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Saturday, July 5, 2025
Self-Serve Retail: the trouble with Lowes and Home Depot
Huge home improvement retailers Lowes and Home Depot have hit a rough spot with investors and customers. Both had soft second quarter earnings and warn of slow sales. Their stocks are down about 15% for the year, and the housing market slowdown isn't the only cause.
Home Depot is famous for rotten customer service and Lowes isn't much better.
I went to Lowes last night to look for kitchen cabinets for my new house. You may not realize it, but cabinets are a big-ticket item. Decent ones start at about $150 a lineal foot. So I was about to spend some real money. The only problem was that there was nobody manning the large kitchen cabinets section of the store.
I pushed the "call an associate" button and an announcement was made over the loudspeaker asking for customer help at my location. An employee showed up to turn off the blinking call button, but he didn't work in that department so he went to find the right person. I waited ... and waited but nobody appeared. This is no isolated incident -- my sister had the same problem getting help when she bought kitchen cabinets at Lowes a few years ago.
I'm not one to beg a store to take my money, so I picked up some product literature and left. A cabinet shop closer to my home carries some of the same brands so I'll take my business to them, even if they do charge more.
How can Lowes (and Home Depot) fix this customer service problem? Simply admit to themselves that they aren't in the service business. Like all big-box retailers, their strength is stocking a large variety of inventory on the shelves. Customers search through piles of goods to find what they really want. These stores are self-serve all the way ... and shouldn't be afraid to admit it.
But in the kitchen cabinet department, the stores aren't set up to be self-service. They supposedly offer design service and you have to order the cabinets for later delivery. Come on now; who's kidding who? No big box retailer with its cadre of minimum-wage-slave employees is going to provide that level of service. It's beyond them.
My suggestion is to create a self-service kitchen cabinet department. Stock "blank" cabinet cases (without doors) in a variety of shapes and sizes. Let the customer choose from 10 to 20 styles of doors, which should also be in stock. Make it all cash-and-carry. No delays, no broken promises of "service". IKEA already sells kitchens this way -- Lowes and Home Depot should follow suit.
Home Depot is famous for rotten customer service and Lowes isn't much better.
I went to Lowes last night to look for kitchen cabinets for my new house. You may not realize it, but cabinets are a big-ticket item. Decent ones start at about $150 a lineal foot. So I was about to spend some real money. The only problem was that there was nobody manning the large kitchen cabinets section of the store.
I pushed the "call an associate" button and an announcement was made over the loudspeaker asking for customer help at my location. An employee showed up to turn off the blinking call button, but he didn't work in that department so he went to find the right person. I waited ... and waited but nobody appeared. This is no isolated incident -- my sister had the same problem getting help when she bought kitchen cabinets at Lowes a few years ago.
I'm not one to beg a store to take my money, so I picked up some product literature and left. A cabinet shop closer to my home carries some of the same brands so I'll take my business to them, even if they do charge more.
How can Lowes (and Home Depot) fix this customer service problem? Simply admit to themselves that they aren't in the service business. Like all big-box retailers, their strength is stocking a large variety of inventory on the shelves. Customers search through piles of goods to find what they really want. These stores are self-serve all the way ... and shouldn't be afraid to admit it.
But in the kitchen cabinet department, the stores aren't set up to be self-service. They supposedly offer design service and you have to order the cabinets for later delivery. Come on now; who's kidding who? No big box retailer with its cadre of minimum-wage-slave employees is going to provide that level of service. It's beyond them.
My suggestion is to create a self-service kitchen cabinet department. Stock "blank" cabinet cases (without doors) in a variety of shapes and sizes. Let the customer choose from 10 to 20 styles of doors, which should also be in stock. Make it all cash-and-carry. No delays, no broken promises of "service". IKEA already sells kitchens this way -- Lowes and Home Depot should follow suit.
Retail Location: Malls and Towns
Malls are scrambling to find new anchor tenants.
Department stores are no longer an attraction for many shoppers, so
malls are recruiting restaurants and big box discounters like Target to
generate traffic. "New" downtowns are cited as the hot retail location.
Obviously the "location location location" for retail changes over time, so what's a smart retailer to do? Work toward making your business a destination in itself. That way you won't rely on other magnets to draw traffic. Build the very best inventory of products in your niche, update it constantly, and you'll be on your way.
Obviously the "location location location" for retail changes over time, so what's a smart retailer to do? Work toward making your business a destination in itself. That way you won't rely on other magnets to draw traffic. Build the very best inventory of products in your niche, update it constantly, and you'll be on your way.
Formalized Services in Retail Stores
Retail stores have always given away advice along with selling products.
Now some stores are turning helpful services into a profit center.
Medical services are leading this move into retail stores. Medical clinics are popping up in pharmacies across the nation, and thousands of new clinics are planned to open in stores over the next couple years. No appointment is necessary to get quick, cheap fixed-price treatment for minor illnesses. This is a wonderful development in a nation with runaway health care costs and where fewer and fewer people even have a family doctor. The convenience will obviously draw lots of customers into the stores. Wal-Mart is even testing clinics in some stores.
Are there other services that might be popular in a fixed-price convenient retail setting? How about "instant handy-man" services at the hardware store? The handy-man could have a small workshop for repairing or assembling stuff that people bring in. Or the handy-man could follow you home to install a ceiling fan or wire a new outlet "while you wait". Garden centers could offer the same for tree-planting. Computer repair clinics would be great too, but computers are designed to be disposable these days and a small part is often too expensive to justify repair. Apple could set itself apart by designing its computers for ease of repair and then offer the services while-you-wait in the Apple brand stores.
Similar services have always been a part of other businesses. Jewelry stores offer repairs and ear-piercing. Photo development kiosks were a big deal before the coming of digital cameras (it's interesting that they were located in drug stores and discount retailers, just like the new clinics). Home centers offer kitchen planning and installation services.
Repair and design services could be added to many retail businesses. You might offer the services already -- to make it a bigger part of your business you'll have to increase awareness. Set aside an area of your store for the service and give it prominent signage. Then include it in your advertising and watch your traffic grow.
Medical services are leading this move into retail stores. Medical clinics are popping up in pharmacies across the nation, and thousands of new clinics are planned to open in stores over the next couple years. No appointment is necessary to get quick, cheap fixed-price treatment for minor illnesses. This is a wonderful development in a nation with runaway health care costs and where fewer and fewer people even have a family doctor. The convenience will obviously draw lots of customers into the stores. Wal-Mart is even testing clinics in some stores.
Are there other services that might be popular in a fixed-price convenient retail setting? How about "instant handy-man" services at the hardware store? The handy-man could have a small workshop for repairing or assembling stuff that people bring in. Or the handy-man could follow you home to install a ceiling fan or wire a new outlet "while you wait". Garden centers could offer the same for tree-planting. Computer repair clinics would be great too, but computers are designed to be disposable these days and a small part is often too expensive to justify repair. Apple could set itself apart by designing its computers for ease of repair and then offer the services while-you-wait in the Apple brand stores.
Similar services have always been a part of other businesses. Jewelry stores offer repairs and ear-piercing. Photo development kiosks were a big deal before the coming of digital cameras (it's interesting that they were located in drug stores and discount retailers, just like the new clinics). Home centers offer kitchen planning and installation services.
Repair and design services could be added to many retail businesses. You might offer the services already -- to make it a bigger part of your business you'll have to increase awareness. Set aside an area of your store for the service and give it prominent signage. Then include it in your advertising and watch your traffic grow.
Retail Store Success: Blinds.com
Jay Steinfeld has grown his business from a single bricks-and-mortar
store to a thriving online retail store success story. Blinds.com
generates $45 million in annual sales and is the 10th fastest growing
ecommerce site. Steinfeld opened a drapery store with his wife in 1987,
and the online store started in 1994 and has grown in sophistication and
sales since then.
His ecommerce business grew enough to acquire a major competitor in 2001. Read more about this retailing success. There's still plenty of opportunity for the small business in online retail -- just make sure you stake out a niche, exactly as you would with a traditional store.
His ecommerce business grew enough to acquire a major competitor in 2001. Read more about this retailing success. There's still plenty of opportunity for the small business in online retail -- just make sure you stake out a niche, exactly as you would with a traditional store.
Selling Overcomes Fear
Seth Godin tells a short story about effective retail selling at a farmers market. He reminds us that good selling overcomes the buyer's fear -- in this case the fear of eggplant.
If you sell products that you're genuinely enthusiastic about, you can often pass that enthusiasm on to a shopper. It's not about giving a "hard sell" ... it's about retailing good stuff with passion. If you can't wholeheartedly endorse your products then it's time to upgrade your store's inventory.
If you sell products that you're genuinely enthusiastic about, you can often pass that enthusiasm on to a shopper. It's not about giving a "hard sell" ... it's about retailing good stuff with passion. If you can't wholeheartedly endorse your products then it's time to upgrade your store's inventory.
Stock Photography for Ads
Okay, you accept my argument that professional photography is critical
to marketing success for retailers and other businesses. But hiring a
photographer to create custom photos is expensive and time-consuming. Is
there another way? Yes. You can often use stock photos in your advertising.
Stock photography can be downloaded in an instant, and might be as cheap as $1. Yes, at online stock photo sites like IStockPhoto.com, you can license the use of pics for as little as a buck a piece for low-resolution shots. Those sites have thousands of photos to choose from.
Retailers can usually get product photos from the manufacturer, free of charge. You might get some good stuff that way, but it's surprising how often the manufacturer's photos are boring or just plain bad.
To get photography that really expresses your retail store's personality, you'll have to bite the bullet and hire a professional photographer to take custom shots. Until you're ready to take that step, use the finest stock photos that you can find.
Stock photography can be downloaded in an instant, and might be as cheap as $1. Yes, at online stock photo sites like IStockPhoto.com, you can license the use of pics for as little as a buck a piece for low-resolution shots. Those sites have thousands of photos to choose from.
Retailers can usually get product photos from the manufacturer, free of charge. You might get some good stuff that way, but it's surprising how often the manufacturer's photos are boring or just plain bad.
To get photography that really expresses your retail store's personality, you'll have to bite the bullet and hire a professional photographer to take custom shots. Until you're ready to take that step, use the finest stock photos that you can find.
The Marketing Power of Good Photography
Professional photography is worth a fortune to a retailer or other
marketers. Consider the famous retail catalog and ecommerce website of
the Pottery Barn. Would the products be as sought-after if the photography wasn't so good?
The Pottery Barn catalog and website are like a home design magazine -- full of decorating ideas that inspire the purchase of the products. The Quality of the photography is a huge part of their success with this concept.
Or consider the marketing power of these photos of a Royal Caribbean cruise from Boston.
With just 3 photos, you can see that these cruises from Boston are active, indulgent, and fun for the whole family. Maybe not the image you had of cruising? That's the marketing power of good photography.
Don't skimp on photography when you're marketing. A talented professional can make or break your promotional campaign.
The Pottery Barn catalog and website are like a home design magazine -- full of decorating ideas that inspire the purchase of the products. The Quality of the photography is a huge part of their success with this concept.
Or consider the marketing power of these photos of a Royal Caribbean cruise from Boston.
With just 3 photos, you can see that these cruises from Boston are active, indulgent, and fun for the whole family. Maybe not the image you had of cruising? That's the marketing power of good photography.
Don't skimp on photography when you're marketing. A talented professional can make or break your promotional campaign.
$1,400 a Day from a Simple Website
A month ago, I wrote about the opportunities for making money from sharing your knowledge on the Internet. I also pointed out that retailers can make money from websites without selling anything. But how much money can you make just by presenting what you know on a website?
Tim Carter makes more than $30,000 a month from his website. Tim is a syndicated newspaper columnist who writes about home improvement. He created AsktheBuilder.com in 1995 to share what he knows. In 2004 he learned about Google Adsense, an easy way to generate advertising revenue from a website. After just two years, his Adsense revenues now average an amazing $1,400 a day.
Do you think that Carter made $1,400 a day from his job as a newspaper columnist? Neither do I -- which indicates that publishing your own website can be significantly more profitable than writing for traditional media. You don't need a publisher to effectively get your word out -- you only need a website.
Take a good look at AsktheBuilder.com. It's certainly not fancy or technologically advanced. It's just useful information presented in a simple way. Retailers and service businesses are in a great position to create something similar. Tell the world what you know about your products. Give tips and examples of how your services are effectively used. Help people solve problems and answer their questions.
Cash in on what you know. It may be more lucrative than selling products and services.
Tim Carter makes more than $30,000 a month from his website. Tim is a syndicated newspaper columnist who writes about home improvement. He created AsktheBuilder.com in 1995 to share what he knows. In 2004 he learned about Google Adsense, an easy way to generate advertising revenue from a website. After just two years, his Adsense revenues now average an amazing $1,400 a day.
Do you think that Carter made $1,400 a day from his job as a newspaper columnist? Neither do I -- which indicates that publishing your own website can be significantly more profitable than writing for traditional media. You don't need a publisher to effectively get your word out -- you only need a website.
Take a good look at AsktheBuilder.com. It's certainly not fancy or technologically advanced. It's just useful information presented in a simple way. Retailers and service businesses are in a great position to create something similar. Tell the world what you know about your products. Give tips and examples of how your services are effectively used. Help people solve problems and answer their questions.
Cash in on what you know. It may be more lucrative than selling products and services.
That's why you use models instead of athletes in ads
The dismal showing of the American team at the World Cup is just the
latest example of why you should use models in your ads instead of
athletes. Athletes can embarass themselves with crappy play on the world
stage. Imagine if you'd signed a U.S. soccer player to represent your
company - and then the team only scores one goal in 3 games and is
(mercifully) eliminated in the first round. Yikes! Total waste of money.
Models
don't bring such risks. If they have a bad hair day you just throw out
those photos try again. Nobody ever sees the mistakes. Pick one of the popular Internet models (or 2 or 3) to create a new "face" for your company. Let the athletes to represent your competition -- you'll be glad you did.
Models
don't bring such risks. If they have a bad hair day you just throw out
those photos try again. Nobody ever sees the mistakes. Pick one of the popular Internet models (or 2 or 3) to create a new "face" for your company. Let the athletes to represent your competition -- you'll be glad you did.Retail Store Success: Staples
Office supplies retailer Staples has become a retail success story with memorable marketing and an improved shopping experience.
Their "easy button" is a wonderful iconic object that helps spread the
company's message. I was tempted to buy one when I was recently in a
Staples store. About a million have been sold for $5 a piece.
The easy button icon is also available on a downloadable toolbar for your internet browser -- it enables easy access to the Staples online store. The retailer backs up its marketing with redesigned stores and more training for employees.
The easy button icon is also available on a downloadable toolbar for your internet browser -- it enables easy access to the Staples online store. The retailer backs up its marketing with redesigned stores and more training for employees.
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