PERSPECTIVES

From The Co-Founders

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Tips, Tactics & Strategic Insights and Commentary
from The ROI Co-Founders, Pat Johnson and Dick Outcalt
Outcalt & Johnson: Retail Strategists LLC; Retail Turnaround Experts

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Ready to Seize This Opportunity?

Like every natural disaster, whether a massive storm, earthquake, wildfire, we all are victims of COVID-19. 

Not all of us have suffered being infected by the virus. But, essentially everybody has suffered losses. 

  • The loss of milestone celebrations of weddings, graduations, reunions, birthdays; anniversaries;
  • Lost access to theaters, museums, libraries, sporting events;
  • Loss of the sense of community that comes from going to work, or worship services, book clubs, or the local coffee shop; 
  • Loss of income, job losses;
  •  Or, sadly, the loss of loved ones. 

Few have been spared. 

Here's what we see about the so-called "New Normal":

  • It won’t be “normal” for anybody;

  • It will be “new” for everybody

And that means Owners of retail operations have the opportunity to shape their own business for the New Normal! 

Here are some reminders to keep in mind as you map out your store's future.

In retailing, it always starts with the customer. Consumers will be more cautious, discretionary consumer spending will be subdued. 

All age groups have been impacted; no one has been spared.

  • Retirees likely saw their retirement balances drop;
  • Millennials are living through a second economic crisis during their relatively short careers;
  • Generation Z is entering a job market at an unprecedented time.

Discretionary spending, will be diminished. Merchandise mixes must reflect this reality; more basics, never-outs. 

As shoppers become more purposeful, the transaction will be more important. 

  • What constitutes "convenience" will be expanded beyond location.
  • Shoppers' focus will be on the ease and convenience of the transaction (think e-commerce, curbside pickup, curbside returns, personal shoppers, etc)

In this environment, retailers who are whiners will be toast. Count on it! But, those retailers who seize the opportunity to experiment can create a terrific, viable business that could thrive. 

Retailing is coming back. Will you?

Related Articles

  • Have the "Seize The Moment" Quality?

    As you have recognized, our commentary is usually inspired by current events. And that means that our intentions of what we discuss can change any day.  

    For instance, we were expecting to talk about 3 or 4 examples of folks "seizing the moment" that we had seen earlier this week. Great reminder for retailers.

    Then, just this morning, we saw an article about a nationwide Gallup study of what constitutes a "quality job - such as providing fair pay, having predictable schedules, and offering opportunities to grow and advance."

    • "Traditional labor statistics track how many people are employed and what they earn—but they don't capture the aspects of work that drive employee and business success." 

    • The Gallup American Job Quality Study* surveyed more than 18,000 workers across industries, geographies, and job types.

  • COVID-19 thumbs/whichDoor.png

    Enough already with the "Covid Fatigue"

    Have you noticed? "Covid fatigue" has been spreading lately. It seems to be almost as contagious as the virus itself. Ugh!

    And small wonder. Even as parts of the economy strive to re-open, they only remind us of how different everything is.
    • Major League Baseball played in stadiums of cardboard cutouts of fans. The U.S. Open Golf Tournament with no spectators. Professional basketball teams in "the bubble" at Disney World. 
    • And some colleges preparing to resume fall classes have been described as "a cross between a seminary and a minimum-security prison."
    Meanwhile, the U.S. Congress cannot agree on what should be done next. A nasty election campaign season looms. Protests are still happening in many locations. 

    Remember this: all these things that contribute to our Covid fatigue, what we have called the "Pandemic Trifecta of 2020" – the virus, the economic meltdown, the national protests – all of these are uncontrollables. We all are victims of all three pandemics. 

    But, you CAN control what you choose to do with your business going forward. Will you choose Door A, Door B or Door C? 
  • waves.jpg

    Big Waves Incoming! Ready to Take Advantage?

    This Holiday season is bringing three big waves for retailers, in rapid succession. And each one requires a strikingly different management response. 

    Wave #1 - the High Margin Wave - has begun in earnest, and will continue through Christmas Eve.

    Faced with the shipping delays (and surcharges), customers have turned to brick-and-mortar stores. The savvy retailers are ready for them.

  • Thanksgiving Is "Late" This Year

     

    "Christmas will be here before you know it."

    Well, actually, Christmas will be here the same time it always is: December 25. 

    However, what does change are the cues for the shoppers. 

    That is, Thanksgiving falls as late as it can this year, on November 28. That means, for those keeping score at home and for the breathless business pundits, there are only 26 shopping days between Thanksgiving and Christmas. This is six days shorter than a year ago, and the shortest since 2019.

    That's why some retailers, especially those that are publicly traded, are making mighty efforts to lengthen the shopping season. 

    But, is there actual value in trying to prompt shoppers to start their Christmas shopping before they have even handed out Halloween candy? Yes, but...

  • time2.png

    Ready or Not, New Retail Clock Is Here

    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.

  • COVID-19 thumbs/ConsConfidence.png

    Wait! Who knew this good news?

    ICYMI. You know, that's the shorthand for In Case You Missed It. And in fact, we had missed this.

    "Consumer confidence rises for first time this year." 

    As reported by Chain Store Age*, "The Conference Board’s Consumer Confidence Index rose slightly to 107.2 in March, up from 105.7 in February. It was the first time the metric has increased in three months."

    Wow! Is that ever a stray ray of sunshine! We always look to Consumer Confidence levels as a leading indicator for retailers.



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