PERSPECTIVES

Related Articles

• 

  Enough already with the "Covid Fatigue"

  Have you noticed? "Covid fatigue" has been spreading lately. It seems to be almost as contagious as the virus itself. Ugh!
  
  And small wonder. Even as parts of the economy strive to re-open, they only remind us of how different everything is.

  • Major League Baseball played in stadiums of cardboard cutouts of fans. The U.S. Open Golf Tournament with no spectators. Professional basketball teams in "the bubble" at Disney World. 
  • And some colleges preparing to resume fall classes have been described as "a cross between a seminary and a minimum-security prison."

  Meanwhile, the U.S. Congress cannot agree on what should be done next. A nasty election campaign season looms. Protests are still happening in many locations. 
  
  Remember this: all these things that contribute to our Covid fatigue, what we have called the "Pandemic Trifecta of 2020" – the virus, the economic meltdown, the national protests – all of these are uncontrollables. We all are victims of all three pandemics. 
  
  But, you CAN control what you choose to do with your business going forward. Will you choose Door A, Door B or Door C? 

• But, we must take exception....

  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.

  Only the Beginning
  Turns out, this is only the beginning of the misleading information.
• 

  Good Help Hard to Find? Take the Hint!

  As the Holiday Season approaches, finding good help promises to be especially challenging for retailers this year. 
  
  Then, we read "10 Things to Know to Get And Keep Retail Jobs," a to-the-point commentary from Bob Phibbs*, who specializes in retail sales training. 
  
  Here are his Top Ten recommendations for prospective retail employees:  

  • "Performance is Key"
  • "Treat Customers with Respect"
  • "Go the Extra Yard"
  • "Be on Time"
  • "Don't Gripe About the Hours"
  • "Be Flexible"
  • "Don't Be a Drag" 
  • "Be a Team Player"
  • "Respect the Rules"
  • "A Cut in Hours is a Sign"
• 

  Get Your Tents and Sidewalks Ready!

  As more stores are able to reopen, and more shoppers are willing to emerge, what will they encounter?

  • "A glut of pent-up inventory is waiting to be dumped on consumers this summer as retail stores reopen in the U.S., and shoppers for everything from shoes to sofas should be able to find major bargains," reported the Wall Street Journal* on June 2.
• 

  Ready for the Post-COVID Customers?

  Believe it! A second chance to make a good first impression!

  
  Yes, the shoppers WILL be returning. But boy, have they learned a lot during these pandemic times. 
  
  They are far more comfortable with online shopping, and in many cases, eager to continue that. And the convenience of "contactless" features like curbside pickup and BOPIS (Buy Online, Pickup In Store) are welcomed.
  
  In fact, an extensive survey from McKinsey & Company* provides considerable detail about the newly-learned online shopping behaviors of customers, and their expectations of continuing to use these new-found skills. 

  Particular changes with presumed staying power: 

  • More online shopping
  • Less brand loyalty
  • Need for "hygiene transparency"
  • Back to basics & value
  • Rise of the homebody economy

  But hold it. Wait just a minute. Our countervailing view is that the "homebody economy" will wear thin. And while customers do care even more about basics and value, especially when it comes to Holiday shopping, they will want "special." 

• 

  Enough Already with the Uncontrollables

  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.