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Time to Showcase Good Business Citizenship

8/15/2023

Guess what: Your shoppers would love to know you better!

We hear it over and over. "Good business citizenship" matters to shoppers.Especially for retailers, who are quasi-public figures in their communities. (AND in a goldfish bowl.)

Customers vote with their feet, their wallets, and their hearts, and increasingly choose those retailers who "do the right thing", whether it's how they source product, hire and pay employees, reduce environmental impacts, etc.

There are things that independent retailers do day in and day out, without perhaps even realizing how special they are!

Most retailers we know are "aw shucks" type people. It's charming, but, especially in today's world, your leadership can be a competitive edge! So, why keep it a secret?

Many of you are using social media to promote sales events, new product arrivals, etc. Why stop there?

Social media – and your website – is the perfect place to share examples of the values that drive your business. And face it; those values may be too scarce today. They need to be featured!

Help Bank Lenders Get to "Yes"

5/15/2023

New Approach for Loan Requests
Maddening? Maybe, But...

In today's financial climate, how in the world can independent retailers (that's the 92% that are not publicly traded) get financing?

In most cases banks are not lending (even as they run ads proclaiming their "support for small businesses.") Landlords aren't more lenient, nor are many vendors. Even mothers-in-law are asking tougher questions!

So, what should a retail owner do? Just give up on the idea of getting financing?

Or, worse, accept the cash offers from vendors, payment processors, or POS providers who take their "payments" right off the top of your daily sales?

Well, it is maddening, but The ROI recommends an easy exercise that may be of great help.

In Retail, WHO'S Job Is Growing?

5/8/2023

Think about the prominent characteristics of today's shopping experience:

More "self-service" for the customers (that is, less staff on the floor.)
Self check-out by the customer.
Reduced in-store merchandise selection; "Just check our website."
Limited in-store signage or knowledgeable staff.
Presumptions that customers will search online for product information, reviews, etc.
Automated, "menu-driven" phone systems replacing "real people."

Hmm.

Are these providing more "convenience" for shoppers?
Improving their shopping experience?
Or – just shifting the work to them?!

Convenience vs. Destination Retailer: Decision Time

5/1/2023

Throughout the pandemic, 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) was well received by a broad swath of consumers.

We see that this has brought heightened awareness of two different retail strategies: Convenience Retailing versus Destination Retailing.

And here's the deal: retailers now must choose either one or the other of those two strategies. You cannot have one foot on the dock and one foot in the boat. You DO have to decide!

That uncertain/undecided middle ground is not a viable choice.
Those who end up there by default – by choosing to not choose are on their first step to being former retailers!

But, we must take exception...

4/24/2023

We're sure you'll agree. Misinformation can be very harmful. Retailers surely don't need more harmful anythings!

Just last week, we came across the proverbial straw that broke the camel's back. It was a post on the Intuit Quickbooks site*, titled "Inventory Turnover Ratio." And the explanatory article was accompanied by an "Inventory Turnover Calculator."

What do we take exception to? The misleading and/or incorrect information it provides. For example, their "Inventory turnover calculator" requires two entries.

First, "enter the total costs involved in selling your products."

We must take exception. "Total costs involved in selling your products" is NOT the same as Cost of Goods Sold. Nor do they specify that it should be for a 12-month period of time.

The second entry they request: "Average inventory cost."

We must take exception. What they surely meant to say is inventory @cost.

Plus, they simply refer to "12 months of ending inventory balances," without specifying that it should be for the same 12 months for the previous entry.

Only the Beginning
Turns out, this is only the beginning of the misleading information.

Who's Buying What's Selling – And Where?!

4/17/2023

It's a given that your sales volume is a very big deal. Granted, you are analyzing it every day. But here's a slightly different approach which you may find very revealing.

Let's start with a couple truisms. The definition of retailing is “selling to the ultimate consumer.”

Retailing also is having "the right product at the right price at the right place at the right time for the right customer."

But, as retailers ponder how best to manage sales in the current consumer environment, does it really matter whether their "right customers" buy from them in-store or online?

Actually, it might! And here’s a simple, free "pilot project" to find out a little more.

"So, how was your first quarter?"

4/10/2023

Ahh yes, yet another flexibility test. The first quarter of 2023 was full of some major events, nationally and internationally, that disrupted many business plans.

As you contemplate where you are now with your retail operation, compared to where you intended to be, don't despair!

Even more important, just like you do with the GPS system in your car, disregard "returning to the prescribed route."

This is retail, after all. Change is the name of the game!

Retailing vs Ikea Furniture Assembly

4/3/2023

Successfully "doing retail" has always been a challenging and fascinating and evolving exercise. As the old Chinese proverb states, “It’s easy to open a store. However, it’s tough to keep it open.”

And today, seemingly more than ever, third party organizations, more than individual entrepreneurs, seem to be drawn to retailing. Consider:

Vendors and manufacturers who decided that they would rather open their own stores than continuing to deal with “failing” retailers. It would be so much easier.
Online-only operators choosing to offer customers a hands-on experience with their product. (And then, those pesky customers were in their stores, but "Just looking, thank you." Who knew?)

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Tips, Tactics & Insights from Retail Strategists