Contest Update - $10,000 Extreme Gift Department Makeover
August 31, 2007

It has been my privilege to work directly with Barney Paradise, and Richard and Karen Yochim in the administrating aspects of this contest. It is my goal to show you how an investment of as little as $1,500 in remodeling cost, and an $8,500 product purchase can update the look and feel of your gift department. For the Yochim’s is has meant an increase in sales in their Gift Department of 55% year to date – with an entire 6 months of selling to go in 2007.

I want to take a moment to update you on the progress and early results of our contest that we promoted in 2006 in Inspirational Gift Trends – the $10,000 Extreme Gift Department Makeover. The contest winner was the Heart & Home Christian Store in Arvada, Colorado – owned and managed by Richard & Vanessa Yochim. Some previous updates have been included in both the March, 2007 & June, 2007 issues of Inspirational Gift Trends.

The initial visit to the store was scheduled for November 27th by Dave Condiff & Barney Paradise of Design Identity to review the existing floor layout, and to discuss options as to how to make an impact to increase the sales of gifts at the store. Barney made several suggestions that allowed us to limit our costs for remodeling to around $1,500. This was made possible by the fact that Barney donated his work & drawings, and the Yochim’s performed many of the updates themselves to keep costs under control.

By limited the remodeling costs, it allowed us to add several product lines into the store and increase the amount of gift inventory in the area that received heavy traffic at the Postal Office they added to their store a few months earlier.

Work was started in early January, 2007 and the new product lines began to arrive over a three month period of time from early January through the end of March, 2007. This report is the first opportunity we have had to begin measuring the success of the contest for the Yochim’s.

We will begin our report with a focus on the suppliers that donated product and displays to the Yochim’s. The sales numbers to date show you what the sales were with each vendor in 2006 at the store for that vendor, and what the sales with the vendor has been to Date in 2007. Here are the early results.

The sales Floor space dedicated to gifts increased from 150 square feet to 600 square feet. The difference in overall gift sales were as follows:

• 2006 Gift Sales – Full Year $8,728
• 2007 Gift Sales – January – June $13,559 55% increase to date

The sales increase per vendor was measurable as many suppliers donated product displays that are proving to be successful to their customer base.

Supplier	2006 Sales (12 months)	2007 Sales (6 months)	Increase to date
Abbey Press	$240	$592	+250%
Carpentree	$262	$216	+65%
Christian Art Gifts	$13	$188	+1450%
DaySpring Cards	$126	$1,358	+1100%
Dickson’s	$540	$1,028	+90%
Kerusso	$198	$1,012	+510%
P. Graham Dunn	0	$354	+100%
Universal Designs	0	$352	+100%
Totals	$1,379	$5,100	+375%

Abbey Press

Abbey Press donated a display filled with product that has certainly offered a wider selection of Abbey Press products. Sales have increased by almost 250% with this display. Sales of Children’s products have sold particularly well on the display – and they have had to reorder product for this display twice in the last 4 months.

Carpentree

* Sales of Carpentree compare the sales from the first 6 months of 2006 with the sales for the first 6 months of 2007 – for a 65% increase. Carpentree has been providing quality Home Décor for more than 30 years. Their selection in many price tiers makes them a leader for any successful Christian retailer.

Christian Art Gifts

The Women of Worth Display has been well received at the store. The display was recently moved around within the store to increase its visibility and to keep the sales floor looking fresh. A great addition for any store!

DaySpring Cards

DaySpring Cards donated a 16” of Card Fixtures (8’ per side) and their greeting card system. This was placed in a high traffic area opposite the Post Office area in the store. The installation date was around March 1st, so only 4 months of sales are included in this update. But sales of DaySpring Cards have increased almost 1100% in just 4 months over the previous year. Since the arrival of this product, the Yochim’s have also added a DaySpring Spinner Rack and endcap.

Dickson’s

If Dickson’s isn’t one of your main gift suppliers, you need to stop and make a connection with them today! They offer an incredible selection at many price points with selection that will be a hit in any store. Want to increase your sales by 90% over last year in less than 6 months?

Kerusso

Among the biggest surprise for the Yochim’s was the Kerusso Lighthouse Tower – “which is very appealing and attention getting”. The Yochim’s were skeptical about adding the Lighthouse display – since apparel had not done well for us in the past. “However we have been totally surprised by the response to the Lighthouse.” If you do not have this display in your store, you are missing sales and excitement!

P. Graham Dunn

Wall Décor is included in the selection of products on display from P.Graham Dunn. If you have never carried their products, you will want to check them out as a NEW source.

Universal Designs

Universal Designs donated a Tower Display – a 4 sided spinner that hold’s Pass-It-On Cards on two sides, and VerseMarks on two sides. This was the first display to arrive and it continues to attract multiple sales as customers buy multiples to give away as gifts to their Sunday school classes, etc. The low retail prices on the products on this display make it affordable to any shopper.

Overall – the Heart & Home Christian Store has experienced an overall decrease in sales of 16%. The store opened with a tremendous focus on the homeschool customer. This area has accounted for the largest percentage of their sales in the past. As the homeschool market changes – their sales are decreasing. So shifting their dependence on these sales with a product mix that offers a good return on their inventory dollars is needed.

They have also seen decreases in sales in Bibles, Books (28%), and Music sales (10%).

Summary

So it appears that it is a smart business decision to increase floor space and product mix in the gift area to offset the losses of product sales in other areas. A strong – FRESH – Gift Department may be the answer to setting your store apart as a destination store. Many stores are finding that book, Bible, and Music sales are decreasing, but gift sales are a part of the answer that will help them through the shifting world of retail sales.

It is my recommendation that you review how much space is allocated to your different product categories. Then look at your actual sales in each category. It is likely you need to make some shifts of how many dollars should be allocated in each category. It is likely you will need to increase the amount of space dedicated to gifts. It is likely gifts offer you your best profit margins.

So do your research, and look to the suppliers listed above – who all joined in the effort to show one retailer how increasing their gift lines of products can provide answers to sales challenges in today’s world of Christian retail.