Category: Financial Strength

Vital Formula for Every Retailer

11/29/2021

Be strategic: All you need is a pencil

The #1 responsibility of every retailer is to manage and control the inventory. By doing that, you are managing margin, profit, cash flow...also known as success!

Managing inventory demands a merger of art – the selection of merchandise – and science – the quantity of merchandise at any given time.

And here is a formula that makes the science part accessible for every retailer. All you need is a pencil to do this (remember those?) And it can and should be embraced by every retailer!

Failure; It's Just Sickening

11/1/2021

Maybe you are aware of this. We sure are!

Way too many retailers are just fumbling along, paying everybody else but not themselves.

Worse yet, way too many retailers are failing, going bankrupt, even in these "good" times for the economy. And when a business fails, it affects a host of people and entities.

Not only do employees lose their jobs, and landlords lose a tenant, and suppliers lose a customer, and a community loses a retailer...the owner(s) oftentimes lose their house, car, savings, everything. Failure is sickening.

We See a Train Wreck Coming; Do You?

10/18/2021

What a scenario. Shoppers buying vigorously, retailers joyously raising sales expectations, and many more anxious lenders offering "cash in 24 hours!" to business owners.

Wow! Are these the good times, or what?

Forgive us, but today we're focusing on the "or what?" aspect.

Now who's the "technology laggard?"

6/28/2021

For some time, conventional wisdom has characterized independent retailers as "technology laggards."

Not that they are Luddites; it's just that they regarded retail technology as a major expense, especially in human capital. They often were cautious, even skeptical, about the promises of new technology being pitched to them.

When the pandemics arrived, many retailers responded rapidly and smartly. In scramble mode, some crammed five years of technology adoption into five months!

Now, as the lockdown restrictions recede, the conventional wisdom eagerly suggests that consumers of all ages will continue to rely on online shopping and other technology.

Hmm. Let's consider that "conventional wisdom" a bit more closely.

Say "Yes!" to Growth? Maybe...

6/14/2021

As we emerge from the pandemics, many retailers are eager to grow. (How's that for an understatement?!)

For some, that simply means having a better year than 2019 (because 2020 was such a disaster), and they relish having survived.
Others are looking to expand by adding locations, whether by acquisition of existing stores, or taking advantage of vacated retail sites.
Still others are focused on expanding their newly-established e-commerce capabilities.
And, for some, still other imaginative ways.

Trade shows are opening up with great success and eager buyers. Landlords are eager to fill vacancies, and in many instances, to cut deals. Vendors are eager to quit thinking about supply chain problems and start selling their merchandise, especially at trade shows. Plus, the continued growth and expansion of online wholesale marketplaces makes far more product available to retailers.

Then there is the access to capital. Lots of money is floating around out there

All in all, it creates an environment of exuberance. "Seize the opportunity" is the rallying cry. Indeed, for some retailers, FOMO – that Fear Of Missing Out – is pushing them to make some major decisions.

PPP Loan "forgiveness?" Not so fast

5/24/2021

If 2020 was the year of pandemic disruption and scramble-to-survive mode for retailers, 2021 may be the year of relentless Retail Is Detail reminders.

Many of you may well have benefitted from one or more rounds of PPP loans and their potential "forgiveness." Now comes the reminders that you must seek forgiveness. In writing. From the bank that loaned you the funds. And there are some time deadlines involved. Yikes.

Oh, and total forgiveness may not be forthcoming. It depends. (See below for these guides* and disclaimers from the SBA.)

Then there are the so-called "bookkeeping details" surrounding all this.

Buyers Beware!

4/26/2021

We often caution that many vendors are so much better trained at selling than retailers are trained at buying. In their eagerness to grow sales, and the associated promise of thereby growing profits, it is all too easy for retailers to become overbought. Instead of higher profits, they can find themselves in a cash flow crunch.

And that was in Before Times, before the pandemics. Throughout 2020 and continuing now, vendors and retailers alike have increased their online capabilities. Ordering online brought new challenges to buyers and sales reps, but also saved time and improved access.

We have applauded these advances in technology, but...

"The envelope, please."

12/7/2020

Here we are, in the first week of December, in this tumultuous pandemic year of 2020.

Maybe more than ever, you need to have a grip on your cash flow! What will you cash flow look like during December, January and February?

Since you must be able to make informed decisions about your business, every day, an up-to-date cash flow calculation is essential. Remember, profits are interesting, but it's cash flow that's significant!

Cash flow doesn't have to be fancy. In fact, what most owners need is just to have the basics on the back of an envelope. The savvy ones always have that with them.

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Be strategic: All you need is a pencil

Tips, Tactics & Insights from Retail Strategists