Reality Check for New Retailers

As you may be aware, we are witnessing a surge in new retail businesses. Most of these are entwined with the internet. They rely less than ever before on a brick-'n-mortar presence, further reducing the "barriers to entry."

Owning a retail business can be very exciting, challenging, creative, and a wonderful way of life. 

In fact, we believe that the very best citizens in every community are the owners of retail businesses.

Two groups of individuals are the primary drivers of this current surge of new retail concepts: (1) the Millennials; (2) the Baby Boomers, especially those in their 50's and early 60's.

It's this second group, the Baby Boomers - who of course have never lacked for confidence - that has been most likely to assume "Retail? Why not? That looks so easy!"

Many of these Baby Boomers are "refugees" from corporations, relishing the opportunity to "Finally! I will get to be my own boss!! And manage my own time."

But, these newby-owners often are startled to learn an old axiom:

"As Owner, yes, I do get to manage my own time. That is, I get to choose which 80-90 hours each week I work!"

SURPRISE!!

Minimum Wage Issues Demand Maximum Judgment from Owners

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.

Get Ready for "Multi-Generational Retailing"

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!

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!