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As we introduced previously, the New Normal for retailers is already here. It is a new "retail clock."
Of course, it is not just retailers who have been affected; the shoppers also have been adapting. But whereas retailers think in terms of seasons (weeks and months), the shoppers are adjusting their patterns at the daily and weekly level.
Meanwhile, other shopping is occurring mid-week, as people have the "found time" of not commuting. They also have discovered retailers closer to their homes (and possibly with parking right in front of the store.) Have you noticed these trends in your retail operation?
As retailers compare daily sales to last year, the transactions and dollar volume on weekends may be down. But, what has happened to the weekdays?
Once again, it is a flexibility test. But that is nothing new for 2020, is it?? The New Normal is being defined by this flattening of the retail clock. The whole notion of what constitutes "retail time," retail seasons, and shopping days is changing. And what has driven this? Yes, the customers. Getting what they want when they want it is a priority for today's shoppers.
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.
Here's a post-pandemic strategy that should not be missed: higher margins! Not the entire store, of course; you must be a merchant here. But think about it: many shoppers have increased savings, reduced debt, or gotten their job back. Maybe all three. And after months of being at home, and spending on home improvement and groceries, many shoppers have pent-up demand to spend on items they have had to postpone, like for themselves. Whether that would be in a restaurant or in a specialty store, shoppers are more willing and able to spend. (And some even feel entitled to spend.)
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 40+ retail verticals are trending on key financial indicators:
profitability
inventory productivity
financial strength.
As you compare your results to these industry results, you can quickly identify areas of strength as well as opportunities for improvement. (Or in other words, you can be your own consultant!)
There are three "pandemics" assailing us at the moment: the coronavirus; the economic collapse; the protests of racial injustice. The three months plus of stay at home restrictions and the shutdowns, and the confluence of these three pandemics has been a heavy burden. And it shows no signs of going away anytime soon. As the coronavirus continues to spread and surge (Apple re-closing 11 stores they had recently re-opened is a sobering reminder), the uncertainty and anxiety is only being prolonged.
That message is emblazoned – in sunshine colors - in the windows of Nordstrom's flagship store in downtown Seattle. And yes, on a drizzly January day in Seattle, it was a welcome sight this morning. A nice pep talk for us all. And a fitting message to follow our reflections on the year we just experienced. Since March 2 of 2020, our From The Co-Founders commentary has been focused on the pandemics. Revisiting those was quite the "year in review" experience.*
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