PERSPECTIVES

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• Dealing with Your Landlord? This Is Better Than Begging!

  Let's assume your stores have been closed for weeks now. 

  We recognize how conscientious you are. So, after paying what you can to your employees (and yourself), the next most-worrisome dilemma is your rent.

  • How best to get some immediate relief from each month's lease payment?
  • And you wonder, what would be the best way to negotiate with your landlord?

  As you likely have discovered, a common choice for many landlords is to offer to defer your payments. But that means taking on more debt, as those payments are only being postponed to a later point in time. 
  
  You need a better solution than that.

• 

  What to Expect This Holiday Season...and From Whom?

  "Consumer confidence rises to five month high."

  That headline from Chain Store Age* brings smiles to retailers.
  
  Consumer confidence is a key indicator of retail sales, and this increasing confidence as we head into the holiday season is very welcome indeed. 

  • “Concerns about inflation dissipated further in September—prompted largely by declining prices at the gas pump—and are now at their lowest level since the start of the year,” according to Lynn Franco, senior director of economic indicators at The Conference Board.
     
  • "Looking ahead, the improvement in confidence may bode well for consumer spending in the final months of 2022," added Franco.

  But of course, there is no one-size-fits-all upside here. 

  More Spending on Necessities

• 

  When Up Is Down (Yes, we can explain)

  You've no doubt seen the headlines. "Retail sales slumped in December." 
  
  Sounds pretty grim, doesn't it? Did all those foreboding warnings of supply chain issues, inventory shortages, etcetera actually come true?

  • Keep in mind that the folks trumpeting those slumping sales results are comparing each month's retail sales to the previous month. Sure enough, on that basis it is true that retail sales in December were almost 2% less than they were in November.
     
  • However, if you examine the same numbers the way that retailers do– that is, comparing to the same month the prior year – we see a very different story.
• 

  From Main Street "Survivors", Vital Lessons for Urban Downtowns

  The just-released "2021's Main Street Business Survivor Study" from the Pandenomics series conducted by the PYMNTS.com folks* focuses on the "Main Street Survivors:" those small to medium sized businesses "that have weathered the pandemic's fallout." 

  Vital lessons.
  
  What have these "survivors" done differently than the rest of SMB businesses? Here are the major findings of their study. We think that you'll see many of the survival steps you have taken, or be prompted to adopt some others. 

• 

  Getting in Shape for Musical Chairs?

  The playing field has shifted dramatically under the feet of retailers. 
  
  Merchandise orders placed months ago are now proving to be "too much stuff that consumers no longer want so much of,"  as was reported rather colloquially just 3 days ago.  All this was summed up this way: "Retailers with slower inventory turns might find current conditions especially difficult to navigate." *
  
  Now, look at the chart at the top of the page. Without being dramatic, it may be a lifesaver for your business this year. 

• Final Countdown Has Begun

  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!

  Why? Three main reasons.

  • 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.