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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.
As we write this, frankly, we are comforted in knowing that anybody who subscribes to The Retail Owners Institute has access to all of our 6 - 10 calculators that have been built precisely for moments like this, and others that are on the horizon.
Much better than just wringing your hands!
Instead of just wondering and guessing, these calculators show actual dollar projections of your “What if…?” thinking. Powerful for testing your assumptions and prompting new ideas. It’s dynamic.
Here's just one example of how to deal with those two dark clouds. Use The ROI’s P&L Forecaster to take a new look ahead to the next 12 months (easily and inexpensively.)
Let's quickly get to a first draft for the next 12 months. For instance, put in sales 10% less than you thought before, margins maybe 5% less than you had thought, expenses 15-20% less.
Would you still have a profit? Maybe not on your first draft. Or maybe it looks better than you expected!?
In either case, keep playing "What if...?" What combination of sales, margins, and expenses COULD lead to a profit?
(BTW, call us or set up a Zoom session if you think we can be of any help)
Working under and through these two very dark clouds can be managed. Just "Turn on your financial headlights!"
As the Holiday Season approaches, finding good help promises to be especially challenging for retailers this year. Then, we read "10 Things to Know to Get And Keep Retail Jobs," a to-the-point commentary from Bob Phibbs*, who specializes in retail sales training. Here are his Top Ten recommendations for prospective retail employees:
Alas, there is really no way to avoid discussing COVID-19, the coronavirus that began in China last month, and now continues to spread throughout the world. No matter whether or when it is officially declared a "pandemic," the uncertainty and angst that it is generating have troubling implications for retailers.
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.
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.
Undoubtedly you'll agree with this. We read and hear a lot in the business press, but we treat 100% of it rather skeptically. And so it is with articles and commentary about this coming Holiday Season, specifically about retailers' inventory and margins. Nevertheless, there is considerable good news being trumpeted. Most recently, this feature article in the Wall Street Journal: "Retailers Hone Inventory for Holidays" *
Your results are likely to be consistent with these patterns.
ICYMI. You know, that's the shorthand for In Case You Missed It. And in fact, we had missed this.
As reported by Chain Store Age*, "The Conference Board’s Consumer Confidence Index rose slightly to 107.2 in March, up from 105.7 in February. It was the first time the metric has increased in three months." Wow! Is that ever a stray ray of sunshine! We always look to Consumer Confidence levels as a leading indicator for retailers.
Incredible value! 👀
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