What do customers really want? More control

We are living in unsettling times of rapid change and news cycle drama, now accentuated by a U.S. President-elect who values being “unpredictable.” 

Whether it’s the latest natural disasters, international conflicts, aging parents, unexpected expenses, or just trying to open a new bottle of aspirin, life can seem more out of control than normal. Especially during this upcoming holiday season.

This anxiety and frustration can be unsettling to many folks, some of whom undoubtedly are your customers. 

And frankly, as the frustrations grow of having less control, some people will seek more control wherever they can.

Where would that be? That’s right. Your stores. You and your staff must be ready.

“Give the customer what they want” has been a long-standing directive in retailing. Especially for today's customers, it's not about price or selection. What they want today is control. 

This holiday season, many consumers will turn with a vengeance to a new kind of “retail therapy”. Shopping is one place where they still are in charge! But it's not how much merchandise they acquire; it's how much control they can exercise.

How might you and your stores be better able to serve these seekers of "retail therapy" Among ideas for you and your staff to consider:

• Choose and use technology that gives your shoppers more control (versus just having the gee-whiz “latest technology”).
• Be more willing to explain “why?” There are reasons behind your careful editing of assortments (or what’s known today as “curating”). Explain how the merchandise in your stores meets your standards. (And why you don’t have everything that is available on the web.)
• Alas, some customers will abuse this power. They can be rude, or leave merchandise on the fitting room floor, or challenge return policies. It is important to avoid a tug-of-war with such customers. They want less confrontation!

Today's new "retail therapists" – that is, those retailers who understand and cater to customers who want more control –  will be better able to weather today’s tumultuous times. And to help their customers do so as well.

Millennials prefer L-A-T-T-E. Maybe you should too!

The Millennial generation - now ages 17 through 34 - represents nearly a quarter of the U.S. population, and a significant portion of annual consumer spending. 

We recently read of a study that has identified a set of attributes "that overwhelmingly resonate with this age bracket."  In fact, when making shopping decisions, Millennials are 20% more likely than other generations to consider these elements.

As these studies so often do, an acronym has been created to help us remember those attributes: L-A-T-T-E. 

• Local
• Authentic
• Transparent
• Traceable
• Ethical.

While each of these attributes provides the means to differentiate your stores, in our view, many independent retailers can leverage ALL of them!

Moreover, in our opinion, these L-A-T-T-E qualities not only resonate with Millennials, but with many others (your customers? your neighbors? You?) who share these same values. 

• It is not just demographics (quantitative data); it's also psychographics (qualitative data). And the L-A-T-T-E attributes certainly point to qualitative measures.

We think this offers two significant opportunities for independent and local retailers. 
With the L-A-T-T-E attributes, independents are uniquely positioned to take the lead, and make it known that Local - Authentic - Traceable - Transparent - Ethical have long been in your DNA. 

Especially in today's environment, winning the hearts and minds of shoppers is the challenge confronting all retailers. Sharing your love for L-A-T-T-E is an important step!

Your stores: places to BE? Or just places to buy things?

One of Retailing’s Hottest Trends: Selling Experiences

“After years of choosing the speed and wide selection offered by big-box retailers such as Home Depot or online merchants like Amazon.com, customers are demanding higher engagement if they’re going to buy something in a store,” reports Lindsey Rupp of BloombergBusinessweek.* Stores must be “exciting destinations rather than places to make a quick purchase.” 

Some brands or chains, Rupp reports, already are selling experiences along with their goods. Consider:

• Lululemon Athletica offers yoga classes in its stores
• Apple holds in-store digital art and video workshops
• Some Cabela’s (outdoor outfitters) stores have indoor archery ranges
• PetSmart opened its first Pet Spa store, focused on the “pet lifestyle experience” for pets and their pet owners
• Teen retailer Urban Outfitters last year bought a pizza chain

Beyond "Product Demos"

In our view, each of these examples goes well beyond the merchandise, and focuses on actively engaging the customer.

• These experiences are not “product demos”. Instead, they showcase and celebrate using and enjoying the merchandise.
• Plus, customers engage not only with “experts” who use the products (those leading the sessions), they engage with other customers (people like themselves?) who also use the products.

In other words, compelling reasons to come to your store! Hands-on participation and involvement are essential for today's customers. So, what are you waiting for?

• Specialty retailers are well-positioned to deliver these in-store experiences. You have the product knowledge, the love of the merchandise, the respect for your customers. 
• And what a great way to energize your staff! Ask for their ideas, and try them all! Test different times of the week: What appeals during a weekday? How about weekends? Or evenings?

For retailers, synergism and involvement is the new competitive edge.

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* Pizza, Parks, and Pet Spas: Shoppers Will Pay More for Retail Experiences. Lindsey Rupp, BloombergBusinessweek, October 19, 2016.

Stealing their hearts and minds

Who goes to the grocery store to buy, well, groceries? What we want is DINNER! 

But, can you go into a grocery and find “dinner”? Or “breakfast”? Or, “great lunches”? Not very easily.

• Instead, there is a produce section. And then a canned goods section. And then the frozen foods section. All with an overwhelming assortment of choices, whether it is mustards or pickles or pasta or….
• Plus, it takes a lot of time to navigate all the aisles, avoid the other shoppers and carts, and then check out. Which may be fine for those who do grocery shopping for the social experience as well as getting their groceries. But for many time pressed folks...

That's why the true disruptions in the grocery industry aren't coming from smaller format stores, or even grocery delivery services. Instead, the meal-in-a-kit services – e.g., Blue Apron, Plated, HelloFresh  – are far more disruptive. 
Why? They solve the real problems of many customers.

• Here's how: Folks sign up online; they receive a special  icebox on their doorstep containing the fresh, raw ingredients for 3 to 5 meals, all in the proper proportions (whether 3 tablespoons of cooking wine or 1 carrot, there is no wasted food or languishing jars of spices); step-by-step instructions (with pictures) are included; customers do the assembly and cooking, and in 35 minutes or so, sit down to a home-cooked meal.

All without the time-consuming demands of meal planning or traditional “grocery shopping." No fuss, no muss, no waste.

• Remember, “value” for customers is "benefits received for the burdens endured." In our view, these meal-kit delivery services are delivering great burden-reducing value to their customers! And, they are reinventing (or "disrupting") the grocery industry in the process.

Time to think beyond Amazon?

We believe this offers, ahem, much food for thought for all retailers. As you consider how to serve your customers better and stay ahead of competitive pressures, it's time to think like your problem-solving customers.

1. What problems are they trying to solve?
2. Anything keeping them from getting those solutions from your stores?
3. And in today's "new normal", who IS solving your customers' most important concerns – and maybe stealing their hearts and minds as well?  (Hint: as grocers are finding out, it may not be Amazon!)

Finally! The 4th Quarter is HERE

October 1 marks the beginning of the 4th quarter of the calendar year. The beginning of the home stretch. And yes, there is good reason for retailers to cheer. Consider:

Halloween will be HUGE 

According to the National Retail Federation, Halloween spending is expected to reach a record high of $8.4 Billion on costumes, decorations and candy.

• More than two-thirds of Americans plan to buy costumes this year. For themselves, their kids, or their pets!  
• This year’s most coveted costume? As reported by the Washington Post, “So far, it’s superheroes across the board: For kids, for adults, for pets,” said Lorenzo Caltagirone, owner of Total Fright, a year-round costume shop in Arlington, VA.
• After 11 years of being the most popular choice, princess costumes have been dethroned. “The female superhero in particular has really taken off. This is the year of girl power.”
• Political costumes rank third on the list of popular options for adults 35 and older, bested only by more traditional witch and pirate get-ups.
• About those costumes for pets? Pumpkins, hot dogs, and bumblebees. 

The Election will be OVER!

And so will the election angst.

• According to CNBC News, “If history is any indication, retailers could see a double-digit sales lift in November and December, as shoppers focus on the holidays and release pent-up demand.”
• This post-election sales spike is likely to occur no matter which candidate wins.
• According to analysis by Alix Partners, “in the 2004 and 2012 presidential election years, year-over-year sales growth slowed an average of 22 percent in September and October, as compared with the prior eight months. It then bounced back an average 16 percent in November and December.” 

Despite the Hanjin Shipping bankruptcy, merchandise WILL be in stores for holiday

• According to the National Retail Federation, “import cargo volume at the nation’s major retail container ports should be at near-peak levels for September.” While much merchandise is still in limbo, “retailers are working hard to make sure it ends up on store shelves in time for the holidays.”

What Black Friday surprises this year? How About The NEW Normal?

• Remember last Thanksgiving? Some retailers stepped back from opening on Thanksgiving Day. REI made news by closing its stores on Thursday and Friday.
• How does all that affect customer expectations for this year?
• And what approach are you planning for your stores for this year? 

Not easy questions. But a sure sign that retailers may indeed be able to get back to The NEW Normal.

Ahh Yes, Christmas

This year, Christmas Day falls on a Sunday.

• That means offices that typically shut down starting at mid-day on Christmas Eve may instead be doing that on Friday the 23rd, inviting a late shoppers bonanza.
• Of course, the After-Christmas events will then start on a Monday. How convenient!

Wow, what gifts! 


Especially in retail, timing IS everything. Enjoy the arrival of this year's 4th quarter.

"Entry Exam" for New Items in Your Stores

Question: "We must keep bringing in new items. But, how do we keep from being over-bought?" 

Answer: "Very carefully!"

Ahh, the appeal of new items. Or, your customer's ever-growing "wish list" items. But, when you are also trying to control inventory, and keep turns up, the challenge is, "Really, which should you buy?" 

• As many retailers are only too aware, if you are not vigilant, you may experience bloated inventories, which can cascade very quickly into cash flow problems.

Here are 6 key questions for you and your buyers to ask yourselves as you consider new items. We think of it as an "entry exam" for merchandise. It's a very quick way to identify which items actually deserve to be in your store.

#1. Can my customers get this item at other stores in my market area? 
If yes, it probably has no pulling power.

#2. Is this a good margin item, or is it subject to a lot of price competition? 
Slow turners with weak margins are double trouble.

#3. Does having this item in stock help me sell other higher-margin merchandise? 
If not, you may not need it.

#4. Can I get faster delivery on this item than I am now getting? 
If yes, you may be able to cut back on your stock.

#5. Do I order larger quantities of this item than I actually need in order to take advantage of price breaks? 
If yes, you may be coming out on the short end when you figure in all your carrying costs.

#6 Do I have an emotional attachment to this item that reflects my personal taste rather than a business-like response to my customer’s desires? 
If yes, get rid of it!

Go here in the Library for Owners at The Retail Owners Institute(R) for more useful and practical insights and tactics about protecting your store from inventory bloat. See how quickly you can achieve greater control of your inventory!

New items? Oh my, yes. 

Too much or too many? Not any more!

What your customers really like about your store might be...your customers!

Recently, we heard how the cafe/bar in the recently-opened Whole Foods store in downtown Los Angeles had a live jazz combo playing on a Friday night. "And the place was packed! Can you believe it? All the cool clubs in downtown LA, and people come to the Whole Foods for live music?!? A grocery store??"

Actually, yes. We CAN believe it. Here's why.

• These folks trust Whole Foods because of the customers it attracts. They know they will be comfortable there; they want to be around people like themselves.
• And, they may not know much about who they might find in any of the "cool clubs".

Specialty stores are particularly suited to expand on this kind of engagement with your customers. You already have been selecting and editing product assortments - what's known today as "curating" - that speaks to a certain taste level. And attracts a particular group of shoppers.

And thereby, you have also been "curating customers"! You see, it's your customers – not just your merchandise – that really make your stores "special".

And these folks - your "best customers" - might like to hang out with each other when they are NOT shopping. 

• This is your opportunity to engage in real life(or IRL, as they say) with those who care about your merchandise - and what it represents - the same way you do.
• Make your stores more than a great place to shop. (Remember, there is the internet, after all.)
• What experience can you offer that will make your stores the place to be for folks like your very best customers? (They're what really make your stores "special." And don't they love to hear that about themselves?!)

We believe you will find it energizing! One more way to put the fun back into retailing!

Must owners pass through the "Valley of Bankruptcy?"

Recently we received an email from a long-time follower of The Retail Owners Institute®. It included a comment and a question that you, too, may have wondered:

How do you go about changing the mindset of the owner/CEO about GMROI, inventory management best ideas, etc? 

Our CEO stills buys by intuition, hunch, seat-of-the-pants. He likes to use phrases like: stack-em-high, watch-em-fly. One-to-show, one-to-go.

Can CEO's go from mediocre to great, or do they have to pass through the valley of bankruptcy first? 

Wow! Quite a question, speaking volumes about the underlying concerns.

Those Owners & CEOs who still "stack-em-high, watch-em-fly", who buy by hunch and intuition are in fact disappearing. It's what we call "Retail Darwinism". But, must owners pass through the "valley of bankruptcy" in order to change?

Every case is different, of course. In our work with retailers in "turnaround" situations, we've found that the fear of impending failure, the acceptance of being on the brink of bankruptcy, can prompt changes. Unfortunately, sometimes it is too little, too late.

So, how can Owners and CEOs be motivated to change?

• It starts with increasing their financial skillset and confidence.
• Enabling them to have a positive answer to "Am I running this business…or is it running me?!"  
• Doing integrated financial projections can be eye-opening.
• Knowledge IS power!  

Occasionally, however, fear is more paralyzing than motivating.

• These retailers simply do not appreciate how much control they could have! 
• Not able to recognize their alternatives, they become frozen in the headlights.
• This is especially true for those who have delegated the "accounting and financial stuff."

That's not to say that Owners & CEOs need to do all of the accounting and bookkeeping themselves. Far from it!

But since Owners are responsible for projections, for playing "what if…?" about their business, they must understand the cause-effect financial levers in their business.

That's how they can be empowered, better able to respond as the business environment changes.

Emails such as that one cause us to redouble our dedication at The ROI to help any retailer, anywhere be able to look ahead, compare potential outcomes of their own financial projections, and then use those insights to inform their judgment and decisions.

Or in other words, empower retailers to "Turn on their financial headlights!" 

Who's Really Paying the Freight for Amazon's "Free" Shipping?

A recent study by consulting firm Shipware LLC documented the commanding advantage Amazon has established in shipping. The "big shippers" - so-called Mega-Retailers like Amazon, Target & Wal-Mart - get dramatically more favorable rates from carriers such as FedEx and United Parcel because their volume is "guaranteed and predictable." 

As a result, the costs absorbed by the Mega-Retailers to provide "free shipping" are breath-takingly less than those for their smaller competitors.

Shipware estimated the shipping costs that would be incurred by each type of merchant to ship a 10-inch square box weighing 3 pounds from New York City to a suburban residence in Atlanta.

But are the shippers relying on this "guaranteed and predictable volume" to offset the discounts they offer? Or, are the shippers looking to their smaller customers - with far less negotiating power - to bear a disproportionate share of the costs?

• For the mega-retailers, free shipping drives tremendous volume (and customer loyalty) while also enabling greater and greater negotiating strength with the shippers. A powerful dynamic: the big get bigger.
• And for the smaller merchants? Matching the mega-retailers' online prices and absorbing the "free" shipping costs are much higher hurdles. They represent the opposite but equally powerful dynamic, the downward spiral....

Will there be any relief for the Small-Medium Retailers as Amazon grows its own shipping fleets? That is, faced with reduced volume from Amazon, might FedEx and UPS be more willing to offer better rates to all the other customers?  

SIgh. We wouldn't count on it.  

Or, given this huge discrepancy in costs, might other shipping services emerge to fill this vacuum? Perhaps consolidaters of some sort? Or...???

"Smart Appliances". Smart for Who?

The Internet of Things (IoT) – all the web-enabled devices for the home – is a dynamic and fascinating arena. One of the latest devices is the Family Hub, the "Smart Refrigerator" from Samsung. 

The Family Hub has 3 cameras inside the fridge and a 21 inch touchscreen on the front that connects to the web. Samsung says they want to move your refrigerator beyond storage, and bring your kitchen into the digital age.

For that, the Family Hub comes complete with...its own family! (And you thought it was about your family.) It's all about the "home shopping vertical." 

So, when you wonder (or are being asked), "What's for dinner?", the Family Hub has lots of partner-enabled help for you. 

• First, you can look inside your refrigerator – from anywhere with an internet connection – and see what’s in it right now, including expiration dates.
• Meanwhile, the Groceries by MasterCard app has been studying your habits, and offers a grocery list of suggestions on specific items and brands.
• AllRecipes has recipes, cooking tips and suggestions for you (complete with shopping lists).
• Others in the household have been adding to the grocery list too.
• Once you approve your shopping list, items are added to a cart at a FreshDirect or ShopRite location, the payment is processed by the MasterCard app, and the groceries are delivered by Instacart.

Whew! It's giving a whole new meaning to "food chain", isn't it?

Our questions: Are these smart fridges - and all their connections - really cool? Or, really chilling?

• Is this a time-saving, technological break-through? The perfect blend of technology, merchandising, and convenience for today's consumers?
• Or, despite the amazing connections the technology can allow, Is it even solving a real problem?
• Meanwhile, as with all these technology advances,  who actually will own all the valuable data these smart refrigerators are collecting? 

It will be fun to watch, for sure. 

And who knows? With the web-connected video screen on the refrigerator, the Family Hub may give a whole new meaning to “binge watching”!!

In-Store Customer Analytics...from the Ground Up!

"How do you do analytics in such a way you don't become creepy?" asked Jill Standish, Senior Managing Director of Retail at Accenture Consulting.

And her answer? A technology that looks at the shoes of customers as they walk in the store.

"You can actually get a lot of pretty accurate demographic information about the customer based on their shoes, such as their age, whether they are male or female, and even their income status. And it's not that intrusive, unlike facial recognition." 

Revealing "Foot Traffic"

That got us wondering: even without that technology, what might you be able to learn about your customers by looking at their shoes?!

• For example, with just the camera on your phone, get some pictures of the shoes on the shoppers entering your store. Then, take pictures of the customer's shoes at your cash wrap counter.
  
  Now compare those sets of pictures. How much consistency is there between the folks coming into your stores, and the ones actually buying from you?


• Considering a new location? Or a different location in a mall? Supplement your research with some "ground up" analysis. What can you discern about the "foot traffic" available in that new location? And how well does that match up with your present customers?

Intriguing, isn't it? It won't take much time, or even an investment in technology. (And it might be a great project for one of your newer and/or younger staff members.) You will undoubtedly find some surprises – and more opportunities!

Just a little time and effort can reward you with some revealing and useful insights. All free, too! One more way that independent retailers can work smarter, not just harder.

Update: The Amazon Tsunami

No matter what segment of retailing you are in or what merchandise you are selling, every retailer is keeping a wary eye on Amazon. As we sure do. 

But, the Thursday, April 7 edition of The Wall Street Journal had an update on Amazon that, once again, can take your breath away: "Amazon’s Fashion Secret: Full Price", by Suzanne Kapner.

According to Kapner: “Dozens of brands now sell directly to Amazon, including department store stalwarts such as Nicole Miller, Calvin Klein, Kate Spade, Lacoste and Levi Strauss. And, just recently, Ralph Lauren shoes."

Why is this happening? For brands, Amazon offers growth – now without having to discount – at a time when department store sales are sluggish. 

Indeed during one 21-day time period (Jan. 28–Feb. 17), “Including sales by third parties, Amazon had higher average prices than Macy’s and Kohl’s on 69 items of women’s and men’s clothing and shoes.”

Of course, some department store executives still cling to the idea that Amazon will not be prepared to deal with returns. Hmm. Amazon has proven time and again that operational and logistics issues are not a deterrent.

Moreover, Kapner reports, “Amazon has advantages [for the brands] that traditional retailers are finding hard to match, including analytics data that help brands target shoppers by letting them know which styles and sizes sell best by region, and more sophisticated pricing.”

Ahh yes, “dynamic pricing”. Amazon’s unmatched analytics (and algorithms) allow much more responsive pricing than department stores.  For Amazon, price changes occur online, without having to be matched in hundreds of stores across the country. 

In fact, during that same 21-day time period, “Amazon changed prices 9.2 times on average per item, while Macy’s changed prices 2.1 times and Kohl’s did so 1.5 times.”


"Of course, Amazon will not depend on the brands for its growth; it is making many other inroads into fashion. It has acquired online sellers of designer brands, hired talent, launched a flash sale site, improved its presentation (its photography studio in Brooklyn creates magazine-like spreads for its site), created its own private-label products, and launched a live fashion show that streams each evening on the web."

But the key value persists: Amazon continues to relentlessly seek and capture the real prize, more and more customer data. Their stated goal: "turn the art of retailing into the science of retailing."

Can this tsunami be thwarted? Hmm.

Well, others have been. Think Kresge, Montgomery Ward, several "big box" specialty stores, many department stores, Sears, now maybe Wal-Mart. 

Stay tuned......

The Lure of Retailing for Manufacturers

According to a recently published eBook by Channel Advisor*, branded manufacturers are wondering: "Should we complement the traditional model of selling solely to wholesalers and retailers by selling directly to consumers?"

And the encouraging advice offered to these suppliers by Channel Advisor?

• "The short answer: Yes, you should."
• "Luxury brands, apparel brands, household product brands – they're all joining the party."

Meanwhile, The ROI's recent survey of retailers (see all results here) confirmed that manufacturers are seizing this opportunity. Indeed, this prompted some retailers to write:

• "We need less on-line competition from our vendors." 
• "Vendors selling directly to the consumer is a huge problem." 

No question, this is a sensitive issue for retailers, and often a frustration. 

But is it really a problem? 

Keep in mind that, over the years, many manufacturers have tried it and failed. Not all, but many. They think that retailing looks so easy! 

But, success in retailing requires a special mix of skills that very few manufacturers can accumulate.

One seasoned specialty store retailer we know exclaims, "Whenever someone says to me they want to open a store like mine, I say 'Great! You should do it!'"

Why so encouraging? He knows that only the pros can make retailing look easy, and work well.

Perhaps those manufacturers tempted to heed Channel Advisor's advice should also be reminded of this old saw: "The best way to make a small fortune in retailing? Start with a large one!" 

Manufacturers selling direct to customers is a genuine frustration. But.... 

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*"Branded Manufacturers: Should You Sell Direct?"
Channel Advisor eBook

The Case of the Missing Customers

We're heard from several very experienced retailers this past week that sales and in-store traffic have just dropped off since early February. Altogether spooky.

Indeed, 6 out of 10 respondents to our recent survey of retailers reported that customer counts (transactions) are down so far this year.

What's going on? Where are the customers? 

We can only speculate, but our suspicion: the 2016 Presidential campaigns continues to dominate the news in unprecedented and relentless fashion. Every day, the news is full of more uncertainty and disruption. 

And this democracy-in-action upheaval is taking a toll on retailing. This year, there is no "business as usual"!

• In a nation whose favorite spectator sports are auto racing and football, it's no wonder that this politcal spectacle has commanded our attention: When and where will the next collision occur?
• In this case, a "collision" is, distractingly and potentially, a major change in how our country is run, and how it is perceived around the world.

In fact, it seems to us that no "news item" in recent history has ever been more captivating. It not only is being watched; it is being stared at, mouths agape! 

Our hypothesis: You bet, most customers are distracted. And concerned. And spending less confidently. Aren't you too?

Your Shoppers Deserve to Know You Better

We hear it over and over. "Good business citizenship" matters to shoppers. They 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.

Followers of The Retail Owners Institute® know that one of our beliefs is that "Retail is a mirror of society."  And independent retailers, especially, are often in the forefront of "good business citizenship".

So, why not let your customers know?  As Joe Kefauver wrote in Retailing Today*:

• "Is there a fun way to let people know how many employees at a certain location have gone from entry level to a management position?
• "Can a company creatively communicate how many volunteer hours or non-profit dollars a certain establishment contributed to the community over the past year?
• "How is a given unit and its larger company talking about the use of its culture of opportunity to help leaders in a city solve problems?"

These are the things that independent retailers do day in and day out, without perhaps even realizing how special they are!  And especially in today's world, these are your competitive edge!

• Many of you are using social media to promote sales events, new product arrivals, etc.
• You already are finding how to convey your store's personality when it comes to your merchandise.
• Why not also use it to share how you do business? That is what increasingly matters to your customers.
• As a retailer, you likely are one of the civic leaders in your community. It's okay to let people know.

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* "What retailers can learn from Uber's playbook", Guest Viewpoint by Joe Kefauver. Retailing Today, February 3, 2016.

About Those Wal-Mart Store Closings

Perhaps you also have noticed the recent announcements that Wal-Mart will be closing 269 stores, 154 of which are in the U.S. In several breathless pieces about this announcement, much attention was focused on the negative impacts the closings will have on their respective communities. Perhaps so.

Maybe the spirit of The Retail Owners Institute® is misguided, or we're looking through rose-colored glasses, but we can see opportunities galore! Consider this:

For every $1 million in sales that a closing Wal-Mart was doing, there's $500K of volume for each of two new or expanding merchants. So, closing a $10 million store might sprout 20 small businesses right down old Main Street!

In most communities, there are several good merchants already. We can imagine those folks stepping up quickly to help fill the vacuum a closed Wal-Mart created by adding stores without adding much administrative overhead. One good bookkeeper can handle more than one store. Same with POS systems, for example.

Or, a Wal-Mart closing can prompt new retailers, who can take advantage of the many in-the-cloud resources to reduce admin costs and introduce new retail concepts to a community.

Take That, Chicken Little! The Sky Is NOT Falling!

See, there well could be great opportunities out there. At least for those who are not distracted by the negativity. And retailers, more than most any other group of business owners, are incredibly optimistic. 

Before You Ask About the Economy....

Like us, many of you are watching with concern as the U.S. stock market starts the year in free fall, and the media pours kerosene on the fire. Additionally, the commercial world is wondering if China’s more modest growth is an aberration or the new normal.

For owners of retail operations, who were smashed by the recent Great Recession, these dark clouds are not welcome at all. And if consumer confidence were to plummet, so would sales, most likely. That would be painful!

Let’s be perfectly clear: we are called a lot of things, and answer to some. But we are NOT economists! Whew! 

But, before you ask, here is our amateur opinion of this downtown:

• It won’t last long.
• By the fourth quarter, most of the world’s economies will be feeling robust.
• And independent retailers need to be prepared to take advantage. Hunker down now, but be ready for the rebound. 

My, aren’t we the cheery optimists?!

Oh. You want to know how we reached that glossy conclusion? Fair enough.

First, the remarkably depressed oil prices (a major contributor to balance sheet erosion worldwide) were caused by a glut of oil backing up. Finally, that glut will subside in order that suppliers can raise prices. Too much pressure to do otherwise.

In much the same manner, several other “gluts” are undergoing better management.

• Consumer goods at deflationary prices is simply not sustainable economically. Third world producers are learning that, finally.
• Millions of immigrants upsetting the economies of many countries. Those very countries will, we like to think, exert their diplomatic and political muscle to correct some of the reasons that cause the fleeing, beginning to reverse the flow. There are some sound leaders, after all!
• Millennials worldwide are coming forward, and will influence economies, elections, the environment, and stability like no generation before. They’ve watched their parents and grandparents botch things up. They are one glut we all can applaud!

So, before you ask, we’ve offered our crystal ball gazing. Now, what’s yours??