We know that retail startups are up, but alas, so too are retail failures; even higher than historical norms.
Yes, the headwinds for retailers right now are real, and plenty difficult. However, it turns out that the underlying causes of failures do not change; like cockroaches, they just endure!
For perspective, it's time to review them. We have identified five principal reasons that even profitable businesses can fail.
To find out what these five dream killers are, and more important, practical ways to sidestep them in your business, see this quick overview: Five Reasons Even Profitable Retail Businesses Fail. From there, you also can find links to specific tools and resources elsewhere on The ROI site to help you address all of these challenges. It's all free. Yet the insights it offers could be priceless for you!
As we approach April of 2021, the question for retailers is "Now what?" Having survived 2020, in many cases on guts and guile, we must now focus on how best to survive 2021 and beyond. As having one foot on the dock and one foot in the boat, the future of retailers in that Red Zone is not a pretty picture. Granted, there is much talk about the expectation that "convenience" will become a major factor for shoppers going forward. And we don't disagree.
Here's the deal: We see that this has brought heightened awareness of two different retail strategies: Convenience Retailing versus Destination Retailing.
The season of ghosts and goblins and things that go bump in the night is upon us. While Halloween comes and goes, there may be another very unhappy monster haunting retailers this Holiday season. And it is spooky! What is this monster? It is an unintended consequence of the good faith efforts of many retailers to provide "excellent customer service." Customer expectations have been raised to heights that may not be fulfilled this year. A grim reality is setting in.
Yes, we know. Owning a retail business these days is one flexibility test after another. And there are no one-size-fits-all solutions. In the United States, one of the most widespread impacts of the virus is uncertainty. With no end in sight. It is the virus that is in charge. As the president of Alaska Airlines noted, "We don't know what the future looks like."* But the fact remains, whomever is selling to the ultimate consumer has leverage. Might that be you?
Another real challenge of 2021 is rearing its head: Whatever you used to do in terms of managing your staff likely will not work this year.
In the aftermath of the pandemics, lockdowns, stimulus payments, low unemployment, and minimum wage increases, finding and keeping good employees is even more daunting for independent retailers.
As we reflect on this year and the multiple and still-ongoing effects of the pandemic, we are inspired once again by the resilience and perseverance of independent retailers. Then we saw a comment about dealing with adversity that seems particularly relevant to retailers. Remember Cher, the entertainer? (And conservationist and philanthropist.) She was asked by Christine Amanpour about how she dealt with adversity and setbacks (like bankruptcy) throughout her career.
It has begun; the 4th quarter of the year. But sadly, Covid-19, the Delta variant, and now the Alpha variant will have huge influence. Meanwhile, there is no shortage of opinions and predictions about the economy, whether from Wall Street, the Fed, Capitol Hill, or your buying group or retail trade association. Amidst all this, we were intrigued by a report that could be of far more value to retailers: results of a monthly survey of consumer concerns.* After all, for retailers, the shopper matters much more than the pundits on the business pages.
Incredible value! 👀
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