3 The Holy Grail – Active Retailing To know exactly what each shopper wants, or may buy, as they come through the front door. To deliver that to them right away, accepting their cash quickly and speeding them on their way.
14 Rank of Single Items Contribution of Single Items to Total Sales The L - O - N - G Tail 500 out of 32,000 items contribute 25% of total store sales The BIG Head Item Share (Count) for the Total Store
15 Focus on the Few Products... Think About Those few Items, NOT Categories... that Sell the Best! (The BIG Head) 1,000 SKUs # By Count $ By Dollars
16 Item Management... “ Well, we have never been a category company – that was decided long before I came... We look at it item by item. That doesn’t mean we don’t have a fair representation with a category. But usually it’s only the top five or six items in that category, and we look at them as items ”... $1 million per day in their top store! Charlie Burnett, COSTCO
17 Focus on the Few Products...... that Sell the Best! (The BIG Head) 300 items dominate total store sales. 30 items dominate total category sales 3 items dominate total brand sales Typical household buys only 300 – 400 items per year! Half of those, 150 – 200, they buy regularly. Sell them what they are buying.
18 Item Management... “ So our traffic is up, our sales are up. We’re in the 3% range right now over last year ”... March 2010, Drug Store News Charlie Burnett, COSTCO
26 Personal Selling Fundamentals Determine what people want Narrow their choices to a manageable few Make the process easy Upsell them on related items Close as quickly as possible
27 Herb Sorensen email: firstname.lastname@example.org@tns-global.com Stay in touch with our cutting edge retail and brand supplier research program and commentary www.insidethemindoftheshopper.co m Read the Views (and subscribe! ) Read my RetailWire blog! Buy the book! Receive notices on Twitter!