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On April 5, the National Retail Federation, “the world’s largest retail trade association,” felt compelled to explain “Five Things To Know About Tariffs.”
Among the first things they explain is who actually pays the tariff.
“Tariffs are a tax on goods imported into the United States and are paid for by the U.S. importer.”
“When tariffs are enacted, retailers are forced to choose between raising their prices or relying on already slim profit margins to absorb the increased cost of inventory.”
“Many small retailers are indirect importers and rely on other companies to import the products that they sell. These indirect importers [that is, small retailers] have even less ability to shift their supply chains to mitigate tariff costs.”
This sums up pretty well the challenges retailers are living with. But...
At a time when consumers already are holding back on spending, or shifting to lower-priced alternatives, the on-again-off-again tariffs are wreaking havoc for retailers.
Wait. There’s more! “Consumer Sentiment Tanks in April on Recession Fears” headlines an April 11 article reported by Harriet Torry in The Wall Street Journal.
“A closely watched index of consumer sentiment nosedived to 50.8 in April from 57 last month, continuing a recent downward trend stoked by concerns about trade, jobs and inflation.”
“The preliminary reading from a survey by the University of Michigan is one of the weakest readings of the past decade.”
Consumer confidence is a leading indicator for retailers about the financial prospects going forward. Starting to seem pretty grim, isn’t it?
Now is definitely the time to move beyond hand wringing. It’s time to craft your financial survival plan! And The ROI has the tools and resources you need.
Some might call it “financial literacy.” We call it a retailer’s bias for action and survival! The key: start now. Don’t be distracted by all the outside turbulence. Focus on those things in your business that you can control. “Knowledge Is Power!”
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Periodically it’s more essential than normal for business owners to interrupt their routine and get a good look at their upcoming financial choices.
And this is one of those times!
Many very savvy people are quite concerned about the economy and consumer behavior right now.
High debt maturing in both the real estate and the public sectors.
The multiple international upheavals that continue to grow.
And, certainly, the impending changes at the Presidential and Congressional level in the U.S
These issues are joined by others to make NOW a very important time for business owners to look ahead financially…maybe weekly for a while.
No, Not About People This Time While we typically think of people as recipients of recognition – and we trust you already are doing that, right? – this is a different challenge. Ready? Here we go! Of your merchandise, which products are Award Winners?!
Maybe you are aware of this. We sure are! Way too many retailers are just fumbling along, paying everybody else but not themselves. Worse yet, way too many retailers are failing, going bankrupt, even in these "good" times for the economy.
And when a retail business fails, it affects a host of people and entities. Not only do employees lose their jobs, and landlords lose a tenant, and suppliers lose a customer, and a community loses a retailer...the owner(s) oftentimes lose their house, car, savings, everything.
Failure is sickening.
According to the calendar, as of March 21, it officially is springtime. No matter what the weather is doing. Well, it's time to bring the calendar to real life! Spring is really a state of mind! The dark winter has passed. Even the rain is warmer in the spring. And new growth is beginning to sprout; leaves are coming out. It's a wonderful, fresh outlook. And that of course means it is a wonderful opportunity for retailers to refresh and reenergize their stores. No matter what merchandise you sell - whether it's tires, apparel, books, housewares, office supplies, whatever - every retailer is in the fashion business. And that means that your customers are wanting what is new and fresh.You know; "in fashion."
The constant challenge for retailers is to anticipate what their customers really want. And this year, there seem to be plenty of choices available.
It is all part of the on-going challenge of retail; the art and craft of being a merchant. Then there are the customers who are reacting to the constant drumbeat of news about supply chain issues, merchandise shortages, and looming price increases by starting their shopping early.
Adding to this stampede, some major chains were launching their Black Friday specials before Halloween!
Incredible value! 👀
Start NOW!