PERSPECTIVES

From The Co-Founders

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Tips, Tactics & Strategic Insights and Commentary
from The ROI Co-Founders, Pat Johnson and Dick Outcalt
Outcalt & Johnson: Retail Strategists LLC; Retail Turnaround Experts

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Lessons From The World Cup

 

Have you caught World Cup fever? It's certainly on the rise near us, and reminded us of this explanation of the midfielder's position on a soccer team: 

"The midfielder is the position where you are always trying to regain position."

Sounds a lot like owning a retail business, doesn't it? Especially in today's business environment. Consider this*:

  • The National Federation of Independent Business reported in May its lowest measure of economic expectations since Mr. Trump was elected to his second term.

  • The Bank of America Institute reported that small-business profitability in April grew at its slowest pace in two years.

  • Businesses with fewer than 10 workers have broadly been shedding employees for much of the past five years, according to data from QuickBooks, the accounting software company.

  • Even as large corporations are posting solid earnings and the stock market is booming, small-business sentiment has plummeted in recent months. Some owners – maybe you? – report they have had to use their personal savings to pay workers because the company’s cash flow was so tight.

Pretty grim, isn't it?

That's why owners must be like soccer midfielders, always needing to adjust and regain position. 

Here's a quick overview of how to do that.

  • Pay attention to what your customers are showing you.
    Use those POS reports! Then, adjust and update your assumptions about sales going forward (likely revising down.) Similarly, reconsider and revise gross margin expectations. (Note customer behavior again.) 

  • Next, focus on the most likely hiding place of cash: your inventory.
    Commit to raising turns. Take sharper markdowns, sooner. Make room for fresher merchandise. Enforce the buying budget, with particular emphasis on the targeted ending inventory each month.

  • Ask your front line staff for ideas on cost savings.
    These tweaks won't have the same impact on cash flow as inventory improvements, but they can make it easier for your people to be successful at their jobs. And improve morale during uncertain times. 

Like soccer, retailing is in constant motion, demanding stamina and strategy. 

It also rewards a readiness to seize opportunities. So be ready! Goooooal!!

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*"The U.S. Economy Is Leaving These Companies Behind," Sydney Ember, The New York Times, June 17, 2026.



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