PERSPECTIVES

Throughout the pandemics, many independent retailers successfully shed their "technology laggards" label, as they pivoted to embrace an array of digital tools.

Yet going forward, it is well to keep in mind what really matters to the customers. And it may not be more technology.

A recent survey* of more than 2,000 customers provides some interesting insights as to who shops where, why, when and how. It especially highlighted the differences between "large stores" and "smaller stores" (or as we view them, "specialty stores.")

• “The data revealed that 75 percent of consumers shopping at a larger store knew what they wanted before crossing the premises." 
• Those who shop in larger retailers say 'We just want to get in and get out.'”

Hmm. This suggests to us that shoppers essentially are treating large stores the same way they treat the internet:

Ahh yes. Retail IS detail! 

Time to move on from Covid, and get our minds back on retail. Focus on the merchandise. And the customers. And the results. In other words, it's time to put the fun back into retailing!

So, here are a few of The ROI's "attention to detail" reminders that you may want to have at the ready for your next staff meeting. A refreshing change of pace for everybody!
 

We know that retail startups are up, but alas, so too are retail failures; even higher than historical norms. 

Why is this happening?

• Is it Amazon? Or, the pandemic? Or tight money?
• Or supply chain problems? Or not enough good employees? Or Covid fatigue?
• Unable to keep up with competitors? Overly-demanding landlords?
• Downtowns or malls being slow to bring customers back? 
• Or, some combination of factors? Or...? Or...?

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!

"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.

As we emerge from the pandemics, many retailers are eager to grow. (How's that for an understatement?!)

• For some, that simply means having a better year than 2019 (because 2020 was such a disaster), and they relish having survived.
• Others are looking to expand by adding locations, whether by acquisition of existing stores, or taking advantage of vacated retail sites. 
• Still others are focused on expanding their newly-established e-commerce capabilities. 
• And, for some, still other imaginative ways.

Trade shows are opening up with great success and eager buyers. Landlords are eager to fill vacancies, and in many instances, to cut deals. Vendors are eager to quit thinking about supply chain problems and start selling their merchandise, especially at trade shows. Plus, the continued growth and expansion of online wholesale marketplaces makes far more product available to retailers. 

Then there is the access to capital. Lots of money is floating around out there

All in all, it creates an environment of exuberance. "Seize the opportunity" is the rallying cry. Indeed, for some retailers, FOMO – that Fear Of Missing Out – is pushing them to make some major decisions. 

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. 

• Not only are the owners exhausted from dealing with 2020, but so too are your employees.
• What took the greatest toll? All the uncertainty for everybody.
• Plus, many folks are revisiting their priorities: what is it really worth to them to work in retail? Especially given other choices they have become aware of.

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.

Many times during 2020 we spoke of "disruption with a capital D!"

And now, more than a third of the way through 2021, that Disruption with a capital D shows no signs of abating. Instead, it just keeps morphing (not unlike the Covid strains that keep emerging....) 

But the disruption that we see emerging is in the attitude,  deportment, and psyche of Millennials, and the many people who are now acting like Millennials. This is showing up in the attitude of shoppers as well as employees. 
 

• "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." **