From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
The retail launch last week of California's newly-legal sale of recreational marijuana was newsworthy. Huge public acceptance as you no doubt noticed.
Then, to magnify the drama of it, the U.S. Attorney General restored enforcement of federal legal restrictions on the sale and distribution of marijuana even in states where it is legal.
Meanwhile, we noticed a new Gallup survey of the population across the U.S. It showed that 64% of the public approved of legalizing recreational marijuana. Ahh, yes. Once again, "Retailing is a mirror on society!"
For those of us who are fascinated by the constant ebbs and flows of retailing, this new phenomenon is already amazing and only will become more so.
Consider for a moment that the growers and farmers of legal cannabis are currently producing far more product than the pubic within their state is expected to consume. And what always happens when supply far exceeds demand? Yep. Price wars. Deflation. A race to the bottom could be looming.
And then you have established retailers, some with deep pockets and competitive threats galore in their present businesses, who must be licking their chops at what they see: a high margin growth segment currently being served by small, Mom-n-Pop "amateurs."
The various state laws may currently impose restrictions on the number of storefronts per ownership group, but those laws are subject to well-funded lobbying efforts and change. The opportunity to be a category killer is very alluring.
Isn't it a little like 20 years ago when Amazon, recognizing a segment dominated by "small retailers", started selling books online? Yikes!
Want to watch something fascinating that's not yet on Netflix? The marijuana retailing industry should sell tickets!!! What a high!
You’ve heard about 3D printers, right? They are computer devices that use a blueprint (a “digital model”) of an object and produce (“print”) one or more copies of that object by painstakingly building up layer after layer of its form.
Essentially anything that is manufactured can be replicated, one by one, with a 3-D printer!
And, be ready. It is coming to a store near you very soon. Shouldn't it be your store?
The ROI NEWS asked retailers this question about the effectiveness of Social Media: “Does it raise sales?!”
We invited retailers to take a short, quick, 6-question survey about their use of promotional tools in general, and, in particular, “Social Media”: Facebook, Twitter, Pinterest, Instagram, LinkedIn, Other.
We asked, and you answered!
You quickly confirmed that “social media” is in fact a hot topic among retailers!
And, you are willing to share your experience with it with others, and for that we say, Thank You!!
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.
"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?
A new consumer study by First Insight* confirmed: “Today’s consumers expect discounts every time they shop.” The documentation of this phenomenon – what we often refer to as “NPR: Never Pay Retail” – is not surprising. But it is quite sobering.
And then there is this (why do we need to be reminded?): In the battle to deliver "what the customers want", discounts offered have to be real! Yes, even if your name is Amazon!
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!"