Embracing Resilience: Retail Strategies for a New Year

7 NSRA.org

I’m sure I speak for many of you by stating that I am happy to close out 2020 and begin a new year. Given my chronological positioning such that it is I’m not looking for ways to expedite life’s journey. However with the numerous well-documented challenges endured by all this past year who wouldn’t be ready and willing to embrace a new beginning?

Last year’s hardships are hopefully in the rearview mirror as we await whatever the new year’s challenges may bring. What lessons have been learned that might serve us well in the upcoming twelve months? Many retailers discovered new ways of doing business. The creation of online shopping options and virtual presentations on social media platforms to name two.

The new year blesses all of us each calendar cycle with an opportunity to pause reflect learn from the past and reset in all areas of life. From a business perspective it’s a time to review our merchandising approach. What worked that we can build on and what didn’t that we should change? Areas to be scrutinized include merchandising store operations expenses and personnel.

Merchandising

Merchandising is a broad area. It can refer to how goods are presented and marketed as well as vendor relationships. Will the upcoming year require the same protocol of masks and social distancing requirements of last year or will things settle down to where they were pre-COVID? Time will tell. Will a higher percentage of business be transacted online versus in-store? If so is your business ready to accept a “new normal” in 2021?

Some vendors might be expanded while others are reduced or in some cases eliminated. This past year affected all of us and the wholesale world is no exception. Production problems caused late or cancelled deliveries bankrupt­

Supply Chain and Customer Service Challenges

Supply chain interruptions and changes in sales personnel affected customer service. In spite of all the issues most of you not only survived but in many cases ended up stronger than you might have thought possible.

Merchandising Metrics Review

As difficult as it may be review the current merchandising metrics. How cash flow was handled how merchandising problems were dealt with as well as the freshness of the inventory are all questions that should be answered objectively. January is also a great time to review the current classification structure.

• Are there categories in the current merchandising structure that have become obsolete?
• If so replace them with emerging categories that might yield more upside potential and commit to adhering closely to your merchandise plan.

Revisions may need to be made in sales forecasting both up and down to adequately reflect current trends. This is key to a successful merchandising strategy and should be done regularly.

Marketing Operations and Personnel

Does your current marketing strategy reflect any changes to your business? Perhaps more funds need to be devoted to online marketing and social media. Perhaps adding online marketing is now justified as the percentage of e-com business continues to grow.

This year brought about safety protocols never before imagined. Evaluate how your customers and employees are reacting to them and determine if any changes need to be made.

Finally review year-end financials carefully. Determine if current expenses are in line not only with industry norms but with your projected volume. Since operating expenses can consume up to forty-three percent of total sales it is important to budget them just as Ritchie Sayner.

New Beginnings

Ritchie Sayner

The new year blesses all of us each calendar cycle with an opportunity to pause reflect learn from the past and reset in all areas of life. From a business perspective it’s a time to review our merchandising approach.

Continued on Page 9

Published in the January/February 2021 issue of Shoe Retailing Today Copyright © 2021 National Shoe Retailers Association Tucson AZ www.nsra.org. All rights reserved.

Cost-Effective or Profitable Manner?

Have new opportunities emerged that you have not acted on yet? If you need additional resources to take advantage of these opportunities identify the strategic investments you need to make. These can include investing in the education of your staff buying new equipment or diverting current expenses into new opportunities that will provide you with a better return on your investment.

If you need additional team members but are not ready to invest in full-time positions identify opportunities to expand your relationships with vendors who can fill the gap. Or find subcontractors or contract staffing firms who can provide you with the flexibility you need as you make a spending transition.

Get Back to The Basics

Focus on your customer and the activities that drive revenue. Identify the key information you’re going to track and the data sets that will help you identify the micro trends that have emerged in the last six months which may set a new course for your future. By drilling down into who is buying from you and why you have a new foundation of insight to use going forward.

Get close to your customer. Understand how much their decision criteria may have shifted during the past year. Are you prepared with your marketing messages sales team and social media strategies to match these criteria and build (or rebuild) relationships with your customers? Understanding exactly where your customer’s mindset is today provides you with new insight on what it will take to remain competitive and drive revenue consistent with your strategic vision.

Final Thoughts

Few strategic approaches are ever perfectly executed. The complex marketplace we operate within ensures that some adjustments will be required. By realistically assessing the marketplace and evolving trends you exponentially expand your potential for long-term strategic success. Just continue to adjust your tactical execution and deepen your value to those you serve.

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. She has a proven track record of dealing with complex business issues and getting results. For more information on Jill J. Johnson please visit www.jcs-usa.com.

• Go over every line item in your operating budget and take any action needed.
• The first of the new year is the opportune time to review current staffing and decide if changes to the lineup are warranted.
• It is important to follow through with year-end reviews if promised and document the same in personnel records.
• If job opportunities exist will you promote from within or go outside of the organization? Sometimes new ideas from the outside can bring about a fresh perspective.

“What Doesn’t Kill You Makes You Stronger”

The German philosopher Friedrich Nietzsche’s aphorism from the 19th cen­

Tury pretty much sums it up.

Though this year has been disruptive to put it mildly most retailers learned valuable lessons that will serve them well for years to come. Many learned which vendors were partners in the true sense of the word by supporting them with inventory price adjustments and modified payment schedules that were palatable. Others discovered that landlords really did care about their wellbeing with rent relief.

From my vantage point focusing on inventory control

I saw retailers learn that they could actually sell the same or more with a streamlined vendor mix and less inventory. I witnessed how those who kept cash available and a constant flow of new merchandise arriving regularly were rewarded with profitable full price sales as customers began to emerge from isolation. Customer service became much more than a trite slogan when I saw store owners walking purchases out to customers in waiting cars delivering them to their homes or working with them individually after hours in the store out of safety precautions.

Product classifications like athletic shoes sustained many a merchant when the need for dress shoes vanished as more people worked from home and avoided social gatherings.

These are just a sampling of the positives that came from this year.

Sometimes it can be difficult to recognize good if we don’t know what bad looks like. I sincerely hope that all of you have learned lessons from the past year that will help you become better retailers in the coming year.

“I am thankful for my struggle because without it I wouldn’t have stumbled upon my strength.”
— Alexandra Elle

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.

New Beginnings

Continued from page 7

Article Summary

The article reflects on the challenges of 2020 and emphasizes the opportunity for businesses to reset and adapt in the new year. It highlights the importance of reviewing merchandising strategies embracing online marketing and optimizing operational expenses to align with current trends. The piece underscores the resilience of retailers and the lessons learned which can guide them in achieving long-term success.

“I am thankful for my struggle because without it I wouldn’t have stumbled upon my strength.” — Alexandra Elle

Real-World Examples of Adapting to New Retail Challenges

In response to the challenges faced during 2020 many retailers adapted by embracing new strategies and technologies to thrive in a changing environment. Here are some real-world examples of how businesses have successfully navigated these changes.

• A local boutique launched an online store to complement its physical location allowing customers to shop safely from home. This move not only kept sales steady during lockdowns but also expanded their customer base beyond their immediate geographic area.
• A national retail chain implemented virtual consultations via social media platforms enabling customers to receive personalized shopping assistance remotely. This innovation helped maintain customer engagement and satisfaction despite reduced in-store visits.
• An electronics retailer revamped its merchandising strategy by focusing on high-demand product categories such as home office equipment and gaming consoles which saw increased sales as more people worked and entertained themselves at home.

Discover Proven Retail Strategies!

Explore expert insights and actionable advice in
Ritchie Sayner’s renowned book:
Retail Revelations – Strategies for Improving Sales Margins and Turnover 2nd Edition.

This must-read guide is perfect for retail professionals looking to
optimize their operations and boost profitability.

Amazon Rating:

★★★★☆

4.6/5

Purchase on Amazon