PERSPECTIVES

Isn't it great? Headlines and the media world seem to be in unison; the dastardly COVID pandemic is being arrested. And, if we can believe the pundits, pent-up shoppers are about to buy all sorts of products and services with abandon.

But, will they?

Given this exuberance, many retailers could be building up excess inventory. Retailers once again need to be true merchants. That is, the #1 responsibility of retail senior managements must always be to control inventory. (It's the only thing that makes money, but it soaks up cash.)

Boy, are we ever impressed.

We've known for years that those who are following and/or involved with The Retail Owners Institute^® are resolute, hungry, and determined. But wow! The challenges of the last year have brought out the very best in many of you.

We've heard back some of the most resourceful survival stores that we've ever heard. Here are just a few examples:

Here we are, in the first week of December, in this tumultuous pandemic year of 2020.

Maybe more than ever, you need to have a grip on your cash flow! What will you cash flow look like during December, January and February?

Since you must be able to make informed decisions about your business, every day, an up-to-date cash flow calculation is essential. Remember, profits are interesting, but it's cash flow that's significant!

Cash flow doesn't have to be fancy. In fact, what most owners need is just to have the basics on the back of an envelope. The savvy ones always have that with them.

As the global efforts to "flatten the curve" of the coronavirus pandemic continue, there is another curve that is being flattened. That would be the seasonality of retail sales. 

And this may prove to be what really defines the New Normal for retailers. 

The customary peaks of retail spending have been flattened.

There are three "pandemics" assailing us at the moment: the coronavirus; the economic collapse; the protests of racial injustice. The three months plus of stay at home restrictions and the shutdowns, and the confluence of these three pandemics has been a heavy burden. And it shows no signs of going away anytime soon.

As the coronavirus continues to spread and surge (Apple re-closing 11 stores they had recently re-opened is a sobering reminder), the uncertainty and anxiety is only being prolonged.
 

We believe there are not one, but three(!) pandemics occurring simultaneously right now. Of course, the COVID-19 virus elevated the word "pandemic" to a status that identifies even a generation of babies. 

But the other two pandemics are equally paralyzing: the nationwide (even worldwide) protests of racial injustice, and the severe unemployment from the economic collapse. 

Indeed, three concurrent, worldwide sinkholes. We call it the "pandemic trifecta of 2020."

So, what's an intelligent retailer to think now?!

Here's one idea that we believe can help you have more confidence in your immediate decisions. Think beyond this week and this month. ​

YOU are the leader we need now!

Most of the people who receive our weekly newsletter from The Retail Owners Institute^® are either owners of stores (duh...) or work with retail owners, not only in America but around the world.

When you think about it, owners and senior management of retail businesses are looked upon as leaders everyday, by employees, by suppliers, by customers, by their families and often by the media. You are community builders. 

Amidst this pandemic, your leadership is more vital than ever.