No surprise, perhaps, that a vegetable is the one to remind us that the salad days are over.

Bob the Tomato—at least the man who voices him, Phil Vischer—nailed this year's International Christian Retail Show (ICRS) from the start.

Speaking at the event's opening Pacesetter event, the VeggieTales founder recalled how the rise and fall of his former endeavor had mirrored the arc of Christian retailing's boom years.

"The party may have ended, but our call to ministry has not," he reminded everyone. "We would actually prefer to see the Holy Spirit move with us than Wall Street."

And that was how the first ICRS under new leadership went, prompting longtime independent retail leader Steve Potratz to describe it as "the most mission-driven" CBA show he had ever attended.

Re-sized and refocused, ICRS seems to have found its role and relevance anew. While there is room for more changes to help it better serve a changing industry, there seemed to a new level of acceptance of its ongoing value.

Retailers expressed appreciation for the greater emphasis on ministry and training, while suppliers who have adjusted their investment in being there acknowledged the valuable function the event serves, even though it is mostly no longer an order-writing show.

Looking ahead, then, the big picture seems good.

Looking back on the details of St. Louis, meanwhile, the Christian Retailing team offers its traditional thumbs up, thumbs down verdict. Thumbs:

for overall excellent program and positive spirit.

in particular for the positive way in which CBA addressed the digital-publishing challenge.

to independent bookseller and panelist Darin Sennett (Powells.com), whose love for retail and books shone through at the digital-future seminar.

for Randy Alcorn's passionate encouragement to retailers at the Worship Him service.

for the great speakers at the Pacesetter event.

for the Blackwood Brothers and Gold City, whose Pacesetter Southern gospel sets got people cheering.

that the Pacesetter ran almost an hour past schedule—a late night for starting the week.

on behalf of suppliers who had to set up for ICRS in an air-conditioning-less show hall.

that it got pretty warm at times during the rest of the week, even with the AC on.

for the heartfelt honoring of former CBA leader Bill Anderson—and his exhortation to retailers to defend the integrity of their calling.

for exactly the same food each day at the CBA meal events. Groundhog Day in St. Louis.

to FaithWords for bringing in a group of A-list authors for one of the show's few big-name events.

that some of those who turned out for the FaithWords reception waited ages for the food and then it ran out. Oops.

with relief that there were plenty of bathrooms within easy reach of the convention floor, for a change.

on behalf of some gift exhibitors who were uncomfortable about being placed right next to same-category suppliers.

for the focus given to inspirational movies, a bright-spot category.

on hotels that were short-staffed for checking in conventioneers.

for limited seating options in lobby and workshop areas of the convention center.

Recapping the International Christian Retailing Show, editor's personal picks and a chance to win a free iPad—listen in as the Christian Retailing editorial team looks at the month ahead.

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Click here to download the file.

TYPE: Independent
Region: Northwest
Location: At a strategic intersection,
by a suburban downtown area and a main traffic artery
APPEARANCE:
INVENTORY:
STAFF:

How stores can stand out from the rest by focusing on what makes them the best

When we realized a few years ago that the trends in our industry were not looking good, my management team and I got together to discuss what we should do.

We visited successful independent retailers in other markets in our Northwest region to see what they were doing and asked ourselves what we could offer that no one else was.

As a result, we implemented a series of changes that saw us recently enjoy the best fiscal year ever in our 21-year history. Certainly prayer and hard work were part of the reason, but there are other factors I offer to independents wondering what they can do to turn things around.

THINK GOALS

We set written individual goals for each employee, weekly and monthly, in addition to the normal store goals. Each frontliner is given an individual sales goal for the month that details how much they are to ring up, what their average sale should be, the number of items per transaction and how many premiums they are to sell. This is based on the store's sales volume goals that are set each month, and we make sure the goals are reasonable and attainable.

In large part because of this increased sense of focus, we were able to increase our gross profit by more than 1% in the first year and increase the average sale by $1 per transaction.

When we experience a sales decrease, we are able to understand and evaluate what happened and take corrective action. This system has helped us work together to achieve goals that have blessed our staff and business.

We have been able to give staff performance bonuses throughout the year, and it has also been possible to provide a year-end performance bonus to our top performers.

We also increased our advertising budget, from about 3% to 3.5% , focusing more money on promotions that would attract new customers. As a result, we did not see as sharp of a sales decrease as others in the industry did, except when we were hit by blizzards during the winter.

THINK GIVEAWAYS

One thing that could make us different from anyone else, we decided, was that we could bless our customers. So in addition to offering to pray for them, we also set out to give away more product than anyone else.

For example, we bought magnets with scripture on them and Pass It On cards and gave them away to every customer for several months. We have twice given away a promise book to all mothers in April and May, one year also giving a long-stemmed rose to every mother.

We gave away a book to all customers in June and July that encouraged them to pray for our nation. Another time we gave away a book on prayer to as many people as we could at a local Veteran's Day parade. Copies that were left over after that effort were donated to a ministry helping returning combat troops who were having difficulties.

THINK GENEROSITY

We also decided that rather than just focus on our own concerns, we wanted to do what we could to help other Christian bookstores in the area stay in business, too. We are, after all, brothers and sisters in Christ and co-laborers in His kingdom. So we have "adopted" some stores by sending them product to help them financially, encouraging them, sharing ideas that have worked for us and praying with them.

We have helped stores do their inventory, reviewed financials and have given suggestions on how to improve their operation. We've sold product to struggling stores, including our competition, at our cost to help improve their bottom lines, and we have given them return privileges so they are not afraid to take risks.

We have also helped some stores close—assisting them in creating and helping finance their going-out-of-business promotions and creating signs for them. Most importantly, we have prayed for all these stores and let them know that what they are doing is very important. They are in a spiritual battle, and what they are sharing with their customers can change hearts for eternity.

THINK GLOBAL

We realized that we have a unique opportunity to give our customers opportunities to help people—locally and around the world—when they support us, so we have decided to look for products that we can give away to our customers and our community.

In the last several years we have been able to send thousands of soccer balls for use in evangelistic outreaches and Bibles to Africa. We try to do two promotions a year, one involving soccer balls and one with Bibles. We ask our customers to give $5 towards supplying the items. Depending on how much the balls or Bibles cost, we will double that amount.

We try to buy the best Bibles we can find, so our customers see it as an incredible opportunity to send Bibles worth $40-$70 (retail) for their $5 donation. Similarly, we have been able to send up to six soccer balls for our customer's $5 gift.

Most of the Christian radio stations and some local churches have supported us, and we even had secular radio stations helping us.

THINK GRAB BAG

Another important outcome of our leadership meeting was deciding to make more of selling premiums at the point of sale. We have items at the checkout that are specially priced, usually for $4.97. We have offered books, CDs and DVDs at different times. We also have placed special items at greatly reduced prices, at least 50% off. We have learned the hard way that most premiums need to change monthly to have the best results.

We offer our sales staff bonuses for selling certain items. Sometimes it is only 25 cents, other times it has been as high as $4. To receive the bonus, the associates must have met their sales goals.

We have also paid 25 cents for every new e-mail or customer address added to our database, and given a $1 bonus per Bible imprint. Most of these promotions last one month and vary throughout the year.

THINK GOD

For all of our efforts, we realize that, at the end of the day, it is by His grace and mercy that we are still in business.

It is not about us as much as it is about what the Lord can do for us when we pray together, set goals together and work hard to look for opportunities to bless others with our talent, time and business.

Even in the midst of this success, we realize that at any time, due to circumstances outside of our control, our business could end—but until then we enjoy a great privilege to work with a staff that loves the Lord. They also understand the importance of their jobs in the current cultural struggle for whose value system will reign.

For a more detailed list of ideas implemented in Mark Schoepke's stores, click here.

Making the most of the Christmas quarter

As Christmas product shipments begin arriving this month, stores have the somewhat daunting task of unpacking, checking in and finding storage for their seasonal selections.

How early is too early to start displaying Christmas products has long been up for debate at retail. As with the recent debate on the appropriate wording of the holiday, consumers have strong opinions and often use or withhold their dollars to make their point about when is too early to display Christmas product.

It's all about knowing the preferences of customers and learning what works best through trial and error.

"It seems to make some people upset to put Christmas out too early," said Vicki Geist, gift buyer at Cedar Springs Christian Store in Knoxville, Tenn. "We like to start putting it out in September and be set just in time for our open house in October."

The store previously offered its open house in September, but learned it was too early. Sales improved when the event was moved to October.

In order to accommodate product that rolls into Cedar Springs a month or two before display time, employees section off areas in the backroom for each supplier.

"We get two of each item out of the box—one for display and one to stay in the backroom in front of the boxes of stock—so that our employees can find it easily when they are working with a customer," Geist said.  "We carry a lot of inventory so we have to backstock a lot of product in order to have enough to last through the Christmas season."

Donna Dightman Baker, owner of Dightman's Bible Book Center in Tacoma, Wash., recommended keeping pricepoints down this year. "Twenty-dollar gifts sell well, but the $200 pictures will still be hanging there after Christmas," she said.

Priced to sell

Ordering deep on lower-priced items is important to keep items moving, according to gift buyer Linda Johnson of Wellspring Parable Christian Store in Des Moines, Iowa.

"We have a lot of interest for gifts like miniature water balls because they are priced economically for people to purchase in quantities of 15 or 20," she said.

Go-to items for Dightman's in this price range include chocolate Advent calendars from Vermont Christmas Company and an assortment of Blossom Bucket decorative pieces, both with many offerings under $5.

"Both are inexpensive and sell fast," Baker said.

Should December roll around and your store is overstocked with lots of items not selling, Michael Hupp, president and CEO of Christian Market Consultants and a former retailer, offers some advice.

"Go 20% off around Dec. 10, and Christmas cards can go half off the week before Christmas," he said. Start checking with vendors in November about closeouts for your big half-off sale starting Dec. 25. Get aggressive after Jan. 2, getting rid of the stuff by the end of January, even at 90% off. No one wants to see Christmas during Valentine's Day."

Re-wrapping best-sellers

Publishers and music labels are repackaging some best-selling projects to create new, value-priced gifts.

Integrity Music is re-releasing big catalog titles such as Israel and New Breed's A Timeless Christmas and the multi-artist Worship and Adore: A Christmas Offering.

Thomas Nelson is repackaging Max Lucado's God Came Near ($14.99) and releasing a hardcover deluxe edition with a two-color interior in November.

Readers have enjoyed Melody Carlson's Christmas novels for years, and now six of her books are available in two three-in-one editions, releasing from Revell (Baker Publishing Group) in October and retailing for $19.99 each. The Joy of Christmas includes An Irish Christmas, The Christmas Dog and All I Have to Give. The Treasure of Christmas includes The Christmas Bus, Angels in the Snow and The Gift of Christmas Present.

"Since we, like many publishers, have strong-selling titles that have been selling for decades, it is important to keep the package fresh," said David Lewis, executive vice president, sales and marketing for Baker Publishing Group. "We also bundle two or more titles into a single binding to serve that ‘value' shopper. These ‘value bundles' usually see a single printing, and they can add sales opportunities for the author, the retailer and the publisher, while giving readers a real value."

Outdoor decorating

Americans spent nearly 40% of their 2009 seasonal decorations budget on new outdoor decorations, according to a recently released report from Unity Marketing, Christmas and Seasonal Decorations Report 2010.

Roman has taken three of its popular Christmas lines—Fontanini, The Kneeling Santa and The Joseph Studio—and created life-size outdoor versions based on the original inch-high tabletop pieces.

Stores can display large pieces outdoors to draw in customers. But Geist warns that the large outdoor, and even indoor, decorations have challenges.

"We carry the large nativity from Fontanini, but I wouldn't put it outside for fear of it getting stolen," she said. "We used to carry trees, but we can't compete with the prices that are at the big box stores."

CHRISTMAS RELEASES

Roman's "Kneeling Santa" collection depicts Santa and the baby Jesus. The story revolves around how Santa keeps the importance of the birth alive through the Christmas celebration. The 48-inch yard art, which retails for $135, is made of PVC and glass.

Big Idea releases VeggieTales: It's a Meaningful Life ($14.99, Word Distribution) in October with a lesson on contentment from Larry the Cucumber. Included is "Meant To Be," a song by Steven Curtis Chapman, whose daughter Stevey Joy plays the role of Emma the Rhubarb.

Ace Collins' Stories Behind the Greatest Hits of Christmas ($15.99) offers the stories of the origins of such famous Christmas songs as "Have Yourself a Merry Little Christmas," "Winter Wonderland" and "White Christmas." Zondervan will release the hardcover book in September.

Lighthouse Christian Products follows last year's strong consumer response to its first ornament introduction in the "Heart of Christmas" series with this month's introduction of three new ornaments. Last year's Jesus, the Heart of Christmas ornament is being joined by Jesus, My Savior; Jesus, My Lord; and Jesus, My Redeemer. These hand-blown glass ornaments come in a red satin finish and feature verses that point to the true nature of Jesus and His role in our lives. Each ornament retails for $9.99.

Integrity Music releases We Adore You, an iWorship Flexx modular worship product, Aug. 24. The project provides seven "song movies" that can be played in full, or churches can customize the song structure in any progression with navigation between verses, bridges and choruses. Featured songs include "Messiah Song" (Jared Anderson), "We Adore You" (Paul Baloche) and "Adore Him" (Kari Jobe).

Seashell Topiary is a new group of made-in-the-USA tapestry woven products from Manual Woodworkers & Weavers comprised of a 72-inch runner, wall hanging, pillow and throw. Created by Sandy Clough, the collection offers the feel of a seaside home at Christmastime. The 17-inch pillow retails for $18.

Christmas RESOURCE CENTER

For more new products for the Christmas season—books, gifts movies, music and more—see the Product News listings at our Web site, www.christianretailing.com.

Digital sales offer hope as CD purchases decline

Music sales have taken a big hit in recent years, but the category still has life in it. In-store sales at Christian retail have dropped much more slowly than in the general market, and some Christian stores have seen success with digital sales.

We discussed some of the music issues with:

Brenda Harrison, co-owner of Lighthouse Christian
Bookstore in Bedford, Ind.

Charlotte Myrick, owner and manager of Baptist Bible &
Book House in Laurel, Miss.

Jeff Williams, co-owner of Bible Book Store
in Victoria, Texas

Read edited excerpts of the conversation below, and listen in on the complete discussion by clicking here.

Christian Retailing: How were music sales for you last year?

Williams: At my store it looks like we were kind of with the industry—our overall music sales were down about 13.5% compared to the previous year.

Myrick: We are not a huge community here in Mississippi, but my sales did not drop quite that much. Part of that is because we did go to the CD-burn system.

Harrison: Actually, our sales for 2009 in music were up over 2008, and if you count the (Quest) isMOD, they were up quite a bit. CDs were about the same.

Christian Retailing: How did digital sales compare to the previous year?

Myrick: Hard to tell because we got our burn system later in the year. We noticed that we were losing sales because of Internet sales and that sort of thing. It was impossible for us to keep everything on the shelf for last-minute sales especially, so we decided to go with the burn system because in this instance, people think that they have to have it immediately, and that was the easiest way for us to get it almost immediately.

Harrison: We installed ours in 2008. Our sales in 2009 on the burn-on-demand were up 34%.

Most of our burn-on-demands are for accompaniment tracks. We still stock accompaniment tracks and regular CDs, too.

Williams: We installed our system in late 2007, so I had a full year to compare 2009 to 2008. Last year, only 4% of my total sales that were digital or burn-on-demand were in regular CDs, but it was 84% in tracks. Overall from 2008 to 2009, I saw just a slight increase in digital track sales, just about 3%. Full CD sales, burning complete discs, had over a 500% increase, so I am seeing a huge increase in digital sales in the way of full CDs. ... That's just coming into its own here in our store.

Harrison: I don't have sales broken up into categories, but I do know that 18% of our music sales in 2009 were burn-on-demand.

Christian Retailing: What are you doing to increase music sales?

Williams: The on-hand stuff we still carry on the shelf. We are trying to be more aggressive about getting new releases and best-sellers really right up front and away from the music section. We have one of those little roll-around mobile carts and I am trying to bring more attention to that.

But really we're seeing a much faster increase in digital. We added a second listening station last year, and a second myMEDIA BurnBar system and put it up front, and we're trying to get every customer that has any interest in music at least in front of it. We're finding that once people really understand the capabilities of the digital stuff, they are really impressed.

Myrick: We have found that it's very important when a customer walks into the music department to introduce them to the (burning) program—take them over, sit them down, let them know what to do. We have three listening centers. People come in now—some of them will stay for hours. We had a man a Saturday or two ago that burned 24 CDs.

There is a learning curve. They do have to learn what you have and how it works. Once they realize how easy it is to use, they're just blown away that they can sit there and listen and pick out music that they would have never heard maybe before.

Harrison: The fact that we have listening stations for customers to listen to CDs helps the sales. We have two burn-on-demand systems, and on one of those, we do have stools because, as Charlotte mentioned, especially if they are doing accompaniment tracks, people can spend several hours looking through the songs to pick what they want.

Myrick: We have tables set up, with two listening centers on one and another kind of listening center for other things. We have chairs there.

Christian Retailing: How have sales been this year?

Myrick: March is not necessarily a huge month because most people have already bought Easter things and whatever earlier, but we burned about 220 tracks.

Williams: We are seeing the same results this year. Compared to last year's first quarter, this year's digital, full CD sales were up 674% and our track sales were up 55%. There was a learning curve—people getting used to (it). We moved one of the listening stations away from the music department and actually put it in a different area of the store, and that has stimulated some additional sales because it's in an area not directly related to music.

Harrison: In January, burn-on-demand CDs, most of them probably accompaniment tracks, were up 38% from 2009. CD sales have been consistent, too, for us. We promote supplier promos for the regular album CDs—free CD with purchase. We also feature a CD sale rack for the albums that we have in stock.

Christian Retailing: How are customers adapting to in-store digital buying?

Williams: Word-of-mouth is really starting to kick in for us. We are into our third year now, but it has just taken awhile to get the public to understand what it's about and really look to it. The presentation, the software, the whole processes have improved greatly over the last two years—I think it's much more user-friendly and you can produce your end product much more quickly than when the system first came out.

Myrick: I think teens and young adults just know exactly what to do. It's your choir directors and folks that are a little older that are not that into this type of media. But once they learn how to use it, they're wild about it. But you do have to introduce it to them, and so my employees have been instructed: You take them over there, you sit them down, you show them how simple it is and from then on you don't have to do a thing. They just go straight to the chairs and sit down and start listening. The middle to older adults you have to introduce them to it a little more.

Christian Retailing: What do you see in the future?

Williams: About midyear in 2009, we cut the number of CDs that we carry in the store in half, and I'm looking to do that again. We just keep pushing that inventory down—with the (burn) system, as up-to-date as it is, many times new releases are available to be burned on the same day they are available on the street.

One of the biggest things I'm hoping is that we are able to put music directly to MP3 players or memory sticks. That's going to be the next step in the process, where you don't actually have to burn it to a CD. Th e younger crowd, all of them carry MP3 players. They have them in their pockets when they come into the store, and I think that would be another advantage to where we could just load it directly to their MP3 player and cut out the cost of the burning and the jewel cases and stuff.

Myrick: It is moving and changing so fast it's hard for me to keep up with, because I'm from an older generation. Trying to keep up with the changes is mind-boggling sometimes, it really is. Just by the time you get everything set up, it changes again and then you have to do it a different way.

Christian Retailing: What advice would you give to retailers struggling with their music sales?

Williams: If you don't have digital, you need to get it in the door. Try to understand where the market is for your location. We are selling more and more accompaniment tracks. Somebody said that we live in a society of instant gratification. You really have to promote that to your customers, that we've got 10,000 accompaniment tracks that you can take home with you today. ... You really have to keep that in front of your customers. The buying public is interested in that immediate satisfaction, and we need to make sure they are getting that in our stores and not going to an online place to get the same thing.

Harrison: You do need to get the burn-on-demand. Customers appreciate being able to find (something) and get it right then and there rather than special-ordering it. Accompaniment tracks are something you might need immediately for a funeral and to be able to do it right there. I agree that the future is probably downloading directly to MP3 players.

Christian Retailing: How can suppliers help?

Myrick: Since the music industry is hurting so badly right now, it would be wonderful if they would come on with us and say, "We will give you incentives because you are selling our music without it having to ship, without a warehouse." Give us a better discount to move this music, so we can say, "If you come into our store and you burn it, you can get it for a little less than going online." If they would help us promote it and let us offer a better prices, it would probably increase their sales tremendously and they wouldn't have to keep the inventory. It costs a lot of money to warehouse all that stuff, so cut the warehousing and give us a better deal.

Williams: From one of the publishers, we are not seeing the new releases become available on the burn system until significantly after they are available on the shelf. I haven't been able to figure out why it's not to their advantage to be in place. The distributors, the publishers need to support this effort through making sure everything is available as quickly as possible on the release date.

I can envision in another two or three years when very few people are going to have hard CDs on the shelf, with the exception of some of the genres like Southern gospel. It's kind of frustrating to have customers come in and have tell them one new release we can burn today, but not another. Trying to explain that to the customer is a challenge, but I think the industry as a whole needs to climb onto this on-demand stuff.