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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.
It’s very common for retailers to have their fiscal year end be January 31. It’s after the Holiday season, and inventories are generally low.
Likewise, it’s also very common that retailers are taking (or having a service take) physical inventory this weekend or soon thereafter.
As we all know, counting inventory by hand is tedious, boring, expensive and, frankly, no fun at all. However, whether by hand, by barcode, by any method of technology, the inventory count matters, and it matters a lot!
Let’s review the Big Picture for this business doing $700,000 in revenue, with $290,000 in total operating expenses.
Will your sales less your expense goals add up to a profit?
Or are there surprises ahead?
Do you have a way to know throughout the year?
This retailer-friendly calculator lets you project whether your expectations for sales, margins, and expenses will deliver the profit you need.
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 savvy retailers know that now is the time to be putting the finishing touches on being ready for – wait for it – December 26!
This unique time period between December 26 and January 10th is a tremendous make-or-break opportunity. Indeed, many retailers find they net more from this time than any earlier stretch of 15 days!
First, the many opportunities to reduce expenses "back to normal." Less advertising cost. Less staff. Fewer hours.
Second, those people using Gift Certificates, making returns or exchanges are potential new customers. Likely, many of them haven't been in your store before. A great opportunity!
And third, the opportunity to clear out seasonal merchandise, generate cash, and move on to the New Year.
Christmas is two weeks away.
Time to focus on the “science” part, the numbers part, of “the art and science of inventory management.” The march has begun toward a vital, critical touchstone – your 12/31 targeted ending inventory level.
On that date, you must have appropriate inventory levels and mix for the months ahead – plus the cash to pay for it!
This is the moment an “ending inventory enforcer” must step up.
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.
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