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From the Co-Founders of The Retail Owners Institute.Tips | Tactics | Insights on the Business of Retailing.
As we often explain, "Retail is a mirror of society." As such, we believe all retailers have an opportunity to lead by example. And most of us do a fine job.
Recently, however, there have been some extraordinary examples of retailers taking an extra chance but certainly setting some fine examples.
Dick's stood by their decision, and said it matched their corporate policy of the country comes first, the company comes second. Then in early June, it was announced that, since that decision, the stock price of Dick's Sporting Goods, as well as bottom-line earnings, have consistently climbed.
Good citizenship/leadership is being rewarded. One more example of "doing well by doing good."
Here's another example. The last Tuesday in May, in response to their totally inappropriate treatment of two people in Philadelphia, Starbucks closed their stores for a company-wide afternoon of training on implicit racial bias.
When retailers take that road that less traveled – the high road – society if not the world just might be a trifle better off. If you can and if you agree, please join us in applauding Dick's Sporting Goods and Starbucks. Let's hope that they are joined on the high road by many more examples of brave retail leadership.
The need is clear; the opportunity is all of ours.
As we often discuss, retailing is a very dynamic industry, constantly changing and evolving. To be successful, retailers must pass frequent flexibility tests. So we paid particular attention to this recent headline in the New York Times*: "The freshest ideas are in small grocery stores."
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!
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.
What especially intrigued us, however, is this new feature Boxed has announced: group orders.
Customers can now do a group order online by sending links to others to collaborate on an order.
Used especially by large national chains, it applies technology to accept or reject attempted returns.
Have questions about your return being denied? The store employee directs you to contact the return authorization service.
Well, that's one way to handle returns, isn't it? And it may be very appropriate for large national chains that are particularly susceptible to fraud or so-called "returnaholics."
But for local retailers, return policies are one of the most complex management issues in retailing.
The so-called "Tariff War" that's in the headlines these days seems to most of the public to be a yawner, a distant spitting contest.
But to us, it seems much closer to home.
We're in the business of helping retailers and, when we can, providing a heads up when we see trends that may be impactful. The current trade disputes between the United States and most major countries in the world is one of those times. Retailers need a heads up.
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!"