From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
"Retirement" looming? Ready to reduce hassles and worries, but not really ready for a rocking chair? Here’s a variation on a “mixed use development” that could offer a great transition plan to retailers. We just heard about a new kind of “mixed-use development” (you know, retail shops on the ground floor, residences up above.) Some of the new townhouses being sold in a planned resort community come with a first-floor retail shop. The owner of the townhouse owns the shop space as well!
The retail space and a powder room on the ground floor total 753 square feet.
The two upper floors provide 1,935 square feet of living space (3 bedrooms, 2.5 baths).
A carport in the back contains the stairway leading to the living space.
A balcony on the second level overhangs the retail entrance on the street.
The townhouse owner can then choose to operate a shop in “their” space, or, be a landlord, and rent it out to another retailer.
While a 3-bedroom condo might not be your idea of “downsizing”, the opportunity to also own the retail space offers some intriguing opportunities.
Maybe you still want to run a small shop (perhaps a smaller version of what you’ve been doing for many years.)
The internet could balance out the seasonality of being in a resort community.
Or, you rent out the space to another retailer, and receive the rental income.
In any event, you still have a place to live, plus equity in the property, and could benefit from any appreciation in its value over time.
As we thought about it more, this may be a concept that already is happening in a variety of settings other than a resort community.
Perhaps a college town?
Or, in one of the “lifestyle centers” that are being built/redeveloped in suburban communities?
Or, maybe even in the town where you already live?
We think it's a fun new wrinkle on an exit strategy, an issue facing many owners. All part of “making the business work for you!”
Might it be "an exit strategy" to look into?
The National Retail Federation sponsored a survey in early May of retail small business owners across the country (those that meet the SBA definitions for employee size and revenue.) Contrary to the doom-and-gloom of the "Retail Armageddon" stories, this survey confirmed that retail owners are optimistic and looking to expand.
Few believe their business will be in worse shape in 12 months;
Nearly half expect revenues to increase;
Many have goals for expansion or implementation of new technologies.
What especially intrigued us, however, is this new feature Boxed has announced: group orders.
Customers can now do a group order online by sending links to others to collaborate on an order.
In today’s seemingly chaotic retail environment, much is being said and written about the importance of good customer service. And there are many suggestions on how to do it. The Retail Owners Institute asks the question, “Good customer service? Of course. But, for which customer?” Consider, for example, how different lifestages can create much different expectations for “good service”.
You’ve been seeing these reports, too? Word is that banks are increasingly willing to lend, especially to “small businesses.” There are several influences at play here.
One is the optimism in the business community that the Trump Administration and Republican Congress will actually reduce regulations, loosen compliance demands, and otherwise open the spigot more.
And Community Banks are optimistic for relief from some of the more onerous paperwork requirements that were written with the Big Banks in mind.
Meanwhile, the rise of alternative lenders – the online marketplaces – brought a more streamlined way to handle the paperwork of banks. And they paved the way for using Big Data to make safe, defensible lending solutions.
Here's a revealing factoid from Bloomberg News: "Of the people who use social media, one in three makes a purchase every month through a platform such as Instagram, Facebook, Pinterest or Snapchat."
It's a trend you may not like, but heads up, folks. It's a tsunami!
Pat Johnson and Dick Outcalt, The Co-Founders of The Retail Owners Institute®, have been called "The Zen masters of retail finance!" Since 1999, they have been assembling their proprietary content into a unique self-help website. The Retail Owners Institute is an unmatched resource that assists retailers worldwide with basic financial training, assistance and easy-to-use tools. Their engaging and empowering how-to resources about the financial levers in retailing are informative, fun(!), and retailer-friendly. Their promise: "Everyone will 'get it'!" Pat and Dick are recognized experts in strategic retailing. Working only as a team – Outcalt & Johnson: Retail Strategists, LLC – they have been consulting, publishing, and speaking professionally throughout North America since 1990. They focus exclusively on retail, or wherever retail is involved. They work with CEOs, CFOs, boards and owners of retail operations, as well as manufacturers or wholesalers expanding into retail. And they also are Retail Turnaround Experts.
Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"