PERSPECTIVES

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  PPP "loan forgiveness?" Remember, some strings attached

  If 2020 was the year of pandemic disruption and scramble-to-survive mode for retailers, 2021 may be the year of relentless Retail Is Detail reminders.
  
  Many of you may well have benefitted from one or more rounds of PPP loans and their potential "forgiveness." Now comes the reminders that you must seek forgiveness. In writing. From the bank that  loaned you the funds. And there are some time deadlines involved. Yikes.
  
  Oh, and total forgiveness may not be forthcoming. It depends. (See below for these guides* and disclaimers from the SBA.)
  
  Then there are the so-called "bookkeeping details" surrounding all this.

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  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? 
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  The Fatigue of Uncertainty

  Have you noticed? That persisting Plague of Uncertainty that keeps hanging around?

  • The troubling issues in Ukraine and the potential repercussions.
  • Inflation now includes an even greater hike in oil and gasoline prices because of the Ukraine situation.
  • Unresolved supply chain issues, particularly impacting smaller businesses with less clout.
  • Employee unrest, union organizing, the "Great Resignation." 
  • Stock market declines, which seem to foster even more talk of unrest and uncertainty.
  • Not to mention the extended Farewell Tour of Covid and The Variants. 

  And amidst all this relentless uncertainty, you still have a business to run, employees to motivate, customers to satisfy, vendors to deal with, creditors to pay, etc, etc.  
  
  Here are some ideas on how to approach that.

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  Patagonia Brings a New Answer

  In the free enterprise system, owners are free to succeed. And free to fail. 
  
  That's why The Retail Owners Institute has defined the #1 responsibility of the Owner as the survival of the business. 
  
  But then, the owner must define "Why?" Why are we doing this, anyway? Why are we working so hard for this business to survive and thrive?

  • There are many good answers. To be the biggest? The fastest growing? A way of life? Something to pass on to the next generation? To create wealth? To support a cause? 
     
  • It all depends on the owner, and what she or he decides. Then, that answer must be communicated: to staff, customers, family, the community, competitors, everyone.  

  That brings us to an event that captured a great deal of attention in the business world last week. 

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  Time to Choose, Retailers. And Choose You Must!

  As we approach April of 2021, the question for retailers is "Now what?" Having survived 2020, in many cases on guts and guile, we must now focus on how best to survive 2021 and beyond.
  
  As having one foot on the dock and one foot in the boat, the future of retailers in that Red Zone is not a pretty picture. 
  
  Granted, there is much talk about the expectation that "convenience" will become a major factor for shoppers going forward. And we don't disagree. 

  • Throughout 2020, millions of shoppers – including the older Baby Boomers – discovered the benefits of online shopping. Then, as brick-n-mortar retailers scrambled to survive, the increased availability of delivery, curbside pickup, BOPIS (Buy Online, Pickup In Store) and BORIS (Buy Online, Return In Store) has been well received by a broad swath of consumers. 

  Here's the deal: We see that this has brought heightened awareness of two different retail strategies: Convenience Retailing versus Destination Retailing. 

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  Calling All Merchants: Are Higher Margins Available?

  Here's a post-pandemic strategy that should not be missed: higher margins! 
  
  Not the entire store, of course; you must be a merchant here. 
  
  But think about it: many shoppers have increased savings, reduced debt, or gotten their job back. Maybe all three.
  
  And after months of being at home, and spending on home improvement and groceries, many shoppers have pent-up demand to spend on items they have had to postpone, like for themselves. Whether that would be in a restaurant or in a specialty store, shoppers are more willing and able to spend. (And some even feel entitled to spend.)