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Playing Safe – It’s Unsafe in Today’s Retail World
Author: John Stanley
It is 2005 and retailing is as dynamic as ever. We are seeing some major changes in the retail industry, which is making the industry more dynamic than we have seen for a number of years.

The big “box” stores have become a firm part of the retail landscape, although there are still major growth opportunities for them in some regions, such as the Middle East. But overall they are a part of most consumers’ lives. They had a major impact on the independent retailers and the result is that many of the independents have simply disappeared. However, the survivors are starting to make an impact again in the retail environment.

What have the survivors learnt?
Surviving independent retailers have discovered that playing safe is the worst thing they can do. Playing safe means doing the same thing as last year with the hope they will be just as successful. In today’s retail jungle, playing safe is a recipe for failure. Successful retailers realise that they have to play unsafe to gain market share. Taking risks is part of their everyday strategy and an acceptance that all risks will not be a success is also part of that strategy. To illustrate where I am coming from lets look at some unsafe businesses.

Mid Ulster lead the way
Mid Ulster Garden Centre in Northern Ireland, had a indoor houseplant department like those you will see in many parts of the world. Jim Bradley, the owner, had started to consider house plants a waste of time, since it was not bringing in the return per square yard/metre he was expecting from his profitable business. It was time to play unsafe or get out of the category. Along with Jim, we analysed what the category was all about, safe thinking said “indoor plants”. Unsafe thinking said he was in “living gifts, living art and living rooms”.
This meant rethinking the whole category and playing unsafe, by re-merchandising the whole area. This included introducing fashion statements, table lamps and gifts. Safe thinkers may be concerned about how plants would be watered, but when you play unsafe you start thinking about ways to overcome such perceived problems.

The key to playing unsafe is to measure what is happening. In year to year figures, sales at Mid Ulster have increased by 265%, whilst customer sales have increased by 212% over the same period against the previous year. If you analyse specific product groups within the category, ceramic pot sales have increased by 730% and are now 18% of category sales. Indoor plant feeds have increased by 56% and are now 3.5% of the category. Plant shrinkage is now less than 1% of sales. According to Jim, it pays to play unsafe.

The Richer Way
The key to playing unsafe is to look at the best of the best at the game. For me, Richer Sounds, in the U.K. must be the leaders to watch. They have been in the Guinness Book of Records for the last nine years as the world’s top performing stores, based on sales per square foot. They believe the key to success is based, not on the product, but on the team initiative. Consider these unsafe practices and ask yourself if they would work in your business.

1.If a customer writes a complimentary letter to the business on your customer service they receive a £5 note from the business.

2.If a team member gives up smoking, the business would give them £200.

3.If a team member goes on holiday and writes a report on how Richer Sounds can improve it’s customer service, and this is implemented, the company will pay half the airfare.

4.Team members can use Julian Richer’s holiday home for free. At the end of the vacation they are asked to send £10 to head office to go to charity.

The list goes on, but the aim is to empower the team to be unsafe. Remember, this business is the most profitable at what it does and customers have to pass ‘box’ stores who sell the same product to get to a “Richer Sounds” store.

Playing unsafe is something that any size business can do. Georgina Mason, has a small Farmers Market in Nottinghamshire, U.K. She makes 39% gross profit on sausages - her sausage sampling increased sales by 100%.

Brainstorm
The key to success is to brainstorm with your team ways to become unsafe. What can you do that is risk taking? It will ensure you stand out from the crowd and you’ll get noticed by consumers.

Lloyd George, the British politician, was well known for being a non conformist. One of his many favourite quotes was; “Don’t be afraid to take a big step. You can’t cross a chasm in two small jumps.”

In today’s retailing to be a winner, you have to play unsafe; you have to take big steps.

About the Author

John Stanley is a conference speaker and retail consultant with over 20 years experience in 15 countries. John Stanley Associates produce an e-newsletter specific to retailing, this includes innovative ideas and advice to help you grow your profits. If you would like to receive a regular copy please visit www.johnstanley.cc or email us on newsletter@johnstanley.cc.

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