ETD: 985 1,000th Issue?; Measuring Retail Results; Last Call
for Research Sponsors.
E-Tailer's Digest
etd_post at gapent.com
Thu Jun 8 13:04:48 GMT 2006
E-Tailer's Digest --- Everything for the Retailer
Issue #0985 June 8, 2006
George Matyjewicz, Moderator mailto:georgem at gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
----------------------------------------------------------------
CONTENTS
[1] Greetings
[2] 1,000th Issue?
[3] Measuring Retail Results
[4] Last Call for Research Sponsors.
---------------------------------------------------------------
[1] Greetings.
----------------------------------------------------------------
Hi All:
I thank all who sent me comments about beyond
1,000 issues. I appreciate all your thoughts. I have some information below.
How do YOU measure results in your business? We
all know that same-store sales measures retail
performance in chain stores. What happens if
that goes away? What do you think?
Pam Danziger is making a last call for sponsors
for a new study by Unity Marketing. I personally
have obtained some of their studies and can say
they are well done. So, if you are in that field, consider this opportunity.
Now, let's get to everything for the retailer.
Sincerely
George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, LLC
mailto:georgem at gapent.com
http://www.etailersdigest.com
----------------------------------------------------------------
[2] 1,000th Issue?
----------------------------------------------------------------
I received quite a number of comments from list
members asking me to keep going after #1,000. All said basically the same...
You asked should you continue after issue 1000
I DO hope you decide to keep going ---
You are one of the pubs that is still there “from
the early years” --- many of us have moved on to other things
But I still read your e-zine every issue
Thanks for taking the time to keep this wonderful e-zine going
Carolin
Carolin & Bob Benjamin
The Benjamin Team
Gold Canyon and East Phoenix Valley Realtors
Cell - 480-201-3001 Fax - 480-288-6941
homes at benjamin.com www.benjamin.com
Realty Executives MountainView
+++ [Moderator's Comments] +++
We have been together for 8 1/3 years - twice a
week (now) since Jan 24, 1998, It was three
times a week for a couple of years. In the "old
days" it was different, since we were all
struggling with this new thing called
"etailing." We had to work together to learn how
to survive and prosper. Some of us did, and some didn't.
Today it's a new world. Some of the list members
weren't even around in 1998. They missed the boom
- both the explosion and the crash.
I will probably continue, but I want to consider
a new format. I have a few thoughts. Any suggestions?
George
---------------------------------------------------------------
[3] Measuring Retail Results
----------------------------------------------------------------
A century or so ago it was very easy to measure
retail results. At the end of the day, the
merchant looked in his pocket, and if he had
money, it was a good day. Today it is much more
difficult. How do you measure results in your business?
There was an interesting article in yesterday's
WSJ
http://online.wsj.com/article/SB114964478269273353.html.
It seems that #2 retailer Home Depot's stock
underperformed its archrival Lowe's. Same stores
sales - the most carefully monitored measure of
retailing performance - is the way we all judge
the performance of retailers. Lowe's has been
beating Home Depot in same store sales for 19 of
the past 20 quarters (5 years).
So what does Home Depot do? They decided not to
report same store sales! Home Depot explains the
move by noting that it increasingly is supplying
small businesses, and it's not simply a retailer
anymore. "We believe comp-store sales are
increasingly less relevant," says spokesman David
Sandor. To keep releasing the figure is "implying
that every sale at Home Depot stores is the same,
and it's not." He says the company will continue
to give out a wide variety of others measures and forecasts.
Same-store-sales disclosure isn't required under
accounting rules and the figure isn't a term
under generally accepted accounting principles,
so companies often play with the number.
Now many other retailers will follow suit. Many
investors believe same-store sales are not the
panacea, and other measures of profitability
should be followed, just as you would with any
company. How much bang for the buck does my investment produce?
Though flawed, same-store sales remain one of the
best yardsticks for understanding a retailer.
Here's the logic: Retailers can and do open more
stores, but investors need to know what the
underlying sales trends are. Retailers have high
fixed costs. They have to build or rent stores
and keep them open for business every day. Once a
store breaks into the black, every additional
dollar in sales should be highly profitable.
But some companies don't like reporting the
number frequently because every time it moves up
or down, investors over-react, making retail
stocks volatile. And as retailers mature, their
growth rates slow. Companies prefer to direct investor eyes elsewhere.
So what do you think? What is a good way to
measure retail results? How do you measure results in your business?
George
----------------------------------------------------------------
[4] Last Call for Research Sponsors.
----------------------------------------------------------------
Last Call for Research Sponsors....We are just
about ready to start the new study of art, wall
decor, picture frame and custom framing
consumers. Call me or let me know immediately if
you have any interest is getting in on this study
before it goes into the field.
Do You Need to Know about the Art, Wall Decor,
Picture Frame and Custom Framing Markets?
In 2005 the typical luxury consumer's spending on
art and antiques declined by nearly 40 percent,
down from an average of $14,671 in 2004 to $8,962
in 2005. Because the luxury consumers (household
incomes of $75,000 and above) represent the
primary market for today’s art and framing
marketers and retailers, Unity Marketing is
undertaking a new consumer insights study to
discover how the total market for art and framing
is changing in light of emerging competition for
consumers’ discretionary spending.
The traditional market for art is shifting as
consumers find better quality art reproductions
more widely available in home furnishing and
discount department stores at very attractive
prices. On the other hand, affluent consumers
are trading up to original art from cheaper
reproductions, as they view the art they display
on their walls as a collection, rather than simply decoration.
In the world of custom framing, new competitive
pressures are also at work. Craft and hobby
stores have encroached upon the lucrative custom
framing market with a vengeance. They offer
discount prices for custom framing services that
consumers perceive as too expensive in the small
‘mom-and-pop’ custom framing stores that used to
dominate the business. Further, ready-made
frames in an expanded range of sizes and designs
are giving consumers’ permission to do-it-themselves.
All these factors are coming together to make the
business of selling art reproductions and custom
framing more challenging. Unity Marketing plans
on conducting a new consumer insights study to
understand the new trends in this market and is
calling for companies to sponsor this important research study.
For more information, click this link:
http://www.unitymarketingonline.com/reports2/art/art_insights_reg.html
Unity plans to conduct the research and publish
the report during June-August 2006.
Pam Danziger, President
Unity Marketing
author of "Let Them Eat Cake: Marketing Luxury
to the Masses — as well as the Classes"
717-336-1600.
----------------------------------------------------------------
Links to follow
----------------------------------------------------------------
GAP Enterprises, Ltd. http://www.gapent.com/
E-Tailer's Digest http://www.etailersdigest.com
Interim Help http://interimhelp.com
Sophisticated Me http://sophisticatedme.com/
Marketing Your Web http://www.gapent.com/myweb/
Automated Press Releases http://www.automatedpr.com
More information about the ETD
mailing list