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You've no doubt seen the headlines. "Retail sales slumped in December." Sounds pretty grim, doesn't it? Did all those foreboding warnings of supply chain issues, inventory shortages, etcetera actually come true?
Take a look at the chart showing retail sales results by sector for December 2021 versus December 2020.
Pretty interesting chart, isn't it? In fact, overall December's 2021 retail sales were 16.9% better than 2020. What sales slump?! But...now look at the Monthly Retail Sales trend charts on The ROI site. These quickly show how the trailing six month's retail sales compare to the same months the prior year. See? For virtually all sectors, while December 2021 sales were up smartly, November 2021 sales were up even more than December's versus 2020.Hence the headlines, "retail sales are trending down." In other words, it is true. Sometimes up IS down. We know that we cannot change the ways that economists and pundits talk about retail sales results. But we will keep posting these trend charts each month, so that retailers can easily compare their own stores monthly sales trends to their retail sector. Especially in these times, we must do all we can to keep some perspective.
Is 2020 continuing to wear you down? No surprise. And no shame in that! Retailers are among the most optimistic folks we know. But the relentlessness of the disruptions and in some cases tragedies of the three pandemics – the virus, the economic meltdown, and the civil unrest – followed by the wildfires in the West and the hurricanes in the Southeast, now compounded by the uncertainties of national election. Oh, and then there's the impending flu season. And... And... It IS a lot. And it feels as if there is no relief in sight. But maybe there is.
The just-released "2021's Main Street Business Survivor Study" from the Pandenomics series conducted by the PYMNTS.com folks* focuses on the "Main Street Survivors:" those small to medium sized businesses "that have weathered the pandemic's fallout."
Vital lessons. What have these "survivors" done differently than the rest of SMB businesses? Here are the major findings of their study. We think that you'll see many of the survival steps you have taken, or be prompted to adopt some others.
Retailing is so great. Every retailer is an optimist, a people-person, and a bold risk taker. (We know; been there, done that.) Every retailer wants to get their stores re-opened, and their staff people re-employed. Granted, there are many arguments, pro and con, about "Re-Opening the Economy." And in a number of communities in the U.S. and elsewhere, some re-opening of stores and restaurants is occurring.
Just this morning we saw yet another article speculating about the staying power of online shopping, in this instance, grocery shopping.
Of course, it's not just media pundits who are looking for answers to this question about online versus in-store shopping. Retailers are living with this issue, and they have to make decisions.
The savvy retailers know that now is the time to be putting the finishing touches on being ready for – wait for it – December 26!
This unique time period between December 26 and January 10th is a tremendous make-or-break opportunity. Indeed, many retailers find they net more from this time than any earlier stretch of 15 days!
First, the many opportunities to reduce expenses "back to normal." Less advertising cost. Less staff. Fewer hours.
Second, those people using Gift Certificates, making returns or exchanges are potential new customers. Likely, many of them haven't been in your store before. A great opportunity!
And third, the opportunity to clear out seasonal merchandise, generate cash, and move on to the New Year.
You've seen all the headlines. Worldwide inflation. Dire warnings of a coming recession. Big time discounts at retailers due to boatloads of inventory. Amazon doubling down on their Prime Day(s) sales. Shoppers shopping early in anticipation of rising prices. Shaping up to be yet another "unprecedented" Holiday season for retailers, isn't it? And a wonderful opportunity for all merchants! How best to start? Set the boundaries.
Next, establish clear routines for monitoring inventory levels.
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