b'FINAL THOUGHTSLEADING THROUGH CHANGECommunicating clearly with your staff is key to navigating turbulent times.BY PETER SMITHA uthor and business guru Patrickout a competitive niche in that space and theyou drive your business forward. Lencioni wrote of leaders, Theirmodel itself may need a complete rethink.Before you make tough choices, invite de-top two priorities are to set theGenerally speaking, we are unlikely to seebate to make sure your path forward doesnt direction of the organization and then toan increase in foot traffic again.have unintended, damaging consequences. ensure that people are reminded of it on aIf you remove auto and gas sales fromHowever, once youve made the decision regular basis.the numbers, about 20 percent of all retailto move forward, be like Corts and burn Lencionis message, sublime in its clarity,sales come from online sources. When youyour boats. has never been more apt than in the jewelrycombine that with the decline in the numberWhatever direction a leader chooses to industry right now. of malls, and mall traffic, smart retailers willchart for their business, demonstrating the The evolution of retail has resulted in aevolve their strategyleadership qualities to clearly articu-significant contraction of stores, even as theto meet the rapidlylate that vision, and the commitment total jewelry and watch business was strongerchanging landscape.Focus onand communication acumen to keep than ever from 2020 through 2024.One of the corner- the thingsthat message top of mind, is critical.The reduction in the number of stores isstones of this new real- that will makeAs you double down or reinvent not exclusive to jewelry and watch retail.ity must be initiativesthe biggestyour model, your people will always Coresight Research reported that 7,325designed to ensure adifference inbe better for hearing the truth stores closed in 2024, and it predicts thathigher average ticket.and knowing where the business 15,000 or more will shutter in 2025.Lower price pointsyour businessis headed. There is nothing worse For all the changes in retail, two signifi- can create the illusionand control thethan ambiguity to kill morale. cant developments are undeniable.of customer accessi- controllables. Make sure you have a short-term First, retail has morphed into a hybridbility but wont help ascorecard, but a map for where you model, where physical retail serves as thebusiness if the retailerPETER SMITH are going in the long term. backbone of multi-tiered commerce thatdoesnt find a way toFocus on the things that will includes online and social.drive more foot trafficmake the biggest difference in your The second development is that thisand/or improve conversion rates. business and control the controllables. You seems to be giving way to a bifurcation ofTo that end, all retailers must have acant impact the stock market, the weather, the retail landscape; price-driven on one end,robust and active customer relationshipor the number of Saturdays in December. and experiential/quality retail on the other.management (CRM) system.Management expert John Kotter often The price model is best represented byIve seen data showing returning custom- talked about building a coalition for change. Walmart and Costco while the experiential/ ers are 70 percent more likely to buy thanBy that he meant hiring the right people, cre-quality model is best seen at stores such asnew customers with an average retail ticketating a trusting environment, and developing Wegmans, Bass Pro Shops, Apple, Ulta Beau- that is 30 percent higher.a common goal. ty, and Lululemon.Once youve decided on your directionThat seems like a reasonable plan to me.Customers identify with one or the otherfor CRM, lean into it at every touchpoint. ItHappy retailing! of the two models, and that is punishingought to become a litmus test for every dol-stores in the middle, giants like Sears, Kmart,lar spent, and for every important decisionPETER SMITHis an industry Kohls, and JCPenney,, which are alreadymade, or not made.consultant and keynote speaker gone or on life support.Hire for it, train for it, compensate for it,who teaches in-store sales While some jewelry retailers choose toand be prepared to make difficult choicespsychology and hiring compete on the lower end of the price spec- if people or initiatives dont align with yourworkshops. He is the author of Hiring Squirrels, Sell trum, the disappearing middle (where retail- vision.Something, and The Sales ers attempt to be all things to all people) isHave the humility to accept you dontMinute. Contact him at getting hammered.have all the answers and get a coach outsideTheRetailSmiths@gmail.com, via LinkedIn, or at It is becoming increasingly difficult to carveof your organization to keep you sane while617-308-1580.78 STATE OF THE MAJORS 2025'