PERSPECTIVES

 

Have you caught World Cup fever? It's certainly on the rise near us, and reminded us of this explanation of the midfielder's position on a soccer team: 

"The midfielder is the position where you are always trying to regain position."

Sounds a lot like owning a retail business, doesn't it? Especially in today's business environment. Consider this*:

• The National Federation of Independent Business reported in May its lowest measure of economic expectations since Mr. Trump was elected to his second term.

• The Bank of America Institute reported that small-business profitability in April grew at its slowest pace in two years.

• Businesses with fewer than 10 workers have broadly been shedding employees for much of the past five years, according to data from QuickBooks, the accounting software company.

• Even as large corporations are posting solid earnings and the stock market is booming, small-business sentiment has plummeted in recent months. Some owners – maybe you? – report they have had to use their personal savings to pay workers because the company’s cash flow was so tight.

Pretty grim, isn't it?

We saw this wonderful flowchart for a maintenance project. A sure-fire guide to trouble-shooting a problem. Just three Yes or No questions. 

First question: "Does it move?" That's easy. Answer Yes or No.

The next question is key (and spoken like a true professional): "Should it?" Again, answer either Yes or No.

That incisive analysis then leads us to the appropriate choice among three potential remedies:

There are many ways to succeed in retailing, many ways to assert your competitive edge, whether location, pricing, merchandise selection, knowledgeable staff, etc. 

But there is only one way that retail businesses fail: they fail financially. So the key to success? Have a competitive edge, and take charge of the financial demands of the business. 

Where Do I Start?

As a retailer, navigating your financials can feel overwhelming. That’s why we’ve created a suite of online calculators designed specifically for independent retailers like you. No spreadsheets, no guesswork—just fast, clear insights for your next business decision.

Here’s how and when to use five of our powerful tools:

The fanfare surrounding Artificial Intelligence can be reminiscent of breathless advertisements for do-everything kitchen gadgets: "But wait! There's more!!"

Amidst all that, we were intrigued to read about Scott Tannen*, the CEO and co-founder of the luxury bedding and home brand Boll & Branch. The company launched in 2014 as an online-only direct-to-consumer brand. 

• "When we first started the business, I don't think we ever envisioned having any physical stores whatsoever," said Tannen. Then, in 2018, they opened their first permanent store. "We saw this massive performance change in the business, because customers could touch and feel the products," Tannen discovered. 

So Boll & Branch added more stores, and recently has turbo-charged their brick-and-mortar strategy. In just the past year, they have grown from 8 stores to 15. 

But here’s what captivated us: how they decide on store locations.

They use Zillow.

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.

"Retailers are sitting on a pile of goods. Now the question is, will the U.S. holiday shopper bite?" reported Jennifer Williams in the Wall Street Journal. 

• "The risk heading into the crucial holiday shopping season is that inflation-wary shoppers won't spend as much or will buy fewer items because prices are higher," she noted.

Similarly, Michael Brandt of Inovium expects "weakening growth in discretionary retail (electronics, fashion, home furnishings.)"

• "Consumers may pull back on big-ticket items, delay refresh cycles, or trade down in brands."

When you’re running a store, your days are already packed with ringing sales, juggling vendors, calming staff, and keeping the lights on. 

That’s why so many independent retailers have been slow to jump on past waves of technology — e-commerce platforms, fancy POS systems, or social media dashboards. The tools were costly, fiddly, and frankly, not built for stores like yours.

But here comes AI. Might this wave be different?

• It’s accessible. No IT department needed; a curious owner can try it on their laptop tonight.

• It’s fast. From drafting an email to analyzing last month’s numbers, AI can take the drudgery out of tasks that bog you down.

• It’s (relatively) cheap. Many AI tools cost less per month than a case of shopping bags.

What Is “Value” For Your Customers? Really?!