Back-to-School Results "Soft". Hmm...Really?!

We were taken aback a bit by seeing that early Back-to-School sales are viewed as "softer than expected." 

Then, in contrast to that negativity, we saw this report:

"In August, American consumers were the most upbeat in more than five years. The Bloomberg Consumer Comfort Index rose to its strongest reading since January 2008."

So, what's happening? 

Well, for one thing, the glut of apparel and small electronics available at deflationary prices continues to lower the average unit sale in most stores.

"Oh, so if sales are down 2-4%, I might actually be even with L.Y. in units sold?"  Right! 

A second "Big Picture" factor: basic demographics. Who produced that BTS market of 6 to 22 year olds? 

Oh yes! They are Generation X, born between 1962 and 1978. That small group born after the Baby Boomers and before the Millennial Generation. Generation X is a decidedly smaller group than those before or after them.

"Back-to-School sales are disappointing." Oh really?! Maybe they are actually darn good! 

And maybe all these converging trends help explain why retailing is forever challenging. And so much fun!!

This Year, Back-to-School Season Could Kick Off Strong Fall/Holiday 2013

The 8 weeks between July 15 and September 15 mark the annual Back-to-School season. 

While "Back-to-School" merchandise is not the dominant category for most retailers, many retailers take advantage of the opportunity to bring shoppers into their stores. 

More so than most years, we see this B-T-S season as a key indicator of how Fall/Holiday 2013 might turn out for retailers.

This may surprise you: we anticipate 6%-8% sales increases during this year's Back-to-School season. 

The economy continues to improve, and consumer confidence keeps rising. 

But what really drives our hypothesis for such a strong B-T-S season is this: there will be far greater interest in discretionary fashion apparel than in recent years. 

Here's why. 

1. The Recession discouraged much of the discretionary spending; the focus had to be on basics. Now, fashion can re-emerge.
2. The competition represented by the "gee whiz" electronics for kids has subsided, as those devices have been acquired. They already are in every kid's backpack.

And that bodes especially well for B-T-S retailers. Plus, since they by and large have their inventories under control, margins should stay quite strong. Might that be great news for Fall/Holiday?

Whether or not you're in the Back-to-School business, we urge you to "go to school" on this year's results. It may be a delight! 

That Magic "Ten Point Checklist" for Retail Success

Over the years, we've been asked occasionally to pull out of our files the checklist that we MUST HAVE to help retailers raise sales and/or to raise margins.

Don't laugh! It's assumed that such a magic solution surely would be in our files. Of course, if we did have such a magic wand, we would see to it that every retailer in the world would be prospering!

Recently, we were approached to help a small shop "raise sales and raise margins"  (we had heard that wish list many times before.)  An attorney and an accountant who were trying to assist the shop owner to do that asked us, "Don't you just have a 10 point checklist of things to do?"

Hmm. The outside world does think that retailing is easy. All you have to do is follow the checklist.

Our response: Retailing is NOT easy. And, there is no magic 10 point checklist.

But...There IS a "Five Point Checklist"!

Retailing has always come down to just five basic to-dos. Just do these five things well, every minute of every day, and surely sales, margins, and profit increases will follow!

1. Have the right product  
2. at the right price  
3. at the right time  
4. at the right place  
5. for the right customer.

See how easy it can be?!

Use This 4-Day Fourth to the Max!

This hasn't happened for more than a decade. But this year, the stars align. The 4th of July is on a Thursday! 

We see it as a gift for retailers from the calendar gods. Four days, Thursday through Sunday. What a great opportunity for a true blow-out sale event.

The smart merchants can hardly wait. Neither should you!

Freedom from Old Merchandise!

Look around at your merchandise, wherever it is. On the shelf or in the backroom.

If it's not current, it's old. If it's old, mark it down! 

Turn it into cash. Take whatever you can get for any and all old goods.

Be ready to use those 4 days to the max. Start now!

• Round up the merchandise, and mark it down.
• Get the balloons and signs ready.  
• Think sidewalk sales. 
• Make it festive and fun.
• Group merchandise by color (you know which ones to feature!)   
• Play those Sousa marches (keeps people moving too!)

Do it right, and the customers will love it!

There are less than 2 weeks to go. Use the lead time, starting now.
Find out how revolutionizing it can be to have freedom from old merchandise! And, more cash in the old till!

That Other "Obesity Epidemic": 80% of Retailers Are Over-Inventoried Some or All of the Time!

Retailing is different from all other industries. Why? Because inventory is the only engine of profitability. Managing the inventory is truly the #1 responsibility of top management in retail.

And yet, about 80% of all retail operations are over-inventoried or out of balance some or ALL of the time!

• As such, these retailers become short or out of cash. 
• Or they are forced to cut margins drastically to get rid of non-selling merchandise. (Ahh, which is worse? Out of cash or out of profit??)

The reasons for this rather sad situation are many, but two major issues stand out.

• The sellers of merchandise, the vendors, are very well trained at their job - selling! And meeting sales quotas.
• Meanwhile, the retail buyers of the merchandise, who may be excellent selectors of product, are not so well schooled at the management part of their job: setting and meeting buying budgets.  

(The reps usually know that budgeting inventory purchases is simply a four-part formula, called "Open-to-Buy". But do you think they want the buyers - their customers - to use a budgeting system? Of course not! "Are you kidding?! We don't want them that smart!")

But are the buyers really the weak link? Not usually. 

Instead, the problem is traceable to senior managers who are under-trained – or under-committed – to their #1 responsibility: managing and controlling that inventory!!!

"Fitness Center" for Out-of-Shape Inventories

Those days now can be over! With some humble delight, we love that thousands of retailers from around the world are benefiting from this (cheap!) online resource from The Retail Owners Institute®: the Open-to-Buy Center. 

• Those who use the Open-to-Buy Center learn the basics of Open-to-Buy.
• Plus, they generate their own buying plans, all online, with the Open-to-Buy Calculator . Easy and fast for retailers. 

Click here. Go to the Open-to-Buy Center  See how this "fitness center" for out-of-shape retail inventories is helping to combat that other "obesity epidemic".

Knowledge is power! Some day soon, the playing field may be level!