PERSPECTIVES

Ready For A Trip To The Newest Library In Town?

We've often explained that The ROI is like the local public library. It’s brimming with information and resources. But, there is no one starting point, no set pathway through The ROI. Just like you have no one issue.

• At your local library, folks are looking for different information each time they visit. 
• That’s also true for visitors to The ROI’s website. "It depends…"

Given that usage pattern, we decided to essentially make it official. We've now departmentalized The ROI much like a library. 

Why did we do that? To make it easier and much faster for you to get whatever you need. 

Our library has nine specialized Retail Resource Centers awaiting you at RetailOwner.com.

Isn’t The Contrast Unprecedented?

We’re familiar with a middle-aged woman who recently applied for a sales job at a local “dress shop.” She’s a very pleasant person with an above-average family lifestyle. She sure didn’t need the income.

• When she was asked what prompted her to seek employment at that shop, she quickly said, “Oh, that’s the happiest place I know!”

Another woman we know prides herself on going to her favorite supermarket almost every day. She wouldn’t have to; she wants to. Why?

• “The nice produce lady helped me pick out the best melon. And, behind the meat counter, ‘my friend’ found the perfect lean ground beef that had just come in. And, my favorite checker always calls me by my name. I’m going back tomorrow.”

Maybe you don’t agree with us, but we think that we’re all going through a period of uncertainty, worry, sadness and concerns that seem to put a damper on much of normal pleasantries.

This gloom is getting old and those who can are seeking places where they’ll find smiles. And independent retailers specialize in smiles! 😊

Hypocrisy Runs Wild!

Very likely, you saw this headline today, as we did. “Amazon Announces $56,000,000,000 Profit.” For one quarter. Nice, eh?

The announcement also referred to Amazon as the world’s largest retailer, surpassing Wal-Mart. Again, how nice.

Meanwhile, another headline earlier this week: “Physical Stores Still Vex Amazon.” 

Hmm. The “world’s largest retailer” not able to make stores work?! The hypocrisy of boasting about profits, most of which come from Amazon Web Services, not bricks-and-mortar retailing. Moreover, their “online stores” reports 11 times as much volume as their physical stores ($61.4B versus $5.2B.)

Well, if you are Amazon, a little hypocrisy will probably never be noticed. Oh, how nice.

Why Close Does NOT Count In Physical Inventories

It’s very common for retailers to have their fiscal year end be January 31. It’s after the Holiday season, and inventories are generally low.

Likewise, it’s also very common that retailers are taking (or having a service take) physical inventory this weekend or soon thereafter.

As we all know, counting inventory by hand is tedious, boring, expensive and, frankly, no fun at all. However, whether by hand, by barcode, by any method of technology, the inventory count matters, and it matters a lot!

Let’s review the Big Picture for this business doing $700,000 in revenue, with $290,000 in total operating expenses.

Yes, to you.

Since 1999, you and people like you have supported the mission of The Retail Owners Institute® to “Eradicate retail bankruptcies,” one way or another. 

We give thanks to you. 

As you may know, the worldwide retail industry has the highest failure rate of any major industry.

Ahh, springtime! A time for new beginnings, fresh starts.

Spring also is a time for "Spring Cleaning" – that time of year to spruce up, clean up, fix up. Sigh! Another chore.

This year, here's how to break out of that another-to-do-task rut.

It starts by seeing your stores the way your shoppers see them. Then, with that awareness, the spruce up, clean up, fix up tasks can actually focus on attracting and appealing to your very best customers. 

And we have the (free!) tool to make all this happen.

We're sure you'll agree. Misinformation can be very harmful. Retailers surely don't need more harmful anythings!

Just last week, we came across the proverbial straw that broke the camel's back. It was a post on the Intuit Quickbooks site*, titled "Inventory Turnover Ratio." And the explanatory article was accompanied by an "Inventory Turnover Calculator."

What do we take exception to? The misleading and/or incorrect information it provides. For example, their "Inventory turnover calculator" requires two entries. 

• First, "enter the total costs involved in selling your products."

We must take exception. "Total costs involved in selling your products" is NOT the same as Cost of Goods Sold. Nor do they specify that it should be for a 12-month period of time. 

• The second entry they request: "Average inventory cost."

We must take exception. What they surely meant to say is inventory @cost. 

• Plus, they simply refer to "12 months of ending inventory balances," without specifying that it should be for the same 12 months for the previous entry.

People don't go into retailing to be financiers. 

• They love the merchandise they sell, and/or they love the people who buy the merchandise. (Think book stores, sporting goods stores, gift shops, etc.) 
   
• Others love the "theater", the excitement of retailing. 
   
• Still others want to be their own boss. 

But few are attracted to the financial part. 

Which is exactly why The Retail Owners Institute website has been built!

Given our years of experience consulting with retailers, especially in turnaround situations, our speaking at conferences and publishing in trade publications, we wanted to "level the playing field" for retailers.