Retail Empowerment In Challenging Times

nThe new economy will be a real test for the smaller retailer,nno question. Consumer spending is down, credit availabilitynhas been curtailed and unemployment will creep upwards.nnSmaller retailers will experience lower levels of traffic andnmore indecision by consumers that visit their stores untilnbuyer confidence in restored. Although it may be impossiblento see right now, the long term effects of this economic ndownturn (provided we do not face a catastrophe likenanother war or the collapse of the American dollar...) willnbe of benefit to the retailer. nnThe biggest chunk of consumer income is absorbed by thencost of their homes. Reductions in house prices will makenthem more affordable to qualified buyers once we get throughnthis financial storm. This will actually make consumerndisposable income and buyer confidence stronger in timesnto come.nnThere are obviously many factors that the small or largenretailer cannot control in these challenging times. Howevernyou are empowered to control some critical elements ofnhow you do business to help bolster morale and enhancenyour success level until the retail landscape improves:nn1) Stop reading and dwelling on all the bad news that younencounter in the mainstream media. Newspapers and TVnnews shows are out to sell all the news they can, and mostnnews is invariably bad. Reading all the doom and gloomnfulfills their agenda and compromises yours.nn2) Keep positive by developing creative solutions in yournparticular business that draw in traffic and reduce thenparasitic costs in your business. Read, analyze and ACT!nn3) Network with other retailers. Organize a handful of themnin your mall or in your community and meet perhaps oncenevery two weeks over coffee to share ideas and information.nBy reaching out to your retail cohorts, you'll improve nthe quality and security of your community. Most nimportant of all, you'll all help one another get throughnthese challenging times. You're not in it alone!nn4) Reduce capital costs by sharing, lending or renting yournassets between yourselves. Make a list of tools and othernassets between the members of your new retail network.nInstead of buying a $200 wet shop vacuum for onencleaning job, borrow one from another retailer in your network.nWhen they need to borrow your power tools, you'll benreturning the favor and no money needs to change hands.nn5) Recycle, reuse and repair your store equipment. The acidntest of any new purchase is whether it enhances thencustomer experience or not. Can you repair that wobblynfixture for now, or give your existing carpets a fresh looknby steam cleaning them instead of replacing them? nn6) They say that today it's a buyer's market. That's veryntrue and it also applies to you as a retailer when you buynfrom your suppliers. Renegotiate payment terms andnask for a reduced price structure on items you buy. In thesenchallenging times, your suppliers also need to share the nburdens. The more suppliers you have in your arsenal,nthe more negotiating power you'll have.nn7) Consider sharing your space with a complimentary ornnon competing retailer. In the last economic downturnnaround 2000, in the wake of the dot com collapse, I sawna number of examples of this. One retailer who sold bicyclesnsplit up his shop on main street and shared it with a womannwho needed space to sell women's handbags. Although onen business had nothing to do with the other, they werennon-competitive and the arrangement enabled both ofnthem to survive and prosper. Today, eight years later,nthey still happily operate under the same roof.nn8) Tap the minds of your staff too. They have a wealth ofnexperience, opinions and information that can help yournteam weather the storm. Appreciate what they think andnthank them for their loyalty and support.n nnIf you think about it, the small retailer is empowered in manynways to reduce overhead as sales soften. Above everything elsenassociate yourself with people who think positive about whatnCAN be done and avoid the purveyors of doom and gloom.nnThink positive and take action, and you'll get though this newnretail era. You'll be in a stronger position to prosper as nconsumer confidence and spending returns to lesser butnmore stable and calculated levels than the recklessness wenwitnessed up to this recent economic downturn.nnTAKE ACTION TODAYnn1) Talk to staff about the aforementioned tactics. Solicit theirnsupport and involve them in your action plans.nn2) reach out to other retailers and create that valuable network.nShare ideas, equipment and expertise. Help everyone get throughnthese leaner times.nn3) Stay positive and associate with positive people. Avoid thosenthat just dwell on all the bad news out there.nn