PERSPECTIVES

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• Now who's the "technology laggard?"

  For some time, conventional wisdom has characterized independent retailers as "technology laggards."
  
  Not that they are Luddites; it's just that they regarded retail technology as a major expense, especially in human capital. They often were cautious, even skeptical, about the promises of new technology being pitched to them.
  
  When the pandemics arrived, many retailers responded rapidly and smartly. In scramble mode, some crammed five years of technology adoption into five months!
  
  Now, as the lockdown restrictions recede, the conventional wisdom eagerly suggests that consumers of all ages will continue to rely on online shopping and other technology. 
  
  Hmm. Let's consider that "conventional wisdom" a bit more closely. 

• 

  Who's Best for the "Never Normal"?

  You've no doubt seen the headlines and the commentary:

  • "Retailers Stumble Adjusting to More Selective Shoppers" *
     
  • "Consumers Uneven Spending Fuels Caution Among Retailers" **

  Consumer spending is up, but not on what was expected, especially those publicly-traded chains that must report quarterly. 

  • "As people watched the prices of food and gas rise, their spending became more selective, leaving retailers with shelves of inventory they couldn’t get rid of." * 
     
  • "Although some consumers are cutting spending on goods, it is being accompanied by increased spending on services," according to Mark Zandi, chief economist of Moody's Analytics. **

• Who's Buying What's Selling, And Where?!

  It's a given that your sales volume is a very big deal. Granted, you are analyzing it every day. But here's a slightly different approach which you may find very revealing.
  
  Let's start with a couple truisms. The definition of retailing is “selling to the ultimate consumer.” 
  
  Retailing also is having "the right product at the right price at the right place at the right time for the right customer."
  
  But, as retailers ponder how best to manage sales in the current consumer environment, does it really matter whether their "right customers" buy from them in-store or online? 
  
  Actually, it might! And here’s a simple, free "pilot project" to find out a little more.

  

• “Why Is Inflation So Stubborn? Ask Your Local Small Business”

  Perhaps you saw that recent article* in The Wall Street Journal. As Ruth Simon reported, "The cost pressures squeezing small businesses – and their need to pass along those higher charges – help explain why inflation has been so stubborn."

  • Over 80% of small business owners cited rising labor costs as the greatest impact on their cost of doing business.
     
  • Two-thirds of owners identified the rising costs of Commercial Insurance, Goods/Inputs, and Employee Benefits (including health insurance) as most significant. (see chart**)

  

• Honored to Be In Such Good Company

   

  Boy, are we ever impressed.
  
  We've known for years that those who are following and/or involved with The Retail Owners Institute^® are resolute, hungry, and determined. But wow! The challenges of the last year have brought out the very best in many of you.
  
  We've heard back some of the most resourceful survival stores that we've ever heard. Here are just a few examples:

• 

  Online Merchants Get Comeuppance

  👀 New Respect for Brick-n-Mortar Retailers

  Retail IS detail. And some of those pesky details are increasingly cropping up to torment online sellers. 
  
  For example, there's the matter of managing returns. As Chris Jarvis wrote in DMM/ShoppingCenters.com*:

  • "We return roughly 30% of all online purchases compared to only 10% from brick-and-mortar."
  • "In 2021 retail returns jumped to an average of 16.6% versus 10.6% a year ago."
  • "Research suggests that a single online return can cost two-thirds the original price to handle when we include labor, transportation, and warehousing costs." 

  Meanwhile, the pure-play online retailers are confronting the ever-demanding customer expectations.