From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
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.
Now the Big Banks have begun to partner with these alternative lenders, hoping to combine the efficiencies of their technology and their savvy about Big Data to enable more lending to more business owners.
And there is some pressure on all of these lenders to better serve “small businesses.”
Does that mean there is actually a loan in your future for your business? Could be.
But once again we would encourage you to focus your energies (and charm offensive) on Community Banks. Here’s why.
Want to find out more? Check out this Fast Track to Finding Financing page on one of The ROI’s microsites, Banks4Retailers. You will find 3 great tools there for you to use – free!
Community Bank Locator
Guide to SBA Loan Programs
An “Access Financing” guide from BusinessUSA
You also will find lots of other great information on that site. Knowledge is power! And Banks4Retailers is sure a great resource for you to be empowered. But, since who you know still matters more than what you know (sigh), make time for that relationship with your community banker!
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."
How important is it to have - and brag about - a “free and easy” return policy?
That is an issue that vexes many retailers.
Processing and handling returns can be costly and time-consuming.
But, there also are "costs" associated with more restrictive return policies.
A two-year study comparing return policies of two similar retailers offers some new insights.
Running retail businesses these days is a lot like teaching a teenager how to drive. "Look son; keep your darn eyes on the road!"
Predictions by the "experts" tell us that the economies of the world are remarkably strong right now. And given that, retail sales this year are expected to be up between 4% and 5%. Maybe the best year in a generation!
It's a time when independent retailers could – and should! – "Go for the gold!"
All they have to do is keep their eyes on the road.
An outdoor, upscale mall in Southern California had an extensive renovation and expansion two years ago. As reported by Linda Childers in The Washington Post (June 22, 2018), "Unfortunately, the transformed mall attracted not only new customers but also dozens of pigeons."
And, of course, pigeon droppings.
Mall management rejected adding fabric netting or strips of spikes to their property.
Instead, it pertains to the bond markets. It is the difference between interest rates on short-term and long-term government bonds. When long-term interest rates fall below short-term interest rates, the yield curve becomes inverted.
Here is why that matters: According to research by the San Francisco Fed, "Every recession of the past 60 years has been preceded by an inverted yield curve."
"Are retailers eating themselves alive?"
That was the provocative headline we recently saw.
Then this followed: “Retailers' rising e-commerce sales are taking a big bite out of their brick-and-mortar revenues – a wide-ranging problem.”
Other pundits we've seen call it “an untenable dynamic for these retailers.”
“Huh?”, we scoffed, as we read this about major retailers.
The definition of retailing is “selling to the ultimate consumer.” Why does it really matter whether they buy from you in-store or online?
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!"