Tips| Tactics | Insights from The Retail Owners Institute® • RetailOwner.com
Friday, May 26, 2017

From The Co-Founders

Hmm. Are your stores in Red States or Blue States?

Could explain sales trends


A new consumer confidence study (see link below), based on monthly interviews with 9,000 respondents (versus the 500 or so polled in the University of Michigan consumer sentiment study) finds that the the key difference/predictor in people's attitude about the economy (and shopping!) is their political views. 

That's right. What seems to matter more today may not be whether you're in a mall or strip center. When it comes to location, apparently what really matters is, Red State or Blue State? Here's what this study revealed:
  • "According to Democrats, the economy is in serious trouble; according to Republicans, the future is looking rosy." 
     
  • "These opinions all have real consequences. Our financial expectations affect how we save and spend, and all these individual choices, in turn, affect the trajectory of the economy at large." 
     
  • "On a scale of 0 to 100, where 0 represents complete pessimism and 100 represents complete optimism, left-leaning Americans rate the economy in the low 40s on average, while right-leaning Americans rate it in the mid-70s."
And then this finding, which gets right to the impact on retail sales:
  • "Right now, for instance, 46 percent of right-leaning Americans say it’s a good time to make major household purchasesbut only 22 percent of left-leaning Americans agree."
Ahh yes. We long have held that the true leading indicator of retail sales is consumer confidence.
  • And in today's world, according to this study, more than ever before, consumer confidence – their "state of mind" – is closely linked to political allegiances. (A "Red State of Mind?" Or "Blue State of Mind?")
This could explain a lot about sales trends, whether you have 1 store or 100 stores.
  1. Consider where your stores are located: Red States or Counties? Blue States or Counties? 
     
  2. Then, take another look at your sales trends. (With multiple stores, just sort them into two groups – Red or Blue – and total the performance for each of those groups.)
Best of all, this new perspective for you savvy merchants may enable you to sharpen your competitive edge even more. Knowledge is power; more knowledge about your customers is the most powerful of all.
 

** Vox/SurveyMonkey Economic Confidence Index

from The ROI's

Library for Owners

GMROI – #1 Measure of Inventory Productivity

Retailing…it’s like a huge maze. As an independent retailer, you have to get through all kinds of obstacles. Competition is incredibly tough.Credit is tight. And customers are fickle.

Getting through this maze - working smarter, not just harder - requires some key financial assessment tools; tools that provide quick feedback. You need key information fast, in retail time.


One of the best tools for measuring and managing the productivity of your inventory investment is GMROI - Gross Margin Return on Inventory Investment.

It's fast and easy to calculate. Best of all, it provides powerful insights specifically for retailers. 

Go here is The ROI's Library for Owners. See for yourself why The ROI calls GMROI "the #1 measure of inventory productivity!" 

Available Now: Webinar of the WEEK

 

Who's Doing the OWNER'S Job?
Anybody??

Friday May 26 – Thursday June 1

ALL DAY, ALL WEEK ACCESS • FREE

"Perhaps the most over-looked and under-performed job in retailing: the Owner's Job!"
--- The ROI

In a retail business, being the Owner is a job all its own.

While the Owner may be the same person as “the Boss”, or the President, the Owner’s Job has responsibilities of its own, separate and distinct from these other jobs. That is why The ROI calls it “the most over-looked and under-performed job in retailing!”
  • An innovative and thought-provoking concept? Indeed! But it has helped a lot of retailers clarify and prioritize - and sleep better at night! 
If you are an Owner, or aspire to be an Owner, be sure to take advantage of this lively TOPICAL TUESDAYS Webinar of the Week session.
 

Retail Business Insights

Price versus Value
It's pretty simple, really.
  • Price is what the customer pays.
  • Value is what she receives.
Go here. See what The ROI is tweeting about.
"There is no better or faster way for retailers – on their own – to guide and monitor inventory levels!"
Why Not Share
The ROI NEWS?!

 
Forward
Share
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Tweet

What is The Retail Owners Institute?
Empowering!


The ROI, as it is known, is now the foremost self-help financial management resource for retailers and store owners.

Thousands of retailers come to The ROI each month to take advantage of The ROI's practical how-to info and unique, easy-to-use tools.

Use The ROI for your own stores. Make better business decisions, faster.

See in advance, for yourself, on your own: "What  would happen if I...?" 
Since 1999, enabling retailers worldwide to
"Turn on Your Financial Headlights!"

 
6 Key Ratios for Retailers
Five-Year Trend Charts
55 Retail/Restaurant Segments
Free KEY RATIOS Calculator 
Organizations:
Helping your retailers/dealers has never been more affordable.

click here for details

Tips| Tactics | Insights from The Retail Owners Institute® • www.RetailOwner.com
Friday, May 19, 2017

From The Co-Founders

"Tomorrow is here..."

It was 20 years ago this week that Amazon went public. Twenty years. And now they are valued at twice the value of Walmart.

As an independent retailer, this is certainly not news to you. The domination of retail first by Walmart and then Amazon is all-too-well known.

Look, we are not fond of what Amazon has done to independent retailers. But, we were struck by a comment of Jeff Bezos in a 2013 interview with Charlie Rose which we had missed earlier. Bezos asserted, "Amazon is not happening to bookselling. The future is happening to bookselling."

In fact, as you know, the future is ALWAYS "happening" to retailing!

Meanwhile, consider how Amazon is continuing to adapt to keep the future from happening to them. They are growing and evolving in wholly new directions – Amazon Web Services, supply chain logistics, air freight, drones, etc, etc. 

Hmm. Might Amazon be sensing that there is a limit to what people will buy online? (They are opening their own brick-n-mortar stores, after all.) Perhaps their "retail growth curve" is starting to flatten out, causing them to turn elsewhere for growth.

Sounds like an opportunity for smart retailers! Remember this: your customers (and others like them) are still there. They want to buy things, especially with personal attention from knowledgeable staff. And they want that in-store experience.

But...they will not give up the information and convenience that the web provides today. They want it all! (Wouldn't you?!)

That is the future, whether or not you are ready. "Tomorrow is here before I'm ready to give up today."
The Monthly Retail Sales Trend Charts published by The ROI each month – comparing retail sales to the same month Last Year, not just the previous month – now show the latest results from the government. 

As always, we encourage you to check out the trends for your own sector. Offers great perspective for comparing your own store's results.

We also hope that you would take a moment to look at the trends for the trailing 6 months for ALL of the retail and restaurant sectors. (It's easy; just go here on The ROI site, then click on that sector's name in the left hand column.)

We think you, like us, will find that very revealing. 
  • For instance, do the nice upticks in so many sectors this month speak to a recovering economy? Stronger consumer confidence? Or, that everybody is going against last year's soft numbers?
Could make for some great conversations with your fellow retailers, don't you think? 

Retail Sales | ProfitsRetail Sales|Profits at The Retail Owners Institute

Did you know? At The Retail Owners Institute, there is an entire section devoted to one of the areas many retailers find most compelling: Sales & Profits.

Even better, The ROI doesn't just talk about this stuff; it provides practical tools for busy retailers to readily use in your own business.

Want some examples? Take a look at a couple very short videos (not even 5 minutes!) excerpted from TOPICAL TUESDAYS sessions. 


You will quickly pick up some great tips for how and when to use  these tools. Plus, you can download your own master copy of The ROI's Retail Trend Tracker. 

There is much more available in this Retail Sales | Profits section of The ROI. 
  • All for projecting, looking ahead, comparing your "What if...?" choices. 
  • Helping retailers be more strategic in your decision-making.
  • Or, as some folks call it, "having a method to your madness!" 
Take advantage for yourself. Use The ROI, and "Turn on your financial headlights!"
 

Available Now: Webinar of the WEEK

 

"Say there. Have a minute?"

Who goes into retailing to be a bookkeeper?

Friday May 19 – Thursday May 25

ALL DAY, ALL WEEK ACCESS • FREE

Admit it. Most retailers are "people people". You love the merchandise you are selling, or love the people who want to buy that merchandise.

But all too often, once your stores are open, retailers can find themselves "held hostage" by the numbers, or intimidated by the "financial experts." 

What's a retailer to do?
  • Take one minute to be empowered!
This intriguing TOPICAL TUESDAYS Webinar of the Week by Pat Johnson and Dick Outcalt, Co-Founders of The ROI, shows some practical and free techniques for retailers.  

See how to know more about your business in less time than ever before.

Plus, see how these same tools can be used to evaluate any size retail business - still in just one minute!  (Yep, the same rules apply to everybody!) You'll see the case study about J.C.Penney that Pat & Dick presented at the National Retail Federation's Main Street Retailing Forum in Washington, DC.
 
You DO have one minute to gain control of your financial future, right?! This is very empowering for owners. Don't miss it!

Go here for FREE access 
This week only Friday May 19 – Thursday, May 25

Retail Business Insights

Controlling Inventory

"No retailer ever went into bankruptcy because their turns were too high."

---Michael Gould, Chairman, Bloomingdale's
Go here. See what The ROI is tweeting about.
"There is no better or faster way for retailers – on their own – to guide and monitor inventory levels!"
Why Not Share
The ROI NEWS?!

 
Forward
Share
Share
Tweet

What is The Retail Owners Institute?
Empowering!


The ROI, as it is known, is now the foremost self-help financial management resource for retailers and store owners.

Thousands of retailers come to The ROI each month to take advantage of The ROI's practical how-to info and unique, easy-to-use tools.

Use The ROI for your own stores. Make better business decisions, faster.

See in advance, for yourself, on your own: "What  would happen if I...?" 
Since 1999, enabling retailers worldwide to
"Turn on Your Financial Headlights!"

 
6 Key Ratios for Retailers
Five-Year Trend Charts
55 Retail/Restaurant Segments
Free KEY RATIOS Calculator 
Organizations:
Helping your retailers/dealers has never been more affordable.

click here for details