Bonnie Brooks, CEO of the Bay, has taken on an intriguing challenge - how do you grow sales in a weak economy? Not only has she taken on the challenge, but she is projecting sales growth for the Bay in the coming year. Common sense tells us that is not possible, but great leaders tells us that it is. Ms. Brooks has unveiled a plan to dump unprofitable brands and bring in new lines to upsell more products to the Bay's target market. Why is this a good move in a weak economy? Because the customers are already in the store. Why not offer more products that would interest them? Why not offer those products in locations where most of the foot traffic happens to be?
What Ms Brooks is doing seems bold, but when you think about it, it only makes sense. You already have a customer in your store buying your products, so you offer them more products that they are interested in and they buy them. Seems like pretty simple math to me. The customer is going to buy them from somewhere and you are offering an easy alternative. I applaud Ms Brooks for pushing her plan to add new mid and high-end product lines at affordable prices. People are not always looking for prices to be slashed, but they are looking for quality goods at reasonable prices. If you can offer that, you will come out ahead of the game. As people's disposable income eventually increases, they will still want quality goods at reasonable prices, they will just want more of them.