Retail Market Objective:

To retain and attract desired retail businesses, restaurants, and personal

service businesses in order to maintain Northbrook’s position as a leading retail center in the North
Shore area.

SUMMARY OF IDEAS FROM STRATEGIC PLANNING SESSION

Joint Meeting of the Economic Development Commission and the Industrial
and Commercial Development Commission
February 9, 2005
Retail:
o Attract/retain appropriate retail (appearance/zoning)
o Flexible zoning
o Need economic development personnel
o Marketing
o Educate public
o Encourage local support of local business – such as buy in Northbrook programs.
o Incentives – prepare policy
o Increase local activities/events at NBK and other retail areas.
o Market available space
o Comprehensive plan - O.K. to have vision
o Act, not react.
o Proactive in terms of have land zoned and ready for retail and big box retail
o Plan ahead – promote new retail areas
o Improve access to Northbrook Court
o Enhance revenues
o Desired retailers
o Facilitate zoning changes
o Market to daytime population

Advantages And
Disadvantages Of The
Retail Meat Business
( Originally Published Early 1900's )
It seems to be human nature that the average business man will always speak of the disadvantages of
his particular profession or business. Seldom, if ever, are the obvious advantages pointed out.
Comparing the retail meat business with practically all other lines, quite a number of advantages can be
readily discovered, which are lacking in other industries. These advantages can be classified as
follows :
1. The fast turn-over of merchandise.
Meat Retailing:
From Butcher To Meat Retailer
Meat Packer Supplants The Butcher
Meat Packers As Retail Distributors
Importance Of The Retail Meat
Business
Average Wholesale Prices Of Beef
Advantages And Disadvantages Of The
Retail Meat Business
Disadvantages Of The Retail Meat
Business
Needs Of The Retail Meat Industry
Meat Retailing - Figuring The Cost And
Selling Price
Bookkeeping For The Meat Retailer
Read More Articles About: Meat
Retailing
Australia Retail Industry
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UtsavAustralia.in/Retail-Industry

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2. The comparatively small investment required.
3. The fast turn-over of capital investment.
4. The easy control of the business.
5. The absence of styles or seasons.
Fast Turn-over of Merchandise
To attain a fast turn-over of merchandise is the ambition and desire of every modern merchant. There is
practically no other merchant who turns his stock as fast as the retail meat dealer, because, on account
of the perishable nature of the products handled, the fast turn-over becomes a necessity.

Table No. 17 affords an opportunity to compare the turnover in the retail meat business with retailers in
other lines. According to these figures the meat retailer will be on the top of the list with an estimated
average turn-over of about 80 times per year. The retail grocer, for instance, has a turn-over of 10 times
per year, which means that the grocer doing an annual business of $50,000 has a stock investment of
$5,000. The leather goods store doing a business of $100,000 annually requires a stock investment
of $33,000, whereas, the meat retailer doing a business of $50,000 can do this amount of business
yearly with a stock investment of from $500 to $1,000. Fast turn-over is one of the most important
factors in business today. The retailer who turns his stock the greatest number of times gets the
maximum returns on his stock investment. Turn-over in Meat Markets In an investigation made by the
Bureau of Business Research, Northwestern University School of Commerce, it was found that the
most common rates of turn-over in meat markets in three large cities are:
Chicago once every 3.7 to 5.3 days (average, 81 times
yearly). Cleveland once every 3.2 to 4.4 days (average, 96
times yearly). New York once every 4.0 to 5.5 days
(average, 77 times yearly). This investigation also classified stores according to size alone, and the
most common rates in the three cities combined were: In one-man store once every 3.7 to 5.3 days
(average, 81 times yearly).
In two-man store once every 3.2 to 4.4 days (average, 96 times yearly).
In three-man store once every 2.7 to 3.4 days (average, 104 times yearly).
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In four-man or larger store once every 2.7 to 3.4 days (average, 104 times yearly).
In the different sized shops, the middle 50% of the turns are made as follows:
In one-man store once every 3.5 to 5.7 days (average, 79 times yearly).
In two-man store once every 2.4 to 4.8 days (average, 93 times yearly).
In three-man stores once every 2.2 to 3.5 days (average, 117 times yearly).
The above figures are the results of an investigation made in three very large cities where the retailer
has every advantage for buying and immediate delivery. These figures do not, of course, indicate the
general average of the meat retailer through-out the United States. Retarding Turn-over The fast turn-
over will be cut down considerably where the merchant is being supplied once weekly by car route
delivery. The retailer who operates under such conditions turns his stock about once per week or 52
times per year. He therefore, has not the advantages of the city merchant who can be served by local
meat packers or branch houses.

While fresh meats, such as veal, beef and pork require a fast turn-over to prevent spoilage, there are
also many items sold in the meat market which will retard fast turnover, such as smoked hams,
shoulders, bacon, smoked tongues, summer sausage, dried beef, and canned goods. While large
quantity buying usually enables the retailer to buy at a slightly lower price, it is advisable for the
retailer always to take into consideration the loss on shrinkage and evaporation which may offset this
advantage when applied to such products which have a tendency to shrink and evaporate.
Shrinkage an Important Factor As a typical example, the retailer buys a 15 lb. ham at 32 cents per lb.,
or at a total cost price of $4.80. By shading the whole-sale price one-half cent per lb., he is induced to
buy a large quantity which he feels will stay in the market for a week or possibly two weeks or longer.
In that case the ham at 31% cents per lb., has cost the retailer $4.73. As the ham is bound to shrink
approximately one-half ounce or more per day, it is assumed that he loses only eight ounces during a
ten day hanging period. While he saved on the original purchase price, he is losing 16 cents on
shrinkage or really a total of eight cents on the ham.

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In such cases, the shading in price of one-half cent per lb. is
really a disadvantage to the retailer and at the same time it
has a tendency to retard fast turn-over. On fresh meats
which are turned fast, the fraction of a cent discount will
usually offset the disadvantage of a slower turn-over. The
principal losses are usually due to the shrinkage on
products which are kept on hand too long.
Slow Sellers Retard Turn-over
Since many retailers handle some canned goods, which are
not always fast sellers, the turn-over of such products
should be watched very carefully as such slow-moving
articles will cut down the entire turn-over of the business
considerably. This can best be seen by the following
examples : A retailer has a meat sales of approximately
$1,000 per week or a total turn-over of 52 times per year.
He also adds $1,000 worth of groceries and canned goods,
which, however, he turns 12 times per year. While his turnover
on meats is 52 times per year and on groceries only 12
times per year, he has a theoretical turn-over of 52 plus 12
or 64 times per year total. Dividing 64 into the two it gives
him an average turn-over of only 32 times yearly with the
additional canned goods.
Comparatively Small Investment Required
Again comparing the retail meat business with other lines, it
has the advantages of requiring a comparatively small initial
capital investment. It is comparatively easy, and usually
entirely too easy for anyone to start in the retail meat
business. As fixtures can be bought on the installment plan,
it is nothing unusual to have men enter the retail meat
business with a capital of less than $1,000.
This of course is a decided advantage to the ambitious
individual, who knows his business well, but there is also a
great disadvantage to the industry as a whole, as it attracts
men to the retail meat business who have no knowledge of
it, whatever, and who are entirely ignorant of the intricate
details which the meat retailer must know, such as
knowledge of products, figuring of cost and selling pricces
and modern business methods.
While this is a disadvantage from one angle, the fact
remains, however, that it requires comparatively a very
small capital to start in the retail meat business. The drygoods
merchant, the hardware store, the drug store, and
practically all other retail lines require thousands of dollars
of stock to start off in business. For this they need
considerable capital, even though credit is granted to them.
If a young man anxious to go into the retail meat business is
able to secure a fair credit, he has the advantage of turning
his products so fast that he can make his installment
payments on fixtures by using as working capital the credit
extended to him by the meat packer. The small investment
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required, coupled with the fast turn-over, is a decided
advantage rarely found in any other line of business.
Fast Turn-over of Capital Investment
Dividends which are paid by corporations or companies are
declared out of earnings or profits. Where there is a
company having a capital stock of $100,000, which usually
represents the investment in the business, and this
company earns a profit of $10,000, it is said to be earning
10%. While the great majority of meat markets are not
companies and usually not incorporated, it would be a great
advantage if the average retailer would consider his
individual business a company so as to realize the fast turnover
of capital investment and also to realize the amount
of money earned on his investment.
The retailer would quickly realize that from the standpoint of
return on the investment, he is exceptionally fortunate when
compared to the man in practically any other business.
The neighborhood market, which is typical of the great
majority of meat markets in the United States, usually does
a business of from $30,000 to $60,000 per year. Such a
market generally represents an investment of from $2,000
to $4,000 in fixtures and other equipment. Considering a
capital investment at $3,000 in the market, and estimating
that the retailer does a business of $40,000 per year, with a
net profit of 5% on sales, he will have a total net profit of
$2,000 on a capital investment of $3,000, or a return of over
66% on his investment.
The item of capital investment in a market is very carefully
watched by the modern meat chain stores. They set a very
good example of bringing home to the meat retailer, the
important factor of capital investment as it relates to the
modern meat business. One finds, for instance, that the
average chain store does not, as a rule, use very elaborate
fixtures. The investment in many chain store markets which
do a business of from $1,000 to $1,500 per week, will
average about $2,500.
Comparing Meat Market to Securities
It is the ambition of every business man to get the
maximum returns from the minimum investment. When the
retailer buys bonds, stocks, or real estate, he expects a fair
return on his in-vestment. If he invests $10,000 in 6%
securities, he will get $600 per year on his investment. The
more money he invests in this manner, the more he will
receive. This principle, how-ever, does not often apply to
capital investments in the retail meat business. The meat
market doing a business of $1,000 per week with an
investment of $2,500 gets a much larger return from the
investment than the owner of a market who does a
business of $1,000 per week and who has a capital
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investment of $6,000 tied up in his market.
Examples of Investment Return
The following examples show some typical comparisons to
illustrate this business principle. It is assumed that the meat
retailer does a business of $1,000 per week.
The increase in capital invested in this market results in
only 28% on the investment, but it illustrates the importance
of watching the capital investment, in order to get the
maximum return from the money put into the business.
The business man figures that money invested must earn
something for him. Every dollar put into fixed assets or into
capital investment should be made to yield the maximum
re-turns. As a retailer invests more money in his market, he
must expect a certain increased return from the investment.
If the retailer did not invest the money in a market, probably
he would have invested it in securities or mortgages which
would give him a certain yield on his investment in the form
of interest.
A Million Dollar Investment
There are, of course, meat markets in the United States
which are very elaborately equipped. To one not familiar
with the circumstances such markets may seem to violate
the principle which was just illustrated. In Los Angeles,
California, what is believed to be the finest food
establishment in the world is located. This market and
building is reputed to have cost $1,000,000. On the surface,
one wonders how such markets can pay, but there are
usually other than business reasons behind such an
enterprise.
The very elaborate market in Los Angeles is the
headquarters of a large chain store company, and the
owner, no doubt, has put up this wonderful and. elaborate
food palace as the crowning achievement of his success.
He probably is willing to sacrifice a certain amount of profit
to be able to point with pride to an establishment
considered the finest food palace in the world. It is not alone
an advertisement, but evidence that there are men engaged
in the industry who have ideals as to what a modern food
market can and should be.
Markets Yield Large Return on Investment
The average return on the capital investment in a market is
usually very large and comparing the meat business to
other lines, the meat market man could invest $50,000 in a
market and by doing a business of $100,000 a year at 5%
net profit, it would yield him $5,000, which is equal to 10%
on the original investment of $50,000. This is considerably
more than the average percentage earned by the average
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company or corporation in the United States. The average
market owner who can earn from 40 to 60% on his
investment has a decided advantage over practically any
other line of business.
Easy Control of the Business
The meat retailer has also a decided advantage in the
comparative simplicity of his business and methods of
controlling it. By adopting common sense business
methods, and a simple system of bookkeeping, the meat
retailer without much effort can ascertain very easily the
exact status of his business and discover whether or not he
is making money. The meat retailer who deals in meat only,
and whose stock on Saturday evening or on Mon-day
morning is low, finds that it is comparatively simple to take
an inventory of stock left on hand . This is not such a simple
matter with most other retailers on account of the carrying
of larger stocks.
With the addition of a simple bookkeeping system which
shows his correct sales and purchases, the weekly
inventory will enable the meat retailer to know quickly the
status of his business.
Weekly Inventory
The practice of taking a weekly inventory is extensively
used by chain stores engaged in meat retailing. The
inventory is taken on Saturday night or on Monday morning.
To appreciate the extreme simplicity of taking inventory in
the meat business, one should compare this business to
other trades; drug stores handle many thousands of
products, the grocery stores handle hundreds of different
products and articles. By comparing it to the dry-goods
stores, furniture or hardware stores, that have to count their
products by dozens, hundreds or thousands, it will be found
that the retail meat business in this respect is exceedingly
simple, and that there is hardly any difficulty in ascertaining
the exact status of the meat retailer's business.
Unfortunately, this very great advantage does not seem to
be realized by the majority of retailers. Very few take
advantage of this simplicity in order to establish a proper
bookkeeping system so they may know their profits or
losses each week. Comparing the stock taking of the retail
meat business to that of other lines, it must be admitted that
for this reason, it is comparatively easy to control the
business, and that it has a decided advantage over most
any other line.
Absence of Styles or Seasons
The meat retailer has also the great advantage of being in a
business of supplying an every day necessity of life. Meats
en-joy an all-year round sale. Meats and meat products do
not depend upon styles or any particular buying habit or
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Home Antiques Digest
demand of the public. While the industry may suffer from
certain buying habits as pertaining to meat cutting and an
uneven demand for certain cuts, meat products as a whole
are not affected seriously by this condition. There are, of
course, a certain number of meat markets which do not
enjoy the particular advantage of a constant, all-year round
sales. These are usually located at summer and winter
resorts, such as Atlantic City, Palm Beach or similar places,
which offer a fair contrast in this respect.
While the meat merchant in Atlantic City will do the largest
percentage of his business during the summer months, he
some-times finds it to his advantage to close up entirely
during the winter months. This condition is reversed in
southern winter resorts, where the retailer does his big
volume of business during the winter season, and
sometimes has to close his meat market in the summer
months.
There are also a small number of markets, catering to very
high-class, exclusive trade, that find it necessary to close
during the summer months on account of their trade
spending the season at resorts and summer homes. While
there is a seasonal fluctuation in business in markets of this
type, the great majority of meat retailers enjoy a constant
all-year-round business.
The meat retailer, however, has the further advantage of
selling a product which is not influenced by change in style.
This is a great disadvantage in many other lines of business
where products have to be bought months ahead, and
where the sales depend entirely upon the demand of the
public. In other words, the meat retailer is not taking any
chances on styles or demands, except perhaps once or
twice a year during the holiday seasons, when some
retailers may miscalculate and over-buy, as in the case of
poultry. This, however, is a type of risk which every
business has to take.
The absence of changes in demand or style, however, is in
itself an advantage hardly realized by the great majority of
meat retailers.
THE IMPORTANCE OF RETAILING?
Why are some salons more successful at retailing products than others of equal size and/or
geographical location?
Every salon, no matter what it’s size or location, has the potential to increase their profits or turnover
by 50% from retailing.
A key problem is that most technicians or therapists are afraid to retail and/or feel suspicious that
suppliers are just trying to make more money out of them. However, this couldn’t be further from the
truth. The simple fact is that most of your clients will walk straight out of the salon and walk straight
into a retail shop to buy a product related to the service they have just enjoyed. We must be aware that
we are in the pampering business and the client does not want that experience to end the minute they
walk out of the door; they want that fuzzy glow to continue at home and the easiest way to achieve this
is if they have similar products to use. The salons that understand this concept, and consequently enjoy
the benefits, understand the most basic of human instincts… retail therapy!
Sell Well!
DISPLAYING STOCK
Make sure the stock is displayed in a enticing way; very few people will buy the last product if its
tucked away on the shelf, so ensure you always have full and attractive displays that are changed
regularly to create interest.
LOYALTY PROGRAMME
Build a loyalty programme on retail products. Most clients walk in the door for a service and, therefore,
by offering a form of discount on products that they would’ve brought elsewhere, you can increase
your chances of a retail sale (thus increasing your salon turnover). A tried and tested system used by
many of our salons is to book a new client in after 10-14 days. This 20-30 minute appointment will cost
approximately £30, which will include an ‘Essentials Home Care Kit’. At this appointment you will get
to see how often this client will need an in-fill, demonstrate the home care kits on them and explain the
importance of maintaining their nails at home i.e. save them time and money and prolonging the
treatment. The benefit for the salon is that you have more time to take on new clients, thus building
your client base and enjoying the profits from retailing. Thereafter, you could offer a further discount
after every third service.
STAFF INCENTIVE
The biggest reason I have identified for salons not doing well with retail is that most fail to reward their
staff. If your staff understand that they can earn an extra £20+ per day by retailing, why would they not
give it their best shot?
Salon owners and managers should give clear examples of the incentive and break it down to show the
girls how it can increase their income. For example, if you pay £6 per hour they could make £3 per
hour retailing. This not only equates to earning £9 per hour but is a 50% increase on their salary and
could be even higher the more they sell.
EDUCATION IS KEY!
Educate/inform the client and advise them about ‘product integrity’ i.e. how it is better to use a nail
enamel, topcoat or remover from the same manufacturer as this will help protect/prolong their nail
enhancements. You are the expert and your clients will trust your judgment. Break it up into 2
categories (1) Essential products (2) Luxury Products. Ask an assertive question, “Which product will
you be taking home today?” Avoid open questions like “What would you like?” Remember, all Calgel
products are specially formulated to be completely compatible with our gel. You will be doing your
clients a dis-service if you don’t inform them of this fact and the importance of home care.
After the service, keep good records.