Tips| Tactics | Insights from The Retail Owners Institute® • www.RetailOwner.com
Friday, April 21, 2017

From The Co-Founders

Who Really Has "First Dibs" on Your Customers' Wallet?

Quick: Who are your major competitors? Amazon? Target? Wal-Mart? Other specialty store retailers in your market? 

Yes, all those and more.

But, what about the "stealth competitors" affecting every retailer – whether you are selling apparel, furniture, motorcycles, books, smart phones, or whatever? Stealth competitors; they are out there.

These competitors are hiding in plain sight. And, in our view, they significantly impact – and reduce – retail sales by skimming off discretionary spending.

What are they? The monthly recurring charges that support our digital lifestyles. Most of them didn't exist a decade ago. Just think about it:
  • There are the monthly cell phone data plans, for every member of the household. (Yes, even the grade schoolers. And, maybe even Grandma & Grandpa.)
  • Then, the monthly cable TV charges.
  • Plus, the monthly charges for high speed internet access in your home.
  • Of course, there are the monthly charges for "streaming" online entertainment services, such as Netflix, Amazon, now Wal-Mart, and others.
  • And, monthly online access to newspapers, magazines, etcetera
We call these kinds of monthly expenses "the enablers" of our essential digital lifestyles. They also are "creepers"; they tend to just keep rising. And for retailers, each one represents a major "stealth competitor!"
  
For many households, these monthly charges can add up to hundreds of dollars! And today, essentially no one can avoid them; they are treated like another "utility" charge. Is it any wonder consumers feel like they have less "spending money?" (And they are right!)

Erosion of "Retail Spending"

All of this connectivity comes at a cost to retailers. Money that is being dedicated to these monthly enabling charges is not available to be spent "at retail." 

Traditional "disposable income" is significantly eroded. And that happens every month, essentially out of sight. And to almost every household. 

What does this mean for retailers? "Know your competition" is more complex – and more important – than ever. Every retailer is affected!
 from The ROI's

Library for Owners

The "Diamond of Doom"

The High Costs of Excess Inventory

As a retail owner, one of your primary goals is to boost profit margins—right? 
  • You know that good inventory management is essential to producing top-notch profits.
  • You also know that bad inventory management can cause big problems with profit.
However, do you know there is a cause-effect chain reaction on your profits of carrying too much inventory? 

Here's how to quickly find out more. Take a look at the “Diamond of Doom” article in The ROI's Library for Owners. (And this diamond is definitely NOT a "girl's best friend"!) 
  • First, it illustrates what The ROI has called the "Diamond of Doom".
  • Then, it usefully explains each of the cause-effect impacts on profit of carrying excess inventory.
  • And yes, it shows how to find out if you have excess inventory, and if so, how much.
Available exclusively at The Retail Owners Institute.
 

Monthly Sales vs. Last Year

Quickly get more perspective on your own sales performance. 

Retail sales by sector (e.g., Apparel & Accessories, Furniture & Home Furnishings, etc) for March 2017 have been released. Once again, The ROI shows these compared to the same month Last Year. See those trends here on The ROI site.

Available Now: Webinar of the WEEK

 

Thinking About Selling Your Stores?

Friday April 21 – Thursday April 26

ALL DAY, ALL WEEK ACCESS • FREE

Is NOW the Time??

Many retailers – especially Baby Boomers – are wondering “Is now the time to sell my stores?”

Whether or not this is the right time for you to sell, it is definitely a good time to be thinking about it!

And now, there's a new way for retailers to do just that!

Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute®, have developed a specialized strategic assessment tool specifically for retailers.

In fact, one retail CFO said this about this approach:
  • "I think this is an excellent exercise to go through. It sets up strengths and weaknesses, and would certainly help bring out your finer points to any prospective buyer.
    "The standard earnings multiple that accountants and bean counters use simply overlooks a lot. This is refreshing!"
Take advantage of free access all week to this TOPICAL TUESDAYS Webinar of the Week. See how you can use this tool for your own business.
  • First, some reminders of what matters to buyers of businesses (and thus, what you need to focus on if you are thinking about selling the business)
  • Next, how to put a price tag on your business. (Same approach applies for deciding how much you would pay for a business.)
  • Then, Pat and Dick present their uniquely-retail assessment tool, and show how savvy retail owners can apply this to their own business.
You even may discover that you have more choices available than you had imagined! 

Go here for FREE access 
This week only Friday April 21 – Thursday, April 26

Retail Business Insights

An Elephant in Every Home?!
The only reason a great many American families don't own an elephant?

They have never been offered an elephant for "Just $100 down and Easy Monthly Payments!"
Go here. See what The ROI is tweeting about.

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!"

 
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