It’s always nice to hear about people who transformed their passion into retail success. Jakki Liberman of Scottsdale, Arizona, became a fan of cloth diapers because her daughter was allergic to disposable diapers. A graphic designer, Liberman created a colorful, waterproof outer cover for cloth diapers. It attaches with Velcro and is tough enough to withstand many washings in hot water.

That was 20 years ago. Now her business has grown to the point where she plans to open a retail store soon. Presumably, it will carry not only the diaper covers, but also the bibs she devised from the same material as the covers. Liberman already has licensing deals with the Dr. Seuss brand and is a vendor to major marketers including Babies ‘R’ Us, Costco.com, Amazon.com and Target.com. Her Bumkins website is in soft pastel blues and pinks, which certainly appeal to the mothers who visit the site to buy Liberman’s many baby products.

Then there’s Steve Goldberg and Janet McCulley, founders of the Muttropolis chain of pet supply stores. As the name implies, Muttropolis is a mecca for dog and cat owners. I’ve visited the Solana Beach, California, store several times over the years. I’m always amazed at the variety of canine/feline products and how creatively they’re merchandised. The stores are full of visual puns about pets, as is the website.

Goldberg and McCulley, of course, love their pets. But they couldn’t find a store that carried all the unique dog and cat items they craved. These include premium organic and gourmet treats, bedding, canine “couture,” bowls, carriers, a special shedding blade for dogs, and Halloween costumes for pets–the kind of things they couldn’t find at Petco or PetSmart. So they opened the first Muttropolis in 2002. They seem to have filled a niche, and have expanded to four more stores. Sales-wise, they’re doing very well in this economy that’s going to the dogs.

Butts and mutts. Two retail opportunities that some smart, passionate people have turned into retail careers. What’s your passion? If it’s not on your store’s shelves, maybe it should be.

As a frequent flyer, I’ve been pleasantly surprised lately by not just the improved quality of food sold at airports, but also by the retail design of the vendors selling it. Now that only ticketed passengers can get to the waiting areas, vendors there have captive audiences. It stands to reason that attractively designed eateries, convenience stores and gift shops are going to entice more travelers than their drab, cookie-cutter predecessors.

According to this article on Boston.com, going upscale in one terminal’s food court at Logan International Airport paid off handsomely for the Massachusetts Port Authority. It hired the retail design arm of retail shopping mall giant Westfield to handle the upgrade. Westfield got seven tenant restaurants “to splurge on expensive countertops and eye-catching architecture…to pique passengers’ curiosity so they’ll check out the concessions — and then stand in the checkout lines.”

The result? Even though passenger traffic is declining, concession sales are increasing at the terminal’s renovated food court. The warm, inviting colors and trendy design seem to help calm frenzied travelers. If they’re more relaxed, they’re more likely to spend money on food while killing time between flights.

The next time you’re in an airport waiting area, take a good look at the retail environment. Think about which storefronts and restaurants grab your attention. Then think about how you can apply their design principles to your own store. Interesting to think that waiting at the terminal gates can help your design imagination take flight.

I’ve never been to a Wilson Farms store, but I like the way management thinks. The “smaller-scale food store” chain in western New York has been in business since 1960. Growth has been steady and Wilson Farms now has 195 stores, many of which are looking pretty outdated.

Fortunately, the CEO is a forward-thinking guy who realizes the importance of good retail store design. .“We think (the old design) kind of overstayed its welcome a bit,” he says in this article in Convenience Store Decisions. “Our challenge is to go in and rebrand all our stores.”

He’s doing it the right way, too: over time. Upgrades to infrastructure, HVAC and store systems were done in 2005-06, and a prototype store was unveiled near Buffalo last year. It’s a place where ideas are tested to see what works for customers and staff. Products and merchandising also are tried out. The foodservice manager wants the new stores to suit the needs company’s needs not just today, but well into the future.

“We know customers don’t spend but five minutes in our stores,” the VP of sales and marketing says. “We don’t want to extend that if that’s all they want to stay. We want to make their shopping experience as pleasant and efficient as we can.”

Other things the chain has going for it: a history of community involvement, an easy-to-navigate website, and a practice of hiring local store associates as well as corporate executives.

You can learn a lot by following the example of retail chains like Wilson Farms. Always think about the future. Hire locally when possible. Get involved in the community. Those are just a few of the keys to success in this business. Use them to develop your own prototype store, even if it’s just on paper.

My wife and I were about to pay for our purchases at a Costco the other day when I was suddenly approached by a store employee. The handheld electronic device he was holding, he told us, was talking to the POS. It told him that our Gold membership would benefit from an upgrade at this very moment to a Premier membership. By upgrading, he went on, we would receive special discounts on select merchandise, and a 2 percent rebate on all purchases at the end of the year…or something like that.

He certainly was selling us the sizzle instead of the steak. I could tell by his urgent expression that he really wanted to close the deal right away and move on to the next customer in dire need of an upgrade. In the end, we opted to upgrade for a “special prorated upgrade fee today only” because he made it sound like a good idea.

I left feeling good about the decision to upgrade, but I also felt kind of like I needed to take a shower. It was the same feeling I had in a car salesman’s cramped cubicle when three burly guys tried to get us to sign on the dotted line before we left the dealership.

Thinking back on the experience, I was surprised that Costco would employ high-pressure tactics on customers at their most vulnerable spot in the shopping experience: the POS. While it makes perfect business sense to capture the customer data at the POS and offer the upgrade at that time, it all struck me as a little creepy. The fact that the odd-looking handheld device was receiving my personal profile wirelessly made me somewhat uncomfortable, given the huge number of identity thefts from retailer databases reported on recently.

I would have preferred that the cashier briefly alert me about the upgrade offer, and then tell me it could be paid for immediately. If I needed more info, there should have been brochures or fliers describing the offer at the POS.

I’m not about to stop shopping Costco over this. But it certainly degraded the shopping experience for me. I know it’s tempting for retailers of all sizes to present special offers at the POS. But I say make them soft-sell and with a smile on your face, not an in-your-face attitude like the guy I encountered at Costco. Maybe he’s a former car salesman?

Branding isn’t just about the way products are perceived. It’s also about the way retailers – and their stores – are perceived. I mention this because of one article I recently read about consumers in India, and another about consumers in the United States.

The Hindu Business Line interview with the CEO of a store-branding company says, “All communication should be centered on showing people the value of the brand.” This is because in India, as income rises, consumers spend more on food, fashion and lifestyle products. Times are good in India these days, he says, so shoppers don’t care so much about store design and customer service. But when times go bad, consumers look for the retail brands that offer consistently good shopping experiences. That is why, he says, “Retail design is all about unlocking the energy of the store.”

In the U.S., our sour economy has consumers looking for bargains as well as nicely designed stores. This article from the Minneapolis Star Tribune notes that supermarket giant Supervalu has found consumers are now more likely to buy house-brand products instead of name-brand items. The experts call this “trading down.” Supervalu also has learned that “sales rise 8 percent in the 12 weeks following a remodel.”

What does all this mean for smaller, independent retailers? To me it means customers will continue to buy from you when you provide products with a perceived value. It also means that you need to learn how store design affects your sales. You can easily do the latter through online or in-store customer surveys. As an incentive, offer a discount for each completed survey.

Figure out how to “unlock the energy” of your store and you should be able to weather any economic climate.

Body art, henna tattoos and an Indian hair-removal technique called threading don’t sound like the ingredients for a multimillion-dollar salon chain. Those services are mostly performed at local salons of modest means. But the founder of Ziba Beauty parlayed a retail gut instinct into an upscale chain with annual sales approaching $12 million.

This article on Inc.com tells how she did it. It’s must reading for any retailers intent on growing their business beyond a single location. Sumita Batra knew she had a hit with her original salon based on the long lines of women waiting to get in the door. She first moved to a strip mall but had her eyes set on a nicer mall nearby. Even after success led to five stores, she wanted still more. So she took the plunge by borrowing almost $3 million and hiring some retail veterans to help plan the expansion.

The pros not only helped her rebrand the Ziba Beauty name, but they also helped her decide which services should be promoted over others and how to give all the stores a much-needed facelift. Be sure to read their “Five Steps to a Retail Makeover.” It covers everything from wall graphics to uniforms to logo design.

Having the right product mix, store layout and motivated staff certainly are factors in retail success. But climbing up the ladder takes more than just knowing how to run one or two stores. Stories like Ziba Beauty’s should inspire you to analyze all the steps needed to expand into the retail blockbuster you were meant to be. Doing so will make it easier when your gut instincts take over.

I see so many retail-chain employees wearing headsets these days, I’m kind of surprised when I see staff who aren’t wearing them. I know the two-way versions help managers and staff keep in touch while on the sales floor or in the inventory room. But now I see that Casual Male is using MP3 players to help train employees. According to this article in NRF’s Stores Magazine, the stores for tall and large men’s clothing retailer lets sales associates listen to specific training topics on the job.

This sounds like a great idea for just about any retailer — and it doesn’t require a third-party training package like the one mentioned in the article. Because so many employees of all ages own MP3 players, you could use a digital tape recorder to create customized training files, much like podcasts. Even if some employees don’t have their own MP3 players, they’re certainly inexpensive enough to buy a few to keep in-house. You could distribute training files via flash drives, CDs, email or online downloads.

Because consistency is key to good training, using MP3 players to train employees would go a long way to making sure all staff members are on the same page when it comes to treating customers, working in inventory, using the POS and other store-specific topics. If your customer base is youngish, being assisted by a sales associate wearing earbuds could help make an instant connection. If older customers are your main clientele, you can instruct staff to take off the earbuds before approaching them.

For a small investment in what is now low-tech, you could turn your sales team into one that appreciates your business-savvy ways. You’ll get good word-of-mouth among potential employees and customers. And you’ll have a library of training files that should bridge any generation gap.

It’s October 7th, 2008 and the US economy is in free fall. Politicians are scrambling, the world and the US markets are spinning and frankly it looks like no one has a firm grip on just how to turn the economy back around. Consumer confidence is so low that most people don’t know whether to buy, sell, save or spend. The last thing on a customer’s mind is buying anything other than the bare necessities. So what’s a poor merchant to do?

As a retail consultant I’ve weathered two previous recessions. Some of my client’s made it, some did not. What can you do to make sure you’re a retail survivor? First, become aggressive. If you sit passively by and hope for the best your business will decline rapidly.

Second, cut expenses - now. Take a close look at payroll, advertising; any variable expense that you have some control over.

Third, reevaluate all your merchandise buying decisions. Determine exactly what’s selling and what’s not. Don’t overbuy and for items that you can get quickly, start buying as you go and keep stock to a minimum.

Evaluate each potential point of differentiation and make sure they all help boost your overall value proposition.

Fourth, drive customers to your store. How? Through more effective advertising and marketing. The fastest way to capture new customers is to use the web. Google’s AdWords is an inexpensive way to reach local customers as is Yahoo! Search Marketing, MSN adCenter, online Yellow Pages, etc. If you don’t feel competent setting up your web own advertising, find a consultant via a referral or Craig’s List.

Make sure your website is up to par as there’s no sense driving traffic to a lousy site. Build an email newsletter that reaches out to your customers with specials, events, news, articles etc. You can also place ads in local papers which provide discount coupons, giving budget-minded customers a reason to come in.

Use PR to tout your business. For example, a beauty shop could hold special events such as fashion shows, make up sessions and make-overs. A music store could host a battle of the bands or offer in store demonstrations of the newest gear. A sporting goods store could run clinics on pitching, serving a tennis ball or proper running technique. Anything can work as long as it builds a community around your store’s brand. Participate in local street fairs. Sponsor or directly participate in charity events. Do whatever it takes to get your name out in to the community all the time and don’t stop. No time? Hire a PR intern from a local college.

Fifth, emphasize your value proposition in all your marketing efforts. What makes you so great? Why shop at your store rather than a competitor’s? Is it your competitive prices? Your unique products? Your convenient location? Your friendly, well-trained sales people?

Evaluate each potential point of differentiation and make sure they all help boost your overall value proposition.

Sixth, dress up your store. If you can get people to come in, make sure they like what they find. Ask yourself the following questions to determine whether you have all the elements that make your store sing:

1. Do the window displays capture a prospective customer’s attention?
2. Do the lights in the store provide both ambient light and display lighting and are track lights focused on important merchandise?
3. Is music playing? Does it relate to your customer demographic? Remember that great music keeps customers in the store longer and they buy more while there.
4. Is the store clean? Everywhere?
5. Are the colors current? Do you need to repaint?
6. Are the display fixtures in good shape and do they merchandise your products correctly?
7. Are your products merchandised so your customers are drawn to them? If not, hire a part time merchandiser.

Once all of the above are in place, don’t forget to keep them there. After all is said and done, it’s important to remember that if you’re not moving forward with your business, you’re going backwards.

Everyone has a story about how they got started in retail. I love hearing or reading them because they show that you don’t necessarily need an MBA to start your own business.

The two women in this Boston.com article have found a great way to open their doors just one weekend a month. They devote the rest of their time to finding and refurbishing and eclectic assortment of antiques/collectibles. And they’re more than willing to negotiate price with shoppers, which gives them a great reputation among bargain hunters.

One of the ladies had owned a home store and was trying interior design. Her friend had been a designer for Disney. Both loved shopping at garage sales and flea markets. They let all their purchases accumulate in a Victorian house in a quaint village. Not content to just hold onto it all, they hit upon their business model: Fix it all up and sell it one weekend a month. They get to enjoy their other time pursuing their passion for discovering old merchandise, and make their money on that monthly weekend. Low overhead, minimal store design, constantly churned product mix. What a great combination.

The husband-wife owners of a children’s clothing store in Minnesota found one need and filled it with two. According to this article in the St. Cloud Times, the wife couldn’t find such a store in downtown St. Cloud, she decided to start one. Fortunately, her husband already had a photography studio downtown. Kids and photos — what a natural combination. Now the boutique is in the front of the store, and someone who can photograph them in their new clothes is just footsteps away.