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Patricia M. Johnson & Richard F. Outcalt
Retail Strategists and Retail Turnaround Experts
Co-Founders, The Retail Owners Institute® • Business Strata:G®
Think about the prominent characteristics of today's in-store shopping experience:
More "self-service" for the customers (that is, less staff on the floor.)
Reduced in-store merchandise selection; "Just check our website."
Limited in-store knowledgeable staff.
Presumption that the shopper will do product research on their own.
And of course, self check-out by the customer.
Hmm. Are these providing more "convenience" for shoppers? Improving their shopping experience? Or – just shifting the work to them?!
That's why we believe that in retailing today, the real "job growth" is the "job" of being the customer!
Then, in early August, we came across this commentary on social media about self checkout that zeroes in on that transfer of the work to the customer.
Yesterday I went shopping at a store that was exclusively self-checkout. And then, the lady checking receipts at the exit was stopping everyone.
I didn't choose to participate in that nonsense. I had already filled my trolly, emptied my trolly to scan the items, paid for my items, and refilled my trolly.
So I just skipped the exit line, kept walking and when she called out to me, raised the receipt above my head as I was leaving the store.
Why? Five reasons.
I'm not interested in proving that I did your job for you.
If you want me to be a cashier with no training then that's your problem not mine.
You can either trust me to do self-checkout, or you can put your cashiers back in place.
You don’t pay me to scan my own shopping.
You don’t give me a staff discount for working for you.
In other words, this is a customer who feels disrespected. Maybe even a bit of “guilty until proven innocent.”
Meanwhile, the store employee who’s manning the exit has to take the brunt of the resentment.
In today's economy, both retailers and shoppers are under heightened stress and uncertainty. As you introduce new procedures or new technology, be certain that they pass the fundamental test: respect for both the customer and your staff.
You have to give respect to get respect back.
On August 15, the U.S. Commerce Department released the most recent figures for monthly retail sales, with the July 2025 results.
Go here on The ROI site to see the results for your retail sector, and how they compare to 2024 sales for those same 6 months.
Nothing like this anywhere else!
Like all of our tools and resources, The ROI's unique online Inventory Buying (Open-to-Buy) Planners are sophisticated, not complicated. And built especially for busy owners. We've made it easy and fast for retailers to combine both the art and the science of buying.
You need to enter just a few numbers (which you likely already have a good idea about): beginning inventory @cost, expected sales & margin for each month, and planned turns.
Then – boom! – a monthly buying plan. Just like that!
You'll immediately see how much inventory - maximum – to bring in each month to meet your goals.
You will see immediately the targeted ending inventory for each month, the real key number for the owner.
It even shows what the GMROI would be when you meet the goals for sales, margins and turns.
Don't like what you see in a plan? Make some changes, some tweaks! It's easy! Change sales, or margins, or turns. What difference does each of those make?
It all happens automagically.
Nothing to download or install.
All the formulas are built in; you cannot break it.
Want to know more about "the science part" of the art and science of buying?
✅ Check out this article on The ROI site: "Inventory Turnover: Cruise Control For Your Inventory Levels”
Once you have a plan you like, take off your owner's hat for the moment, put on your buyer's hat, and practice the ART of buying!
You now have a budget, some boundaries of how much to buy, and when.
Now you can focus on selecting the very best merchandise and getting the very best terms.
And, as the season goes along, you the owner can keep monitoring how you're doing. Meeting the sales plan? Hitting the ending inventory targets?
If you find that some adjustments are needed, you can compare outcomes in advance before placing any orders. All on your own, in retail time, whenever you need it.
Terrific peace of mind for any owner! Take a closer look here.
Whether sales are up, down or sideways, there are two questions that zero in on the true health of your business:
Will we be able to pay our bills on time?
Is our business getting financially stronger? Or weaker?
This Webinar of the Week by Pat Johnson and Dick Outcalt, Co-Founders of The Retail Owners Institute, will show how you can answer those questions for yourself.
It just takes paying attention to 2 key ratios. And about 12 seconds to calculate each one!
Pat & Dick will identify these 2 key ratios, show why they matter, and explain how you can quickly and confidently calculate them in your own business.
After all, your vendors and lenders are already doing this! (That's why they ask for your financial statements.)
Shouldn't you know what they know??
Every retailer keeps track of sales - daily, weekly and monthly.
But the pros also keep track of transactions the same way.
That way, when sales go up or down, the pros know why.
Change in the number of transactions?
Or change ins the size of each transaction?
Then the next steps become more obvious.
RetailOwner.com
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For retailers, pricing is never an easy task. Finding the sweet spot between growing sales and maintaining margins – while astutely managing turns and cash flow – is not a no brainer.
Then there is today's environment. Consider these recent headlines:
Tariffs have changed summer and holiday shopping in the US. Almost 40% of surveyed consumers spent less on Amazon Prime Day than in years past. — Retail Brew, July 24, 2025.
After Pledging to Keep Prices Low, Amazon Hiked Them on Hundreds of Essentials. Analysis found increases on 1,200 low-cost goods, while competitors such as Walmart made them cheaper —Wall Street Journal, July 20, 2025.
So, shoppers are trying to spend less. But prices are creeping up, no matter what.
The big problem, of course, is how the shoppers are dealing with all this. More uncertainty is NOT what they want or need.
That's why we get particularly concerned when we see stickers such as the one below on items in local grocery stores:
What the fine print reveals – often only at checkout, to the chagrin of employees – is that it is only the THIRD one that is free. This is not a BOGO offer.
Feels a little like a ripoff, doesn't it? A technicality.
Sigh. Should being a shopper require eternal vigilance?
Or, consider this: Which would you buy? 🧐
The 18 pack of 16 ounce cans for $14.99?
Or the 24 pack of 12 ounce cans for $22.69?
This photo of an in-store display was accompanied by the lament: "All I wanted was a beer. And now I have to do math??"
True; high school math teachers applauded this as a great example of needing math in real life. But is confounding the customer really a good approach?
Here's the opportunity for retailers. And it’s especially warranted in today’s environment. Make it more obvious that you are trying to team up with them.
Customers are not your adversary. You’re not trying to take advantage of them.
Make it more clear that your goal is to find the best products at the best price for your best customers. Not to fleece them. Show them some respect!
In today's environment, you need as many loyal, respected customers as you can serve. Don’t you agree?
On July 17, the U.S. Commerce Department released the most recent figures for monthly retail sales, with the June 2025 results. Go here on The ROI site to see the results for your retail sector, and how they compare to 2024 sales for those same 6 months.
Consider a retailer doing one million dollars in annual sales with a 40% gross profit.
If over the course of a year that retailer were to raise inventory turns from 2 to 3...they would raise $100,000 in cash!
Same sales. Same gross margin. Just less inventory on hand soaking up cash.
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