6 SEP-OCT 14
I think everybody if truly honest would like to think of themselves as something more than just “average.” “Average” after all is considered mediocre middle-of-the-road and often nondescript. Clearly however in NSRA’s Business Performance Report (BPR) terms not every store – or every employee – will be classified as a “high performer.”
The most recent BPR sets forth retail metrics which it breaks down into categories of “high performers” and “low performers.” I personally know many of NSRA’s “high performers” and am proud of the fact that several of them are RMSA clients. To them I say “Congratulations; keep raising the bar moving the needle and pushing the envelope. You are excused from reading the rest of this article.”
Speaking to Average and Low Performers
I want to speak directly to those stores that might fall into the average or low performer category. Few people know the stores that live in this group. These aren’t the folks that you meet at a trade show or an NSRA event; people at those events do not readily admit to performing on the sub-par side of industry norms.
The Ultimate Goal
Nobody goes into the shoe business – or any other kind of business – with the ultimate goal of being a low performer (LP). I think they end up being an LP for a variety of circumstances some of which are outside of their control and some not. I believe they don’t want to see themselves as “average.” In fact I doubt that most “low” performers are lazy unmotivated or untalented. However I do believe that mediocrity can become an acceptable norm if left unchallenged season after season year after year. This in my opinion is a major difference between high performers and low performers.
I contend that there are reasons that some stores purposefully accept their low performer status. Those reasons include:
- Fear
- Reluctance to change
- Ego
- Control
- Lack of knowing what resources are available
- Not wanting anyone else to know their business (usually because it’s bad)
Fear of Change
When a retailer is held back by fear of change many times the retailer is in a family business. You often hear the reasoning “We’ve always done it this way” without hearing a convincing argument as to why the particular behavior is allowed to continue. To some folks change can be frightening. In some cases people are reluctant to “look under the hood” because they are afraid of what they might find and what course of action they might have to undertake to make things better.
I knew of a young man who put off seeing a doctor for over a year even though he had the classic symptoms of colon cancer. He rationalized his decision through a daily regimen of exercise designed to convince himself that he was “OK.” Besides he told himself he was way too young and “healthy” for cancer.
To make a long story short he had a portion of his colon removed and endured a year’s worth of chemotherapy all of which involved considerable discomfort and may have been avoided if warning signs had been heeded and help sought earlier. Why didn’t he seek help sooner? He later admitted that he didn’t want to hear that something might be wrong with him. Had he waited much longer he could have ended up as a “Permanent Markdown!” I know: Crazy right? I say that lightly not because anyone should take cancer lightly but because sometimes a little lightness is a better way to make a memorable and important point.
The Verbal Excuses
Ego arrogance and control are paranoia traits usually rooted in embarrassment or shame. We’ve all heard people say one or more of the following things:
Pardon my skepticism but “Yeah right!” I can’t tell you how many stores I have seen that have failed to maximize their upside potential – or worse go out…
Be Honest with Yourself: Are You a “Low Performer”?
Many businesses fail because they were too stubborn arrogant or insecure to ask for help. Taking no action is a cognitive business decision. All too often refusing to act leads to a long list of economic calamities including lost jobs abandoned lease obligations unresolved vendor debt and personal financial upheaval. Becoming a “high performer” starts with a state of mind and a personal commitment to become one.
Getting to a Higher Level
If you can honestly say that you want to get to a higher performance level there are several steps you can – and should – take. Among them:
- Find advisors you can speak with honestly – whether they are bankers accountants fellow business owners retired business owners attorneys former classmates or others. They have experience you can tap in confidence.
- Read business books and magazines and sit
Published in the September/October 2014 issue of Shoe Retailing Today Copyright © 2014 National Shoe Retailers Association Tucson AZ www.nsra.org. All rights reserved.
The bottom line is computer automation such as RetailSTAR provides benefits both the store and the customer. An extremely popular shoe may come in a wide assortment of sizes and widths. Being able to determine what’s left in stock should be as easy as looking at a display screen. The days when a sales associate could leave a customer sitting for twenty minutes while they wandered into a back room to see if there were eights in extra wide are over. The world is running at a faster pace. CAM Commerce’s RetailSTAR was built to help businesses run along with it.
Business Discussions and Presentations
Attend Conferences and Listen
You may not agree with other people’s suggestions but hearing what they think may spark you to think in a new direction.
Go to Trade Shows and Watch
See what excites other people and try to figure out why.
Hire Outside Help
Take a realistic look at your business model and numbers. Somewhere in your network there is an outside resource. You may find that resource through your Chamber of Commerce another local business association or a colleague in NSRA.
As a business person myself I would be remiss if I didn’t remind you that RMSA as an educational partner of NSRA is here to help. However there is one big problem: We don’t know who you are. If you are feeling stuck consider yourself “average” but want to step up and become a “high performer” or fear you are falling short of industry benchmarks I encourage you to reach out. With RMSA all correspondence is confidential and there is no cost or obligation to discuss your particular situation and possible courses of action. If RMSA is not the ideal choice for you we don’t take it personally. We simply urge you to be the best owner you are capable of becoming and find the right outside help to keep your thinking fresh focused and fruitful.
Just like your parents told you all those years ago it’s important to stop look and listen. Keep yourself and your business safe and strong by getting outside feedback. Most businesses can be helped if issues are caught early enough.
Don’t be like the guy mentioned earlier who put off going to the doctor until it was almost too late. Don’t allow a lack of action to force your business into being a Permanent Markdown!
In addition to being vice president of business development at RMSA Retail Solutions Ritchie Sayner is a colon cancer survivor and willing mentor. Contact him at 816-505-7912 or rsayner@rmsa.com.
CAM Commerce’s Locations
Fountain Valley California location. The company has more than 100 employees with another location in Henderson Nevada.
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Summary
The article discusses the performance disparities among retail stores emphasizing the difference between high performers and those categorized as average or low performers. It highlights the common reasons some stores remain low performers such as fear of change reluctance to seek help and ego and suggests steps like seeking advisors and embracing technology to improve. The article encourages business owners to be proactive in seeking assistance to avoid stagnation and potential failure.
“Becoming a ‘high performer’ starts with a state of mind and a personal commitment to become one.”
Real-World Examples of Overcoming Mediocrity
Here are a few examples of businesses and individuals who have successfully transitioned from average or low performance to high performance by overcoming common obstacles like fear of change and reluctance to seek help.
- A small retail store struggling with outdated inventory management systems decided to implement a modern software solution like RetailSTAR. This change allowed them to efficiently track stock levels and improve customer service ultimately increasing sales and customer satisfaction.
- A family-owned business that had been operating the same way for decades realized they were falling behind competitors. By attending industry conferences and trade shows they gained new insights and adopted innovative practices which revitalized their operations and boosted their market presence.
- An entrepreneur who initially resisted external advice due to ego and fear of sharing business details finally hired a business consultant. This decision led to a comprehensive review of their business model resulting in strategic adjustments that significantly improved profitability and growth.
