5 NSRA.org
Since you are reading this in November or December of 2020 you have managed to endure and survive the many obstacles thrown your way during this unprecedented year. Economic shutdowns riots and protests mask mandates social distancing requirements as well as freaked out customers and concerned employees. What else can be added to the list that complicates an already challenging occupation right?
My my how things have changed
The financial ramifications of how to navigate these challenging times is surely a subject of focus as we close out this turbulent year and approach 2021 with hopes of “normalcy” whatever that means going forward.
Nowadays I often find myself longing for yesteryear. Step back in time for a moment to the golden days of retail. A time when merchants actually traveled to markets and trade shows to physically meet with vendors and colleagues to exchange ideas and buy merchandise for the upcoming season. A time when customers could enter your store and be greeted with a welcoming smile as opposed to being handed a mask lest they absent-mindedly entered minus a required face covering. Returned merchandise was simply put back in stock and not subjected to mandatory quarantine and disinfection protocols.
Yes back in the day marketing efforts were actually measured by how many customers could be enticed to shop the store during a given event or promotion. Imagine doing that today as retailers are told to restrict the number of customers entering for their safety as well as that of the employees.
Not so long ago you could actually shake someone’s hand or give them a gentle hug upon greeting them. Trying that today in the world of social distancing and you could easily become the target of a negative social media campaign.
Gone for now are the days when you entered a retail store and were offered a cup of coffee or a bottle of water. In 2020
Those pleasantries have been replaced with hand sanitizer and masks.
Whoever heard of curbside pickup prior to this year? And previously hoteling meant finding a place to stay when traveling not packing up this year’s goods to sell next year. Believe it or not there was even a time when employees were financially better off going to work rather than depending on unemployment and the $600 weekly government bonuses that accompanied it in many cases. I’ll admit to being a bit nostalgic but I miss the good old days of retail…2019!
It’s not all bad
Though there are many horror stories to point to this year there are several positive things that we can take away as well. One might compare this to a forest fire that may seem catastrophic at first but over time green shoots of new life begin to appear through the carnage.
Many retailers have stretched and grown to find new ways to do business that may never have been considered. Take for example the retailer who for whatever reason didn’t feel the need for a shopping cart on their website. Clearly without the ability to purchase online during “pandemic times” those retailers without such a vehicle were/are at a disadvantage.
What about the solidarity we witnessed as retailers vendors and landlords worked in unison for the most part as all recognized that we were all in this situation together? Let’s not forget our government whose quick response through the PPP forgivable loans and other lending programs brought much-needed relief to many.
We have also seen retailers become Ritchie Sayner
Navigating Obstacles and Finding the Positives
Ritchie Sayner
The financial ramifications of how to navigate these challenging times is surely a subject of focus as we close out this turbulent year and approach 2021 with hopes of “normalcy” whatever that means going forward.
continued on page 7
Published in the November/December 2020 issue of Shoe Retailing Today Copyright ©
2020 National Shoe Retailers Association Tucson AZ www.nsra.org. All rights reserved.
Coming together to brainstorm ideas for new approaches and to share news about resources is a powerful way to focus your energies on recovering from this tough situation. Set up a regular call with your peers or allies. It might be each night at a designated time or on a weekly basis. Focus conversations on resolving problems and forward thinking.
6. Be Realistic:
No one wants to consider permanently closing their business. But if there is no way to recover your current book of business you might have to get a temporary job to stabilize your income. This does not mean your business is closed. You are just temporarily focusing on a pragmatic solution. You can even try to continue your business and work a part-time job. This could take some of the financial pressure off of you. Don’t let your pride get in the way of taking advantage of a temporary opportunity to get some cash coming in your door.
7. Focus Your Mindset:
Make the decision that you will survive this unprecedented crisis situation through your own grit determination and effort. Try to find music activities or people that will support your positive mindset to be resilient and mentally tough. Determine to keep focusing on solutions. Give yourself some grace. This is an exceptionally difficult time. Be compassionate with yourself just as you would to a dear friend you care about. Find healthy ways to cope with the stress as you move through this time of great adversity. Take care of yourself physically emotionally and spiritually.
Final Thoughts
Over the decades small businesses have weathered recessions natural disasters terrorist events and strategic failures. They survived and even thrived afterwards due to the choices they made and the focus they developed to adapt to the changing circumstances. They focused their mindset on
Making Choices for Survival and Success
Making choices each day that were laser-focused on their short-term survival and their intention to achieve long-term success. They leveraged unexpected opportunities into cash-flow connections and tactics to survive and even thrive. You can do the same!
About Jill J. Johnson
Jill J. Johnson is the President and Founder of Johnson Consulting Services a highly accomplished speaker an award-winning management consultant and author of the bestselling book Compounding Your Confidence. Jill helps her clients make critical business decisions and develop market-based strategic plans for turnarounds or growth. Her consulting work has impacted more than $4 billion worth of decisions. For more information on Jill J. Johnson please visit www.jcs-usa.com.
Inventory Insights
More introspective with regard to their largest asset – inventory. Some have been able to pick up new lines of inventory that perhaps they couldn’t carry previously. In most cases they have realized that CASH is KING is more than a clever slogan but a reality by which to live by.
A good margin percentage is important but you can’t put a % in the bank! It doesn’t mean a thing if no one is buying. Retailers have discovered that less is more. I can cite several examples where stores are selling more than last year with much less inventory and way fewer markdowns. Who would have thought?
The 80/20 Rule
The 80/20 rule is still alive and well. Think of your own business as you read this. Where do the majority of your sales really come from? If you take an honest look at your inventory position you will undoubtedly find pockets of stock (or vendors) that you just don’t need to carry. These areas overlooked for the most part when times are good should be identified and eliminated as they contribute little to overall profitability. Now is the perfect time to again evaluate ALL vendors based on GMROI contribution so that you have the data to make the right decisions.
Final Thoughts
Give yourself a pass this year.
Few would argue that the path to retail success would likely be revenue growth coupled with inventory turnover.
This year however for reasons that are all too obvious top line revenue growth is turning out to be a near impossibility for most. It’s human nature to compare to previous periods and want to improve but this year was an outlier.
In some cases where new goods never received the exposure that they should have for reasonable sell through it may make sense to “hotel” them for next year.
Clearly if done on a large-scale basis this will affect turnover just as liquidating new stock at drastic reductions has a profound effect on margin. You have to decide based on your own situation which is the best route for you.
Don’t be too hard on yourself. Play the cards you are dealt the best that you can and move forward. And by all means don’t hesitate to reach out for an outside opinion if you think there might be a better way. We are truly all in this together!
I wish all of you a Happy and HEALTHY Holiday Season!
Until next year… ■
Ritchie Sayner is with Advanced Retail Strategies LLC an affiliate of Management One. Sayner’s book Retail Revelations: Strategies for Improving Sales Margins and Turnover (2nd Ed.) is available on Amazon. He can be reached at advancedretailstrategies.com.
Summary
The article reflects on the significant changes and challenges faced by retailers in 2020 due to the pandemic including shifts in customer interactions and business operations. Despite the difficulties it highlights positive adaptations such as the increased use of online platforms and collaborative efforts between retailers and stakeholders. The author encourages resilience and strategic decision-making to navigate these unprecedented times and to focus on long-term success.
“Give yourself a pass this year…Play the cards you are dealt the best that you can and move forward.”
Real-World Examples of Navigating Retail Challenges
The article highlights various challenges faced by retailers during unprecedented times and the innovative strategies they adopted to overcome these obstacles. Here are some real-world examples that illustrate these concepts:
- During the COVID-19 pandemic many retailers like Best Buy quickly adapted by enhancing their online shopping platforms and offering curbside pickup options. This allowed them to continue serving customers while adhering to social distancing guidelines.
- Local businesses in communities across the globe formed coalitions to support each other such as the “Support Local” campaigns which encouraged consumers to buy from local retailers to help them stay afloat during economic downturns.
- Retailers like Target and Walmart have successfully navigated inventory challenges by implementing data-driven strategies to optimize stock levels focusing on high-demand items and reducing excess inventory thus maintaining profitability even during challenging times.
