Sportchek – a business going sideways, fast.
(No airmiles anymore, either. Hardly a gamebreaker for me, but a bit of an incentive. Sportchek isn't on the program anymore, so one slight reason less even to go in to the store and be told that the "NEW STOCK" they're hyping isn't really in that store and you should go somewhere else, etc.)
A close friend was talking about getting some new shoes
lately, and that made me think back on Sportchek, a business that used to be
private, but that is now part of a public, shareholder-driven conglomerate, Forzani
Group. You may know Sportchek as the
king of inflated pricing. For what seems
like decades now, Sportchek has used what, in the 70s, must have been a canny
ploy—you put up a pair of shoes, say the regular price is $400, then say the
sale price is $250—on virtually every item, and then maybe add a little bit
more, like, “Ok, we say these shoes cost $400; we’ll sell them for $250, but
this week only, you can have them for $180.”
It’s baffling to imagine when or for how long this ploy worked, but still
it’s the one Sportchek clings to.
Further, for what does indeed seem like decades, Sportchek
has had one special, and one special only, for what surely seems like 365 days
a year: “buy one get one ½ price.”
Who, thinking s/he needs a pair of shoes, instantly thinks: "oh, yeah, I better get 2 pair"? ?? Well, admittedly, I do live in an extremely rich jurisdiction (though not all Sportchek stores are in or near extremely rich jurisdictions), and clearly Sportchek figures, "hey, these people are rich, they'll buy all kinds of stuff they don't need." Also, there are rich young families, and Sportchek is obviously counting on this, though what dork or responsible parent would be impressed by the inflated pricing in the first place is beyond me. Obviously, this eternal “special” puts the lie completely to their phony
pricing, and makes you know everything they advertise is a joke, but Sportchek
ain’t all that swift on the uptake. And,
clearly, they don’t have to be. They’ve
known their ups and downs, but shareholders strangely stick with them, despite
their modest achievements (it's the monopoly thing, for sure). It’d be a
strange thing to sit in on one of those Forzani Group (who own Sportchek and
their similars) board meetings—a band of brothers so bloated on meatballs their
snoozing snoring guts must rock the mahogany table back and forth until one of
them snorts to life and says, “ok, this is over, let’s get outta here” It’s a wonder shareholders put up with it.
Rather than transparent pricing, actually having stock on
hand (shoes, shorts—forget it—virtually every Sportchek employee has it drilled
into their heads to say “you should try the bigger location.” Not, “we can call and see if another location
has it,” but “_you_ should try to find another location”). Genius marketing, and again, good enough for
the fatboys on the board and their skinnier shareholders.
Sportchek has always of course relied on highschool labour,
kids who work part-time for a few months.
You don’t expect them to know anything, and they don’t. (Recently, I was in an always empty store in a dismal mall I visit once
every 3 years, and I was standing there with a rep., and an Asian woman came in
looking for birdies—shuttlecocks—and a girl and a boi just looked at her like
she was a complete alien until *I*, the customer, finally had to help her out.) You can’t blame the kids for not knowing
anything—why should they? They’re not
getting paid and they’ll only be there for a few weeks, anyway, so who
cares? But what Sportchek really has
amped up—and apparently shareholders love it—is the fake customer service
end. What this means is that, say you
want to buy a pair of shoes. It says
$299 for $199, but this week $149 (70s marketing). You get the kid to get you a box of shoes (there's never much staff, so this could take some time). He brings them. He hands them to you. He says: “did I hand you that box of shoes
ok?” You try on your shoes. He says: “did I watch you try on your shoes
enough?” You don’t buy the shoes, but
you look at some socks for your girlfriend (inevitably, buy one get one ½
price). You go for those. He says: “please tell them Darren sold these
to you.” You get to the till. The girl says: “did you get really great
service?” It is just beyond belief
cartoonish. Leave me alone. Rather than do business like
professionals, the Forzani Group just wants to coast as fatboys on a 70s wave
they never have to get off, and shareholders seem incomprehensibly impressed by
how minimum wage highschool kids are made to ask if people are happy.
(No airmiles anymore, either. Hardly a gamebreaker for me, but a bit of an incentive. Sportchek isn't on the program anymore, so one slight reason less even to go in to the store and be told that the "NEW STOCK" they're hyping isn't really in that store and you should go somewhere else, etc.)
Business lesson #1:
Be lazy. Very lazy. Never think.
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