Category: General

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.

Really, What Is Knowledge?

2/21/2023

People don't go into retailing to be financiers.

They love the merchandise they sell, and/or they love the people who buy the merchandise. (Think book stores, sporting goods stores, gift shops, etc.)
Others love the "theater", the excitement of retailing.
Still others want to be their own boss.

But few are attracted to the financial part.

Which is exactly why The Retail Owners Institute website has been built!

Given our years of experience consulting with retailers, especially in turnaround situations, our speaking at conferences and publishing in trade publications, we wanted to "level the playing field" for retailers.

What Is "Value" for YOur Customers? Really?

11/14/2022

What is the definition of "value" for customers? Pretty straightforward, actually.

Value = benefits received for the burdens endured.

Wait. What? "Benefits received?" "Burdens endured?"

Turns out, the only single answer to "What is value?" is, "It depends."

Don't just roll your eyes. What constitutes value for your customers increasingly is a make-or-break part of retailing.

Time for the Shoppers to Bounce Back

10/10/2022

Retailers are notable for their optimism and their resilience.

And the last couple of years have provided ample opportunities to showcase their ability to bounce back.

But now, it's 2022. Time for those customers to pick up the slack. And here's an idea for helping them get started. Without costing a penny in advertising!

Print up some "bag stuffers" (you know, conspicuous notes) inviting them to come back in November.

As you add it to their bag following their purchase this month, point out that when they "bounce back" to your store in November,they will save 20% off one item.

Finding Inspiration – On the Kids' Menu??

9/26/2022

We recently learned of a restaurant with a kids menu which is quite unusual.

Of course, having a kids menu is not unique. But here's what IS unusual about this one.

When kids are asked "What would you like to eat?", often their answers can range from "I don't know" to "I don't care."

But at this restaurant, here is what each all-too-familiar answer brings to the table:

Expecting Judgment from Computer Forecasts? Really?

6/27/2022

"How are sales?" is essentially the international greeting between retailers.

And because of the seasonality of retail sales, most retailers will respond by explaining whether sales this month are up or down versus the same month last year, not just the previous month.

All this is well and fine in a normal year. But, since 2020, retailers have not been experiencing anything close to normal. And boy, does that show up in the 6-month retail sales trend charts that The ROI posts each month.

In sector after sector, December, January & February sales versus the prior year are markedly different than the March-April-May results. In some cases, these are quite dramatic.

Your results are likely to be consistent with these patterns.

"So, how was your first quarter?"

4/11/2022

As the second quarter of the year begins, many of us are experiencing what that fellow in the cartoon is feeling. We are not where we expected to be (and maybe not even where we thought we were!)

Ahh yes, yet another flexibility test. The first quarter of 2022 was full of some major events, nationally and internationally, that disrupted many plans.

As you contemplate where you are now, compared to where you thought you were, and especially, 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."

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