Showing posts with label retail. Show all posts
Showing posts with label retail. Show all posts

Thursday, November 29, 2012

Toronto Plastic Bag Ban Reprieve

Retailers in the Toronto area, and all of Ontario, can breathe a temporary sigh of relief as Toronto announced a reverse of the bag ban decision on November 28, 2012. http://www.cbc.ca/news/canada/toronto/story/2012/11/28/toronto-plastic-bag-ban-vote-councillors.html



Without this eleventh hour decision, it was expected a By-Law would be passed and, effective January1, 2013, retailer would no longer be able to provide single-use plastic bags to customers.  Other than the loss of work in the plastics industry (a huge issue in itself), there was another concern - how could retailers be expected to find, purchase and implement non-plastic bags within one month?

I feared mass panic as retailers flooded suppliers with requests for paper bags or reusable bag alternatives.  It could easily have meant a bag shortage as suppliers worked to meet high demands for alternative products!

But, the issue is far from over.  Several years back, Toronto ordered all businesses to charge their customer five cents per plastic bag. The businesses kept the money and, in essence, it made larger retailers money by reducing their packaging costs. An additional side effect to the Toronto bag charge was that most major retailers (Metro, Shoppers, Loblaws) started charging for bags. As this bag charge went directly into the pockets of the businesses, I do not see any major business voluntarily eliminating the charge.

The issue of environmental damage also still exists.  Single-use plastic bags cause a lot of pollution and do not decompose for many, many years. Plastic is a problem.

On the other hand, switching to paper bags has its own issues:
  • Paper bags are more expensive for retailers to purchase. A single plastic poly bag (9 x 12) costs about 5 cents versus a single 8 x 10 paper (kraft) bag with handles at 25 cents or more. [Note these costs are based on small quantities purchased] The cost of paper bags is significantly higher.
  • Paper bags use more energy to produce.  Yes, studies have shown that paper bag production has its own environmental issues.
  • Paper bags take up more room for storage.  A box of 250 paper bags takes a minimum of 5 times as much space as a box of 500 plastic bags.
Personally, I prefer the look of paper but it is not always effective for certain purchases and the cost plus storage is preventative.

Reusable bags are another great option but only work when the customer remembers to bring them.  Reusable bags are not great for POS or spur of the moment purchases.  There are also e coli concerns  that have arose from a lack of bag care - please wash your bags regularly!


As Toronto and other communities re-examine plastic bag use, I hope they will look at the type of plastic bags they are considering banning.  Plastic bags come in many styles and thicknesses and I know many of us will reuse thicker bags for garbage bin liners, diaper buckets, school lunches, lining snow boots and more! What I suggest, is that council look at a minimum bag thickness.

We have all visited grocery stores where the bags are so thin that they break before you get to the car. It is inevitable that these bags will have at least one hole in the bottom by the time you unpack them.  This type of bag is truly single-use.  Let's ban those bags and go back to the thick plastic bags that can be reused instead.

Wednesday, February 15, 2012

Does Store Design Matter?

Ever walk into a store and find something just feels off?  This feeling can occur in a poorly laid out store, an overcrowded store or an outdated store.

Poor layout - Studies suggest that people natural move to the right when entering a store.  Therefore, if your store is designed to send people to the left, you are upsetting natural patterns.  While this may seem silly to you, it may cause an unknown unease in your client.  Keep this in mind as you set up store displays.

Overcrowding - Do you feel overwhelmed in a store with too much product, too little aisle room?  When retail stores overstock, it impedes the flow of traffic around product displays and racks.  How many have attempted to push a cart or stroller between clothing racks only to find the stuff on these racks drooping into their cart or even over their children because of insufficient space to move?  Outlet stores are particularly bad for this.  In addition to lack of space for movement, it can cause subconscious fears of smothering or being trapped.  Overloading your store stock will not get you more sales as many will want to leave sooner, even if it means missing a "good deal".  The space feels uncomfortable and confining.  Solve this issue by reducing amount of stock or displays on the floor and make sure there is adequate room for people, carts and strollers to move.

Outdated Stores - Does your store still contain original fixtures from a prior owner or from your original opening several decades ago?  Chances are that your slat wall, wall systems or other store fixtures may not only be outdated but may also be broken or simply unattractive.  While a mismatch of unique products may work well for a thrift store, the general overall feel your location promotes will affect your product.  It may also reduce the overall worth of your products in the subconscious mind of your customer.  If one looks at large chain stores, you will notice that they constantly change their layout, appearance and fixtures.  This keeps the store (and products) fresh in the mind of the consumer.  The excitement of change actually encourages people to come in, look around and stay to purchase product.  Small businesses may not be able to afford to change fixtures and displays as often as a large retailer but keep in mind that old and broken displays are going to turn off the customer.  Invest in new fixtures as needed and make sure to change up your store by using paint or other methods to keep the store looking fresh.  Pay attention to what your store looks and feels like when you walk in.  Change may be as simple as moving displays, replacing broken, mismatched slat wall with new slat wall, or, even painting walls surrounding slat wall.  While replacing old product may be a significant cost, the overall benefits will increase your sales and comfort feeling of clients.

Overall, your store layout and design will affect your consumer.  Take a day or two and visit a variety of stores including a regular mall, a busy outlet store (perhaps a Sears outlet on a weekend), a used/thrift store, and some small stores.  Remember to use a cart/stroller to get the full feeling.  Think about how you feel as you visit each location.  What did you like/dislike about the overall feel of the store?  Forget about the actual product and concentrate on the flow and overall environment. 

Always remember that the subconscious mind is always operating and your customer's subconscious can affect your business!

Tuesday, July 12, 2011

It may be July but my mind is on Christmas!

Temps are soaring, sky is bright blue and the sun is shining upon us.  For many, it means vacation at the beach, cottage or anywhere outdoors; for those in retail, it means time to think about the holiday season!

As July quickly turns into August, retailers must start thinking about holiday packaging, sales and decorating.  Many retailers offer festive bags (kraft, plastic or reusable) to their customers.  Some may also choose to add tissue in shades of red, green, silver and gold or ribbon in similar hues.  Holiday sales may also require special banners or signs announcing sales and specials.

Most of these decisions do not have to be made today but you should start thinking about it.  If you want to customize reusable bags or ribbon (or any packaging), it may take several weeks or even up to 2 months (think October/Thanksgiving) to receive your order.  Same goes for special holiday items.