PROFILE

W. Frank Dell II

President, Dellmart & Company

W. Frank Dell II is President and CEO of DELLMART & Company, Inc. He has been a management consultant for over 20 years and has more than 30 years of consulting and corporate experience. Prior to founding DELLMART, Mr. Dell was Vice President directing Cresap’s Food and Consumer Products Practice and Senior Partner and Director of Case and Company directing its Food and Distribution Practice.

Mr. Dell has performed a wide range of assignments in the areas of strategic planning, marketing, distribution, retailing, operations, pricing, organization, productivity improvement, data processing and research. Clients have included manufacturers, retailers, wholesalers, distributors and trade associations in the United States, Canada, Europe, Russia, Middle East and Africa.

A pioneer in the concept and application of both Direct Product Profit (DPP) and Activity Based Costing (ABC), Mr. Dell has directed numerous major studies modeling the costs of manufacturing, retail food, chain drug and food service industries. He served as an advisor to the Food Marketing Institute, National Mass Retailing Institute, National Candy Wholesaler Association Private Label Manufacturers Association and Comite International des Entreprises A Succursales (CIES).

Mr. Dell was the creator of BICEPS, a state-of-the-art buying and inventory control system; focus marketing and category management organization concepts; customer synchronization and comprehensive customer service operating concepts. His work on Total Company Productivity, Total System Profitability, Supply Chain Management, Vendor Sourcing, Pricing and Total Labor Control has been well received.

Before entering consulting Mr. Dell was Manager of Forecasting & Administration for the Colgate-Palmolive Company. His earlier corporate experience includes work for American Can and General Foods.

Mr. Dell received a B.S. in management from Northeastern University and an M.B.A. in marketing from Iona College. He is a frequent speaker for numerous organizations, including Food Marketing Institute, Food Distributors International and National Grocers Association. The Foodservice Distributor, Progressive Grocer, IGA, IdeaBeat and Grocery Marketing publish his articles. Mr. Dell is a member of Strategic Leadership Forum, Institute of Management Consultants, Council of Logistics Management, Warehousing Education and Research Council, Comite International des Entreprises A Succursales and Food Distribution Research Society. He is listed in Who’s Who and is a Certified Management Consultant.

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  • Posted on: 11/15/2017

    The RetailWire Christmas Commercial Challenge: Macy’s vs. Nordstrom

    Macy’s was a slow build and only in the last frame did you know who sponsored the commercial. Yes, a commercial can have institutional or seasonal image building, but in today’s sound bite world you must continually reinforce. I like the Nordstrom up tempo message. It has a from our house to your house theme. Look for people to be humming the music as they shop Nordstrom.
  • Posted on: 11/13/2017

    Retailers need supply chain urgency – now

    Retailers view investing in anything but stores is a waste of time and money. This is the same group that watched Walmart with its mechanized logistic system lower cost and take sales away. Today, retailers must view logistics as a new larger store. Those that do not are unlikely to be around long term -- just ask Sears about their future.Retailers must strategically think and plan for the future, not yesterday. What we learned with Direct Product Profit was that inventory cost money on the investment and cost of space to hold it. Retailers must stop forecasting and buy weekly for demand driven replenishment, real time. The future logistic system must minimize product touches, as shipping to the store, pick, pack and ship to consumer ensures no profit. Pick in store with customer pickup is profitable.Every retailer should start with a blank page and define the future logistic system. Then start working towards achievement.
  • Posted on: 11/08/2017

    As Amazon looms, CVS rolls out next-day Rx deliveries nationwide

    Some years ago every pharmacy offered home delivery -- at that time the pharmacy accounting for the majority of retail space. Medicine can be broken down as either acute or maintenance. Acute is something you need right now, be it a pain killer or to start the curing process. Maintenance is what a person takes every day. Acute requires immediate delivery while maintenance can be next-day.Just like grocery home delivery, unless you have minimum logistic costs, delivery can exceed gross margin. The negative for home delivery is the lost sales on impulse purchases or regular purchases (toothpaste, razor blades) when picking up with prescriptions. Additionally, think about bandages, braces, etc. that may be required.If it were truly important, pharmacy would never have stopped delivery. Some market segments need one-day delivery, others don’t care. The Amazon fear is overblown. Amazon has only truly succeeded in digital books. Every retailer can do home delivery, the question is should they?
  • Posted on: 11/07/2017

    Why is it so hard to get retail associates to upsell?

    A number of factors could increase upselling. Hire outgoing associates for the job, not to put in hours. Educate them on the products and features. One problem today is many customers do research online before coming into the store. Some of this research is biased or wrong. Unless an associate knows what they are talking about you cannot really help the customer.Make upselling part of the job and success measurement. Speak the language. When in a foreign speaking area speak the local language and English. For the rest of the country speak English. Teach employees to look the customer in the eye and ask if they can be of assistance. Only by changing the job and expectation will there be upselling.
  • Posted on: 11/07/2017

    Amazon scales back Fresh deliveries

    Amazon is facing a number of problems. No one is making money on home delivery when you apply honest accounting. Whole Foods (Whole Paycheck) produce is higher priced and organics have lower eye appeal. Whole Foods has a multiyear agreement with Instacart which is direct competition. Whole Foods does not have the physical capability to support a significant expansion. Finally, what is the strategy? Home delivery of fresh product (meat, produce, dairy) or all food products?The likely answer is that Amazon realized the required investment is greater than they anticipated.
  • Posted on: 10/18/2017

    Should the holiday selling season be retired?

    All the comments are somewhat correct. First, Black Friday is a non-food retail industry idea indicating the point when the retailer stops operating in the red. This is not a consumer event and most have no idea what you are talking about when you say Black Friday. So January 2 through Thanksgiving they lose money and for the next five weeks make up for the loss and generate a profit. Many retailers went out of business following this business model. All you needed was a bad holiday to kill a company. Sam Walton best understood this was a failing idea with a model that made money every day.Retailers should get off the Black Friday, internal-looking perspective and into the holiday by assisting consumers finding the right gift. Stop decorating the stores in August. After Halloween is fine. The online shoppers will continue to grow, but expect more Christmas club-type shoppers to balance the household cash flow.
  • Posted on: 09/11/2017

    Will lower everyday prices boost Target’s traffic and sales?

    Every time is see one of these “we are lowering our prices on thousands of items,” I get the message we have been ripping you off for years. This does not build trust with the consumer it reinforces miss-trust. It is wholesale notification of overpricing. This is even more damaging if the retailer has been pushing EDLP for years. A much smarter way if to promote results for consumer. Make the change and then build on dollars going forward or basket cost verse competition. For Target their image is chic at great prices. Build on the chic and selection differences coupled with a superior shopping experience oh and by the way, we are very competitive on prices.
  • Posted on: 06/01/2017

    Are off-pricers immune to apparel’s challenges?

    Apparel is too broad a term. Basic apparel is sold every day regardless of season. This is merchandise that will move to online shopping. The next segment is seasonal. It is difficult to sell a parka in the summer time. These products don’t change as much year to year so stores can box them for now and re-present next year. Then you have core items which rely a little on season and a little on fashion trends. Color is less critical but functionality is more important. For the mass market the basic and core options will move to online shopping. Seasonal will also, but only during specific seasons. The last segment is fashion. This segment is geared towards a much smaller market due to the price point being higher. If you don’t sell fashion during its season you must sell to an off-price retailer to move the merchandise.Off-price is in a period of deal addiction. Some industries get so addicted to price reduction that no one will buy at the regular or full price. The discount price becomes the market price. As this happens the off-price retailers become less and less different, which is what is happening. Furthermore the core and fashion retailers have declined which has reduced the supply somewhat.What many miss is that the off-price retailers have product manufactured just for them. Think of the second-tier products sold in many close-out stores. Thus the supply will be there. The issue is personal fit at retail vs. with online sales.
  • Posted on: 05/25/2017

    Are some retailer CEOs too old to learn new tricks?

    What happens at the top is pure human nature. One gets to the top position by performing. In many cases, senior managers are under short-term pressure, so they repeat the successful process that got them to the top.I cannot tell you how many senior executives think they know everything, based on them getting the top position. Since they know everything, the mind is not open to new ideas.I have observed two approaches that have helped companies' long term. First, allocate a budget for failure. Put some money and time into ideas that could have great payoff. If it fails, thank the people and go to your next great idea. Make failure not a career ending event, but learn from the post mortem. Second, look outside your company. Answer the questions: What company is growing faster than you and why? How is your industry changing? How are your customers changing? If you have not been following Amazon for at least 5 years, you simply do know what is going on.Yes, too often senior management is living off the past and company results show it.
  • Posted on: 05/22/2017

    Will pop-up only malls catch on?

    Seasonal pop-up stands have been around for years, mostly for Christmas. With all the store closings, pop-up stands could fill some of the space. The issue is, most are seasonal and are linked with wide swings of seasonal sales. On the plus side, constantly changing stands could create the treasure hunt effect. The down side is, unless they have an online presence, consumers are unlikely to shop. Where do you go with defective products for repair or return? Most pop-up stands employ aggressive sales associates, so many have a bad image. But as a field test for even established retailers, there may be some real value toward further understanding the customer.
  • Posted on: 04/24/2017

    Should Bloomingdale’s sales associates receive commissions for online sales?

    Retailers need to stop thinking there are two paths to the consumer. The consumer today does not shop either store or online, they shop both. When the store is out-of-stock, consumers go online to buy the item. When a consumer sees an item in the store they may research it at home and buy online. Repeat purchase of a consumable item is easy to procure online. The store associates are the only human interfacing with your customer and they should receive some compensation no matter how the consumer buys. Understanding that online orders can be less profitable than store purchase even with the difference in sales tax, retailers need to re-organize with a focus on customer satisfaction.
  • Posted on: 04/24/2017

    What customer service lessons can be learned from United Airlines?

    Retailers have worked for years to eliminate the interface between associates and customers. Remember when the checker knew your name? It started with self-service and continues with self-checkout. Amazon is testing a store where only your smartphone interacts with the store. Some in the industry think that if a customer has no interaction with associates nothing can go wrong. I offer Publix and Trader Joe's as the wining model.In my 30 years of heavy flying I would try United Airlines once a year. Only a few times did they measure up to making them work booking again. A company getting so large with poor customer service can only be achieved by customers only flying once a year and I assume this is the way it is with that airline.The lesson for retail is to be proactive, educate and train associates. If United had never allowed the passenger to board the plane the outcome would have been different. United knew they required four seats for crew members, so they should have blocked those out first. Reactive polices rarely win.
  • Posted on: 04/03/2017

    Should retailers take a public stance on social issues?

    Companies can be charitable without being stupid. First, a company’s objective should be to be profitable and be in business tomorrow. Giving money to a charity is being a good citizen, but who needs to know? Every time a company gets outside their business world there is backlash from some customers, people, organizations and/or employees. Rarely does every employee agree with every other employee. Some employee will think, if they did not give that money away I could get a raise or bonus.No matter what side a company takes on any social issue or with any organization there are others who disagree. Just think of the number of veterans’ organization, giving to one makes the other upset. Why go into battle when you know you will lose?
  • Posted on: 03/29/2017

    Sam’s says it’s scoring with club pickup

    Sam’s Club Pickup is just what the business customer wants. The owner can order and pay online and send an associate to pick up. Most business customer are not on treasure hunt shopping trips. This saves the business customer time. Sam's doesn't have to train an employee to walk the store. Merchandise is available any time of the work day, reducing their business inventory.
  • Posted on: 03/28/2017

    Do retailers need middle men to match them up with tech startups?

    If you look at the history of technology and retail you will find most mainstream software did not work for retail. Item counts, transaction counts, random weight, etc. were far greater than most software could handle. This created software vendors only working with retail customers. The demise of many retailers has resulted in a reduction of potential clients for these vendors. Much of the new technology being developed will never see the light of day. It looks good in theory but does not work, is too costly or the technology has not caught up with the concept. The hard part is looking at a new concept and determining if it will work in retail. This takes someone with real experience and vision. Retailers must monitor development so it is just a question of how.

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