For over 15 years of being in service to countless retailers worldwide, we at Retail Smart Guys have seen the ups and downs of the retail industry.
Some retail declines come unannounced, while others show some signs. For instance, a sudden drop in the stock market, store closures because of the COVID-19 global health crisis, or typical slowdowns that usually exist within the retail cycle.
Retail deceleration is evidently felt in your stores, as it can negatively impact your operations. So, as a retailer, you must know what to do during these events and quit making mistakes that could only worsen the already worsening situations.
Hence, let’s take a look and discuss how you can deal with and recover from it.
- Frequent Data Checking and Analysis
Checking sales trends should be done as frequently as possible (typically per week), and consider consolidating these data by month to analyze your financial standing. By doing this, you can observe the signs of an upcoming retail decline and be prepared to face such circumstances.
- Know your Highest Profit Margins
After seeing the possible arrival of a retail slowdown, you need to gear up and take advantage of your most profitable merchandise categories before this demand decreases. Keep this in mind to boost sales in your business in anticipation of a retail descent.
- Determine Margins for OTB
As a retailer, you must determine what aspects of your business are making money ahead of a retail slowdown. This can be a great help in your open-to-buy planning, as you can strategically fund a profitable category while reducing or cutting off those that do not.
- Markdown Items
A retail slowdown means less business activity which could result in a slow entry of revenues. Although markdowns do not solve this problem, they can be an efficient tool to continue making sales during a downturn. A well-crafted promotional strategy can keep things going in your business and help the disposal of almost obsolete products.
As you might observe, the discussion above leads to one central topic: your business’s financial and inventory plan.
So as you are about to face an upcoming slowdown, you need to take the four necessary steps on what is about to transpire.
First, look for a premier consulting company, like Retail Smart Guys, with undeniable expertise honed through time.
Next, leave us a message so we can connect with you.
Third, let’s discuss your options on how we can counter retail slowdowns.
Finally, avail our services that target improving your inventory, marketing, merchandise, and open-to-buy planning, which are all priced affordably despite the inflation.
There’s no time to lose, as you might be dealing with a downturn anytime in the future.
Get your skates on and start rolling with Retail Smart Guys.