Sales Strategy

Surviving in Today’s Digital WorldBy Andie Weinman, CEO/President of Preferred Jewelers International and Continental Buying Group |  January 31, 2018 (0 comments)

Miami, FL--Oh boy! I’m giving this topic a go using all the input I have gotten from my two groups of retailers:

1. The old playbook just doesn’t work anymore. People are no longer driven to a store on price alone.
2. People want an experience and connection rather than what retailers have always relied on which is only sales price and convenience.
3. Retailers need to offer more services, the largest would be technology and employee relationships that can only be gotten in-store.
   You must promote a positive retail experience to keep customers coming back in for more.

Let’s start with the playbook. They say that foot traffic is down in malls and stores and people are not shopping like they used to. I don’t agree. They are shopping--but shopping differently and in different places.

The old playbook, where retailers rely on driving traffic through pricing, isn’t working anymore. There seems to be a sale every day at a retail store somewhere. We expect a sale at Macy’s or Bloomingdale's, but when you offer constant discounts, there is expectation that another discount is around the corner. Now it seems that this behavior from retailers has a downward spiral effect and in fact, can hurt the brand--which in our industry is you! You are the brand.

Shopping behaviors as we all know have changed. People like to shop online for convenience, better prices, and comparison shopping, especially for diamond products, reviews, and variety. With digital growth there is no question retailers are trying to figure out a strategy to get more people in their stores.

The solution for me is the importance of the physical store. While online shopping will most likely dominate in certain categories (such as electronics and music), we are lucky that jewelry is still the category consumers prefer to buy in-store. Jewelry retailers can leverage customers' interaction and buying relationship as long as the in-store experience is positive and memorable.

I believe the future depends on this in-store experience. Even though online shopping continues to rise, people still enjoy the hands-on experience of shopping in the store. Consumers (like myself) love instant gratification, not having to wait for a delivery and the personal attention. I believe from personal experience that today’s shoppers want to have a relationship with the brand and I believe that’s you. Not the jewelry brands you sell (though that has some merit) but other stores may have that brand as well. Shoppers want the experience from you, their independent retailer; you, their jeweler that they trust. Service is where your opportunity lies.

I feel retailers have started to enhance the in-store experience. Your job is to find alternate reasons to get people in your store. Of course, we all know about events, but you need to think more about the experience. I happened to have a great experience at Ulta beauty recently. They had a famous make-up stylist come in and give tips and makeovers. It was fun and interesting, and I will return to the store.

Here is where store associates can elevate the in-store experience. This year I feel many retailers should focus even more on training and goal levels, which will help in creating increased compensation. Some companies have special training partially funded by many brands. Just ask!

Also remember, the mobile device has become America’s number-one shopping companion. A connected retailer will continue to drive traffic to their store utilizing this. Wow! I have come a long way. (Editor's note: at the Tuesday morning education session at the Centurion Scottsdale show,  Jamie Blomquist from Google and Andrea Hill from Hill Management Consulting also emphasized how fast mobile has taken over the digital shopping landscape. A recap of their session will appear in an upcoming edition of The Centurion Newsletter.)

Let sum this up: embrace technology and create relationships in your store. I still and will always believe in physical brick and mortar stores. They are important and inter-connected retail is more important than ever for bringing traffic and sales to stores. Malls and large department stores are dwindling nationwide. But people still want that sense of experience and connection wherever they go.

I find it very interesting that there has not been a traditional mall built since 2009! Instead, we now have large multi-use living/shopping/dining complexes being built. They have outdoor features, specialty shops, restaurants and, of course, green space. Why? Because people still want that sense of community and physical connection.

It is my belief, to best understand where retail is headed, stores must evolve. It has to become less about the store as merely a space for inventory and more about a branded entertainment experience. To get the consumer off the couch and into your store requires the store to become a much more emotionally rich experience rather than a functional experience.

Hope this helps. We just came back from New York City and the 24 Karat weekend (which I always love), then we went to San Francisco for our Continental Buying Group Show, then sent Laurie and Estelle to Centurion Scottsdale to represent our Preferred Jewelers group. We like entertainment and your customers do too!  --Andie

Andie Weinman, president and CEO of Preferred Jewelers International / Continental Buying Group Inc., has worked in the jewelry industry since age 10. Though she holds a B.A. in musical theatre and a B.S. in marine biology from The University of Tampa, the jewelry business beckoned and she has performed a multitude of jobs in the manufacturing of jewelry.  As a negotiator, she has earned a reputation as being tough but fair with vendors. In 2012 the Indian Diamond and Color Association awarded Andie the Prestigious Doyenne Award of the Year.