So, That Question Again

We are asked frequently - and again last week it occurred - “Well, Pat & Dick, what’s your view on the economy for retailers?”

We began by recounting the challenges: 

“Well, this is the New Normal. That is, modest population growth, many fewer people in the Generation X valley between the Baby Boomers and the Millennials, and the sense that worldwide events may at any moment substantially impair our economy." 

Then, we also noted the positive indicators:

• consumer confidence continues to rise
• last week the stock market hit an all time record high
• and of the 54 retail segments we follow, although some are suffering, most are doing quite well. (see Monthly Sales comps on The ROI site - compare your sales trends to your segment).

"Actually, It's Just Like the Weather"

But, here's the real key: in every retail sector, some retailers are declining, and others are doing quite well indeed.



What separates those succeeding retailers from all the others?

• Those who are thriving tend to be focused on the “controllable variables” - managing inventory, expenses, people issues, cash flow.
• Of course, they're always doing what they can to improve sales. But that's not as controllable!
• And, they consciously choose to not be drawn into the distractions of the 24/7 bad news cycle, even though those around them tend to be.

In other words, the economy, like the weather, does have an impact on retailers. But, like the weather, the economy is beyond their control.



The best one can do is:

• pay attention
• stay nimble
• adapt
• and control the controllables!

That's why it seems to us the answer to the question - “Well, Pat & Dick, what do you think of the economy for retailers?” - is this:

Three things: Execution. Execution. Execution.