Work That Territory!

Let’s say you’re a national chain with stores across the country, or even a regional player with locations spread throughout the province.  You’ve got Store Managers running things locally and District Managers out on the road trying to keep the flock in line.  You’re comfortable that most of them are trying to do the right thing, but what are they really accomplishing?

What guidelines are they following? Are the same corporate objectives and values being reinforced in all stores?  How do you make sure that all of your people are heading in the same direction?

What performance measurements (if any) are they using?  Outside of the common stats (sales, margins, etc.), do you know how well each store is actually performing?  Are they being run properly?  

If not, what specific actions are your managers taking (if any) to improve things out there?  Are you frustrated by a lack of execution in the field?  Which managers are really doing a great job, and which ones are in need of coaching, dramatic realignment or even ‘de-hiring’?

If you’re one of the many folks out there who have been desperately searching for the answer to these frustrating and potentially disastrous issues, sit tight and open your ears, because here it is ... metrics.  The old saying that “You’ll only manage what you measure.” is a fountain of truth.  You must use it to guide your approach to territory management.

Start by designing and implementing a Quarterly Review Process that specifically and objectively measures every key initiative and performance standard in your business.  Then assign “points” on a weighted basis to your most important indicators, tasks and responsibilities.  Why?  The benefits are enormous!

• This approach will clearly separate successful Store Managers and DM’s from the dead weight.  You’ll know who’s performing in each area and who isn’t!
• Everyone will be pulling in the same direction.  This means total alignment and focus!
• DMs and Store Managers will know exactly where they stand and what they need to do to improve their performance.  When performance is specifically measured, it will improve ... and you get better overall results!
• No more relying on Sales as your only measure of ‘good’ and ‘bad’.  When you measure all of the elements in your store that drive sales, you’ll understand how to drive performance even higher.

Need some help with ‘working your territories’?  Give us a call at 1-888-263-1835 or email us at solutions@graffretail.com

Here are February’s same store sales results for a selection of retailers.  Note the strong performance across the board:

                    % Change

American Eagle                15.2
Chico’s                               28.0
Claire’s Stores                    15.0
The Gap                            12.0
Guess?, Inc.                       14.8
The Men’s Wearhouse        13.7
Pacific Sunwear                 14.1
Talbot’s                                5.8
Wilson’s Leather                 - 0.8
InterTan (Radio Shack)        5.0
Neiman Marcus                 24.4
Nordstrom, Inc.                    8.8
J.C. Penney Stores             12.1
Saks Incorporated               14.7
Target Corporation             13.0
Wal-Mart Stores, Inc           14.0
Eckerd Drugstores             -   3.5
Walgreen                           11.8
Michaels Stores, Inc.          12.0
The Bombay Company      - 9.0
Pier 1 Imports                       3.3
Sharper Image                    20.0
Naturalizer (Brown Group)   11.7
Payless ShoeSource, Inc.  -  2.9
Dollar General                      3.8
Costco Wholesale                11.0
Sam’s Club (Wal-Mart)           7.5

Excellent results!  How did your stores perform?

Real Life On The Retail Front