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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®
Ahh, springtime! A time for new beginnings, fresh starts.
Spring also is a time for "Spring Cleaning" – that time of year to spruce up, clean up, fix up. Sigh! Another chore.
This year, here's how to break out of that another-to-do-task rut. It starts by seeing your stores the way your shoppers see them. Then, with that awareness, the spruce up, clean up, fix up tasks can actually focus on attracting and appealing to your very best customers.
And we have the (free!) tools to make all this happen. But be ready: surprises and new insights will emerge.
First, check out this article on The ROI site: Rating Your Store From a Shopper's Perspective. See the 25 "retail is detail" items that do matter to shoppers, from Accessibility to Windows (and yes, Bathrooms really do matter.)
Then, use The ROI's Store Rater tool (either on paper or online) to rate your store, to give it a grade (just like shoppers do every day!)
Then - and this is the key – see what the Tally Sheet shows as the 25 items are regrouped into 5 major categories: - First Impressions - The Basics - Merchandise - Marketing - Theater of Retail.
At a glance, see which categories are particularly strong, and which, if any, need more attention right now.
Plus, it's easy to involve your staff, which can motivate them all the more as they are part of "why?" certain things need to change.
Nothing like some Springtime fresh perspective, is there?
You – and your shoppers – will be delighted with the results.
The most recent monthly sales trends for all major retail and restaurant sectors were released on March 17. The ROI posts charts showing how each month’s results compare to the same month the prior year. Another great resource for perspective for retailers. Go here to compare your results.
Let’s take a break from the drama of the business and economic news, and its uncontrollables. Let’s get our minds back on retail. Focus on the merchandise. And the customers. And the results.
In other words, it's time to put the fun back into retailing!
So, here are a few of The ROI's "attention to detail" reminders that you may want to have at the ready for your next staff meeting. A refreshing change of pace for everybody!
Music is a great way to create an inviting atmosphere in your store. But be careful – music should always be selected to appeal to the customer, not the staff.
First-time customers have no idea what to expect when they walk into your store. Look out. If you offer only price-and-item information, you may lose those first timers. Instead, take advantage of graphics and signage to educate about your merchandise, and to persuade why your store should be preferred.
Customers naturally gravitate toward new merchandise.
Take advantage of that tendency; pair older merchandise with new arrivals!
More than one-third of the retail businesses that fail are profitable(!)
However, they ran out of cash as their creditors ran out of patience. As the owner, focus on cash flow as much or more than sales and profits.
The best displays are those that actually sell the merchandise.
Even right off of the display! You are not running a museum (are you?)
For retailers, the name of the game is inventory turnover.
Higher is better.
Studies show that only 20% of customers are true price hounds who always chase the lowest price.
The other 80% care more about what else your store offers. What value can you deliver to these folks? Don't let that fickle 20% distract you.
Look at your sales results from a variety of productivity measures.
Besides total sales volume, monitor total number of transactions and items per transactions, both for your total operation as well as by category.
The best time to take markdowns is just before the sales peak, not just after.
While your past sales records will be indicators, there are new post-pandemic patterns emerging. Keep this tell-tale sign in mind: when your suppliers start offering deals, it's time to start cutting prices!
The Retail Owners Institute is here to remind you that a retailer's assets are not limited just to those listed on the Balance Sheet. In fact, every retailer has THREE kinds of assets.
And, unlike the economy, which no one retailer can control, all three kinds of assets are manageable variables in your business!
Moreover, those retailers who understand this, and then shrewdly marshal and manage all three kinds of assets can:
improve their financial strength
improve their staying power
And, give themselves choices!
Get free access to this lively session, 24/7, all week long, only at The ROI. This is not the time to be sitting on your assets!
Could this be you?
Consider a retailer doing one million dollars in annual sales with a 40% gross profit.
If that retailer were to raise inventory turns from 2 to 3...they would raise $100,000 in cash!
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Honestly, we don't want to sound like alarmists. However…we are sounding an alarm!
As we all know, prices are rising, consumer confidence is falling, layoffs are rampant, and inflation, particularly with the impending tariffs, is likely to persist. All of which could combine to drive the economy into a recession. Grim.
Savvy retail owners are starting now to draft new "game plans" for this new economic environment. We want you to be one of the savvy ones.
For one example of how that can be done, consider the “torrent of adjustments” made by Starbucks' most recent new CEO Brian Niccol. (The company has had four CEO changes in the past five years.)
Essentially, he has enacted the moves of a classic turnaround plan, one that matches cost-cutting tactics with strategic goals, both quantitative and qualitative. (All without a chainsaw.)
Identify the problem "Niccol arrived to Starbucks with a clear sense of what ails the chain, that as it has worked to court more and more mobile and drive-thru customers, it has lost its sense of purpose and what originally led consumers to the chain—that coffee shop feel." *
Develop a strategy that addresses the problem "Retailers often reduce the inventory of slower-moving merchandise, and Starbucks is doing the same thing in an attempt to improve operations, reduce wait times, and improve profit margins."**
Roll out the action plan
On the job for six months, Niccol has certainly impressed Wall Street with his action plan. As recounted in The Wall Street Journal,*** Niccol boldly
has cut 13 drinks from the US menu
has a goal for 4 minutes for delivery of most drinks
has made 9 changes among top executives
and he has cut 1100 Starbucks corporate jobs
We're suggesting that, whether you have 3 employees or 3,000, you prepare a contingency plan just as bold – and balanced – as Starbucks.
When the seas get rough, it's a good time to already have a good compass for the way forward.
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* Jonathan Maze, "Starbucks is rethinking its coffee shops. Restaurant Business, March 12, 2025.
** Shelley E. Kohan, "How Starbucks Is Working To Revive The Brand", Forbes, March 3, 2025.
*** Heather Haddon, “Starbucks’s Overhaul By The Numbers." The Wall Street Journal, March 13, 2025
Are you still counting on your bookkeeper or your accountant to let you know which months you are going to be short of cash?
Actually, that is terribly unfair to them.
Remember, bookkeepers and accountants are trained historians. They can tell you to the penny what happened in the past.
But, to expect them to give you advance warning of the ups and downs of your cash flow is not only outside their comfort zone, it is not their responsibility.
That is the owner's responsibility!
Which is exactly why The ROI has built so many online projecting calculators for retail owners. And our 3-in-1 Integrated Calculator makes quick work of knowing in advance what your monthly cash surplus - or shortfall - would be!
Do yourself - and your accountant - a big favor. Take a few minutes to see where your business is headed.
Even better, if you don't like where you're headed, you can play "what if...?" Make changes to sales. Or margins. Or expenses. Or turns. See what difference each one makes. On the spot.
Nobody else has to see. Tweak it until you have a combination that would produce the outcome you want. Then, manage your business to that plan. (And sleep better at night!)
The price is right. And available only from The ROI.
Is Bigger Better? Or Is Better Better?
The ROI is determined to "level the playing field" for independent retailers.
Knowledge is power!
Bigger isn't necessarily better; better is better!
The Retail Owners Institute® has been empowering retailers since 1999 to "Turn on their financial headlights!" Our tools and resources are trusted by thousands of store owners to help grow profitable, resilient businesses.