From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
You know them all, right?
Warby Parker, eyewear; Everlane, apparel and accessories; Casper, mattresses; Harry’s, razors; Untuckit, button-down shirts; Allbirds, tennis shoes; Boll and Branch, bedding.
All began online-only, then started to open brick-and-mortar locations. Now, they are coveted tenants by the malls.
How coveted? According to a report by Lauren Thomas on CNBC,
“Real estate developers like Macerich, Simon Property Group, General Growth properties, and Taubman are offering up-and-coming retailers flexible lease terms, helping them design their spaces and promising other sweetened benefits to entice them to move into their properties.”
Short-term, low-risk leases? For small retail shops?!
No, it’s not fake news! The balance of power has shifted. Today, these small, specialty retailers are the traffic-generators. Not the malls; not the department store “anchor tenants.”
How did this happen? It’s all about the customer data.
And that creates opportunities for all savvy retailers.
As we have long taught, every retailer can and should collect, analyze, and apply your customer data to all of your strategic decisions.
Treat your customer information as the valuable – and proprietary! – asset it is. It is truly the coin of the realm. One that even is recognized by landlords! At long last, the power to negotiate is rapidly shifting from landlords to savvy retailers. Be one!
"Big Picture" Tools for Busy Retailers Whether you’re looking for better control of expenses, profit, inventory, or cash, these are the “big picture” tools for you.
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For looking ahead, playing "what if...?".
A new consumer confidence study based on monthly interviews with 9,000 respondents (versus the 500 or so polled in the University of Michigan consumer sentiment study) finds that the the key difference/predictor in people's attitude about the economy (and shopping!) is their political views. That's right. What seems to matter more today may not be whether you're in a mall or strip center. When it comes to location, apparently what really matters is, Red State or Blue State?
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.
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!)
We are living in unsettling times of rapid change, magnified by news cycle drama.
Maybe it’s the latest natural disasters or the uncertainty of international conflicts. Or closer to home, aging parents, unexpected expenses, or just trying to open a new bottle of aspirin, life can seem more out of control than normal.
This anxiety and frustration can be unsettling to many folks, some of whom undoubtedly are your customers.
And frankly, as the frustrations grow of having less control, some people will seek more control wherever they can.
Where would that be? That’s right. Your stores. You and your staff must be ready.
Considering a multi-store launch?
Opening additional locations?
Testing a new retail concept?
Launching a robust e-commerce site?
Any one of these approaches to growth requires that you develop your plans, explore real estate or web hosting opportunities, evaluate systems, identify mid-management talent, line up financing, and so on.
But wait! Before you get too far down the road on any of these areas, you first must decide: What is your fundamental growth strategy? That is, HOW do you want to grow?
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!"