PERSPECTIVES

• "Consumer confidence rose sharply for a second straight month, hitting the highest level since the pandemic began," according to the Conference Board Consumer Confidence Index. 
   
• "Economists believe that the rising consumer confidence will bolster overall economic growth as consumers, who account for 70% of economic activity, step up their spending as lockdown restrictions are eased." *

This is welcome news for many retailers, as consumer confidence has been a key leading indicator of retail sales.

However, a note of caution: retail sales are not the sole component of consumer spending.

• "As more businesses and cities reopen, consumers will have even more places to spend the savings they've accumulated during the pandemic." **

There's a lot of optimism in the air these days. 

Covid-19 lockdown restrictions are being eased. More people are becoming vaccinated. Upbeat economic news is reported. Unemployment figures are improving. Restaurants are preparing for diners to return. And of course, given that we are now starting to compare sales results to the meltdowns of 2020, dramatic percentage growth is being reported and forecast for the balance of the year.

These positive and optimistic news reports all are very welcome. Retailers are eager to see customers return. 

But what should retailers expect? To brace yourself for the  myriad changes. 

As we know all too well, 2020 was chock full of "disruptions." Every week brought a new flexibility test. And those of course did not go away when the calendar turned. 

For instance, here we are on President's Day Weekend and Valentine's Day Weekend. Raise your hand if you were able to plan and carry out your "traditional" promotional events, let alone do something for your Valentine.

That's what we thought. The usual patterns just don't apply anymore.

Boy, are we ever impressed.

We've known for years that those who are following and/or involved with The Retail Owners Institute^® are resolute, hungry, and determined. But wow! The challenges of the last year have brought out the very best in many of you.

We've heard back some of the most resourceful survival stores that we've ever heard. Here are just a few examples:

It's a new year. And now, another new month. How about a new sense of beginning, a fresh start?

Alas, the coronavirus pandemic continues to prove Dr. Anthony Fauci right:"The virus is in charge."

As you have noticed, all around us there's delay. From Major League Baseball contemplating a month delay, schools and universities very slowly resuming in-person classes, or a decidedly different lineup and focus of Super Bowl advertisers, we have no choice but to continue to be patient. Isn't that the pits?

As Daphne Howard reported*, "Footfall patterns show that getting back to normal requires more than flipping the "open" sign.

There's something in the air. And no, it is not smoke! 

We believe there is a profound feeling of "springtime."

We know; spring officially is still two months away. But that springtime state of mind IS here. And we all should embrace the opportunities it may bring us.

What's the source of this attitude change?

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.

This Holiday season is bringing three big waves for retailers, in rapid succession. And each one requires a strikingly different management response. 

Wave #1 - the High Margin Wave - has begun in earnest, and will continue through Christmas Eve.

Faced with the shipping delays (and surcharges), customers have turned to brick-and-mortar stores. The savvy retailers are ready for them.