The current economic meltdown, while fearful, is beautifully timed for retailers!
Sure, consumer confidence is down. Businesses aren't hiring. Nobody is lending money. But so what?!
The first ten days of August - unless you sell beer - are the absolute dog days of the retail year. As long as world leaders are getting their abrupt comeuppance regarding their fiscal irresponsibility, the timing for retailers is perfect.
Consumer confidence, although presently in the tank, is fickle. In six weeks, or by the holiday selling season, it could be at the highest in years. This kind of crisis brings leaders worldwide to a new sense of urgency. And we have high hopes that they all have gotten the message.
Retailers - be grateful for this timing. And reassure others to do likewise.
The Internet for Retailers: "The Arab Spring of the Commercial World"
There's a major sea change affecting retailing right now, whether we're ready for it or not.
Sea changes have hit retailing in the past, of course.
All those things that specialty retailers prided themselves on delivering in-store, in-person, are now available on-demand, 24/7 to the shopper via their smartphones.
No matter which consumer segment you target, they are increasingly web-reliant. They depend on the web to give them product information, shopping recommendations, price comparisons, store reviews, and more.
For hints of the future, watch the Millennial Generation. Yes, the "Digital Natives". The ones we know only from the tops of their heads, as they are busily texting.
That group now is larger and more influential than the storied Baby Boom generation that drove so many adjustments during the last 50 years. Watch every shopping decision they make: how, where, when and what they shop.
But don't stop there. All other consumer segments are being affected by the sea change as well. Grandmas buying off tablets? Baby Boomers checking prices from INSIDE a store on their smart phone?!
In fact, the fastest growing group of Facebook users is now the over-50 age group. So much so, that the teenagers are deciding to move away from Facebook. Where will they land?
So, which will it be for you?
There are three kinds of retailers:
Sea changes have hit retailing in the past, of course.
- Department stores once ruled retailing. Ah, but they didn't die. Instead, they went horizontal. They became known as Wal-Mart, Costco, Target, etc.
- Then "big box" stores, like Circuit City, Borders, Toys R Us, etcetera, stole the thunder from malls.
- In fact, there was a time when malls essentially had no vacancies. Now, they are being "re-purposed". Retirement homes, anyone? Charter schools?
All those things that specialty retailers prided themselves on delivering in-store, in-person, are now available on-demand, 24/7 to the shopper via their smartphones.
No matter which consumer segment you target, they are increasingly web-reliant. They depend on the web to give them product information, shopping recommendations, price comparisons, store reviews, and more.
For hints of the future, watch the Millennial Generation. Yes, the "Digital Natives". The ones we know only from the tops of their heads, as they are busily texting.
That group now is larger and more influential than the storied Baby Boom generation that drove so many adjustments during the last 50 years. Watch every shopping decision they make: how, where, when and what they shop.
But don't stop there. All other consumer segments are being affected by the sea change as well. Grandmas buying off tablets? Baby Boomers checking prices from INSIDE a store on their smart phone?!
In fact, the fastest growing group of Facebook users is now the over-50 age group. So much so, that the teenagers are deciding to move away from Facebook. Where will they land?
So, which will it be for you?
There are three kinds of retailers:
- Those who make things happen.
- Those who watch things happen.
- And those who say, "Uhh, what happened?!?"
The 5 (only!) essential financial levers of a retail business
Now Available in The Retail Owners Institute® eLearning Portal
The Retail STRATA:G® Kit
(That's "strategy". Every retailer needs one!)
Fact: Every retail business has only 5 essential financial levers. Not 50. Not 500. Just five. Manage these, and you can maximize your future.
Fact: These 5 financial levers are linked. They're integrated. Inter-connected. Changes in one impact all the others.
Fact: Connecting these 5 financial levers has now been "automated". The ROI has developed breakthrough "in the cloud" calculators that "connect the dots". Now, any retailer, anywhere, can produce fully-integrated financial plans for profits, inventory, and cash flow!
The Retail STRATA:G Kit reveals these 5 essential levers, explains how they work and why they matter, and then provides the "calculators" that automate the process for any retailer, anywhere.
Click here for more info.
See how retailers can learn - then use - the basic financial levers of a retail business.
What People Say About the Retail STRATA:G Kit
The Retail STRATA:G® Kit
(That's "strategy". Every retailer needs one!)
Fact: Every retail business has only 5 essential financial levers. Not 50. Not 500. Just five. Manage these, and you can maximize your future.
Fact: These 5 financial levers are linked. They're integrated. Inter-connected. Changes in one impact all the others.
Fact: Connecting these 5 financial levers has now been "automated". The ROI has developed breakthrough "in the cloud" calculators that "connect the dots". Now, any retailer, anywhere, can produce fully-integrated financial plans for profits, inventory, and cash flow!
The Retail STRATA:G Kit reveals these 5 essential levers, explains how they work and why they matter, and then provides the "calculators" that automate the process for any retailer, anywhere.
Click here for more info.
See how retailers can learn - then use - the basic financial levers of a retail business.
What People Say About the Retail STRATA:G Kit
"Our retailers need help with inventory control and cash flow, and how to make better business decisions. Your courses are right on point."
--Manager, Field Business Consultants, National Franchiser
"I want all 28 of our S.B.D.C. Certified Business Advisors to use this whenever they are working with a retailer."
--State Program Director, Small Business Development Centers
McDonald's Remodels - Again! (And for WHICH Customer?)
You probably saw the news. McDonald's is launching a $1 Billion "makeover" of their stores.
The remodeled restaurants will replace bright reds and yellows with subtle colors. They can feature flat-screen TVs, lounge chairs and electric fireplaces. They also are adding free Wi-Fi in most of its U.S. restaurants. Thanks to "seating zones", customers who want to linger will be separated from those who want a quick bite.
What does this mean - or matter - to independent retailers? Simply this: heightened expectations!
When was the last time your store was remodeled? Or, put another way, how many fast-food franchises in your town have been remodeled since your last update? If the price points on your merchandise are somewhere north of a Big Mac, but your store's look places you squarely in the Bush Administration, it may be time to reconsider how you are re-investing in your business. The customers expect no less!
Will McDonald's Remodel Chase Away Families?
Some observers have assumed that this makeover is meant to appeal to laptop-toting workers, and worried that it would drive away the families-with-young-children who depend on McDonald's as a reliable place for food their kids will eat. After all, as her kids run around, how many scowls from someone hunched over a laptop can any mom endure?
Our view is that this remodel is focused on a different market segment: teenagers! Think how Starbuck's has become a cool place for teens to hang out. What if McDonald's could attract them back? Offer a more "grown up" atmosphere, flat screen TVs, Wi-Fi for their texting - and those fries - might McDonald's become a cool place for teens?
The "Theater of Retail"
The "look" of your store says a great deal. It IS an arms race, no question. Once you accept that you need to remodel with some frequency, be certain to keep focused on that customer you most covet. Then make your store a place where that shopper wants to spend her time (and her money!)
The remodeled restaurants will replace bright reds and yellows with subtle colors. They can feature flat-screen TVs, lounge chairs and electric fireplaces. They also are adding free Wi-Fi in most of its U.S. restaurants. Thanks to "seating zones", customers who want to linger will be separated from those who want a quick bite.
What does this mean - or matter - to independent retailers? Simply this: heightened expectations!
When was the last time your store was remodeled? Or, put another way, how many fast-food franchises in your town have been remodeled since your last update? If the price points on your merchandise are somewhere north of a Big Mac, but your store's look places you squarely in the Bush Administration, it may be time to reconsider how you are re-investing in your business. The customers expect no less!
Will McDonald's Remodel Chase Away Families?
Some observers have assumed that this makeover is meant to appeal to laptop-toting workers, and worried that it would drive away the families-with-young-children who depend on McDonald's as a reliable place for food their kids will eat. After all, as her kids run around, how many scowls from someone hunched over a laptop can any mom endure?
Our view is that this remodel is focused on a different market segment: teenagers! Think how Starbuck's has become a cool place for teens to hang out. What if McDonald's could attract them back? Offer a more "grown up" atmosphere, flat screen TVs, Wi-Fi for their texting - and those fries - might McDonald's become a cool place for teens?
The "Theater of Retail"
The "look" of your store says a great deal. It IS an arms race, no question. Once you accept that you need to remodel with some frequency, be certain to keep focused on that customer you most covet. Then make your store a place where that shopper wants to spend her time (and her money!)
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