As the final third of the year approaches, there's a "new era" afoot. There is optimism in the air.
Yes! And it could catch a lot of folks by surprise.
You've no doubt seen the headlines and the commentary:
Consumer spending is up, but not on what was expected, especially those publicly-traded chains that must report quarterly.
It doesn't make any difference if you're selling tires, turbans or tuxedoes.
Poor prior planning produces pitifully poor profits.
(You can take that to the bank!)
We came across an article on this checklist theme for the rapidly approaching fall/Holiday season.
One of the real killers of a retail business can be debt. But, how much is too much?
Debt can be quite stealthy as it grows.
Especially in these times of increasing interest rates, creeping expansion of debt can quickly snowball into a much larger problem.
From the Benchmark pages on The ROI site, we have selected four retail verticals whose Debt-to-Worth ratio shows a frightening situation. The technical term we would use is "spooky, real spooky."
(click on each chart to see all key ratios for that vertical)
A frequent recommendation for how to navigate the current economic uncertainty is to be more diligent about controlling expenses, and focus on profit. (You'll see; we challenge that below.)
Hmm. Concentrating on profits is easier said than done in today's environment, with cost increases proliferating under the umbrella of inflation.
Your results are likely to be consistent with these patterns.
Still less than $1 a day! 👀