Poor Sales of Stores

It has come to my concern that our daily sales of our different stores have been drastically on the low despite the staff’s efforts for sales. It may be due to certain reasons, in which I would review and try to come out with a conclusion. Let us look at the internal and external factors, which may be of importance and the catalysts to the poor sales these days.

Analysing Visual MerchandisingVisual display of a store is very important, so as to attract more customers to the store. Ever walked pass a store and go “Hey, that looks awesome, let me go in to take a closer look.”

In the research of “The Effect of Visual Merchandising On Fashion Stores in Shopping Centres” by Maria Pepeira and her group (Pepeira), there is a short paragraph describing the need to shop:

In the case of apparels, people acquire such items for a wide variety of reasons, for example: i) out of need, ii) to replace products they already have, iii) for the pleasure of purchasing, iv) to feel more attractive towards others or v) to demonstrate their status

This would also apply to what we are selling. Therefore the acquisition of the items should allow the audience to put them to good use. However, a few problems surfaced in conjunction to recent consumer behavior:

i) today’s consumer is more demanding ii) to know how to combine clothes, iii) to actualize their wardrobes more frequently, iv) to seek a new quality – price relationship, v) to demand more personalisation and, vi) to purchase clothes during sales seasons

As the reasons above are pointed out, the main problem would be the last point, “vi) to purchase clothes during sales seasons”. Many of the customers would be asking for discounts or even exclaim that our products are of unreasonable pricing, and would compare to the other brands surrounding us. Despite mentioning of the exquisite workmanship and quality of the products, most consumers are more likely to be affected by the price than the product’s good characteristics instead.

The question would be, “Is our visual display impressive enough to stop and allow a consumer to enter the premises?” If yes, the next probable question would be “How am I going to make them purchase this and/ or more?”

In my personal interaction with consumers, there are various responses I get:

1. Do not even acknowledge your presence2. Shocked by prices3. Comparing to another brand

The first point occurs to most of the staff, and yet we get disheartened at times due to this. Many of the population lack graciousness, and I would conclude most of them are thinking that “this sales promoter is just out to get your money, let me just ignore him/ her.” That would be unfortunately false, sometimes we would greet these consumers out of courtesy, and to welcome them into the premises.

The second point would be most common after the consumer acknowledges the product, and shows interest in it. Most responses I get are “Why so expensive?”, “Any discounts?”, “National Day no discount?”. The consumers fail to realize the significance of the brand, (and despite our attempts to bring the brand across, explaining the worthy value of material used, and the satisfaction you get from the product), the price turns them off instantly. Of course, I am not addressing to the consumers with high purchasing power, because they definitely know the brand’s and quality’s worth.

Lastly, point three usually goes hand in hand with the previous point. After looking at the pricings, the consumers would be comparing our items to another brands’. Again, despite bringing up the quality, most of them who leave our counters eventually end up with items bought from neighboring brands, most of them with signage stating 20% discount, Buy one get one free, etc.

Singapore’s Retail Industry 2012 ReportI am thankful for my friend in our local university, who has shared with me Singapore’s retail industry 2012 reports.

I have attached the reports, along with this report (and reflection) in this email.

With the market increasing, it is puzzling that sales have been affected. Where does the problem lie? The industry is growing, that would mean there is a sufficient growth in the retail line (meaning income generated).

In one of the reports (pdf file labeled Retail Industry 2 Final Report), it has been mentioned that the weaknesses can include a huge variety available for consumers, thus the natural comparison. Only a small 0.075 percent is spent on retail for an average household, and it says the majority of our income comes from business and tourism travel to sustain. A huge threat to the physical market has gone online, the appearance of more online stores also saves time, and the effort to be going around in search for something, is diminished with this option.

Personal Reflection

I find it extremely demoralizing to have not been able to close a deal after trying my very best. At times, when the day is good, I feel that lady luck is on my side, I do not get the satisfaction (though I am glad sales is on a steady rise) as much as closing a deal with someone who is more reluctant to purchase. In the few days, I can safely say I have worked harder than I have for the past few weeks, but still have failed to produce a decent sales figure at the end of the day. All I can do is hope and do my best when approaching and serving someone.