Related Articles

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  Time to Choose, Retailers. And Choose You Must!

  As we approach April of 2021, the question for retailers is "Now what?" Having survived 2020, in many cases on guts and guile, we must now focus on how best to survive 2021 and beyond.
  
  As having one foot on the dock and one foot in the boat, the future of retailers in that Red Zone is not a pretty picture. 
  
  Granted, there is much talk about the expectation that "convenience" will become a major factor for shoppers going forward. And we don't disagree. 

  • Throughout 2020, millions of shoppers – including the older Baby Boomers – discovered the benefits of online shopping. Then, as brick-n-mortar retailers scrambled to survive, the increased availability of delivery, curbside pickup, BOPIS (Buy Online, Pickup In Store) and BORIS (Buy Online, Return In Store) has been well received by a broad swath of consumers. 

  Here's the deal: We see that this has brought heightened awareness of two different retail strategies: Convenience Retailing versus Destination Retailing. 

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  What Digital-First Brands Are Discovering About Physical Retail

  The basic definition of retailing is "selling to the ultimate consumer." 
  
  As you know, HOW that is done, and in what location or format, continues to change and evolve. 
  
  So, we were intrigued by this recent post on the Shopify Retail Blog: The Future of Physical Retail in a Digital-First World.*

  • The "retail digital-first world", of course, is either the "pure play e-commerce retailers," those who sell only online, or the "brands" (what we used to call manufacturers) who have embraced the "DTC model," selling direct-to-consumer. 
     
  • And as you know, Shopify is one of the largest platforms for e-commerce businesses. Definitely a leader of the retail digital-first world.

  To us, the blog post was essentially a wide-ranging journey of discovery(and perhaps even some new-found respect for those "physical retailers".)

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  Retailers are in the driver's seat. Don't squander your clout!

  Yes, we know. Owning a retail business these days is one flexibility test after another. And there are no one-size-fits-all solutions. 
  
  In the United States, one of the most widespread impacts of the virus is uncertainty. With no end in sight. It is the virus that is in charge. As the president of Alaska Airlines noted, "We don't know what the future looks like."*
  
  But the fact remains, whomever is selling to the ultimate consumer has leverage. Might that be you?

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  Retail's Vital Signs: Six Key Financial Benchmarks, 2021–2025 Results

  

  Six Key Retail Financial Benchmarks • 2021–2025 • 40+ Retail Verticals

  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!)

  How Does Your Business Compare? These 6 key financial benchmarks provide important perspective Yes, most everyone’s first stops are Pre-Tax Profit % and Gross Margin %. However, Debt-to-Worth Ratio and Current Ratio are the most significant regarding your financial strength. And here’s the key: Turnover and GMROI help to explain why those four are what they are.

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  Ready or Not, New Retail Clock Is Here

  As the global efforts to "flatten the curve" of the coronavirus pandemic continue, there is another curve that is being flattened. That would be the seasonality of retail sales. 
  
  And this may prove to be what really defines the New Normal for retailers. 
  
  The customary peaks of retail spending have been flattened.

• Which Kind of Retailer Are You?

  Convenience Retailer vs. Destination Retailer: Decision Time

  Throughout the pandemic, millions of shoppers – including the older Baby Boomers – discovered the benefits of online shopping. Then, as brick-n-mortar retailers scrambled to survive, the increased availability of delivery, curbside pickup, BOPIS (Buy Online, Pickup In Store) and BORIS (Buy Online, Return In Store) was well received by a broad swath of consumers. 
  
  We see that this has brought heightened awareness of two different retail strategies: Convenience Retailing versus Destination Retailing. 

  And here's the deal: retailers now must choose either one or the other of those two strategies. You cannot have one foot on the dock and one foot in the boat. You DO have to decide! 

  • That uncertain/undecided middle ground is not a viable choice. 
  • Those who end up there by default – by choosing to not choose  are on their first step to being former retailers!