Retail sales trends and analysis

Retail Sales

In 1962 Sam Walton opened his first store in Rogers, Arkansas. By the year 2000, Wal-Mart had been named "Retailer of the Century." It is the world's largest retail store with $244.5 billion in sales last year (Walmart website, 2005). It is natural to ask, how did Sam Walton do that? He started with a vision of a store that would feature competitive prices, the best prices anywhere. That, combined with generic products (cheaper still), additional services such as pharmacy, groceries, hair dressing, optometrist, and auto maintenance, promotional display of products, and advertising have made Wal-Mart very popular indeed with the buying public. People complain that they go to Wal-Mart for one or two items and come out with a whole basketful of bargains they "just couldn't resist."

Not all retail shops can have the lowest prices in town, of course, nor would this be desirable. Many small retailers have found a niche, a need for a particular line of products for which some people are willing to pay more. A favorite boutique, for example, which carries a specialized or unique line of clothing may do very well with certain people who like the look and become loyal customers. People looking for unusual items, hand crafted items, or items not made in China must look somewhere else besides Wal-Mart. Such businesses may do very well with judicious planning, display, and wise advertising. An impulse-stimulant, such as point-of-purchase (POP) advertising, provides an important step in the process of capitalizing on brand awareness and influencing individual purchasing decisions (Motivation, 2005). POP is an advertising strategy which uses displays, signs, structures, and devices in the store to aid retail selling. A person who contemplates going into a retail business is advised to do research first. Find out what the competition is doing. Establish goals. Seek expert advice. Develop a vision and a strategy like Sam Walton did, start small, and then go for it. Sam Walton did it. Why not you?