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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®
As we approach the final week before Christmas, the last shopping weekend; amidst…
All the volatility, uncertainty surrounding tariffs, inflation, etc.
Concerns about merchandise availability
Mixed messages about the shoppers and their intentions, whether Millennials, Gen X, Boomers
The bifurcated economy - Wall Street versus Main Street
The "K-shaped recovery" - those doing well doing better; those doing not so well doing, well, not so well
Amidst all of that, we believe the appropriate answer to "How are you doing?" always will be based on your definition of "What constitutes success?"
Think you’ve never documented that? Think again.
We encourage a quiet moment of reflection, back to the time when you were first dreaming about owning your own store.
You were not alone!
In fact, each year in the United States, about 100,000 new stores start up. Every hour, every day, 11 new retail businesses switch on the Now Open! sign for the first time!
Who are these new retailers? People just like you.
They love the products, or the customers who buy those products.
They want to be their own boss.
They're willing to take risks.
They want to contribute to their community.
They are creative, have a vision for new ways of doing things.
They're not afraid of hard work.
They like being around people - the people who work for them, the customers, the suppliers, their neighboring merchants.
Whatever differences there might be, there is a shared experience: they all Dreamed the Dream!
Now, fast forward a few years. Living the dream is not easy. We appreciate that.
But especially this year, when there is seemingly no consensus about anything, it is more crucial than ever to remind yourself "What constitutes success?"
That starts by revisiting your dream.
Then, take a look around your stores. See the experience you’ve created. The merchandise you feature. See the people on your staff. The customers. Your neighboring merchants.
So, how are you doing this year? Our guess is you have much to be proud of.
Have a wonderful Holiday Season, and may 2026 be full of wonder and joy.
Hope is always in style!
When it comes to managing inventory, every retailer faces these dilemmas:
Not too much
Not too little
Not too old
Not too narrow
Not too deep
Not too pricey
Not too cheap
In other words, it MUST be "Just right!" (Where IS Goldilocks when we need her??)
We're not talking about the ART of buying: the taste and judgment that goes into selecting the merchandise.
The more fundamental issue is the "SCIENCE" of buying, the quantitative part. And for that, you need a basic budget for how much inventory to bring in, and when. (What some call an Open-to-Buy plan.)
Open-to-Buys now can be done online, by you, from anywhere, in minutes! Automagically!*
And that's why The ROI can insist so boldly, “Control your inventory buys – or get out of retailing!"
Watch this lively, insightful and free Webinar of the Week, led by Pat Johnson & Dick Outcalt, Co-Founders of The Retail Owners Institute.
See how turns are like cruise control for inventory levels.
See how The ROI's online SPEEDY Multi-Department Open-to-Buy Calculator empowers you to do buying plans whenever you need them, all on your own.
And meet the Buyers Tally Sheet; don't go to market without it!
Take advantage of this powerful session. And be sure to encourage all of your buyers to take advantage as well
Why Wait? Try It Now!
Set – and enforce! – those boundaries on your inventory buying.
Raise your inventory turnover, then get ready to watch your cash flow improve!
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*Unlimited access for ROI Members to Multi-Department Open-to-Buy Planner. (Not a Member yet? Let’s fix that. Go here to get Member Access to the entirety of The ROI now.)
"How are sales?" is always one of the key questions among retailers. And the preferred response? "We beat last year!"
Now, thanks to The ROI, you can have even more perspective.
We make it easy to compare your results to other retailers in your retail sector. Go here on The ROI site to see the quick reference trend charts.
At a glance, find out...
Are you outperforming the retailers in your sector?
Seeing the same trends for the trailing 6 months?
Or...??
*Reports from the government are still lagging; latest numbers are for October sales.
Technology never can replace judgment.
"Artificial intelligence," "machine learning," and all the latest algorithms can save time. And accomplish more analysis than could otherwise be done. But replace judgment?!
However, like The ROI's financial projecting resources, appropriate technology sure can inform a retailer's judgment!
Schedule a free Zoom session with the Co-Founders.
RetailOwner.com
Avoid mistakes • Seize opportunities • Look ahead now
The fanfare surrounding Artificial Intelligence can be reminiscent of breathless advertisements for do-everything kitchen gadgets: "But wait! There's more!!"
Amidst all that, we were intrigued to read about Scott Tannen*, the CEO and co-founder of the luxury bedding and home brand Boll & Branch. The company launched in 2014 as an online-only direct-to-consumer brand.
"When we first started the business, I don't think we ever envisioned having any physical stores whatsoever," said Tannen. Then, in 2018, they opened their first permanent store. "We saw this massive performance change in the business, because customers could touch and feel the products," Tannen discovered.
So Boll & Branch added more stores, and recently has turbo-charged their brick-and-mortar strategy. In just the past year, they have grown from 8 stores to 15.
But here’s what captivated us: how they decide on store locations.
They use Zillow.
Yes, Zillow. Tannen spends time examining the residential housing markets in prospective store locations.
Why? They're looking beyond household income.
Yes, their best customers have high incomes. More important, they have homes with lots of bedrooms.
“Even if they have more money in New York City, they’ve got more bedrooms in areas that have homes,” Tannen said. “So when we get to a slightly more suburban area, the customer that becomes a believer—their potential lifetime value increases exponentially.”
“If you look across our store mix, you’re going to start seeing a trend. We are in Birmingham, Alabama—very large houses relative to their market size. We’re not in downtown Chicago; we’re out in the western suburbs.”
Tannen admits that he spends a lot of time on Zillow to scout out new store locations. “Zillow is my favorite sport, actually.” Seems like he has not handed that off to AI.
Let’s be clear; AI is not to be dismissed. In fact, it no doubt powers Zillow!
But the savvy and judgment of an owner is not to be dismissed, either.
We find it rather inspiring.
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*"Why Boll & Branch’s Scott Tannen obsesses over Zillow to choose store locations." Andrew Adam Newman, Retail Brew, November 3, 2025
We have been too. The latest reported results are for August 2025.
Here is the statement from “An official website of the United States government”:
The U.S. Census Bureau is updating its economic indicator release calendar in coordination with other agencies and the Office of Management and Budget to address the impacts of the recent lapse in federal funding. We will provide the updated release schedule as soon as it becomes available.
It’s not just the shutdown that is causing the delay. It is the “lapse in federal funding.” No indication of if/when that funding will be restored.
Here’s another truism:
What’s the best way to increase sales and profits?
Sell more to your “best” types of customers!
And today, it is not enough to have profitable products. Instead, we must find—and nurture—our most profitable customers.
The eighty/twenty rule of thumb is no doubt at work in your store: eighty percent of the volume is generated by twenty percent of the customers. (Of course, these percentages are not exact, but you see the point.)
The more you know about that “twenty percent,” the better you will become at focusing your entire operation—buying, displays, advertising, special events, etc.—on your “Best Customer” and her preferences.
Your POS system may tell you "What's selling?"
Your Customer Relationship Program may tell you "Who's buying?"
And now, The ROI has developed a 3-step process you can readily use in your own stores– free! – to answer the essential question: "Who's buying what's selling?"
The goal here is to identify the general, overall characteristics of your Best Customer. Once you know these characteristics, you can seek out more like them. Think of it as cloning your Best Customer!
The Retail Owners Institute® has been empowering owners since 1999 to "Turn on their financial headlights!" Our tools and resources are trusted by thousands of independent owners to help grow financially stronger and resilient businesses.