Where Is Retailing's Bold Management?

Fifty-eight Gottschalks stores, many being the economic heart of their town, being liquidated. Such a shame.  When is retailing going to be willing to take bold steps?  Are managements too wimpy?  Or is it too many "bean counters" and not enough merchants making the decisions today?

Before throwing in the sponge, did Gottschalks look at closing their stores on, say, the three slowest days of the week?  They could be open on whatever 4 days their own data shows their customers prefer to shop.  (And it may not be the same in every town.)  

What's outrageous about that?  Not only might they have reduced overhead by 25-35%, but their very best sales associates would have been available to customers almost all the hours the stores were open.  What a concept!  The best help on the best days for the best customers!

Instead, after 105 years of serving these smaller communities, Gottschalks is going dark full time.  And their towns are going even darker all the time.  Sad.  And maybe unnecessary.

Isn't there an organization bold enough to grab Gottschalks and try out this concept?

  

Retailing is Not Dead; It's Being Re-Invented!

"Four days, for savings, for you!"

Five-store Kitchen Kaboodle in Portland, Oregon has been a full-line, full-price kitchen and furniture retailer for 30 years. It's become a prominent and respected private chain.

But customers increasingly have been buying only the merchandise that's been discounted. And only at the times that suit them the best. Of course, that's the trend everywhere. So what can retailers do?

Effective March 6, Kitchen Kaboodle boldly switched to a 4-day week with everything off price!

Here's part of Kitchen Kaboodle's announcement of their new business model of "Four days, for savings, for you!"

"Shocking? Not really. As a locally-owned business, as your friends and neighbors, we feel a special need to give you what you want, these days more than ever. And who doesn't want the same great Kitchen Kaboodle stuff, at new lower prices? You don't want cheap steak, you want steak, cheap. To get it, just visit us Thursday through Sunday, or stop by anytime on the web. See you Thursday morning!"

By going to a 4-day week – closing all Mondays, Tuesdays and Wednesdays – Kitchen Kaboodle is cutting expenses by over 30%. By passing those savings on to customers, all prices on 100% of the merchandise are discounted all Thursdays, Fridays, Saturdays and Sundays. And none of their five stores are closing!

As Co-Owner John Whisler says, "We're offering our best merchandise, at the best prices with our best staff on the best days for shopping, all for our best customers. That's retailing for this 'New Normal.'"

See the Kitchen Kaboodle website for more info about their reinvention. For further details, call John Whisler at 503.241.4040.

Full disclosure: Outcalt & Johnson: Retail Strategists, LLC, the Co-Founders of The Retail Owners Institute, developed this reinvention concept for and with the Owners of Kitchen Kaboodle.