Canada's business magazine for traditional natural health retailers

Things You Can Do for Your Store to Thrive

dave fuller articleMany retailers are stressed at the thought of what is happening in the health food industry right now. Amazon buying Whole Foods, the erosion of margins with online shopping, and more and more products showing up in the mass market.

If you want to survive as a health food retailer in the next couple decades, you are going to need to do things differently than you did in the past.

  1. Exclusive products

To survive, health food stores are going to need to have their own brands that are not available everywhere.   To have access to this, health food retailers will need to have a supplier that is giving them brands of products that are not available in the mass market.  While you may feel you need some mass market products, your customers are coming to you because you are the trusted advisor. If you have the knowledge to help them address their problems and concerns, they will buy what you put in their hands.

  1. Niche markets

Health food stores who survive the change in the retail environment will have to have specialty niches where they are able to identify their potential customers and offer them specific products to satisfy their needs.  Perhaps this is an anti-aging clinic, the men’s testosterone stop, or the skin care centre.  This may mean that you will have to do things that you didn’t do in the past: offering services that are difficult to do, or products that are hard to get.  Health food retailing will be getting harder, but the creative will thrive. 

  1. Human contact

Millennials, Generation Xers and upcoming generations are going to want the human aspect of retailing that baby boomers had and then some.  While we all might be on the computer more, we all crave to be touched, spoken with and humoured. Physical touch and real human presence is hard to experience over the computer. Brick and mortar health food stores will be around as long as they can offer this.  Store owners are going to have to encourage their staff to develop meaningful relationships because this is what customers want.

  1. Experiences

   It’s true that 3D is coming to retailing online, but you can’t taste food, feel fabric or smell scents online. Health food retailing is going to need to give customers even more experiences that fill the senses.

  1. Business knowledge

It was once the case that you could open a health food store because you wanted to help people have a chance of success.  The chance of success now has been significantly reduced. In the past, store owners would spend money in advertising without measuring the results and set margins and price products upon a whim. Look at financials once a year and rely on your accountant to interpret them.  Future store owners are going to need to be strategic, cunning and knowledgeable to thrive.  Those that understand how business works and how they can create value for their customers, are going to be successful.

Health food retailing is changing but those who can adapt will be able to feed their families, hire great staff, help their customers and contribute to their communities for years to come. 

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The high maintenance employee

high maintenance employeeDo you have someone on your team who you think of as “high-maintenance”? What do we mean when we throw around that phrase? The workplace behaviours I’ve heard supervisors describe include:

  • Chronic complaining.

  • Demanding the supervisor’s constant attention

  • Dependency, needing ongoing direction

  • Endless questions, concerns and problems with any work assignment.

Note that all these behaviours are inter-related. And they involve a pattern, not one-time events.

Recently, I came across the concept of the “Adversity Quotient.” Dr. Paul Stoltz defines the Adversity Quotient as “the capacity of the person to deal with the adversities of his/her life.” The high-maintenance employee has a low Adversity Quotient. Instead of meeting challenges with resilience, they blame others and make excuses.

And somehow there are always things going wrong in the lives of high-maintenance people. They are perennially at the centre of some sort of drama.

Up to a point, I’d say that it’s your job as a leader to rise to the challenges that high-maintenance employees bring to the workplace and help them make the most positive contribution possible. Some really high performers can be a challenge to manage or work with together on a team, yet the value they bring to the organization outweighs their less desirable behaviours.

If you find that you are continually avoiding or ignoring someone you consider a high-maintenance employee, it’s time to get analytical. Did they get proper training in the first place? Do they have objectively more on their plate than they used to have? Would they benefit from more structure, more directives from you, rather than a hands-off management style that their co-workers seem to prefer?

And what’s your part in this? Could your own instructions be clearer, or expressed more effectively for this person’s learning style? Could you be more generous with praise and appreciation to help build their confidence? Are you setting and upholding boundaries so that you get uninterrupted time periods to focus on others or your own work?

Or are you allowing the high-maintenance employee to cross those boundaries and take up your time whenever they want, even if you resent it?

After examining your role in the dynamic with the high-maintenance employee and resolving to change some of your own behaviours if needed, you can coach this person on alternative approaches they could take for a more productive work relationship. For example:

  • Set up specific (and limited) times in the day or the week when they can come to you with questions and problems.
  • When they do bring a problem, ask them to always recommend a solution.
  • Ask them if they notice any patterns in the problems they bring to you.
  • Ask if there is any part, even a small part, of a situation they’re willing to take responsibility for.
  • Brainstorm a list of possible actions. Keep asking, “What else can you do?”

Show your appreciation

Let’s say you take all these steps and you notice some improvements – a little more self-sufficiency, fewer complaints, some follow-up on your suggestions. If that happens, be sure to let the person know you’ve noticed and you appreciate their efforts. People do more of what they receive positive reinforcement for doing. They tend to lapse back into old behaviours in the absence of that positive reinforcement.

If there’s no sustained improvement? If the high-maintenance employee is otherwise doing good work, you’ll just have to maintain your boundaries and be sure that they get no more than their fair share of your time and attention. If they are performing poorly, follow your steps for corrective action, just as you would for any other employee.  • 

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Fulfilling your store's customer service potential

rebecca torpie1Rebecca Torpie, former marketing manager for a natural foods co-op in Philadelphia and now a consultant in marketing and brand strategy offers some insight on exceptional customer service.

Even with brick and mortar retailers struggling against online stores, and the mass market undercutting prices on natural and organic products, our industry has an opportunity for competitive advantage—offering exceptional customer service. Is there room to up your store's service game?

Recently, I had a conversation with my colleague Rebecca Torpie, former marketing manager for a natural foods co-op in Philadelphia and now a consultant in marketing and brand strategy.

Carolee Colter: Define customer service...

Rebecca Torpie: There are several pieces to customer service.  This includes having operation systems in place to meet basic expectations; for example, having an accurate POS, adequate parking, and clean washrooms. Beyond that, customers have expectations to be wowed and delighted.

Carolee Colter: How do managers make certain that wowing and delighting occurs in their stores?

Rebecca Torpie: First, leaders must articulate to the staff what it means to be a great customer service operator. If you can’t articulate it, you can’t share it. You need a customer service philosophy. Using an “off the shelf” philosophy developed by others is okay as long as you follow through and ensure that philosophy is used throughout the entire store.

Then you need to ensure training is done systematically for all employees at all levels, and not just for new people. Plan for training, say, every quarter or every six months.

Carolee Colter: What methods work best for staff training?

Rebecca Torpie: There should be written materials for trainers to follow to ensure consistency in what people are taught over time and across departments. Role playing works very well for practicing responses to difficult interactions so that people feel prepared. Be aware that role playing could make people uncomfortable, so keep them light and fun. And make sure staff feels comfortable going to their managers with a question.

Carolee Colter: How about training for internal customer service?

Rebecca Torpie: Customers observe how staff members interact with each other. In the training, address how to handle peer-to-peer interactions, including across departments.

Carolee Colter: At a store I consulted for, they had a saying, “Stay, listen and learn.” If you don’t know the answer to a question, take the customer to someone who knows the answer and then stay and listen to your coworker’s response and learn the answer for next time.

Rebecca Torpie: Also, budget for desk time and research time in employee schedules so they can learn about the latest products. Cultivate a culture of using downtime for learning. Also take advantage of sales reps’ offers to train about new products.

Carolee Colter: Another learning opportunity comes if a manager needs to step in to “make it right” with a dissatisfied customer. Then the manager can debrief with the employee, do active listening, acknowledge any bruised feelings and coach on how to handle it next time.

In the end, the culture of an organization is what the leaders actually do, not what they say. Should leaders always be asking themselves, “How do I personally delight and wow the customers?”

Rebecca Torpie: Leaders certainly do model for the rest of the staff. You can’t expect the staff to do what you won’t do.

Carolee Colter: How about leaders who are introverts? Once an introvert explained to me that everything he did in public was “theatre.”

Rebecca Torpie: Some people have a high comfort level interacting with customers, others less. But customer service is a part of doing business. You need to put on your social face and not fake it. It’s about quality, not quantity. If you make two good touch-points with customers that are excellent, that’s better than ten that are mediocre. •

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Make your health food store a winner

make your health store a winnerWhich silver car is it?  Tony Kibonge shouted, as I tagged a car and he raced by. This race to the silver car was a re-match of another race I had won one cold morning in Stuart Lake. We had raced through the water up to my chest and Tony’s neck!   While I had won both races, the truth of the matter is that Tony ­– who is 13 years old – is a much faster runner than I am.  In fact I think he might be one of the fastest 13 year olds in the country.  However, in both races, I made sure that I had distinct advantages. I really had no intention of losing, although in both races it was a real possibility.  More on that later.

But what about you? Are you intent on winning with your store? Do you have a strategy or are you going up against, quicker, faster, better competition and just hoping that you are going to win, without really even a hope?  So often we are going against competition that is so stiff that our goal is just to keep our heads above water and pay the bills. 

Give yourself an advantage

So why don’t we change the game?  When I raced against Tony Kibonge and his class the first time in a lake, I knew I had a clear advantage.  I knew that I weighed 100 lbs more and was a good eight inches taller than Tony and this would help me as I moved against the water in the lake to the finish line. In business, we often think that we have to run the race that our competitor has already established an advantage in.  I knew that if I was to race Tony in the 100, 200 or 400 meters that he so loves to race,  I would be left in the dust. So I don’t race those races.

In the health food business, we too need to change the odds so that they are in our favour. We need to think about what we are better at than our competition, both online and mass.  If our competition has better prices than us, then, we better focus in an area where we can add value and price is less of an issue.  This may be great service or exclusive products.  To distinguish ourselves, we need to really be different and find customers who are willing to pay for that difference.

Setting goals

And what does winning mean? In every race, there is a finish line and a goal that we are striving for. However, most small retail health food stores don’t have real goals. We are just plodding along hoping that our store is going to grow without having any real plans, any targets for sales or marketing, profit, or any other measurable outcome. 

If you would like to double your business in three to five years, you need to grow at 20 per cent a year.  So, how do we do that?

  1. The first step is to establish a goal and to write it down.  Put that goal up on a wall or white board – somewhere you will be reminded of it often and everyone on your team can see it. 

  For example, “Sales Target: by 2020, we will have two million dollars in sales.”  

  1. Pick a Strategy to Achieve Your Goal – It might take time to work this out with your team, but if you want to get people on board, you might want to include them in picking the best strategy. If you have a really small store, it might mean that you need to set time aside to put some thought into how your business will achieve the goal.  What specific customers are you going to go after? Where is the area that you are going to have a distinct advantage over your competition? Do you need to change your pricing model or your marketing strategies?
  1. Lay out some tactics to achieve the strategy. These might be things like: We are going to start putting on more seminars in the store; we are going to focus on brain health this year; I am going to spend 50 per cent of my time each week working on the business and getting more people in the store, and 50 per cent working on the floor. 
  1. Measure your progress.  Once you have started working towards your goals by implementing your strategies and tactics, you need to measure the progress and celebrate the wins. In the retail health business, we need to play to our advantage.  Just as I tried to beat Tony by setting the parameters of a race that I could win, you need to do the same thing with your business.

Focus only on areas where you have an advantage. Know where the finish line is, and celebrate each and every accomplishment. Make your health food store a winner! •

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Social media and your staff

social mediaWhat role can your staff play on social media?

How can they represent your business?

To answer these questions, I turned to Holly Fearing. As a social media advisor with the Filene Research Institute at the University of Wisconsin, she helps credit unions, co-operatives, small businesses and non-profits use social media channels to find and connect with their target audiences. She’s also president of the board of Willy Street Co-op, a three-store natural foods co-op in Madison, Wisconsin.

Informally, employees can share your store's posts on their personal social media channels, Holly suggests, and even add a personal connection that will resonate with their followers, e.g. "This is a perfect example of why I'm so proud to work for my store!" 

However, you could have a more formal program with certain employees designated as  “brand ambassadors.” By asking for volunteers, you’ll likely get the most enthusiastic staffers and also give a voice to an individual or department that feels under-represented.

At one natural foods retailer, an employee who took photographs as a hobby became a brand ambassador. Her artistic photos of products are now featured on the store’s social media.

Holly advises giving staff high-level guidelines:

  • Don't use any personal information, including names and photos of individuals, without permission.
  • Refrain from saying anything that doesn’t match your store’s brand.
  • Stay away from controversy and confrontation. “If you wouldn’t say it to your grandmother, don’t say it on social media,” Holly cautions.

LinkedIn

Brand ambassadors can also respond to customer questions on social media in a customer service capacity much as they would if roaming the floor and were asked a question.

Another role for staff on social media is as recruiters. If any of your people are on LinkedIn, they already have the capability to connect and network with others in our industry. “There's a networking group for almost any professional topic,” Holly says, “and people really help each other out with ideas in LinkedIn groups. It's also a fantastic place to advertise job openings, recruit new talent and showcase your organization's culture for those looking at your store to potentially apply for a job there.”

Of course you need to stay in compliance with your provincial Employment Standards. If an employee voluntarily chooses to share store posts on their own social media, you can thank them but make it clear that they are not “on the clock” when they do so.

However, if you ask an employee to be a brand ambassador or recruiter on social media, their time must be paid. And you’ll want to put some boundaries around their hours on social media so that they don’t inadvertently run into overtime. Holly gives an example of a food co-op that set 10 per cent of an employee’s hours for brand ambassador activities. This full-time employee then knew she had four hours a week to spend on social media.

With the proliferation of mobile devices, this time might not all be spent sitting in front of a computer; it could also involve roaming the floor, taking photos and texting. To avoid the impression that an employee is using a cell phone on personal business, Holly suggests wearing a button with a message like, “Hi! I’m a brand ambassador.”

Finally, I asked if millennial customers and employees tend to favour social media more than other generations. Holly replied, “Millennials were the ones who cracked the nut of what is possible in digital communication channels. But all generations are using these channels now.”

For more ideas on social media for your store, you can contact Holly at holllyfearing@cdsconsulting.coop.  •

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Nine ways to make your business healthier

alive rick kroetschRick Kroetsch, associate publisher of Alive Publishing Group had some wonderful information to share with retailers who attended the Puresource retailer conference in June.  The basis of his presentation was to inspire attendees to be opened minded in their quest to make their stores healthier.

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The Decision Matrix

When an organization is going through rapid change, roles within the organization change, too, and not always  in a consciously thought-through manner. Expansions can result in forming new layers of positions.

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What is CASL and why do I need to comply with it

 casl lawa wendy hulton(CASL) came into effect back on July 1, 2014 and while Canada was late to the anti-spam movement, it caught up fast with one of the toughest and widest reaching anti-spam regimes to date.  


 

(CASL) came into effect back on July 1, 2014 and while Canada was late to the anti-spam movement, it caught up fast with one of the toughest and widest reaching anti-spam regimes to date.  

But CASL applies to much more than traditional “spam.”   CASL applies to all your electronic messages (think email, text, SMS, etc.) that you are sending in Canada, if any aspect of the message encourages participation in any kind of commercial activity.  You can stop reading this article now, if you already know that CASL (with a few exceptions) essentially prohibits sending commercial electronic messages (aka CEMs) to anyone in Canada without their consent.

 Under CASL, consent can either be “express” or “implied.”  Express consent is preferable because it remains valid until it is revoked.  In order to obtain express consent, you must clearly disclose: (1) what you are seeking consent to send (promotions, sales, etc.), (2) information identifying the sender, and (3) mention that the party may unsubscribe at any time.

Implied consent, for example, is valid for six  months from the date the recipient sent a request for a quote to the sender, unless withdrawn sooner.  Implied consent also applies if there is an “existing business relationship” between the sender and the recipient, based on the purchase of products or services between the parties within the past two year period preceding the date the CEM was sent.

CASL’s provisions allow CEM type messages to be sent without full CASL compliance in a B2B context such as messages sent within an organization, or by an employee, representative, consultant or franchisee to another employee, representative, consultant or franchisee of that organization, in connection with the activities of that organization or to another organization, if the organizations “have a relationship” and the message concerns the activities of the recipient organization.

Messages sent in the context of a “Family Relationship” or “Personal Relationship,” are also exempt.  In this case, “family” means individuals related by marriage, common-law partnership or a legal parent-child relationship and a personal relationship typically means individuals who have had in-person, voluntary, two-way communications where it would be reasonable to conclude that they have a personal relationship.

CASL also contains provisions that permit one commercial electronic message to be sent following a referral by any individual who has an “existing business” or “non-business relationship,” family or personal relationship with the person who sent the message and that discloses the name of individual that made the referral and the fact that the message is sent as a result of the referral.

So, what happens if you don’t comply with CASL?

You run the risk of potential significant penalties and lawsuits.  CASL provides for either actual damages or statutory damages of $200 for each violation, up to a maximum of C$ one million/day for individuals and C$10 million/day for corporate entities.  In determining the final amount of damages to award, courts analyze the personal/corporate history of the violator(s), the financial benefit obtained and the nature and scope of the violation(s).  Considering that marketing campaigns may involve millions of CEMs, potential damages under CASL may escalate very quickly. A person can seek to avoid liability for a violation by showing that it/he/she exercised due diligence to prevent the commission of the violation, among other common law principles. 

Examples CASL enforcement action over the last couple of years:

  • Compu-Finder

The first notice of a CASL violation involved 3510395 Canada Inc. (doing business as Compu-Finder), which was slapped with an administrative monetary penalty of $1,100,000 for repeatedly sending CEMs without recipients’ consent, as well as sending CEMs without a properly functioning unsubscribe mechanism.

  • PlentyofFish
  • In the second CASL case, PlentyofFish Media Inc. (PoF), the operator of the online dating web site Plenty of Fish, voluntarily entered into an undertaking with the Canadian Radio-Television and Telecommunications Commission (CRTC) in order to settle several alleged violations of CASL.  These included sending CEMs to registered users of its own web site that contained an unsubscribe mechanism that was not set out “clearly and prominently” and was not able to be “readily performed.”  PoF’s penalty was only $48,000.
  • Porter Airlines

In the third public CASL case, Porter also entered into a voluntary undertaking with the CRTC after Porter was found to have sent CEMs to email addresses for which it was not able to provide proof of consent, as well as sending CEMs that did not provide complete contact information required by CASL. Other CEMs sent by Porter either contained no unsubscribe mechanism or one that was not set out “clearly and prominently”, and there was at least one instance where the unsubscribe mechanism was not given effect within 10 business days as required by CASL. Porter’s penalty was $150,000 and Porter was obliged to take corrective measures such as updating its mailing list and ensuring that its CEMs met form requirements, as well as implementing a compliance program.

Rogers Media Inc.

Rogers Media paid $200,000 as part of an undertaking to resolve alleged violations of CASL. The CRTC’s investigation alleged that Rogers Media failed to comply with various CASL requirements between July 2014 and July 2015.  During this period, the company allegedly sent commercial emails containing an unsubscribe mechanism that did not function properly or which could not be readily performed by the recipient.  In addition, in some instances, the electronic address used to unsubscribe was allegedly not valid for the required minimum of 60 days following the sent message.  Rogers Media also allegedly failed to honour, within 10 business days, requests from some recipients to unsubscribe from receiving future commercial emails. 

Why should you be more concerned about CASL after Canada Day?

As of July 1 of this year, Canadians will also be able to launch private and class action lawsuits to collect damages for violations of CASL.  Because the CASL requirements are so broad, so strict and so easily violated, most people expect to see a flood of CASL-specific class action lawsuits.  The private right of action allows parties to sue for actual and statutory damages. Statutory damages could prove to be quite significant.  If your organization has cyber / privacy liability policies, you may want to determine whether they cover third-party claims, class actions and penalties arising out of privacy/CASL violations.   You may also want to check any applicable directors’ and officers’ liability policies, as they may exclude marketing or privacy violations.

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Why a project manager?

why a project managerWho is your project manager?” is one of the first questions I ask when I start working with a store on a design project. I’m often given a look that says, “What do you mean?

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Five things you can do to get your customers to buy more often 

dave fuller 1articleMy friend Aaron likes to tell the story about how he arrived at a hotel and how they greeted him at the car. Shortly after, a staff member said, “Aaron, you’re a Manchester United  fan, aren’t you?

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Emotional Intelligence in the Workplace

The concept of emotional intelligence is now part of popular culture. Just as we each have an IQ or intelligence quotient that measures cognitive ability, some social scientists say we have an EQ or emotional quotient.

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Mixing marketing with interior design

Mixing marketing with interior design

Walking into a Whole Foods or a Loblaw’s is exciting for most people for so many reasons: the food smells simply incredible, the atmosphere is electric with the chatter of happy shoppers and the ring of the registers is almost soothing. These aren’t just circumstance - they are planned. Just like the floor you walk on and the perfectly lit product you race to.

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The price of survival

Perhaps the most challenging aspect of running a retail operation in the wellness industry in Canada is working with suppliers who have inconsistent or unsustainable pricing strategies.

The result is that retailers are left between a rock and a hard place and have to be very adept when setting their retail price.  Just high enough to maintain margins, but low enough to retain credibility.   Due to market conditions, online sales, and industry consolidation, this balance is and will become increasingly difficult.

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Building a sales system

Building a sales system

One of the keys to a business’s success, and a factor that needs to be paramount in the success of many small businesses, is the ability to relate to customers and sell his products and services.  While selling seems to come natural to a few people, to most of us entrepreneurs, it takes work and we need to understand that there is a science to it.  Below are the steps to being successful in selling.

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The Recommender

Perhaps the most important role in natural retailing is the role of the recommender... the person who helps choose which product will bring the greatest benefit and value to the end user, the consumer.

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Creating accountability

A manager of an independent natural food store, when her store was smaller, met individually with her department managers every week to talk about how things were going in the department. If this GM noted any performance issues in the department, she would bring them up in this meeting. She would ask if the manager wanted any help in strategizing how to address the issues. Sometimes they would go over “talking points” for the manager to use in a conversation with an employee.

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Capital budgeting without the headaches

For entrepreneurs without a strong financial background, the job of capital budgeting can seem overwhelming.  Capital budgeting – essentially the process of deciding how to invest excess cash within a company on items that are not regular “operational” items – covers a wide range of activities, and can include everything from purchasing a new piece of equipment to making a substantial investment in capital assets for a new location. 

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The Core Shopper

I believe the core shoppers of health food stores amount to about 15 per cent of Canadians.  The core shoppers are fully engaged with the natural health food store lifestyle.

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Running an impeccable front-end

Running an impeccable front-end

You can have great merchandising, selection and product knowledge. But customers’ experience checking out through your front-end can make or break your store. How people feel after that interaction determines how they feel about your company.

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Sales. profit, inventory

The three key areas to focus on in order to thrive are sales, profit and inventory.  Sales is generally the first focus of a business because without sales, there is no business. 

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CNHR News Podcast

cnhr radio hour

News, Views and Happenings in the world of Canadian Natural Health.

Check out this month's podcast here

March-April 2018- Show follow-up

Follow-up with retailer show attendees with an ad in CNHR’s March-April issue.

Thousands of retailers will be walking the show floor at CHFA West.  Many will pass by your booth and have conversations with your sales team.  You want to maintain that connection with those retailers long after the show is over.  

CNHR’s post-CHFA West coverage in the March-April issue can help you do that.  

Retailers will be reading CNHR to see the post-show coverage.  Your advertisement helps deliver your sales message to the thousands of retailers who attended CHFA West.  And there are some extras...take advantage of our Trade Talk section with your news.  Get your new products featured in our special “Product Spotlight” feature (free to advertisers!)   

As a bonus, your ad in CNHR will also reach the thousands of retailers across Canada who did not attend the show!  Our studies show more than 10,000 buyers, owners managers and staff read each issue of CNHR.

Our readers are more than your buyers...they are your front-line sales team, influencing and recommending products to their customers.  So be top-of-mind with them.  Get your sales message into CNHR.

Honour Canada’s top natural retailer!

CNHR is creating its “congratulations” page in the next issue to honour the winner of the CHFA Brock Elliott Memorial Award for Excellence in Retailing.  Share your well-wishes with the winner for the entire industry to see.  Send us your logo, plus your 20 words of congratulations.   Book now...as space is limited!    Just $425. 

Product Spotlight - 1/6th page sized expanded product profile: only $499 or FREE with a full or half-page ad

Make a big impression on retailers in the March-April issue with a Product Spotlight product feature. Get your new product into the hands of thousands of retailers. Big colour photo, 40 words of copy and your contact info. This 1/6th page Product Spotlight Show Special is only $499. FREE to all advertisers with a full or half-page ad.

Let us custom-create a quote to suit your budget.  Contact:  katherine@cnhr.ca, or candace@cnhr.ca

 

 

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