PERSPECTIVES

From The Co-Founders

rss

Tips, Tactics & Strategic Insights and Commentary
from The ROI Co-Founders, Pat Johnson and Dick Outcalt
Outcalt & Johnson: Retail Strategists LLC; Retail Turnaround Experts

COVID-19 thumbs/Wondering.png
Not Just WHETHER to Re-Open. WHAT to Re-Open?

Some thoughts from Nordstrom leadership that are spot on!

  • “We started this company from scratch, so what would we want to be, knowing what we know now? It’s clear we can expect a new normal. And it's up to us to decide what that will look like. We're each being presented with the unique opportunity to create a future worth envisioning.”

That's what Nordstrom President and Chief Brand Officer Pete Nordstrom told Puget Sound Business Journal columnist Patti Payne on April 23, 2020.

And what he succinctly stated is exactly the challenge – and opportunity – that is confronting all retail owners. 

In order to answer whether you should re-open once you can, you first must be very confident in WHAT kind of retail operation you will be re-opening.

The only certainty of the aftermath of the pandemic is that everything will be different. Given that, what better time to re-imagine your business?

Time to think about priorities, and to make some lists. This can be for your eyes only at the start. But you do need to pick your favorites. 

  • Which customer groups do you most want to serve? 
    Of those at the top of your list, do you have an established following? Or is this an aspirational target market for you?
     
  • Which vendors do you most want to continue with? Grow with?
    And yes, which vendors or lines or categories are you most comfortable letting slip away?


Now, sit back for a moment: given your top priorities for merchandise and customers, what needs to change in your operation to best accomplish that? 

Time to unleash your imagination! For instance, think about your stores themselves:

  • Which ones are definite keepers?
  • Which, if any, would you like to relocate?
  • Which, if any, would you like some square footage changes?​


What else might need to be re-invigorated?  How about your staff? 
​Does this new vision take better advantage of their talents and strengths? 

  • If not, how readily are people with those talents available to you?
  • When will you start searching for them?


What we are starting here is a cycle of Owner Questions:

  • WHETHER to re-open depends on WHAT to be when you re-open, and WHO your customers, vendors, and staff will be. 
  • And WHO those folks are drives WHAT you need to be. And WHETHER and WHEN to make that happen. 
Cause-effect. Cause-effect. Cause-effect.

Here's the good news: Once you work through that cycle a time or two, you will have an actual, pro-active framework for HOW to go forward. 

And, you very likely will be re-energized. Frankly, that's your most essential ingredient going forward! 
  • Now you can re-double your efforts to clear out the pre-COVID inventory, because you know which is no longer relevant for your future.
  • Same with your store locations. Which landlords do you really need going forward?  
  • And your staff: what do they need to be better able to achieve this new vision? 
  • The role of the internet: Do you need it for actually selling merchandise? Or communicating better? 

And here's a key thought: get an online appointment scheduling tool, whether or not you offer a "personal shopper" program.
  • There may be initial mandates about customer counts in stores.
  • But even without that, allowing customers to schedule a time to come shop increases their sense of control, which will be very crucial going forward.  

See? There ARE Choices!
Now, as we all work to emerge from the pandemic and the economic crisis, let's remember that now we actually DO have choices. 

There will be no better time in our lifetimes to rewrite the script for your stores. Four blocks from our office Pete and Erik Nordstrom are going through the very same thing.

You have good company!
COVID-19retailre-opening stores

Related Articles

  • Dealing with Your Landlord? This Is Better Than Begging!

    Let's assume your stores have been closed for weeks now. 

    We recognize how conscientious you are. So, after paying what you can to your employees (and yourself), the next most-worrisome dilemma is your rent.

    • How best to get some immediate relief from each month's lease payment?
    • And you wonder, what would be the best way to negotiate with your landlord?

    As you likely have discovered, a common choice for many landlords is to offer to defer your payments. But that means taking on more debt, as those payments are only being postponed to a later point in time. 

    You need a better solution than that.

  • The Opportunities of a Crisis: Don't Miss 'Em!

    Each of us, our households, businesses and communities are in different stages of shutdown due to the coronavirus.

    While we cannot speak to when this will end, we do have some ideas for dealing with the "fog of uncertainty" that hangs over us all.

  • COVID-19 thumbs/MasterChart3v2.png

    The New Dynamics of Merchandise Mix

    The Retail Owners Institute® has developed a retail strategy for "Inventory Management Going Forward." 

    As we often do, it was recapped as an unassuming chart (see above) identifying the Five Stages of Merchandise Mix Management, from "Before COVID-19" to the "New Normal?"

  • Retailer's 3-in-1 Cash Flow Calculator

    YOUR GOAL: QUICKLY GET TO A FIRST DRAFT.
    Face it. Sales are dropping. By how much? For how long? Nobody knows for sure.

    But, you can make some assumptions, some educated guesses. Put those into the 3-in-1 Cash Flow Calculator. 

    • Immediately see what that would mean for profits. 
    • And your buying plan. 
    • And most of all, your cash flow! ​

    These totally volatile times cause a lot of opinions and fears to be swirling around. Seeing "what if...?" can be very helpful. 

    ​All in just minutes. On your own. ​

  • When You CAN Re-Open Stores...SHOULD You?!

    Retailing is so great. Every retailer is an optimist, a people-person, and a bold risk taker. (We know; been there, done that.) Every retailer wants to get their stores re-opened, and their staff people re-employed. 

    Granted, there are many arguments, pro and con, about "Re-Opening the Economy." And in a number of communities in the U.S. and elsewhere, some re-opening of stores and restaurants is occurring. ​​

  • So, What Time Is "Just-in-time"?

    Is This Why Many Retailers Fail?

    Maybe you've also noticed it. The recent articles about how retailers now have their inventories "more in line" after the glut of excess inventory caused by "supply chain disruption."

    Okay. That's good news.

    But, what jumps out at us is the frequent reference to "just-in-time" inventory management.

    • Really? Tell us, What is the formula for calculating "just-in-time"? 
    • What time is "just-in-time"? Is it 2 turns on the inventory? Four turns? Six turns? Twelve turns? Or what?!?

    Look, if you can't measure it, you can't manage it. And, if you can't manage something, by definition (and experience!) it is out of control.



Comments are closed.
To get your own MEMBER ACCESS,  just go to the SUBSCRIBE page and make your choice.

Incredible value! 👀