If you want to increase sales and protect your market share, you must take business away from competition. High unemployment, a slow growth GDP and low inflation have eliminated three sources from which to grow sales.  Too many businesses ignore competition.  Knowing your competitors strengths and weaknesses enables you to compete more effectively, serve your customers better and strengthen your ability to increase your sales. Plus, you can minimize the effectiveness of competitors promotional tactics. Customers in general shop multiple stores.  If you want customers to spend more of their disposable income in your store you cannot ignore what competition is doing.  Knowing what your competitor is doing is part of the responsibility of managing a business. What should you know about competition? What is their price position in the market in each department of the business? What “A” features, price and item, do they run each week? How many items do they advertise in total?  How many pages of advertising do they use? What do they promote on their web site? How else are they promoting their business? What are the quality standards they sell in the perishable departments? What is the variety count in the perishable departments? How many price signs do they have in each aisle in their store? How often do they rotate promotional items in their wall of values and end caps?  What are the price points on their end cap items? What are their signature items?  Are they having unusual success with any item or department? Why do their customers shop their store? How many part time and full time employees do they have? Do they have out- of- stock issues? What is their price spread between national brands and private label? How many customers are in line to check out?   How many checkouts are running at peak selling times? Do they receive new items before you? Is there a specific product category which they  promote? Do they offer special services? What non-profit organizations do they support in the community? Does their assortment reflect a strong ethnic presence?   Once you have gathered and recorded the information on your competition a schedule should be developed to keep this information updated.  Most of the information gathering can be delegated.  However, the Store Owner/Manager should walk competition weekly. The objective of gathering this information is to enable you to adjust your … [Read more...]