Hang on... help is on its way

As her company celebrates its 20th year in business in 2012, Annah Stretton asserts that to remain the same is to lose relevance 

It’s still tough out there and I for one, am totally perplexed as to why we haven't yet turned a corner on this terrible recessive trading environment that we have all been battling for so long. Though we have high spots, trade ultimately is as unreliable as when we were sitting in the middle of what is now known as the ‘Global Financial Crisis’.  When evaluating all the problems within Spain and Greece, I’m sure the expected bailouts from their EEC neighbours will not help stimulate their broken economies. They will simply wipe government debt and the whole vicious cycle will start again, so it will not be a sustainable solution.

Preferably it’s about making positive lasting changes and doing things differently. It truly is time for people to wake up to the way their governments are endeavouring to balance the books. Money-in needs to equal money-out and as with any good business, there will be some things that we simply cannot afford. I have heard many people talking of a zero cost budget. Basically, if a business cannot increase their sales they simply stop spending and I’m sure there are many operations looking at this option.  I liken the sales retail drop that occurs during June and July in NZ to the birth of my children. I distinctly remember being pregnant with Edward, my second child and thinking ‘this child birth thing isn't hard’. I can’t even remember being in much pain. Yep, I'd decided delivery really was a walk in the park… not!  Halfway through Edward’s birth, experiencing extreme levels of pain, I realized it really was a bad as they say, if not worse!’ Giving birth hurts, don't let anyone tell you differently!

So does trading in the winter months in New Zealand. But it’s not just us, Australia is also not immune. Recently, one of our competitors in Launceston launched a 70% off sale. Really… what’s the point of being in retail if all your new stock heads out 70% reduced at the start of your selling season?

These are new times for retail and if you’ve attended any of the many presentations that commercial banks have been running lately, you will know that retail is set to change drastically over the next few years and all because of technology.

Just look at the many casualties that technology has already left in its wake; the retail music industry, the travel industry and many would say that the publishing industry is not far behind. Apparently Amazon will now print a single book for anyone wanting to buy the works of a newly published author. Gone are the days of having to commit to 500 printed copies just to get your dream and vision started.

Perhaps it’s just the semi luxury spend that has gone west at the moment. I was out at one of my favourite restaurants last week. It was a Thursday night, town was seething, parking was at a premium yet there were only three to four tables of two occupied. Unheard of and they are so great at what they do; the food, the service, the ambience… yet it doesn’t seem to matter. It almost seems the better you are the harder you fall in some cases.
Every day I awake and my first thoughts go to how we can retail differently and drive that bottom line. To remain the same is to die! 

Our research has shown the sales we generate on our internet platform are heavily driven by price, multi-fit and stretch fabrics. We understand the price paradigm and that online shoppers expect exceptional value. We have made a point of offering internet only dresses at $150, whereas these will retail for more in our flagship stores to cover the cost of sale. These online bargains are being snapped up even with a ‘no exchange or refund’ disclaimer.

It is simply non-negotiable; we’ve had to look at our retail models constantly and reinvent. To not wait for change but get out there, drive innovation and think creatively, whether it be creating in-store events, inviting women for one-on-one styling sessions or attending other events and contributing via a small body shaping presentation.

The fact is we stopped selling dresses a while ago and truly began selling a relationship, expertise and connection to a world of colour, style and creativity. That approach is working.
This change in thinking has inspired the development of a festive and full on year-round in-store events calendar and these events have enabled us to talk to those that have and have yet to be converted to the Annah.S way.
And hand in hand with events, I have also looked long and hard at the clothing collections that we are creating. All our items need to be beautiful, appealing and absolutely commercially viable.
There can be nothing that allows the point of sale objection. We make it easy for our existing and new customers to say yes… wrap that for me… and add the obi belt and the flower please.
It’s all about how we give our women a strong enticement to buy.

(I wouldn’t say ‘permission’ Annah  – it may be true but doesn’t mean women want to hear that they need permission.).

We are definitely selling a service foremost, and delivered well, that service will many times be rewarded with a sale. Our stylists know the magic of dressing women for their body shapes not their body weights.
As I write this, I am looking forward to summer not too far away, and a change in seasons always brings a lift in mood and desire to reinvigorate and re-style oneself.

We will watch with interest and stay engaged. Technology has induced change and we embrace it. I no longer think of a new season as carrying the responsibility of lifting retail sales. I will always think differently and creatively around my retail model and hence look to create an engaging and inspirational experience for our customers rather than expect them to be satisfied with the old browse and transact model. 

The Birds of a Feather collaborative model is my focus, the development of pop up stores is another area of study and trial... and the Chameleon frock, our superstar, is constantly under development and metamorphis. 

I will however, also be refocusing my energies on my knitting and star performing products …a sound strategy for us in the long run.

Let’s hope that your businesses can undergo a similar transformation and with your wonderful products and services, you can act to embrace this change.

In the words of one of my superstar girls, Angela in our Christchurch store, in an attempt to bring some logic to this retail drought, ‘I think they are all saving up to buy firewood’.
And to that I say…well if they want to feel great about themselves, they’ll be stoking the fire wearing Stretton.

Annah Stretton
Read more online at annahstretton.blogspot.co.nz