Atlanta's Rep Larry Lucas Shares Retail Tips

A 32-year veteran of AmericasMart in Atlanta, Larry Lucas, of Larry Lucas Inc., knows firsthand the multitude of challenges store owners face. He recently presented a decidedly informative Retail Management seminar at the Atlanta Gift Show in which he highlighted the “must knows” and “must haves” to survive in the gift boutique business in today’s economy and beyond. The Giggle Guide^® is happy to share some insightful highlights from Larry Lucas’ excellent seminar.

Diversity: Plan a Mix of Gifts, Including High-End Items

“Stores must have a diversity of products,” Lucas shares. “If you’re selling just one type of thing, you won’t last.” Promotion-motivated owners and managers will reap the benefits of this advice: “Your store should have a 37 to 43 percent make up of baby shower, birthday, accessory, and specialized products,” Lucas points out. “And don’t forget the grandmother’s; these customers are always ready to buy something for their grandchildren.”

Lucas also stresses that store owners should diversify themselves with an “upper-end” product base. “There are lots of stores that carry the same mid-range gift items, but the competition narrows as you provide your clientele with high-end options,” he says. “Don’t worry about the price point. People who want to spend money will find you.”

Promotion: Word-of-Mouth is the Last Word

Where and how to spend money on advertising and promotion is always a tough call for store owners. Lucas emphasizes, “Word of mouth is at the top on my list. Positive service, product knowledge and unusual products will garner you customers who will then share their stories and draw additional customers into your store. It is important to note that 45 percent of customers tell three to four friends about a good shopping experience.”

A baby shower registry, birthday club, and grandmother’s day also drive people into a store. “These offerings are so low cost, but can give you an edge over other stores because they provide you an opportunity to connect with your customers,” Lucas says.

Lucas advises against newspaper and television advertising, but believes in postcards that can be mailed, handed out or distributed to other entities that cater to children or tourists. “Always offer a percentage off on the postcard to draw customers—old and new—into your store,” he says. Lucas asserts that successful stores must sell gift certificates. He also believes that a Holiday Open House in November, not December, is a must. “These options bring new customers and their families into the store, but also continue to cater to your loyal customers.”

Research: Know Your Market

It’s important to know your products, but even more important is to know your market. “Girl items sell better than boy items 4 to 1,” Lucas maintains, “and new baby sales are through the roof. On average, the mom-to-be is having three to seven showers prior to giving birth.”

Lucas estimates that the average child attends approximately 17 parties per year. “If customers are spending $10 per gift, that quickly adds up as revenue for your store if you’re selling the right products,” he stresses. “And don’t forget those ‘add-on’ accessory products that people will buy just because they’re there.”

Product Displays: Keep Them Fresh and Easy-to-Find

How a retailer arranges store displays and approach is very important. “Every 10 feet, starting at the store entrance, is your best selling area, then the next 10 feet and so on,” Lucas shares. “Your practical and everyday merchandise is housed in the back.”

The front of the store and store windows are prime spots for impulse buys; new and more expensive items should make up these areas. “Make sure you change your window displays every three weeks to lure in customers,” says Lucas. “Change your in-store displays every three months and rearrange your entire store at least twice a year to keep customers on their toes and coming back for more.” Lucas also stresses making a list of all sales categories in stock and being aware of what you’ve ordered to complement them. “Mix and match plus add-ons should be a main display plan,” he says.

Stores with music, a pleasant, yet not overpowering fragrance, and quality customer service are most successful. Lucas points out, “Customer service is not asking, ‘May I help you?’ Customers don’t respond to that. A creative store floor plan with everything at their fingertips is what customers want. It must be intuitive.” Signage can help a customer intuitively walk through a store. “You need to direct your customer to what they might need,” he reveals. “Cute, fun signage that can direct store traffic will add to your sales.”

Trends: Tweens Set the Scene

Today’s tweens are hip and fashion forward. The Internet, text messaging, iPods; and social networking sites, such as Twitter, Facebook, and MySpace, keep them on top of the latest trends. “If they find something they like, they will tell their friends or even buy one and give it as a gift,” Lucas notes.

“Clenched Fist Dollars — that’s what I call the Tween Scene money,” Lucas adds. “Tweens always seem to have some money in their fist and they are ready to use it.” Lucas suggests carving out a store section and dedicating it to solely to tweens. “This group is all about themselves, and they love to incorporate who they are into how they dress. Being tween-friendly is a must these days if you want your business to flourish.”

Lucas’ Top Three Tips

Larry Lucas’ foremost tips for flourishing in today’s economy are:

1. Service — Know your customer base and cater to their needs.
2. Product Knowledge — Know your products, how they’re made, where they come from, and how to coordinate them with others.
3. Stop Worrying — Quit worrying about what the competition has. Be confident in what you do and it will be evident to your customers.

To learn more about Larry Lucas Inc., visit www.larrylucasinc.com