Five critical areas independent retailers must—and can—master to be successful

I can hardly believe that I've been in the Christian retail industry for more than 20 years. For half of that time, I had the pleasure of operating a Christian store, overseeing several stores and working at the home office of a national chain.

I came to the Munce Group 10 years ago because I was energized by the challenges and opportunities that faced independent Christian stores. I'm always encouraged by the independence that these independents exhibit—however, when they come together to get behind a marketing campaign, a cause, a new product release or an event, amazing things happen.

Certainly our industry has changed in my 20-plus years. Economic challenges, consolidation and competition have taken their toll on chains and independents. And yet, in these past two decades, those same challenges have provided opportunities for growth for some independent stores.

As I look back, here are some of the key areas in which I've seen independent retailers struggle, but also thrive with the right strategies and systems.

EXPECTATIONS

It is crucial to know and understand what your customers want and expect from you.

While we consistently hear of what is happening nationally with the economy, we must understand that our industry is built primarily on the local economy. Stores that talk to their customers and other retailers and read the local business section are generally succeeding.

Online forums like our own "Munce Talk" and Christian Retailing's online forum can provide an "online retailer roundtable" where stores can connect with each other to share trends and solutions. In recent times, savvy stores have started using social-media services such as Facebook and Twitter to communicate and build relationships with their customers. This helps them identify what is really affecting business and shopping behavior.

Having a local "social" connection with your customers and community will help you know key areas that affect your business—such as unemployment, inflation, competition, marketing, product selection, product availability or other influences.

INVENTORY

More than ever, it is important to pay close attention to your inventory levels.

Many surveys suggest that one of the main strengths and advantages of independent Christian stores is the selection of products there. Most general market retailers cannot—and will not—stock the selection of books and music that your store will.

In recent years, many key suppliers have started providing a core-inventory report. Work with your local sales reps from those key suppliers to ensure that you're in stock on the core inventory. Recognizing how necessary it is to be on top of this aspect of business, we have begun offering inventory-control training specifically to help stores improve their performance.

It is difficult for an independent retailer to have the time and resources to dedicate to inventory control. But I have seen how an inventory-control system like Above the Treeline can provide the necessary reports and analysis in a fraction of the time it takes to do physical inventories or read a handful of various reports.

Once a store has identified its core inventory, the owner can mark down, clearance—offer or return products that are just taking up shelf space and critical inventory dollars.

Some independent retailers are hesitant to bring in new product—we get comfortable with the old product on the shelves; somehow we think that we've invested our money and it doesn't matter if it sells or not. But if a retailer can free up the inventory dollars from the old stuff, investing in new products and core products is much easier.

Through our experience I remain convinced that if, in general, independent Christian retailers have the time and resources to focus on replenishment, they can explode in sales.

PROSPECTING

While reaching your active customer base continues to be a must, retailers also need to reach beyond those engaged shoppers and pursue new customers.

As we review our member-store sales performances, we see stores that have shown an increase in sales are the ones that have purposefully gone after the church market. Whether it has been carrying a few basic items or jumping into carrying the full line, there is a recommitment to working with the churches.

We have also noticed stores utilizing social media and Web sites and going after niche customer groups such as the Spanish-speaking community and consumers in urban areas. Also, many of our stores have indicated that going after "life events" such as baptism, first communion, confirmation, babies, weddings and grief and encouragement needs have attracted new customers.

While new products are always releasing, there are a few core products for grief and encouragement that are best-selling and the local Christian store should never been without them. Take a complimentary copy to your local independent funeral home or drop one off with a few of your area pastors.

VALUE

When the economy goes soft, many consumers are interested in products with a high-perceived value.

Of course, we believe that Christian products have an "eternal" value. In earthly terms, value is seen by the customer, not just because of a low price, but in a combination of the quality and the ticket. We have seen many stores that have increased their bargain and remainder selection also have grown their overall sales.

Effective merchandising is important. Use tables, endcaps and your cash-wrap areas to communicate value. Set up a table and cover it with a bright yellow tablecloth. Stack some closeout products or great buys from a vendor. A handwritten sign can say to shoppers, "This is just in and such a great deal that we didn't have time to make a professionally done sign."

And finally, featuring the right product at the cash wrap is an excellent way stores can increase the customer's total purchase.

TRAINING

Do not overlook the need to train staff to sell the benefits of the products—not just the features.

Customers will be more willing to purchase a product if they can associate a benefit rather than just a feature. Focus on a few key items for each selling season and equip staff members to be able to explain the benefits.

What are the benefits of this product? Will it enable purchasers to be better parents? Will it help them communicate their faith more effectively? Will it enrich them by enabling them to apply the Scriptures more efficiently in their personal study?

BE ENCOURAGED

Though business continues to be tough, retail indicators are showing great hope for the remainder of this year. And, do not forget the reason independent Christian stores exist—we have the good news of the gospel woven throughout the products we represent. So be encouraged and stay the course!

"May the God of peace, who through the blood of the eternal covenant brought back from the dead our Lord Jesus, that great Shepherd of the sheep, equip you with everything good for doing his will." (Heb. 13:20-21a, NIV).

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