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Jeff Grant's Retail Blog

Ya Gotta Hand It to Silver Platters

Written by Jeff Grant, March 30, 2007

silver-lining-shutterstock_2499378.JPGA lot of articles about large retail spaces have been circulating through the blogosphere lately. There’s no shortage of retailers eager to fill those spaces, as my last two blog entries below point out.

Usually, it seems, the new occupants are in businesses vastly different from the original tenants’. Interesting that a former Tower Records store in Seattle is now the home of a 42,000-square-foot CD-only music store. Smart move. Customers are already used to buying music in that location.

The owners of Silver Platters have clearly carved a niche for themselves in the Pacific Northwest. With the iTunes Store and other digital music services getting so much press, you’d think the CD was nearly extinct. But the Silver Platters guys figured out that there’s a vast market of buyers who still like the CD format. They want to browse well-stocked aisles and talk to salespeople who know their musical genres.

“Selection and service, service and selection,” one of the owners says. “Those are the two things that keep people coming back.” I don’t know the guy, but we’ve been on the same page for years.

Like the other big-box retailers I’ve blogged about, the new Silver Platters is becoming a destination in itself, with a stage for free music performances and a rewards program for frequent buyers.

Stories like this show that knowing your audience and how to attract them to your location are as important as ever. That’s how Silver Platters has become a big fish in a small pond.

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We Set Up a Website and Sales Increased 1,000%. Should You?

Written by Jeff Grant, March 29, 2007

Internet ArticleBy Jeff Grant
In 2001, my firm, TRIO Display, was essentially a retail design group that produced stores for professional sports teams, museums, and a myriad of individual specialty retailers. Staff was steady at four to five designers and artists and we pulled in subcontractors as needed. Display sales and design fees ranged from $500,000 to $650,000 per year, which was enough for all of us to live comfortably.

2001 was a wake-up year for me, as it was for many business owners. September 11 made me realize that if I got hit by a truck, my little business was gone and my family, while insured, would still suffer a diminution in lifestyle. I thought about expanding my business by growing the fixture end via a print catalog. I’d been in the mail order fixture business previously and knew that making a real dent required enough capital to send out at least 100,000 catalogs. Even then you were lucky if four percent of the people who received them actually opened them and that, in fact, it takes three to five mailings before customers take you seriously.

In 2002, the Web was moving forward, as was e-commerce, but the only way to reach the top of the search engines was through expensive search engine optimization (SEO, a method of manipulating website copy to push your website listing up in the natural listings) and that seemed like so much high-tech voodoo to me. Companies were spending lots of money to acquire catchy Web names and to promote them but these were no guarantee of success. In April of 2002, while using Yahoo (a portal site) for a search, I noticed some highlighted listings with a dollar amount placed after the entry. Something like this: www.dogleashes.com (.15¢). I was intrigued by the number, so I did a little research and it led me to a company called Overture.

I took one look at Overture’s program and had an absolute epiphany.

I discovered that Overture had set up a keyword brokerage (a keyword is the search word someone puts into a search engine such as Google or Yahoo). Working with Overture a firm could bid on keywords that would allow placement at the top of a Yahoo Web search. At the time our website was a 4-page brochure detailing our design services. I took one look at Overture’s program and had an absolute epiphany. I remember calling one of my associates and telling him that I had just discovered the future of our business.

Within a week we had interviewed several Web designers and hired one on a full-time, interim basis. We started building the site focusing on retail design. The keywords were very inexpensive and we spent less then $500 per month but gained new clients within days. In fact we pulled in $10,000 in design fees within four weeks and that was followed by selling the store fixtures to the customers we had designed the stores for.

With a little excess cash we invested in the site partnering with vendors to show their product on our site while they drop-shipped orders for us. Within a year, Triodisplay.com went from four pages to several thousand. We also kept raising the ante with our Overture bids and in the second year joined with Google in an Adwords campaign that soon eclipsed what we were doing with Overture. Sales doubled the first year and we hired more salespeople, designers, and a full-time Web marketer with whom I attended various industry seminars.

Five years later it’s 2007 and we now have 22 employees and still hire subs as necessary. Business is ten times what it was in 2002, and we show a profit every year while still providing competitive salaries, medical care, and profit sharing. As a 55-year-old businessman I went from a lifetime of very traditional marketing methods to embracing a new technology that was substantially different. It was a challenge but what helped was surrounding myself with open-minded, tech-savvy help that “got it.”

Within a year, Triodisplay.com went from four pages to several thousand.”

So the Web has worked for me. What does it mean to you? I talk to or work with approximately 50 retailers every week. I tell every one the same thing. If you don’t develop a Web strategy at the same time you are working on your bricks-and-mortar retail plan, you are not taking full advantage of the opportunities available to you. How so?

Most, if not all, Web-savvy customers expect a business to have a Web presence.
A Web presence provides opportunities to expand your business beyond its physical location.
A Web presence enhances your brand.
A Web presence gives you an opportunity to simply sell more stuff. Lots more stuff.

I can’t tell you how many clients I have who suffer in silence paying too much rent with too few customers just scrapping along earning less then they would if they just got a job. I typically have a discussion with every client about the idea of opening a website or marketing the site they already have. For every positive response I receive, I get 20 who provide me with the “Too’s”;
“Too expensive”
“Too much competition”
“Too much work”
“Too, too, too, too….”

My response: Too much complaining without taking any responsibility for a lack of research, diligence and effort. But for those of you who want to move forward, who want to make more money, and who want to increase the value of your business and the quality of your business life, read on.

Here’s what we suggest:

1. Figure out what you want to sell. Services or products, just make sure it’s something you have a passion for and understand. I had a conversation with a client in my office one day and we were discussing the process of product selection. I showed him a cafeteria tray that I had received from the Reagan Library for some work that we did there. I pointed out that they had bought it somewhere. So we Googled cafeteria trays, found a supplier, used some online keyword tools to determine how many people were actually looking for that type of product and quickly decided that with a little work and the addition of some other food handling products, there was the potential for a business. A decent medium-sized million-dollar business.

If you have your own business in place, the obvious choice is to market what you are already selling. You just have to make sure of one thing: That the product is sellable with keywords. Some months ago, we were helping a client sell inflatable figures for movie crowd scenes. So few people were clicking on the obvious keywords, “inflatable figures for movie crowd scenes” that it was difficult to drive traffic to the site. The people who did come were great prospects and in many cases became customers because their search was so specific. But we suggested that the client supplement his online ads with traditional media advertising and public relations efforts.

On the other hand, if you’re trying to sell dog collars, you may get so many hits with such a small return that the keyword advertising costs may be excessive. In many cases, using a broad base of keywords is not the way to go. Pick niche categories. For instance:

Don’t sell dog collars; sell leopard print dog collars.
Don’t sell musical instruments; sell harmonicas and harmonica music.
Don’t sell clothing; sell sun proof UV rated hats.
Don’t sell surfboards; sell surfboard bags and leashes.
Don’t sell lingerie; sell bras for large women.
Don’t sell cameras; sell underwater cameras.

Buy the keywords for the specific niche, not the broad category. Keyword costs will be lower and the targeted audience, while smaller, will be much more interested in the specific product your selling.

Get the picture. Sell a deep, narrow niche. Become the expert with the best selection in that category. Don’t worry about the competition as long as you can compete equally or better. Just make sure that there are keywords available on Google or Yahoo that will drive customers to your site.

Baby Ducks

2. Do the buying research. Once you pick a category make sure you have access to merchandise. Talk to your prospective vendors. Try for a drop-ship program so that warehousing and shipping inventory is not an issue.

3. Research the competition. Who’s already doing what you want to do? Are they preempting the field? Last year we decided to start selling mannequins. Talk about competition. There must be twenty fixture houses selling the same imported lines of mannequins at ever dropping prices. I had one of our Web researchers find every available mannequin line from low end to high end. We reviewed the competition, matched most but not all pricing, looked for ethnic mannequins, sexy mannequins, kids, pregnant, oversized, etc. mannequins. We found a source for foam body parts, heads, butts, hands, etc., that were not readily available elsewhere. Within 30 days we took mannequin sales from less then $1000 per month to in excess of $15-$20,000 per month. This month. Last month, and every month into the foreseeable future.

How did we do this in a packed field? By using keyword advertising in niches like ethnic mannequins, “voluptuous” mannequins, kids mannequins, etc. It also helped that we already had potential mannequin customers visiting our website in the form of clothing retailers looking for clothing racks, displays, hangers, etc, which we also advertise and sell. This cross-sell synergy is powerful and grows with every new category.

4. Hire a great Web tech and a great Web designer and an even better Web marketer. The Web designer will tell you how the site should look. Personally, I just looked at 100s of sites and picked a few I wanted to emulate. Then I gave my site to the Web designer to create. Note that the Web designer will probably be a temporary hire at least until you need full-time help.

The Web designer hands the finished design off to your Web tech who will put the site up, attach the e-commerce software, keep the bugs at bay, and more. He will also keep the site updated on a daily or as required basis. I hired a full-time tech early on and he’s been worth every penny.

The Web marketer may handle one or two tasks. Some are involved with SEO, which is not an easy thing to do and you’re fighting with lots of other SEO-driven sites. Further, it takes so long to reach the top ten in the natural search listings that you could be out of business before anybody ever found you. Not to mention that Google and Yahoo are changing their search parameters so it’s becoming much more difficult to move up the ladder naturally.

The Web marketer’s strength should be keyword campaigns. The challenge is to find and acquire the keywords that will keep you at the top of the search engines without costing so much that you can’t make a profit. In some cases we spend $1000 per month for a keyword campaign that provides ten times that in profit. In other cases that return is significantly less and the determinant is competition, pricing, availability, and a myriad of other factors we have no control over. In every case we have to test and adjust the campaign and then monitor it on a daily basis to see what works and what does not.

You may also need a writer. We did not hire a dedicated copywriter until last year because we had some good writers on staff. We decided that the site had to be more compelling, more interactive and more community driven. We needed a monthly newsletter, a blog, a weekly postcard and several articles a month to keep the site fresh. Enter a full-time writer and now a part-time public relations writer. What a difference. Our customers are happier. The site visits have increased, as have sales. In addition, all that content has driven us up the ranks of the natural listings.

5. To begin your site, (this is easy to say) just get started. Learn the marketing end by doing research on the Google Adwords site. Do the same on Yahoo and MSN’s advertising sites. It will sound like gobbledygook at first but persevere. Then do some basic Web marketing research on Google. Look for articles about Web marketing. Sign up for free Web marketing newsletters. Learn the language before you talk to a consultant. In fact, on a small scale the marketing end is not brain surgery. You may be able to handle it yourself. If not, look for someone who works with small businesses. Talk to their customers. Get costs up front. They will all want to maintain the site on a monthly basis. Do it yourself if you can. It’s not that difficult.

Set up the site and let it grow at your own comfort level. Don’t get in over your head and do realize that just like any other business a website is process driven. You set it up and do some initial marketing. You get a few orders and capture e-mails for your newsletter. You send out the newsletter on a regular basis. You put out regular press releases, add to the marketing spends with better keywords and slowly but surely grow the site. You stay on top of the competition and look for other synergistic products you can add to the mix. You add smart, savvy staff as required and, in time, you will make a profit and with luck and hard work, a big one.

I don’t mean to make this sound easy. My background is in law and business and I’m not a computer guy. I use my Mac to draw, to write, to run spreadsheets, and to browse the Web. I couldn’t program my way out of a paper bag. I started the TRIO site on a shoestring and bootstrapped it to where it is today. You can do the same thing. Get started, get help, and get going.

Jeff Grant owns San Diego-based Triodisplay.com. His firm designs retail stores and sells store displays and equipment. TRIO also performs website reviews and provides website keyword planning and pay-per-click implementation.

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Are You “Experienced”?

Written by Jeff Grant, March 28, 2007

Experienced - Trio Display - JeffMy last blog was about World of Decor, a huge retail space where the salespeople leave customers alone until they’re ready to buy. Now I see in The New York Times (free registration may be required) that retail giants like Samsung are opening huge “experience” stores where they don’t sell a thing.

“The new stores are designed to put a piece of merchandise into customers’ hands and teach them how to use it. The assumption is that after all the touching and feeling, customers will be willing to spend more.”

That’s what the article says. I can see the thinking behind it, if you’re a big corporation with lots of money to invest in getting consumers to “experience” your products. For most small retailers, though, it doesn’t work that way. You’ve got to get the merchandise off the shelves to pay the rent and wages.

But the concept does have some good lessons for the rest of us. Customers at the newer AT&T and Maytag stores get real hands-on experience with the products, from PDAs to dishwashers.

Even if you don’t have a huge budget and inventory, you can encourage customers to browse. Maybe even add comfortable couches and chairs, like Samsung does, to encourage lingering. Make sure your employees keep current on the products you sell, so they can give hands-on demonstrations. There’s no greater turn-off than salespeople who don’t know the merchandise.

I haven’t been to one of the “experience” stores. But I try to make every store our company designs an experience in itself. We do our best to get customers in your door. The rest is up to you.

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Tasty Assortment of Food Displays Available from TRIO Display

Written by Jeff Grant, March 26, 2007

Contact: Jeff Grant
800-454-4844
858-539-7550

SAN DIEGO, March 26, 2007 – From meat and potatoes to bagels and doughnuts, food retailers can find great ways to show off their creations with a full menu of display cases from TRIO Display.

“The right presentation can help boost sales for any deli, grocery store, restaurant or food retailer,” said Jeff Grant, president of TRIO Display.

“We offer a complete line of showcases, countertop cases, display counters, wall cases, bagel display cases, doughnut cases, stand-up food merchandisers, candy cases, food table bins and bulk-food displays–all delivered right to the buyer’s door.”

Other food displays available at www.triodisplay.com/fooddisplay include climate-controlled candy cases, mini refrigerated cases and tilt-out curved refrigerated food showcases.

TRIO also offers cake decorating booths for bakeries, bulk-food dispensers and bins for grocery stores, and napkin holders, sneeze guards drink-lid organizers for restaurants.

All items can be ordered online or by phoning 800-454-4844. TRIO staff will discuss the most efficient shipping options for buyers.

About Trio Display
Trio Display is a retail design and production company based in San Diego. Trio specializes in planning and outfitting retail spaces that “look good and sell goods.” Trio delivers effective, intelligent design that builds a relationship between brand and customer. Trio clients include many professional sports-team stores, the Ronald W. Reagan Presidential Library and Museum Bookstore, and the RMS Titanic exhibit store. To order from the Trio catalog, visit www.triodisplay.com/catalog or call 800-454-4844.

About Jeff Grant
With more than 20 years’ experience designing and outfitting successful retail spaces, Trio Display president and chief designer Jeff Grant works with 1,000-plus merchants annually designing stores, supplying retail fixtures and displays, and dispensing advice, ideas and suggestions. He can be contacted at jeff@triodisplay.com

Trio Display ATTN: PR 955 Turquoise Street San Diego, CA 92109

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What’s the Big Idea? 127,000 Square Feet of Retail Space

Written by Jeff Grant, March 22, 2007

neon.gifEver dream of setting up shop in a former Sam’s Club building? Margaret Ackermann did. She’s living large–and selling large–in a 127,000-square-foot retail space in Downey, California.

Her massive World of Decor offers oversize furnishings and accessories that probably won’t fit in your SUV. As she says in this article, customers spend hours just grazing through the eclectic collection of odds and ends, cabinetry, fountains and other big things that belong in big houses, hotels and even movie studios.

The founders of World of Decor obviously know their market. But I like their unorthodox approach to selling: salespeople don’t approach customers unless asked. It makes sense to me. World of Decor customers love to wander around without interruption. When they have a question or are ready to buy, they’ll let a salesperson know. In the meantime, sales staff can focus on the other aspects of their jobs, then close a deal when asked. This won’t work in every retail shop, but it seems to be paying off for World of Decor.

If a customer finds the same product for a lower price elsewhere, World of Decor will refund the difference–not just once, but for as long as the customer owns that product. The stores also conduct frequent auctions that the community flocks to. With free catered food and name entertainment like the Pointer Sisters, the auctions drive even more traffic into the stores’ wide aisles.

That’s a pretty good combination: freeing up salespeople until they’re needed to close a sale, lifetime price matching for customers, free events that engage the clientele. Even if your store is 127th the size of World of Decor, you can come up with ways to keep your customers coming back. Need inspiration? Read all about it.

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The Essential Neon Sign Guide

Written by Jeff Grant, March 16, 2007

neon_article.jpgBy Eric Fairbanks
The classic neon sign has been pulling in customers since the first one went up at a Paris barbershop in 1912. What amazed even the cosmopolitan Parisians quickly found its way to retailers in the United States; a Packard car dealership in Los Angeles, California, threw the switch on the first U.S. neon sign in 1923. Dependable and inexpensive, this simple illuminated sign has been tirelessly promoting businesses worldwide ever since.

While typically associated with corner bars and liquor stores, a neon sign is a cost-effective tool for any retail business. The glow of “liquid fire” (as it’s been called) announces, invites, and seduces, at a very small investment. The appeal of neon gets stronger as we dig a little deeper…

Neon Sign Construction and Cost
A neon sign is made of a glass tube filled with a gas (usually neon or argon). An electrical charge is passed through the gas, and, presto, you get the infamous neon glow. Though each glass tube is shaped by hand, neon signs are very inexpensive, running under $100 for a simple design. Even a custom sign spelling out your business name is reasonably priced.

“This adds up to decades of maintenance-free service for mere pennies a day.”

The Benefits of Neon Signs
Neon signs last much longer than other illuminated signs. For comparison, a LED sign, neon’s next closest competitor in longevity, has a lifespan up to 100,000 hours where the same neon sign has a lifespan double that. Neon is more energy efficient than most other bulbs, producing far more lumens per watt (except in the color red, where LED is superior). This adds up to decades of maintenance-free service for mere pennies a day (approximately twenty cents in electricity for 24 hours).

Retail Design Using Neon Signs
Designing for neon requires slightly different tactics than you would use with conventional signage. Here are some simple guidelines:

• Use a neon sign to tell people the name of your business, about a special product or service, or that you are open.

• Don’t use too many neon signs. They’ll compete with one another.

• The most effective place for a neon sign is in the display window attracting walk-by traffic.

• Softer pastel neons can be more effective for indoor signage.

• Consider the location of the nearest outlet when placing your sign. Nothing will ruin a window display faster than ten yards of electrical cord snaking all over the place.

• For visibility and safety reasons, place your neon sign high.

• For sizing purposes, generally speaking, for every inch of letter height, you gain 38 feet in legibility. In other words: a sign with four-inch letters will be legible from 152 feet away.

• You want to make it really pop? Get a flashing neon sign.

Undervalued and often forgotten, a neon sign can be the workhorse of your storefront—don’t put it out to pasture just yet. Click here to shop TRIO’s extensive line of neon signs.

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You’ve Got a Friend in Neon

Written by Jeff Grant, March 15, 2007

neon.gifDid you know that the concept behind neon signs was originally dreamed up by a French astronomer more than 300 years ago? Or that the first neon signs in America were installed in a Los Angeles car dealership in 1923?

I didn’t. All I know is that neon signs have the potential to bring in at least one new customer each day. And that a sign will quickly pay for itself. Think about it: If your store gets one additional sale of $50 a day, that’s $18,250 a year in extra revenue. Not bad for an investment of about $350 or less. Plus they only cost pennies a day in electricity.

Neon signs can be seen at night from hundreds of feet away, so they’re ideal for attracting motorists and pedestrians. I’m telling you all this to get you to visit the new Neon Signs section of our online catalog. These are indoor neon signs, so there’s nothing complicated about setting them up. Each one is easy to hang and no permits are typically required.

When we first decided to carry neon signs, I was amazed at the variety and style of what’s available. We’re offering more than 1,000 signs for business such as restaurants, hair and nail salons, locksmiths, flower shops, travel agencies, convenience stores, mattresses–you name it.

We even have them for karaoke and income tax e-file locations. If you can’t find a sign that fits your business in our alphabetized online catalog, we’ll have one custom-made for you.

I’m really sold on neon. You’ll be too after you see how it brightens up your revenues.

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A Toast to Creative Wine Merchants

Written by Jeff Grant, March 14, 2007

wine-shutterstock_2377702.JPGWhen it comes to wine sellers in Los Angeles, their cups runneth over. This L.A. Times article points out that even though business is booming, wine merchants still must do something to set themselves apart from the competition.

One is selling tastes of premium vino by the thimble-full. Another brings in fortunetellers during tastings. The smart retailers are selling wine as a lifestyle. The really smart ones are also establishing themselves as neighborhood hangouts.

The article also attests to the selling power of email and the Internet. A good email can help sell product in days instead of months. And a website can not only sell while you sleep, but also attract new customers who might have never found you in the brick-and-mortar world.

This article has great advice for any retailer. The best nugget of wisdom comes from the wine seller who wants her shop to be “a place where no one is ever made to feel stupid.”

I’ll drink to that. My firm designed Bella Vino in Virginia. Even though their wines appeal to an upscale clientele, we wanted the place to be warm and inviting for all. Because today’s wine novice could be tomorrow’s connoisseur.

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Chuck E. Cheese Founder Knows His New Customers’ Tastes

Written by Jeff Grant, March 9, 2007

bushnell -shutterstock_2772526.JPGThe same guy who founded Atari and Chuck E. Cheese has come up with a theme restaurant for the entire family. Nolan Bushnell started and later sold Atari, but I didn’t know he was behind the kids’ pizza restaurant. His new uWink franchise blends his computer and restaurant experiences.

The menu is 180 degrees from Chuck E.’s, with pan-seared salmon sandwiches and pasta served up with wines and martinis, plus some yummy-sounding desserts. You order from a touch screen on your table that also lets you play computer games with your kids or by yourself.

Even if you can’t afford an electronic emporium like uWink, you could exploit some of his ideas. How about touch screens in high-traffic areas that suggest clothing outfits or color combinations? Or print daily “menus” of special sales and offers, and hand them to customers as they walk in the door.

Bushnell designed his new place with women in mind. It gives them the opportunity to spend quality time with their families, even if computer games are involved. As the website says, “Its hip, and theres an edge of technology, but its not overwhelming, more of a scent.”

It looks like Bushnell really did his homework before opening this new franchise operation. You, too, can entice your target customers with the right mix of mood and merchandise. All it takes is a little technology and a lot of knowing what your customers respond to.

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What You Can Learn from McDonald’s

Written by Jeff Grant, March 7, 2007

www.triodisplay.comYou’ve probably heard about some renegade McDonald’s franchisees over the years. They didn’t change the menu to make headlines. But they did change the décor.

In San Diego alone, I visited or read about McDonald’s sites with themes such as ’50s diner, surf shack and upscale steakhouse. The décor didn’t necessarily reflect on the neighborhood, either. I wondered why the “surf shack” restaurant was so far inland. And the outdoor designs didn’t really give a clue to what was inside.

It looks like McDonald’s European franchisees are way ahead of their U.S. counterparts when it comes to store design. Comfortable chairs, low-hanging lampshades and complimentary iPods are among the chic elements that have won over a large number of customers.

Think about it: You want to keep your customers shopping or ordering. But do you really make them comfortable in doing so? Some well-placed chairs might make them sit and linger awhile. Cleaner-looking signage and labels can keep them interested and in a buying mood.

Euro Mac’s design changes started at the top. The Frenchman in charge of McD’s European operations had his own design studio before getting into the fast-food biz.

As the article points out, he’s doing more than just changing the restaurants’ looks. He’s redefining the brand while retaining local customs. That means making interior and exterior upgrades as well as improving the menu. His influence seems to be working, with sales growing faster in Europe than in the United States.

He’s also done something I feel every retailer should do: Create an employee manual that clearly spells out what’s expected of them and how to treat customers. Your employees are as important as anything else in defining your brand, whether you have one store or dozens.

You’re most likely the person at the top of the food chain for your retail outlets. If they could use a makeover, think about what McDonald’s is doing in Europe. They’re a global firm, but in Europe they’re thinking and acting locally.

Breakfast porridge, anyone?

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