Re-Inventing Retail

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

What Causes Retail Failures? Bookmark

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Top 5 Killers of Retail Business

People who get their understanding about retailing from the popular press or from political rhetoric often believe that declining sales - “Comp store sales are down” - is the death knell of retailing.

While that is a popular view, it is not accurate.

Well then, what ARE the major causes of retail failures? (Spoiler alert: declining sales did not make the list.) You may be surprised.

But you also can be better prepared to protect your business from adversity.

Just go toThe ROI’s Library for Owners to see a recap of the Top Five "Killers" of Retail Businesses.

Keep this in mind: over one-third of the retail businesses that fail are actually profitable(!) 

They simply run out of cash when their creditors have run out of patience.

And finally, this dismal statistic: last year in the U.S. alone, on average, one retailer failed every eleven-and-a-half minutes, 24/7, 365 days. To be sure, all of those failures are traceable to one or more of the five “killers” we’ve covered here. 

Do not let it happen to you!

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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!"