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Re-Inventing Retail

From the Co-Founders of The Retail Owners Institute.
Tips | Tactics | Insights on the Business of Retailing.

No Room for Mediocrity Bookmark

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Aren't we all sick and tired of the perception that retailing is terminally ill?

While it’s tempting to simply paraphrase Mark Twain – “The news of the death of retailing has been greatly exaggerated.” – when dismissing the doom-and-gloomers, we think that Dave Gilboa, Co-Founder of Warby Parker, the eyewear retailer, summarized it more accurately in an interview last week on PBS:

“We don’t think retail’s dead.
We think mediocre retail is dead.”

And How Do You Define "Success?" Bookmark

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In 2004, Apple Computer was still climbing out of "beleaguered condition." Steve Jobs was the CEO, they released the first iPod Mini, and were just beginning the projects that would become the iPhone. 

And the company put Apple's "Rules for Success" on the back of employee badges.

You don't even have to be beleaguered for these "Rules for Success" to resonate. 

Consider:

No Surprise Here: Optimistic Retailers Look to Expand Bookmark

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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.

How's Your "Wow!" Effect? Bookmark

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"No business has ever failed with happy customers."
---Warren Buffett, CEO, Berkshire-Hathaway

Buffett's logic is very straightforward: people like to indulge themselves.

For some observers, this helps to explain Buffett's investments in "junk food" – from Coke, to See's Candy, Dairy Queen, etc. 

"The CEO of Berkshire-Hathaway invests in bad food and his diet reflects it: he drinks Coke at breakfast and ice cream is an occasional accompaniment," writes Kyle Stock of Bloomberg News.

"When asked about his diet, Buffett has said he aims to eat like a 6-year-old because that's the age at which mortality is least likely."

Why Omnivorous Amazon Gobbled Up Whole Foods Bookmark

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So, Amazon announced its plan to acquire Whole Foods, the 440 store natural foods grocer concentrated in urban locations, for more than $13 Billion (yes, with a b). They do have a flair for the dramatic, eh?

So, why does Amazon want to acquire Whole Foods? 

Our opinion:
Amazon is a technology company, and relentlessly data-driven. 

We believe they want to acquire Whole Foods for the same reason that drives acquisitions at most technology companies: Amazon wants the Intellectual Property of Whole Foods.

What is the "Intellectual Property" of Whole Foods? Two key assets that do not show up on the Balance Sheet.

"Good Customer Service" - for Which Customer? Bookmark

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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”.

What's Really Happening to Retailing? Bookmark

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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.

"Distracted Customer Syndrome" Becomes Chronic Bookmark

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After watching consumers being riveted on chaotic national affairs for almost a year, we now have put a label on it: “Distracted Customer Syndrome”. And it seems, sadly, to be unrelenting.

It started during the 2016 Presidential election campaign. Nothing about that was typical. It made for good television theater, and the networks certainly obliged.

And, we ascribed the sluggish retail sales in the fall to demands of this new American spectator sport. 

Banks Are Lending. Remember How to Schmooze? Bookmark

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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.

About The Co-Founders

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!"