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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®
When you’re running a store, your days are already packed with ringing sales, juggling vendors, calming staff, and keeping the lights on.
That’s why so many independent retailers have been slow to jump on past waves of technology — e-commerce platforms, fancy POS systems, or social media dashboards. The tools were costly, fiddly, and frankly, not built for stores like yours.
But here comes AI. Might this wave be different?
It’s accessible. No IT department needed; a curious owner can try it on their laptop tonight.
It’s fast. From drafting an email to analyzing last month’s numbers, AI can take the drudgery out of tasks that bog you down.
It’s (relatively) cheap. Many AI tools cost less per month than a case of shopping bags.
Does that mean AI is the magic bullet for retailers? Of course not. Skepticism is still your best friend. But this time, the technology may be close enough to the ground to actually help.
1. Customer Communication
Pro: AI chatbots never sleep. They can answer routine questions (“What time do you close?” “Do you have gift cards?”) instantly, freeing up staff for in-store customers. AI can also draft polite, consistent replies to customer emails.
Con: Customers can tell when it’s a robot. If the answer feels canned or irrelevant, trust erodes. In retail, warmth and personality still matter — AI can’t give a smile or remember that Mrs. Jones always buys the red candles.
2. Marketing Content & Promotions
Pro: Need a fresh Instagram caption, a catchy email subject line, or a quick promo idea for a rainy weekend? AI can churn out options in seconds. A real time-saver, especially for owners who dread writing.
Con:Left on its own, AI marketing feels generic. It doesn’t know your store’s personality. You still need to edit so it sounds like you. Otherwise, you’re just adding to the digital clutter.
3. Staff Training & Productivity Tools
Pro: AI can draft employee manuals, generate quiz questions for training, or even explain policies in plain English (or Spanish). Great for streamlining onboarding or keeping the team on the same page.
Con: Over-reliance on AI for training can flatten culture. New hires need to see your standards in action, not just read them on a screen. AI is the assistant, not the manager.
So, you’re curious, but cautious. Good — you should be both. Here’s how to start smart, without letting the robots run your store.
1. Start Small and Cheap
Forget the big “enterprise” systems. You don’t need them. Begin with free or low-cost tools you can try in a browser. Many AI platforms offer free plans or trials. Think of it like test-driving a car — no commitment, just getting the feel.
Pro tip: Start with something you already do — emails, social posts, a product description — and see how AI can speed it up.
2. Keep It Close to Home
The best first uses of AI are the ones that save you time on the boring stuff. For most owners, that means:
Drafting customer emails or social captions.
Summarizing sales reports into plain English.
Writing a first draft of staff policies or job postings.
If it cuts down on chores, you’ll feel the value right away.
3. Always Edit for Your Voice
AI is fast, but it’s generic. Left alone, it sounds like every other ad on the internet. The trick? Treat AI’s draft as your rough first cut. Then, add your humor, your personality, your store’s flavor. That’s what customers come to you for — not robot copy.
4. Watch Out for “Runaway Algorithms”
AI loves to draw straight lines into the future. A sudden sales spike? It assumes it will last forever. A slow week? It thinks your business is doomed. Remember toilet paper hoarding during COVID? An unsupervised AI would still be restocking pallets a year later.
Bottom line: use AI to spot patterns, but keep your judgment in charge.
5. Make It a Helper, Not a Boss
AI is like a bright but green intern: fast, available 24/7, and surprisingly capable — but it doesn’t know your customers or your instincts. Let it help with the grunt work, but never hand it the keys.
6. Keep Score for Yourself
Try AI on one or two tasks for a month. Did it save you an hour a week? Did it make marketing less painful? If yes, keep it. If not, drop it. No guilt, no sunk costs.
AI is not magic. But for independent retailers, it can be a useful assistant — if you start small, keep your hands on the wheel, and use your own judgment.
So, where do you start? Pick one everyday chore that eats your time, and let AI take the first pass. Then edit it, own it, and see if it’s worth keeping around.
👀 Please Note: The From The Co-Founders commentary above was NOT written by us. It’s the work of our “AI Buddy.” (That’s how we refer to our free ChatGPT account.)
We started by asking him to address the pros and cons of AI for independent retail owners. After some back-and-forth with him, we asked for an “Okay, where and how do I start?” guide.
AI Buddy was eager and obliging. And always asking “Do you want me to do this next?” Yes, AI can certainly draw one in.
We’re continuing to explore AI, and encourage you to do the same.
And yes, as always with leading-edge technology, apply your best judgment! 🤔🧐
You know this all too well.
The typical accounting package lists expenses in alphabetical order. From Advertising, to Auto Expenses, then Bank Charges, and so on.
Lines and lines of separate expense items, all detailed to the penny.
How useful is that?! Is this designed to inform? Or, to confuse and confound? No wonder few retailers will spend much "quality time" with their financial statements.
But, there IS a simple trick that will let you make sense of all that data. At The ROI, we call this process the PROFIT Finder: Re-organize the individual expenses on your P&L into 5 "buckets" of expenses. (We even have a free “Bucketizer” to help you do that quickly.)
Face it. Standard P&Ls are organized basically for preparing tax returns. (How often is that done? Once a year?)
👉 It’s time to turn that data into useful information you can use for management decisions. You know, the kinds of informed decisions needed monthly, weekly, sometimes daily.
We’ve made it free for everyone to use. No excuses; let’s get cracking!
Accountants • Bookkeepers • CPAs
Unlock proven, approachable advisory process 30-Day Strata:G® Fast Track
BusinessStrata-G.com
Turns out, that question actually stumps some retailers.
They don't realize that they can know the answer, in advance. And frankly, they should know that answer, when they still have the lead time to make appropriate adjustments!
Why are some retailers still plagued by this amateurism?
Some retailers lack the knowledge, or confidence, that they can manage and control their own profitability.
Others think it is something their accountant, or bookkeeper, or CFO is supposed to do. (But those folks are trained historians; we're talking about the future here. Your future!)
In this lively Webinar of the Week, Pat Johnson and Dick Outcalt, Co-Founders of The ROI, show how any retailer can know in advance whether it looks like they will be profitable, or likely headed for a loss.
Plus, see how The ROI's online PROFITS Forecaster lets you do your own "What would happen if I...?" projections - and on-going adjustments - in just minutes. Anytime you want, 24/7.
Even better, with its built-in TREND TRACKER, you can easily monitor your progress each month.
It's time to say goodbye to amateurism! And The ROI has the resources for you to do just that.
In The ROI’s view, GMROI – Gross Margin Return on Inventory (Investment) – is the #1 productivity tool in retailing. It measures how many gross margin dollars are generated for each dollar invested in inventory.
How best to use it? Three quick steps:
Array departments, or vendors, or classifications of inventory by GMROI (Yes, you want to compare.)
Spot the laggards.
Give them the attention they need (or show them the door!)
That's why the real pros in retailing are experts in GMROI. It’s actually a unique time-management tool for retailers.
RetailOwner.com
Avoid mistakes • Seize opportunities • Look ahead now
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.
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.