To subscribe, click here. To return to list of past issues, click here. December 2009
2009 Comes to a Sputtering End!
ARE THERE LESSONS TO BE LEARNED FROM THESE FAILURES?
These companies didn't go bankrupt for the same reasons, but
they did share some common characteristics. The first is too
many stores! It is not easy to manage a big chain. Some of these
chains opened new stores far too quickly. It is frequently
easier to open new stores than to actually manage those stores
once they are open. It is also not easy to keep those stores
stocked with just the right merchandise with stores in different
areas of the country.
TAXES ON INTERNET SALES!Among the most perplexing things about Internet retailing is why online retailers do not have to collect and pay sales tax. I am certainly not alone in believing it is long past the time these retailers should be doing business under the same tax requirements as those retailers operating stores. On December 27, San Jose State University business professor Randall Strauss wrote a thought-provoking piece in The New York Times about amazon.com and how it generates billions of dollars in annual sales but collects and pays sales taxes in just five states. Maybe one day we will see the playing field leveled. KUDOS TO BEST BUY!
LOOKING BACK ON HOLIDAY 2009!Among the many changes in consumer behavior was that far more people waited until the last minute to do their Christmas shopping. This trend has grown every year for the last five and will continue into 2010. We will begin to see real sales results next week from the major chains. Hopefully those numbers will be bolstered by late season shoppers. There are a couple of things we know already. Discounting was rampant. Internet shoppers spent more online than any year before. Sales could be up by as much as 10 percent. The other area that likely saw real growth for the season was consumer electronics. Although sales totals were up, profitability could be a major concern because prices on many of these items went down.
On the Road Again in 2010I have some great opportunities to speak to some wonderful audiences in all kinds of retail segments:
I'd love to speak for your organization. If you're planning a convention, trade show, or corporate conference, give us a call at 800-766-1908. Here's wishing everyone a healthy, happy, and prosperous new year!Until next month...
It is always a challenge for independent retailers when
consumers cut back and limit their spending as they do during a
recession. Yet, in the middle of one of the most severe economic
downturns in memory, there are independent retailers who are not
just surviving but thriving. Any retailer who wants to build a
more successful business can learn some extraordinary lessons
from these superstar independents. Participants will learn how...
--Independent retailers stand-out and thrive against much larger competitors including national chain stores.
This is a program retailers won't want to miss!Whether you're planning a convention, trade show, corporate conference, or managers' meeting, a presentation by George Whalin will add value for your attendees. Check out George's other presentation topics at whalinonretail.com.
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How we look back on 2009 depends a great deal on one's
perspective. For retailers and suppliers who responded quickly
and made fundamental changes in how they did business when the
recession began back in 2008, this year wasn't a disaster. It
may not have been all they wanted it to be, but with reduced
operating costs, adjusted inventory levels, and lower sales
expectations, many such retailers saw bottom line profits.
On December 28, Best Buy ran full-page ads in some of the
nation's largest newspapers with this headline. "To most stores,
the receipt is the end. To us, it's just the beginning." The
text below went on to explain Best Buy's no-hassle return and
exchange policy. It described its "Twelpforce" experts who are
always available either online or by phone to answer questions
and explain how products work. And it provided information on
contacting Best Buy's Geek Squad. It's refreshing
when a large retail organization looks at the sale as just the
beginning of its relationship with the customer.
On January 11, the NRF and American Express OPEN Network will be
holding a very special seminar as part of the NRF's 99th Annual
Convention. The seminar will include three speakers presenting
topics specifically for independent retailers. The event will
begin at 9:00 a.m. and will end at noon. I will be one of the
speakers and will be hosting a panel of independent retailers
from my book Retail Superstars: Inside The 25 Best Independent
Stores in America.
