Think about it. Shoppers, employees, people everywhere today have, in the back of their minds, one defining thought.
No matter where they work, where they shop, where they live, where they travel, where they eat, they always wonder "How safe will I be?"
Clearly, the Delta variant resurgence has focused the world on a sense of uncertainty that we all thought was behind us. Fact is, the situation may get worse before it gets better. And retailers and restauranteurs everywhere are earnestly trying to assure their employees, prospective hires, long time customers, new shoppers, their families, everybody – that safety is their highest priority. Indeed, many stores, malls, and other retail environments are very good at it. But consumers need to be convinced every day. It's a major deciding factor in everybody's life. As always, the customers get to choose where they go – or not. Just as the retailers and restaurants must depend on the customers, employees must depend on the businesses to provide a safe environment. And, the landlords cannot depend on the retailers and restaurants to re-open or be open unless they have sufficient employees, and of course, customers. All of whom must feel safe. These are unprecedented times.
A few years ago we were on a PBS news show about retailing's ups and downs. Several months later, one of us ran into a teacher of one of our kids. That person excitedly mentioned having seen us on TV, saying "I didn't know you knew so much about retailing." (Yep, known just as someone's parent, right?) But then this very well-educated person said the key thing: "I never knew there was so much to be known about retailing!" Well, that incident happened a few years ago when retailing was perhaps more understandable, even more predictable. Alas, those days are history! Today, nothing in retailing is quite as understandable or as predictable as before. Or as manageable!
"Retailing dead?" Hardly! “Retailing” is selling to the ultimate consumer. That is not going away, in spite of the current perception. What IS (appropriately!) endangered? Deadly retail real estate! Conventional, impersonal, and boring brick-n-mortar stores are deadly.
Successfully "doing retail" has always been a challenging and fascinating and evolving exercise. As the old Chinese proverb states, “It’s easy to open a store. However, it’s tough to keep it open.” And today, seemingly more than ever, third party organizations, more than individual entrepreneurs, seem to be drawn to retailing. Consider:
These and others fit into our category of “retail-as-added-use.” "It looks easy. Why don't we open stores?" But, retailing is not their core competency; they are manufacturers or direct marketers, or wholesalers, or importers, or whatever.
What's the #1 thing that the retail industry needs now more than anything else? More towns. That's right, more towns and villages. Look, towns tend to be more residential, even slower and more relaxed.
Even the word conjures up warmth.
And towns, and the people who love towns, are a mecca for the vibrancy of retailing. Think about it: the retail industry needs more towns!
And it's already trending in that direction. Macys, Whole Foods, Nordstrom Rack, and Walmart have announced rolling out small formats, seeking locations closer to residential areas. They recognize that's where their customers are and will prefer to be.
Conversely, there are way too many cities.
YOU are the leader we need now! Most of the people who receive our weekly newsletter from The Retail Owners Institute® are either owners of stores (duh...) or work with retail owners, not only in America but around the world. When you think about it, owners and senior management of retail businesses are looked upon as leaders everyday, by employees, by suppliers, by customers, by their families and often by the media. You are community builders. Amidst this pandemic, your leadership is more vital than ever.
"Buy low. Sell high. Collect early. Pay late."
That's the essence of retailing, right? But now, in the early summer of 2021, retailing more than ever demands a strong dose of good judgment. It's shouted everywhere: "Look out! The inflation tsunami is coming!" Yikes! It's buying season for many retailers, and the pressures to buy more, now, at these-low-prices-that-won't-last are mounting. And this is only the beginning.
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