2009 will be the “Brave New World” for retailers

Tuesday, December 30, 2008 by Chris Johnson.

Welcome to the Brave New World of 2009! Together we will be making history every step of the way. And no doubt, a year from now we will be better, stronger and more efficient. Let’s leverage our tools and your knowledge to set the new retail standards of excellence.

The obvious reaction is to shutter under performing stores that can be closed (most chains look at their 10%-15% worst performers but in this economy, many are looking at the bottom 25%-30%). Not only are expenses reduced, but the merchandise inventory and other assets can be re-deployed at busier locations. The key here is to retain the customers from those stores by “hand holding” them as they migrate to your nearest alternate location. Take care to move the repairs, special orders and layaways to the alternate, and make sure you have plenty of contact (mail, email, phone) with those and all the affected customers during the transition. Send the customers a special incentive (like a coupon or gift card) valid only at their alternate store.

The next most important action you can take is to prevent lost sales. Keep an open dialog with your store personnel to find out what would increase the “opportunity / sales” ratio. Is it the lack of inventory? Wrong inventory? Lack of credit? Wrong price? Training? Use these answers to brainstorm some unique solutions. Share them with us, and we can suggest how our software tools can help you implement those solutions. I look forward to your comments. Happy New Year! Chris

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