Sometimes it is O.K. to Break the Rules

Sometimes It’s O.K. to Break the Rules: An Insight for Modern Retailers
The dynamic business environment often challenges us to consider whether adherence to our traditional practices is always the best approach. This contemplation becomes particularly important in the context of retail, where evolving consumer behaviors and technological advances continually reshape the landscape. As Henry Ford eloquently put it, “If you always do what you have always done, you will always get what you’ve always got.” M1 cofounder Evan Wise echoes this sentiment, adapting it to the digital age by asserting, “If you always do what you’ve always done, you will get less.” The underlying message is clear: in the face of relentless competition and the digital transformation of retail, sometimes breaking the rules is necessary for growth and innovation.
The Evolving Dynamics of Retail: A Call for Change
In the world of business, there is an inherent tension between continuous improvement and the need for transformative change. Continuous improvement focuses on incremental enhancements to existing processes, ensuring efficiency and effectiveness. On the other hand, change signifies a fundamental shift or pivot, altering the very course of action. Successful businesses often blend both strategies to stay relevant and competitive.

Have you been in business for over twenty years, diligently honing your processes, only to find that you are simply “shining the apple,” as the saying goes? Or have you embraced change, implementing fundamental shifts in how you operate? The challenge lies in rethinking your rules and processes, questioning the status quo, and identifying areas ripe for innovation.
Reevaluating Retail Practices: Questions to Consider
Retailers can benefit greatly from periodically reassessing their operational norms. Here are some areas to scrutinize:

Markdown Strategies: How do you decide when and how much to markdown products? Are your first markdown decisions based on data-driven insights?
Inventory Transfers: If you operate multiple locations, what rules govern your inventory transfers? Are these rules optimizing your supply chain efficiency?
Logistics and Shipping Costs: How much inventory languishes on a UPS truck every night? Consider the shipping and personnel costs involved in moving this inventory. Are there more efficient ways of handling logistics?
Reordering Protocols: What criteria and timelines guide your reordering decisions? Are these processes truly meeting customer demand while minimizing excess inventory?
Marketing and Advertising: How does your current marketing strategy align with modern consumer trends? Are your advertising decisions anchored in data or mired in confirmation bias?

Embracing the Fork in the Road: Innovate to Thrive
Change, albeit daunting, offers unparalleled opportunities for growth and differentiation. Consider the successful pivots some businesses have made by reimagining their strategies and embracing new methodologies. Whether it’s introducing automation to improve customer service, leveraging analytics for better inventory management, or adopting a fresh marketing approach, the decision to break away from tradition can catalyze significant advancement.

Engaging with stories of businesses that have successfully navigated change can provide valuable insights and inspire your own journey. Many entrepreneurs have found success by daring to take that proverbial fork in the road, breaking conventional rules to carve out a unique niche in the marketplace.
A Checklist for Independent Retailers
To aid in assessing your current strategies and potential areas for change, consider exploring the following checklist:

Evaluate your current markdown strategy: Are there data-driven improvements to be made?
Review inventory transfer procedures across locations: Seek efficiency in supply chain management.
Analyze logistics and shipping expenses: Identify opportunities to cut costs and streamline operations.
Refine reordering criteria and timelines to align with market demand.
Reassess your marketing and advertising efforts: Ensure strategies are informed by data rather than tradition.
Engage with customer feedback and insights: Let these inform changes to meet consumer needs better.

Conclusion: The Balance Between Tradition and Innovation
In conclusion, the notion of breaking the rules should not be seen as reckless but rather as a strategic move toward innovation and progress. The ultimate goal for any retailer, particularly those facing the challenges of a digital-centric market, is to blend tradition with a willingness to adapt and evolve. It’s about recognizing when to disrupt established paradigms in favor of new, more effective methodologies.

Retailers who dare to challenge the norm will likely find themselves not only surviving but thriving amidst the competitive tides of contemporary business. By engaging in thoughtful introspection and courageously stepping beyond the usual boundaries, businesses can ensure they are positioned not just for today but for the demands and opportunities of tomorrow.

Marc Weiss

See Full Bio