I just finished reading “Lords of Finance”. Now that does not make me an expert on finances but, I did learn a lot of information that makes me more knowledgeable about what to expect in a downturn. I feel it is my responsibility to calm nerves and encourage “what we are doing right”.
Many of our customers are doing well. Some are doing so, so. What is the difference? The customers that FEEL they are doing well have modified their expectations and now order based on excitement for originality and the marketplace. If they sell half of the merchandise they ordered in the past and they quickly sell out of half those items, they replace those items with exciting new items that they feel will comfortably provide their customers with new and winning merchandise. If they are waiting to “sell out” of 90%, a basis of a wonderful line in a perfect economy, they will be waiting a long time. Customers expect a bit more from their local and resort gallery, gift store, museum store, theme store and boutique. Just as they expect better prices than in the past on regular merchandise, they expect better selection on unusual merchandise. An example, you say? Two years ago, I would expect a normal retailer to have an item that I wanted immediately and I would buy it at any price. Now I expect to wait for the plentiful item until I see it at the price I want. On limited edition items, I want the unusual but, I will wait until the retailer has the item that makes me say “yes”; I like to see a good selection before I am ready to part with my money. Therefore, your presentation of merchandise must be exceptional, as well as well priced.
Some retailers think everything should be the same and it simply is not. Overlooking the ups and downs of the marketplace leaves us feeling confused. This confusion finds its way into the retailer’s store environment. This bit and piece approach leaves a consumer just as confused as the store environment’s statement . It is critically important to have an exciting environment if you expect to succeed in a somewhat more difficult sales environment. Just having minimal selection is not going to get “sales excitement” on the front burner.
I can reassure you that things are getting better and the smarter retailers will be around after this entire up and down marketplace smooths back to a hum. I plan to hum my way through all the chaos and make the hum my own soothing statement of success.
Our main concern: are we improved people from all this uncertainty? Are we continuing to treat others well, even with our stress test of inner strength and do we have the fortitude to expand our concepts of life, as our world is a different place than when we were children? Adjustment, thoughtfulness, and calm will bring us success. I highly recommend it.
I stand reaffirmed. I predicted that the economy was getting better and we had reached the bottom in my last blog. CNN did come out with a statement yesterday saying we hit the bottom in March and reaffirmed that the stock market precedes recovering: economic figures in unemployment always lag behind in economic downturns.
I am very pleased that the world is looking sunny once again and my sigh of relief was not wasted.
So how should we all proceed in this up and down spiral/swirl? Cautiously, as many factors are out of our control. This is not a bad thing, as it teaches us to follow our inner whisper. It gives us confidence in our inner voices. Now that all our stock advisers gave us the wrong information and we did feel it was time to switch from stocks to Money Markets, our advisers said…“Are you crazy? Keep it in for the long term.” Well, their years of good advice and “knowledge” turned out to be dead wrong. We are the ones living with the aftermath of their suggestions. Now we can return to our inner voice and follow that advice. Our advice is the best advice, since we know ourselves and our needs the best.
Our sales follow the stock market. When the stock market goes up, our sales go up. Unemployment has not affected our consumer for the most part. We tend to attract the customer that has means but, with a conscience, and keeps in mind world attitude. Thank goodness our current representative on the world stage is getting a positive response. It will be so nice to feel like being an American traveling the world is a good thing.
Now, for direction in our businesses. Many have had to fire employees or not keep them on after Christmas 08 sales disasters. It is time to think about rehiring slowly. Make the major effort of finding an employee in need of a job; there are great people on the market today. It is time to snatch the best ones up now. Get them trained for the up and coming summer market in resort areas and begin to think rehire in the late summer for Fall/Holiday 09. I stick to my prediction that this year will be the best in 20 years.
We are finally getting exciting news.
Sales figures for February 2009 are nearly steady with February 2008 in the retail marketplace.
The percentage of increases of unemployment has declined for the last two months.
Two groups of consumer stocks: a) consumer staples, example Campbell Soup
and b) consumer discretionary spending (this is our industry: museum stores, galleries, boutiques, theme stores) is trending upward in the last two weeks.
These factors are indicators of the economy’s health.
This means the deep recession is over, the tsunami of consumer spending is upon us. This is the time for the retail stores to prepare for the onslaught of consumers biting at the bit to buy. We can begin our huge sigh of relief and exhale.
Now how to prepare. Begin by adding on to the orders of your favorite vendors and make sure you have enough stock to weather the increases in demand. Now most retailers purchased about half of what they wanted. It is time to increase the selection by 50%. The increase is a must for timely deliveries for Easter and Mother’s Day. The Memorial Day increase in sales will also be about 50% and the total tsunami will hit in the resort areas from July 4th week-end to the Labor Day week-end. The idea is to have enough stock for the Memorial Day week-end to test reactions and then go full throttle for the July 4th/August deliveries.
Now for Christmas season 2009. I am predicting this Christmas season to be the best in twenty years due to the “finally paid off my credit card” psychology and how I desire to get the few special things I have wanted for the last two years. Restaurants will finally see their customers returning and our retailers will have a wonderful look of appreciation on their faces starting after inventory 2010.
Smile…you are on “Candid Camera”. Enjoy all your success, we more than desire it.
Elaine
We say “bold”
And you say “No”.
We say “Burnt Orange and Deep Turquoise” are hot
And you say “neutrals” is my customer.
The question is “Who makes fashion”, consumer demand or fashion leaders?
This is a decision for each store owner to decide for themselves.
As the economy tightens, our retailers have gone “safe”. This means tried and true pieces that have been proven in every line are the “sure bets”. Unfortunately, the excitement of fashion becomes non-existent. This translates into no enthusiasm for your stores’ selections. Can we make shopping any duller?
As a tried and true fashionista, I totally love new designs, new clothing and new merchandise. If you want to kill your sales, kill your selection.
My advice is continue to go safe with a “must have” item or two from your favorite resources. If you feel, “Irresistible, I must have it”, I can guarantee your customer will feel the same way.
Just keep in mind, that we got into this industry because, we love fashion, art, beauty and trends. It is our job as leaders in this industry to restore regrowth to our spirits and in turn our economy.
What are you doing to make this happen?
