New Kind of "Exit Strategy"?

"Retirement" looming? Ready to reduce hassles and worries, but not really ready for a rocking chair? Here’s a retail concept to consider.

We just heard about a new kind of “mixed-use development” (you know, retail shops on the ground floor, residences up above.) Some of the new townhouses being sold in a planned resort community come with a first-floor retail shop. The owner of the townhouse owns the shop space as well!

• The retail space and a powder room on the ground floor total 753 square feet.
• The two upper floors provide 1,935 square feet of living space (3 bedrooms, 2.5 baths). 
• A carport in the back contains the stairway leading to the living space. 
• A balcony on the second level overhangs the retail entrance on the street. 
• The townhouse owner can then choose to operate a shop in “their” space, or, be a landlord, and rent it out to another retailer. 

While a 3-bedroom condo might not be your idea of “downsizing”, the opportunity to also own the retail space offers some intriguing opportunities.

• Maybe you still want to run a small shop (perhaps a smaller version of what you’ve been doing for many years.) 
• The internet could balance out the seasonality of being in a resort community.
• Or, you rent out the space to another retailer, and receive the rental income. 

In any event, you still have a place to live, plus equity in the property, and could benefit from any appreciation in its value over time. 

As we thought about it more, this may be a concept that already is happening in a variety of settings other than a resort community. 

• Perhaps a college town? 
• Or, in one of the “lifestyle centers” that are being built/redeveloped in suburban communities? 
• Or, maybe in the town where you already live?

We think it's a fun new wrinkle on an issue facing many owners. All part of “making the business work for you!”

Might it be "an exit strategy" to look into?

Talk About a Time Crunch!

Well, the calendar seems to be wreaking a little havoc for retailers this year. 

First, Labor Day was “late”; that is, on  September 7 instead of the 2nd or 3rd.

• That meant that the Back to School shopping that often occurs in August was pushed into September.
• Plus, it was delayed even further by today’s shoppers, who seem to prefer “grazing” – our name for the tendency to shop closer to need – instead of concentrated shopping trips.

Next, looking ahead: Thanksgiving this year is also a little "late", on November 26. And, Christmas is on a Friday.



Why does this matter? Because Christmas Eve is just four weeks after Thanksgiving!

• This means the fewest number of weekends - three! - between Thanksgiving and Christmas.
• But, with Christmas Day on a Friday, that allows 2 full weekend days for those after-Christmas sales and returns.

Who Will Be Impacted?

Which retailers might be affected the most by these calendar-based realities? Online merchants!

• It’s very likely that in a time crunch, customers will choose to do more of their shopping online, which puts increasing pressures on online merchants to meet delivery-by-Christmas schedules.
• And this is happening as some of these larger retailers are facing difficulties finding seasonal workers for their warehouses.
• Turns out that with employment rising, there simply aren’t as many folks willing to accept the demands of a warehouse job on just a short-term, seasonal basis. Hmm. Christmas shopper beware!

Meanwhile, even if your retail operation is more bricks-n-mortar than online, this calendar crunch still may affect you. Here’s how.

• Seasoned retailers have observed that in-store shopping surges as each delivery-guaranteed-by-Christmas order date deadline is passed.
• Make sure you know what those key deadlines are. Be prepared to reap the most benefit. Be proactive in scheduling your staff in anticipation!

All in all, the rest of 2015 promises to be pretty hectic!

Straight Talk from Retailers About Social Media "Effectiveness"

"Social Media". It's all around us. But what retailers want to know is this: "Is it effective? That is, does it raise sales?" 

So, we asked, and retailers answered. Did they ever! Retailers indeed are very active with social media! 

And we also confirmed that retailers – at least, those who responded to our survey – are very focused on accountability. They too keep examining "Is it working? Is it effective? Is it driving sales?!?" 

The survey gathered two kinds of feedback:

1. Effectiveness ratings about each social media platform (from "Very Positive!" to "Not At All");
2. Comments from the survey respondents (1/3rd of whom are multi-store operators). 

You can see all the findings here on The ROI site, including:

• Verbatim recaps (yes, including those smartphone typos)  explaining why or why not social media is "effective" for retailers.
• Explanations behind the ratings for each platform on the key question: "How has it INFLUENCED SALES?"
• And, of course, the full results from the survey (Which promotional tools have declined in use? Is social media paid advertising being used? And more real-world insights and observations.)

We were certainly intrigued to see how and why independent retailers are using and/or experimenting with social media. We think you will be too.

Go here on The Retail Owners Institute® site for all the info.

Retailers: Being Unfair to Your Accountant?

Are you still counting on your bookkeeper or your accountant to let you know which months you are going to be short of cash? 

Actually, that is terribly unfair to them!

• Remember, bookkeepers and accountants are trained historians. They can tell you to the penny what happened in the past.
• But, to expect them to give you advance warning of the ups and downs of your cash flow is not only outside their comfort zone, it is not their responsibility! That is the owner's responsibility.

Which is exactly why The Retail Owners Institute has built so many online projecting calculators for retailers. 

And our (free!) SPEEDY HEADLIGHTS makes quick work of knowing in advance what your monthly cash surplus - or shortfall - would be! 

Do yourself - and your accountant - a big favor. Take a few minutes to see where your business is headed. (Remember, if you don't like what it shows, you can play "what if...?"  All privately, on your own.)

Priced Right for Retailers: FREE!

 Go here | More info | Free access

That Springtime State of Mind!

Did Your Stores Get the Memo? 

This weekend marked the official arrival of Spring.

No, we're not talking just about the weather. Spring is really a state of mind! And that of course means it is a wonderful opportunity for retailers.

• No matter what merchandise you sell - whether it's tires, apparel, books, housewares, office supplies, whatever - every retailer is in the fashion business.
• And that means that your customers are wanting what is new and fresh. You know; "in fashion"! 

How to bring that Springtime State of Mind to your stores? 

It's easier than you think. And can be quite energizing for your staff as well as your shoppers!

• Tweak your displays. Feature merchandise with lighter/brighter colors. 
• Change the soundtrack. Lighter/brighter works here as well. 
• Wash the windows! Wash away that winter grime. A little sparkle and shine goes a long way. 
• Check the lights. Make sure none of them are out. Get rid of any dark corners. And by all means, insure that all spotlights actually shine onto merchandise, not that spot on the floor where the display used to be....
• Remember your staff. Maybe it's time for a Spring Fever treat for them. Whatever it takes to make sure they, like your customers, have that Springtime State of Mind. It's contagious!

Retailers: Is Now the Time to Sell?

It's that time of year.  Retail owners are asking themselves, 

• "So, shall I really keep doing this? Do I want to sign more leases? Guarantee more loans?"
• "Or, while I still have my health, is now the time to sell?"

When pressed, many owners confide, "I plan to sell the business in 5 years or so." (And yes, there are owners who have been saying that each year for the past few years. It's the rolling 5-year exit plan!)

Whether or not this year is the time for you to sell, we believe that every year is the time for owners to investigate their options. 

To help get you started, The Retail Owners Institute has developed a specialized free microsite called Sell My Store, Please!  There you'll find some tips that are practical, or thought-provoking, or maybe even inspiring. 

We encourage you to be pro-active about your own exit strategy. 

There are 3 kinds of owners out there; which one do you want to be?

1. Owners who make things happen.
2. Owners who watch things happen.
3. Owners who say, "Uh...what happened?!?"

Be Ready! New Patterns for Peak Shopping Days

You noticed it, right? That traditional lull in shoppers, between Thanksgiving Weekend and the 10th of December.  

That is just one of the predictable patterns within the Holiday shopping season. Next up: the surge this weekend, and then of course, next weekend, the last one before Christmas. That's when the shopping malls ask many stores to be open till midnight, right?

But, sure enough, especially this year, these "traditional" patterns are subject to another trend, the "digital disruption".

• First, accept that the shoppers will certainly be busy doing their thing; it just may not be in your stores yet.
• Instead, more folks will rely on the web for their window shopping, browsing, price comparisons, etc.
• When they do show up in your stores, they are on a mission! Not browsing; just buying. 

This Year's Peak In-Store Shopping Days

So, when will in-store shopping peak? Not on the traditional last weekend before Christmas. Instead, watch for it to peak on Monday the 22nd and Tuesday the 23rd, and of course Wednesday, Christmas Eve. 

Why? Two main reasons:

1. The "traditional" reason: those are the days when most men (and women who shop like men) actually do their buying.
2. The "digital disruption" reason: the deadlines for buying online and having guaranteed delivery by Christmas will have passed. At that point, the customers will show up, and depend on stores to come through!

Those retailers who are anticipating these changes will be better able to effectively schedule their staff. You can likely schedule in anticipation of the Monday-Tuesday crunch.

• And therefore, having "paced" yourself and your staff, you will be well positioned to deliver great customer service on those crucial, crunch time shopping days and evenings.

What better way to keep the Ho! Ho! Ho! in the Holiday Season?

Start Now to "Beautify" Year-End Financial Statements

For most of you, your fiscal year end (i.e., 12/31; 1/31; 2/28; etc) is rapidly approaching.

"So what?", you ask.

Well, whatever your year-end financial statement says about your business, you will have to "live with" for the next year or longer. And each vendor, bank, or landlord you share it with will judge your business by it. So, now is the time to dress it up! 

Is there a beauty parlor for retail businesses? Yes!

We just conducted two workshops at a huge trade show in Chicago. We taught those retail dealers how to financially beautify their businesses. (And some of these retailers are already making "dress up" plans.)

How Your Business Is Judged for the Next Year

Always remember: your debt-to-worth ratio is the #1 measurement of the financial strength (or weakness) of your business. So, how can that be improved? Here are 3 choices.

1. Obviously, the more net profits that are added to your retained earnings from your P&L, the greater your equity/net worth will be.
2. But, shrinking your liabilities (any and all debt) is the most impactful and controllable way to improve your year-end debt-to-worth ratio.
3. "Controllable?" Yep. Shrink (sell off; liquidate) any assets you can (especially excess inventory) and apply that cash to paying down debt.

If you take these steps vigorously, there is a Miss or Mister America Pageant you can enter!! 

And best of all, this "financial beautification" is far more than skin deep. It makes for a much healthier business as well.