Retail Resolutions

Each year millions upon million of Americans make New Year's Resolutions. The vast majority vow to loose weight, a minimum of that magic 20 lbs. (the, if I can just do that, Prince Charming will magically appear number), and the second most common resolution is to focus on financial stability, i.e. save money to pay off those high-interest credit cards. Earnest attempts are made in January, but usually fall to the way side by February.

Retailers take note, you too need to shed the pounds and focus on your pocketbooks. You are in good company, join the club. Yikes! February is only three weeks away.

Seeing the economic forecasts, retailers stockpiled last year's unsold goods and were top-heavy with product that no one really wanted last year either. Despite their great sales, prices were slashed more times than Janet Leigh was in “Psycho,” and consumers bought less, duh! (except at Wal-Mart and other discounters who appear to have had some moderate increases). Overall predictions are that retail sales will post 3 percent to 5 percent less than last year. That is a disaster. This means that some retailers will file for Chapter 11. Case in point, Kira Plastinina, closing all its seven stores, and halted plans to open the ambitious 250 this year. Note to self: don’t let precocious 16-year-olds design bubble dresses and give away Charm Blow-Pops as sales incentives--no matter how wealthy their Russian daddy is. KB Toys and Circuit City are following a similar fate, well, filing and folding. Banks are no longer doling out credit loans to retailers. It’s a cash-in-hand economy. Retailers, like sheep to the slaughter, all loaded up on cashmere sweaters as this year's splurge item. Alright, one man’s cashmere is another man’s acrylic, but let's not split hairs, we all know there really isn’t that much cashmere in the world. Retailers are still fat with sweaters and scarves. Smart move…not. Shed the weight, exercise and put your merchandise on a Jenny Craig for retailer--practice moderation, get back to basics; replace the food pyramid with the shopping pyramid, staples on the bottom, your perishables in the middl and treats on the top. “Wow, Mr. Wizard, science is fun!”

As for balancing your checkbooks, retailers take a hint from Suze Orman, (must get image of Kristin Wigg out of head, or...will...go...mad!!!) “It’s people first, then money, then things!” People first, that means salespeople and customers, focus on developing that relationship--that’s your primary investment, exploit it! Then money...look at price point. Homes may have been worth $350,0 last year, but are only worth $250,000 this year, so price your merchandise to sell (if homeowners can do it, you can, now move on). And then things...look at what you’re selling. They were out of my size at Club Monaco, so I just went next door to Banana Republic. I know you sell the same things practically. I’m not an imbecile. I read “The Secret,” guess what the secret is? It’s not a secret. The same goes for retailers, noting you do is a secret. The sameness between brands is appalling. The last thing you want to do is sell the same things as the guy next door.

As for my resolution, I already have a Prince Charming (okay, so he’s not always so charming), still, I don’t need to loose 20 lbs. I don’t use credit cards--unless there’s a retail emergency, and my last emergency was a sale at Marks & Spencer, and that happens as often as leap year. My resolution...to shop less, shop smarter and find new retailers, and re-visit great old ones.

--Ron Knoth, Guest Blogger