Quantifying the Factors Affecting Store Flat Sales and Same-Store Sales Growth: Revised Version
Copyright 2021 Marcus Antebi
Introduction:
In order to understand the reasons behind store flat sales and same-store sales (SSS) growth, we need to visually represent each store's unique or common negative/flat/lack of sales growth problems. This will help us identify key areas of improvement. Let's explore some important factors affecting our sales and potential strategies to address them.
1. Identifying the Root Cause:
a) Is the flat sales trend due to a decline in interest in our product or its category? Understanding market trends and consumer preferences is crucial.
b) Are we allocating enough budget to advertising and customer acquisition to keep up with our rate of expansion? Society's interest in our product cannot be altered without substantial investment.
2. Focusing on Foot Traffic:
a) Increasing foot traffic to specific stores can positively impact sales, as long as the cost is reasonable compared to potential sales growth.
b) Enhancing the customer experience is vital for future SSS, avoiding negative comps, and encouraging repeat business.
c) We must ensure our stores are well-maintained, stocked with products, and offer excellent customer service.
3. Price Adjustments:
a) Customers may respond better to minimal price increases (2-4%) compared to larger increases (5-10%) in the next year.
b) Smart pricing strategies can influence customer perception and buying behavior, especially for certain items.
c) However, price increases are not a long-term solution for sales growth; we need to attract new customers and increase spending from existing ones.
4. Product Innovation:
a) Continually studying customer trends and making small menu improvements is essential.
b) Appoint a dedicated person to oversee product innovation from concept to completion, focusing solely on this task without unrelated distractions.
5. Improving Customer Experience:
a) Develop a comprehensive training program for front-of-house staff, led by an experienced individual, to maximize sales and customer satisfaction.
b) Implement promotions and loyalty platforms to stimulate flat or negative comp sales, catering to diverse demographics.
6. Advertising and Brand Awareness:
a) Differentiate advertising from marketing efforts, understanding the importance of ROI.
b) Utilize digital platforms like Google ads for targeted marketing and immediate sales results.
c) Consider investing in brand awareness to build long-term recognition and sales.
Conclusion:
To address same store sales growth challenges, we need to work together to identify key factors affecting our performance. Implementing strategies such as product sampling, effective advertising, and loyalty programs can activate direct purchase incentives. It's crucial to maintain consistency in product availability and service quality while continuously seeking innovative ways to attract new customers and increase spending from existing ones. Upselling techniques and new product launches can be effective in improving sales. By focusing on managing the "dip" in sales and nurturing a positive customer experience, we can achieve sustainable growth and ensure stable profit margins.
