Resolutions for 2004

Lisa Casinger, Home Accents Today

1. Get organized. 2. Evaluate store locations 3. Improve customer service 4. Put advertising to 'work'
5. Examine product mix 6. Freshen up the place. Happy New Year!

According to economists, 2004 is going to be a better year. Home sales continue to boom, manufacturing is picking up and year-end 2003 unemployment dropped slightly to 5.9%. A survey of economists at Bloomberg reports the U.S. economy will grow by about 4%.

Mega retailer Wal-Mart plans to add 50 million net square feet to its operations this year with 50 to 55 discount stores, 220 to 230 super centers, 25 to 30 neighborhood market grocery stores, 35 to 40 Sam's Clubs and 130 to 140 international stores. And, while retailers in the home accents industry don't have such grandiose plans, they too are looking for a positive 2004 and have some good ideas for doing better business.

Homescapes, Carmel, Calif., co-owner Thompson Lange is coming off a good year. In 2003 the goal was to increase gross sales by 20% and in December the store was up 25% for the year. Lange's projections for this year are to increase sales by 15% and his goal is to become more efficient.

"We give off the impression of organization on the sales floor, but shipping/receiving is fairly chaotic," Lange said. "This year's numbers will allow us to finally bite the bullet and invest in an inventory system that will bring us into this century."

Lange looks for the new system to streamline inventory, improve turn-around time and speed up processing times. "Our staff does a great job, but I know it's up to me to provide them with the tools they need to up our over-all productivity," he said. Turning to technology is a great way to increase productivity, and if you're doing a good job already, doing it faster can't help but appeal to your customers.

The 5-year-old company expects its building to be approved for renovation/demolition in 2004 or 2005, and Lange said this has them reevaluating long-term goals as far as location and size. As for advertising, Lange expects to fine-tune his strategy of off-the-wall campaigns, which have helped brand the store.

"It is always fun to surprise our customers," he said. "It's in keeping with what we do with our inventory. Always keep them guessing and they'll stay interested."

Across the country in Florida, retailer Leslie Matus said 2003 was a whirlwind for her young business, D.I.G.S. -The Decorative Interior Goods Store. With 800 square feet in Miami, Matus strives to keep her merchandise looking fresh, and said everything from the front door mat to the bathroom mirror is for sale.

For 2004, Matus is looking to "keep clients intrigued" with exceptional customer service. Improved customer service seems to be the buzzword in retail, and with shoppers looking more and more for convenience and better service, improving yours should be on top of your New Year's resolution list.

"We have brand name lines and one of a kind items by artisans," Matus said. "Calling clients to let them know we had them in mind when we selected a product, with no obligation on their part, is a nice added touch. Personal contact keeps them coming back. Our design services also are a plus because we can go into customers' homes and bring in items that are their taste."

Matus embraces competition and said it can work in your favor. "Everyone getting along and working together shows that our industry is strong and there is plenty for the consumer to choose from. We are looking forward to 2004 and beyond."

Multi-channel retailer Shades of Light owner Ashton Harrison said the end of 2003 was less than originally predicted, but 2004 "will be 10% to 15% ahead of this year."

Harrison is looking for a new buying strategy this year for her Richmond, Va.-based store and catalog.

"We feel that we need to change our buying strategy to products that are more unique and cutting-edge and that make the consumer say 'Wow, I've never seen anything like that or that can do all that," she said.

Another California retailer, Chrysteen Braun of Designing Whims in Los Alamitos, also enjoyed a good 2003 and is looking forward to a positive 2004.

"We grew in 2003 and have continued to do so the first quarter of our fiscal year July 1-Sept 30. The biggest challenge is keeping more of what we make," Braun said. "We need to continue getting new customers because while we have a lot of repeat customers, once we sell something, we can't always repeat it."

Braun is working on a four-color brochure to not only inform old customers about all of the available services - full design work, window treatments, etc. - but also to introduce new customers to the store. She also will be stepping up her efforts on writing educational and entertaining articles for local newspapers about design. This is a great way to get your name in front of the public and providing information and ideas makes you the expert in their eyes.

The store itself got a face lift this year, another way to wow customers and show them you've got something going on they should know about.

"We just finished remodeling the exterior of our building," Braun said. "We added a great black awning with signage that reminds customers that we offer window fashions, furniture and interior design services. We also added columns and wrought iron fencing in our front lawn, upgrading our image, and hopefully appealing drive-by traffic. In 2004 we plan to remodel our ladies restroom because it definitely needs updating. After all, who are our customers? Ladies!"

If you're looking for other good ideas, check out the Web version of Retail Update. Each month we include two great ideas. Share your ideas with us and we'll send you a Home Accents Today t-shirt.

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