There’s no doubt that the US is in recession, but as with the different retailers and manufacturers so too with each individual state.
California and New York are doing it tough, evidenced by closed stores in malls, but in Texas and Arkansas, retailers, restaurants and car dealerships are riding the tough times well.
Why? Innovation, creating confidence, a strong culture and a long term view. These are the themes of my week to date in the US.
Arriving in LA last weekend it was evident that the city of high hopes is hurting. Many stores, large and small, are closing their doors, and those that remain are deathly quiet. A short flight away in Dallas though, things are very different. Stores are busy if not buzzing, and most retailers are reporting a downturn but not a drastic falling off in footfall.
Things are good in Texas, with many new arrivals coming in from the west and north east, where job cuts are biting.
The Hyundai dealership is a beacon of confidence, as is the JoS A Bank men’s clothing store. Both are taking the fear out of spending. Remember, 92% of the population is still working, but many are worried about committing to spending and then losing their job.
The solution? Offer a guaranteed buy-back of the suit or car that you buy if you lose your job in the next 12 months. This is inspired innovation, that taps right into the fear of purchasing – and allaying that fear means making sales.
On to Bentonville, Arkansas, the home of Wal-Mart and a chance to see and hear first hand what makes this company so successful. The new store layouts, branded Walmart (without the hyphen and with new blue and orange colour fields) supports the message: “Save money and live better.”
Clear lines of sight over low rise units with bright lights and big single dollar price points really works. Bright co-branded shelf-ready packaging, interactive in-store media, supported by the highest quality in store events, makes the shopping experience very different to the old Wal-Mart with a hyphen. New shoppers are trying the new stores, liking the experience and coming back. The why is obvious to me when I’m there.
But the highlight of this week in my retail roadshow was meeting a senior Walmart executive with responsibility for over 700,000 staff around the world. It was a chance to better understand the people and culture behind this hugely successful retailer; one that has innovated every four or five years, often cannibalising itself in the short term in order to grow in the long term.
This humility of the executives, a genuine desire to improve the lives of Walmart customers, employees and suppliers was amazing. What was even more amazing was his – and Walmart’s – recognition of their responsibility, as the world’s largest company, to support both the environment and the everyday people living in many of the developing countries where Walmart operates. This commitment wasn’t just words, it was supported by belief and actions.
In terms of environment, Walmart is working with manufacturers to create less packaging waste. And community wise, it’s providing jobs training and support of government initiatives for people in worldwide communities where Walmart operates. It’s a brand to aspire to.
Next week I am off to attend the NARMS (National Association of Retail Marketing Services) conference in Colorado Springs. This is the largest retailers, manufacturers and retail marketers conference in the US, and it will be a chance to see from the inside how retailers and manufacturers are facing up to the challenges of 2009.
Food for thought when translated to Australia’s retail market.
In his role as CEO of CROSSMARK, Kevin Moore looks at the world of retailing from grocery to pharmacy, bottle shops to car dealers, corner store to department stores. In this insightful blog, Kevin covers retail news, ideas, companies and emerging opportunities in Australia, NZ, the US and Europe. His international career in sales and marketing has seen him responsible for business in over 40 countries, which has earned him grey hair and a wealth of expertise in international retailers and brands. CROSSMARK Asia Pacific is Australasia’s largest provider of retail marketing services, consulting to and servicing some of Australasia’s biggest retailers and manufacturers.
Click here for more Retail Trends blogs.
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
Comments