Retailer Shuts Shop – Why Retailers Fail


I was sad to read a story in my local newspaper, North Shore Times about a Glenfield hardware store McPherson’s Hammer Hardware, which is going to close in a couple of months. Firstly I as going to share a link with you, but the aforementioned newspaper has a system that requires you sign up to their digital version if you want to share a story, and likewise, probably if you want to read from a link. I do not provide links for my readers to sites like that.

I used to live in Glenfield and visit this story and I remember asking them how they stay in business. The owner, John MacPherson told me it was about community, having those little things that the big stores make you buy in bulk, advice on how to do things, friendly service, remembering people’s names, the little things that come with community retail.

The newspaper story goes on to quote that he has probably hasn’t been making a profit for 6-7 years, but hung in there. He points out that the DIY super-stores and Internet have changed the game and that even the major stores/chains suffer from sluggish consumer spending.

He’s not wrong, but the key word is change. I love the world of retail, I used to have the privilege go to the NRF in New York and FMI Connect in Chicago and bring back ideas to write about in retail magazines, share with my resellers and speak about at conferences around the world. This was important because many of our retailers couldn’t afford to go to those conferences, but learning new ideas, particularly from people who have proven experience, is how business evolves.

It doesn’t really matter what business you are in, you have to evolve to meet the demands and opportunities presented as society evolves. As John said in the North Shore Times article, “In Glenfield we had a haberdashery (incorrectly spelled in the newspaper, I had to look it up to find out what it was), greengrocer, butcher, it was a great mix”. It went on to say they were boom times.

So here’s the thing, it is still boom times for those businesses that want to keep up with the times. The problem that retailers used to tell me was that they didn’t have time to keep up with the times. They were too busy starting early in the morning cleaning the shop, doing stock takes, placing and chasing orders, talking to merchandising reps, ringing customers to say their widget had arrived, preparing the float and a myriad of other things. In hindsight, those retailers, from John McPherson’s Hammer Hardware in Glenfield, through to Borders and other retailers should have found the time to look at how some businesses were thriving, while others weren’t.

When they went on their holidays, they could have combined them with visits to businesses and conferences that showed how some retailers were managing in the new world of mobile and tablet, of connected customers. They could have seen new products that aren’t available in NZ, they could have combined bricks and mortar with online themselves. I appreciate how hard it is to run a business, I have run several businesses over the years and worked in companies from small to multinational and the common thread is that those who looked ahead continue to do well, those who looked to their original training and just repeated what they had learned, which may have been best practice in the 70’s or whenever, will have done well for a while, but aren’t there any more.

People still want to have experiential retail, they still want to see and touch, ask questions, they even want to see people like John McPherson stick around and stay in business, but they can’t advise him on what to do to stay in business and get back into the black.It’s tough, but the time to get ahead in business is when you are ahead and you have the resources to go and do some training, bring in a consultant, go attend a conference. I used to speak regularly at retail conferences in New Zealand and what was really frustrating was that the people attending were those that needed it the least, because they were looking ahead and staying up with the times. The ones that needed it the most didn’t go, probably didn’t read the specialist trade magazines, ask their suppliers for knowledge or go to the trade shows. They were too busy. Now they are either out of business or heading out. Is it too late, not necessarily, but it will be much harder, even to change the mindset. When things get tough, many go even farther back into doing what they used to do, even doing it harder. That’s not the answer.

Back when business was booming for people like John McPherson, Bob Dylan was singing The Times They are a Changing. He was so right. “You better start swimming or you’ll sink like a stone.” Listen to the lyrics, they are prophetic. But this is no different to 200 year ago. The times are always changing.

We are still buying all the things we used to buy and more. Some business models have been and gone, but others are growing in a big way. We are still a DIY country, that’s why we have the mega stores, but there is still room for specialists, room to be a community and have community involvement in business, there are so many opportunities. Whether it is classes at the back of the store teaching people how to do things, or a new section selling 3D printers and teaching kids how to make things, using location based mobile services to find people who are looking for what you have, supplementing your business by selling items you can’t afford to stock, online.

I’ll finish with a question. Why is it that I can buy a set of my favorite guitar strings online from a retailer in the USA, 75% cheaper than the same product in New Zealand? The local retailer will say that’s because the guy in the USA doesn’t have a shop to run. But the fact is they do, Elderly Instruments has a bricks and mortar store in Lansing, Michigan, they have bands playing in it, they have workshops for musicians, they just supplement that with online sales. I recently contacted them because I couldn’t get help from local retailers to fix a broken part on my Dobro. I had personal emails, just the same service that John provides in his hardware store and I’ve managed to repair it myself with the parts they sold me. Doing business with them was so easy. If I lived in Michigan, I would go and by from their store and I’d even be prepared to pay a little more, heck I’d buy more anyway just because I like doing business with them and they like what they do and know what they are talking about.

So I’ll finish on a saying that is one that has killed many a good retail business. “If it ain’t broke, don’t fix it.” Have a look around you right now and ask yourself how many of the things you take for granted would be there if everyone had said that back in 1970, let alone 1870?

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10 Things I haven’t been quiet about


I’ve had a few comments suggesting I haven’t been blogging much lately. When it comes to this blog and The Future Diaries I haven’t been prolific lately, but I’ve been pretty active on my SoLoMo Consulting blog.

So, if you’ve missed me, here are 10 things I’ve been writing about lately:

  1. Climate Change Refugees. This one on The Future Diaries where I was looking back from the future when all the expat Kiwis and anyone else that wanted a clean green, safe environment was hightailing it back to New Zealand. Interesting to see recent stats back up that notion with migration hitting a 9 year high with one of the biggest groups this year entering New Zealand was Kiwis who had been away for a long time. When fresh non-recycled water becomes a rare commodity, watch them all run to the bottom of the planet.

    Fresh drinking water that hasn't been recycled

    Fresh drinking water that hasn’t been recycled

  2. Usage Based Insurance. I’ve mostly called it PAYD or Pay As You Drive. This story today is about insurance companies using Fleet Management data to determine risk and charge premiums based on how safe commercial drivers, particularly freight companies drive. Makes sense doesn’t it. Fleet Management would also give insurance companies advanced and near real time geographic risk profiles.
  3. Planning your Thanksgiving travel. The weekend is upon us and it seems ironic that we get together to be thankful, but the process makes it one of the most stressful weekends on the American calendar.
  4. I’ve blogged a lot about your mobile knowing where you are and what you’re up to. Now your mobile is starting to know what building you’re in and which floor you are on and retailers want to know.
  5. 19 car manufacturers have got together to ensure that you don’t stop buying their cars because they have embraced location based services. You want the features but you don’t want to give up your privacy. This is becoming a very hot topic.
  6. Take away all the traffic lights and intersection controls and you end up with safer streets. Really? Well it seems to be working in some places.
  7. Hacking Traffic Systems. I copped some flack from a traffic engineer over this, who said it is an old story and DOT’s are way to smart to risk being hacked. Phew, I am very relieved. No illegal green-waves here!
  8. A smart car ITS corridor in Europe. It makes sense to try it somewhere. Driver-less cars should be tested in a safe environment first IMHO.
  9. How big do you think Virgin Atlantic’s new Google Glass check-in service will be at your local airport? It may be a breeze, but I think there will be a lot of breeze between people who will use it.
  10. There is always a story about someone who crashes their vehicle and says the GPS nav made me do it. Here’s one about a truck driver who drove into a public park in Milwaukee and blamed his nav.

So as you can see, my fingers haven’t been idle. Hopefully there’s at least one story here to attract your interest and maybe a comment.

3,000 Teen Deaths from Texting and Driving


A study done by the Cohen’s Children’s Medical Center in New York, revealed that drinking and driving resulted in the death’s of 2,700 teens in the US, compared to 3,000 from texting and driving.

How about a quick, honest but anonymous poll:

I was listening to the Peggy Smedley Show this morning while cleaning the bathroom and enjoyed some great interviews in her Distracted Driving Month series. The topics were great, everything from the value of reversing cameras through to why car manufacturers are putting social media technology into their cars.

Anyway, a subject that peaked my interest was comparisons of factors impacting on or causing accidents.Talking or texting on the phone is one that that police and others who examine the results of motor accidents look for by default these days.

Peggy quoted a study (can’t remember which university) where they found that people with a blood alcohol level of .08 performed better behind the wheel than people who were using their mobile phone. If you want more detail, listen to Peggy’s back shows on her website or on iTunes, the latest ones being about Debunking Myths about Cellphones and Driving.

Just putting that into context, most people think that dialing a number (I only dial on my hands-free via voice commands with  Siri, or not at all these days) or sending a txt isn’t a big deal. I see ‘professional drivers’ holding their mobile up to their ear pretty much daily. One would assume they are sober, and mentally alert. I was also going to say relaxed, but if they were relaxed, they probably wouldn’t feel the need to take a personal risk, let alone knowing they are breaking the law; so you could surmise that they are already distracted and their minds are not on the road. Yet the study showed that drivers using their mobile were more distracted and less able to perform than those who were at a blood alcohol level where, according to a Blood Alcohol Chart on Wikipedia, they were at the upper range and would be experiencing:

  • Impaired reasoning
  • Reduced depth perception
  • Reduced peripheral vision
  • Reduced glare recovery; and behaviors including
  • Blunted feelings
  • Dis-inhibition; and
  • Extroversion

SheepI really enjoy listening to music when I drive and I have a full subscription to Spotify. I love it. My iPhone FM Transmitter sends it to my car stereo, while charging my phone. I like that. I have been guilty of occasionally looking down at my iPhone for the name of an artist or to skip a track. Our maximum legal driving speed on motorways and highways in New Zealand is 100kmph. Often that is on highways where kids play or cycle on the side of the road. All it takes is for a ball to bounce onto the road, or wandering stock to change things in an instant.

So I thought I’d have a look at the numbers and went to the Unitarium online speed calculator. I worked out that if my eyes were on my phone for 3 seconds (doesn’t sound like much) whilst driving at a legal 100km per hour, my eyes would have left the road  and I would have been oblivious to what was happening on it for 30 meters!

Have you ever done that?

ways to track people or cell phones | My Blog


I have often blogged about devices and apps to help locate people who have conditions that could see them become disoriented, for example people who suffer from diabetes.

I have blogged a lot about tracking devices like bracelets, watches and other devices containing GPS.

This one on my SoLoMo Consulting page talks about using the free apps that often come with your Smartphone or are in many cases a free download. These apps like Find My iPhone are typically designed for if you misplace your mobile, or if you misplace it, however they can easily be used (with agreement) to locate your missing teenager, family member or other person you have a close relationship with.

When we had the earthquake in Christchurch in 2011, one of the very common stories I heard was about families that were separated and the angst when people couldn’t locate their partners or family members. This type of app is a ready made solution without having to purchase any other technology. Often in a situation like this, people can become disoriented and may not be able to easily advise others where they are. These apps will show their exact location on a map. What a great tool for Search & Rescue in emergencies, even looking for people underneath rubble, if their mobile still works.

Generally most people are never more than 20 feet away from their mobiles according to recent research. Have you set up an app like this on your mobile? Why not give the URL and password to your close ones. It could be the best 5 minutes investment of your time ever.

For more info on devices and apps for tracking people, check out some of my other blogs here and  here.

SoLoMo Consulting

See on Scoop.it – Location Is Everywhere

Cell phone GPS tracking isn’t illegal. You can see where everyone is by knowing their number here http://t.co/LUj8hYU7c9

Luigi Cappel‘s insight:

This is a quick and important read for anyone that doesn’t have smartphone tracking set up on the mobile.

Huge numbers of mobiles are lost or stolen every day, but the siple addition of an app can mean that you can locate it. Interestingly it doesn’t include the app I use, which is Find my iPhone. It not only allows me to locate it, but can wipe all data from it and make it unusable as well as set off a loud noise.

The other valuable thing is, as it says in this quick and easy to read story, is being able to find someone you are close to, who is missing, hasn’t turned up where you expected them. If you…

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On SNAKK Media, Derek Handley and Kiwi Entrepreneur Success


The Snakk Media AGM, appropriately held in the Sir Paul Reeves Building of AUT in Auckland last night, appeared to be a classic event, with typical investors, asking typical questions. However, in my opinion, it wasn’t, it was a meeting in a room made up of some of the finest minds in marketing and leading edge mobile technology.

SNAKK AGM

SNAKK AGM

I was very proud to see entrepreneur, Derek Handley, on the stage surrounded by other Kiwi business leaders and visionaries including Tim Alpe, Max Flanigan and GM, Andrew Jacobs who I met for the first time last night.

I’m sure the media will cover the story, but here’s my take; on a tangent. I have always believed in Derek, his family and team from the day I met them, many years ago as they were preparing to found The Hyperfactory. They were the classic start up and I admired their passion and enjoyed their company, because they were driven and they were passionate about the same things I was, and still am. I love the company of positive, can do, will do people.

Snakk has allowed Kiwi investors to invest in a company that may never do a huge amount of business in New Zealand, which is really exciting, because it is not an opportunity that comes up often. As was pointed out, 2 years ago mobile digital advertising spend in New Zealand and the UK was 1% of the total spend. Today in New Zealand (where I have been trying to educate agencies on location based marketing and Augmented Reality, the percentage remains at 1% and in the UK is now 23%. In Australia they have the third fastest growth in the world (sic) of smartphone and tablet users, so it is appropriate for their head office to be in Sydney.

There was a lot of discussion about the threat to live TV with so many people now streaming to their mobiles and time shifting. Snakk didn’t mention all the technologies, but I am confident that they have a lot of tricks up their sleeves so that people like me who watch a reasonable amount of TV, while using my iPad or mobile, and MySky, will also be able to receive the messages I want. 

Here’s where I get excited. I want, and assume you will too, my TV. When it comes to advertising, I’m a marketer, but I don’t generally like watching ads. I guess the main reason is because most of them are not relevant to me, or at least not relevant to me at that time. I want them when I am open to buy.

So here are some of the things that I wanted to hear (and did either directly or between the lines):

  • Profile. I want ads that match my profile. Having them appear on my third screen (my mobile or tablet) in conjunction with what I am watching, based on my interests is something I might welcome. If there is an interaction between my device and the TV program, then it may not matter if I am watching live or time-shifted, depending on my:
  • Context. A lot of the future of mobile advertising comes down to an app on my device knowing things about me. What I am interested in, where I eat, drink, play, get entertained. What I am interested in at certain times of the day or day of the week. Market food to me at a time I am likely to be considering a meal. Then of course there is:
  • Location. If my mobile knows where I am, there is so much more you can do. If I like coffee, I’m walking downtown and there is a cafe that wants my business, let them send me an offer together with a reward of free WiFi.

On another tangent, the awesome podcast from Asif Khan and Rob Woodbridge of the Location Based Marketing Association: This Week In Location Based Marketing mentioned that where a geofence is used for guerilla based mobile marketing, they get a 12% click through rate. Just to explain, imagine you walk into Burger King and your mobile bleeps you a notification offering you a free upsize if you go to McDonalds up the road and buy a Big Mac combo.

This is where people started to get excited and concerned about privacy and I need to mention the MAC, pun intended. Effectively it is possible for apps to learn about you and your behavior without having your personal details. Effectively they track your mobile, not YOU. It’s not quite that simple and that is why in the early days of The Hyperfactory (I didn’t actually work there, I suppose you could have called me a Hyperfactory groupie) we started to set up a Mobile Marketing Association, with the view of self regulating to ensure the Government didn’t over regulate. The key was around allowing people to know what information was held about them and giving them the right to revoke access to it.

This blog is getting way too long, so I’ll finish with a few quick thoughts on Foursquare. I wish I had paid more attention to Derek having shared an office with Foursquare, I think I made a mental note to talk to him about that, but I didn’t. Maybe I still will.

The question was asked as to whether Foursquare was viable and the general answer from the panel was, not really. Derek was more retrospect and pointed out that the issue in New Zealand has always been one of scale. In New York City scale isn’t a problem, the population is over 8 million people. They can afford to have sales people in NYC and its easy to segment them.

In New Zealand there are actually a reasonable number of users, but Foursquare hasn’t really been interested in them because we are too small. I briefly became a Foursquare Ambassador and saw big opportunities for proximity based marketing. I saw a business model for myself with Foursquare, but they would not allow me (or anyone) to manage multiple businesses on behalf of customers. Each account had to be managed individually and for New Zealand that was a fatal flaw.

For those who think Foursquare is out, have a read of this story from Fast Company.

Did you go last night? What did you think? I think this is going to be a very successful global company and look forward to being involved somehow, if only only the sideline. I have watched and met many successful people over the years through my business network and Derek Handley is a Kiwi that remains underrated imho despite all he has achieved to date. In my opinion the shares are well undervalued right now. I’d recommend at least buying a few.

Footnote: I do not own any shares in Snakk Media. I do not work for Snakk Media in any capacity. I would seriously consider both though:)

Congratulations to Julie Landry, Vaughn Davis and the team for an excellent event.

How to Get an Honest Fare From a Cab Driver


There is an international conspiracy. I’ve said it before. They get all the people who want to be taxi drivers, to a secret location, indoctrinate them in how to milk a fare and then send them to countries they haven’t been to before and where hey don’t speak the local language. 

This morning I read a blog on Freakonomics, entitled Why Don’t More Professional Drivers Use Traffic-Enabled GPS?. It’s obvious isn’t it? They want to get the biggest fare out of you that they can.

One way to get an honest fare out of a cab driver is to agree on it in advance. That’s easy if you know what it is worth.

Airports

Airports

Airports are a prime opportunity and I’ve been ripped off in more countries than I can remember at airports. In New Zealand there is a great service called Air New Zealand Taxis. You can select from 14 airports, enter details like your start or end address, what flights you are taking and then select from a variety of taxi types. I note they even offer helicopter now, but I don’t think that’s an option for the budget conscious.

So you choose which mode of taxi you want and they guarantee to get you to the airport on time. You pay in advance and they even monitor the flight arrivals and departures so if your flight arrives a couple of hours late, your taxi driver will still be waiting for you holding up one of those cool board with your name on it.

If they make a mistake, as one did with me last year and overshoot your freeway exit and have to take a 15 km detour, it’s their problem, and doesn’t decrease the thickness of the lump in your back pocket (if you still carry folding).

Back to traffic. I have been a TomTom Go Live product user since they launched in New Zealand and Australia and it is awesome! It is good because they have good data derived from a combination of fleet managed vehicles (large numbers of them) and data from TomTom users. The GPS Car Nav PND’s have a SIM Card in them and get their data in real time (within seconds despite coming via Berlin). What makes it really powerful is the algorithms in the background that know how to interpret data.

I have been involved in car nav and the development of real time traffic in NZ and Australia and have worked with several brands of car nav. I have seen good systems and not so good systems. Now I must admit that my current TomTom is a little dated, but it has the latest map data. It’s probably time for me to do some testing of the latest devices and apps from various brands, but if you are wanting to know what the best device is for you, this blog is still worth a read.

Like a lot of guys, I believe I have a great sense of direction. However, I have learned that the GPS car nav is better at it than I am. It looks at all the possible ways I can go and pretty much every time I thought it was wrong, it was me that was wrong. It also keeps evaluating, when it has real time traffic. Often while I am driving, my TomTom tells me that I am still on the fastest route, or that there has been an incident and there is now an alternative route which will save me (x) minutes. I now trust it.

That doesn’t mean I trust all real time traffic apps. I have tested other apps in the past which interpreted normal rush hour traffic as an incident and led me to take a longer route which was unnecessary. There have also been times when I knew where I was going and didn’t bother using my TomTom with real time traffic to disastrous results,

So back to keeping the cabbie honest. The easiest answer is to take your trusted car nav application with you and tell the driver where you want him to go. Remember, you are the customer. If he isn’t happy with that, grab his taxi number, get out and find another one who is more trustworthy.

So, how about it? Tell me your taxi stories. I’m keen on the good, the bad and the ugly. Please share a comment. What real time traffic navigation  products have you used? How did you find them?

trash can is stalking you: using wifi to track people in the real world


Whether or not you give permission, your mobile phone is sharing information to anyone who wants to invest in relatively low cost to collect it and analyse it.

SoLoMo Consulting

See on Scoop.it – Location Is Everywhere

Smartphone-monitoring bins in London track places of work, past behavior, and more.

Luigi Cappel‘s insight:

This is an important read. The MAC address can ultimately be used to identify any one if there are sufficient ‘trash cans‘ located in areas where you live. If you consider the number of CCTV cameras located around London for example. One of these devices attached to each of those would be enough to start identify persons of interest.

As the story explains, if these devices are placed in malls or next to public toilets, you can identify the gender of the user. If these devices are used at shopping malls, cinemas, bus stops, you can find out roughly where people work, go to school, what sporting matches or night clubs they go to, you can build up a profile.

This can be used…

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Imersia Partners with 20th Century Fox to Provide an epic Experience at Westfield Malls


Imersia Partners with 20th Century Fox to Provide an epic Experience at Westfield Malls.