Before the Iron Law of Retail comes into play, there is a primal consideration, one of identity (or what some call “branding”). The Iron Law of retailing — compelling product, attractively merchandised in well-located, efficient stores — only comes into play in the context of a clear identity.
Identity is not the same as branding. Branding is the consistent expression of your identity across all customer touchpoints. Identity is not Corporate Identity (also called Corporate Image) — these are again an expression of identity in a consistent graphic form.
Consider your business as an individual about to engage in conversation with your customers. Who are you? What are your values? What can you be counted on to always do? What can you be counted on to never do? What is your personality? What are your commitments? What do you create?
Once you have answers to these questions, you are ready to create compelling product, merchandise it in a style consistent with your values, place it in locations consistent with your values and efficiently manage your business in a manner consistent with your personality. These activities form a “conversation” with your customers, and this conversation creates impressions with these customers that, over time, accrete to form your brand.