Like every natural disaster, whether a massive storm, earthquake, wildfire, we all are victims of COVID-19.
Not all of us have suffered being infected by the virus. But, essentially everybody has suffered losses.
Few have been spared.
And that means Owners of retail operations have the opportunity to shape their own business for the New Normal!
Here are some reminders to keep in mind as you map out your store's future.
In retailing, it always starts with the customer. Consumers will be more cautious, discretionary consumer spending will be subdued.
All age groups have been impacted; no one has been spared.
Discretionary spending, will be diminished. Merchandise mixes must reflect this reality; more basics, never-outs.
As shoppers become more purposeful, the transaction will be more important.
In this environment, retailers who are whiners will be toast. Count on it! But, those retailers who seize the opportunity to experiment can create a terrific, viable business that could thrive.
Retailing is coming back. Will you?
This Holiday season is bringing three big waves for retailers, in rapid succession. And each one requires a strikingly different management response.
Faced with the shipping delays (and surcharges), customers have turned to brick-and-mortar stores. The savvy retailers are ready for them.
As the global efforts to "flatten the curve" of the coronavirus pandemic continue, there is another curve that is being flattened. That would be the seasonality of retail sales.
And this may prove to be what really defines the New Normal for retailers.
The customary peaks of retail spending have been flattened.
ICYMI. You know, that's the shorthand for In Case You Missed It. And in fact, we had missed this.
As reported by Chain Store Age*, "The Conference Board’s Consumer Confidence Index rose slightly to 107.2 in March, up from 105.7 in February. It was the first time the metric has increased in three months."
Wow! Is that ever a stray ray of sunshine! We always look to Consumer Confidence levels as a leading indicator for retailers.
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.
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.
There’s an awareness, an “Oh wow!” sweeping around the commercial world. It’s stated in a variety of ways, but it’s the same surprise.
Indeed, some respected urban thinkers are suggesting that 50% of the traditional commuters may want to and will be encouraged to continue to work remotely. 50%?! Yikes. That’s quite a redirection of the parade!
Still less than $1 a day! 👀