From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
• 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?!?"
With the already-imposed tariffs (and promises of more to come), what is the best way to manage your inventory, its margins, and its quantities?
Increase orders now (at pre-tariff prices), but risk being over-inventoried?
Wait to order, choosing to pass the increased costs along (but risk lower sales)?
Or, wait to order, hold the line on prices, and bear the profit losses?
Let's be clear; each situation is unique and we don't have a recommendation for you. Nevertheless, you must make a decision!
Of course, your buying decisions depend on your assumptions about consumer demand. More crystal ball gazing is needed.
What are your assumptions today for how your customers – and your sales – will be affected in November/December by:
• Upticks in inflation?
• Stock market fluctuations?
• The turbo-charged turmoil of this election year?
• Worldwide recession?
• Etcetera
Enough of the drama, some say. It's only July. You know, "Summertime, when the living is easy." And much can and no doubt will change between now and this year's Holiday season. All the more reason that now is a great time for each retailer to watch the situation more carefully than ever, consider all of your choices, and be the best strategist you possibly can be!
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?
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.
You've seen all those comments, right? All the dire news about the demise of retailing?
It was 20 years ago this week that Amazon went public. Twenty years. And now they are valued at twice the value of Walmart.
As an independent retailer, this is certainly not news to you. The domination of retail first by Walmart and then Amazon is all-too-well known.
Look, we are not fond of what Amazon has done to independent retailers. But, we were struck by a comment by Jeff Bezos in a 2013 interview with Charlie Rose which we had missed earlier.
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.
The NRF – previously known as the National Retail Federation – describes itself as "the world's largest retail trade association."
And indeed, it has expanded well beyond a "national" focus. Its far-reaching international focus matches that of its large enterprise members.
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!"