Found One

 

In a recent post, I asked the question "Where are the Merchants".  I'm happy to report that I found one. 

He is Hans Sternberg, scion of a family that started a small shop in Germany in the 18th century, fled the Nazis in the 1930's, and went on to build the largest family-owned department store in the country - Goudchaux's/Maison Blanche, a legend on the Gulf Coast.  Hans has brilliantly recounted this experience in a new book, "We Were Merchants". 

I had the opportunity to speak to Hans at length recently.  Here are his views on the key elements of retail success and the current state.  They are both interesting and timely:

• Leadership and Innovation.  Hans believes this is critical to success.  You have to give the customer a reason to pick your store over your competitor and that comes from leadership and relentless innovation.  He sees little of this today, with mostly followers and very few leaders.
• Understanding you customer.  Hans feels this is another critical element.  In his view, the best merchants are those who spend as much time as feasible in the stores listening to their customers, understanding what they like/dislike, and what they are looking for.  He worries that the consolidation of so many retailers hinders this understanding, with corporate offices separate from the stores and merchants that rarely interact with customers.
• Building an exciting, memorable experience.  Hans believes that the in-store experience - visual, service levels, and displays are a key differentiator, regardless of what business you're in.  He does admire some retailers, but finds them only at the high end of the price spectrum. 
• Communicating your story.  Hans' axiom is that "you need to advertise in good times, you MUST advertise in bad times".  He does recognize that this is much more complicated today with the explosion of channels.  He wryly adds that adaptation is another important element of success.

The book is "We Were Merchants".  It is a terrific read for all retailers, both long-term retailers (who can identify with the challenges and fun from days past) as well as younger retailers, who can gain a valuable perspective on how things got to where they are today.  Everyone can learn something from this book.  I recommend it highly.  Go to his web site for an autographed copy.

 

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