It is fairly apparent to anyone who goes into our sister store (purveyors of Cd's, DVDs, games, and annoyingly these days, cheap books), that they are falling flailing on their arses. They keep hitting up related areas of product, sales gimmicks, etc, all to no avail. They tend rather to overlook the fact that what made you popular is what sells. Now, obviously it may be you are part of a dying retail area: The Internet is changing everything yadda yadda....
But if you are attempting to maintain yr niche, or adapt it, a company does well to remember what people will still need you for, and this is as true for my employer as her sister company:
1) no-one really shops for pleasure on the Internet. They would prefer to be in shop with items in hand, browsing, reading labels, comparing prices. As most of the silly market research i have to listen to points out: a CD/DVD/book in the hand is worth two on the Internet. the sense of possession when you leap onto something physically there, is much greater than browsing an image. so bearing this in mind
2) YOU SHOULD STOCK AS MUCH RANGE AS YOU CAN. yes, you can never compete with the Internet in terms of what you have in; but equally, the Internet is no more than a catalogue. it has no physical product to put in people's hands. people go back to record shops and book stores for new and different things. why would anyone go into a different branch on their holidays, for instance, if they didn't expect to see something different from home. Furthermore, the chance purchase is based on surprise, is based on people picking something up adjacent, seeing something on a shelf, and looking at it, turning it over. People want to peruse as much choice as they can reasonably find.
3) it is pointless to stock hundreds of copies of something huge, that will be cheaper on the Internet, and could be orderedquickly by your store if desperately needed. Those big items, the ones everyone knows about, by all means stock a good quantity, but remember they are the ones that will be sold largely online and in supermarkets. NEVER CHASE THE VERY CASUAL BUYER, THE MOST PRICE CONSCIOUS BUYER, AT THE EXPENSE OF CORE CUSTOMERS. Yes, you want them, but they are fickle and there is little point in overstocking discounted items for them when the regular users are so tired of you having nothing new that they give up on you entirely. So if you have space for 40 copies of the latest massive sellers, by all means get it, but not if it means pushing out half the subject range. Everyone knows where they can get The Girl With the Deathly Nigella Code or whatever, you'll never win their loyalty by having it in all the time.
4) Prices should be sensible. there is no point devaluing the product, even though you obviously have to compete. Rather than being extreme in your prices, hit a sensible medium. This is a bit problem with the sister company. a CD/DVD comes out at £9,goes on offer at £5 and then goes up to £14-£16. Shops underestimate, i think, how irritating price changes are; especially those that change every couple of weeks (as we did with some items over Xmas). put the CD out at £10, and mostly leave it there. perhaps include it in multi buys, but keep a steady price. People are conservative in shopping terms, and will buy at a reasonable price when the item is there to be taken. Adding an extra £6 onto its price once the item is older is likely to drive people elsewhere; Better to have it at £9 when new, and then maybe up the price by a pound or two after a couple of months. Better still, just price it in the middle and have done. Price reliability is greatly underestimated. And avoid doing what we have done this year and last, by keeping a book on offer even when it is getting close to Xmas. A bit of plain dealing instead of milking will almost certainly go down well. Customers that trust you, consider you fair minded regarding price, are much more likely to keep coming back.
On a more specific noet, our store has, i gather, been singled out for an experiment. Not a particularly clever one, by the sound of it. we are to reduce our non-children's books space to 50% of the store, and expand our Related Product. Given we are the only proper bookshop in the county, and highly dependent on a core of regulars, this will undoubtedly prove unwise. I got quite a few comments over Xmas about how ----- section was half what it used to be; any more shrinkage and many will probably give up entirely. I'm all for experimenting, provided its a clever experiment that takes consideration of the market. The increase in RP seems bizarre, its percentage margin per item may be good, but you'd still need to sell 10 cards for instance to make up the margin on a book. and the margin amount is more important than the percentage, i would've thought. Plus, Related Product is, as the term accurately puts it, "related", its an extra. To expand the range of RP at the expense of books is the equivalent of a restaurant adding lots more sides or starters to its menu and cutting the range of main meals. Few people go in for the sides or starters. After early movement in the right direction at the start of the year, it would seem we are looking into making the same mistakes Smith's made for so long. Jack of all trades, master of none. Smith's figures only improved once they shrank their core concerns; and even now they aren't doing so well to suggest there is a big market for competitors. Finally, Smith's are, item for item, cheaper and more downmarket than we are; it would be unwise to compete when our products are marginally more expensive, and to lower the prices would remove the margin to a financially pointless degree. If the company has any market to expand into, it may be better served by posters and prints, which are these days less available on the high street.
The future, you feel, still remains in rediscovering the core of what we do well, and doing to the highest standards with best staff at sensible consistent prices.