Let's all assume that the economy is (finally!) gradually strengthening. There are many bona fide signs of that. Great, as far as it goes.
But we see that many independent retailers are rejoicing with the "Whew! Now we can can back to normal" attitude. And that is very troubling to us. What is sorely needed is a little parental discipline, namely, "Rejoice briefly and restore ratios fervently!"
We see low current ratios and margins along with troubling high Debt-to-Worth ratios. Our mantra - Priority #1 for retailers in an improving economy: Get those ratios restored!
Who knows when the next financial tsunami will come? Retailers must get stronger now! (Want to know what the benchmark ratios are for your retail segment? See the "Benchmarks: 50+ Retail Segments" at The ROI site.)
Get your ratios above the benchmarks for your industry. Then – and only then – should you celebrate being on the road to recovery. Be passionate about it!
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