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The "ripple effects" of the Minimum Wage changes are affecting all retailers. The biggest question: not "What will this mean?", but "How will we address this in our operation?"
First issue, of course: WHEN will your business implement any changes? Well in advance of the laws? Or, coincident with the laws?
Why does the timing matter? Because of the perception. Are you out in front of this issue? Or, seeming to lag behind?
Next big issue: IF the minimum wage (the "floor") of the pay scale in your business needs to be raised to comply with the laws, what effect will this have on the wages of your mid-management team?
- Your current mid-management people may expect a separation between the minimum wages paid and their paychecks.
- If the minimum wage increases cause you to increase the wages of your entry-level employees, might you also need to increase the pay of essentially ALL of your employees.
- The bigger ripple effect may be how other employers in your community handle these first two issues. That is, are you remaining competitive for attracting and retaining the best people?
There are no right or wrong answers here. Every retailer must evaluate this, and determine what is appropriate for their business.
And, of course, that analysis must include how you will be able to pay for any changes in payroll.
- Increase prices for your customers?
- Reduce expenses in other-than-payroll areas?
- Expect more productivity from employees?
- Introduce other forms of compensation, such as more flexible scheduling, more paid time off, etc?
Again, there is no one-size-fits-all answer. But, we sure encourage all retailers to ponder this issue, and to examine all of your options.
Get Out in Front of This Issue!
As we all know, good people are very hard to find. How you choose to compensate - and therefore motivate and retain - your key staff is a key factor in the on-going viability of your business. We urge you to get out in front of this issue!
Want more ideas? Check out this thoughtful article from The Library for Owners at The Retail Owners Institute®: Beyond the Paycheck: Motivate Employees with Creative Compensation.
You've heard it. The "conventional wisdom" that suggests that retailers should move away from the Baby Boomers, and retool their operations to appeal to the Millennial Generation – those "digital natives" who now are 18-35 years old.
Hmm. Follow that conventional wisdom at your own peril! Instead, we believe retailers should focus on making their stores MULTI-GENERATIONAL. After all, each group is ± 80 million people, totaling about half the U.S. population.
You don't have to choose one group at the expense of the other. Cater to both of these major market segments. Yes, simultaneously! (Just not the same!)
- Do NOT ignore or marginalize the Baby Boomers as being in their "sunset years".
- Show the Millennials the respect they deserve.
"One size fits all" does not apply!
By strategically and pro-actively managing your operation to be Multi-Generational, you can – and must! – treat the Baby Boomers and the Millennials the way each group most wants to be treated.
- Baby Boomers have always done things their way, and show no signs of changing now. More so than prior generations, they are healthy, active, traveling, engaging in causes, participating in their communities – and yes, spending on themselves and their families. They are internet savvy, but still do "recreational shopping".
- Meanwhile, the Millennials are a market not to be ignored. While they may not fit the conventional definitions of "families", they are forming households, having children, commuting to jobs, going places and doing things. They are discerning shoppers, and will "put their money where their mouth is". There are causes they care about, and will mirror that in their shopping choices. Their "comparative shopping" is done online, and they are very purposeful when it comes to purchasing. They will not linger!
Retailers must think strategically about your unique competitive advantages. Then, update them to cater to EACH of these important market segments, on parallel tracks.
It's called "multi-tasking", and you can do it!
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
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!
Powerful Perspective • For and About Retailers
Whether you are a retailer, or you work with retailers, The Retail Owners Institute makes it easy for you to get a quick financial health assessment.
Go to the Benchmarks page on The ROI site, and choose any one of the 53 retail segments listed. When that page opens, immediately see 5-Year Trend Charts of these 6 key ratios (out of more than 40) that The ROI has identified for retailers to regularly monitor:
- Pre-Tax Profit
- Gross Margin
- Inventory Turnover
- Debt-to-Worth Ratio
- Current Ratio
- GMROI
These Benchmark Charts, available only from The ROI, offer a snapshot view of the financial viability of each retail sector.
Compare and Contrast Several Segments
Now, look at some more retail segments. (Use the Benchmarks menu bar tabs at the top of each page.) Fascinating, isn't it?
Quickly compare and contrast different types of retailers; gain insightful perspective.
Want to Know How Your Stores Compare?
Of course you do!
See the "Do Your Own Ratios" tab? Click on that tab from any of the Benchmarks Segments pages, and use The ROI's KEY RATIOS Calculator. (Yep, that's free too.)
- Just enter a few numbers from your financial statement. Immediately - and automagically! - see all of your Key Ratios.
- Use the built-in comps from 53 retail segments to compare your results to the median-performing retailers in your segment.
Available Only at The ROI
The Retail Owners Institute® makes these Benchmarks charts and the KEY RATIOS Calculator available online, anytime, 24/7, for free. Be sure to take advantage of this information!
