For the last couple of years, there have been many articles about the ultimate demise of brick & mortar. Repeatedly, article after article would make the claim that everyone would only shop online. Well, behold! Retail stores are making a big comeback!
 
As we examine brick & mortar today, It would seem that all the buzz about how retail stores are doomed has turned out to be just what it was: buzz, untrue, inaccurate and nothing more than a bunch of rubbish brought on by those driving technology and e-commerce sites.
 
For the past few years, these authors have been able to get away with posting opinion as fact. But now we can have a closer look and judge for ourselves if brick & mortar is here to stay. 
 
LET’S TAKE A LOOK AT THE FACTS!
For starters, many retailers that posted 2nd quarter results have seen their best quarter in quite some time. Leading with outstanding news is Target. CEO Brian Cornell stated that for the second consecutive quarter, traffic growth is better than we’ve seen in well over ten years, driving 6.5 percent comp growth. Other chains are also witnessing welcomed increases in same-store sales were Best Buy, Lululemon, TJX, Home Depot, Kohl’s, Williams-Sonoma, Lowe’s, DSW, DXL, Walmart and the list goes on.
 
This is not a fluke. It starts with the fact that our economy is booming and for the first time in years, consumers are feeling confident with more money in their pocket. In fact, consumer confidence has increased to the highest level we’ve seen in 18 years. The bottom line: people are getting back to one of their favorite pastimes, which is shopping, and yes they are shopping in malls and stores.
 
Why? Because stores have the one advantage the internet does not and that is the opportunity to see the item in real life. You can touch it, feel it, try it and make sure it’s what you want before you buy it. And there is no better opportunity for browsing, which leads to impulse buying, a great win for retailers and one not easily provided online.
 
FOOT TRAFFIC IS UP TOO
A study recently reported by GroundTruth stated the Q2 foot traffic was up overall from Q1 particularly with Home Improvement, Malls and Off-Price Apparel leading the charge.  However, as customers come back to the malls, no doubt other retailers will benefit as well.  Macy’s along with Marshall’s and Old Navy have all experienced increases in traffic, no doubt why those companies posted strong 2nd Quarter comp store sales as well.
 
It is true that internet sales will continue to grow as well as overall spending increases, but there is a lot to be said for the desired trip to the store or mall. Now that consumers are feeling better about their wealth and our economy, expect to see traffic continue to increase, which is excellent news for all brick and mortar retailers.
 
SO, WHAT ABOUT ALL THE STORES CLOSING?
It’s a fact that there are many stores closing, but that has always been the case. Stores come and go for a variety of reasons. It is not uncommon that consumer desires can change, locations can lose their edge, and yes, retailers do go out of business. However, even though there is the expected closure of 8,828 stores in 2018, there is also the commitment of opening 12,663 new stores this year.  That’s a brick and mortar gain of 3,835 locations! Why? Because retailers and investors are seeing the proof of promising brick & mortar sales growth caused by the fact that "consumers are getting back to shopping!"
 
In addition, many malls are being renovated, built, expanded and more malls are opening. The newest focus is to make them more elaborate with a variety of “experiences” customers will enjoy. We often hear how history repeats itself. Back in the 80s, we had our last mall boom when for the first time, malls were enclosed, many with food courts and even others featuring movie theaters, arcades and rides for children. That boom lasted 20 years. Today, these new “experience” malls will focus on different types of attractions customers can appreciate, ranging from health spas to various forms of entertainment and phenomenal restaurants. One such mall, scheduled to open May 2019 complete with an indoor ski slope, is the American Dream Meadowlands mall consisting of 4.8 million square feet, making it only slightly smaller than The Mall of America. Also, there is another American Dream Mall planned for Miami Florida that will be the largest mall in the country with over 6 million square feet. 
 
WHAT ABOUT ALL THE NEW BRICK & MORTAR PLAYERS?
It seems that every day we are reading about another first-time venture into brick & mortar from manufacturers wanting to deal directly with customers to all types of e-tailers.
 
The list continues to grow from companies like Amazon along with Bool & Branch, Allbirds, Everlane, Harry’s, and Untuckit.  Moreover, some of these companies who one time were only interested in being an online retailer are being very aggressive with their store openings such as Amazon planning to open 3000 more Amazon Go stores and Warby Parker looking to have 100 stores within the year as well as Casper looking at double that amount with over 200 locations.
 
If brick & mortar was doomed as we were to once believe, would it make sense for all these companies and investors to be syncing big dollars into physical locations? Absolutely not.
 
 AND HAVE YOU SEEN ALL THE POP-UPS?
Not only do we see an increase in physical stores, but the newest player in the world of brick & mortar is the “pop-up.” Pop-up stores have been around a long time, but in the past, they were independently-owned businesses usually with a small kiosk operation in a mall, train station, airport or on a busy city sidewalk. 
 
Many retailer players are experimenting with pop-ups which are less expensive to open and operate. It gives the retailers an opportunity to test product, concepts and to gain additional awareness of their brand for a fraction of the cost of opening a physical store and with a lot less risk should it prove to be unsuccessful. The pop-up industry has already reached over 10 billion in sales featuring such retail players as Party City, Hudson Bay, Macy’s and Amazon. Moreover, along with the pop-up rage, there is also the social media tie-in as many of these retail players are using Instagram to promote their pop-up and its merchandise. 
 
Furthermore, many e-commerce players are also entering the pop-up world with such players as Ainsel, Goop, Brandless and many more.
 
Lastly, pop-ups are also appearing inside bigger stores, creating the “store-within-a-store” concept.  This type of brick & mortar location is proving to be very successful for retailers like Best Buy, J C Penny and Nordstrom.  For example, Sephora has added numerous locations to their store count list simply with their store-within-a-store partnership with J C Penny. 
 
 STILL NEED MORE PROOF?
 Well, let’s take a look at some sales numbers. It is true that online retail sales during the holidays last year rose 14.7%, which is excellent news for e-commerce and certainly needs to be recognized. 
 
However, the majority of holidays sales still took place in stores. According to a report presented in RetailDive.com, nearly 85% of all holiday sales last year were made in brick & mortar stores with only slightly less than 15% taking place online! Moreover, for the year, the percentage for brick & mortar versus online sales was even higher at 86% for brick & mortar and 14% for all online sales.
 
There is no doubt that technology will continue to introduce new methods for shopping and more conveniences. As that happens, more and more shoppers will shop either on their computers, tablets or mobile phones. However, it will be centuries if ever before we no longer have consumers who enjoy going to a store. The experience will change, the merchandise will change and how we purchase items will change all because of technology. Today we are looking at everything from custom fitting clothes made while you wait to smaller stores with items only for the customer to see, buy not take the item. Yet by the time they get home, their purchase will be waiting for them. Delivery is the future even for brick & mortar stores and we are seeing faster and different methods of delivery taking place almost every day.
 
Even with the internet and fast home delivery, the one thing you cannot replace is the excitement and fun one can experience when visiting a store or mall. Most importantly, as long as retailers remember to keep their stores staffed with well-trained employees, their opportunities for business will continue to grow, especially now with our booming economy.  Add to that the perfect website that treats the in-store shopper and online shopper as the same customer, and you’ll have a win-win.
 
The internet is here to stay but so is brick & mortar!
 
Art Suriano
asuriano@thetsicompany.com
201-841-1090

In 1941, Packard introduced hydraulic window lifts, better known today as power windows. It took nearly 70 years before manufacturers stopped offering customers crank down windows. The point is simple: technology takes time. One has to see how the public responds and manufacturers need time to make improvements and adjustments before making something standard.

Today, it doesn’t seem as if retailers are taking the time to see if the technology they are investing in is going to be right for their business and most importantly, if customers even want it. Instead, they are chasing after new and unproven technology, much of which is still on the drawing board or not perfected. Rather than listening to their customers, retailers are looking to the tech companies. Moreover, they are using survey data provided not from their customers but from the very companies who sell the technology, and there is no doubt that data is often compromised.

With the billions of dollars that retailers are forking over to tech companies, the fact is that when shopping in most stores today, not much has changed. Moreover, because of how many retailers are sacrificing needed in-store investments in favor of unproven technology, the only sure outcome is they are losing customers and most importantly, they are losing sales.

Inaccurate Technology Research
Article after article shows high percentages of customers who are screaming for technology in-store and how they refuse to shop without it. According to Deloitte, 93 percent of consumers use their phone while shopping. The problem with that statistic is it implies that customers use their phones for shopping when in reality, they are not.

Walk into any mall or store and look at customers. Many shoppers are holding their phones, some are texting, some are emailing, and some are engaged in a phone conversation, but almost none of them are using their phones to check out competitors’ ads, prices or products. Moreover, for the small percent that may use their phone for a comparison elsewhere, it’s more common for big ticket items and not a pair of jeans or sneakers. Too many retailers are spending significant dollars chasing after technology, a lot of which is still in development in hopes that when implemented customers will flock to their stores thinking that is what the customer wants. Mobile pay is okay and having coupons, rewards and other promotional offers on your phone is a plus, but the idea that the purchase process will only take place when the customer can do everything on their phone while in the store is absurd and too many retailers are falling for the trap.

Lost Opportunities
These investments in unproven technology are coming at a significant cost. Most stores today are not providing the “experience” the customer wants, and that is costing sales. Walk into the retail chains that have been around forever like Jo- Ann Fabrics, Michaels, Kohl’s, J C Penny, Best Buy, Macy's, American Eagle Outfitters, Aeropostale or Express, Books-A-Million or The Paper Store and ask yourself, “what is different today than a few years ago?” The answer: not much, if anything.

The store designs have not changed much. No blaring technology has taken over. The most significant change regarding technology in most cases is probably an updated POS system. We still see associates doing physical tasks; there are still paper signs, (sometimes handwritten) most stores are still playing music and the overall experience is no different from what it was a few years ago good or bad. So, what’s all the buzz?

Technology is Expensive
Read about how many retailers are investing considerable dollars in the development of the latest technology that is supposedly going to revolutionize the retail industry. From AI to robotics, there is something new almost every day. Recently, Kroger was in the news for partnering with Nuro to design and build a self-driving vehicle to deliver groceries. Can you imagine how much that costs? We haven’t even mastered self-driving cars, and it will be years, many years before we do. Then those manufacturers will have to pass all the requirements for 50 states and all local municipality approval. Kroger hasn’t invested any money into the project as of yet, but Nuro is planning to test the vehicle soon and no doubt even if money isn’t involved, Kroger’s time and some human resources will be. Shouldn’t those dollars go into creating a better in-store experience? Wouldn’t that do more for sales? Read Kroger customer reviews, and you would have to agree.

Retailers Today Forgot About Effective Branding
While today’s retailer is chasing after technology, they have also lost sight of who they are and what makes them unique. Effective branding would attract customers and create the desire for them to shop. For example, walk into any mall and imagine taking the store signs off the entrances of apparel stores. If you did, could you tell them apart? There is too much “me too” today with retailers chasing the competition with a “me too” mentality. However, have no fear, because tech companies have done such a great sales job they’re convincing retailers they’ll solve that problem too with analytics and personalization. Well if the customer isn’t interested in what you’re selling, all the data in the world isn’t going to change that.

Brick & mortar retailers today have tremendous opportunities to compete with e- commerce businesses. Buy online and pick-up in the store is becoming very popular for many retailers and it is smart because it gets the customer in the store. However, many retailers fall short because when the customer comes into the store to pick up the item, the retailer has nothing in place to entice the customer to pursue unique offers that would lead to more sales. In fact, too often the picking up process is too tedious because the manager of the store forgot to have someone covering the Customer Service/Pick-Up Orders station and the customer has to walk around looking for someone to help them.

Focus
Retailers today need to take a step back and look at the big picture. First, stores are not going away so don’t abandon the needs of yours. One can easily see proof of this when looking at all the e-commerce retailers opening stores. Why? Because almost 90% of all retail sales today are still made in-store! Second, the brick and mortar experience should be driven by the human experience. E- commerce companies cannot have humans interact with customers, but retail stores can with well-trained store level associates. Invest in staff and training and watch how sales increase. Third, figure out what makes your brand unique and promote it. Stop chasing after everyone else and let them be the one chasing you. Look at the success of companies like Apple, Starbucks, Wegman’s and currently Best Buy who have built a brand that customers respond to positively and frequently. Regardless of what you sell, find your niche and focus on it. Make sure you push your brand everywhere you promote your business including your website, ads, and in-store marketing. Become a brand that customers can and will identify with and eagerly give you their business.

The Sales Are Waiting For You
Think twice before you sacrifice the needed funds for your stores to chase after some unproven technology. Ask yourself, “Do I want more sales, or would I rather lose business developing something I may never use?” The answer is pretty simple, but retailers need to act now. Our economy has shown substantial improvement these last couple of years and each day it is getting stronger. Store and mall traffic is also beginning to show some signs of growth depending on the store, mall, and location. Invest in the stores you have and don’t be left behind because you put money in the wrong place.

Now is the time to act and lead before your competitors do.

Art Suriano
CEO

 Many retailers are continuing to close stores, filing for chapter 11 or worst yet, going out of business. The reasons vary, but most commonly is there is too much debt brought on from either too many under-performing stores or too aggressive loan terms when going private. The Internet, namely Amazon, has taken a big chunk out of sales, fewer people shop in-store and younger people don't buy as much as the older generations did. However, with all that said, the most significant problem of stores losing sales remains with retailers not addressing the needs of today while too many of them are chasing after unproven and possibly not a necessary technology of tomorrow.
 
FACTS
In today's retail environment according to a recent report by Axonify, 32% of retail employees say they do not receive any formal training, which is higher than any other industry surveyed!  According to Retail Dive, most retail employees receive no real training. Does that make sense? How many sales do retailers lose because the customer who has taken the time to come into the store has a bad experience with an untrained store associate and leaves unhappy, without making the purchase? Most retailers talk a good game about how vital, adequate training is, and yet many of them only provide at best 10 hours of training time. In fact, in many retail environments where the staff is very thin, it's no surprise when the new hire is on the floor the first day because the store has no coverage. How unfortunate is it when we hear that standard line coming from an embarrassed employee who when asked a question they cannot answer responds with, "I'm sorry I don't know, today's my first day?" We've all had that happen, and although we may feel bad for the untrained associate, we are never happy with the store for putting that person and the customer in an unfortunate position.
 
Yet, rather than invest in a few dollars for hiring more staff and most importantly providing effective training, each day, we read about another retailer investing in some unproven technology that will one day do amazing things. That may be ideal for their business but what about the customer? Will all the AI technology create the positive in-store experience or aren't humans capable of that as well? Don't get me wrong, I love technology, and I find myself very excited when trying out new devices, software, and services that make my life easier.  I enjoy them even more when I have downtime to play with them. But until we can build an android-like Data from Star Trek, which is many years from now, most of the technology that retailers invest in today will fall short of its expectations. The result is that retailers will continue to lose more customers and more sales from poor store performance.
 
COMMON SENSE
Ask yourself this question: why does a customer go to a store? Usually to find or buy something. Yes, they could be browsing, or they could be looking for the item to see it in real life with the intention of going home and buying it elsewhere, or they could be looking for the item for purchase immediately in the store. So, let’s address each possibility and how technology is not the solution.
 
The customer enters the store just to browse. First, the customer received no acknowledgment from store associates who are either engaged in tasks or personal conversations, which is common when there is no training that explains why associates need to engage customers. The customer walks around the store and leaves without making a purchase. That's what we expect. Now, the same situation happens with a well-trained associate. In this scenario soon after the customer was looking for an item, the associate greets and welcomes the customer to the store.  They get into a conversation about the item the customer was looking at, the associate answers a few questions and shows the customer some competitors’ products with different features. Suddenly, the browser decides to make a purchase and is now a buyer. How is technology going to do that?
 
The second possibility is the customer interested in seeing the item before going home and buying it online. The customer finds the item, reviews the product features and the price confirming it's a few dollars less on Amazon and leaves. Now, what if in the same situation while looking at the item, the customer is approached by a friendly well-trained associate, and they begin a conversation about the item. The associate knows the item is being sold for a few dollars less on Amazon and tells the customer, "You may have seen this on Amazon for a few dollars less." Of course the customer, who is slightly embarrassed, doesn't admit it. But the associate knowing that the model sold on Amazon, that although looks identical to the one in-store, has somewhat less quality and she points out the differences of a few extra features the Amazon model does not have. Now the associate has the customer thinking, and soon she realizes that she would rather have the additional features and decides to purchase the item at that moment in the store. How is technology going to do that?
 
Then, of course, the most common scenario is the customer comes into the store to buy an item. If left completely alone and the customer finds what they are looking for, there is a good chance they will make the purchase. Of course, if they can't find the item or anyone to assist them, they will leave. But what if the well-trained associate greets and engages the customer?  Now we have all kinds of upselling possibilities where the associate recommends more or other items after the associate learns more about the customer's needs. And in both cases, there is the opportunity to add on to the sale with accessories to further help the customer with their needs. And lastly, of course, is having a chance to share something unrelated to the customer such as new items or a current in-store promotion leading to an even higher sales purchase. How is technology going to do that?
 
THE TREND
There is nothing wrong in investing in technology especially if has proven value to your business. But retailers who have more competition than ever today can't afford to abandon some of the basic principles that will always lead to sales, and that starts with having enough associates at the store level and most importantly making sure they are well-trained. I always say, "There is no one or nothing more important than the customer." The customer must come first, and we need to address ALL their needs. Until we have Data, no technology will do that!

Art Suriano
CEO of The TSi Company

Most retailers are faced with the same issues when approaching store level training: time, payroll, scheduling, turnover, and delivery. These concerns make or break effective training.  Time is a big issue, especially if it's online or classroom training and you need to pull the store associate off the floor. Payroll is another problem, mainly when management has only allocated 8 hours of training, but the training programs require 30 hours. And then, of course, there's store associate turnover, which in most retail companies is very high. You're all set to continue training the new hire, but they've already quit.  And lastly the biggest challenge of all…delivery. So, let’s start with delivery.
 
COMMON DELIVERY METHODS OF STORE LEVEL TRAINING
Let's begin with "reading."  First, the trainee will need a quiet place to read. And, if there is a lot to read or the document uses a higher vocabulary level than the trainee's comfort zone, it may not generate much success.  If your delivery method is online, it requires a quiet place most often off the floor. That means the retailer will have to allocate extra payroll dollars for the trainee and make sure they have another associate covering.  Also, the trainee has to remember what he or she watched online before attempting to transfer those skills to the job.  As a result, online training can be challenging for trainees to learn and retain the skills they need. 
 
Another method of delivery is live training that is usually conducted by a professional trainer.  However, it can be difficult to coordinate times for the trainer and the part-time associate or group of associates to receive the training. There are times when those needing the training do not receive it due to the difficulty of scheduling part-timers.
 
Next, there's peer level training. Why shouldn't a skilled worker or manager be able to teach the trainee what they need to learn, right? Well, for starters, just because a person has the skill it doesn't necessarily make them a good teacher. Some employees assigned to train another employee may rush through the training, cut corners or not take enough time to make sure the trainee is learning what he or she should. 
 
We all do things differently. Workers who have become skilled at their job tend to have found shortcuts, workarounds and often, different ways of doing something that they feel are better than the company method. It's natural, and we are all guilty of this flaw. However, when the skilled worker shares "their way" with the trainee, the result quickly becomes store level inconsistency, something that is not good for business.
 
So, if every common method of delivery has challenges, what can a retailer provide that is effective?
 
LTRAINING® IS BORN
A few years ago, a retail executive who was frustrated and searching for the best way to train part-time store associates challenged my firm. That was when LTraining® was born. LTraining® was created specifically for the part-time store-level associate, for the retailer with little or no payroll for training and for the company who needed immediate results.
 
Leaning on my many years of music teaching, I realized that people learn best by doing. You don't learn to play guitar from watching a video, reading a book, or taking an online course; you learn to play guitar by holding the instrument, the pick, feeling the strings, frets, and slowly learning the notes and the chords. Then with lots of practice, you master playing the guitar. How could I use a music instructional method for training store level associates?
 
Thinking about how to deliver the in-store training, it became clear that if the goal was to train part-time employees, the training had to be self-paced and self-contained, so the trainee could learn at their own pace. As I continued thinking of all the issues, the light bulb went off; the trainee had to train in their working environment! The training would take place during business hours so there would never be an issue of payroll and the trainee would have to able to assist customers in between the training so there would be no risk of losing sales. 
 
LTRAINING® MAKES ITS DEBUT
Our first client was Barnes & Noble, and we introduced product knowledge programs like "How To Sell Children's Books" and "How To Sell Computer Books." Immediately, the custom-produced training modules were exceptionally well received, but we wanted to take it further.  Barnes & Noble preferred having the trainees sit in the comfortable chairs and listen to the program, but I wanted them on the floor in the specific area touching and feeling the books so that the trainees would be more familiar with them, where they were and would know what to recommend to their customers. Luckily, I found an ally at a growing retail chain at the time, Linens' N Things.  Back in 1999, Linens 'N Things loved the idea of LTraining® and allowed The TSi Company to experiment. Our first program was a product training program for Pillow & Pads featuring their private label brand. We piloted three LTraining® programs in 30 stores. 
 
The program had associates training in the pillows and pads department, taking items off the shelf, feeling the differences between textures, and reading the packaging to understand the features and benefits. Most importantly, trainees learned how to engage and share the information with customers. The results were overwhelming. Within 30 days of rolling the training out to the "test" stores, those Linens 'N Things locations saw a sales increase with pillows & pads of nearly 30%! This led to two things: 1) rolling out the training to all the stores and 2) a long-lasting relationship with Linens 'N Things until a private equity firm purchased them with The TSi Company producing and delivering over 30 training modules a year.
 
During our time together, The TSi Company experimented with other uses for LTraining®. Soon in addition to product training, LTraining® became the perfect tool for systems training. Now trainees were learning the POS terminals and RF Gun technology through headset based LTraining® custom produced modules. LTraining® provided new hires the opportunity to do the functions for themselves, and by the time they completed the training, the associate was running the system. Typically, store systems were taught with a buddy and often there would be scheduling issues. Also, the training that took place because of the "buddy" system and trainee talking, along with other job interruptions, took a lot longer than LTraining®. LTraining® reduced the company's standard training time by as much as 70%. Our methodology was now saving the company money! Soon, new hires used LTraining® programs for a store tour, orientation training; even customer service all successfully.
 
LTRAINING® RECEIVES A PATENT
In 2008, we received a patent from the US Patent Office making LTraining® to date the only training methodology ever to obtain a US Patent. Through the years, some of the biggest names in retail like Kohl's, Petco, HomeGoods, DXL, Raymour & Flanigan, Wakefern and more have used LTraining®.
 
BENEFITS OF USING LTRAINING®
LTraining® always achieves success. Today more than ever, retailers recognize LTraining® as the best method to train their store associates, especially the part-timers. Retailers are pleased that there is no need for additional payroll or a buddy and they can simply schedule the training the same way they schedule a task. Moreover, having store associates train on the sales floor during business hours is practical and highly effective. And, because LTraining® allows trainees to pause the training when needing to assist customers, there is no risk of losing sales. Lastly, because of the combination of audio, visual, tactile and kinesthetic learning styles in one program, trainees learn by doing, achieving retention of up to 90% after a single session.
 
LTRAINING® GETS RESULTS
LTraining® has helped retailers see up to 30% increases in product sales, 10 - 15% increase in comp store sales, 6-7% increases in conversion and significant improvements in customer satisfaction scores. Today delivered in an easy to use mp3 format, LTraining® provides complete mobility on the sales floor with custom programs produced for virtually any topic or need.
 
With so many clients through the years using and benefiting from LTraining® it has become a must-have for any retailer.
 
For more information:
www.thetsicompany.com
info@thetsicompany.com
(201) 833-8400

There have been many articles written about the doom and gloom of brick & mortar and these reports mean everyone is shopping online. Well, it’s not true! Read on to find out the facts and judge for yourself what is taking place in retail stores today. In fact, the situation is only getting better.

1) The Improving Economy
Since January, we have seen a steady increase in consumer confidence, job growth, and low unemployment. Consumer confidence is now the highest it has been in almost 17 years, and unemployment is the lowest it has been in sixteen years. Moreover, we have just had two consecutive quarters of 3% GDP growth something again we have not seen in many years.
To date, retail has seen a 4.4% increase in sales since September 2016. In fact, there are retail chains that are posting comp store sale increases. Here are just a few that posted a second-quarter comp store sales increase:

Ace Hardware: 3.2%
Ross Stores: 4%
Home Depot: 6.3%
American Eagle: 2%
Ulta: 11.7%

The point is, if these retail chains can see increases in sales, so can others. As the economy continues to get stronger, these numbers will continue to rise with more retail chains in the plus column and not the minus one.

2) The Internet is Not Where Everyone Shops
If we only shopped online then why do we continue to see customers shopping in stores and malls? The traffic is not what it once was, and part of that is due to the internet. But there’s a lot to be said about that. Over the last several years, we had a weak economy that was impacting all retail shopping. Moreover, we have had the most significant amount of competition with more and more retailers getting into each other’s space. All of these factors combined have given retailers less store traffic. It is not just the Internet’s fault. Yet brick & mortar still manages to get the lion’s share of business far beyond the Internet. Internet sales have increased and will continue to rise, but the actual amount of online dollar purchases versus in-store sales isn’t even close. To date, all US online sales totalled $294 billion with anticipated 2018 sales equaling $414 billion. Brick and mortar? $3.9 trillion or about 94% of all retail sales. And for those who do shop online, 55% of those shoppers would prefer to buy from a merchant with a physical store presence over an online-only retailer. Brick & mortar is here to stay.

3) Millennials Do Shop In Stores
While the economy was struggling during the last decade or so, we were led to believe that millennials don’t shop in stores. Well according to a CNBC article, the Northeast region of the U.S. has seen the highest "behavioral shift" between where the young and the old look for deals. In that region, 25% more millennials than baby boomers are visiting multiple stores when out shopping. 71% of millennials are visiting various stores in search of bargains, compared with 57% of baby boomers. And 67% of Generation Z shop in brick & mortar stores most of the time.

And now for the first time, millennials are buying houses. That means they’ll need items for those homes which means they’ll be visiting more stores and making more purchases. As millennials get older and have children, they will need to buy clothes and other items for those children. Sure, they’ll make some of those purchases online, but they will also visit stores to see, touch, and feel--many of the things they need to do before purchasing something, which means brick and mortar will have an opportunity to make more sales.

4) The Opportunities
Let’s take a good look at what is also keeping customers away from purchasing items. Here are some impressive statistics. 65% of consumers when shopping brick & mortar complain that physical stores didn’t personalize their discounts or promotions. That means there’s an opportunity to do more business with an easy fix. And 65% of customers shopping in-store stated that they were annoyed they couldn’t find the product or products they wanted. Lastly, almost as many as 60% of brick & mortar shoppers didn’t appreciate the lack of in-store help from associates.

So, retailers, wake up. Look at these three major problems preventing customers from spending money in your stores. Why drive them away? Just fix the problem, and you’ll be dancing all the way to the bank.

5) You Can Do It
The customers are out there, and they have interest in shopping your stores. Don’t let your competitors get the jump on you and don’t lose out on the opportunities you have. Take a good hard look at your in-store shopping experience. Make sure you have enough staff and focus on giving them the right training they need to do their jobs efficiently. Listen to your employees and let them tell you what your customers want, not the other way around. Most importantly, do everything you can do to truly wow your customers by providing the best customer experience possible. Every customer that comes into your store is an opportunity to make a sale. Never lose sight of that.

It’s true that today the retailer has to work for the sale, unlike the days that merchandise just sold itself. Today, the consumer can check out prices and promotions at competitor choices while shopping your store. Don’t let that happen. See a customer in your store and treat them like they’re the most important person in the world. Don’t pressure them but make them feel wanted and valuable. Soon you’ll be generating more sales than you’ll be able to handle. The opportunity is there, so grab it.

Do everything right, and yes, you will be celebrating! Comp-store sales will be that good!

Art Suriano
CEO, The TSi Company

Every high-level retail executive I talk to is always quick to state how important providing excellent customer service is to the success of their business. In fact, most senior executives claim to have good people at the store level and that they provide good customer service. But do they believe it?
 
If they do, I suggest they either visit their stores in disguise, which many never do, or find a different career.
 
Today I went shopping with a friend who wanted to purchase a washer and dryer for her new townhouse. Her budget was small especially after moving, but she had researched items online and found a few that she was interested in seeing. Our first stop was Lowe’s. Upon arriving at the store, we made our way over to the section to immediately find an excellent selection of washers & dryers that were almost all on sale. We looked around, and my friend found two washers and dryers in her price range and had some questions.
 
Soon we realized there was one important part of the in-store experience missing: there was not one sales associate in the department to help us. There was no one. What made it worse were the two other couples looking for assistance were also waiting. One customer said there was an associate there when she arrived, but the associate left to go to find something. And according to the customer, that was 15 minutes ago. Eventually, the associate returned, and with two other couples ahead of us, I politely asked her if there was anyone else who could help us.  I could not believe her response. “Are you buying or just looking?” I asked myself, "What kind of service is this?"  I told the associate we’re buying if we find what we want.  With that, a sarcastic, “hold on” and then she paged someone.
 
Several minutes went by, and finally, another associate entered the department who was instructed by the associate at the desk to help us. My friend pointed out the two washers & dryers she was interested in and asked a few questions. It was apparent that the associate had no idea and even though he was quite polite, he soon apologized, admitting he was from another department and knew nothing about washers & dryers. So, after all the time we wasted, we were nowhere. Looking back at the desk for the other associate, I noticed two more customers were waiting for the associate who was once again no longer in the department. That was it, and we left.
 
I realize this was only one Lowe's store and you can’t judge a chain of over 2370 stores by one location. But this was a busy store. They were having a sale, and we were there on a Sunday afternoon. Wouldn’t they think to have some staff available to help customers? And yet in a recent article, their CEO, Robert Niblock said he was committed to improving customer service by increasing staff hours. So, is that real or fake Customer Service?
 
 Our next stop was the Sears at the mall because my friend had seen a washer and dryer advertised online. We found the set, and she had questions. That didn’t matter though because the two sales associates engaged in a personal conversation were not about to assist us until they finished. I politely gestured to one of them who acknowledged me, but they were not about to end their conversation. Finally, I walked over to the associates and asked nicely if one of them could help us. This time the person looked at me and said, "Just give me a minute, and I’ll be right over.” Then they went right back to their conversation. Now that I was standing right there, I could hear they were discussing the Mayweather/McGregor fight. Silly me. Surely that conversation was more important than assisting a customer who was interested in making a purchase. Almost ten minutes later, with me periodically looking over and them giving me a nod that they were coming over. At last, one of them walked over to the washer and dryer we were interested in purchasing. 
 
My friend was on a budget and did not want to spend too much money on a washer and dryer.  She had about $800 and while researching online, found a washing machine and dryer on sale for $349 each. Then added the tax and hookup fees, she would be within her budget. The sign said Free Delivery with purchases over $399. 
 
Unfortunately, it turns out many retailers today are doing this. It was Free Delivery with any single purchase of $399 meaning that at least one item had to cost $399 to qualify for the Free Delivery.  Well at first, she wasn’t happy, but the gas dryer was $100 more, so that put her at $449. It was a bit over budget, but she was willing to come up with the difference.  But that didn’t matter. As I read the sign more carefully, it also mandated that the Free Delivery with a purchased item of $399 or more was only good provided the customer use their Sears charge card. So now how is that for good customer service? She didn’t have a Sears card, didn’t want a Sears card, so with that we left. This experience also meant another lost sale at a second retailer all because of Fake Customer Service.
 
It turned out that Home Depot, our third and final stop, did it right (which would explain their recent successful 2nd quarter). My friend still had to meet the minimum cost requirement of an item purchased. This time, the cost was at least $396, but we could pay for it with any method we wanted. Their hookup prices were a little better than Sears as well. But what mattered most was the person in Home Depot who assisted us. This store did not give us Fake Customer Service but instead gave us the real thing. The associate took the time to answer all my friend’s questions and made sure we took care of all the details. Delivery will be in a few days, and we remain hopeful that my friend will get everything Home Depot promised.
 
But Retailers beware. What I noticed today and have been seeing is customers are coming back. I doubt we’ll see customers in droves like in the 80s. Nevertheless, store traffic is improving. Why? For the first time in many years, we saw a 3.1% growth in GDP. Consumer confidence is at an all-time high and unemployment is at an all-time low. So, retailers beware. The way retailers can compete with the internet as well as each other is by wowing their customers with outstanding customer service. Keep playing the game and providing Fake Customer Service and as retail continues to improve, yours will not, and you may very well find yourself out of business!  Fake Customer Service is NOT Real Customer Service!
 
Invest in your stores, invest in your staff and find out what real customer service can do for your business before it’s too late.

Many articles written today focus on the same issues such as the decline in store traffic, the increase in online sales, and how millennials prefer exotic vacations and dining out experiences rather than shopping.  We read how technology is taking over everything and all the opinions claiming that the days of in-store retail shopping will be a thing of the past.
 
What we don’t read enough about are the 62% of shoppers today who prefer to shop in-store rather than online, according to a recent Retail Dive Consumer Survey. http://bit.ly/2m8tMWG And that does not take into account customers who buy online AND in-store. 

So why are so many retail chains doing poorly? The real answer:  they lack common sense. Here are 10 reasons that prove it:

1. How many retailers rather than invest in under-performing stores with remodels and technology just keep opening more stores? Does that make sense?
2. How many retailers continue to cut staff at store level where it is needed most rather than find other ways to reduce expense such as lowering executive compensation? Does that make sense?
3. How many stores have dirty floors and bathrooms with messy aisles along with missing items on the shelves? Does that make sense?
4. How many retail chains don’t provide "effective" training at the store level and even though many methods exist, they rely on managers doing it which either doesn’t happen because of schedules and when it does it causes significant inconsistencies.  Does that make sense?
5. How many retail companies are more interested in buying a competitor regardless of the problems both companies have rather than improve their own business for long term growth? Does that make sense?
6. How many retailers spend millions of dollars on advertising campaigns attempting to get customers in their stores, but when the shopper comes in the store there is no connection at all to the ad campaign and the in-store shopping experience, making the customer feel like they’re shopping at a different company? Does that make sense?
7. How many retailers are more content chasing after competitors with price and product matching rather than focusing on being different and have their rivals trail them?  Does that make sense?
8. How many retailers are interested in selling out to a private equity firm, so the stock holders make a huge, quick profit, knowing most likely their company will go out of business in a few years because of all the debt the acquisition will create? Does that make sense?
9. How many retailers still don’t look at the in-store shopper and the online shopper as the same customer and insist on “in-store only offers” and “online only promotional offers,” frustrating the customer? Does that make sense?
10. How many retailers think that technology will solve all their problems rather than investing in a blended combination of smart technology and well-trained store associates? Does that make sense?

 
The bottom line is that retailers have many opportunities today to increase their store sales.  All it takes is understanding that when you have a customer in your store, you have a chance to make a sale.  Do what it takes, engage and “wow” that customer. Go back to the retail basics which are the product and the price, but most importantly, service. Be different and give that customer the type of attention they deserve.  If you do that, the customer will not only buy from you, but they will also look forward to returning and tell their family and friends about you. It’s just a matter of using common sense!