Hi wellness friends! We know it has been a rollercoaster ride these last few years - with COVID, staffing issues, post-COVID sales shifts, and of course, conventional/mass market continuing to take market share from natural food retailers. So how do you navigate these tricky times? We have a few suggestions that we think will help you boost your wellness sales each month:
Run INFRA Deals! All of them! We might not be completely objective, but the data is real. Members that pass along the most deals are seeing the biggest sales increases! Consider what drives customers to big box/conventional: pricing and convenience. If you pass along flyer and TPR deals, you will be offering hundreds of discounted items to your shoppers each sale cycle and that will have a direct impact on their perception of your store's overall pricing. We understand it takes a little added effort to hang those extra sale signs, but the incremental sales are well worth it.
Pricing: Have you considered how you price your top movers? We recommend pulling a list of your top 25 items in body care and supplements by both dollar sales and units and comparing those prices to your nearby and online competition. These are your most visible items. While you do not need to price match, you should be close - within 5% of their pricing if possible. You have our permission to apply variable margins! And on that note, our recommendation is that your realized margin in supplements is 43-46%, and body care is 40-42%. 50% margins in wellness are no longer sustainable. General merchandise, however, can support a 50% margin.
Out-of-stocks: Do you have an out-of-stock problem? Do you stop buying ahead of inventory, so you will have less cash on the shelf? Do you only have a few trained buyers, so ordering is delayed when they are on vacation or sick? Out-of-stocks are one of the most frustrating situations for a customer to encounter - especially if they have made a special trip. Mark shelf tags on your department's top 25 movers. Double or triple face these items and consider carrying backstock on them. Train back-up buyers, mark PARs on shelf tags (what level of inventory you want to have on each item), run movement reports. And when you encounter a manufacturer out of stock, sign the hole on your shelf as such. It communicates to the customer that you are aware of and working to remedy the situation, and that it is outside of your control. When items are on long-term out of stock status, fill those spaces with replacement product. Do not let your shelves sit empty!
Customer Service & Personalization: The original Ps of category management include products, pricing, placement, and promotions, but did you know there are four more? People, planet, profits, and personalization. As natural food retailers, you are perfectly situated to personalize the shopping experience for your customers. Recognize them, assist them, get to know them, hang staff favorite tags so that they feel that familiarity throughout their shopping trip. Personalize your store to your shoppers by recognizing what your demographic is looking for. Seek out quality local products, schedule demos, offer passive samples, hang coupons. We have all heard it but go above and beyond. Make that connection!
Back to Basics: Bear with us because this bears repeating! Are you keeping your store clean? Wiping down shelves is a wonderful opportunity to check expiration dates on product and see what is not moving. Make a map of your department with a goal that each space is cleaned regularly. Have staff initial and date the shelves they clean. You can even make it into a challenge and reward staff/departments that complete cleaning goals regularly. It is also a fantastic way for new staff to learn where products live. Do you have boxes, carts, etc. cluttering your aisles? It is no fun to navigate an aisle full of obstacles, so make it easy for your shoppers to access all products at all times. Do you have dusty or faded branded signage up above your shelves? Take it down! Is the department well lit, well signed, fronted, and faced? Do you have the right size sale signs hanging on all sale product? Are your promo endcaps attractive and abundant? You can create a checklist for a weekly walk-through with your staff and soon, everyone will know what to look for and will fix issues as they appear.
Educational Resources: Provide DSHEA-compliant (brand-supplied, customer-facing) educational resources like pamphlets, promo relevant in-store signage, or digital content on the benefits of natural health products and ingredients.
Digital Marketing: Have you made changes in your wellness department? Brought in a new local brand or new trending products? Shout it out on your website and social media sites.
Staff Training and Development: Invest in ongoing training and development for your staff to ensure they are knowledgeable about the products you offer and equipped to provide exceptional customer service. Encourage staff to attend industry conferences, participate in product training sessions, and stay informed about emerging health trends and research. Check out INFRA's ART platform or ExpertVoice.com and reach out to brands for information on upcoming webinars!
And remember, you do not have to do it all at once. Pick a few of these suggestions to put into action. Minor changes can make a big difference!
If you have questions or want to know more about how to implement these suggestions in your store, reach out to Lauren Bartel or Sarah Super.
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