From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
You've seen them, right? All the stories about how strong this year's Holiday sales are expected to be.
Meanwhile, the department stores – Kohl's, J.C.Penney, Macy's – keep reporting sales declines. And malls, seeing less foot traffic and fewer shoppers, are scrambling. So, where will those robust retail sales come from?
The conventional wisdom says that will happen online. Not just Amazon, but the ever-expanding online presence of "traditional" retailers, from Walmart to Best Buy to Nordstrom. Consider the BOPIS phenomenon ("Buy Online, Pickup In Store"). It shows up in several ways, some of which will extend beyond the Holiday season:
Still, online sales are less than one-fifth of retail sales. So all that technology does not add up to the level of expected consumer spending.
What's being overlooked in all this? The resurgent sales that will happen in independent specialty stores – like yours!
No matter what merchandise specialty you sell - from books to apparel to tires to housewares - your stores offer what the customer really wants:
Talk about a powerful trend for retailing!
This is the year that the shoppers will discover specialty stores. Go get 'em!
A data analytics firm has identified four types of holiday shoppers, and advises marketers to have an appropriate strategy for each one.
Well, of course, none of this is news to retailers! But we think it could make a good topic for your next manager’s meeting. (And, it might be news to some of them!)
• Those who make things happen
• Those who watch things happen
• Those who say, "Umm, what happened?"
Increasingly, it looks to us as if the 2018 Holiday Season is going to be one where most retailers will be saying, "Umm, what happened?!?"
The forecasts for Holiday Sales are coming out. And they are very upbeat! Sales increases of 4.5 percent are forecast, versus last year's 3.6 percent. Meanwhile, holiday e-commerce sales are projected to grow 18-21%.
"With disposable personal income climbing and consumer confidence staying elevated across the U.S., the holiday shopping season could bring healthier sales for retailers," stated Rod Sides, the head of Deloitte's Retail Practice.
"The good news is retail is thriving, with a proliferation of new, niche retailers."
We have a mental image of a wide-open plain with hundreds of prairie dogs, cautiously poking their heads above ground. Looking around, they slowly realize they can actually venture out into the world once again. And venture forth they do. One by one at first, then more and more. Enthusiastically. Energetically. Excitedly bounding about, encouraging others to share their sense of adventure and fun. And that’s what we imagine is next for independent retailers. Here’s why.
You’ve heard about the robust sales numbers on Thanksgiving Day and Black Friday, right? Now ICSC – the International Council of Shopping Centers – has sponsored a research survey about Thanksgiving Day and Black Friday to delve into them a bit more.
And what they found sure surprised us. For example, who were the biggest fans of physical retail and shopping centers? Millennials. Yep, those "digital natives", folks ages 18 – 36 chose to make their purchases from physical retailers (or through websites operated by physical retailers) rather than shopping pure online retailers such as Amazon.
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.
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!"