The John Anghelache Blog

The recession has slashed sales for most major retailers.

According to 24/7 Wall St. three major reasons include…

1. Some retailers like Footlocker are competing with larger retailers. Sales suffer as a result of not having as broad of reach or brand name recognition.

2. Some are competing with too many retailers of the same size. Market saturation occurs.

3. The final reason is poor management.

Here’s a snapshot of what’s happened to sales for several top retailers between 2005 – 2010:

Sears
Drop in sales: -23.5%
2005 sales: $54 billion
2010 sales: $41.3 billion

Dillard’s
Drop in sales: -23.1%
2005 sales: $7.8 billion
2010 sales: $6.0 billion

OfficeMax
Drop in sales: -22.8%
2005 sales: $9.2 billion
2010 sales: $7.1 billion

Office Depot
Drop in sales: -16.8%
2005 sales: $14.3 billion
2010 sales: $11.9 billion

The Home Depot
Drop in sales: -16.6%
2005 sales: $81.5 billion
2010 sales: $68.0 billion

Foot Locker
Drop in sales: -12.3%
2005 sales: $5.7 billion
2010 sales: $5.0 billion

The Gap
Drop in sales: -9.4%
2005 sales: $16 billion
2010 sales: $14.5 billion

J.C. Penney
Drop in sales: -5.9%
2005 sales: $18.8 billion
2010 sales: $17.7 billion

As you can see, COMPETITION seems to be the biggest reason for falling sales. But is it the real reason? Because when you think about it almost every business in every industry has lots of competition. Seems to me that’s just an excuse for poor performance.

In my opinion, the main reasons for falling sales are…

1. They don’t care about individual customers. When’s the last time you got a card from a retailer with a message that was important to you? Never? No kidding! Neither have I. Don’t hold your breath waiting… because… it’ll probably never happen. The big retailers feel “entitled” to your business. They don’t think earning it is important.

2. They don’t make the buying experience fun and exciting. Ever walk into a Home Depot? The one I go to from time to time is like morgue. Finding someone to answer a question takes five trips around the damn warehouse. That’s no fun.

3. The biggest reason is a lack of marketing initiative.

Big retailers rely on “same old” marketing like: boring TV commercials… coupons in the mail (that’s a good one)… and… traffic generated by malls. What they don’t do is segment their lists and market to specific interests based on the buying behavior of their customers.

Consider this: The very best way to sell is to have a specific offer to a specific market segment that solves a specific and immediate problem.

At any one time, retail customers face different issues. For instance, think about all the people buying diapers and baby stuff from Target, Walmart, etc. This buying cycle lasts about 3 years. If retailers wanted to boost sales they could track their customers buying baby goods. And send them specific offers… or… even create some kind of “Baby Stuff Club.”

But the retailers can’t be bothered. Because that would take time, a little ingenuity and someone with an accountable marketing mindset to make the program work.

It’s much easier to rely on dumb corporate commercials, hit-or-miss walk-in traffic and all the other “innovative” marketing approaches they continue to use.

Don’t be like the big retailers.

Discover a few simple ways to make your marketing bring customers in droves to your store or website…

Get my Free Report…

“How To Flood Any Business With Huge Profits”

——————————————————————————
WAIT! Before You Go On… I Want To Send You A
FREE Report That Reveals “5 Secrets That Can Flood
Any Business With Huge Profits!” Click Here…
——————————————————————————

The slow as molasses economy is driving people insane.

A “nut job” out of Utah is offering sportsmen the chance to hunt him alive for $10,000. For $2,000 extra you can hunt him in the nude. (What an offer!)

Mork Encino (reminds me of the show “Mork And Mindy” from way back when starring a young Robin Williams) is an unemployed and desperate 28-year-old who hasn’t had a job in years.

I wonder… is this really the best publicity stunt he can think up.

Encino admits he does not want to be shot in the face. He hopes his attempt at PR will somehow land him a real job.

So let’s talk pulicity for a moment…

As far as I’m concerned, Encino has the beginnings of a good idea. I’d go further and say he’s somewhat of a self-promotion “genius.” I use the term lightly… but… he’s gotten on radio shows and been the talk of the web.

Yet… he’s still jobless!

The problem I see is he does not tie the stunt in with his skills. Which include construction, landscaping and other labor intensive type jobs. Not to mention… as I said above… self-promotion.

He could gather up all the interviews he’s done. All the articles written about him. And then offer his publicity-generating ideas to PR firms across the country. He could write a quick-read report about how he came up with the idea. Then send a package out to all the PR firms he can afford to mail. And follow up with a phone call.

Believe me, this guy has figured out a way to get media exposure.

He just has no clue how to parlay his creative inclination into profits.

But there’s a lesson in this for savvy business owners who need more exposure locally or nationally.

What would you do?

Leave a comment…

Regards,

John Anghelache

P.S. Don’t forget to claim your FREE Report That Reveals “5 Secrets That Can Flood
Any Business With Huge Profits!” Click Here…