Retail Businesses Need a Proactive Action Plan

I heard a joke the other day, it goes like this: Do you know how to make a small fortune in the retail business? Start with a large one! I know, it’s a real knee-slapper, right? The only problem with this joke is that if it wasn’t so shockingly true in all too many cases, it just might be funny. How many retailers do you know where this scenario applies? Perhaps you are even one of them. If so, ask yourself the following questions: How did you get into this position? Why are you content staying in the situation? What steps might you be able... 

Good vs. Bad Retail Business Practices

Today’s lesson is about breaking bad habits and replacing them with good ones. Life and retail are habitual; we tend to do the same things over and over, repeating daily, monthly and even seasonal activities. In retail, habits good or bad, make your store what it is. If you recognize what behaviors need to be changed, then even a small effort can create big changes. Bad Business Habits Stop blaming the economy and the competition. How is it that some retailers are thriving and growing in this down economy? How is it that some retailers thrive... 

Reaching the Bridal Market

Now is the time when retailers must prepare for the fast approaching wedding season. While the height of wedding season lies in July, August, September and October, couples are thinking about their registries early. A recent study, The Knot Market Intelligence Bridal Registry Study, found that 1.5 million (88 percent) of engaged couples in the U.S. registered for gifts the past couple years. It further discovered that the average family member spends $146 on a wedding gift, while friends typically spend $79. And while there is an obvious big store... 

Improving Cash Flow

Strong, positive cash flow is a must for any thriving retail establishment. The benefits of positive cash flow are numerous: pay vendors on time, take discounts, expand or remodel, add brands, pay yourself more, and so on. Poor cash flow, however, forces retailers to make survival decisions they may otherwise not make. This is what I commonly refer to as, Management by Crisis. Decisions made during periods of difficult cash flow might include not taking discounts, paying vendors late, paying COD for inventory, not taking entrepreneurial risks that... 

How to Improve Cash Flow

Let’s begin with a simple multiple choice question. What helps to improve cash flow? A. Reduce expenses; B. Increase sales volume; C. Improve inventory turnover; D. Raise maintained markup; E. Properly timed deliveries; Or, F. All of the above. If you answered “F” congratulations, you are probably a savvy retailer. Cash is King in the retail business. Strong, positive cash flow is a must for any thriving retail establishment. The benefits of positive cash flow are numerous: pay vendors on time, take discounts, expand or remodel,... 

Body Language Solutions

Being aware of customer needs and expectations plays a large role in the acquisition of desirable results, such as a sale. No detail in evaluating your customer service should go unexamined, including body language. Owning a brick and mortar store involves plenty of one on one interaction. Whether your customers are coming in to browse, make a purchase, or return an item, you want excellent customer service all around, including a friendly face to face experience every time. Body Language Matters to the Customer It may be obvious that smiling when... 

Managing Seasonal Deliveries

As the saying goes, “Timing is everything.” Although selecting the right vendors and styles at the right price points is very important, establishing ideal delivery start and completion dates for inventory orders can be just as important. Before buying for any new season, you need to know which vendors have been the most profitable, as well as what styles and sizes sold best in prior seasons. Planning Delivery Dates for Better Profitability First, start by running a vendor profitability report. You will want this report to rank the vendors in... 

Cut Costs, Keep Payroll

With the economy always in flux and shopping behavior fickle, small retail businesses must keep their eye on making sales, but also keeping costs down. This doesn’t mean, however, that you have to cut cashiers or try to be manager, inventory specialist and salesman all in one. Despite being in an industry with a fast turnover rate, most retailers hope to find an employee who is dedicated to the store, its merchandise, and most importantly its customers. These employees are an invaluable asset to your business and its bottom line, making them the... 

Parking for Patrons

Retailers are aware that consumers’ fast-paced lifestyles demand a certain level of convenience during their shopping experience. Customers want to be able to find the products they need and checkout without any hassle, wasting a lot of time, or spending too much money. The good news is that this desired experience is within your control as you plan your store layout, select inventory, set pricing and employ a customer-friendly staff. Yet there are elements outside your store, and perhaps your control, affecting your traffic flow and ultimately... 

Off-price Buying: Strategies and Pitfalls

Many retailers spend more time planning their vacations than they do planning their inventory. Of course I can’t prove this, but it stands to reason given the fact that the average shoe store still turns inventory twice annually and is accepting of a gross margin return on inventory (GMROI) of less than $2. If we accept as fact that proper inventory planning is a key component to maximizing profitability, it makes sense that more time spent planning would lead to increased profits. Given that most open-to-buy dollars are allocated to initial or... 

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