that are concentrated, inven-
tories that represent narrow assortments of sure-fire sellers which are
stocked in depth. As things stand now, too often a department is out of
half the items on half of the excessive lines stocked—which, if anything,
31 MASTER STROKES THAT MOVE MERCHANDISE 147
is more annoying to customers than saying "We don't carry that, but we do
have such-and-so, which is really better because. . . ."
Planning inventories "because we might have a call for it" is the sure
formula for poor performance. Plan inventories "because we have regular
calls for it"—and you'll satisfy more of your customers more of the time.
Dissecting the Night-prowling Shopper
Most executives are startled when they are told that perhaps 50 per
cent of our total retail volume is being done after 4:30 P.M. Total it up—
food, drug, auto, appliances—from 30 to 60 per cent of the week's volume
in these major lines is done after 4:30 P.M. In their branches in particular,
department stores account for 30 to 40 per cent of the week's volume at
night. Etc., etc.
The night-beat customer may be the same as the daytime customer. But
she buys differently. And she buys different things. What's more, she is
usually accompanied by her husband; frequently by the entire family.
Pop has more of a buying voice at night; so does the teen-ager. And buying
is done with breath-taking speed.
There are other differences in the nocturnal customer. Her average pur-
chase is apt to be larger. The buying decision is made more quickly—
usually because Pop and the family are right there: no need to "come
back later." There's less shopping at night—more buying. We could add
to this list, but, obviously, the nighttime shopper differs by location, by
type of store, and by a store's nocturnal promotional activities, etc.
Consequently, it is vitally necessary these days—we mean these nights!
—to do some night prowling on the store floor. There is, really, only one
truly enlightening way to study the nocturnal customer, and that is by
watching her, listening to her, talking to her—at night!
The bald fact is that few stores know the nocturnal customer well
enough to plan for her specifically. Most store buying, merchandising,
promotion, and planning is done with the daytime customer in mind. This
is the way it has been done for years, and habit is hard to break.
Much the same was true of most stores when they went out to the
shopping centers. Then it was discovered that the suburban customer
buys differently. Today, the better stores all merchandise specifically to
the requirements of the customers of each store by location, rather than
by rote or by habit. But the same procedure has not been broadly applied
to the nocturnal shopper. She tends to get the same program as the day-
time shopper. And this is usually as wrong as trying to sell the shopping
center customer the same inventory stocked downtown.
Join the night beat. Get out in the aisles—at night. And get out in the
148 1010 TESTED IDEAS THAT MOVE MERCHAND1S
parking lot at night, too, because as customers walk to the store and walk
back to the car they talk; and what they talk about may help to sell more
more profitably at night.
Needed: Bigger Average Tickets
There are, really, few reasonably successful stores that suffer from
lack of traffic. What is more, promotions aimed primarily at increasing
traffic pull in higher traffic counts, usually, only at extremely high cost.
No, the major problem in retailing is not the traffic count; the major
problem is the average ticket. The average ticket has moved up too slowly
(particularly after allowing for rising prices and higher price lines). More
over, when the diversification of inventory is weighed (more classifications
assortments, etc.) the average ticket in ratio to inventory has at best just
held its own.
In every section, in every department, in every classification, the big
problem in modern retailing is how to sell more to the traffic in the store.
not how to pull more traffic into the store.
Here is a check list of some things executives should study in order to
achieve a higher average ticket:
1. Since most retail volume is done in a few peak hours, study traffic
jams, bottlenecks in the department. The customer who can't get near the
merchandise, or who waits too long to complete the transaction, will never
buy as much as she could be sold.
2. Study the related display of merchandise. Effective display of re
lated items, effective coordination of style items, methods of cross refer
ence and cross selling, easing the customer's path from one section to a
related section, "roving" salespeople, display suggestions—these and other
steps can be taken to do a better job of suggesting related items.
3. Promote the credit system more dramatically, more constantly, to
in-store traffic. Credit availability is one of the great techniques for induc
ing customers to buy more. Remind, remind, remind traffic about credit.
4. Do a better job with the store directory. Most directories are incom
plete, too few are displayed, and too many customers are sent on wild
goose chases by uninformed salespeople. Identify even small sections
boldly.
5. Effective signing can induce more shoppers to cover larger areas of
the store. Too much in-store traffic never covers more than 15 to 25 per
cent of the store area.
6. Provide facilities to help shoppers tote their purchases around the
store. The shopper's arms may be full long before her purse is empty.
7. Under self-service and self-selection, trying to find small items in
particular can be tough. Try it yourself sometime in a strange department.
31 MASTER STROKES THAT MOVE MERCHANDISE 149
Effective stock control places that information before the right store
people. But nothing is more useless than statistics that are not prompt
analyzed, intelligently appraised, and immediately acted upon.
In most retail organizations there is no dearth of facts. But there is some
times weakness in ferreting out the true story the facts tell, determining
the proper course of action, and then taking action.
No control system can make decisions. No control system can take
the place of brains, determination, courage, action.
A system is only as good as the individual who uses it. It's better t
evaluate smartly and act upon decisively a minimum of information
than to flounder in a lot of information that is seldom used.
There is critical need for a new order in reordering. And the time is now
"Our" Customers
It is common practice for store executives to refer to "our" customers.
And, equally commonly, the store executive takes the position that hi
has a precise picture of "our" customers—whether he is talking about
customers of the store as a whole, or shoppers in a specific department o
section.
But more often than otherwise this presumably vividly clear picture o:
"our typical shopper" is really quite foggy. Often, it is imperfect, inac
curate—and sometimes, as the lawyers would put it, it is immaterial, irrele
vant, and incompetent.
That typical customer, so neatly impaled on a pin stuck up on an ex-
hibition board, too frequently is more tradition than fact, more historical
than present day, more a creature of habit of thought than a creature of
deep thought.
Practically any store, practically any department or section that gears
its operation to very much the same basic type of customer as it did even
five years ago—and certainly ten years ago—simply is operating in a
world of fantasy, of illusion.
This nation's shoppers have gone through a total revolution in the last
decade—and a big part of that revolution has occurred during the last
five years. What is more, shoppers will change even more rapidly in the
next five years than during any previous five-year slot in retail history.
That is why one of the country's most exclusive women's shops opened a
department for career girls—an amazing change for a store that catered
to the 400. That is why one of Chicago's great prestige department stores
now stages warehouse sales. That is why food supers now inventory exotic
foods—ant eggs and such. That is why the variety chains now inventory
mink.
There is only one permanent thing in merchandising—change.
31 MASTER STROKES THAT MOVE MERCHANDISE 153
And it is evident on every hand that the shopper tends to change her
spots more rapidly than does retailing. Yet, if the retailer is to continue
to function as the shopper's purchasing agent, it is imperative that retail
executives refrain from indulging in tie costly luxury of "standpatism."
Any retail executive who has been wedded to exactly the same typical
or average shopper in his store or department for more than a very few
years would do well to think in terms of a divorce! Too often, when a
merchant says "For years we've been catering to the same type of shop-
per"—what he really is saying is that "Our policies attract the same type
of shopper." This must mean, in turn, that he is merchandising to the short
end of the stick; and that end is getting shorter and shorter. That is be-
cause shoppers with new habits, new generations of shoppers, always out-
number shoppers with fixed habits. Thus a merchant who continues aim-
ing too long at a shopper species that is declining, eventually finds him-
self with a declining volume. So touch up that picture of "our" customer
and never stop. Change marches on.
How Much to 'Torture" the Shopper
Some giant retail businesses have been built in recent years on the still
novel premise that sizable segments of the shopping public will not only
accept a certain amount of "torture" when shopping, but will even wel-
come it (provided that these shoppers are persuaded they are getting
values).
For example, in many discount houses, the floor procedure is definitely
not calculated to make heavenly the shopper's buying transaction. To the
contrary, the shopper is subjected to a certain amount of "torture"—right
there on the floor—yet these stores are thronged. (Incidentally, the "tor-
ture" that shoppers not merely put up with but seem actually to enjoy in
some discount stores is almost incredible.)
Similarly, the willingness of the shopper to tote huge packages out to
a car that is not always within a few feet of the store door, cram those huge
packages into the car, push and tug to get it out of the car when arriving
at home, push and tug to get it into the home and set up—all this, too,
frequently borders on the incredible.
In many of the cash retail operations, the willingness of the shopper to
draw large amounts of cash out of the bank, tote it to the store, and risk
losing it also challenges belief.
In some self-service outlets where neither carts nor baskets are provided,
the shopper performs amazing feats of juggling and toting in order to
accumulate multiple purchases—and does it quite cheerfully.
A variety chain reports that it has excellent results selling room-sized
rugs in the lower price ranges. Somehow, the shopper gets them home.
154 1010 TESTED IDEAS THAT MOVE MERCHANDISE
Ditto for great volumes of major appliances. Ditto for furniture. And ditto
for every conceivable category of merchandise. Why, even when Mom gets
home from a food-shopping expedition, she may have to make no less
than six trips up and down from the upstairs kitchen to the downstairs
garage to get the food purchases out of the car and into the freezer or
pantry. She'll take that same car (so will Pop) rather than walk a block,
but she'll climb a total of six floors quite cheerfully and so will Pop (albeit
somewhat less cheerfully) to get purchases in the home.
What does it all prove? Well, it all goes to prove that there is scarcely
any limit to what millions will not merely put up with but actually will-
ingly accept—so long as there is a promise of value, and so long as there
is some degree of excitement, of doing, of saving time. We've yet to see a
shopper walk out with a piano on his back, but ever since two men pilfered
a canoe from a department store in broad daylight, we've been on the
lookout for the shopper turned piano mover! Seen any around?
Too Much Timidity about Higher Price Lines
The financial ability of millions of our shoppers to buy higher, and still
higher price lines has moved far ahead of the merchandising of higher
price lines. We are coming into an age of luxury, an age of the super deluxe,
of the custom-built, of gold trimmings.
The public's financial assets make this possible, and its growing sophisti-
cation makes it still more probable. And much the same public that flocks
to low-margin stores for low-end lines will flock to other stores for higher-
priced lines.
It is interesting to note that a number of manufacturers, in classifications
as far ranging as woven floor coverings and housewares, domestics and ap-
parel, have brought out special exclusive, custom-made numbers priced
at high pricing points. One of the notable examples is so-called gourmet
ware—the turnover in these high-price-line numbers of housewares is
mounting with remarkable rapidity; yet housewares in general are being
price slashed right and left. Even the food super—what with price specials
and trading stamps and premiums—is doing a fantastic job with gourmet
foods!
Some departments that have done a particularly intelligent job with
higher price lines have been able to step up the net-profit ratio substan-
tially. Moreover, in several of these departments, the higher price lines are
actually contributing a major part of the total net profit, although in dollar
volume their total is not big.
This does not suggest that a department should be turned over, lock,
stock, and barrel, to higher-priced lines. After all, both the store and the
department must be competitive.
But it does suggest that executives might very well experiment more
31 MASTER STROKES THAT MOVE MERCHANDISE 155
with higher price lines. A bit more of the courage shown in pricing for the
Christmas season may work wonders both during other seasonal events,
and throughout the year. (Year-round gift buying, one of the great mer-
chandising trends of the year, plays a role here as well as larger public
income and more public sophistication.)
Even in many staple lines, new markets are being created in much
higher pricing points. And in other merchandise classifications, special
designs, special constructions, special packages are providing opportu-
nities for ever higher pricing points.
There is no question—no question at all—that by 1965, a look back to
the years between 1960 and 1965 will make it vividly clear that stepped-up
price lining had been one of the greatest contributors to retail net-profit
ratios. Instead of waiting for that backward look, why not look ahead and
improve net-profit showing with an improved job of merchandising higher,
and still higher price lines?
Barnacle Brands
Practically every retail operation tends to accumulate duplicating brands
—like a ship accumulates barnacles. It happens for many reasons—com-
petitive pressures, the lure of special deals, etc. At this very moment, in
most stores, shoppers are faced with a larger number of competitive
brands than ever before.
Now it is self-evident that the shopper can be faced with so many brands
that are quite similar in appearance, in price, etc., as to become confused,
unhappy, and even somewhat annoyed.
This is particularly true under the prevailing conditions of self-service
and self-selection shopping. With less salesperson guidance, with mer-
chandise simply out on open and uniform display, with too little printed
selling, an inventory showing too many duplicating brands can become a
disservice to the majority of shoppers rather than a service. Too many
competing brands slow down the shopper, and the one thing the shopper
wants to do is to shop faster.
And of course anything that slows down the shopper slows down inven-
tory turnover. This suggests two basic courses of action to executives:
1. Arrange for periodic house cleaning of brands. Retailers tend to ac
cumulate brands almost without being aware of it.
2. Practice brand concentration rather than brand scatteration in mer
chandising and promotional activities. In each category there should be
one, two, or three brands which your figures and your long-term objectives
clearly show to be your best bets. Give these brands special merchandising
attention—and give them special promotional emphasis.
Those two policies really work together. The more a merchant con-
centrates on one or several well-selected brands in his merchandising and
156 1010 TESTED IDEAS THAT MOVE MERCHANDISE
promotional work, the more obvious will it become that the weaker brands
should be dropped.
Simultaneously, it is wise to check back into the circumstances that led
to the inventorying of the poorer brands in order to avoid these same errors
in the future.
Nobody can have every brand every customer wants. And bear in mind
that customers will shop elsewhere—even if a merchant has every con-
ceivable and inconceivable brand. Trying to get 100 per cent of the shop-
per's purchases by having every brand is just too costly—and the goal is
impossible to reach.
And over all, remember that in this self-selection shopping age it is the
interrupting note that stops the shopper—you'll achieve that best by
selecting worthwhile brands for special merchandising emphasis.
How to Get Better Housekeeping
Better housekeeping in a retail store involves not merely cleanliness, not
merely orderliness, but also improved displays, better balanced inventories,
etc. Everything that gives a department a stronger sales appeal really
comes under the heading of "better housekeeping."
But let's face it—the problem of achieving better housekeeping was
never more difficult to lick than it is today. As a matter of fact, the old-time
frontal approach just can't be used; it won't work—and it will usually tear
down rather than build up.
But if better housekeeping is made a game, and if the game includes an
incentive, then at least some aspects of store housekeeping may show an
improvement. One such program that can be adapted by many stores and
departments operated as follows: (1) A list of the specific aspects of house-
keeping to be included in the event was drawn up. (2) A quota of points
was assigned to each of these facets of housekeeping. (3) The entire pro-
gram, instead of being given such a humdrum theme as "housekeeping,"
was themed: "Sales Appeal Award." Thus, cleanliness was rated at 30
per cent, merchandise arrangement—30 per cent, stock in drawers or
cases—15 per cent, adjacent stockroom appearance—10 per cent, etc.
(4) Then 12 inspection teams were appointed. The members of these
teams were actually drawn from top management—even the store presi-
dent was included, as well as other management executives, divisional
merchandise managers, etc. (5) These teams were scheduled to check—
unannounced—each section in the store. (6) Each section was to be
checked by two different executives, at two different times, and their
scores were averaged. (7) A full week was set aside for the event. (8)
The event was covered in the employees' bulletin, in locker room posters,
with the paychecks, etc. (9) The prizes were made particularly attrac-
31 MASTER STROKES THAT MOVE MERCHANDISE 157
tive—both cash and certificates. (10) Daily postings were made during
the event. (11) Winners were invited to lunch with management to re-
ceive their prizes and certificates. (12) Their photographs were sent to
the local newspapers—and were used. (13) Throughout the entire event,
good humor was employed—cartoons, sketches, publicity, posters, every-
thing was keyed to fun.
And then, to cap the event, special "Sales Appeal Awards" were given to
those departments, and department heads, with the best showing.
Does this solve the housekeeping problem? No it doesn't. But it helps.
Do the improved results continue? Not forever—but some of the progress
is retained.
Store housekeeping tends to be at an all-time low. An event such as
this one can at least pick it up out of the subcellar and bring it up, even if
only temporarily, to a respectable level. Then if the event is repeated at
logical intervals, steady and consistent improvement may materialize.
Making Friends among Supplier Salesmen
It is the supplier's salesman who presumably should move heaven and
earth to make friends—good friends—of his customers.
But it takes two to make a friendship. And, in the world of salesman-
retailer relationship, it may take more than orders (nice as they are!)
really to establish a deep friendly relationship with a resource salesman
who merits that kind of relationship.
One merchant we know has made it a practice over the years to write
an occasional letter to the president of a supplier to express appreciation
for the services rendered by one of that supplier's salesmen. He tells us
that the results of this small gesture are almost unbelievable. Moreover,
he has found that the larger the corporation—the more amazing are the
results. But let's give you the story in his own words:
Some months ago, I wrote to the president of one of our largest hosiery
mills. I told him how his salesman had helped me to control my inven-
tory, increase my volume, improve my net profit on hosiery, and still serve
my customers better. I mentioned how this program, at the start, had actu-
ally resulted for one season in a smaller order for his brand. But then I
told him how our volume on his brand had since picked up—and I ex-
pressed my appreciation for the job this salesman had to do.
First I got a telephone call from the president of that giant hosiery mill
thanking me for my thoughtfulness. Then I got a letter from the sales
manager saying that the president had called him in, read my letter to
him, asked him to compliment the salesman, and directing that a copy
of my letter be sent to the entire sales force.
Then I got a phone call from the salesman thanking me for what I had
done. And, a month or so later, when that salesman made his regular call
158 1010 TESTED IDEAS THAT MOVE MERCHANDISE
on me, it was obvious that he had been giving my account even more
study than usual because he had some ideas all worked out to give me.
Moreover, he went over my inventory even more closely than ever before
—and he wound up saying that he had been authorized to give me, for
free, a brand new and expensive floor fixture.
If a simple letter can accomplish that much—and it can!—why not take
time out occasionally for a bit of praise for a supplier salesman when
praise is due and maybe overdue? The salesman is on the receiving end of
beefs—constantly. Usually the only time his home office hears about him
from an account is because of a complaint. He gets pounced on by the
trade, by his manager—and probably by his wife when he gets home for
a week end!
A deserved pat on the back for a supplier salesman, under these cir-
cumstances, might work miracles.
Bring Down Transportation Costs
Retail net profit is measured in tiny percentage figures. This suggests
that tiny percentage figures in the form of cost saving can make substantial
additions to net profit.
It is significant to note that the two largest retailers in this country—
one in food and the other in general merchandise—are currently engaged
in deep studies designed to cut their transportation costs. They are putting
costly electronic calculators on this job. And they are looking for penny
savings.
Transportation costs can be brought down in these ways:
1. Groups of independent retailers and smaller chains are jointly em
ploying transportation or traffic experts as advisors.
2. Merchants are corresponding with the transportation departments of
major suppliers to work out more economical shipping procedures.
3. Merchants are working more closely with transportation agencies to
obtain better advice on this subject.
4. Buyers are being instructed in how to arrange buying programs for
more economical shipping—and how to write up orders so as to obtain
the lowest possible transportation costs.
5. In some areas, the local Board of Trade has instituted special studies
on the subject of more economical transportation techniques.
6. Out on the Coast, several food chains have actually pooled their re
sources to build a jointly owned and jointly operated warehouse which
promises to reduce shipping and reshipping costs substantially.
7. Several merchants report that they are questioning all of their tradi
tional incoming shipment procedures on the premise that any plan that
has gone along unchanged for a number of years may now be outdated.
There is no question that many merchants who have successfully re-
31 MASTER STROKES THAT MOVE MERCHANDISE 159
out where the customer can pick it up, or feel it, or examine it. Sometimes
some merchandise is knocked over by aisle traffic—but the loss here is
tiny compared to the volume done on a square-foot basis. They show
little, if any, dead space.
So take a fresh, new look at that department or section, a look con-
centrated toward just one end: to find dead or practically dead space and
then to breathe vital sales life into it. Happy hunting!
8. In brief, these executives function very much as did our most suc-
cessful old-time merchants—on a personal basis with customers and with
personnel. They employ that magical personal touch.
How Much Fussing over the Fussy Customer?
It's been said that there's a "lunatic fringe" among shoppers—customers
who are excessively fussy, unreasonably demanding, almost impossible to
please or even satisfy.
How much fussing is warranted over the fussy customer? Well, con-
sider these facts:
1. The fussy customer is, of course, particularly vociferous. She may
constitute no more than five per cent of customers—but she may make
"more noise" than the remaining 95 per cent. Don't be panicked by the
clamor she raises.
2. The fussy customer uses services;—costly services—to an extraor
dinary degree. And she is constantly demanding "special" services, some
of which tend to become "regular" services after a time. She may repre
sent only 5 per cent of the customers, but use 20 per cent of the services
rendered by a store.
3. The fussy customer, if excessively catered to, compels expensive
additions to inventory which slow down turnover.
4. The fussy customer takes two and three times the amount of time
to complete a buying transaction. This adds to costs.
5. The fussy customer is one of the causes of costly employee turnover.
6. No matter how much the fussy customer is catered to, she seldom
puts in a good word for a store because she simply cannot be satisfied.
Since her family and friends tend to recognize her eccentricities, her com
plaints to them about a retailer are not given much weight.
7. The fussy customer tends to be a disloyal customer—she wanders
from store to store.
8. She causes walk-outs by monopolizing sales help time and attention.
Many, if not most, retail executives have modified the old-time policy
which preached that "the customer is always right." But because the fussy
customer tends to be so outspoken, so persistent, so threatening, there is
perhaps a too-common tendency to overrate her importance.
The important point to bear in mind is that the fussy customer is not
quite the "boss" of retaildom that she imagines herself to be—and that
she usually represents loss, not net profit. She perhaps must be tolerated,
but that does not imply that she need rule the roost!
Needed: More Retail Volume per Labor Hour
To date, retail payroll costs have shown no downward tendency. If
anything, the trend continues up. This is the critical problem of retailing
162 1010 TESTED IDEAS THAT MOVE MERCHANDISE
today. Retail net profits simply cannot rise until the payroll percentage
drops.
The acuteness of the problem is graphically delineated when it is borne
in mind that the payroll percentage has not declined despite rising price
lines, despite larger total dollar gross, despite diversification in inventory
classification, and despite self-service.
In the majority of retail operations, these great changes in retailing
have—at best—merely succeeded in braking the upward trend of wage
costs. It is particularly disturbing to note that the introduction of self-
service in retail areas where it was not formerly used has in no way
duplicated the performance of the original food supers.
Where can the executive in retailing look for techniques that hold po-
tentials for cost slashes? Basically, these are the functions to which smart
executive thinking must be applied:
1. The more effective use of part-time employees. Most retailers ac
count for 75 per cent of their gross in less than 25 per cent of store-open
hours—this spells out the need for more part-time employees. These part-
timers can also cut down the gigantic volume lost during peak hours.
2. Fixturing for a higher gross volume per square foot. Discount houses
report square-foot figures from three to eight times that of other outlets.
(A developing trend toward the leasing of fixtures may make practical
more drastic fixture changes and free capital for other purposes.)
3. Concentrate on dollars not percentages. Percentage-itus is a root
cause of poor volume per labor hour.
4. Speed up the completion of the shopper's buying transaction. Even
the order books commonly used require a horribly large amount of time in
many stores. Ditto for wrapping, change-making, etc.
5. A better analysis of vendors. Some vendors have programs that
make big contributions to more volume per labor hour; some don't. Have
accurate figures on this point.
There are other policies to be examined—more flexibility in price lining,
improved selection of personnel, new personnel incentive systems, etc.
Whatever the techniques, the great objective must be more volume per
labor hour.
Customer 111 Will at Closing Time
How many of your customers have left your store at closing time thor-
oughly grumpy and even vowing never to return?
There is no question that a disturbing percentage of the customer good
will built through numerous policies and at high cost is changed into
antagonism at closing time. Too many floor people begin "closing down"
ten minutes, twenty minutes, even a half hour before closing time. They
31 MASTER STROKES THAT MOVE MERCHANDISE 163
resent the presence of customers at this time. And they too frequently
make no effort to hide their resentments.
Have you ever shopped your store or department just before a closing
time? Try it. Note how many of the floor people are busily engaged in
housekeeping. Note how many are clearly trying to rush their customers.
Note how many are clearly trying to discourage customers from starting
a purchase—one of the techniques is to ignore the would-be customer.
Unquestionably, there is a higher total of both lost sales and lost cus-
tomers during the fifteen or twenty minutes before closing time than
during twice that time period at any other part of the day.
What to do about it?
1. This is the time for store executives to be on the floor, to circulate on
the floor, to note what is actually taking place, and to take appropriate ac
tion. The presence of one or more executives on the floor just before closing
time, as a regular practice, will go a long way toward correcting this situa
tion.
2. Arrange for special shopper reports during this time period, and offer
rewards to salespeople recommended by shoppers. An incentive can be a
big help in this situation.
3. Compile figures on the volume done during the closing half hour.
When the figures move up—as they will if the customer is given half a
chance to buy during this time slot—show the staff, on a chart, how
courteous service up to the closing gong can add to volume. Then reward
all employees with good records for this achievement.
In brief, the gentle art of winning and holding customers during the last
few minutes of each day involves: (1) the on-the-floor presence of an
executive, (2) uncovering those who discourage shoppers from buying,
and correcting their attitudes, (3) compiling volume figures and sharing
them with the staff, (4) special incentives.
More and more, closing time has become a half hour lost to retailing.
Pick up that lost half hour—it can add greatly to volume and profit.
If It's Hot—Make It Hotter
Every so often, a new line, or item, or fashion will show every unmis-
takable sign of becoming "hot."
It is no trick simply to move along with a "hot" item. But it is a real
trick—and a mighty effective trick—to make a hot item still hotter, to play
it for all it's worth.
When a department or section head does more than simply climb aboard
a fast mover, when he actually gets into the caboose and shoves the
merchandising-promotional engine into high, then he can achieve:
1. A gratifying increase in volume.
164 1010 TESTED IDEAS THAT MOVE MERCHANDISE
their greatest surface—thus they can be easily seen from a standing posi-
tion and hit the shopper with the greatest possible impact. Another trick
is smart shelf planning; thus, in this store, the lowest shelf may be 22
inches deep and 12 inches high, with the next shelf up being 14 inches
deep and 10 inches high. Each shelf thereafter decreases by 2 inches in
depth but remains 10 inches high. In general, bottom shelves can be made
to do a better job by giving them special fixturing and display attention.
A woman who bends constantly in housework, gardening, etc., will bend
for a bottom shelf—if the proper appeal is made. As for the increasing
droves of men shoppers—they have little, if any, objection to bending.
Store-fixture Leasing May Soon Be a Trend
The tax situation and the problems of capital entailed by the competitive
need to expand combine to suggest the wisdom of applying the leasing
concept to new fields. Thus, truck leasing is moving ahead rapidly, and
now car leasing is making big gains, also. One of the newer fields for leas-
ing is store fixtures. Several companies now specialize in this field. More
will probably operate in this field before long. Some stores have arranged
to sell their fixtures and then lease them back on a purchase lease-back
plan. (One company in this field claims to have leases totaling almost $100
million.) Whether we will ever reach the point where the tax load, etc.,
may compel retailers to own little if anything in the way of plant remains
to be seen. But there is little doubt that the leasing concept is destined for
still broader applications in retailing; we understand that even bookkeep-
ing and billing equipment is leased by some retailers. Check into store-
fixture leasing—it may simplify your expansion problems and also simplify
problems stemming from new credit services offered to customers.
Cut Employee Turnover by Starting Them off Right
Recent studies have clearly indicated that among the many reasons for
high turnover among retail employees (including low pay) is the failure
to start the employee off in the right way. In large manufacturing com-
panies, psychologists, personnel directors, social workers, etc., etc., have
been brought together to evolve remarkably complete programs for
starting the new employee off on the right foot. In few retail organiza-
tions is this done on anything remotely resembling a comprehensive scale.
The first day, the first hours are critical so far as the new employee is
concerned—male or female. And on that first day it isn't the long-term
future that is important; instead, it's giving the newcomer a sense of be-
longing, of coming into a fine "family." It's the greetings they get from the
store manager, from section heads, from other employees that count. An
unhurried tour of the store, maybe lunch the first day at store expense,
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 171
and seeing to it that during the first week friendships are formed—these
are among the procedures that will help to cut down employee turnover.
job to get rid of a line, once it's been put into a store, as every retailer
knows from bitter experience—tough and costly. A merchant who isn't
sufficiently convinced about a line to put his money into it and back of
it will almost invariably do better not to add the line. Some smart retailers
have finally become aware of the high cost of "something for nothing"—
when that "something" is an addition to inventory.
Show How It's Made—in the Window
Straight merchandise displays in windows are attracting less and less
attention—the shopper is doing less window shopping. Consequently, win-
dow displays (if they are to pull results that will justify the mounting
costs of window display) must pack more drama, more excitement, more
action. In this connection, windows that show how a product is made
have, over the years, regularly proved their ability to stop traffic, hold
traffic, sell traffic. Recently, a food super staged a unique cooking demon-
stration in its windows, a specialty chain staged a two-day demonstration
showing how suede coats are made, another store used its windows suc-
cessfully to show how rayon carpetings are made. Over the years, win-
dows have been used to show how perfumes are made, how certain furni-
ture items are made, etc. And if the idea really is appealing, why
not put a few ringtail monkeys in the window? An appliance store did
just that, and, believe it or not, those cavorting monkeys increased store
traffic and sales!
Improving Employee Meetings
Meetings of store employees will be improved if: (1) Meetings are held
outside regular store hours and overtime rates are paid. (2) Employees
get plenty of notice so they don't have to cancel personal appointments,
etc. (3) Meetings last no longer than 15 minutes—30 minutes should be
tops. (4) Coffee and doughnuts are served at morning meetings. (5) Meet-
ings are planned well in advance. Have a specific program—stick to it.
(6) Don't try to give them too much or you'll give them indigestion. (7)
Don't rake anybody over the coals at these meetings; this is not the time
or place. (8) Try to get them to participate; this is most important. (9)
Don't ask for the impossible; and don't be too inspirational. (10) Always
remember that a bit of humor will go a long way.
New Trends in Sales Units
In many merchandise categories, new sales units are currently being
tested. The multiunit carton, in particular, is being experimented with
widely. In the food store, the multiunit carton is being tested for canned
foods (including cranberry sauce, tomato juice, and dog food), for bottled
174 1010 TESTED IDEAS THAT MOVE MERCHANDISE
cleansers as well as packaged cleansers—and the soft drink and beer bot-
tlers are constantly developing new multiunit packs including the new
larger-size bottles. In the drugstore, multiunit cartons of baby and
dietetic foods are being tested—why not multiunit tests on dentifrices,
toothbrushes, and scores of other items? The hardware store is also moving
from "banding" of multiunits to cartons of multiunits. There is, actually, a
broad trend developing involving new concepts in sales units—with par-
ticular emphasis on multiple units, which, of course, mean larger average
sales. Auto shopping makes this possible—plus larger homes and families.
Action, Action, Action
There are fewer action displays in all types of stores than for years.
Why? One reason—stores have become too sedate, too uniform. Retailing
needs the interrupting note; action displays can provide it. A second rea-
son for the trend away from action displays—mechanical trouble. But
today these troubles are fewer than ever before. A hard-goods store re-
ports excellent results from a carousel showing small appliances; a food
store has used the same device for special foods. Many suppliers offer ex-
cellent action displays; some of these displays use merely the heat from a
lighted bulb to provide action. Try action displays—in windows, inside the
store. Action displays can give sales action!
Gift Buying by Children
Youngsters do an astounding total of gift buying—they buy gifts for
their parents, for grandparents, for other relatives; and they buy gifts for
other youngsters. Yet how many department, drug, or food stores—other
types of stores, too—have established a "Mom and Dad Gift Shop" where
youngsters may conveniently buy gifts for their parents? And how many
stores have extended this section to the stimulation of other gift purchases
by children? One department store recently assembled in such a section
these items: toiletries, neckties, jewelry, trinkets, housewares, gloves, no-
tions, billfolds, playing cards, etc., priced from 35 cents to $5. The section
was located on the floor selling youngsters' apparel. It did extraordinarily
well, especially during the Christmas season, and also for Mother's Day
and Father's Day. It is now merchandised on a smaller scale year round.
Our Mobile Population
No less than 21 per cent of our total population—some 40 million peo-
ple—change their residence each year. Of that total, about 28 million will
move within the same county; 7 million will move to a different county
within the same state, 5 million will move to a different state. Perhaps
90 per cent and more will make new retail contacts when they move. Thus
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 175
some millions of families will be picking new retailers this coming year
for this reason alone. While several services are available to retailers to
welcome these newcomers, it seems clear that too little is done to capture
their business—and too much of what is done is done in a humdrum way.
Another point: at least another 20 per cent of our population will change
one or more retail contacts for one reason or another. Thus, at least a 40
per cent turnover in customers can be expected by many retailers each
year. Figures such as these should make more merchants more fully aware
of their basic problem of attracting new customers on a substantial scale.
Customers More Willing to Pay for Services
Discount houses are adding services—but charging for them. Depart-
ment stores are charging for more and more services formerly offered at
no fee. Various types of chain stores are offering a few services at a charge.
All this means (1) that the customer is being conditioned to expect
service even in low-margin outlets and (2) that the customer is being
conditioned to expect to pay for services. As a matter of fact, the customer
is also being conditioned to expect to pay extra for extra features in mer-
chandise—the auto industry charges for scores of extras; in new homes
today, there will be a difference of as much as 25 per cent in the "basic"
price of a home and the "complete" price. All this suggests that many
merchandisers would do well to reevaluate their policies involving
charges for services to determine whether certain "free" services can now
be charged for. The public may be more willing to accept service charges
than some merchandisers believe to be the case.
Simplify Those Sales Cheeks
It's astounding to note the time required in so many stores for sales-
people to fill out sales checks. During peak hours, archaic forms of sales
checks cause a large loss of profitable business—customers just become
discouraged and walk out. One store reports a 50 per cent time savings
on transactions and more sales per clerk as a direct result of a new
simplified sales check. This new sales check involves a minimum of hand-
written information (here is where many forms of sales checks are still
in the horse-and-buggy stage) and carbon handling and distribution of
carbon copies are eliminated. In this instance, the new sales check is tied
up with new cash register equipment. However, the sales check itself can
be greatly simplified in most stores—give it some thought
Do Shoppers Insist on "Feel"?
Many merchandisers are still convinced that, for certain merchandise
categories, the shopper insists on "feeling" the item. Actually, shoppers
176 1010 TESTED IDEAS THAT MOVE MERCHANDISE
are tending away from "feel"; among other reasons, they can hardly de-
termine anything these days by "feel"—merchandise construction is too
complicated. Indeed, expert store buyers cannot tell too much anymore
by feel. For several years, some merchants fought against packaged
hosiery—as a typical example—because they were sure a woman would
not buy hosiery unless she could exert her traditional privilege of putting
her fist inside the hose. Yet, a survey showed that actually SO per cent of
the women interviewed preferred prepackaged hosiery. Displays that per-
mit "feel" may still serve a function—although this, too, is declining.
But, by and large, the day of "feel" in merchandise is over—from produce
to soft goods.
Round-the-clock Promotions
Round-the-clock promotions have been amazingly successful in the
stimulation of volume for major appliances. These promotions have kept
stores open 24 hours a day for three days and more. Just why the idea
appeals to the shopper is a bit of a mystery; but its appeal can't be dis-
puted. Why not adapt the same idea to other fields—to soft goods, home
furnishings, etc.? Give it a thought. Bear in mind that the warehouse sale,
which started with major appliances, has now been successfully employed
for furniture and home furnishings and even for soft goods. Of course, some
food stores have remained open day and night for years; ditto for some
drugstores. But these are traditional hours for these particular stores—
what we are talking about is the generation of a huge excitement over
an unusual store-hour schedule for a limited period.
credit may make this idea less widely useful, there are still thousands of
credit plans in operation where a gift and a thank-you letter at the proper
time would accomplish a great deal.
Apples—the Perpetual Promotion
Years ago, the Dennison Manufacturing Company—which is located in
fine apple country in Framingham, Mass.—discovered that offering free
apples at trade shows created more traffic at its booth and more conver-
sation than any device used by other exhibitors. A large appliance chain
staged a huge apple give-away promotion—and it moved appliances in
enormous volume. There is something homely and appealing about munch-
ing an apple—someday the motivational research boys will be able to tell
us why. In the meanwhile, accept it as factual that a give-away apple,
munched on the store premises, may result in some apple pits on your
floor—but it may also result in added sales by creating that friendly
feeling which magically opens pocketbooks.
Sport Tickets as a Promotion
All types of stores are turning to the idea of offering free, or reduced-
price, tickets to sport events. For example: a 165-store food super
chain distributed a total of 85,000 reserve seat tickets for the Villanova-
Mississippi football game. A junior department store offered a free ticket
to a professional football game with fashion or housewares purchases of
$15. A food store offers a $2.50 sport event ticket on purchases of $10; a
$3.80 ticket on purchases of $15. America is, of course, sports mad. The
sport ticket promotional concept promises to spread—and it makes a most
effective newspaper advertising offer.
Don't Overlook the Oldsters
In almost every trading area, probably 20 out of every 100 residents
are between 45 and 65 years of age. Incredible—but true (except in
some entirely new areas populated almost solely by young people). More-
over, in the years to come, the percentage of oldsters will increase—it will
hit 25 per cent in a few years, 30 to 35 per cent in a few more years. And
bear in mind that older people these days are vastly better customers than
years ago. Social security, pension funds, larger incomes for more people,
sensible savings programs—everything operates to keep older people as
consumers on a giant scale. (And bear in mind that we haven't even men-
tioned the age group over 65—that age group now numbers some 14,000,-
000 people and is growing rapidly.) Plan stocks with these older people in
mind. Frame an occasional newspaper ad for their attention built around
a special promotion. Don't overlook the oldsters; their wants and needs
are young!
178 1010 TESTED IDEAS THAT MOVE MERCHANDISE
Suggestion Selling
Some months ago, a research team was sent into a number of liquor
stores and instructed to say: "I'm giving a party for 12 friends; what
liquor should I have?" Those wide-open-to-buy customers walked out of
most package stores with a single bottle, a fifth! Recently, a large drug
180 1010 TESTED IDEAS THAT MOVE MERCHANDISE
company shopped 3,186 drugstores—the shoppers were given $5 to
purchase any item suggested by the druggist in addition to the item they
inquired about. Those shoppers had a spending power of over $15,000,
but druggists suggested sales of only $2,500! Other studies among de-
partment stores and various types of specialty stores consistently show
these results. Less than 17 per cent of salespeople in all types of retail
stores make a specific suggestion for an extra purchase. "Anything else
today?" doesn't turn the trick. Mounting retail costs can be fought only
by lifting the average sales check—smartly planned suggestion selling,
offering specific items with a specific sales pitchy is a sure-fire way to build
up the average purchase.
Ouf-of-Stock and Understock—Twin Evils
If retailers were short of inventory only on slow movers—that would be
bad enough. But out-of-stock and understock conditions seldom apply to
slow movers; they practically always apply to fast movers, to the real profit
makers. Another point: out-of-stock was poor business when personal floor
selling was tops, but today, under self-service and self-selection conditions,
out-of-stock and even understock mean hugely expensive lost volume. Do
you know your fast movers, your big profit makers? Do you have a system
that guarantees a properly balanced stock of these items!—always? And
do you have another system that keeps the floor stocks of these profit
makers properly balanced during peak selling periods? Remember, stock
in back room or warehouse doesn't do a bit of good when floor inventory is
low and store aisles are crowded.
Make your Signs "Sell-vertise"
Too many store signs simply identify—they don't sell. A sign that merely
names the merchandise and gives the price is little more than a "directory
listing." It has little genuine sell. But when a sign gives a talking point, an
important talking point, then that sign both advertises and sells—it "sell-
vertises! It may cost more per sign to put salesmanship into signs, to make
them talk, but the increased cost will be more than absorbed by the addi-
tional volume. Remember that in a self-service, self-selection age, signs
can do as much of a selling job as the open display of merchandise. A
sign we liked, as displayed in some drugstores, food stores, chain stores,
and department stores, featured a bubble bath. The sell-vertising copy
read: "Flower sweet—60 luxurious baths—Bubble Bath—3 39-cent boxes
for only 98 cents." That sign had salesmanship.
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 181
open at night, late afternoon traffic holds up better than on early closing
days.
Keep "Up Front" Busy in See-through Stores
Old-time merchants loved to jam their store entrances—they put special
tables there, heaped with "specials." Their theory: customers like to shop
in a busy store, just as they prefer to eat in a busy restaurant. (Have you
ever passed up a restaurant on the highway because only a few cars were
parked there?) More recently, other merchants have developed the policy
of putting particularly attractive merchandise to the rear of the store—
"makes the shopper walk right through the store." But the see-through
store would seem to clinch the case for "more business" up front. When
sidewalk traffic can look right into the store, activity up front is highly de-
sirable.
Incentives for Multiple Sales
The trend toward merchandising multiple units is remarkably strong.
It is best evidenced in the tote-home pack of soft drinks, beer, etc., but is
now winding up with canned goods and a host of other items. This, in turn,
is encouraging various stores to develop incentives for salespeople to push
multiple units. One merchant gives 20 cents to each salesperson who sells
a box of hosiery—three to a box. Store shoppers are ordered to hand in
reports on salespeople who do a good job of selling multiple units, and
these salespeople are suitably rewarded. Training programs are being de-
veloped to show salespeople how to write up more multiple sales. A larger
average sale is the royal road to a better retail net profit and the multiple
sales unit is the best approach to that royal road.
A "Thank You" to the Big Customer
A customer buys a big order in furniture. Or in major appliances. Or in
rugs. How seldom that customer gets a "thank you" letter. One retailer
reports highly successful use of a thank-you letter that goes out about a
month after the big-ticket sale has been delivered. The letter expresses
the hope that the customer is happy, and a stamped return envelope is
used for the customer's convenience in replying. Over 85 per cent of the
customers do reply—the majority with enthusiasm. The few complaints
that come in are welcome—the customer who has a complaint and doesn't
voice it may never be a customer again.
Working with Clubs
Women's clubs, church clubs—all of the multitude of organizations to
which women belong—offer retailing constant opportunities for mutually
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 183
when you fuss about small expenses, personnel becomes more aware of
large expenses.
Convertibility—the Big Trend in Fixtures
Maximum quick-change flexibility is the great trend in floor fixtures.
Convertibility is the key to present thinking—indeed, some tricks of the
theater are being studied to learn more about "quick change." Merchan-
dising has been tailored too much to the floor fixture—now the fixture is
being so designed that it becomes the servant, not the master, of mer-
chandising. A face lifting, a new appearance can now be given overnight
to a small department or to a whole floor: no shutdown, no loss of selling
area, no loss of time or volume. Show-window flexibility is now being ap-
plied to store interiors—a splendid trend.
Cutting the Return Percentage
Every check ever made proves that at least 50 per cent of returns are
directly due to store errors and misunderstandings. For example, studies
show that some salespeople consistently have high returns; others have
much lower. Since the customers of both will average the same, the source
of the trouble is the salesperson. One store arranges for low-return sales-
people to work closely with high-return salespeople—the latter thus learn
by example. Incidentally, every store and department has a certain num-
ber of "return-happy" customers. They usually total about 10 per cent
of the customers—and account for as much as 30 per cent of the returns.
They are always loss-producers. Weed them out—freeze them out
Misleading Customer Guidance
A large specialty store has a Customers' Council—it meets once a sea-
son, and it makes good use of the privilege of free criticism. A large food
chain gives its customers a "report card" to fill out which enables shoppers
to record what they think of the store's service, merchandise, variety,
cleanliness, etc. Other stores have Customer Suggestion Boxes. The cus-
tomer may be in the position to offer constructive guidance to the retailer
—but, unfortunately, most of the systems used to ferret information out
of shoppers tends to supply misinformation! The voice of the crank, the
voice of the "lunatic fringe" of shoppers, tends to dominate. Also, when
criticisms are improperly encouraged, the shopper tends to "manufacture"
them. Give your customers a voice in your operation—but do it with mod-
ern scientific research controls. A Customer Suggestion Box, for example,
can be filled with totally misleading reactions, entirely untypical of how
the majority of a store's shoppers feel. A Customers' Council may have as
members women who may represent society or top career women, but
not the mass shopper—and the uncontrolled reactions of its members may
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 191
day there will be special departments, special lines, for the second-home
market. In the meanwhile, merchants in areas benefiting from the second-
home trend would be wise to begin planning inventory and merchandising
promotion for the second-home market. (And that includes everything that
goes into or is consumed in a home.) Rentals appeal to this market.
Faulty Price Marking—No. I Profit Destroyer
In many, and probably most, retail outlets, faulty price marking is cur-
rently at an all-time high. In many stores it clearly causes higher losses
than shopper pilferage—yet for every ten merchants who worry about
shopper pilferage (some of which actually is employee pilferage, some
of which is poor inventory keeping, etc.) only one worries about errors
in price marking. Of course, some faulty price marking results in over-
charges—but the merchant seldom benefits from the overcharges for
two reasons: (1) customers know prices pretty well, (2) the customer
who may be "taken" eventually finds out, and there is a day of reckoning.
But the customer who is undercharged may conclude that she is being
offered a bargain. Checking a store periodically for price-marking errors
may cost money—but in many stores it can provide returns of up to $5
for every dollar spent.
Personalize Those Signs
Personalized store signs for display on counters may soon achieve quite
a vogue. What are personalized store signs? Well—they include signs with
pictures and a few facts about the store manager, the department man-
ager, the salespeople. Or the signs are done in a homey style—"hi neigh-
bor" and that sort of thing. This is an interesting trend. Store signs have
tended to be not only uninformative but also unimaginative; they have
been dry, stilted, dull. Why not humanize them? Why not add a touch
of humor, of informality? And why not use them to prod salespeople—a
sign with a few comments about a salesperson may lift that salesclerk's
desire to offer improved service.
Getting Motion Displays at Low Cost
Motion displays attract attention; no doubt about it. They are shopper-
stoppers. And, if the motion puts over a selling feature of an item, then
it will not only stop the shopper but help sell the shopper. But motion,
when it involves a motor, can be costly. Can motion be obtained at low
cost? Yes—with such a simple device as an electric fan! Example: alumi-
num roof ventilators were set spinning in a window by electric fans.
Attached to each ventilator section was a slipper. The motion put over
198 1010 TESTED IDEAS THAT MOVE MERCHANDISE
the message of cool summer footwear. Give some thought to the potentials
of simple motion through an electric fan—in the window and in the
store interior. It has innumerable applications, all of them inexpensive.
Do You Really Know Your Customers?
Most retailers "type" their customers. Their customers "insist" on such-
and-so, will "never" accept this-or-that. Etc. And etc. In some instances,
this could indeed be the case. But more often than otherwise, the cus-
tomers of most stores are simply a typical cross section of American
families. And that means they are not peas in a pod. Few retailers (great
specialty stores would be an exception) have a "typical" customer; more
often, retailers will have as many "untypical" customers as shoppers of
the mold mentally fashioned by the merchant. Moreover, always bear in
mind that there is no such thing as a "typical" woman or a "typical" man;
they just don't exist. The moral? The moral simply is that maybe some
merchants are limiting their efforts by lumping all of their customers into
a single mold—and then merchandising to that mythical character. That
is the road to slow turnover, to unbalanced inventories, to stagnation.
Display Props as Tests for New Items
A number of retailers have found that the use of a novelty as a display
prop will often result in requests by shoppers for the privilege of buying
the item. For example, a group of fascinating pixies were displayed at a
hosiery counter; the pixies were there solely as display props. But they
fascinated women, and the department head, who first promised to give
the pixies to good customers when the display was taken down, later
decided to put some pixies in as regular inventory. They have been mov-
ing well ever since. This, in turn, has led some merchants to conclude
that one way of testing a new item, especially if it is a novelty, is to use
it first as a display prop. If customers show an interest in that display
prop as a desired item, then the number will usually turn out to have a
strong sales appeal.
Lounge Areas and Facilities for the Family
More men are shopping every year. Yet rest room facilities for men are
almost nonexistent in some stores, and are third rate in other stores. In
some department stores, for example, a man can burst a kidney trying to
find the men's room! In food supers, men shoppers usually must use the
employees' rest room. But this is only half the problem. Most retailers
today are trying to encourage family shopping. But how many retailers
today have rest room facilities for the family—not to mention family
lounge areas? Answer—too few.
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 199
many shoppers buy only half as much on each shopping trip as they had
intended. Slow down traffic (within reason, of course) and add to the
average sale. How to slow down traffic? Well: (1) deliberately arrange
for several partial "road blocks," (2) put some merchandise in bins, dump
baskets, etc., on the floor—or close to the floor, (3) plan for interrupting
notes in your aisle displays; it is excessive regularity that speeds traffic
right past a sale, (4) put better selling copy on your signs; talking signs
can talk shoppers into stopping and then into buying, (5) break up those
mile-long bowling alley aisles, (6) use a variety of fixtures: different
styles, heights, shapes, etc.—it's so easy to keep right on walking past
several hundred linear feet of completely uniform displays.
Your Long-standing Customers
A retailer who recently celebrated his 25th anniversary invited his
regular customers who had been buying from him for 10 years or more
to help him celebrate. He had a special "courtesy day" for them—an-
nounced it in appropriate direct mail. There is no customer like a long-
standing customer. If you have records of your year-after-year customers,
why not stage an occasional promotion for them? If nothing else, they'll
pitch in to help you celebrate your own anniversary.
Three Living Rooms
An increasing number of homes now have three living rooms—a rum-
pus room, a TV room, and the formal "parlor." What is more, when Wash-
ington invited a group of women to submit their ideas on what they'd
like in a home—the three-living-room concept took top position. Indeed,
with outdoor furniture becoming so popular, there is really a fourth living
room: the patio, or porch, or garden. The more living rooms, the more
furniture and home furnishings. The more living rooms, the more home
entertaining, which means more food, drink, etc. The more living rooms,
the more apparel—informal for the rumpus and TV rooms, more formal
for the "parlor"; and, by the way, it is indeed a fact that the old-fashioned
parlor is staging a comeback, even to its being out-of-bounds to the young
fry.
Lighting Stores at Night
Where foot or auto traffic passing a store at night justifies the cost,
special nocturnal lighting techniques (over and above regular lighting)
when the store is closed are being found profitable. Too many stores use
lights during closing hours merely for "protection." But lighting can sell
when the store is closed—provided, of course, there is passing traffic on
foot or on wheels. It can sell the store name and basic concept of the
store; it can promote tomorrow's specials and draw attention to seasonal
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 201
items. One retailer designs displays specifically for the car traffic—lighted
displays that can be taken in even though die traffic moves along at a
good clip. Check off-hour traffic. If it warrants promoting to that traffic,
then check night lighting and displays.
More "Live" Demonstrations
One of our largest appliance outlets makes it an unbreakable rule to
have every appliance that is on its floor hooked up, ready to go. No
matter what machine a customer may pause in front of—a salesman can
give a demonstration, pronto. Some large department stores are stepping
up demonstrations—from demonstrations on small housewares to table-
setting clinics. One department store reported recently that it had several
hundred demonstrations of one kind or another going on at all times.
Chains too are showing an increasing interest in live demonstrations.
The demonstration is one of the oldest of selling devices, but it is just
as effective today as it was hundreds of years back. Today more manu-
facturers are making live demonstrators available to retailers—and alert
retailers are gladly accepting this form of cooperation.
You Can't Stop the Clock
Every so often, a new form of retailing appears—or, an established
type of retailing goes into new merchandise categories. Anguished howls
are raised by traditional merchants. But, in time, everybody becomes
reconciled to the situation. Years ago, established retailers fought the
mail-order houses, then the chains, then the house-to-house sellers. Years
ago, established retailers fought the drugstore when it took on nondrug
lines—they fought the variety store when it took on cosmetics—they
fought the food store when it took on nonfoods, etc., etc. But neither the
legal approach nor the intimidation approach has ever done more than
delay the inevitable. Only a few years ago, retailing was up in arms over
the discount house—today retailing is learning how to compete with the
discounter. Competition is best met by competitive merchandising—not
by legal entanglements nor by threats.
Getting Customers to Visit More Departments
The larger stores become and the more varied the number of cate-
gories stocked—the more difficult it becomes to induce the shopper to
visit more, and still more departments. Here are some suggestions to
achieve that goal: (1) Install a really dramatic store directory, soup it
up! (2) Install other directories at many points throughout the store;
this is seldom done. (3) Use humorous and attention-getting section
markers. (4) Put in phones so shoppers may inquire concerning location
of wanted section. (5) Drill your salespeople so they won't send shop-
202 1010 TESTED IDEAS THAT MOVE MERCHANDISE
pers off on wild-goose chases—and check them with your own shoppers.
(6) Put up miniature directories of near-by sections at many spots, espe-
cially covering related merchandise. (7) Most important, have store
executives shop the store periodically to determine their problems in
locating merchandise—what they experience difficulty in locating, the
shopper simply will never find!
Keeping Youngsters Happy while Parents Shop
A Kiddyville or Kiddy Corner or Kiddie Korral, designed to keep the
youngsters content while Mom or Pop, or both, shop can have these
benefits: (1) If coin-operated machines are installed, the revenue may
pay for the space used. (2) Parents shop longer and buy more when
not distracted by the children. (3) Housekeeping costs in the store are
cut—one youngster on the loose can play havoc! (4) The display of toys,
etc., nearby will usually encourage the parent to make a purchase either
when leaving the child to shop or when returning to pick up the child.
(5) Mothers who otherwise might not want to shop at all (the same ap-
plies to Pop) are more apt to come into the store when they know the
children will not be a headache. (6) Adults with no children will be less
annoyed when youngsters aren't under foot.
Public Service Windows
Since window shopping is on a decline—and since retailing has many
community obligations—why not make it a regular practice to turn at
least one window over to public service uses? This would include charita-
ble, welfare, and civic projects. These windows will win heaps of good
will, will attract unusual attention, will create considerable word-of-mouth
conversation, and will make a deep impression, particularly on those
more influential people who are the leaders in their communities and who
mold local opinion.
Employee Incentives Gain in Retailing
In one field, the chains report that 65 per cent had profit-sharing plans
for employees. Some 45 per cent had stock-purchase plans (although
usually for executives rather than rank-and-file employees). Even the
percentage of these chains running employee contests had jumped, over
a six-year interval, by almost 50 per cent. In another field, the chains re-
ported large increases in the number offering employees noncontributory
group life insurance, hospitalization and accident-sickness insurance, re-
tirement plans, etc. Where part-time employees of teen age are employed,
plans are being developed under which a stipulated number of these
teen-age employees are offered college scholarships. (Incidentally, these
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 203
Promoting Twins
Something like one out of every 86 births is a twin. This means that
in the trading area of every retailer there are many twins, and that twins
are being born regularly in every retailer's area. Why not promote to the
twin idea? Give something free to every set of twins born in the trading
area. Offer to outfit twins for the price of one for a limited period. Ar-
range special free photos of twins. Put in a stroller for twins so the mother
may shop in comfort. There's something irresistible to everybody about
twins—and this automatically makes twins a splendid merchandising-
promotional opportunity.
14-week period, with a total of $70,000 done on both price lines, the
higher price line outsold the cheaper by three to one!
Snob Appeal—the Answer to Footballed Lines
There is no one overall solution to the serious problem of footballed
lines. But a number of retailers report that the shopper's mind can sOtaie-
times be taken off the price tag by using the snob appeal. For example,
in housewares this consists in putting in so-called gourmet housewares,
some of which are imported numbers. These items have a strong social-
status or snob appeal (remember when it was called "keeping up with
the Jones's"?). More manufacturers are bringing out special lines priced
somewhat above the mass market with this same objective in mind. Ob-
viously, a store can go only so far with this plan—but, within reason,
snob appeal items can function ably as a buffer in a price-footballing era.
Bridal Promotions Cover Wider Merchandise Range
Bridal promotions, which were once limited to a special bridal depart-
ment, are now becoming multi-departmental promotions in larger stores.
For example, the hosiery department is finding that not only can it bene-
fit on hosiery from bridal promotions, but also that it can step up vol-
ume in that same department on boudoir slippers, frilly garters, etc. Of
course in hosiery, particular emphasis is put on such novelties as hand-
painted stockings, a good luck penny tied with blue ribbon to a pair of
sheer hosiery, etc. But the point we are making here is that bridal pro-
motions now can be staged not only for a wide range of departments in
a multi-department store, but also in many sections of specialty stores
which did not traditionally consider themselves to be in position to tap
the bridal market. Incidentally, in connection with the bridal market,
while June is the traditional bridal promotion month, actually the num-
ber of weddings doesn't vary greatly month by month; every month lends
itself to bridal events, provided there is smart merchandise, smartly pro-
moted.
Try Above-the-line Price Lining
Price lining usually follows two traditional grooves: (1) It tends to
remain at the same pricing point, year after year. (2) These pricing points
tend to be below an even figure—$1.95, for example, rather than $2.05.
But now a school of retail thought is growing which insists, first, that
traditional price lining really is not sacred, and, second, that the new
pricing point can indeed be fixed above the even figure and thus obtain
a larger margin. As a matter of fact, a large discount chain—where pric-
ing is obviously a matter of vital importance—recently tested a $4 figure
instead of $3.99 and $5 instead of $4.99 and found that sales were not
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 207
affected one iota. But another discount chain reports that it has taken
some items formerly marked at $1.74 and marked them up to $1.77; items
formerly marked at $1.19 are now marked at $1.21. The amazing thing
is that at the higher figures, sales have definitely been stronger! So—ex-
periment with price lines, and, when you do, try going above the even-
figure dividing line. Here is where better profit may lie.
Don't Put Customers into Strait Jackets
Some retail stores are putting in one-way aisles. The same customers
who are driven slightly mad by one-way streets are now to be driven a
bit more mad by one-way store aisles. Other stores have porters work-
ing during busy hours—one such store puts up a sign reading: "Porter
at Work—please allow ten minutes before entering this aisle. If you de-
sire merchandise, kindly ask porter to assist you." (1) Why block off an
aisle for even ten minutes—is this really necessary during regular floor
hours, or economical? (2) Since when can a porter "assist" in getting
merchandise for the shopper? On the one hand, retailers are putting in
fixtures that will help to sell more through the "persuasion of conven-
ience." Simultaneously, they think in terms of one-way aisles, etc., which
add a bit of annoyance and even torture to shopping.
FREE for the Rest of your Life
One contest prize which fits almost any merchandise category and still
enjoys an amazing degree of acceptance is one which offers the customer
a free lifetime supply of the item. Best of all from the retailer's point of
view, the cost tends to be surprisingly small in relation to the attention
it attracts. The offer has been successfully applied by retailers to such
diverse products as: shoes, washing machines, soap, sweaters, milk, ho-
siery, sun-tan lotion, carpeting, baby products, and many, many more.
There seems to be almost no limit to the number of logical tie-ups which
can be arranged.
Wasted Space at the Store Entrance
Old-time merchants looked upon the space at store entrances as the
most valuable space in the store. This was where they featured their
hottest specials; this was where they changed their offerings frequently.
And here is where they sold more per square foot than in any other part
of the store. In more recent years, the trend has been toward the "un-
cluttered" appearance at the store entrance—open it up, don't make the
shopper's first impression as she walks in one of a cluttered store; these
have represented the more modern merchandising concepts. And with
check-out gates near the entrance in more and more stores, these con-
cepts gained ground. But now a reverse trend is setting in—space at the
208 1010 TESTED IDEAS THAT MOVE MERCHANDISE
store entrance is once again being used for volume, to create the impres-
sion of a busy store, etc. Those first couple of feet into the store (which
are also the last couple of feet when leaving the store) can boost volume
—properly merchandised. Perhaps a bit less of the museum look at this
point and a bit more of merchandising excitement might be very much
in order.
Dig Up Those "Oldest 1 Models
A recent promotion brought in over 200 antique irons. It's amazing
how many homes "never throw anything away." Promotions for the old-
est electric refrigerator, oldest vacuum cleaner—and, on the soft-goods
side, the oldest handmade bedspread—have proved highly stimulating.
Also, the display of these old-timers usually brings in good traffic.
Impressing Suggestive Selling on Salespeople
For years—and years—many retailers have been trying to train and
enthuse their salespeople to do a better job of suggestive selling; a bet-
ter job of building up the average ticket. Here's an idea that worked
wonders in that connection: (1) A retailer sent out each of his sales-
people, in turn, to shop competing outlets. (2) In each case, they were
given $5.00 and instructions to buy a specific item in the competing store.
(3) They were also told, having bought that specific item, to buy any-
thing eke suggested by the salesperson that could be financed by the
approximately $4.00 remaining after the initial purchase. (4) One sales-
person was sent out each week. (5) That salesperson then reported her
experiences at a store meeting each week. (6) In almost every instance,
the salespeople reported, each in turn, that they had not been asked
to buy a solitary item other than the one which they had come into the
store to buy! Clearly, there was no need to lecture those salespeople on
the importance of suggestive selling. They sold themselves! And, in the
two instances where the salespeople returned with the $5.00 fully spent,
as a result of suggestive selling, their experiences pointed up, as a re-
freshing contrast, what could be done to step up volume through keen
suggestions.
Odd-ball Pricing
Odd prices have, of course, been commonplace in retailing for years.
Now the odd price is being improved upon—it has become the odd-ball
price. What is an odd-ball price? Well, a fast-growing chain, now num-
bering over 100 stores, prices in 3s—starting with 3 cents. The 88-cent
price promotion, which has been remarkably successful, is pretty close
to being odd-ball pricing especially when applied to some items not usu-
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 209
ally considered to be near that price range. A variety chain manager re-
ports that notions offered at 4 cents pulled loads of traffic. A promotion
featuring stationery at 9 cents is another instance of odd-ball pricing.
Offering yard goods at so much per inch is odd-ball pricing, so is offering
floor coverings at so much per square foot. Smart pricing can work magic
—and odd-ball pricing can be smart pricing.
impulse-appeal to park and shop. But now there are so many pylons,
that the pylon itself must be given more drama. Size will help; pylons
of gigantic Bamum-type size are now coming into use. Extraordinary
colors, with changing colored lights, are a more modern refinement. And
pylons that actually move (a drugstore used a giant mortar and pestle
as its pylon and that pestle actually moved up and down in the mortar!)
are still more effective.
After-hour Events
Sell when the store is officially closed? Why not. How? Like this: a
specialty store contacts the personnel director of local corporations. With
the latter's aid, employees of the corporations are given tickets to attend
a dinner and fashion show. Models for the fashion show are employees
of the cooperating corporation. Ten door prizes, with a $500 retail value
are given. The entire event is staged in the store. A skeleton crew is on
tap to make sales if desired. But the main object is to make friends, create
favorable conversation.
What Percentage of Volume Is in Sale Merchandise?
It is an interesting fact that few merchants have ever established a
volume figure for sale merchandise beyond which it would not be wise
to go. Indeed, not many merchants know what per cent of their dollar
or unit volume is in sale merchandise. A large manufacturer of founda-
tion garments found after study that in this merchandise classification,
about 10 per cent of the year's volume can safely be done in sale mer-
chandise. Says this manufacturer to retailers: "If sale goods exceed 10
per cent, you are headed for trouble." That 10 per cent figure obviously
does not apply store-wide in all types of stores. But it would surely profit
most merchants to compile figures that would disclose the per cent of
total volume done on sale merchandise—and then to do some astute
thinking about these figures. Incidentally, this same manufacturer also
found, after studying detailed figures in many stores, that on this cate-
gory, holding more than two sales a year clearly resulted in taking away
business instead of adding to it. Which goes to prove all over again that
too much of a good thing can be just too much!
Try a Thoughtful Giveaway
Decades ago, the customer buying a man's suit found a few extra but-
tons in the pocket, in a boy's suit an extra swatch of material "for a patch."
Recently, a hard-surface floor covering merchant reported that leaving
a free pint of wax with a customer, after laying down a floor covering,
yielded an amazing amount of good will. He said that customers talked
about it to their friends, that it definitely brought in business. A smart,
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 215
pole is a store identity, not a store image. There, in a nutshell, is the dif-
ference between store identity and store image. Why is it important to
note the difference? Simply because so many retailers establish a symbol
that identifies a store—and think they have simultaneously acquired a
store image. A big variety chain, for example, recently adopted a very
handsome symbol to be featured in all its stores, in its advertising, etc.
But this isn't a store image—that variety chain really doesn't have an
image because its stores look almost exactly similar to all other variety
chain stores! A store image must be based on a store's personality—and
a store cannot even begin to create a store image until it has created a
policy and program that achieve a distinctive personality in tune with
its customers' preferences.
Single-brand Emphasis Develops Store Personality
In most merchandise categories, a single brand can be counted on to
give a lion's share of the total volume done in the category. Many re-
tailers have concluded that it will pay to earmark this brand for special
emphasis on a continuing basis, even if this policy works to the disad-
vantage of competing brands. They reason: (1) The routine display of
multiple-brand inventories is visually monotonous. It cannot be distin-
guished by the shopper from the similar display of any other retailer
willing to carry the same inventory. (2) Periodic rotation of brand em-
phasis dissipates the promotional dollar; carry-over effect from advertis-
ing is watered down. (3) A policy of brand scatteration leaves the shop-
per with no lasting impression of store personality; the store does not stand
for specific items or brands. (4) The selection of a single top brand for
incessant hard promotion may help avoid the look-alike appearance of
many stores.
A New Form of Shopper Service
Usually they are referred to as "Courtesy Booths," but name variations
include: service desks, accommodation centers, and convenience booths.
They all, regardless of their name, have similar functions. Specifically,
they make available to the shopper a range of services not normally avail-
able in the store, or which were formerly scattered in many locations
about the store. They attempt to reduce the time shoppers spend on
"chores" so that more time may be spent on shopping. And obviously,
every shopping minute saved is worth its weight in dollars. One of the
forerunners of today's "Courtesy Booth" was the desk at which customers
could pay their utility bills. Most still arrange for the payment of these
bills, but today's wide-ranging services also include: check cashing, open-
ing charge accounts, postage machines and a letter drop, stamp or pre-
mium redemptions, money orders, merchandise information, baby-sitting
218 1010 TESTED IDEAS THAT MOVE MERCHANDISE
registers, menu planning and party ideas, etc. When in doubt, shoppers
are turning to the Courtesy Booth, and with this kind of impetus, the
Courtesy Booth will become immeasurably more important as time goes
on.
Needed: a Bigger Plunge on New Products
Each year new products form an ever larger part of total retail in al-
most every field, and the trend shows every indication of accelerating
still further. Despite this, the last decade has shown but little change in
retail policy as regards the purchasing or the promotion of new products.
New items are still, almost without exception, under-bought and under-
promoted. They almost never get the same careful attention that old
staples do. Out-of-stocks and understocks of new products are at an ap-
palling level. The situation is excused on the grounds that "risks" are
reduced. A bigger plunge on new products—the taking of longer risks—
however, may be warranted. Here's why: (1) new products draw traffic
out of all proportion to the inventory investment, (2) new products pro-
vide a store with a major source of merchandise "news," (3) new prod-
ucts add immeasurably to the store's image for smartness, alertness, and
awareness of shopper needs. Every retail operation accepts the burden
of some slow movers, some low-profit (or even loss) items, and some
"headache" items on the theory that these items make a contribution to
the entire store or department that can't be measured simply in terms
of turnover, net profit, or convenience. New items, on the other hand, are
expected to pay their way almost from the beginning, although the
"fringe benefits" may far exceed any possible dollar profit. Perhaps it's
time to reexamine new-product proposals in terms of the contribution
they may make to the entire store operation, and perhaps this will justify
a bigger plunge on new products.
Deliver to the Customer's Car
Variations of the pick-up station, which make it possible for customers
to have purchases delivered directly to their car, are destined for huge
expansion. Many supermarkets have found such a system an indispensa-
ble part of their business. Now retailers in other fields are arriving at the
conclusion that a similar system would prove advantageous. Behind this
conclusion are certain facts. First, delivery costs are rising and efforts to
pass these costs on to the shopper have been indifferently successful.
Second, where shoppers do carry their purchases, physical discomfort
quickly forces a halt to further shopping. The compromise alternative
is to eliminate the necessity for shoppers to carry their purchases, but
still provide their own take-home service. Within a few minutes of the
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 219
time a purchase is completed, the package is delivered to a parking lot
pick-up station. All the shopper carries is a small numbered ticket. When
all her shopping is completed, the shopper returns to her car, drives up
to the pick-up station, hands in her tickets, and has her purchases placed
in her car by an attendant.
Club Plans Galore
Clubs of almost infinite variety—stocking clubs, teen clubs, coffee
clubs, menu clubs, appliance clubs, etc., and etc., are emerging as a
highly potent merchandising weapon. Generally they are based on items,
or in departments where repeat sales may logically be expected. In re-
turn for repeat business, they confer special privileges on the shopper.
Sometimes these are in the form of free goods, but more often, they in-
volve shopping conveniences such as preintroduction shows, special credit
facilities, special personal attention, first chance at specials, and merchan-
dise news letters. The club plan offers the store an opportunity to com-
bine image building with a substantial return in terms of sales dollars.
"Free Check-up" as a Traffic Pull
In electric housewares, a number of retailers have experienced excel-
lent results with "free check-up" events. For example, one such event
offered a free check-up and oiling service on food mixers—plus the gift
of a $21 hand mixer to the owner of the oldest electric mixer brought
in for servicing. Shoppers were also invited to enjoy a cup of coffee. The
event included a food expert who demonstrated small appliances. One
customer who came to the event bought a $125 power mower! The same
idea has been used for electric shavers, for automatic lighters, for small
power tools. As a matter of fact, variations of the idea have been used
in art needlework events—so the idea is as much at home in soft goods
as hard goods.
Vending Machines outside the Store
It is now generally accepted that the true age of automatic vending
is about here. Tue automatic change-maker, the vending machine that
can accept paper bills, vending machines that are just about impervious
to the climate, the entry of giant corporations into the production and
leasing of automatic vendors, the self-service age, fast shopping, presold
brands—all conspire to underscore the forthcoming rapid development
of the vending machine. There is no reason why this supplementary form
of retailing should become an "exclusive" with giant retailers. Small gas
stations have done well for years with Coca-Cola dispensers, cigarette
dispensers, ice cube dispensers, etc. Now is the time for innumerable
220 1010 TESTED IDEAS THAT MOVE MERCHANDISE
retailer has tended to look dimly at any "outsider" coming into his store.
But this attitude may now be changing. Certainly the "outside" specialist
may play a role in helping many types of merchants to survive in this era
of fierce price competition.
Coordinate, Coordinate, Coordinate
Retailers inventorying bathroom items have found that by coordinat-
ing their inventory and then promoting the concept of coordination, they
have been able to break away from item selling and write a much larger
average ticket. This fundamental principle of using coordinated mer-
chandising to produce multiple sales can be developed much more em-
phatically in many merchandise classifications. It calls for a policy of buy-
ing that will lead to inventories that are better ensembled. Then it calls
for floor displays that are better ensembled. Then it calls for better train-
ing of salespeople in the gentle art of ensembling and how to sell it. Fi-
nally, it calls for creative promotion of coordination. Study the store to
find just one department where coordination has been somewhat neg-
lected. Then put this program to work in that department or section.
From that starting point, the idea can be adapted for use in one section
after another. Example: a "package plan" involving coordinated draperies
and carpeting. Another example: coordinating linoleum for floor and
counter tops.
Fashion Is Touching Everything
Dame Fashion is extending her sway over a mounting diversity of mer-
chandise. Clearly, there are fashions in foods, particularly with respect
to food served during home entertainments—remember how "baked
Alaska" became "the thing"? There are certainly "fashions" in drugs—
vitamins ruled the roost a few years ago and are currently staging a come-
back; the antibiotics are, of course, presently Fashion's drug favorites
(does anybody doubt that in a few years they may be supplanted by new
concepts?). In homes, the "closed-in" home may soon begin to supplant
the "open-to-the-outdoors" home; and as the architecture of homes
changes, so do home furnishings. Dame Fashion is casting her spell
over many former staples in soft goods. And Dame Fashion, through
color, will still further accelerate the dynamic obsolescence of appliances.
Are Everyday Gifts Bigger than Christmas?
Christmas has been the great traditional gift-giving holiday for so many
generations that force of habit leads to the automatic conclusion that
Christmas is far and away the biggest gift-giving event of the year. But
if the everyday gift is classified as an "event"—and it really is precisely
that—then it may be that the everyday gift market is now larger than
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 223
sist that all returns must be accompanied by sales check or gift slip and
must be in original condition. (5) Place a nominal charge if a truck must
make the pick-up for the return. (6) No cash refunds. (7) Display posters
listing return restrictions. (8) Make a list of customers who flagrantly
abuse the return privilege—bear down on them.
Color in the Retail Plant
Years ago, factories found out that color can increase production of
plant and even warehouse employees. Now retailing is making the same
discovery. A food super reports that decorating its meat cutting and pack-
aging room in two shades of pink has taken the cold feeling out of this
low-temperature room. Yellow check-outs, checkered to appear like small
inlaid tiles, seem to increase the efficiency of check-out personnel. Colored
fixtures seem to stimulate employees as well as the shopper. Color is be-
ing used in retailing to organize functions, as a technique of communica-
tion. Employees seem to be more careful when fixtures are colored. Signs,
direction panels, contrasting walls done in color aid employees to find
their way around better, to spot wanted things better—and to direct
shoppers better. In the retail warehouse, color is finding the same uses
as in factory warehouses.
Exciting Public Service Displays
Too many so-called "public service" displays—both in the window
and in the interior—tend to be dreary. Exciting public service displays
cannot only build good will, but can also stop traffic;—and when you stop
traffic, you have a chance to make a sale. Examples: Displays portraying
local historical events—with local people loaning antiques for the pur-
pose. A druggist reports, for example, that a Civil War display, including
photos of locally prominent people who fought in the conflict, resulted
in both parents and teachers bringing children to the store to see the
display. Similarly, a food outlet worked with the art department of the
local high school and put up the best art work of the local students. Resi-
dents were asked to vote on the prize winners. Obviously, community
or public service displays of this kind stop traffic. They also produce in-
store traffic and make sales.
How to Identify Departments and Sections
The novel touch in departmental identification can give a store that
all-important interrupting note. A gigantic watch identifies the watch-
clock section. Caricatures of storks identify the infant section. A humor-
ous rendition of a mop and pail identifies the clean-up shop, etc. And,
by the way, in all store signs, bear in mind that women who wear glasses
226 1010 TESTED IDEAS THAT MOVE MERCHANDISE
are now placing telephones at strategic spots in the store. The shopper
picks up the phone, each of which really becomes an "information sta-
tion," and is immediately able to talk to someone who can answer her
question. A large department store uses a variation of the same idea—
reasoning that shoppers examining model rooms in its furniture floor
would rather not be approached by a salesperson until ready, this store
placed telephones in the model rooms. When the shopper wants a sales-
person, she picks up the phone.
"Safety" as a Promotional Theme
Some time ago, a fabric house achieved excellent volume with a pro-
motion that was themed: "Children Should Be Seen—Not Hurt." The
promotion featured highly visible patterns in children's garments. More
recently, a housewares and gadget promotion featured the theme: "For
Safety Sake." The items promoted included fire extinguishers, child-proof
medicine cabinets, automatic emergency light, burglar alarms, instant
flat tire repair kit, etc. Safety gets such an enormous amount of publicity
that it automatically becomes excellent promotion: anything so much in
the public eye is promotable. Yet few retailers have staged safety promo-
tions.
Prodding Inactive Accounts
Does your charge account or credit account list show inactive accounts?
Most such lists do. Here is an inexpensive way to bring them back to life.
(1) Run newspaper ads based on the "Lost, Strayed, or Stolen" theme—
ads urging customers to utilize fully the charge and credit facilities of the
store. (2) Simultaneously, when sending out the monthly statement, mail
a special statement to the inactive account. On this statement, in the
space usually used to list the current status of the account, print a message
like the following: "These are busy shopping days, but we have missed
you recently. This reminder that your account with us is cleared is com-
bined with an invitation to visit us again soon."
Promote Employee Discounts
Employee discounts are now traditional in retailing. And that may be
one of their weaknesses—they may have become too traditional and
therefore simply accepted as part of the routine. Why not promote em-
ployee discounts, why not "sell" to your employees with all of the drive
with which you sell to other shoppers? Why not consider the employee a
customer—as he and she really are? Some stores report less than 1 per
cent of volume done with employees—others report up to 3 per cent and
a few have hit 5 per cent. One retailer permits temporary help to buy at
180 TACTICAL IDEAS THAT MOVE MERCHANDISE 229
discounts for 30 days after their temporary stint is finished. Another re-
tailer encourages employees to buy at discounts for relatives. Several
retailers are changing employee shopping hours, changing systems for
permitting employees credit arrangements. Another permits retired em-
ployees to continue on the discount plan. Special sales are being arranged
for employees. Posters featuring employee discounts, special sales, etc.,
are being put up in locker rooms, rest rooms, etc.
longer Reading Time for Retail Ads
Retail newspaper ads tend to get more reading time than manufacturers'
national ads in other media. But successful retailers constantly search for
ideas that will win still more reading time for their newspaper advertising.
A large chain has successfully run a newspaper campaign in which each
ad included a crossword puzzle. The crossword puzzle was based on the
names of advertised items. Shoppers were invited to complete the puzzle,
bring it into the store, and drop it in receptacles strategically placed in
the store units of this chain. In each store, the first ten contestants whose
completed and correct puzzles were drawn from the receptacles were each
given a $5.00 prize in merchandise. The plan proved so successful it was
continued for several months—when the number of entries dropped off.
Now the chain is studying other types of puzzles that could be adopted
for similar use.
SECTION 5
floor traffic—it's really a handy intercom set up for the customer. Even
medium sized stores have found that customers appreciate the service.
11. Looking for an unusual contest prize? Try a free long distance
phone call.
12. Even in areas where there is little uniformity in store hours, few
stores post their opening and closing hours prominently. Old customers
may know your hours well, perhaps, but how about new customers?
13. This store uses one of its windows to attract applicants for sales
personnel, especially extra personnel for rush seasons. When tied up with
newspaper advertising the combination has pulled extremely well.
14. A simplified sales check saved one large store $1,500 in time in
the first year. Simplification of sales checks could save precious time dur
ing peak hours and cut down walk-outs.
15. Related selling is encouraged by a system of bonuses which are
paid only on sales slips which show a related product sale. The more re
lated items on the slip the bigger the bonus.
16. A grandparents' day promotion turned back the clock (pricewise)
on selected items to the prices which prevailed 50 years ago. Results
were so good the event will be repeated regularly.
17. Beware of too perfect housekeeping. It leads customers to follow
a hands-off policy, yet everyone knows impulse selling requires a hands-on
policy.
18. A window devoted to a picture of each employee together with a
brief biographical sketch attracted unusual attention. It pays to develop
the personal aspects of a business.
19. Salespeople at one fine specialty store are required legibly to sign
their full name with a "thank you" on each sales slip.
20. A "Fast-seller Checkup" sheet, used daily, will cut down out-of-
stock on best movers, especially during big holidays.
21. Never underestimate the power of flowers. A merchant who an
nounced he would give away free rose bushes to the first 200 customers
got heavy traffic.
22. Try dramatizing a truckload sale by putting miniature trailer
trucks atop merchandise, counters, in windows, etc.
23. Try supplying fashionably decorated shopping bags with greatly
enlarged capacity to encourage take-withs. Carrying multiple packages
is a chore most women despise. Put colored reusable handles on packages.
24. A poster in employee locker rooms of a large retailer reads: "If the
Customer Buys 5 Cents Worth or $20,000 Worth—Smile and Say Thank
You."
25. "Our cash register tapes are redeemable by charitable organiza
tions at 1 per cent of face value" announces a successful store.
234 1010 TESTED IDEAS THAT MOVE MERCHANDISE
26. Try creating familiarity with interior departments by showing huge
photographic blowups of these areas in your windows. Remember that
even regular passers-by may be completely unfamiliar with your store
interior.
27. Capitalize the personal aspects of your business—equip everyone
on the selling floor with name plates and business cards. Encourage the
use of names when dealing with customers.
28. A ticket good for a free ride at a local carnival was issued on the
basis of one for each dollar of purchase. It proved to be such a tremen
dous shopper lure, that it is being repeated with other forms of entertain
ment.
29. Make a game of out-of-stocks. Assign areas of responsibility; give
rewards for each week that no out-of-stocks are found; levy a fine for
each one found. Put all fines in a kitty to finance an annual party.
30. Keep testing new locations for outposts of major departments.
Putting the outposts on wheels will make locational testing much easier.
31. Daily drawings for huge stuffed animal toys—some of them almost
life sized—proved immensely popular.
32. "Our creed—no sale is final until you are completely satisfied."
33. Maybe your store and its customers have changed faster than some
of your traditional policies. Variety chains, for example, are now cashing
checks because big-ticket items, etc., make this logical.
34. When a new merchandise classification is added, this store checks,
rechecks, and then checks its performance once again. Too many new
merchandise categories are not paying their way.
35. Try a quick drive past your windows at night—check to see that
they get across one short, clear message.
36. Many merchants now offer every new home owner and new apart
ment house tenant a charge account—automatically.
37. To build up Saturday volume, try a newspaper campaign using
theme: "Save Saturday for Shopping—Save Sunday for Your Family."
One large store, which has financed this promotion itself, reports excellent
results.
38. Make your store important to salesmen. Program could include:
A realistic appointment schedule, a comfortable waiting room, and awards
to the salesmen who have helped the store most in the past year.
39. During peak hours, this merchant brings all nonselling people on
to the sales floor. Each is given an "Assistant Salesclerk" button. Their
primary job is to assist the regulars with wrapping and change-making
chores.
40. Try trading stamp offers as incentives to salespeople. The cost is
low and the impact unusually high.
41. Inside the door of this store is a small box containing dimes for
581 EVERYDAY IDEAS THAT MOVE MERCHANDISE EVERY DAY 235
for 36." Then put huge "36" signs up in his windows, then on his trucks,
etc. Then featured items at 36 cents, $1.36, $2.36, $3.36, etc., etc.
71. Develop contest ideas for juniors that enable school authorities to
work along with you. For example, a table-setting contest for teen-age
girls won support of home economics teachers in local high schools. This
one is an annual event; the school winning three times keeps trophy.
72. To get rid of bad buys—use newspaper ads announcing a "Follies"
promotion. Another theme: "A 'goofy' sale to unload our 'goofs.'" Still
another: "Pardon us—our slips are snowing."
73. Running a "trainload" or "carload" sale? Get a number of toy
trains. Display them on top of sale merchandise. Install an electric
train set; keep it running.
74. Several large retailers have prepared lectures, some on slides, to
be delivered before high school students, parents and church groups, etc.,
on the opportunities in retailing.
75. A new single-floor store reports that interdepartmental selling has
cut sales personnel needs by 20 per cent.
76. This store painted its front gold to celebrate its 50th anniversary.
Why not a silver front for the 25th anniversary, etc.?
77. Some modern store layouts "speed" the customer too much. Compel
a few detours. Put in interrupting notes. Symmetry and uniformity make
poor retailing. Cut down the shopper's walking speed—and build up your
average sale.
78. A free lollipop for each youngster in your store can work well.
79. Try making special parking arrangements for your employees and
for your customers with local gasoline stations—if any are nearby. And
include in the arrangements appropriate displays for your store at the
gas stations.
80. Ever try a bounty for employees who bring in employees? It works.
Offer a flat sum for each new worker brought in by a present employee.
Then offer a second reward when the new worker has rounded out his
first three months.
81. Few demonstrations are so persuasive as "before-and-after." It's
an old, old idea—but it never loses its selling punch.
82. Toy animals that move with the slightest jar—animals with hinged
necks, for example—are spotted by one store on tables, gondolas, etc.,
in various departments. They provide motion, and motion attracts the
eye.
83. Low-level fixtures facing out of the store do not interfere unduly
with open-view fronts, constitute a new type of "window display."
84. Free photos of children is one traffic pulling device which never
seems to become outmoded.
85. A retailer has special night-hour "sales" during which the door
238 1010 TESTED IDEAS THAT MOVE MERCHANDISE
181. Humor combined with a unique free offer can generate excep
tional traffic. "Free wall-to-wall carpeting for your doghouse, playhouse,
or duck blind" was advertised by one outlet.
182. A corsage for salesgirls that carries out a specific color scheme
involved in a promotion will attract shopper interest and stimulate sales
girls to push not only that color but all colors. Try it.
183. Giant hands, full window height, one on each side of the window,
made a perfect tie-up with the theme: "The Decorator's Touch."
184. Longer guarantees are becoming more popular. Here's a unique
guarantee on china: "Free replacement of any piece that is chipped,
cracked, or broken under normal usage in the first year—replacement at
half price for the next 99 years."
185. Self-service shopping carts piled with impulse items are a trend
among many stores. The positioning of the carts is becoming quite a
science. It is based on tests and accurate records.
186. "Hand made" as applied to a broad list of items today indicates
a point of superiority. Concentrate attention on the hand work which
goes into your merchandise.
187. Feature "Key Specials." Each special entitles the customer to a
key. Each key may be used to try opening a Treasure Chest. Customers
with the key that opens the chest get reduced prices.
188. A shopping cart located inside the main entrance carries a sign
card reading "Closeouts—Save 50%—All items in this cart 1/2 the
marked price." The cart is wheeled around the store each day before
opening. Broken packages, soiled items, etc., are dumped in.
189. A fireplace, as home builders well know, is a fixture of great
emotional appeal. One shop capitalized on this with an Early American
decor which used a large fireplace as its focal point. The fireplace is lit
on cool days.
190. Some stores are experimenting with lighting which is directly
above and actually part of the display cases on the theory that it directs
attention to the merchandise rather than to the store as a whole. It may
permit less elaborate interiors.
191. Customers will trade themselves up to higher priced numbers if
given the proper information. Try a typewritten data tag which itemizes
each feature. On higher-priced numbers type the additional features in
red so that the customer can clearly see the advantages of the better item.
192. A turntable can bring part of the window into the store and part
of the store to the window. A matching dryer and washer, for instance,
were mounted on opposite halves of a turntable near the window. Thus
one or the other of the appliances could be displayed inside the store or
to passing traffic as desired.
246 1010 TESTED IDEAS THAT MOVE MERCHANDISE
193. A number of retailers now offer every new home owner in their
area a charge account, automatically.
194. Retailers doing in-the-home selling report that from 10 to 30 per
cent more sales are closed—and that a better job of trading up is done.
195. Have you tried a vending machine in the window—or outside
the store? It promises to become a big development; it's being called
"Outer Space Retailing."
196. Make a price-marking shopping tour around your store at least
weekly. Correct imperfect marking. Call it to the attention of price
markers. Strive for constant improvement. Clear price marking is essen
tial to self-selection, self-service.
197. The Easter Bunny distributing gifts to children is becoming as
much of an attraction at Easter as Santa is at Christmas.
198. Various types of shelf extenders which cause certain shelf items
to jut out into the aisle effectively flag shopper attention.
199. Almost half of employee turnover is among persons who have
worked in the store for less than a year. Figure the cost in hiring and
training and volume lost through inexperience, and then consider
whether just one-half that amount devoted toward keeping those em
ployees wouldn't be money well spent.
200. The broad appeal which flowers hold for women makes them an
ideal prop for window backdrops. They can be effectively used in setting
up dramatic contrasts to prominent fashion colors.
201. Excitement events in which customers can participate directly
are doubly effective. One such event had customers panning for gold in a
plastic wading pool.
202. In addition to their regular shelf position all new items are given
a full month's display on the store's "New Item" fixture. A coding system
for the items on this fixture has demonstrated that a surprising number
of shoppers pick up items that they have bypassed on the shelves for no
apparent reason other than "newness."
203. Cover windows with paper, leaving only small peepholes at vary
ing heights—just one item visible through each hole for Peeping Toms.
204. The larger the selection of coordinated or matched merchandise
offered, the better the chances for increasing the average sale. This ap
plies with equal truth to everything from infants' and children's wear to
pots and pans.
205. Try using gorgeous gals as demonstrators for do-it-yourself
demonstrations—males pay rapt attention.
206. A late-morning coffee break plus longer afternoon breaks make
more salespeople available during the 12 P.M. to 2 P.M. lunch-hour shop
ping rush.
581 EVERYDAY IDEAS THAT MOVE MERCHANDISE EVERY DAY 247
tion) on a special peg board. Ask customers to pick the six best sellers
from the display. Offer appropriate prizes.
222. Part-time help is one answer to the peak-hour problem, par
ticularly as this help is often of extremely high quality. Teachers and
civil servants often are available. Part-time help is mounting rapidly.
223. A specialty shop got permission to paint the sidewalk in front
of the store green. It had amazing pulling power.
224. After you've participated in a community affair, why not run an
ad on the theme, "We were proud to lend a hand—and we're happy with
the results."
225. Salesgirls of one fashion store are equipped with pads, on each
sheet of which is prominently printed the words "I lost a sale be
cause. ..." They are required to fill them out and channel them upward
whenever a sale was lost because merchandise was not on hand.
226. Salesmen doing "in the home" selling are able to do a smoother
job when they substitute a portable dictating machine for tedious (and
often illegible) handwriting. They also have a more complete record of
just what agreements were made with the customer.
227. Clear the shelves of deadwood by setting up a "bargain basket" in
a good traffic spot. Add close-outs regularly. It's surprising how customers
will pore through it looking for something they need.
228. The effective job done by advertising and windows to correlate
separates is rarely capitalized in the store. The actual stock is not readily
located by the shopper in search of an ensemble. Shop your store and try
some ensembling yourself.
229. A store which charges for lay-away cancellations has these
charges on a sliding scale varying by the length of time which the order
has been held.
230. A special employee's night pulled well for one store. Each em
ployee was permitted to invite 10 guests who were entitled to sale prices.
The event doubled as an introduction to an anniversary sale which
started the next day.
231. Here's a window that really got over the story of a ready-to-wear
sale. No merchandise was shown. The only props were four brooms
placed as though in use, four pairs of empty shoes—one alongside each
broom—and a huge poster reading: "We're making a Clean Sweep of It—
Preinventory Sale."
232. A continuing record of when peak hours occur is kept by one
merchant who arranges to ring up the time on the cash register together
with the sale. This record of sales by day and hour helps him plan ahead
to capitalize on peak-hour traffic.
581 EVERYDAY IDEAS THAT MOVE MERCHANDISE EVERY DAY 249
286. Promotions which turn back the clock have a unique appeal.
One store turned back the clock to prewar prices for a limited time with
sensational results.
287. "There is always something new to see in our windows" is the
policy at one specialty shop. Partial changes are made daily although
background and trim remain for a considerable period.
288. A minor juggling of store hours may be the way to a better net
profit. Review your store open hours regularly—see where they can be
cut.
289. Change makers which make any amount of change up to $5.00
at the flick of a finger reduce cash register bottlenecks and errors.
290. Too perfect housekeeping discourages impulse sales. It also cre
ates a high-price look. Impulse selling demands interrupting notes—items
jarringly out of place.
291. The open house idea is spreading. No merchandise is sold al
though charge accounts are opened. Inducements include music, free
coffee, and fashion modeling.
292. A free pony ride will bring in parents with children. A free photo
of the child on the pony will do even better.
293. Excess inventory is reduced more rapidly when the "sale terms"
encourage multiple purchases. One shop offered a second skirt for $1.00
with the purchase of one at the regular price.
294. Try special pricing for multiple units of items normally purchased
singly. Customers have demonstrated a willingness to trade up to larger
sales units when there is a price advantage in doing so.
295. Instead of the usual "White Elephant" sale to move sticky in
ventory—try a Black Cat sale. One entire downtown area has staged a
Black Cat sale once a year—with great success.
296. A caricature cartoon gallery of leading citizens, characters, and
just plain customers is attracting unusual attention from youngsters and
oldsters alike in one shop. Shoppers go out of their way to be present
when the cartoonist is at work.
297. For its seventh anniversary, one store offered every customer
who came in a dime for seven cents. It produced traffic, too.
298. A "Gold Rush" promotion, with emphasis on 49 per cent reduc
tions, and with entire store interior and exterior carrying out the '49
theme, broke records for a home furnishings store.
299. This organization prints on all its checks—some of which go to its
customers—"We are pleased to hand you our check—hope that we may
have the pleasure of serving you in our stores."
300. Stock drawers with see-through glass panels do a visual selling
job and frequently reveal shortages before they become acute.
301. Promotions involving merchandise from several departments fall
254 1010 TESTED IDEAS THAT MOVE MERCHANDISE
reverse of his cash register slips. It reads: "You have my personal word—
you must be pleased with our quality and value. If not, I'll gladly re-
place any item or refund your money."
315. New area residents often have huge merchandise needs and no
store preference. One store snares their trade by having a store hostess
(a housewife working part time) call on newcomers with a warm wel
come, a small gift, and an invitation to visit the store.
316. One dealer has customers spin a wheel to determine the size of
their discount. Possibilities range from 5 to 50 per cent so there are no
losers. The gambling instinct is apparently well rooted in most shoppers.
317. A specialty shop built a promotion around the theme "Stepping-
out." Included a prize drawing for receipted bills from local night spots,
restaurants, and theaters which could be presented at these places in
payment of bills run up by the customer. Large blow-ups of the tabs
were used as window backdrops.
318. Try green paint, to simulate grass, on your parking lot asphalt.
It has a countrifying effect, and adds to parking lot merchandising.
319. Round fixtures with rotating shelves are partially built-in to reg
ular wall shelving. In addition to providing that essential interrupting
note, the spinning shelves make it possible to show a variety of mer
chandise logically related to the items on either side.
320. Shoppers make up their own multipaks in this event. A broad
variety of canned goods in a huge dump display were priced at 4 for
67tf. Bags which would hold just four cans and bearing a 67* price
stamp were supplied. Shoppers made their own selection—filled as many
bags as they desired.
321. Deliveries on air conditioners and other totable appliances are
reduced when salesmen tell shoppers "take it home yourself and save
$2.00."
322. Overstocked items, discontinued numbers, and merchandise to
be dropped from inventory are identified on the shelves by color coded
price tags. (Code is known only to store personnel.) Salesclerks are of
fered a 5 per cent commission to push these items.
323. Some stores are now experimenting with every-other-month
charge plans. They feel that potential labor savings may outweigh dis
advantages.
324. To make every shopping minute count, a "Career Girl Club"
arranges to have preliminary selections waiting for try-on and then ar
ranges to deliver the customer's selections to her office before 5:00 P.M.
of the same day.
325. To get clerks out from behind the counter, one outlet turned the
wrapping table completely around so that the register drawers and
256 1010 TESTED IDEAS THAT MOVE MERCHANDISE
wrapping materials faced the customer. Backing the about-faced counter
up against a wall also gained an additional 12 square feet of floor space.
326. Mass displays of featured merchandise are hung on the wall well
above regular merchandise fixtures. They serve as a reminder for the
floor-located displays.
327. To demonstrate year-round free gift wrapping, one merchant in
sists that a selection of attractively gift wrapped packages occupy a
prominent spot in the window at all times.
328. This is becoming a "customized" age. Shoppers are actively seek
ing the prestige of custom features in the things they buy. Start now to
build a reservoir of local artisans who can add custom features to stock
items.
329. The secret of making a small contest prize seem important is to
tie it to a shopper problem which is both important and repeated. That's
why offers to pay the rent, meet the next car installment, or pay utility
bills pull out of all proportion to the size of the prize.
330. "Calendar" discounts on select items work this way. Beginning
with the first day of the month, the price is cut $1. It is cut an additional
dollar every day. Thus, on the 20th of the month the price has been
cut $20. This continues until the item is either sold or at month's end
the item is disposed of.
331. Do you encourage shoppers to let you know about items they
want—and can't locate in your store? One outlet has a box prominently
displayed for this purpose—a sign above the box reads: "Couldn't Find
It? Will you please leave a note in this box? Our buyers will get it—if
it is available. Thank You." A note pad and pencil are handy.
332. "Perpetual Motion" is what one merchandiser calls his floor dis
play policy. He makes display changes daily—claims it stimulates his
salespeople as well as having good appeal to regular shoppers.
333. Downtown stores lose too many sales during noon hour traffic
peak. Have you checked walk-outs during the noon hour lately?
334. Ever think of running a newspaper ad once or twice a year
complimenting your employees—and running their pictures? Everybody
likes to see their picture in the papers.
335. A tab sheet listing "hot items of the week," prominently posted
in one store's offices, has stimulated competitive spirit among buyers—
all of whom want to see some of their items listed.
336. Repairmen fill out a special pink card whenever they service an
appliance that is more than five years old. These cards are given to sales
men for personal follow-up.
337. Telephone call-backs on prospects who did not buy after initial
581 EVERYDAY IDEAS THAT MOVE MERCHANDISE EVERY DAY 257
in-home visit have uncovered a high percentage of live leads. The tech-
nique is equally effective as follow-up of in-store shoppers.
338. For store openings, an offer of an oil portrait on silk, hand painted
from small photo, priced at $6.95, brought good traffic; sold portraits in
good volume; and held no appeal for riffraff.
339. Public interest in the stock market runs high. Contests and sales
inducements involving common stock will get unusual attention.
340. The first baby born on any holiday, or on any other selected date,
is given free gifts—always makes effective baby event.
341. Small hand-lettered signs pinned to the collars of checkers fea
turing specials stocked at check-out can work magic.
342. Salesclerks are kept on the lookout for out-of-stocks by offering
a reward for every one spotted and verified by a department head. They
are given forms to fill out which begin: "Hurry, I may lose a sale be
cause we don't have ________ ."
343. Tiny classified ads with typical classified ad abbreviations were
scattered throughout a display ad on a housewares clearance—drew top
attention to the specials.
344. A self-service coffee cart in one shop offers free coffee and a
selection of cookies. Shoppers respond well to this leisurely approach
to shopping.
345. Odds and ends of inventory, damaged packages, etc., on a porta
ble table, are wheeled to the vicinity of the front door whenever it be
comes sufficiently loaded. A sign assures shoppers of savings of 50 per
cent or more from the original price.
346. Instead of a few large contest prizes, try a large number of
smaller, but significant prizes. One store offered 10 lucky couples a
week end at the fanciest local hotel. Entries broke all previous records.
347. During a clearance event, appliance salesmen phoned every au
tomatic washer customer of the previous year to offer them a matching
dryer at the low prices. They pointed out that this was a last chance to
get a matching unit before the new "trim changes."
348. With every pair of hosiery sold, customers are given a coupon
good for lOtf toward the purchase of any pair of tinted hose within
three months of the month stamped on the coupon. The cut-off date
seems to result in a higher percentage of redemptions.
349. The service agreement is looming as an increasingly important
competitive tool, and profit tool too. As appliance possession by shop
pers grows (and repair bills mount) the dollar value of the service
agreement will soar.
350. Provisions for customizing are destined to become vital to many
258 1010 TESTED IDEAS THAT MOVE MERCHANDISE
stant reminders and suggestions. One store has a prepared list of "must
suggestions." A copy is placed in each sales book, on each cash register,
and in several places at each wrapping counter.
416. "Wise shopper money" is given to shoppers with each purchase
of specially marked merchandise. The "money" can be spent on any item
in the store. One store gives it with every item carrying the store brand.
417. As more ready-to-wear departments move toward some form
of check-out counter, techniques must be developed for capturing the
sale of items the shopper had planned but temporarily overlooked. One
of the best—some form of roving hostess to run the shopper's errands.
418. Small sizes were described by one store as "sized for convenience"
and to make the price attractive, the store priced them 3 for $ ------
(the price reflected a variable saving for each package).
419. For men shopping for gifts for women, this store furnishes a
"wife-size picture." Man notes wife's measurements, her china designs,
etc. Good idea!
420. Special credit plans for teen agers are becoming a favorite de
vice of stores attempting to develop firm shopping habits among teen
agers. Among the inducements used to enroll youngsters in credit plans:
an L.P. "Rock 'n' Roll" record, a lipstick case, a monthly "charm school"
bulletin, and a no-interest credit plan.
421. Most women like to think that they are highly discerning shop
pers. That's why an ad which stated "experienced shoppers will imme
diately recognize these to be unusual values" pulled well without men
tioning a single price.
422. A single package in a wire holder extending about eight inches
out from the shelving has turned out to be an effective way of flagging
attention. It is also an interesting way to relieve the monotony of militar
ily precise rows of packages.
423. There is a small group of fashion addicts comprising perhaps no
more than 5 per cent of a store's customers who account for about 20 per
cent of fashion business and very nearly half of really high fashion busi
ness. Try giving them a bit of red carpet treatment.
424. A round table with a mirror surface is used by one outlet for the
display of new products. A card by each new item gives its price and
regular in-store location.
425. It defies all logic, but shoppers can be persuaded to walk in
through the back door at hours when they wouldn't be dragged in the
front door. A 10:00 P . M. to 1:00 A. M. sale drew heavy buying traffic.
Admission was by the back door on presentation of the store's announce
ment ad only.
426. A fashion "before and after" was handled in the window using
264 1010 TESTED IDEAS THAT MOVE MERCHANDISE
set that is over five years old. The form is turned over to a salesman who
calls the customer to suggest a new set. He also offers to tear up the
repair bill.
466. Try naming your aisles after local streets rather than with num-
bers or letters. Customers remember them better and it improves the
community character of your store.
467. Ever try the floor as a merchandise fixture? One shop displays
its handbags on large ovals of carpeting placed beneath its manikin
displays. Finds the techniques very effective.
468. Ultramodern fashion department decor may be out of step with
customers' preferences. Their choices for home decor have shown a strong
trend toward Early American and period decor.
469. Problem sizes, too small as well as too large, find it increasingly
difficult to find adequate selections. They respond enthusiastically when
a promise of real choice is extended. One shop builds a collection of
problem sizes—stages a full price promotion for them during normally
slow periods.
470. Impulse is spurred by the unusual. Moving merchandise out of
its regular section for short periods of time exerts a beneficial effect—
even when it is not tied in with a strongly related product.
471. Despite usual pilferage fears, a ready-to-wear shop displays
slips, bras, girdles, etc., within easy reach of fitting rooms in rear of store.
Store owner knows volume has increased, has no reason to believe pil
ferage has jumped.
472. Sections devoted exclusively to travel needs are becoming justi
fiably popular. A substantial portion of our population is traveling con
tinually. _
473. "Once again, cash talks." An appliance dealer offered shoppers
a special deal on the basis of cash in full with each order. Many custom
ers prefer to buy for cash—more would if the incentive was there.
474. A "wear warranty" is issued with every piece of carpeting by
one floor covering dealer. Warranty period varies by type of carpeting
and place of installation.
475. There has been a distinct pick-up in customer demand for orig
inal paintings. One store arranges for local artists to bring in pictures
suitably framed. These are placed in room settings and sold at a price
set by the painter. The store collects a commission.
476. One store has a large blackboard on which the latest official
weather forecast is chalked!
477. An unsightly pillar was concealed by throw pillows suspended
floor to ceiling around the pillar by wires. A dump bin at the base con
verted the display into a self-service fixture.
268 1010 TESTED IDEAS THAT MOVE MERCHANDISE
478. There are signs that the so-called "Private Sale" for charge ac
count customers, announced by a post card mailing, is losing impact.
For a special fillip, try phoning each of these customers. At the same
time give them some specific merchandise information. Ask if they have
any special needs.
479. After the "back room" sales training is completed, new employees
are assigned to highly experienced salesclerks for several days of on-job
training. The "coaches" receive extra compensation for the time in which
they act as instructors.
480. A six session fashion clinic for working girls was run at 12:15
P . M. each Wednesday for six weeks. Sessions were held on: proper fit
and foundations, fashion silhouettes, cosmetics, fabrics, accessories, and
a summary of the course. Box lunches were available for 50#.
481. Ever try selling two television sets at one time? One dealer of
fers a second portable set at half price with the purchase of another set
at full price. There has been a vast increase in the number of two set
and three set homes—and the trend is still in its infancy.
482. In addition to their regular shelf position, all new items are given
a full month's display on this market's "New Item" fixture. A coding sys
tem for items on this fixture demonstrated that a surprising number of
shoppers pick up items they bypassed on the shelves for no apparent
reason other than "newness."
483. A shop doing an extensive in-home selling job finds that it
can speed up the customer's decision by arranging sample books by color
rather than by texture or quality. They also find that it is somewhat easier
to trade up to better qualities using this method.
484. Is it in good taste? That's the sales-killing doubt which creeps into
customers' minds more frequently than any other. Try countering this
with occasional "Best-of-taste" collections. Promote interior decorator
services. The use of an interior decorator has become a status symbol.
485. The search for greater store individuality is turning more atten
tion toward wrapping materials and particularly gift wraps. Packages
which identify the store without using a large logotype are particularly
sought after by shoppers.
486. Six-foot-high secretarial pads with a giant pencil poised above
shorthand copy formed the window backdrop for a special pitch to secre
taries. Interior display cards were done on actual steno books. It pays to
talk the language of your customers.
487. Before remodeling was begun, customers were shown the plans
and asked for specific suggestions as to what they wanted. Several of
the planned improvements were so indifferently received that they were
dropped. A few others were added.
581 EVERYDAY IDEAS THAT MOVE MERCHANDISE EVERY DAY 269
488. A case lot sale which started at the store's regular closing time
and went on right through the night pulled an amazing response—even
during the wee hours of the morning. Items were sold by the full case
only.
489. Car servicing while you shop is one way of making the customer
a captive for a length of time. Cars are picked up and returned within
the hour. The key is left at the check-out with tile charges. These are
added to the shopper's check.
490. A lending library of children's books gets a heavy play. Children
are given their own library card. Here's a fine way of keeping youngsters
busy while Mom shops, and it certainly is an appreciated service.
491. A huge bulletin board—over 20 feet in length—is used to remind
customers of in-store specials. Lettering is large enough to be read
throughout most of the store.
492. Boats—particularly the plastic run-about variety—have shown
themselves to be an attention-getting display bin for bulk displays of
anything with even a faintly nautical origin.
493. A class of third graders was taken on a store tour. At the con
clusion of the tour, each child was photographed and the pictures put
on display. Shoppers were asked to vote for the photo they liked best.
Naturally family and friends turned out in force to vote for their favorite.
Winning photo had a spot in the store's next ad.
494. Develop a more personal relationship with customers. Policy at
one store includes: salesmen will introduce themselves when approaching
customers; a personal thank-you letter hand signed by the salesman after
each sale; a hand signed Christmas card filled out at the time the sale
is made and then filed away for December mailing.
495. The salesgirls in one hosiery section are sent out occasionally on
slow days to "shop the competition." In addition to acquainting them
with what competitors are selling it has the added advantage of making
them feel like V.I.P.'s.
496. One market manages to start the late week evening rush a bit
earlier by offering a free hot dog to everyone coming in between 5:00
and 7:00 P.M.
497. A store features a "one-of-a-kind" boutique—emphasizes that
items found in this special section are absolutely unduplicated anywhere.
498. Some stores report a midmorning pick-up due to quick shopping
by women workers who rush out during the coffee break. Coffee breaks
are getting longer—especially for women. Coffee-break shopping may
pick up still further.
499. A premium grade meat is identified in the meat case by a special
gold price tag. Copy on the tag reads: "This superior quality meat is
270 1010 TESTED IDEAS THAT MOVE MERCHANDISE
unconditionally guaranteed. If for any reason it does not prove fully sat-
isfactory, return this tag for a full refund."
500. Shoppers are showing a distinct tendency to trade themselves up
to better quality products. One store capitalizes on this with a private
brand line priced well above that of the national brands.
501. When customers hurry to secure a place in the check-out line, it
means their shopping trip has been cut short and the average sale must
dip. One market featuring fast check-outs has a 5-minute waiting limit
guarantee. When a snag develops (very unusual), the customer gets a
free gift.
502. To build early week volume, one store offers a "surprise package"
worth at least 50tf with each purchase of $5 or more.
503. This store's P.A. system is used to introduce store personnel to
shoppers as well as timely specials. The announcer will introduce a sec
tion manager, for instance, tell of his qualifications for the job, and follow
this up with an announcement of a special.
504. Actual cash awards to shoppers holding a lucky number have
proved to be a powerful traffic lure although the dollar amounts are
small. Shoppers must be in the store when a buzzer sounds to be eligible.
505. The "door opener" at one store opening was a free bundle of fire
place wood. It drew phenomenally.
506. A discounter rented a parking lot for a huge promotion. Truck
trailers were parked around the perimeter. Steps were erected to each
van. All selling was done direct from the trucks. Special delivery trucks
were on hand—so were porters to help customers who wanted to haul-
their-own.
507. Capitalize on the appeal of imported merchandise by setting up
a small canopied bazaar stocked exclusively with imports within the main
fashion section.
508. Gift wrap samples are on display at each fashion counter in one
store. Signs offer to wrap any purchase at prices that vary for each
wrapping.
509. A furniture store set up a series of model rooms for children--
invited both parents and children to attend a special "Open House." Pop
corn, soda, etc., were available on a "help yourself' basis.
510. Layaway this idea for winter: Put electric fans on a snowbank.
Hook them up. Then put up a sign reading: "How would you like to have
this cool breeze next summer?" It will move fans—in midwinter!
511. Comfortable seating, free refreshments, and a subdued atmos
phere are the keynotes of new specialty operations. They appeal to those
refugees from production line self-service departments.
512. A speciality shop speeded its summer clearance by grouping
581 EVERYDAY IDEAS THAT MOVE MERCHANDISE EVERY DAY 271
to large-size packages by clerks during the slow selling periods. Its effect
on large size movement has been dramatic.
537. Credit accounts for teen agers are set up on an "amount not to
be exceeded basis." The size of the line of credit is determined in con
sultation with the parents. Parents find the promise of an increase in this
amount is a top incentive to teen agers.
538. Couples are encouraged to shop during a store's evening hours
with this offer: "Make any purchase and we'll treat you to the late show
at the movies tonight."
539. "Pop in and pick up a ________ " This store ad told how a par
ticular special was available for really fast shopping—was prewrapped,
right near the door, and no waiting for service.
540. A store has a "space ship" play area to keep children occupied
while Mom and Pop shop. It takes pictures of the children in the "space
ship" and offers prints to the parents free.
541. A shop used antiques regularly as display backdrops. Occa
sionally, customers asked if the antiques were for sale and after hearing
the price (high), frequently walked out with the item. Accordingly, the
store experimentally priced all the antiques in customer view and now
does a tidy and very profitable antique business.
542. To generate traffic, a store offered to take a baby picture for "a
penny a pound." Additional poses were available to mothers at regular
prices.
543. Customer dissatisfaction resulting from improper laundering is
increasing in direct proportion to the vast increase of fibers and fiber
combinations. So—one store reprinted the laundering instructions for the
more common fabrics and suggested to customers that they tape the in
struction sheet to their washing machine.
544. A fashion show in which all the models are store customers has
been uniquely successful. One model was a grandmother over 70. Each
model received a free gift and, of course, a tremendous psychological lift.
545. During a drive for new charge customers, one store put charge
applications on every counter, near every cash register, at stands near the
doors, and in every fitting room. When ringing up a sale, clerks were in
structed to ask customers to open a charge. Ball point pens which the
customers could keep were provided for use in filling out the forms.
546. A successful stag night program included door prizes, a free coat-
checking service, free cigarettes and coffee, drawings for prizes based on
purchases, P.A. system announcements, attractive hostesses, and special
gift wrapping tables. All in all, a formula for success at any time.
547. A store invites women's groups to tea on slow afternoons—works
in new-product demonstrations.
274 1010 TESTED IDEAS THAT MOVE MERCHANDISE
548. A corset shop publicizes its sales help as "graduate corsetidres"
—emphasizes that they have taken special courses in fitting foundation
garments and continue to take special courses to keep up to date.
549. A do-it-yourself "cost calculator" boosted sales. It appeared in a
newspaper ad, helped readers figure out for themselves the cost of carpet
ing rooms of various sizes.
550. Classes in gourmet cookery for men only, sponsored by a food
market, were concluded by a final exam in the form of a contest. Each
participant was required to prepare a complete meal. A judging was held
and appropriate prizes offered.
551. Courtesy bulletin boards where customers can place notices for
the things they want to buy, sell, or swap are good community relations.
One retailer also supplies index cards, pencils, and thumb tacks as an ad
ditional service.
552. A unique fashion show was devoted to teaching customers the
tricks of accessorizing smartly. All models were selected from the audi
ence and the accessorizing was done on the garments these customers
were wearing.
553. Retailers in all sections of home goods report that young couples
are responding to the basic thought that home furnishings should be
changed as their tastes and income change. Cars are bought every two
or three years; why should home furnishings be forever?
554. A "World of Hospitality" was the theme for a display of house-
wares from all over the globe.
555. Try an invitation to browse. A furniture outlet specializing in
Early American headed their ad: "If you love Early American, you'll love
browsing in ------ 's.w
556. A blouse promotion was helped by having salesgirls wear the
promoted blouses during the event—and then giving each the blouse at
the end of the promotion.
557. A home furnishings dealer invites all of his customers of the last
year to a free dance staged in a fine ballroom. He says it pays off within
a month.
558. Fashion department employees in one store not only receive in
struction in basic fashion trends but are also briefed on the fashion
features of new merchandise as it is received.
559. The entertainment spectacular as a promotional device is finding
increasing favor. Most popular devices so far are flower shows, musical
exhibitions, circus acts, and dance groups.
560. A dress shop speeds clearances by encouraging sales of multiple
items to each customer. Their policy: Any second "sale" garment for $10
regardless of the marked price.
561. There is a distinct trend developing in home furnishings toward
581 EVERYDAY IDEAS THAT MOVE MERCHANDISE EVERY DAY 275
delivery and pick up at no extra charge and the use of charge ac-
counts for payment of rentals.
According to Harry N. Hirschberg, Vice President and General
Manager, the operation will compete with all types of independent
rental operations.
The Hecht Co. rental service includes:
Party needs: linens, china, glass- and silverware, serving pieces,
tea and coffee services, bars, trays, folding chairs, tables.
Do-it-yourself tools: electric hammers, jig saws, sanders, paint
sprayers, floor polishers, carpet cleaners, power saws.
Hospital equipment: electric hospital beds, wheel chairs, crutches,
over-beds, commodes, trapezes, motorized bikes, massage lounges.
Baby and guest needs: rollaway beds, auto cribs, play pens, high
chairs, strollers, youth beds, plus TV's, typewriters, stereos, P.A.
systems, and many more too numerous to list.
There is little doubt that this infant trend will grow—the tradi-
tional department store will become a major factor in rentals.
24. Finally, the electronic data processor (EDP)—still in its infant
stages in the traditional department store field—is destined for
rapid growth. It has been undergoing elaborate tests; it has had its
ups and downs, but it now seems poised for rapid acceptance and
use. Certainly the department store cannot hope to bring its con-
stantly spiraling costs under control unless and until EDP takes over.
This is one reason why, in late May, 1962, a whole session of the
National Controllers' Congress Conference in New Orleans was
given over to a discussion of the problems attendant upon the intro-
duction and use of electronic data processing.
It is just barely possible that the major department stores may
even lead the way among mass retailers toward acceptance and smart
use of EDP. If so, this would not only be historic, but it would also
hold out promise that the granddaddy of mass retailing may be des-
tined for a renaissance.
Food for Thought in Food Super Infant Trends
1. The retail grocery industry is apparently destined to be run
almost entirely from the central headquarters of independent chains
and corporate chains. No more than one hundred headquarters will
control the buying and merchandising of the food products in the
American consumer's shopping cart.
288 1010 TESTED IDEAS THAT MOVE MERCHANDISE
21 per cent. That's a 100 per cent jump. It continues to inch up. This
is the food outlet's Achilles' heel. The trend to bring costs down is
definitely in its infancy. Here is a fertile field for imaginative pro-
gramming by manufacturers.
9. Nearly six out of every ten new food supers are doing less
business than planned. This is worrisome—as it should be. The prin
cipal reason is competition. The typical food super that opened in
1961 was confronted with direct competition from three to five other
food outlets. Between the decision to open a store and the store
opening, competition sometimes doubles. New trends are developing
with respect to the actual store opening. Less hoopla. Somewhat
more scientific programming for the opening event. Few manufac
turers are alert to this trend—even fewer are doing anything about
it.
10. Sales per square foot in new food supers declined in each of
the last three years—from $2.91 in 1959 to $2.61 in 1961. That's a
decline of roughly 10 per cent while costs in new stores mounted.
This is an infant trend that the food super is understandably eager
to keep in an infant stage. What cues here for manufacturers? The
food shopper is beginning to show a few signs of rebelling at high
margins for food under self-service. Discount food outlets, with their
lower margins, may cause this public attitude to snowball. This, too,
is an infant trend right now—but it has grave implications.
11. The number of families available to each new food super is
dwindling rapidly. This is a bad situation. As a consequence, it now
takes from two to three years for many new food stores to turn the
profit corner. Since new competition obsoletes stores and store loca
tions at a fantastic pace, this disturbs the current thinking of the
food outlet. Whatever disturbs a retail outlet offers idea opportuni
ties to manufacturers supplying that outlet.
12. Shopper loyalty is at an all-time low. Few food supers get
even the major share of the food purchases of the majority of their
customers. Bigger stores and less loyal shoppers spell out a big prob
lem. The average ticket is rarely satisfactory. This was the reason
for the initial interest in the ill-fated Philco Instant Dividend Plan.
This trend is past the infancy stage, but it becomes more serious
each year. What manufacturer will come up with a great program
to rebuild shopper loyalty for selected food outlets?
13. Nonfood outlets are becoming important distributors of food.
But this trend is definitely in its infancy. Discount chains, drug
INFANT TRENDS PLAY ADULT ROLES IN MOVING MERCHANDISE 291
automatic vendors belong in the food outlet right now, inside the
store, outside the store, and in its parking lot. Maybe food supers
will install and service automatic food and other vendors in other
locations such as in gas stations, in big apartment houses, etc. This
is a true infant trend with almost awesome implications for food
processors—several of whom, right now, have special departments
for automatic vending programs.
30. A store that delivers piping hot food to the home, ready-for-
the-table, has had interesting success in New York. This idea has
interesting potential. There are other ideas such as this that could
open new concepts of food retailing appealing to millions of non-
cooking wives.
31. The food outlet is just beginning to consider inviting in the
leased department operator on some of its newer nonfoods, especially
soft goods. These syndicates of leased department operators are
growing rapidly.
32. Gourmet foods, national foods, exotic foods are showing good
gains. Larger sections and specialty shops are in order. This prom
ises to become a big trend.
33. Some food super chains are beginning to make detailed studies
of manufacturers' deals. These studies will unquestionably lead to
conclusions on the part of the food outlet that, in turn, will compel
manufacturers to do a better job of planning deals for store profit as
well as for turnover. This is one infant trend that could grow to ma
turity quite rapidly—deals seem destined for quite an overhaul in
the not-too-distant future.
34. The food super is broadening its soft-goods and fashion classi
fications. A Canadian food super installed an "in-store shop" in a
new unit that provided 700 square feet for ready-to-wear. The food
outlet is, of course, far behind the variety chains with respect to
soft-goods and fashion lines. It probably will never catch up with
the variety chains. But either through special sections in food
stores, or by buying into discount chains strong on soft goods, home
furnishings, etc., the major food outlets promise to take their infant
soft-goods and fashion departments and rear them to adulthood
rapidly.
35. Reference has already been made to the forays of the food
supers into discount outlets. A bit more data on this trend is in
order. Present plans take three forms: (1) To open food depart
ments in discount houses as lessees. (2) To open its own discount
296 1010 TESTED IDEAS THAT MOVE MERCHANDISE
stores and possibly lease out certain departments. (3) To buy out
or merge with existing discount operators. Thus, Penn Fruit acquired
Kiddie City, a nonfood low-margin operation. Penn Fruit will open
family stores to be called Super Kiddie Cities that will be linked
to complete Penn Fruit markets. A&P is opening so-called Family
Savings Centers—these are presumed to be discount stores. Food
Fair is heavily involved in discount outlets that it has acquired, in-
cluding Enterprise-J. M. Fields, Inc., a Boston based chain of over
45 discount department stores. (Fields expects a $200 million volume
by 1963.)
Meijer Super Markets of Grand Rapids has opened a discount
chain called Thrifty Acres. Stop & Shop acquired the Bradlee dis-
count stores and has made other moves in this direction. Jewel Tea
acquired the discount department stores of the Turnstyle Corp. Jewel
announced that this move was "in keeping with our program for de-
veloping family centers, which will be self-service food super-
markets, plus department and variety and rug store combinations."
Safeway's Los Angeles Division has been experimenting with dis-
count departments in a few of its stores. In one store, over 30 per
cent of the selling area was turned over to the discount departments.
(And to make room for these new discount departments, the food
sections were compressed! That will probably send a chill, down the
spines of some food processors.)
36. The food super is turning toward the promotion of rentals.
With its huge daily traffic, the food super may come out near the
top in this fantastically growing area of rentals for a broad variety
of merchandise classifications.
37. The bantam food store—varying in size from 1,200 to 2,800
square feet—moves along, but is still an infant trend. There may be
2,000 of these stores in operation right now. It is dubious, in our
opinion, that the bantam food outlet will ever become a major
factor in food distribution—except in a few areas where special
circumstances exist.
38. In a few luxury stores—such as a food store in Manhattan's
silk-stocking district—credit is being offered on food (also orders
are taken on the phone and delivered). Simultaneously, the food
supers are finding it necessary to offer credit as they move into non
food big-ticket merchandise classifications; this is fairly common
procedure today. It seems almost inevitable that a store that offers
credit on a substantial part of its total inventory must, someday,
INFANT TRENDS PLAY ADULT ROLES IN MOVING MERCHANDISE 297
is in line with that trend since it permits shopping from the doorstep
of the home.
2. The variety chains are beginning to show an interest in the
merchandising of services. Thus, W. T. Grant has gone into the
domestic travel business. At the time of writing, Grant was selling
domestic tours in some 35 of its Eastern stores. These tours ranged
in cost from $79 to $295. (Both Sears and Ward have gone into the
travel business in the last year.) McCrory has opened coin-operated
laundries. Several variety chains operate auto service stations, and
others will soon follow suit.
There is little question that the variety chains will broaden the
scope of their service departments. Few variety chains have had even
the traditional service departments—optical, beauty shop, etc. This
is now destined to change.
3. The variety chains are beginning to open specialty store units
of various types. This started when the variety chains became in
terested in nursery products and garden equipment; Woolworth
started a number of free-standing units of this kind. Now J. J. New-
berry is experimenting with a higher-priced women's specialty shop
(to be operated under the name of R. H. Taylor). The first one is
in a St. Louis shopping center, where Newberry's has one of its
large stores. It will be a 13,000-square-foot two-story store concen
trating on better fashions—what the traditional department stores
would call a "twig." Newberry plans to build this concept into a full-
fledged chain if results are satisfactory.
Newberry is also planning what may be described as a "seasonal"
store. This starts out, in season, as a garden store. In other seasons it
will feature toys, home furnishings of specialty types, etc. New-
berry is experimenting with restaurants and with a package liquor
store. (Also, Newberry is opening a chain of department stores un-
der the name of Britt.)
There is some reason to believe that all mass retailers will soon
be testing new versions of specialty stores. After all, there must be
a saturation point in giant one-stop outlets. The variety chains seem
to be moving rather vigorously with experiments in this direction.
4. The gourmet food section is being rapidly developed by some
of the variety chains. This comes on top of a rapidly expanding food
section. In one of its outlets, Newberry is featuring gourmet food
items selling as high as $50. A new Woolworth store devotes 90 feet
of counter to a self-contained gourmet food center. Among the items
300 1010 TESTED IDEAS THAT MOVE MERCHANDISE
tages are presumed to be: (1) A lower cost for advertising since
the budget is shared by a group of stores. (2) The cluster may make
that particular chain the strongest outlet in the trading area. (3) By
drop-shipping fast-moving numbers to a centrally located store in
the group, faster distribution is obtained; out-of-stock on hot num-
bers is not quite so chronic. (4) The smaller stores in the cluster can
promote big-ticket numbers that they cannot back with advertising
by taking advantage of the advertising run by the big stores in the
cluster.
14. The variety chains are moving more deeply into drugs and
even into prescriptions. This is especially true in some of the new
discount units of the variety chains—pharmacies will probably be
included in most of the Woolco stores. Kresge drug departments,
now operating in several stores, do not include prescriptions, but
presumably this could come later. There is little doubt that the
variety chains will build a substantial volume in proprietaries, sun
dries, etc.
15. Diamonds might become the variety chain's best friend. Jew
elry departments featuring diamonds and 14-karat gold jewelry are
sprouting up in this outlet.
16. McCrory's may be pointing the way to the other variety chains
in the direction of broad-scale diversification. McCrory's is planning
so-called McCrory Villages. These will be fully integrated retail
stores operating under one roof and all owned by McCrory. This is
an adaptation of the Korvette City idea. This variety chain now owns
a tire chain, a men's furnishing chain, a men's shirt chain, a women's
dress chain—and the end is not in sight. This could develop into a
trend of considerable importance to many manufacturers.
17. Variety chains are giving their store managers increasing lati
tude, especially with respect to pricing. Daily price lists are still
sent out, but most managers are given to understand that they are
expected to meet competition on price.
18. The variety chain, like the department store, is also trying to
think in terms of dollar volume and velocity of turnover rather than
in traditional terms of markup percentages. However, tradition dies
hard among the variety chains, and only the slightest progress has
been made in this particular direction. But there is at least a fair
chance that markup worship may lessen—in which event, a number
INFANT TRENDS PLAY ADULT ROLES IN MOVING MERCHANDISE 303
different from the inventories of stores that are even merely three
years old.
23. Experiments with discount stores operated under other names
are common among the variety chains. In several instances, they
are not experiments. The Woolco chain, for example, will have
achieved a substantial turnover within two years. Grant is operating
its discount stores under the name Diskay Discount Marts. Kresge
calls its smaller discount stores Jupiter and its larger ones K-Mart.
Kresge expects to have some 50 Jupiter stores in operation by the
end of 1962. The K-Mart stores of Kresge tend to concentrate on
sporting goods, furniture, building hardware, rugs, home furnish
ings, piece goods, footwear, men's and boys' apparel, housewares,
hosiery and fashion accessories, jewelry, apparel for infants and chil
dren, apparel for teens, women's wear, candy, and stationery. How
ever, some K-Marts have 39 departments including auto accessories
—and some departments are leased. Kresge expects to have 37
K-Marts by 1963.
Several of the variety chains are turning old and small stores into
discount units. These are usually store units that have been operat-
ing in the red.
However, the discount tail is hardly likely to wag the variety
chain dog. The variety chains have yet to prove that they can op-
erate a true discount store and earn a profit. This is currently an
infant trend. It will undoubtedly grow. But whether it will ever
figure really importantly in the variety chain is debatable. We hap-
pen to think it won't. As we mentioned earlier in this chapter, most
of the variety chains have been turning in poor net-profit ratios and
poor capital return figures year after year; it is hardly likely that
discount operations will turn this trend around. (In 1961, and in
the first half of 1962, most variety chains reported dropping net-
profit ratios and capital return.)
24. The variety chains will wind up in a very few years with from
50 per cent to 75 per cent of their dollar volume done in a com
paratively small percentage of their total number of stores. These,
of course, will be their giant department store one-stop outlets.
Manufacturers will find, in some merchandise classifications, that
they will win more economical operation by not attempting to get
into all of the stores of a variety chain—a limited distribution con
fined to the new giant stores may be preferable.
INFANT TRENDS PLAY ADULT ROLES IN MOVING MERCHANDISE 305
25. The variety chains definitely intend to expand their total soft-
goods and fashion departments—and on a huge scale. Some of these
chains expect to account for 30 per cent of their dollar volume in
soft goods. The trend toward higher fashion is especially emphatic.
Price ceilings are moving up. In a new Neisner variety store, wear-
ables have been accounting for 40 per cent of the store's total vol-
ume. But this is happening in only a few of the newest variety chain
stores, which is why this is, indeed, an infant trend as yet.
And that about winds up the infant trends of the variety chain. It
is probably attempting more new strategies and tactics than either
the food chain or the drug chain—and for this very reason it will
offer many opportunities, and problems of course, to many of its
suppliers.
Drug Outlet Infant Trends Cause Distribution Colic
The drug outlet—chain and independent—is faced with more
trends (major trends that still have a long way to go, as well as
infant trends that will grow to adulthood) than any other retail
outlet. Suppliers to the drug outlet have already made many mar-
keting adjustments to conform with the well-established trends. Now
the industry must develop new marketing programs designed to
cope with the market situations that will become stubborn realities
when the present infant trends of the drug outlet grow up through
adolescent stages to full adulthood.
1. A major drug outlet trend that still has a long way to go is die
trend among the drug chains (as well as among some of the more
enterprising independent druggists) to open leased departments in
other outlets. This trend started with drug-chain operated leased
departments in discount stores. Now drug chains are opening leased
departments in the established store units of department stores as
well as in the new discount units of department stores. Ditto with
respect to drug leased departments in old and new stores of the
variety chains. Ditto with respect to drug leased departments in
old and new stores of the food chains.
In 1962, at least one large drug chain will be accounting for close
to 50 per cent of its total volume through its leased departments!
Other drug chains will, before long, find themselves in this same
position. Naturally, this has a profound impact on the distribution
programs of suppliers to the chain drug outlet
306 1010 TESTED IDEAS THAT MOVE MERCHANDISE
and perhaps a few beauty aid items. In 1962, there was a definite
increase in this type of drug outlet.
8. Some drug outlets are experimenting with coin-operated soda
fountains and coin-operated luncheonettes. The drug outlet may
become a leader in the "automatic restaurant." The drug chain may
also move into other forms of automatic vending—for example, two
Walgreen drug stores were, early in 1962, testing coin-operated food
vendors located outside the store. One machine sells bread, cookies,
crackers, and potato chips. The other sells milk, eggs, bacon, and
butter.
9. The independent druggist is moving toward the voluntary chain
or cooperative chain concept. This is inevitable. Just as the food
outlet independent survived by turning to the voluntary chain and
co-op chain concept, so will the independent druggist develop this
form of chain operation in order to meet the competition both of
the corporate drug chains and of the other corporate chains that
are opening drug departments or drug stores.
In the food field, the various types of independent chains now
control a larger dollar volume than do the corporate food chains.
That has been reflected in substantial changes in marketing by the
food processor. Similarly, as the independent druggist begins to buy
and to promote jointly, either under the auspices of the drug whole-
saler or in other ways, suppliers to the independent drug outlet will
be faced with substantial changes in their total marketing proce-
dures.
10. Labor unions are becoming a factor in distribution of drugs.
This takes several forms. It includes the operation of drug stores by
labor unions. It also includes special arrangements by a labor union
with a group of drug stores; under these arrangements, members
of the labor union get special price privileges.
American Druggist, reporting on this trend, pointed out that in
a single month, in 1962, the following union developments took
place:
In Portland, Ore., a prescription department was opened in the
Teamsters Medical Center, operated by the local union of the Inter-
national Brotherhood of Teamsters.
In Milwaukee, Wise., the leader of a local AFL-CIO union of gov-
ernment employees said the union would open a "cooperative phar-
macy" soon.
INFANT TRENDS PLAY ADULT ROLES IN MOVING MERCHANDISE 309
ter opened in New York City under sponsorship of the Textile Work-
ers Union of America and textile makers.
11. A very interesting development involves the coming emergence
of the gas station as a competitor of the drug store. The gas station
is destined to become a major retailer of many nonautomotive clas
sifications. The giant refineries are now heading energetically in this
direction in their service stations. As part of this infant trend, the
gas station is putting in racks featuring drugs, cosmetics, toiletries.
By early 1963, in California alone, some hundreds of gas stations
will have these racks—and since test racks are averaging a $300
per month volume the total turnover could, obviously, give the
traditional drug outlet cause for concern. This will take place in the
entire nation—the gas station is destined to become a major outlet
for certain drugs, toiletries, and health and beauty aids.
12. Drug chains are faced with the specific problem of achieving
considerably larger size—quickly. The reason is obvious: the drug
chains now face competition from other mass retailers much larger
than the drug chains. This was underscored when Sears decided to
open drug stores. (This was one of the reasons for the negotiations
between United Whelan and Consolidated Sun Ray.) It is probable
that, through the merger route, several drug chains will double and
triple their size over the next two or three years.
13. Several drug chains are testing in-home selling. These tests are
on a very small scale. However, most mass retailers are experiment
ing with in-home selling, and the drug chain feels compelled to fol
low suit. In much the same way, several drug chains—Thrifty Drug,
home based in Los Angeles, is an example—are testing the catalog
order desk. Whether these infant trends in the drug outlet will ever
grow lustily could be questioned. But they serve to underscore the
willingness of the drug chains to experiment.
14. Another example of this willingness to experiment is the ar
rangements made by Walgreen with Horn & Hardart. Under this
plan, Horn & Hardart will operate a self-service frozen food depart
ment in a Walgreen drug store. Horn & Hardart operates such sec
tions in some food supers—and, since the drug outlet is clearly mov
ing into some food classifications on an expanded scale, this frozen
food experiment is entirely logical. (It is pertinent to note that
Skaggs opened a drug unit in Tulsa that included 3,500 square feet
for food.)
INFANT TRENDS PLAY ADULT ROLES IN MOVING MERCHANDISE 311
formed lay people. But suppose we accept the premise that an auto-
mated machine of this kind could function in connection with only
90 per cent of the prescriptions typically filled by the pharmacist—
as it apparently can do right now at the hospital nursing station.
Isn't it possible that the remaining 10 per cent will be handled in
some way or ways that will also bring down the costs of these minor-
ity prescriptions—for example, by huge central prescription facilities
using assembly line techniques? Once the pharmacist accepted pre-
fabricated prescriptions to the point where less than 10 per cent of
the prescriptions are actually compounded by the pharmacist—the
road was clearly opened for an "automated Rx man." (When an
electronic dispensing device is introduced, the drug manufacturers
will surely put their drugs into packages that the machine can han-
dle.)
17. The current pattern of pharmaceutical distribution—manufac
turer to distributor to retailer—may be in for some changes if the
predictions of Stewart Ruch, marketing vice president of Pitman-
Moore, come about.
Speaking before the central section of the Pharmaceutical Manu-
facturers Association in Chicago, in 1962, Mr. Ruch said that the
invasion of the prescription field by supermarkets, discount houses,
mail-order firms, and other outlets is forcing pharmacists to "de-
mand price bargains from their sources of supply."
"In general terms, this means direct buying from the manufac-
turer, at least on fast-moving lines on which consumer price battles
are being fought. This battle is already under way on those prod-
ucts used for maintenance and chronic-type therapy."
This is an infant trend that could shape up into major marketing
changes.
18. Drug chains are moving into various soft-goods classifications
at an accelerated pace. When Crank's opened a new unit in Wichita,
Kansas, it included a 14,000-square-foot apparel center. The giant
Katz Drug discount units have large soft-goods sections—so do the
new Sears drug stores. This is still an infant trend in the drug out
let, but it shows every indication of growing up, especially in certain
staple soft-goods classifications.
19. Simultaneously, the drug chains and independent drug stores
are developing their volume on big-ticket lines, particularly big-
ticket hard lines. Between 1960 and 1962, big gains were made by
INFANT TRENDS PLAY ADULT ROLES IN MOVING MERCHANDISE 313
the drug outlet in these big ticket classifications. This infant trend
also promises to develop into a major trend. (The new Sears drug-
stores will propel the drug outlet in this direction since these Sears
drug stores will sell big-ticket lines both from floor inventory and
from a catalog order desk.)
20. It is probable that the drug outlet will feel compelled to enter
the rental business. Its competitors have begun to rent various sick
room equipment and the drug chains cannot afford to stand still
under this competition. Once the drug chains begin to rent wheel
chairs, hospital beds, crutches, etc., they will then start to rent other
items entirely removed from the health field.
21. The infant trends involving soft goods, big-ticket lines, rentals,
food, etc., suggest that the drug outlet will, in time, turn toward
greater use of leased department operators for these newer classifi
cations. In the giant Katz stores, the following departments are
leased: gas-automotive, records, electronics, jewelry, sporting goods-
toys, ladies' wear, men's wear, shoes, snack bar, photo studio, cam
eras, credit, insurance, domestics, and candy.
Obviously, this means that some manufacturers will find it neces-
sary to seek drug outlet distribution through various types of leased
department operators, including some types of rack jobbers.
22. Incidentally, it is significant to note that Katz is merchandising
gasoline, oil, tires, batteries, and auto parts and accessories. A few
other drug chains are dipping toes into these classifications. The new
Sears drug stores will not overlook these classifications since this
technique has been a Sears ace for years. This infant trend will also
take this outlet into some of the newer forms of services, such as
coin-operated laundries, etc.
23. At the start of 1962, it was reported that some 526 physicians
owned some 213 pharmacies in California. This trend by doctors
to own drug stores has kicked up quite a fuss. It seems to have
started in California—and has since spread to other states. In some
instances, this trend is tied up with the trend toward medical group
practice. That is, when a group of doctors form a joint clinic, the
group sometimes concludes that a drug store is a logical next step.
Some retail pharmacies are developing a substantial volume by
supplying local industries with complete medical departments. In
addition, some drug outlets are extending what they call "bulk rate
courtesies" to the employees of these plants. In view of the broad
314 1010 TESTED IDEAS THAT MOVE MERCHANDISE
tendency of the general public to conclude that drug prices are too
high, this form of distribution of drug products could assume re-
spectable size in time. If so, it would have to be reflected in drug
manufacturers' marketing programs.
24. Several references have been made to the Sears drug outlets.
Inasmuch as it is entirely likely that the Sears drug stores will set
powerful new trends in the drug outlet, it is logical to study the
Sears drug outlet program in some detail.
In the first place, it is highly significant to note that the Sears
drug store will feature, not only Sears' brands of drugs and vitamins,
but also the brands of many manufacturers—and at "discount"
prices. What Sears does with manufacturers' brands in its own stores
will unquestionably affect the marketing policies of these manufac-
turers because the traditional drug chains will be compelled to meet
Sears' competition.
The first Sears drug unit, which was opened in the spring of 1962
in Fort Worth, Texas, included the following departments and sec-
tions:
Notions
Juvenile furniture
Toys-Hobbies
Records
Hair products
Cameras
Matched outfits, campus slacks
Stationery, greeting cards
Auto polish, laundry supplies
Glassware, kitchen gadgets
Pet supplies
Tobacco
Men's wear, women's wear
Garden supplies, hardware
Shaving cream, laxatives
Sanitary napkins, dental needs
Bath shop
Foot care items
Baby needs
Rubber goods
Prescriptions, vitamins
INFANT TRENDS PLAY ADULT ROLES IN MOVING MERCHANDISE 315
means that these outlets are adding services and frills which the
traditional outlets, in their discount units, will be compelled to
emulate. This means that the margin requirements of the discount
units of the traditional merchants will go up for this reason also.
5. Getting back to the discount chains, it may be expected that, as
the consolidation period emerges, mergers will multiply. The bet
ter store units operated by small, or financially weak discounters
will be taken over by the growing discount giants.
Women's Wear, in a report on the discount situation in Los
Angeles, in April, 1962, stated:
A few tremors being felt in discount territory may be the start of
the long-predicted shakeout here. Some of the weaker, outdated dis-
count houses already are swaying alarmingly, and even a few stronger,
solidly constructed structures are showing some cracks.
This year, it appears, will be a time for some retrenchment in south-
ern California, a period when low-margin operators check their head-
long building rush in order to plaster the cracks, shore up the founda-
tions, and step back to re-examine the blueprints.
Heaviest damage is being suffered by some smaller discount stores
that failed to modernize and diversify.
A number of recent arrivals who went into business with insuf-
ficient capital and poor management are finding themselves in deep
water.
Even well-planned, well-capitalized stores are running into diffi-
culties. A recent management squabble brought out testimony that
Scoa, one of the giants fighting for dominance in discount-thick Co-
vina, lost $62,000 in one month recently.
Trade observers have long contended the first consequence of a
discount shakeout would be for weaker closed-door units to go open
door—which already has occurred in numerous instances here. The
next step, they predicted, would be a whittling down in numbers of
stores in saturated areas, either by acquisition or outright closure.
After the consolidation phase is well along, there will be some dis-
count chains with an annual volume ranging from $500 million to
$1 billion. With that kind of volume, these discount giants will not
have much trouble getting most of the national brands they may
want; they will not have to settle any longer for special brands un-
less they are so minded.
6. What is more, as discount chains become giant retailers, they
320 1010 TESTED IDEAS THAT MOVE MERCHANDISE
too will turn to their own controlled brands. These private brands
of discount outlets were in an infant trend during 1962. It may very
well be that the discount chains will emerge with a larger percent-
age of their volume in private brands than traditional department
stores will be able to duplicate. These private brands will, in many
instances, be supplied to the discount chains by manufacturers of
presold brands.
7. Reference has already been made to accumulating evidence
that the discount chain has begun to depart from its fundamental
policy of concentrating on the fastest-moving numbers. This outlet's
great source of strength lay in its inventory policy of "thick on the
best, to hell with the rest." But that policy is destined to go by the
board. As the discount chains fight to attract ever higher income
groups without losing their lower-income customers, it is inevitable
that they will add new price lines, broaden assortments of models,
colors, styles, sizes, etc. This infant trend shows every indication of
growing up into adulthood—and for many manufacturers this means
that their distribution through this outlet will begin to resemble more
closely the pattern of distribution through traditional outlets.
8. The discount chains are locating increasingly in shopping cen
ters. This is an interesting trend. Just two or three years ago, dis
count outlets were compelled to open stores just outside of shopping
centers because they could not get into the sacred confines of shop
ping centers. But Chain Store Age estimates that, of 900 new chain
discount stores to open in 1962, some 250 will be located in shop
ping centers. Shopping center promoters have concluded that dis
count stores bring traffic to a center, and shopping centers are mul
tiplying so rapidly that traffic is dwindling. Moreover, discount
stores located just outside a center were getting all of the benefit
of the pull of the shopping center without making any contribution
to the center. It became the old, old story; if you can't fight 'em, join
'em. With discount stores in shopping centers, many manufacturers
will be compelled to reappraise their distribution through other out
lets in discount-dominated shopping centers.
9. The membership department store, as a concept, appeared to
have reached its zenith by late 1961. Several sizable closed-door
discount chains began to open their doors in that year. Several more
opened their doors in 1962. This trend will accelerate. However, it
does not mean that all closed door chains will open their doors; not
INFANT TRENDS PLAY ADULT ROLES IN MOVING MERCHANDISE 321
at all. But it does mean that, on balance, closed doors will tend to
open their doors.
Once the closed-door or membership discount chain opens its
doors, its inventory must change. This is due to the fact that the
inventory of a closed-door chain is keyed closely to the specifically
known requirements of its clearly defined customers. Usually its
customers come from a closely knit group and are confined to a nar-
row income range. The inventory is planned accordingly—this was
one of the strengths of this type of discount operation. But once the
doors are open, inventory must be broadened to match the broader
range of customers and, as a consequence, the buying policies of
these chains must change. That automatically is reflected in their
buying arrangements with their suppliers.
10. A change is showing up in the buying policies of some low-
margin chains. The discount chains had dynamic buyers. Open-to-
buy restrictions, typical of traditional mass retailers, were practically
unknown in this outlet. But, starting in 1962, the open-to-buy con-
cept began to win a toehold in the discount chains and this infant
trend, with all of its accompanying problems for manufacturers,
promises to grow. Reporting on this subject, Women's Wear had
the following to say:
Open-to-buy restrictions—plus growing controls—are reportedly
accompanying discount store expansion.
Several discount buyers—in pointing up the situation—are heap-
ing considerable abuse on their merchandise managers or divisional
merchandise managers. In some cases, criticism is leveled at men,
primarily with a conventional retail background, who have been
with the discount stores a relatively short time.
The major area of friction: Merchandisers and buyers are not see-
ing eye-to-eye on buying policy, notably timing of purchases, depth
of stock in certain categories, price lines and closeouts.
A number of discount buyers heatedly insist that the advent of con-
ventional store authority is seriously affecting what heretofore has
been a fluid and flexible open-to-buy. These newly imposed restric-
tions, they charge, are tending to minimize a decided buying advan-
tage over the conventional store with its rigidly controlled purchasing
policy.
Problems with merchandise managers, of course, are old hat to
many conventional store buyers. In the case of discount buyers,
though, many of whom have had a virtually free hand in buying, sud-
322 1010 TESTED IDEAS THAT MOVE MERCHANDISE
den controls and curtailed authority are new and disturbing expe-
riences.
Such action at discount houses has long been predicted by con-
ventional store merchants. With the added burdens of more stores
and broader merchandise lines, discount owners can no longer con-
tinue to do most of the buying and merchandising themselves with
the help of a few buyers, it is pointed out.
As a matter of fact, some discount chains have begun to install
fairly elaborate systems of unit control which had been rather rare
in this outlet.
11. The discount outlet is making faster progress with gas stations,
with tires, batteries, and auto accessories than any other outlet,
with the exception of Sears. It is also making rapid progress with
such entertainment services as bowling alleys and skating rinks.
And it is probably leading most other retailers in the installation of
coin-operated laundries, etc. Some discount outlets are offering
travel services, insurance services, even mutual fund investment
services. Indeed, several discount chains are offering services as
price leaders—a car wash, for example, for 59<f.
The discount outlet, originally, did not go in strongly for loss
leaders. There is now a definite trend in this direction. Coffee at 9#
a pound is a fairly typical loss-leader event. These loss-leader pro-
motions will multiply as this outlet fights to maintain its vitally nec-
essary traffic count.
In summary—the great wave of discount retailing is destined to
top out. As its tide ebbs, it will go through new trends at an ex-
tremely fast pace in a fierce effort not merely to stem the ebbing
tide, but to reverse it and to achieve new high-water marks. As it
works out new ideas involving its "image"—new ideas involving the
proper mix of soft goods and hard goods, the proper mix between
staple, semifashion, and fashion merchandise, the proper breadth
as well as traditional depth of assortments—as it tries out new in-
between price lines, as it trades up, as it adds new merchandise
classifications and new service departments, as it works toward its
destiny as a new type of department store—it will give innumerable
manufacturers innumerable headaches, and innumerable new op-
portunities.
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