Making change
"Consumers come here to see what’s new — what’s next," Mang says. "Customers are wowed the first few times they come to the store. We want to wow them the 50th time."
Toward that end, the company formed a cross-functional team in 2001 to develop a vision for upgrading the stores. It also put together customer research study groups and discovered that customers felt the floor plan and atmosphere were confusing and dark.
"We are significantly increasing lighting levels, taking out a lot of the timber and making the stores easier to shop," says Mang. "We have improved the segmentation by gender and zone."
Research also showed that the climbing wall was a favorite store feature, so there are plans to move it from the back to a more prominent position near the center of the store.
"The research validated a lot of the opinions we were hearing from people within the company," Mang says.
Some changes are noticeable before customers even enter the door. The company has changed the name of its stores from Galyan’s Trading Co. to Galyan’s Sports and Outdoor Adventure to better reflect its product mix and positioning relative to the competition. The corporate name remains Galyan’s Trading.
Mang says that while the name of a competitor — The Sports Authority — tells you what it feels it is, the name Galyan’s Trading Co. didn’t do the same thing.
"We felt Galyan’s Trading Co. didn’t express clearly who we are," he says. "Trading what?"
Another issue that needed to be addressed was the perception in the marketplace that Galyan’s is more expensive than its competitors.
"Because we carry upscale lines that other stores don’t carry, we have the image that we are expensive," Mang says. "We are not the high-priced alternative."
To battle this image — and combat price slashing by competitors in a weak economy — the company launched a 110 percent price guarantee: If a customer finds the same product at another local store for less, he or she can return the product bought at Galyan’s and receive 110 percent of the purchase price back.
But what drives people to the store and builds the company’s profits is the depth and breadth of its product offering, not the prices.
"The major sporting goods stores drive customer traffic with big sales," Mang says. "And you can turn inventory that way. Wall Street loves it when you turn inventory. But there are trade-offs."
Galyan’s tries to focus on profit margins instead, he says.
"We have a high penetration in footwear and apparel, which have better margins. That’s part of our unique business model," Mang says.
Galyan’s also relies on its associates to drive sales, hiring sports enthusiasts and paying them competitive wages.
"We have never had any trouble finding qualified sales staff," Mang says. "Everyone has an avocation. Working at Galyan’s offers that person the chance to combine work with what he or she loves to do. Arming them with product knowledge is easy. And we pay well; with commission they can make a good living."
Mang says the company also emphasizes to its staff that they are not salespeople, but enablers.
"They are here to help people find the equipment and footwear they need to enjoy their passion," he says. "We don’t necessarily look for people with retail experience. We give them a test, and if they are friendly and enthusiastic, they pass."
The online test gives the company a better way to judge whether a potential employee has the personality or desire to serve the customer.
"A biking enthusiast that’s an introvert doesn’t do me any good," Mang says.
