Look Behind the Headlines to the Good News! | Retailers – Using Your Super Power? | Psst! Take a Sneak Peek at 2024 - Now!
Tuesday, November 7, 2023

From The Co-Founders

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

Isn't It About Time for Good News?! 

Undoubtedly you'll agree with this. We read and hear a lot in the business press, but we treat 100% of it rather skeptically. 

And so it is with articles and commentary about this coming Holiday Season, specifically about retailers' inventory and margins.

Nevertheless, there is considerable good news being trumpeted. Most recently, this feature article in the Wall Street Journal: "Retailers Hone  Inventory for Holidays" *
  • "Retailers that had big inventory glut problems have worked through the worst of them."
  • "Mark Mathews, executive director of research at NRF, notes the inventory-to-sales ratio for retailers – excluding those selling cars – has returned to 2019 levels."
  • "'Our view is that inventory is much better positioned  than last year,' said Lorraine Hutchinson, retail-sector equity analyst at BofA Global Research."
But friends, the really good news lurks behind the media's reporting. 
  • Sure, the industry's inventory is in line.
  • Sure, things appear to be closer to getting back to normal.
  • Great. But for independent retailers it means much higher margins because you'll take many fewer markdowns to be competitive!
Here's why. When there's a glut of inventory in the market, what follows is a deluge of markdowns, liquidations, and panic dumping of inventory. That has to happen. That excess inventory is soaking up cash.

Ahh, but apparently not this year.

This year, with inventories in line, it's wise to think fewer (panic) markdowns, and to look for higher margins. 

Sounds like fun, doesn't it?! And isn't it about time for good news?!!

* "Retailers Hone Inventory for Holidays", Jinjoo Lee, The Wall Street journal, November 6, 2023.
Tips • Tactics • Strategic Insights • Commentary
Want more of the strategic retailing observations from Outcalt and Johnson?  Prior commentary From The Co-Founders  is available under PERSPECTIVES on The ROI site.  ➡️
Use the Power of GMROI

Retailers: Use the Super Power of GMROI

Retailers 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. Go here to find out how. Best of all, it provides powerful insights specifically for retailers.

Since 60% – 80% of a typical retailer’s total assets are in inventory, it is essential that retailers know how their inventory investment is performing.

What is the "return on investment" of a retailer's largest investment? The GMROI calculation is the tool for the job!
Retailers' Super Power – GMROI

Psst! Sneak Peek at 2024!

In this lively Webinar by the Co-Founders, Pat Johnson and Dick Outcalt show how any retailer, anywhere, on your own, can know in advance whether you are likely to be profitable.

After all, why work that hard all year, only to end up with a loss?

Here's how savvy retailers can look ahead to avoid losses:
  • Step away from the to-the-penny details of your P&L. Cluster those dozens of separate line items into useful management categories.
  • See how - and why - Cost of Goods Sold affects profit.
  • See how to determine your best guesstimates for sales, margins, and expenses. (Close counts!)
  • See how The ROI's online PROFITS Forecaster, one of The ROI's proprietary projecting calculators for retailers, lets you do your own "What would happen if I...?" projections – and on-going adjustments – in just minutes. Anytime you want, 24/7. (Even better, with its built-in TREND TRACKER, you can easily monitor your progress each month.)
Ready to put your business on track for a profitable year? Be sure to take advantage of this empowering session. 2024 will soon be upon us!
Sharing is good!
Let other retailers (and those who care about retailing) know about The ROI. 
Tweet Tweet
Forward Forward
  • Strategic Retailing Know-How & Resources

    Plus Co-Founders' Perspectives • Opt out anytime • Free each week from The ROI

Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"