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Same Store Sales

How to increase RETAILER’s #1 Metric? SAME STORE SALES… a not so obvious answer!

You hear it everyday in retail. Same store sales are down!!!

Today, Albertson’s explained in an amended S-4 filing for a debt exchange offering just how tough things have gotten for traditional supermarket chains.

The filing’s most revealing data are same-store sales on a quarterly basis through Q4, 2016, comparing year-over-year sales growth at stores that have been open in the current and prior year. I added the red line to show the trend since Q3 2015:

The S-4 supplied some reasons for the decline:

Our identical store sales decrease in fiscal 2016 was driven by a decrease of 1.9% in customer traffic partially offset by an increase of 1.5% in average ticket size. During fiscal 2016 our identical store sales were negatively impacted by food price deflation in certain categories, including meat, eggs and dairy, together with pressure to maintain competitive pricing in response.

The two key factors boil down to competition, precisely what the Safeway acquisition was supposed to have eliminated:

  • A “1.9% decline in customer traffic.”
  • “Pressure to maintain competitive pricing in response.”


So here is the not so obvious answer: successful retailers drive traffic through ON SITE OUTDOOR PROMOTIONS that bring attention to their IN STORE promotion offers. This allows them to LEVERAGE one of their biggest ASSETS, their LOCATIONmeaning direct targeting their drive by and walk by traffic.

Think about it. Why wouldn’t a retailer do it? It just makes obvious sense. Of course you’re going to engage your other advertising and marketing means but if you’re not leveraging your location, you’re leaving a lot of meat on the bone!!!

So what are we talking about here? A professional portrayal of your promotion offers through the use of outdoor visual means – Giant inflatable balloons, banners, wind tubes, wind dancers, cloud busters in the air 100ft, giant flags, promotional tents, search lights and on and on.

All you have to do is contact a quality outdoor promotion company with full turn-key services and they will develop the ideas, produce all the materials, complete all the installation and guess what – make everything go away at the end of the promotion. You might have to Google Inflatable advertising, inflatable balloons and some of the other products to lead to an On Site Promotion company in your area.

So whether you are promoting tail gating beer specials, crawfish season, massages for Father’s day, Flowers for Valentine’s Day, Costumes for Halloween, special cellullar deal of the month, $15,000 off that new truck, whatever – define it, design it and PROMOTE it to your daily direct target passing right in front of your business!!!

Happy retailing!!!

As a marketing leader, are you looking to increase sales at your store locations? Find out how to attract the millions of commuters that drive by your store ever day.