Volume or?Repeat

Retailers like Walmart, Home Depot, Sport Chek, and Loblaws rely on volume. These major outlets count on thousands of people coming through their locations weekly. Yes, they would love people to return, but if the volume is there, they don’t care.

On the other side, we have retailers who count on people coming back repeatedly. Mom-and-pop shops and larger retailers like Costco, Home Hardware or Second Century Sports are often in this category. They need people to shop frequently, as the volume of customers is lower (for their size).?

Knowing what business you are in is crucial because it influences all aspects of the organization.

Over the weekend, I went to a Second Century Sports and Sport Chek. Sport Chek was in a better location and had a larger store, which meant they had more options. However, they had few people working, and their inventory was low. Second Century Sports was out of the way and small. But, they had the same amount of people working as Sport Chek, and it was packed with stuff. They also offered flexibility. The price WASN’T the price, and they accept trade-ins. Sport Chek is a volume business, whereas Second Century Sports needs me to repeat.