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He believed that the best way to survive in retail was to focus on top line growth. And lots of inventory.
But…the winds of competition blew his store away.
He believed that the way to prosper was to focus on high initial mark-up, skimping on operating expenses.
So…the winds of competition blew his store away too.
No matter what merchandise you sell - whether it's tires, apparel, books, housewares, office supplies, whatever - every retailer has to give the customer what they want.
Right now, customers want “Steak, cheap”, not “cheap steak.”
Customers also are eager to shake off the doom and gloom of the winter. They are more than ready for a fresh new outlook. (Aren’t we all?)
Consider these upcoming calendar events:
The spring ahead to Daylight Savings Time is this weekend.
The “official” March 21 start of spring is just two weeks away.
What a great opportunity for you to welcome a fresh, positive, upbeat Springtime State of Mind!
Combine that fresh attitude with some well-priced promotions – remember, “steak, cheap” – and you have the makings of a fine start to your spring season.
The savvy retailers know that now is the time to be putting the finishing touches on being ready for – wait for it – December 26!
This unique time period between December 26 and January 10th is a tremendous make-or-break opportunity. Indeed, many retailers find they net more from this time than any earlier stretch of 15 days!
First, the many opportunities to reduce expenses "back to normal." Less advertising cost. Less staff. Fewer hours.
Second, those people using Gift Certificates, making returns or exchanges are potential new customers. Likely, many of them haven't been in your store before. A great opportunity!
And third, the opportunity to clear out seasonal merchandise, generate cash, and move on to the New Year.
The prospect of tariffs from 10% to 60% being imposed on goods from Canada, Mexico, China, and other countries by the incoming Trump Administration is certainly contributing to headlines and attention. Another flexibility test for retailers.
Some retailers have seized on the uncertainty that has resulted. They are using the fear of tariff costs leading to higher retail prices to heighten the shoppers' sense of urgency.
Except for the lingering sugar high, Halloween is well behind us. Retailers know what that means: on to the Holiday Season!
Of course, for most retailers that brings a major focus on sales. But, savvy retailers are especially focused on the targeted ending inventory on December 31.
Those retailers are carefully watching sales reports, and are poised for action.
Each week, they identify "What's not selling yet?" And they do something about it! Move it around on the floor? Display it differently? Pair it with merchandise that IS selling? Lots of choices!
What About Markdowns?
What are we waiting for? The customers are here now. Do we really want to wait for January clearance sales?
Periodically it’s more essential than normal for business owners to interrupt their routine and get a good look at their upcoming financial choices.
And this is one of those times!
Many very savvy people are quite concerned about the economy and consumer behavior right now.
High debt maturing in both the real estate and the public sectors.
The multiple international upheavals that continue to grow.
And, certainly, the impending changes at the Presidential and Congressional level in the U.S
These issues are joined by others to make NOW a very important time for business owners to look ahead financially…maybe weekly for a while.
That is the provocative title of an interesting New York Times Guest Essay* by Bill Saporito, editor-at-large at Inc.
Saporito’s message is very relevant as the Holiday Season approach. To reduce the paralyzing effects of too much choice, now is the time to finalize your merchandising strategies.
As Amazon's second two-day Prime Day of the year approaches – this one is October 8 and 9 – retailers from all segments are wondering (or being asked): "So, how do you compete with Amazon?"
Our response? You don't, at least not directly. Not on their turf.
Look, independent retailers do have many strategic advantages over Amazon. Your challenge – and opportunity – is to recognize them, and enhance them at every opportunity. Here are some ideas that you may want to consider to allow you to compete on your terms.
No more attempts to be all things to all people. Instead, focus on the portion of your market – and the customers – that are most profitable for your operation. (Go here for more about that.)
Remember that life stages (presence and ages of children in the household) drive buying decisions. Shoppers from which lifestage are most profitable for your stores?
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