It’s customary to look ahead at the retail trends that will shape 2012 and the buzz, profits and challenges to profitable retailing. Here then are the good, the bad, and the ugly… Continue reading 12 Trends That Will Cause Bricks and Mortar Retailers To Lose Sleep in 2012 »
Posts Tagged ‘predictions’
12 Trends That Will Cause Bricks and Mortar Retailers To Lose Sleep in 2012
Why Cutting Prices Didn’t Work During the Depression And Won’t Today
They’ve started again.
The stories. The fear. The media saying we’re scared of a bad holiday – despite optimism among the trade group the National Retail Federation.
What do the stories want to present? That retailers will have a Continue reading Why Cutting Prices Didn’t Work During the Depression And Won’t Today »
Predictions For What Retail Customers Will Find in 2010 by Bob Phibbs, the Retail Doctor
This is part two of predictions for both retailers and customers in 2010…
For Customers:
- Expect less, pay more. With Wall Street demanding increases, big boxes will continue to run on skeleton crews to keep their percentage of labor expense in-line with lower sales. With lower inventory, better computer modeling of demand and lower costs, sales will still appear but they will be more selective what is and isn’t included.
- Hit and run. Many businesses were barely hanging on the last few years. Several will leave with advance notice but more and more you’ll find they left in the night to avoid the landlord locking their doors and keeping their merchandise.
- Everything will be cheaper built in order to make price points. That means for many items quality will deteriorate and may even lead to unsafe products. Look no further than last Sunday’s 60 Minutes story about cheap holiday lights causing house fires. Better merchants will educate customers, not just stick a sale sign on their wares.
- Coupons and free food will still be the promotion of the day. If you’re willing to be baited and switched or told, “we ran out,” chase the deals – otherwise if it sounds too good to be true, there’s probably a catch.
- Expect to have to wait for goods as “just in demand” inventory stretches suppliers to the limits. Think less stockpiled merch and more tags as to how to order it online for delivery in a few days.
- Look for states to try to balance their budgets by getting the tax revenues that have given online stores an unfair advantage over their bricks and mortar competitors.
This was part 2, if you want to know what retailers can expect for 2010, it’s here.
2010 Predictions For Retailers by Bob Phibbs, the Retail Doctor
It’s the end of a year when we as a country stared into an economic abyss and it retreated. From takeovers to bankruptcies, bailouts and the ridiculous assertion shoppers had “fundamentally changed,” retailers heard it all. It was a lot of things but many new developments will challenge both shoppers and retailers as the economy picks up steam.
Johnny Carson
For Retailers:
- Let’s make a deal. The hagglers are going to explode on the shopping floor. Many customers took tentative steps at asking for a discount in 2009 and were rewarded on the spot. Expect their new-found confidence to challenge everyone’s prices; if for no other reason than they can.
- The iPhone and other cell phones’ shopping Apps will grow to help people price-check, locate similar products as well as pay for all of it. It will be even more important to have knowledgeable sales staff to add rather than scoff at what online access provides customers.
- Landlords will hold the line on their rent reductions. They are pressured and over-leveraged and will be less willing to “wait until business gets better.” It may mean becoming their adversary – don’t do it – you both need each other.
- Fewer vendors will mean it will be harder than ever to differentiate your merch compared to your larger competitors. Look harder.
- Silent partners will open their mouths. Whether that is your wife, husband, significant other or relative they will be looking at the time and money spent in running your business and their return on investment. That means you may have to explain why you are a chronic over-buyer and their money is sitting on your floor gathering dust, not in their bank gathering interest.
- Big boxes have too much space for too much merchandise, look for them to open aisles, close off areas and generally look thinner. Smaller retailers should do the same. As online shopping continues to grow brick and mortar stores will have to be seen as showcases and playgrounds to try out items rather than warehouses.
- With the economy picking up in many places, your best and brightest employees will be open to looking elsewhere for a paycheck. Even worse, your “Bitter Betty” employees will be even less likely to leave on their own.
- Customers will come in intending to trade down. There’s a reason average mattress transactions are down 20%, people can forgo alternatives when it is price-driven. Sales training will be essential to point out why your premium goods are worth it more than ever.
- Retail sales will continue to improve for those willing to do the hard work and actively capture sales.
Coming up tomorrow: Part 2- what retail customers can expect in their local retail stores.
