"Aha!" insights from consumer reports | GMROI gets through the retail maze | Where Owners get peace of mind | Three-Step Recipe for Reducing Uncertainty
Monday, October 3, 2022

From The Co-Founders

Patricia M. Johnson & Richard F. Outcalt
Outcalt & Johnson: Retail Strategists, LLC  •  Retail Turnaround Experts

What to Expect This Holiday Season...and from Whom? 

"Consumer confidence rises to five month high."


That headline from Chain Store Age* brings smiles to retailers.

Consumer confidence is a key indicator of retail sales, and this increasing confidence as we head into the holiday season is very welcome indeed. 
  • Concerns about inflation dissipated further in September—prompted largely by declining prices at the gas pump—and are now at their lowest level since the start of the year,” according to Lynn Franco, senior director of economic indicators at The Conference Board.
     
  • "Looking ahead, the improvement in confidence may bode well for consumer spending in the final months of 2022," added Franco.
But of course, there is no one-size-fits-all upside here. 


More Spending on Necessities

  • "According to PwC’s Global Consumer Insights survey, overall consumers are still spending, but what they’re spending on has changed — less discretionary spending and more spending on necessities such as food and fuel." **
     
  • As consumers realize “preparing a holiday meal for friends and family is going to be more expensive this year so they know they’re going to have to spend on that and they’re going to cut back on maybe gifts and some travel," observes Kelly Pedersen, partner and U.S. retail leader for PwC.
Good reminders for all retailers as you consider your promotional messages and in-store displays. How best to showcase the yes-this-is-a-gift qualities of your merchandise?


WHO Will Be Spending? It's a Generational Thing

But what really caught our attention in the PwC survey was this insight regarding WHO is most likely to be spending. “There was a big difference between generational spending levels,” Pedersen says. 
  • “Overall holiday spending for millennials was predicted to be up 11%. It’s a very significant increase. Baby Boomers? Down 11%. Gen Xers are about flat to previous years."
Yes, that's quite a swing!
  • Millennial spending UP 11%
  • Baby Boomer spending DOWN 11%
Pedersen explained:
  • Millennials have been the highest beneficiaries of changing jobs, getting significantly higher pay at new companies — which seems to have translated into higher spending.   
     
  • "Meanwhile, Baby Boomers are scaling back and spending more on health care and saving for retirement," he added.
By all means, be encouraged by the rising consumer confidence numbers. But be very savvy about your own holiday sales projections. Be sure they reflect the demographics of your customer base. 

What a good reminder for all retailers! 

Even more revealing than what is selling is knowing WHO is buying! 

---
* "Consumer confidence rises to five month high," Marianne Wilson, Editor-in-Chief, CSA, Chain Store Age, September 30, 2022 

** "Examining the state of retail heading into the holiday season," Retail Gets Real podcast episode 285, September 28, 2022. 
 
 
Tips • Tactics • Strategic Insights • Commentary

Each week's From The Co-Founders commentary is posted on The ROI site.
  • The collection has been growing for a couple years. These short but pithy musings are all very quick reads. You know, retailer-friendly!
  • Available online, 24/7, free for all. And more added each week. 
 

Getting Through the Retail Maze with GMROI


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.
     
  • It is dynamic (some call it the "earn 'n turn" measure.)
     
  • Best of all, it provides powerful insights specifically for retailers.
No wonder The ROI calls GMROI "the #1 measure of inventory productivity."

Ready to put this powerful tool to work for your business? Of course you are!

Just go here in The ROI's Library for Owners to find out more. FREE!
 
The Power of GMROI
 
The Retail OWNERS Center

Decisions. Judgment Calls. Survival.


As the OWNER, you are responsible for the survival of your business.

This means you are faced with all kinds of decisions and judgment calls. Each of which has its own subset of nagging questions. For example:
  • How could we, how should we grow? Bigger? Or better?
     
  • How do I grow my people? (That is, how do I get more time for myself?!)
     
  • About paying for it all: In today's environment, how do we deal with lenders, landlords, vendors?
     
  • Ahh yes; controlling the basics: Inventory. Profits. And...where's the cash?!
     
  • Oops, crisis looming! Now what?!
     
  • Time to be moving on? But...how? 
Where can retailers turn when faced with these kinds of decisions? 

The specialized, one-of-a-kind OWNERS Center at The ROI.
  • Packed with self-help tools and resources.
     
  • Online, on-demand, whenever you need some new perspective.
See for yourself. Go to the OWNERS CENTER now. 
 
Look Around the OWNERS Center 👀
 

How to Minimize Uncertainty

Three-Step Recipe to More Confident Decision-Making 


Are you an Owner? Or aspire to be an Owner? 

Be prepared; there will be many decisions ahead! 

The challenge: How to make those choices decisively, with confidence? After all, it's your money that's at stake here.
  • Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute®, have identified three basic steps to allow retailers to make informed and strategic business decisions.
    And they are pleased to share “the secret recipe” with you.
     
  • Plus, you'll see how the "Retailer's Best Friend" can be your secret weapon for coping with 2022 and beyond. 
In this TOPICAL TUESDAYS Webinar of the Week, Pat and Dick show how every retailer can be informed and strategic as you deal with crucial financial decisions about the business. (And enjoy a better night's sleep too!)

Be sure to take advantage of this lively, provocative and empowering how-to webinar, available only from The ROI. Free!
 
FREE Access • Webinar of the Week
 
 
 
 
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