Sunday, July 15, 2007

Business Articles of Note

Firms place dollar value on workplace wellness

As moms return to work, part-time job feels right

Jones Soda shifts focus but still creates buzz

Crafting the entrepreneurial fit

Leadership skills ease promotion to an uncharted area

Diversity of opinions leads to better decisions

Entrepreneurs have options

Talk's not cheap when you take phone abroad

Making a Little Company Look Big

Men Are From Mars, Women Are From Business

Entrepreneurship: The All in the Family Edition

Windows Vista still has its share of detractors

J.C. Penney tries out a hip new approach to ads

New options for those who work from home still want office perks

10 million workers have substance abuse problem

Small-business owners warned not to risk ruin building a company

Getting a lesson in retail inside world's busiest Costco

Saturday, July 14, 2007

Learn from the problems at K-Mart....

The last few years have not been good for the founder of the big box discounter K-Mart. Sales are bad and the merger with Sears has not stopped the decline. While I do not have experience with their corporate issues, I will go over some issues I have observed in their stores, and some of things they need to do to turn things around.

Why would I go over K-Mart's problems in this blog? Simple, so that you can learn from K-Mart/Sears mistakes and show you what pitfalls to avoid. While I could write a book on their issues I will only outline the problems and give you solutions so you can apply them to your business.

Problem #1:

The first and foremost problem K-Mart has is poor customer service. They have cut store staffing to the bone and now there is not enough people to assist the customers they have. Some examples of the problems: customers cannot get help in the departments, if there is a problem at the checkouts say with a price, it takes an eternity for someone to do a price check, and employees are poorly trained and cannot deal with problems. This is just a store issue since I have seen these problems at every K-Mart I have been to in the last two or three years.

Problem #2:

The remodel that isn't. When K-Mart started to change the name of the stores to Sears Essentials all that changed was the sign on the door but nothing was done to the interior. The Sears Essentials I have been into had no interior modifications so they look like dumps. Sadly most of the K-Marts I have been into look like they haven't been cleaned in 20 years. That is a problem because it scares customers away. Just a coat of paint goes a long way to changing perceptions.

Problem #3:

They still have no idea what they are trying to be. Then again Wal-Mart is starting to have some of these problems, and Nordstrom had this problem a few years ago. K-Mart and Sears need to figure out what they want to be, what market they are going after, and go for it instead of trying to be all things to all people because it doesn't work. Target has their niche, Wal-Mart has their niche (even if they want to change it), Nordstrom has their niche and K-Mart/Sears should try to find where they fit in. I live near the first Sears Grand store and I thought it had a ton of potential but there is so many big box stores, maybe its time to go after something else?

This gives you a general idea of the problems facing K-Mart and Sears. While it is no way a comprehensive list, it does show the biggest three problems they are facing. I hope looking at their problems gives you ideas to improve your business and make your business the best it can be.

Friday, July 13, 2007

Business Articles of Note

Jewelry artist to show work at Summerfair

Retail sales down steeply in June

Retailers roll past forecast

Venture Capital: Startup cuts PC power use

Inside Entrepreneurship: No rules for venture funding negotiations

Yahoo expands ad biz with Right Media

Sunday, July 08, 2007

Business Articles of Note

Shopping now cool among men

Even Tinseltown needs someone to deal in scraps

Econo Print included in magazine's top 100

Still going on vacation but closer to home

Lakeside firm patents advanced remote sensing technology

Shows being 'beamed' to theaters

Let's do dinner — and PowerPoint

Thoughts move toy train in Japan

How do we balance work, family and vacation?

Moscow, London, Seoul, Tokyo among most expensive

Cushy regional jets

Vacuum business has room to grow

Kohl's pulls some clothes from stores

I Shot the Polo Shirt

Shopping and Not Dropping

Small Talk: It pays to have a time-off policy in place before the time comes

Latin America turns into magnet for outsourcing

Retail Notebook: Wallingford Center picks up some new shops

Saturday, July 07, 2007

Is the Wal-Mart Price Really Lower?

Depending on what kind of products you sell in your retail store, at some point you will have some one come up to you and say..."Wal-Mart is cheaper". I am sure that every retailer in the country has heard this line one too many times. However, while Wal-Mart may have a lower price, does it have the best price for the money?

This is where knowing your competition comes in handing. No, you don't need to go into Wal-Mart or Best Buy or any of those big box stores every day to find out about prices and how they are doing things. What you do need to do is look at your important sellers, the ones that sell enough and make you enough money and make sure you know how your product competes against the competition whoever that may be in your store. You need to know how that products is a better value the competition and inform your customers about it.

Let give you one example from when I was managing an appliance department. Our biggest microwave oven at the time was 1.8 cubic feet. At the time it was selling from $179.99. Wal-Mart also had a 1.8 cubic feet microwave but it sold for $159.99. So Wal-Mart's price was lower. But was it a better value?

Our microwave had sensor cook, various quick select buttons including popcorn, sensor defrost, multiple reheat options, and keep warm.

On the other hand the Wal-Mart model had none of this. In fact what Wal-Mart did (and what it often does) is go to the manufacturer, tell them they wanted a microwave at this size, at this price, and to take out everything they could out of it to get a cheap price. In fact this the Wal-Mart model was not even in the manufacturers catalog which you will find in many of their products.

So what I did was have a side by side comparison of the two models and show how much of a better value it was (comparing it to Wal-Marts it was worth about $219.99).

Probably 20% of the people will still go over and buy the Wal-Mart model despite you showing your is a better value. However, your goal is to convince the 60% of buyers who are on the fence. By being professional and knowing your facts, you can show them that you have the best value for the dollar and the customer service to go with it.

Sunday, July 01, 2007

Business Articles of Note

Angel investors help space companies

Apple's iPhone debuts -- but not in Wyoming

Protect yourself from identity theft for free

Welcome mat goes out for Gen Y

Back on track: Railroads are acquiring competitive edge in shipping

Personal boundaries shrink as companies punish bad behavior

Kroger marketing new milk that may lower cholesterol

Entrepreneurs should network on several levels

Family and Medical Leave Act works well despite complaints

'X-teams' succeed by looking outward

Companies in U.S. Increase Testing of Chinese Goods

Restoring the Past to Improve the Future

As Laws Change, So Does the Baseball Bat

Businesses should do midyear checkup

Supermarkets get on organic bandwagon

Home Depot's Eco Options green line gets cheers and jeers

W ho's buying the iPhone? Most surveyed are tech workers, prefer or own Macs

Retail Notebook: Bigger, brighter and fashionable Barneys New York

HD DVD Internet connection touted

Custom organization

Thursday, June 28, 2007

Business Articles of Note

Minority businesses are urged to gear up

Oprah Winfrey to operate her own store

Not every Apple item has been a success

Business spending uncertain as durable goods orders slide

Building Companies the Women’s Way

An Entrepreneur Makes Death a Business

Word of Mouth, and How to Get It

Wednesday, June 27, 2007

Business Articles of Note

China shuts 180 food factories

Device lives up to its advance hype, mostly

T-Mobile out to cut the cord

Google helping nonprofits

Vacations can be good for business

Group's new chief grounded in real world

Sunday, June 24, 2007

Business Articles of Note

With hill climbs, flat tracks, Harleys and wing dings, Billings turning motorcycles into cash

Snack food makers start aiming for health

Entrepreneur works behind scenes to develop huge variety of businesses

Mother-son team offers speedy haircuts in Heights

Consumers, industry eagerly await iPhone

Many in U.S. don't have bank accounts

Web ads add to profit

Noncompete clause filters down from executive suite

Docs want AMA to fight retail clinics

Former Bears star thrown for loss by fumble in business

Networking for entrepreneurial survival

Wal-Mart to reduce waste

Gateway warns of battery hazard

Web spending to grow 10.7% a year

The Florsheims, Back in Their Own Shoes

The Human Touch That May Loosen Google’s Grip

They’re Partners. They’re Rivals. They’re Both.

For Women, a Recipe to Create a Successful Business

Blog about work, but at your own risk

Linux makes bigger push with servers

Retail Notebook: Making the birth less of a pain

Google seeks U.S. help on censorship abroad

Workers, employers to get brief tax break

Innovation helps secure future for India

Friday, June 22, 2007

Business Articles of Note

Employers struggle to find workers

Salads to perk up Starbucks menu

Economic indicator strengthens

Small Companies That Try to Bring Innovative Technology to Teaching

Venture Capital: Between an angel investor, VC fund

Inside Entrepreneurship: The tricks to buying a small business

Messing about in boats

Thursday, June 21, 2007

Business Articles of Note

Outdoor retailer faces opposition in S.D.

Tesla Roadster gets price jolt before release

Wal-Mart plans more financial centers

Wait to get into exclusive restaurant may be longest ever at Disneyland

Utahns might soon toss Albertsons cards

Non to BlackBerrys

Sunday, June 17, 2007

Business Articles of Note

Grocers' fight over D.C. area heating up

Car dealers seek workers, even as makers slash jobs

New online real estate firm moves into Washington

Retail Notebook: Stupid Prices cashing in on treasure hunt for bargains

Live-work condos present own problems

Wal-Mart workers give back

Small talk: Small businesses optimistic despite slow markets

On the Job: Politics and the workplace don't often mix

Online Sales Lose Steam as Buyers Grow Web-Weary

Can You Be Too Fashionable?

All-in-one iPhone looks nifty, but should you put it on hold?

Solving the puzzle of cellphone plans

Office furniture finally reflecting women's sensibilities

KOA takes camping to a new level

Do-it-yourself trend hits supermarkets

Thursday, June 14, 2007

Business Articles of Note

Theft rising at U.S. Wal-Mart stores

Tag, you're it to advertisers

Retail sales growth surging

The Loose Reins on U.S. Teenagers Can Produce Trouble or Entrepreneurs

Small businesses get security tool

Wednesday, June 13, 2007

Business Articles of Note

Walgreens discrimination trial under way

Scam Alert: Small business owners should beware of ‘free grant’ scams

Minority advocate 'never satisfied'

Direct-ad opportunity knocks

Soloists Run Small Businesses, Too

Report finds new strength in IPO market

Small business, big challenge

Tuesday, June 12, 2007

Business Articles of Note

Zions Bank offering 'Smart Women Grants' in Utah and Idaho

Baby boomers expecting to work longer, studies say

Wholesale prices climb in Japan

Yahoo, subject of suit, scolds China on rights

Too much stress on the job? Try this

Respected lawyer wants rating site Avvo closed

Monday, June 11, 2007

Business Articles of Note

Seniors discover satisfaction in part-time work

Franchise owner ready for Real Deals on decor

Apple offers browser for PCs

McDonald's seeking moms' approval

IN BRIEF: Need-to-know news for the entrepreneur

Financial firms toiling to foil identity theft

Overworked, underpaid U.S. workers turning to the courts

Dell to sell computers at Sam's Club stores

China's Trade Surplus Surges 73 Percent

Awaiting Real Sales From Virtual Shoppers

Portland's municipal Wi-Fi service disappoints

Transient storage offers extra protection

College duo basks in salon busines

The lure of great Google perks

Sunday, June 10, 2007

Business Articles of Note

Bridger restaurant sticks to car motif

Couples fill important niche for trucking firms

Workforce issues may have derailed plant

Monthly budget-cutting tips: Part 2

New Kicks on Route 66 for Commercial Builders

Latest business books get back to basics

Big challenges ahead for operating systems

Retail Notebook: Carver holds on to tradition

Visa service fee found unlawful, rival says

Venture Capital: Startup to get patients talking

Inside Entrepreneurship: Deductions allowed on vehicles for business

2 local retailers buck the trend

Some employers offering relationship training

New catalog caters to living large

Wednesday, June 06, 2007

Wall Street Journal Story

Not Copying Wal-Mart
Pays Off for Grocers

Catering to Customer Tastes,
Stressing Less Hectic Stores
Help Supermarkets Recover

By GARY MCWILLIAMS
wsj June 6, 2007

After years of decline brought on by fighting Wal-Mart Stores Inc. on price, the nation's grocery chains are on the mend.

The supermarkets are winning back shoppers by sharpening their differences with Wal-Mart's price-obsessed supercenters, stressing less-hectic stores with exotic or difficult-to-match products and greater convenience. Last year, sales at supermarkets open at least a year rose 4%, the biggest increase in five years, according to retail consultants TNS Retail Forward. While the gains are still modest, the supermarkets got more good news last week when Wal-Mart announced it would cut back on new supercenter openings for the next several years.

Earlier this decade, the hidebound supermarket business was expected to fall before Wal-Mart's aggressive supercenter rollout and the rise of membership clubs like Costco Wholesale Corp. and high-end specialty chains like Whole Foods Market Inc. Many chains did collapse -- 26 filed for bankruptcy earlier this decade, unable to match the falling prices of their better-run rivals -- and a wave of consolidation swept the business. But the survivors rallied by redesigning stores, introducing a more relaxed shopping experience and marrying low-priced staples with higher-margin breads, meats and wine. Now, the stronger chains like Kroger Co. and SuperValu Inc. are taking market share from weaker, often regional, grocers.

Supermarkets have begun to attract new investment from those sensing a sustainable edge. Hedge fund Cerberus Capital Management LP recently joined two retailers in acquiring Albertson's Inc., a Boise, Idaho, chain, and Britain's Tesco PLC is expected to begin rolling out 100 U.S. stores in the Southwest later this year. Great Atlantic & Pacific Tea Co., once a symbol of the big chains' decline, recently acquired rival Pathmark Stores Inc. for $700 million.

Scott Frondorf, a 44-year-old Green Township, Ohio, software executive, and his wife now do more of their food shopping at a local Kroger store that offers expanded produce and "boutique-like" seafood, cheese and wine. The couple still shops occasionally at a huge warehouse market, but "momentum is definitely in the Kroger direction," says Mr. Frondorf.

Many of the chains are still learning to sidestep Wal-Mart. They are cutting back on drugs and health and beauty products, which are Wal-Mart strengths, to stress fresh produce, higher-quality meat and easy-to-prepare foods. Subdued lighting and high-end selections buttress the nonsupercenter experience. Instead of the rows of aisles with commonplace brands, the supermarkets are adding tables providing ingredients for planned meals, luring the kind of customer who shops for dinner instead of stocking up on groceries once a week, says Paul Weitzel, managing partner at grocery consultants Willard Bishop LLC. Mr. Frondorf says he was pleasantly surprised recently to find Kroger carried the walnut oil he needed for a gourmet recipe.

Safeway Inc. has converted about half of its 1,755 stores into "Lifestyle" markets with wood floors, on-site bakeries and high-end private-label brands. The third largest food retailer after Wal-Mart and Kroger, it expects to convert all its stores by 2009.

Safeway has also invested in precise temperature controls for its produce and other perishable foods as they move from suppliers to stores. And it strives to find food its competitors don't offer, says Steven A. Burd, Safeway's chairman. For instance, it worked with growers to get individual-sized watermelons two years before others. It also works with a single meat supplier to offer its own brand of tenderness-tested beef. The business picked up, says Mr. Burd, when "we started behaving more like a consumer packaged-goods company."

Supermarkets "have come to the understanding they can't put cookie-cutter stores out there anymore," says Sandra J. Skrovan, a senior vice president at TNS Retail Forward.

Safeway offers prepared foods.

Kroger has an outlet for every consumer: urban no-frills stores that stock a limited set of groceries at ultra-low prices; conventional supermarkets and larger stores with housewares; and stores aimed at upper-crust shoppers that offer more produce and prepared foods.

David B. Dillon, Kroger's chief executive, estimates the Cincinnati-based chain gained share last year in 26 of the 32 areas where it competes against Wal-Mart supercenters. "They continue to grow, continue to build, continue to have impact in the market. But in the face of that, so do we," Mr. Dillon told analysts recently.

Becoming more competitive on price has meant skimpier margins. Kroger's gross margin, or profit after product costs, slumped to 24.5% at the end of last year from 27.7% at the end of fiscal 2001. Safeway's gross margin was 28.8% last year, down from 31.1% in 2002.

Wal-Mart hasn't lost its zeal for the food business. It opened 276 supercenters in the U.S. last year, helping boost its share of the U.S. grocery business by one percentage point, to 15.3% (19% including its Sam's Club wholesale unit), according to a JP Morgan estimate.

Wal-Mart plans to build about 200 new supercenters this year. Neil Currie, a retail analyst at UBS Securities LLC, says the new stores will add significantly to the square footage Wal-Mart devotes to food. "The Wal-Mart issue isn't going away," he says.

But Wal-Mart is no longer viewed as invincible. The company doesn't provide details of comparable-store food sales other than to say that such sales rose "in the mid-single digits" in the first quarter. Overall, same-store sales were up just 0.7% for the fiscal first quarter ended April 30.

Several years ago, Wal-Mart began experimenting with a smaller format store to penetrate urban markets. But these Neighborhood Market stores have struggled with tepid returns, according to analysts. Wal-Mart opened just 12 last year, down from 21 in 2005. "We're very satisfied with the performance of Neighborhood Markets," Eduardo Castro-Wright, head of Wal-Mart's U.S. stores division, said after the annual meeting last week. (Mr. Castro-Wright is a board member of Dow Jones & Co., publisher of The Wall Street Journal.)

Burt P. Flickinger III, a retail consultant, says Wal-Mart's price advantage has narrowed in the past few years as supermarkets have cut their prices and shoppers have discovered they can save money by cherry-picking supermarkets' weekly specials and lower-priced staples. At the same time, a corporate decision to reduce inventories means Wal-Mart has more trouble keeping shelves stocked, he says. A Wal-Mart spokeswoman responds that she is "not aware of any particular out-of-stock issues" in the company's grocery stores.

In Houston, Dave Baldwin says that too often the Wal-Mart supercenter near his house is out of favorite brands like Scope mouthwash and Lever body wash. "Try to find a light blue-cheese salad dressing; it isn't there. Go to Kroger, and it's all over the place," says Mr. Baldwin. He adds that the frustration of finding out-of-stock shelves has him buying more at Kroger and Walgreen's.

-- David Kesmodel contributed to this article.

__._,_.___