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It's Almost Here!
It's hard to believe that we need to be thinking Back To School and Fall/Winter already, but it is just around the corner. For those of you who have been around long enough you know just how busy it is going to get over the next 3-4 months. The busier you get, the less time you will have to plan, so now is the time to do so. When laying out plans for the coming months it is important to look at what we are doing to ensure we continue to stay focused on our primary objectives for the year 1.) Improve Customer Count, 2.) Improve Inventory Management, 3.) Improve Customer Experience.
1. Improve Customer Count - For some stores Back To School starts in July and we are very excited to roll out the Back To School Event that was loaded into your constant contact account earlier this week. This is an excellent opportunity to increase traffic into your store early in the season. This event, like our others, is focused on driving traffic to your store without discounting your product. Full price sales are what we need out of our newest inventory and this event should help you do just that. (See below for more details) Also, be sure to continue to maximize your use of Receipt Staplers, In Store Signage, Constant Contact, and Facebook over the coming month. Keep reminding your customers of the amazing deals you have for the changing season. Three to four Constant Contact emails per month and multiple daily posts on Facebook are a good starting point to ensure your customers stay top of mind during this important time.
2. Improve Inventory Management - In Season Clearance Update One important aspect of improving inventory management is the implementation of the In Season Clearance Program. We are seeing very positive results from the stores that are participating in the program. The thing that stands out the most about the In Season Clearance Program is, stores that are actively marking their products in accordance to the program are the same stores that are seeing the greatest growth in customer counts, buys, and used sales.
Approximately 40% of stores are now utilizing the In Season Clearance Program to more effectively manage their inventory. The numbers support that these stores are definitely experiencing customer count growth, buy growth, and sales growth above the systemaverage. Of the 40% of stores that are on the program, the average customer count growth is 4.5%. For the 60% of stores that are not on the program the average customer count actually shows a increase of 2.4%.
3. Improve Customer Experience - With our busiest season approaching, it is critical that everyone understands the importance of a positive customer experience. Often times that experience starts with the buy process. Is your store a convenient place to sell product? Long wait times and return trips to your store often deter people from repeat selling and in turn your sales are negatively affected. Put yourself in your customer's shoes, would you make two trips across town to make $25? We are all busy, but unfortunately being busy is not an excuse our customers are willing to accept. Keep in mind that often times we are dealing with the three most important things in our customers lives. We are dealing with their money, their kids, and their time. If they feel we are not respecting any of those three things it sets the tone for a bad experience. A well trained staff understands just how important every transaction is. Plan your staff meetings for this busy season today.
Welcome our Newest Once Upon A Child FOM!  I am happy to officially announce that Angie Banaszewski, our newest Field Operations Manager, will begin supporting Region 7 effective immediately. Angie started with Winmark in March of this year and has completed both weeks of Franchisee training. In addition, she has had the opportunity to learn from, and travel with, the other Once Upon A Child FOM's. Angie comes to us with 10+ years of experience with the Abercrombie family of stores where she was most recently a Store Manager for Hollister in the Minneapolis area. Prior to her role with Hollister, Angie held a number of positions within the Abercrombie family including store manager of their Flagship Gilly Hicks store in London, England where her store served as the training grounds for all of the Gilly Hicks stores in England. During her time with the Abercrombie family of stores, Angie has developed a strong skillset focused on communication, strategic planning, organization, problem solving, store presentation and creating a positive store culture. Prior to her roles with Hollister, Gilly Hicks and Abercrombie, Angie attended and graduated from the University of St. Thomas University in St. Paul, MN. I am confident Angie will hit the ground running and will be able to give some great insight based on her past experiences and what she has already learned in her travels to other Once Upon A Child stores. |
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CAP Regional Overview - June
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June CAP numbers came in with a 6.2% increase in overall sales. For the 4th consecutive month, and 5 out of the first 6 months of the year, the system has shown an increase in sales. Region 2 (South East) was the standout region in terms of sales,coming in with a 9.6% increase. It is also important to point out that Region 2 had a customer count increase of 6.9%. Similar to what we have seen over the past 6 months, those stores and regions that have a customer count increase are the same stores that are seeing the greatest growth in sales.I would also like to point out that Region 2 has 88% of the stores participating in the In Season Clearance program.
The key to growth in the 3rd and 4th quarter will be our ability to get new customers into our stores. CAP is now showing YTD system sales with a 6.8% increase. As we move through July, keep in mind that the Youth category on average represents 20% of total sales in the month. In August that number swells up to 26% of total sales. In July the second strongest category is Accessories (think shoes) representing 18% of total sales. In August Accessories produces 17% of our total sales. Those two categories alone are producing 38% of our overall sales in the month of July and 43% of our sales in August. When it comes to replenishment and space allocation this should be top of mind for July and August. If you have not carved out some extra space in your store for the Youth category over the next two months, reach out to your FOM for any tips they may have.
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Numbers  |
The following results are now posted on the Extranet under Sales Performance > 2015 Sales Performance Reports.
Click here to see what region you're in.
U.S. Top 51) 20344 Minney $960,961.40
2) 20652 Yanda $801,255.30
3) 20629 Krieger $759,988.36
4) 20716 Tomashek $731,337.97
5) 20110 Burtner $721,558.60
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Canadian Top 51) 20675 Henderson $593,658.01
2) 20256 Wright $572,772.91
3) 20622 Eccles $559,765.89
4) 20310 LeBlanc $515,458.49
5) 20213 Wright $505,225.01
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Top 5 YTD % Increase
1) 20910 Kot 86.6% 2) 20894 Jones 62.9% 3) 20429 Gaer 55.2% 4) 20858 Camacho 42.8% 5) 20456 Reich 41.0%
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From The Operations Desk |
 Clearance is in its final phase and visions of school buses dance in our heads. Back to School is a season all in itself and runs from mid-July to early September depending on your area. Know your school start date(s) - so you can be prepped. Does your state have a Tax-Free weekend or period? Yes, another aspect to factor in. The focus needs to be on the floor transition immediately following the end of your clearance. - Pull and donate your clearance. Clear your floor so that full retail product can fill in. Hanging onto product that is struggling to sell even at a buck will hurt your full retail product and thus sales potential. Provide your accountant with the donation amount to help you at year end on your taxes.
- Prioritize your time - Youth and Preschool are the categories that dominate during this period, so transition these sizes first.
- Ensure your back stock logs are up to date and your storage areas organized now - you won't have time later.
- Don't forget your labor - are you in a position to handle the volume? Staff to what you want to do in volume, not what you did last year. Are you trending up for the year in volume? Make sure you have the staff hired to maintain that growth and service standards. It's a critical time for a hit or miss on the customer experience. Customers simply don't care that "you are busy". They expect the same level of service every day.
Talk to your FOM about your best strategy to navigate your specific timelines and readiness. Your CAP can help you see how your business flows during the next couple of months by category. Managing this time of year up through October has a significant impact on your sales for the year. These 3 months account for approximately 32% of your total year sales and it's at full retail. |
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01 In-Season Clearance - Label June (06) product
01 Canada Day
04 Independence Day (U.S)
10 After hours - change over to Dollar days signage
11 Begin Dollar Days
25 Host you Grab Bag event
27 Plan your F/W floor transition
27 Review August's Operation Calendar
31 In-Season Clearance - Group and mark down May (05) product for 50% off
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01 In-Season Clearance - Label July (07) product
03 Civic Holiday (Canada)
14 Begin promoting your Halloween Event
24 Review September's Operation Calendar
29 Host your Halloween Event
29 Begin Promoting your Coat Kick-Off
31 In-Season Clearance - Group and mark down June (06) product for 50% off
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01 In Season Clearance - Label 08 product
03 Order red attachers for use beginning November 1st
04 Begin promoting the Coat Kick-off Event
07 Labor / Labour Day
18 Host a Coat Kick-off Event (1-3 day event)
22 Yom Kippur
28 Review October's Operation Calendar
30 In-Season Clearance - Group and mark down July (07) product for 50% off
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Opportunities
I purchased 4 clearance items on 5-30-2015 for my grandson and today I wanted to EXCHANGE 2 of them. I was told by the sales people I could not. they said FINAL SALES ONLY was on the receipt. I did not notice until they showed me. I didn't want any money back just even exchange or UPGRADE! I bought plenty from the store where this took place and where I live. I have bought sneakers from there that were not on clearance and tried to exchange them for a bigger size and they gave me a hassle. I donate and buy.
I prefer another store with better service and staff - it is about 45 minutes away, but I will burn the gas to go there. I asked one lady if I bought ALL CLEARANCE items they had in the store would I be out of all my money, THEY SAID YES, MORE OR LESS!!! REALLY? so I will be contacting the BBB and all sites that a review/comment can be left on. ALL FOR $5 WORTH OF EXCHANGES. THIS STORE SUCKS!!! Many people complain about this store, we shop there because we like the company and the convenience.
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| Click here to see the Gold Standard
Award Winners For 2015! |
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Solutions
Finding ways to say yes is so much easier (and fun) than saying no. Empowering your people to make exceptions makes for happier customers and happier employees. Let's face it, nobody wants to have a negative confrontation with a customer...employees are often less equipped to handle then more experienced managers and owners. The reality is none of us want them to happen. So what does "empowering" really mean? By definition it means "giving someone the authority or power to do something" "make someone stronger and more confident". Businesses have to make policy, but most have room for exceptions and with our return policy; this one is at the top of the list. So how do you know when to make that exception? When a customer is upset, it's a clue that this might be a good time to "take care of the customer". If the customer is not honestly trying to cheat you - it makes sense to meet their request. Even if there is something suspicious going on - making an exception may still be warranted and informing the manger or owner for them to form a strategy going forward, may make the most sense. We can always turn around and re-sell most items. In some cases reconsidering a policy may be necessary in the long run. For the short term, stop and think when a situation arises - Is this a good business decision? Given our low average retails the answer has to be yes as when you consider the example above - a customer was lost over $5. Certainly you can politely educate the customer for the future, by saying something like "Let me take care of you today" goes a long ways. The customer will be prepared in the future, but today you can make them feel special.
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| Kudos
Kim Burtner - Indianapolis, IN (Southport)
I was in your Indianapolis south location. I wanted to give a shout out to the staff at that store. I opted to wait for my items to be looked at. It was very busy and I waited for a little bit. But in that time of waiting I watched the staff. As busy as it was and with other customers children running around unsupervised the staff there kept smiles on their faces and were working hard at getting everyone's stuff sorted thru. None of the employees seemed to get frustrated and it was busy. They deserve some praise for a job well done. Very friendly hard working staff.
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Celebrations
 It's official! Craig and Tina McMaster won Best Consignment store in Westchester County. It was announced recently in the Westchester Family digital publication. This is especially exciting as this was the 2nd year in row...can they do it for a 3rd next year? We think so! Congrats to them and their entire team in Somers, NY. Million Dollar MilestonesCongrats to Bob and Melanie Minney as they crossed the One Million mark on June 6th. They kick off the season of milestones as more seek to exceed the million, 1.5 million and 2 million dollar marks. |
Advertising & Marketing
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Back to School Kick-Off Event  Introducing the new Back to School Kick-Off event! This event will allow stores to promote and kick off the Back to School selling season without discounting product. Each of you should have received the email announcement earlier this week. You can also see that email here. The full instructions for the event are available on the Extranet. Order the 23"x44" Window Sign from Safeguard by Team MHC. The Constant Contact template is available in your account to customize and send to your list. All other marketing tools are available to download from the Extranet.
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New Commercial Videos Available Two new commercial videos are now available to order and to use online. The first is titled First Year Part 2 and revisits our family from the First Year commercial that was released at Conference. The new commercial takes them into the store to talk about all of the great deals they find.  The second is titled Baby Talk. This commercial features a toddler, his older sister (who acts as his interpreter) and their mom. For this commercial we have given you the choice of 3 different endings. Go to the online ordering site or log on to the portal and go to Commercials from the Home page. From there you can click on "Preview Spots" to view the new spots. The new videos are also available on the Once Upon A Child YouTube channel and will be posted on the Once Upon A Child Facebook page.
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Social Media Educational Webinars  Are Instagram and Twitter right for your store? Winmark has partnered with PureDriven to create this educational webinar to offer insight into these social media platforms. You'll learn how they can be implemented into your stores' digital marketing strategy, what your business can do to improve your pages, and the advantages these offer over other social media platforms. A Twitter technician runs the show, which is followed by a short Q&A. Arm yourself with the knowledge to make the best decision for your store. To view the webinar, click here.
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NetworkingHave you ever attended a networking event? Networking is one of the most powerful marketing tactics, and most often it's free. You can chat with likeminded people in a more casual setting, expand your industry knowledge and get motivated. There is value in building a strong network of contacts and connecting with people in your community. It's one of the reasons we strongly focus on LSM each month. You can find events in your city by doing a quick Google search. Here are a couple sites to start: networkafterwork.com or meetup.com. Pick one event this month and go for it!
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Email Marketing Schedule |
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Tip: Stay top of mind and relevant! Remember, you have plenty of templates that you can reuse to promote your store-specific specials and events. Here are our recommendations:
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July Options
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August Options
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New - Back to School Kick-Off Event campaign
New - Shoes for Back to School campaign (coming soon!)
New - Fall Stock-up campaign (coming soon!)
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New - Halloween Kick-Off Event (coming soon!)
New - Tween Styles (coming soon!)
New - Tax Free Weekend (coming soon!)
New - Baby Safety Month (coming soon!)
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Have other campaign ideas? Let us know!
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Human Resources - Mobile Devices at Work: Pay, Privacy and Other Concerns
Employees increasingly rely on smartphones, tablets, and other mobile devices for both business and personal use. While this technology helps employees stay connected to coworkers, clients, and customers, the use of mobile devices at work can raise compliance concerns for employers. To address the challenges resulting from the increased use of technology it helps to take a proactive approach including adopting policies and practices that comply with federal, state, provincial, and local laws. Winmark provides an Employee Handbook template that includes a sample policy for Cell Phone and Social Media use as well as many other policy and procedures samples. To view or download the sample Employee Handbook login to the extranet under Human Resources - Employment Law. Click here to read FAQ's addressing mobile devices in the workplace.
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KDV - Does Your Business Have the Insurance It Needs?
There are many considerations to contemplate when planning for the sale of your business. One of the most important is the structure of the sale. The structure encompasses the legal transfer of the store and the resulting tax implications for both the buyer and seller. There are primarily two options for structuring the sale - a stock sale or an asset sale. In a stock sale, the seller is transferring their stock of the existing company that holds the operations for the store. Similar to a stock purchase on the New York Stock Exchange, a stock sale entitles the buyer to their respective share of the assets and liabilities of the company. As a stock owner you receive a share of the profits or losses that arise during your period of ownership, but you are also an owner of the existing liabilities and even potential preexisting liabilities of the company. So, while you may receive dividends... Click here to keep reading.
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