Seed Retail Health Check

7/29/2019 Seed Retail Health Check

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What is Your Game Plan?

Hea lth Check

A Self Help Aud it

Spec ifica lly designed for assisting retailers


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CONTENTS

1. Introduc tion

Reta iler Servic es

How to use the Seed Hea lth Check?

2. What Is Your Game Plan?

2.1 Who is your custom er?

2.2 What is your produc t offer?

2.3 Understand ing yo ur com pe tition

2.4 Managing your people

2.5 Marketing & Promotions

2.5 Store Layout & Visual Me rcha ndising

2.5 Business Financ ial Health

2.6 What are your Retail Key Performance Indicators?

2.7 Business Strategy & Grow th

3. Key Strategic Ob jec tives

4. Where are Your Next Step s?


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1. Introduction

What is the Seed Hea lth Chec k?

The fo llow ing inte rac tive too l will ask you a series of q uestions relating to your reta il

business. The a im of the questionna ire is to determine where yo ur streng ths, weaknesses,

opportunities and threats lie and what action plans you have in place to continually

succeed and improve in your business.

How to use the Hea lth Chec k too l?

This Reta il business Aud it has be en d eve loped from the experienc e a nd knowledg e o f

Reta il Consultants.

The style o f this hea lth chec k is to :

1. Assist in p lanning your d iscussion about your business

2. Identify the key issues of your business

3. Determine specific objectives and measures to combat the specific identified

issues

4. Create a set o f ac tion plans for the store to imp leme nt

5. Understa nd your next step s in alloc a ting resource s to achieve your objec tives?


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2. What Is Your Game Plan?

The Issues to Discuss:

Reta iling in a shop ping c entre environme nt is alwa ys go ing to be very com pe titive! Many new reta ilers

try to c omp ete hea d on w ith the ma jor reta ilers and quickly find that this is not a sensible o r prac tica l

strategy.

This self he lp manua l will attem pt to assist you in be tter understa nd ing the streng ths, weaknesses and

opportunities that exist within your store and utilise a methodical approach to prepare you for business

improvement. Initia lly you ne ed to confirm the d irec tion your business is hea d ing in.

Questionnaire:

Tick the mo st releva nt sta ge tha t your business currently focused on:

Business Stage Tick Timeframe for ac tionGrowth

Stabilising and Sustainability

Selling

Closing or Exiting the Business

Top ic Reta iler Response & Ac tions to be TakenHow long have you had the b usiness

Why did you buy or estab lish it

What d o you see as the o pportunities for yourbusiness

Where d o you see your business in 3 yea rs

Is your current pe rformanc e in line w ith yourplan

Is your plan still relevant

Do you need to upd ate or develop a newp lan fo r your business

What is it that you nee d to do now to ac hieveyour plan


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2.1 Who is your custom er?


A c ommon pitfall found from individua l store resea rch wa s too muc h stoc k that to o few pe op le in their

loca l ma rket will eve r wa nt to b uy. Often this is bec ause the y don't know the ir customers.

Questionnaire:

Top ic Reta iler Response & Ac tions to be Taken

Desc ribe your custom er: Types Age group s e.g. 15-25 Gender Family sta tus

What are their need s and wa nts How freq uently do they shop

Which one s should yo u ta rge t

What do they rea lly think of your sto re

What do they b uy from you freq uently

What do they spend the mo st m oney on

Why do nt the y buy more from you

Do you attrac t the a spirat iona l or bud ge t

conscious customer


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2.2 What is your prod uc t offer?


Understanding what your product offer should be to best meet your customers needs is an ongoing

proc ess of review ing wha t your customers are b uying from you a nd wha t they a re likely to wa nt in the

future.

Questionnaire:

Top ic Reta iler Response & Ac tions to be TakenDoes your business have a winning p rod uc t o ffer

Is your offer a generalist or a specialist offer

What d o you o ffer that is unique

What sells in high volume and what is low in sales

Prod uc t Sourcing: Do you b uy individua lly or part of a group? What makes your business d ifferent? How much of your produc t c an be bought

elsewhere in the centre?

Do you have an o pen-to-buy plan

What a re the a rea s that you are most c omp etitive

Do you have the right levels of stock in these a rea s

Do you have the c orrec t ba lanc e of stoc k in allc ateg ories of your business

What a re the a rea s that you are most c omp etitive

What d etermines the stoc k you buy? Cate gory ba sed merchand ise plan Past Sales ( histo rica l/category) Suppliers Buying / Franc hise Group Personal Choic e a nd Taste

Insert your estimate d cate go ry b rea k up:

Categ ory Break Up Margin % Sales $ Space % Stoc k $1

2

3

4

5

6

7

89

10


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2.3 Understand ing your Competition


Every retail business will generally have a high level of competition from other retailers selling similar

products. It is imperative to constantly consider how you win against your competitors and grow

opportunities to differentiate against them. Although you may have similar products there are many

wa ys of c rea ting a po int of d ifferenc e w ith service a nd in store experienc e.

Questionnaire:

Top ic Reta iler Response & Ac tions to be TakenWith whom do you co mp ete

What do you w in on wha t a re the o pp ortunities

In wha t a rea s are you the sam e

What do you lose on wha t a re the t hrea ts to yourbusiness

Are you g a ining or losing in the m arket

Does your core custom er care ab out the a rea sthat you are good a t (does it ma ke profit)


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2.4 Managing your People


Managing the performance of our human resources in a retail organisation is the backbone for driving

an efficient and sustainable business. Our human resources are often one of the greatest investments

that we have in business it is imperative that they are managed effectively to maximise the return we

rec eive fo r our investment.

Questionnaire:

Top ic Reta iler Response & Ac tions to be TakenWhat role do you p lay in the business

How ma ny hours a w eek are you current ly wo rking

Do you have structured roles for the members ofyour tea m

How would you rate the pe rforma nce of yourteam

How a re your team developed and lead

Do yo u use a performa nce ap praisa l system if sohow freq uently

How d o you rec ruit new team m emb ers to yourbusiness

How d o you induc t new team mem bers

What supp ort or ma nag ement too ls do you haveto ma nage poor performanc e

Where d o you see the a rea s of improveme nt foryour tea m


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2.5 Marke ting & Promotions


For ma ny sma ller reta ilers the que stion is always go ing to be ho w can I best g et my sa les message to the

right c ustomers who will respond and buy my p rod uc ts? There a re m any exam ples of sma ller reta ilers

competing very effectively against the major retailers with very clever and successful methods of

p romo ting the ir businesses.

Questionnaire:

Top ic Reta iler Response & Ac tions to be TakenHow do you ma rket and p romote your business

How do you p lan p romotions for hot spo ts and

windows

Do you have a da tab ase o r loya lty program, if sohow do you use it

How do you p rom ote outside the c entre and is thispa id marketing

How do you pa rticipa te in centre marketingcampaigns

What support do you g et from your supp liers /

franchise

What have b een the m ost effec tive p romot ionstha t yo u ha ve utilised in the pa st (p rioritise in order)

Where d o you g et a dvice a nd a ssistance


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2.6 Store Layout & Visua l Merchand ising


Being able to professionally layout the store and visually merchandise the product offer is a major

challenge for independent retailers. Unfortunately, many retailers underestimate the importance of

me rchand ising and the p otent ial imp ac t on sa les of the sto re. Professional me rc hand ising is muc h mo re

than making a store look attractive to the customer, it is about communicating the product offer to

the customer in a wa y tha t w ill maximise sales. The und erstand ing o f the physica l and visua l dyna mics of

the stores selling spa ce is a c ombination of tec hnic al know led ge and a feel for wha t w ill at trac t the

c ustom er into the store, move through the store and be enticed to make a buying de c ision.

Questionnaire:

Top ic Reta iler Response & Ac tions to be TakenIs your sto re laid out in produc t c ateg ories

How do you de termine whe re to b estmerchand ise ea ch of your produc t c ateg ories

Category/department Theme Item Supplier

Who has the responsibility and skills tome rchand ise your sto re

What a re the b est p erforming a rea s in your sto reand how do you de c ide o n what to merchand isein this area

What a rea s of your store do no t g eneratesignificant sales turnover

How frequently do you upd ate the front of yourstore

How do you mana ge your problem or clearanc estock

Do you have enough room to mercha ndise a ll ofthe produc ts ad equa tely

If you had m ore spa ce wha t would you d isplaymore of

What wa s the mo st effec tive windo w p romotionthat you have installed and why

Do you ha ve a plan fo r what you w ill display inyour windo ws and hot spo ts 3 months in advanc e(is this linked to the ne w p rod uc ts tha t you a reranging)


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2.7 Business Financial Health


The g reat c ha lleng e fo r sma ller reta ilers is trying to ma nage a ll aspec ts of the b usiness op erations while

ensuring the financ ial hea lth of the orga nisa tion is op timised . Som e reta ilers will ma nage this ba lanc e

with ease a s they have m ea sures to cont rol their financ ial performance d a ily. This means tha t sma ller

reta ilers can run more e ffic ient b usinesses by a llow ing more time wo rking on the business rather than in

the business and keep ing c lose c ontrols of the financ ial hea lth of the business.

Questionnaire:

Top ic Reta iler Response & Ac tions to be TakenWhat d o you see as the issues for business financ ial

stability

What is your financial position

How much has bee n bo rrowe d to financ e thebusiness

Are there ad ditiona l overdrafts or c red it c ards wha t a mount is this

What a re your cash reserves

What are your monthly interest c osts

How muc h is outsta nd ing to suppliers

Do you have a ny payme nt plans in plac e w ith anydebtors

Are there any no n c ore c osts assoc iate d with thebusiness

Are you taking d rawings from the business

Do you know your breakeven and how often doyou ma ke it

Do you know month to month if you are making aprofit

Do you have a n Op en to Buy (OTB) plan

Do you have a c ash flow ma nage ment plan


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2.8 What are your Retail Key Performanc e Indicators? (KPIs)


If you cant measure the store performance, then you cant monitor its performance. Reviewing and

eva luating the pe rforma nce o f the store requires the owner to identify and mea sure Key Performanc e

Ind ica to rs (KPIs) tha t include all ma jor comp onents of the business.

Questionnaire:

Top ic Reta iler Response & Ac tions to be TakenHow do I comp are my pe rformanc e with likebusinesses

Do you ca pture?1. Tota l Sa les/ including c ategory sp lit

$& %2. Sales m$23. Brea k even4. Initial GP/GM5. Final GP/ GM6. Markdowns7. Shrinkage8. Occ upancy c ost $ & %9. Wages including o n costs & owne rs

draw ings $&%10.Store contribution $& %11.Stoc k levels/ Stock turns12.Customer counts & spends

YES/ NO weekly/ mo nthly/a nnua lly

How d id you c ollec t this da ta? POS system Ca sh reg iste r Other


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2.9 What p lanning & manag ement reporting tools do you use?


For many smaller retailers being able to access timely information in their business that assists with sales,

product and financial knowledge is an ongoing challenge. Without this timely information retailers will

a lways be flying b lind . Experienc e te lls us tha t tho se reta ilers with the ir fingers on the pulse a re a b le to

ma ke quick and effec tive dec isions that imp ac t p ositively on the sales and profit p erformanc e o f their

store.

Questionnaire:

Top ic Reta iler Response & Ac tions to be TakenWhat informa tion can I ac cess to m onitor thehea lth o f my b usiness

Where is my b usiness go ing a nd how can Iinfluence the chang e in its pe rforma nce

What d o I c urrently plan & monitor?

1. Forwa rd sa les & expenses budge ts2. Forwa rd stock flow & levels budge t3. OTB fo r purcha ses4. Merchandise assortment plan5. GP $ & % Goa l (req uired to pay the

bills)

YES/ NO weekly/ mo nthly/a nnua lly


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2.10 Business Strategy & Growth


Developing a business strategy and planning for growth starts with a desired vision of the future then

works out the steps needed for the b usiness to a chieve tha t vision effec tively.

Ana lysing informat ion about current op erations and ident ifying b usiness op portunities from your Self

Help Aud it is the basis for develop ing a vision of the future. These strategies will ac t a s a roa d ma p for

gett ing to the goa ls envisioned for the future o f the business.

Naturally the strategies you use to get you to the future must take into account current aspects of your

business environm ent, both inte rna l and exte rnal. They are your foundations.

Given the a rea s covered and issues ide ntified , you now need to conside r your key strateg ic ob jec tives

for the next 12 moths? In this sec tion you will deta il a ll of the follow ing:

Objectives Action Plans Measures Timeframes Resources Responsibilities Recorded outcomes

Questionnaire:

Top ic Reta iler Response & Ac tions to be TakenWhat do you see as the strategic opportunities forbusiness growth and de velopm ent

What further informa tion o r assista nc e is req uiredto b e a ble to establish your ob jec tives & a c tionplan

How will you c eleb ra te o r rew ard fo r success whe nachieving your objectives

What w ill be your co ntingency plan if your

ob jec tives are not ab le to b e me t

Now it is time to list all of these objec tives to d eve lop your ac tion plan.

Return to the sta rt o f the Self Help Aud it and highlight in eac h questionna ire the Top ics tha t required

ac tions to b e ta ken.

Transfer these p oints onto the Key Strategic Ob jec tives planner in the next sec tion. You w ill then need to

deta il the Measures/ Aims, Timeframes and Resource s req uired for ma king these change s.


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3. Key Strateg ic Ob jec tives

Identified issues to take ac tion

Identify Issue & Set Objec tive Ac tion to be Taken Mea sure / Aim Timefram e

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.


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4. What are your next steps?

By now, you have identified areas of your business that require improvement and noted down youraction plans. From here, you can seek support from your Centre Management office, or look into sometraining courses that a re designed spec ifically for Reta ilers.

Take extra advanta ge of your Act ion Plan b y build ing your business skills knowled ge . After completingthis hea lth c hec k, you should have a g ood ide a o f areas you wo uld like to know more ab out.

If you have found your way to this handy tool, you would have seen the training options available toyou.

Training Op tions:1. Seed Online Short CoursesThe Seed online lea rning p rog ram a llow s you to p urchase a nd access short interac tive c ourses in timesmo st conve nient to you. These c ost effec tive courses a llow yo u to selec t training top ics tha t suit yourimmediate needs.

2. Seed Reta il Exc ellenc e Workshop sThe Seed Reta il Exce llenc e Workshop s are d esigned to p rovide you w ith prac tical ma terials tha t a im tobuild business imp rovem ent strate gies. You c an choose to atte nd the pa rticular workshop that ma tc hes

your training needs, or progressively expand your retail knowledge as you attend each of the fourworkshops:1. Visua l Merchand ising2. Retail Marketing3. Custome r Service4. Profitab le Reta iling

3. Seed Diploma of Retail Mana gementSet to launc h in ea rly 2008, this d iploma ca ters for ind ividua ls who wish to ta ke a higher level of stud y inretail management. Delivered over a 12 month period with 8 one day interactive workshops,pa rticipa nts will be guided by an experienc ed ARA fa c ilita tor using prac tica l exercises and case studies

that a lign to the d ay to d ay c hallenges of a retailer.

4. Exte rnal Support Resourc es1. Financ e Arrang ements inc luding m erchant fee s2. Shopfitting supp lies3. Telecomm unicat ions4. Marketing5. Consumables6. Emp loyment Rela tions Services7. Tenanc y Sup port Servic es (Lea ses & Leg a l)


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The Seed Training Services are provided for general information purposes only. Westfield makes no representations about the accuracy or suitability of theinformation provided and takes no responsibility for any error, omission or defect in that information. In relation to all decisions regarding your business, you shouldseek professional advice having regard to your particular needs and objectives.

Documents

Seed Retail Health Check