In the excellent article “Luxury Institute Reveals 7 Major Improvements Store Managers Recommend to Drive Sales Performance Right Now,” Milton Pedraza, CEO of Luxury Institute, LLC, shares results of an intimate focus group he conducted with store managers of premium and luxury brands and shares their best practices and recommendations to improve sales.
…luxury and premium retail store management today is configured for rigid Industrial Age operational efficiency, rather than highly-adaptive, relationship-building effectiveness.
– Milton Pedraza, Luxury Institute
The seven improvements include:
- Store teams desire to be more relationship-centric and want to be freed from back-office tasks.
The suggestion is to separate back-of-house and customer-facing staff. This way your sales associates can do what they do best – build relationships with your customers.
- Select and maintain the right-sized team to drive superior results.
Managers shared that 40% of their employees are poor performers. Make sure you’re hiring the right people! When I worked at Tiffany & Co., we moved away from hiring associates based on their experience in the jewelry industry, to using a pre-hire assessment to find those associates who best demonstrated the personality traits and behaviors we valued.
- Better, smarter, and faster ways to manage inventory and client data are needed right now.
- Teaching fundamentals once a year is great, but what is really needed in stores is coaching on a much more frequent basis.
Learning is a process, not an event. Managers must become part of the training process in order to support, encourage and sustain the learning. But that means managers may need help in developing their coaching skills. Take a look at a simple coach-the-coach program I outlined in an earlier post.
- Use social media and other tools to connect with millennials and drive them to stores.
- Empower local innovation since store teams know clients better than anyone else.
- Compensation is fair, but the goals are sometimes not.
Though luxury store results thus far for 2016 may be less than outstanding, the collected wisdom from these store managers can help you refocus, revamp and revive your store’s approach to luxury sales.