Ferkauf Shnell!

Eugene Ferkauf set off waves of trouble for small retail businesses. His recent death, though, is an occasion to ponder bold tactics which might help many retailers succeed. A New York Times article, rich with details, started me recalling these:

• Mr. Ferkauf founded the E. J. Korvette store chain, which deeply discounted merchandise, pushing countless smaller retailers out of business. Two years after consulting with him, Sam Walton founded Wal-Mart. To survive and thrive in the face of competition, let us, like Mr. Ferkauf did, track the trends to create the future. He saw the growth in disposable income of consumers after World War II, the desire to move from cities to suburbs, and the transition in power from newspaper and radio advertising to television advertising. 
• Move forward to preserve opportunities. The NYT article recalls how on his second date with Estelle Silverstein, Mr. Ferkauf proposed marriage. In business, too, he acted quickly, exemplifying a ready-fire-aim approach which will suit some retailers ideally. His drive to discount dramatically led to a business estrangement from another retailer quite close to him—his father.
• Arouse drama and create stories that get people talking about your store. In his personal life, the story became that his marriage proposal consisted of him presenting Miss Silverstein with a small case carrying the monogram E S F, as he said the suitcase would suit her because she’d be marrying him. On the business front, legends arose as to how a man named Eugene Ferkauf would have a store named E. J. Korvette. “It consists of the initials of eight veterans of the Korean War,” some people claimed. Mr. Ferkauf’s version—that the “Korvette” was an intentional misspelling of the corvette class of naval ship—was equally memorable because it made no more sense. 
• Manage the clutter strategically. Korvette stores had a minimum of customer service and an abundance of clutter. This isn’t a success formula for all retailers, but do ponder how you manage clutter and how this impacts your profitability. Over the past year, Wal-Mart has been intentionally backtracking on the clutter cleanup they began earlier. 
• He was a benefactor to his community. The name of the Ferkauf Graduate School of Psychology recognizes his contributions of funds and management expertise to Yeshiva University. 
• The most successful retailers have selling in their blood. Mr. Ferkauf had it in his name. In Yiddish, “Ferkauf” means “sell.” 

Click below for more:
Distinguish Accelerating from Slowing Trends 
Fire with Small Steps Before Aiming 
Mythologize Your Store 
Clear Up Clutter Ambiguities