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Running a retail operation, as you know, is a tough job to do successfully. (The failure rate keeps reminding all of us of that fact.) And now, that job is even harder.
Maybe we're being overly dramatic, but it seems to us that there are two very dark clouds simultaneously coming our way. Consumer confidence is falling while announced tariffs will be raising costs.
We all have to wonder whether consumers are going to hold back discretionary spending even more;
And, at the same time, we must start guessing what impact tariffs might have on our merchandise.
We've not heard of any available consultants, pundits, or fortune tellers that have magic solutions. Alas.
What is called for? Your best judgment, as the owner. Never before has it been needed more immediately.
It's that time of year when all the talk is about all that's new and different for retailers. As the trade show season gets into full swing, there is no shortage of reminders of all the elements you need for your business to "keep up."
We get it. Keeping pace with the relentless changes in retailing is not easy. Retailers know it demands constant adjustments.
But you’re the owner. How well is your business keeping pace with your personal goals and ambitions?
Remember, the point of owning your own business is to make the business work for you! How are you doing so far?
Very likely, you saw this headline today, as we did. “Amazon Announces $56,000,000,000 Profit.” For one quarter. Nice, eh?
The announcement also referred to Amazon as the world’s largest retailer, surpassing Wal-Mart. Again, how nice.
Meanwhile, another headline earlier this week: “Physical Stores Still Vex Amazon.”
Hmm. The “world’s largest retailer” not able to make stores work?! The hypocrisy of boasting about profits, most of which come from Amazon Web Services, not bricks-and-mortar retailing. Moreover, their “online stores” reports 11 times as much volume as their physical stores ($61.4B versus $5.2B.)
Well, if you are Amazon, a little hypocrisy will probably never be noticed. Oh, how nice.
Just in; published last month. The best financial data available! Annual Statement Studies from Risk Management Association for all NAICS industries.
The ROI’s Key Retail Benchmarks Charts are one of the most-used resources of The ROI. And for good reasons!
Presented visually, these compelling five year trend charts reveal how stores in each retail vertical are trending on key financial indicators: profitability; inventory productivity; financial strength.
The prospect of tariffs from 10% to 60% being imposed on goods from Canada, Mexico, China, and other countries by the incoming Trump Administration is certainly contributing to headlines and attention. Another flexibility test for retailers.
Some retailers have seized on the uncertainty that has resulted. They are using the fear of tariff costs leading to higher retail prices to heighten the shoppers' sense of urgency.
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...
Some retailers in this situation essentially freak out. But the pros, like you, know to keep asking questions. Before they decide what to do next to fix lagging sales, they want to know "Why?"
So, rather than guess the answer, here is a way to get to the numbers behind the numbers; to begin to know the "why" of your sales trends, whether they’re falling or rising.
All it takes is tapping into the data that's already in your POS system, and putting together a little summary tally sheet. The point is to get some key data together in one place so you can easily, quickly, and for free, compare and analyze your results.
This shows the average annual pre-tax income (in 2022) and average expenditures, for US total, and by generation.
And this chart shows total US population by generation, by age in 2022.
Granted, everyone in retailing who looks at these two charts from the Collage Group* will conclude something different. Didn’t you?!
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