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. 

The ApplePay "Wow!" Effect

 Consider these early experiences with ApplePay:

• Both cashier and customer say "Wow!" as transaction completes.
• Cashier explains "I haven't yet processed a return, but let's try it. Oh, it's done. That was easy!"  
• The really telling sign: customer admits to feeling giddy(!) when paying.

Talk about a new "Wow! effect" in retailing. But for paying?!

Apple as "Enabler" of Online Retail Success

With the iPhone and iPad, Apple pioneered the user-friendly devices for accessing the web. In our view, Apple thus became the enabler for the success of Amazon and all online merchants.

Now, the ApplePay "Wow! effect" may make Apple the enabler for brick-n-mortar retailers as well. 

Seems only fair, doesn't it?

That Haunting Halloween Question (and January Payables....)

As Halloween arrives, here's a really spooky thought:
Will you have enough cash to get you through the next 3 months? 

How to answer that? With a quick cash flow calculation. No retailer should ever be without it! 

And don't worry. This does not have to be hard. A Cash Flow plan has just 3 parts:

1. Cash coming in
2. Cash going out
3. The difference

And now, any retailer can know in minutes whether they will have enough cash to get through November and December and those January payables. 

• Go to our online "Speedy Form for Cash Control." It is available free at our Banks4Retailers.com microsite. 
• Then, fill it in for the next few months. It's like shining a light on that (Halloween) monster in the closet!

Then, one of two things will happen:

1. You'll discover that you will be "cash flow positive"! Sweet! You can sleep at night!
2. Or - gulp! - you will see that you will have a cash shortfall. But, better to know in advance, isn't it?! 

In either event, you still have time to make some adjustments.

Yes, You Have Choices

• As you start filling in our Online Speedy Cash Flow form, you will see that you can put in numbers for up to 6 months. 
• Or, choose to focus on a shorter time frame.
• Or, disregard the column labels and have each column represent a week.
• Or, you could choose to do it with The ROI's 3-in-1 INTEGRATED Cash Flow Calculator.  The choice is yours.

Depend on The Retail Owners Institute

Whenever you are haunted by cash flow questions, depend on The ROI. 

Nowhere else can retailers so easily look ahead, and "Turn on your financial headlights!" 

Time for Your "Inner Merchant" to Shine

As we have taught for years, anyone selling something to the ultimate consumer is a "retailer." 

However, only a small portion of these retailers are truly "merchants".

And now is the time the merchants can shine!

While we certainly are not economists (among other things), we are sensing that consumer confidence is generally stronger now than it has been in many Holiday seasons. 

And merchants recognize there is an opportunity to benefit greatly from a few carefully-selected additional markups this Holiday Season, and perhaps into the first quarter of 2015 as well. 

Don't by shy! If you have discovered unique merchandise and brought it in, do not undervalue your discerning choices!

• Identify that unique, non-commodity merchandise you have. (Perhaps 5%-10% of the total.)
• If you haven't already, take a markup that is bit higher on those carefully-selected items.

What's the worst that can happen? It ends up being marked down in 7 weeks?! Hmmm.

• During that time, those 5–10 days before Christmas, all true merchants will be "dumping" (that's understood, right?) merchandise they do not want come December 26. 
• So what if you still have some of this specialized merchandise at that time; you still are likely to generate some revenue from it.

But, between now and then, get that extra markup wherever you can! This is not the time to leave money on the table.

The merchants of the world assure you: this is not being greedy. It is being strategic! 

You know, like a merchant!!