Edge Retail Academy Blog

What’s Trending

Edge Pulse and Aggregated Data

At The Edge Retail Academy, we aggregate data from over 825 stores, through Edge Pulse.  This allows us to give you up-to-date and meaningful reports and stats.  Take a look at some of these stats below…

Bridal Product

Includes Diamond Engagement Rings, Diamond Wedding Bands, Diamond Loose

3 sales charts

How do your Bridal Product sales compare to the Average Store sales?  This aggregated data indicates an increase in sales by 9% with an increase in the average sale being $2,202 and average discounting down to 26%.  Fantastic News!

Diamond Jewelry Product

Includes Diamond Fashion Rings, Diamond Earrings, Diamond Pendants, Diamond Necklaces, Diamond Bracelets and Diamond Other

3 sales charts

How do your Diamond Jewelry sales compare to the Average Store sales?  This aggregated data indicates an increase in sales by 15% with an increase in the average sale being $1,273 and average discounting down to 30%.  Wonderful News!

Pearl Product

Includes Pearl Strands/Necklaces, Pearl Bracelets, Pearl Earrings, Pearl Rings and Pearl Pendants

3 sales charts

How do your Pearl Jewelry sales compare to the Average Store sales?  This aggregated data indicates an increase in sales by 4.7% with an increase in the average sale being $323 and average discounting down to 24%.  Spectacular News! 

Discounting this Holiday Season

Tis the season that everyone wants a “great deal”.  Remember to tell your clients that you are not interested in being the lowest price, only the best value this season!

Provide the clients with the features, benefits and quality of the product, along with a wonderful experience, professional packaging and display.  All of this, should equate to an irresistably different experience with your brand, and something the client is excited to tell their friends and family about!  This will provide a winning situation for both the client and for your bottom line.

What’s Trending

Edge Pulse and Aggregated Data

At The Edge Retail Academy, we aggregate data from over 815 stores, through Edge Pulse.  This allows us to give you up-to-date and meaningful reports and stats.  Take a look at some of these stats below…

Diamond Product

Includes Diamond Fashion Rings, Diamond Earrings, Diamond Pendants, Diamond Necklace and Diamond Bracelets

3 sales charts

How do your Diamond Product sales compare to the Average Store sales?  This aggregated data indicates an increase in sales by 17% with an increase in the average sale being $1,236 and average discounting down to 32%.  Great News!!

Gold Jewelry Product

Includes Precious Metal w/o Stones Fashion Rings, Precious Metal w/o Stones Pendants, Precious Metal w/o Stones Bracelets, Precious Metal w/o Stone Earrings, Precious Metal w/o Stones Chains

3 sales charts

How do your Precious Metal w/o Stones sales compare to the Average Store sales?  This aggregated data indicates an increase in sales by 24% with an increase in the average sale being $305 and average discounting up slightly to 34%.

Discounting this Holiday Season

Tis the season that everyone wants a “great deal”.  Remember to tell your clients that you are not interested in being the lowest price, only the best value this season!

Provide the clients with the features, benefits and quality of the product, along with a wonderful experience, professional packaging and display.  All of this, should equate to an irresistably different experience with your brand, and something the client is excited to tell their friends and family about!  This will provide a winning situation for both the client and for your bottom line.

What’s Trending

Edge Pulse and Aggregated Data

At The Edge Retail Academy, we aggregate data from close to 850 stores, through Edge Pulse.  This allows us to give you up-to-date and meaningful reports and stats.  Take a look at some of these stats below…

Bridal

Includes Diamond Engagement Rings, Diamond Wedding Bands, Diamond Rings Other, Precious Metal w/o Stones Wedding Bands, Sterling & Alt. Metal Wedding Bands

3 sales charts

How do your Engagement Ring sales compare to the Average Store sales?  This aggregated data indicates a decrease in sales by 1.5% with a decrease in the average sale being $1,164 and average discounting down to 28%.

Graph

Family Succession

by Mark Kippenberger

Independent jewelry owners are predominantly owned / managed by baby boomers.

Consequently, the issue of business succession is a process looming ever larger for many independent jewelers. The issue is not going away.

For those family business owners lucky enough to have “next generation” kids already part of the business & willing to some day take over the business, your successor may be chosen, but typically many handover questions remain.

Traditionally a succession process has revolved around the transaction itself. Today succession starts a long way before any transaction, and begins with the all-important transition of management.

Is your family successor sufficiently skilled and experienced to continue to build business value or does the family risk erosion of business value? Does your successor have the appropriate management style to grow, motivate and build your store team? If the answer is ‘no’ to either question, you may want to build a grooming plan for the successor, including desired outcomes and measures to monitor progress.

The grooming plan for your successor would look something like this:

  1. Make sure you are truly ready to retire!
  2. Groom the business, so it is ready for the next generation to take it over successfully – make it the healthiest possible, to give them the best chance to thrive!
  3. Call a family meeting to discuss the succession
  • Respect, compassion and discretion are all key elements of these conversations
  1. Are there other family members not in the business that need to be considered?
  2. Clearly define each family member’s role moving forward – take into consideration their strengths and weaknesses, so both they and the business is set up to succeed
  • Keep leadership, professionalism and communication skills in mind
  1. Set up an organizational development chart
  2. Create employment contracts
  3. Talk about money/inheritance – don’t avoid these topics
  4. Work with an independent advisor to help with these plans and conversations if needed

As advisors to independent jewelers, the Edge Retail Academy team take a collaborative approach that includes interviewing family members from both generations. We assist the Founder generation and consider & define a series of guiding principles that are designed to clarify their thoughts on management transition, phase down scope for the founder leading up to a transition with detailed funding plan attached.

The inter-generational family succession is not a quick process, but needs to reflect the compromise between the founder’s aspirations and “next generation” expectations with a series of specific actions.

If you would a complimentary conversation about your succession plans or feel you need some additional strategies to help you achieve the best outcome in your succession planning, please reach out to The Edge Retail Academy, and we can help! Contact Becka Johnson Kibby at Becka@EdgeRetailAcademy.com or 1-877 569-8657, Ext. 1 today.

Make the Most of Your Fast Sellers

by David Brown

 

Maintaining your best selling inventory is, without doubt, the most critical area of your inventory control. Fast sellers are often only 5-20% of the average stores inventory but can be responsible for generating up to 80% of all storewide sales. Getting them back isn’t just important – it’s a necessity.

The crucial factor that is ignored is just how big an impact losing a few fast sellers can have. Let’s illustrate with an example:

Items in store No of items in-store % Unit sales %
Fast sellers 500 10% 3000 75%
Slow sellers 4500 90% 1000 25%
Total items 5000 100% 4000 100%

 

This typical store has 10% of its inventory as good (fast) sellers (500 out of 5000 items). These good sellers are accounting for 75% of all store sales (3000 of the 4000 items being sold).

What happens if this store only reorders its fast sellers at the end of the month?

Let’s assume it sells, on average 10 items per day. If we know that fast sellers represent 75% of items sold then we can safely assume that 7 of the items (lets round it down to keep it simple) sold each day are fast sellers.

At the end of the month our sample store will have sold 210 items (7 items per day for 30 days) none of which will have been reordered. Let’s have a look at how the number of items in-store will appear now:

Items in store No of items in-store % Unit sales %
Fast sellers 290 6% 3000 75%
Slow sellers 4500 94% 1000 25%
Total items 4790 100% 4000 100%

 

With 210 items sold and not reordered back the number of fast selling items for any customer walking in has dropped to only 290 pieces – or around 6% of the total inventory. Let’s put some dollars on this – imagine the original 500 items represented $50000 of saleable inventory. Let’s assume that the 290 items remaining represents $29000 of saleable inventory. You’ve just deprived your customers of $21000 (at cost) of good inventory to choose from – that’s $42000 retail value at keystone.

If your best selling selection has dropped by 40% (500 down to 290) then what are your sales in danger of dropping by? You guessed it. 40%! You’ve just taken away 40% of the selection that matters so the chances of them buying have got to drop also.

“Oh but they’ll just buy something else” you may say.

Let’s assume you’re average customer comes into your store 4 times per year, and the average length of time that your aged inventory has sat there is 18 months. That means your average customer has seen that “something else” six times already and has decided not to buy it. What are the chances that it’s suddenly the answer to all of their problems when they see it for the seventh time?

There are a few critical factors that make looking after your fast sellers all the more profitable:

  1. Send the reorders regularly. It’s one thing to be reordering fast sellers but don’t sit on those orders too long. We see many stores who reorder weekly or evenly monthly. Reorders should be processed daily for high volume items. The cost of a little freight (that should be factored into the cost price anyway) is nothing compared to the lost profit if you can’t sell it. Look at your daily sales report and get those fast sellers straight back in. Think of it this way – how can you sell more than 12 in a year if you only reorder monthly?
  2. Get it back on the floor within 24 hours. Nothing is worse than reordering daily and having the item arrive overnight to then have it sit in its parcel for a further 3 days –then the staff take another day to get it ticketed and on the floor. Make sure everybody knows how critical these key pieces are and give them the VIP treatment. Don’t leave them in the ‘coach’ queue when they deserve business class check-in!
  3. Maximize the mark up. There are plenty of dogs in store that you will have to special to quit. The profit you make each year is dependent on your fast sellers. Don’t discount them when you don’t need to and look at increasing their mark up if demand warrants it. The customers will soon show you the price the item is worth. When it comes back in, try putting a few more dollars on the retail price – you can always bring it back down. Jewelry retail is very much a case of supply and demand and if demand is high (read a fast seller) then prices can warrant a premium. The best example of this is Valentines Day. Would you expect to pay the same for a dozen red roses then as you would on May 21st? Of course not. Florists meet the market price and you need to do the same. Putting the same mark up on a fast selling item as a slow moving one does not make sense. Sensible retailing is more than just applying a ‘cost plus’ mentality to each and every product.
  4. Keep them front and centre. Your best sellers need the prime locations in-store where they are seen by the maximum amount of people. These are the pieces that will drive sales. Give them a chance to flourish in your best foot traffic areas.

If you would like ideas and strategies to ensure you have the healthiest inventory picture, going into the 4th Quarter, please contact us and we will help you ensure more success during this important time of year. 877-569-8657, Ext. 1 or Becka@EdgeRetailAcademy.com

Webinars Available for Holiday Sales Training

 

The Holiday Season will be here in the blink of an eye…and as you know, the last quarter of the year doesn’t happen by chance! With a little planning and sales training, you are giving your store associates the chance to celebrate at the end of December.

The Edge Retail Academy has close to 50 pre-recorded webinars available to get your staff in top shape…and NOW is the time to start your training.

These webinars are available 24/7 and can be viewed by your entire team, from any computer or tablet (store or home).

For only $295 (and 6 months to utilize these effective strategies), you have almost 50 training meetings taken care of for you!

  1. Watch them together as a team
  2. Have your associates watch them on their own
  3. Delegate specific Webinars to different team members and let them share the highlights with your team

If you are interested in purchasing access to all of these Webinars, for the one low price of $295, please reach out to the Edge Retail Academy at: Becka@EdgeRretailAcademy.com or 877-569-8657, Ext. 1.

We wish you a very successful upcoming Holiday Season!