Outcalt & Johnson: Retail Strategists, LLC

"On the selling floor, from 11 to 4"

4/12/2021

There's a lot of optimism in the air these days.

Covid-19 lockdown restrictions are being eased. More people are becoming vaccinated. Upbeat economic news is reported. Unemployment figures are improving. Restaurants are preparing for diners to return. And of course, given that we are now starting to compare sales results to the meltdowns of 2020, dramatic percentage growth is being reported and forecast for the balance of the year.

These positive and optimistic news reports all are very welcome. Retailers are eager to see customers return.

But what should retailers expect? To brace yourself for the myriad changes.

Too Sophisticated for "Small Retailers?" Nope!

3/29/2021

How to Turn "Big Picture" Thinking into Strategic Inventory Buying

About a year ago, as the pandemics were beginning to hit their stride, we introduced a framework for retailers to "rethink your merchandise mix."

As depicted in the chart above, we cautioned that once the lockdown was over, as customers resumed shopping, retailers should be prepared for (1) reduced sales totals overall; (2) significantly re-balanced merchandise mixes, initially dominated by "basics/never-outs."

Further, we anticipated that the merchandise mix would continue to change as we re-emerge from the effects of the pandemics. And we urged retailers to take this overall construct and adapt it to their own situation; to develop their own customized strategic response.*

Now, one year later, here's how this can become "news you can use" to quickly produce your Big Picture buying plan. Especially in the spring of 2021, some practical answers to "What to buy?" , "How much?" and "When?" are likely to be very welcome.

Beware the Perils of Exuberance

3/22/2021

Isn't it great? Headlines and the media world seem to be in unison; the dastardly COVID pandemic is being arrested. And, if we can believe the pundits, pent-up shoppers are about to buy all sorts of products and services with abandon.

But, will they?

Given this exuberance, many retailers could be building up excess inventory. To avoid this, retailers once again need to be true merchants. That is, the #1 responsibility of retail senior managements must always be to control inventory. (It's the only thing that makes money, but it soaks up cash.)

Time To Choose, Retailers. And Choose You Must!

3/15/2021

As we approach April of 2021, the question for retailers is "Now what?" Having survived 2020, in many cases on guts and guile, we must now focus on how best to survive 2021 and beyond.

As having one foot on the dock and one foot in the boat, the future of retailers in that Red Zone is not a pretty picture.

Granted, there is much talk about the expectation that "convenience" will become a major factor for shoppers going forward. And we don't disagree.

Throughout 2020, millions of shoppers – including the older Baby Boomers – discovered the benefits of online shopping. Then, as brick-n-mortar retailers scrambled to survive, the increased availability of delivery, curbside pickup, BOPIS (Buy Online, Pickup In Store) and BORIS (Buy Online, Return In Store) has been well received by a broad swath of consumers.

Here's the deal: We see that this has brought heightened awareness of two different retail strategies: Convenience Retailing versus Destination Retailing.

Main Street "Survivors" Offer Proven Strategies for Urban Downtowns

3/8/2021

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.

How to Jump Start Your New "Rhythms of Retail"

2/22/2021

As we noted last week, retailing is being affected by different patterns of seasonality. The old timing patterns for ordering, seasons, and events no longer apply. New "Rhythms of Retail" must be established by all retailers.

So it was with great interest that we read a blog post about Pop-Up Retail: Not Just for Start-Ups.* It featured results from a recent study out of the UK suggesting that "the pop-up retail sector is growing at 12.3% per year. And the U.S. pop-up industry has grown to approximately $10 billion in sales."

The Changing "Rhythms of Retail"

2/15/2021

As we know all too well, 2020 was chock full of "disruptions." Every week brought a new flexibility test. And those of course did not go away when the calendar turned.

For instance, here we are on President's Day Weekend and Valentine's Day Weekend. Raise your hand if you were able to plan and carry out your "traditional" promotional events, let alone do something for your Valentine.

That's what we thought. The usual patterns just don't apply anymore.

Patience. Patience. More Patience. (Drat!)

2/1/2021

It's a new year. And now, another new month. How about a new sense of beginning, a fresh start?

Alas, the coronavirus pandemic continues to prove Dr. Anthony Fauci right:"The virus is in charge."

As you have noticed, all around us there's delay. From Major League Baseball contemplating a month delay, schools and universities very slowly resuming in-person classes, or a decidedly different lineup and focus of Super Bowl advertisers, we have no choice but to continue to be patient. Isn't that the pits?

As Daphne Howard reported*, "Footfall patterns show that getting back to normal requires more than flipping the "open" sign.

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Pandemic Perspectives & More from Retail STRATEGISTS