PERSPECTIVES

Isn’t The Contrast Unprecedented?

We’re familiar with a middle-aged woman who recently applied for a sales job at a local “dress shop.” She’s a very pleasant person with an above-average family lifestyle. She sure didn’t need the income.

• When she was asked what prompted her to seek employment at that shop, she quickly said, “Oh, that’s the happiest place I know!”

Another woman we know prides herself on going to her favorite supermarket almost every day. She wouldn’t have to; she wants to. Why?

• “The nice produce lady helped me pick out the best melon. And, behind the meat counter, ‘my friend’ found the perfect lean ground beef that had just come in. And, my favorite checker always calls me by my name. I’m going back tomorrow.”

Maybe you don’t agree with us, but we think that we’re all going through a period of uncertainty, worry, sadness and concerns that seem to put a damper on much of normal pleasantries.

This gloom is getting old and those who can are seeking places where they’ll find smiles. And independent retailers specialize in smiles! 😊

On April 5, the National Retail Federation, “the world’s largest retail trade association,” felt compelled to explain “Five Things To Know About Tariffs.” 

Among the first things they explain is who actually pays the tariff.

What is a tariff? 

• “Tariffs are a tax on goods imported into the United States and are paid for by the U.S. importer.”

• “When tariffs are enacted, retailers are forced to choose between raising their prices or relying on already slim profit margins to absorb the increased cost of inventory.”

• “Many small retailers are indirect importers and rely on other companies to import the products that they sell. These indirect importers [that is, small retailers] have even less ability to shift their supply chains to mitigate tariff costs.”

This sums up pretty well the challenges retailers are living with. But...

One little pig built his store out of straw.

He believed that the best way to survive in retail was to focus on top line growth. And lots of inventory.

But…the winds of competition blew his store away.

The second little pig built his store out of sticks.

He believed that the way to prosper was to focus on high initial mark-up, skimping on operating expenses.

So…the winds of competition blew his store away too.

Meanwhile, the third little pig built her store out of brick!

You've seen them, right? You may be using one yourself.

The typical accounting package that lists expenses in alphabetical order. 

• Advertising, then Auto Expenses, then Bank Charges, and so on. 
• Lines and lines of separate expense items, all detailed to the penny. 
• And built to satisfy the taxing authorities.

How useful is that to retail management?!

Actually, there is an easy way for busy retailers to turn all that line-item data into useful management information. And maybe find those profits that have been hiding in plain sight!

Let’s take a break from the drama of the business and economic news, and its uncontrollables. It's time to put the fun back into retailing!

Remembering that "Retail IS detail," focus on attracting and appealing to your very best customers.

And we have the (free!) tools to make all this happen. But be ready: surprises and new insights will emerge. 

• First, check out this article on The ROI site: Rating Your Store From a Shopper's Perspective. See the 25 "retail is detail" items that do matter to shoppers, from Accessibility to Windows (and yes, Bathrooms really do matter.)

Honestly, we don't want to sound like alarmists. However…we are sounding an alarm!

As we all know, prices are rising, consumer confidence is falling, layoffs are rampant, and inflation, particularly with the impending tariffs, is likely to persist.  All of which could combine to drive the economy into a recession. Grim.

Savvy retail owners are starting now to draft new "game plans" for this new economic environment. We want you to be one of the savvy ones. 

For one example of how that can be done, consider the “torrent of adjustments” made by Starbucks' most recent new CEO Brian Niccol. (The company has had four CEO changes in the past five years.) 

Essentially, he has enacted the moves of a classic turnaround plan, one that matches cost-cutting tactics with strategic goals, both quantitative and qualitative. (All without a chainsaw.)

Retailers Are The Perfect Folks For This Job

Seeing Beyond The Fog Of Uncertainty And Tumult