PERSPECTIVES

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• 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.

• 

  Enough already with the "Covid Fatigue"

  Have you noticed? "Covid fatigue" has been spreading lately. It seems to be almost as contagious as the virus itself. Ugh!
  
  And small wonder. Even as parts of the economy strive to re-open, they only remind us of how different everything is.

  • Major League Baseball played in stadiums of cardboard cutouts of fans. The U.S. Open Golf Tournament with no spectators. Professional basketball teams in "the bubble" at Disney World. 
  • And some colleges preparing to resume fall classes have been described as "a cross between a seminary and a minimum-security prison."

  Meanwhile, the U.S. Congress cannot agree on what should be done next. A nasty election campaign season looms. Protests are still happening in many locations. 
  
  Remember this: all these things that contribute to our Covid fatigue, what we have called the "Pandemic Trifecta of 2020" – the virus, the economic meltdown, the national protests – all of these are uncontrollables. We all are victims of all three pandemics. 
  
  But, you CAN control what you choose to do with your business going forward. Will you choose Door A, Door B or Door C? 

• Compete with Amazon? You don't!

  As Amazon Prime Day approaches – it is June 21 and 22 this year, the earliest ever for this 48-hour promotional event – 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. 
  
  Yet independent retailers do have many strategic advantages over Amazon. But you must recognize them, and enhance them at every opportunity. Here are some ideas that you may want to consider. 

• 

  Enough Already with the Uncontrollables

  A frequent recommendation for how to navigate the current economic uncertainty is to be more diligent about controlling expenses, and focus on profit. (You'll see; we challenge that below.)
  
  Hmm. Concentrating on profits is easier said than done in today's environment, with cost increases proliferating under the umbrella of inflation.

• 

  Not Just the Turkeys This Year

  Each year at this time, our thoughts turn to turkeys. 
  
  No, not the ones that will adorn many dining tables on Thursday. But the "turkeys" lurking amidst your inventory. You know; non-selling, distressed, slow-moving, old, unappealing leftovers among your merchandise. 
  
  But this year, frankly, our worries extend beyond the turkeys. 
  
  Here are some of the reasons why.

  • All the gloom and doom talk about the economy and recession continues, affecting consumer attitudes.
  
  
  • With few pandemic or supply chain issues, many retailers have more-than-ample inventory this year, unlike the previous two years.
  
  
  • Inflation is impossible to ignore, especially for those who drive cars or shop for groceries.
  
   

  As a result, in this environment, consumers are scaling back their discretionary purchases, and/or choosing to spend on travel, dining out, or other experiences versus retail merchandise. 
  
  Not an upbeat prospect for retailers, is it?

• Thanksgiving Is "Late" This Year

   

  "Christmas will be here before you know it."

  Well, actually, Christmas will be here the same time it always is: December 25. 

  However, what does change are the cues for the shoppers. 

  That is, Thanksgiving falls as late as it can this year, on November 28. That means, for those keeping score at home and for the breathless business pundits, there are only 26 shopping days between Thanksgiving and Christmas. This is six days shorter than a year ago, and the shortest since 2019.

  That's why some retailers, especially those that are publicly traded, are making mighty efforts to lengthen the shopping season. 

  But, is there actual value in trying to prompt shoppers to start their Christmas shopping before they have even handed out Halloween candy? Yes, but...