THE ECONOMY & RETAIL SALES Over the past couple of days stores have been very strongly promoting in newspapers, tv, email and direct mail. Hopefully you have been watching your local papers. Our local paper has had ads like: Dillards: 30% and 40% Entire Stocks of Handbags, Men's Spts Wear, Waterford Crystal, Fashion Jewelry and Watches, Men's and Ladies Sleepwear, Men's Suits, Men's Sweaters, etc., etc. etc. Then a more than half page ad Friday with 'Ladies Spectacular Storewide Savings' ... 40% off entire stock Sportswear, Dresses and Suits, Leather Coats and Shoes + 30% off Already Permanently Reduced Merchandise'. Belks: 28 page full color section ... featuring an Extra 20% off all regular and sale prices storewide! Along with: 45-65% off all red line merchandise when you take an extra 30% off. Plus: 27 of these pages featuring full color items at special prices ... many items at 50% and 60% and 70% ... and you take the extra 20%, unless it has a red dot, then you take 30% off. Stein Mart: 3/4 page 14 hours sale for today, Saturday ... 8AM to 10PM ...featuring dozens of items at 50% off and 30% off .... plus a coupon to take an additional 20% off ALL RED DOT & Clearance purchases! Kohl's: 16 full color pages, featuring Door Busters, Night Owl Specials to midnight and Early Bird Specials from 6AM to 1PM on Sat. J.C. Penny & Goodie ... both with Door Busters ... Penny open til midnight both Fri & Sat with all types of specials. The few locals that are left are running 40% and 50% and 60% with savings to 75% and 80% ... The purpose of this email is to again remind or push you to do whatever it takes to move your inventory ... the prices and discounts you see today are going to be at greater discounts after Christmas and in January and February ... and between today and Christmas Eve. It is important you get as much inventory out the door NOW as possible and to start the new year LEAN with money in the bank ... We are firmly convinced we have not seen the worst of this economic situation, January and February will be the two worst months in recent retail history! I hope I am totally incorrect, however I have not read or heard anyone that thinks differently. Whatever inventory you own today is worth more now than it will be worth in a week or two weeks or a month or two months. There are more people shopping now than there will be later, whether it is a week or two months ... or six months! The time to go quail hunting is when the quail are flying! Retail Traffic, the magazine of the 'real estate and real estate development industry' ... that includes every chain and major shopping center developer in the country .. is suggesting that 2009 will be a 'Lost Year' ... and they don't see things getting better until 2010. Get your inventory in line with projected sales, be careful what you buy and buy as much as possible hand to mouth ... do not get over inventoried ... cut your staff, and make sure everyone on your payroll are 1000%, yes 1000% motivated. Meet with them on a weekly basis and explain what is happening, although they see it in the newspapers, magazine and tv, bring it home to them! Motivate them! Make sure they understand that it is going to be much easier to do what is expected than to locate a new job! Thousands of retail stores will close in the next 12 months ... more than have closed in any 12 month period in history! Worse than the 'great depression' because there are so many more stores now! The challenge is so great that even good merchants will not survive! The stores that do survive will learn a new way to operate, a new way to merchandise, a new way to buy, a new way to advertise ... if you plan on rocking along the way you have been going for the last 5 or 15 or 25 ... get ready to close, you will not survive! We are entering a new day in retail ... nothing is going to remain the same ... there will be less store fronts and less customers entering fewer store fronts ... If there is one thing I've learned in my over 40 years in retail, no one survives because they are entitled ! No one! Some of the biggest and greatest names that have ever existed in retail in the Untied States are gone. Some of these stores are listed below. And, yes, some of these were bought and renamed, nevertheless they are gone! Often if they were sold it was because of weak or poor management or killer decisions! I made some in my business life (personal too!) ... however I'm not listing Waldoff's, perhaps it should be listed! Regardless ... the list below is in no way all inclusive ... Abraham & Strauss B. Aultman Bamberger's Best & Co. Battlestein's Broadway Bullock's Cain Sloan D. H. Holmes Scott Donaldson's Dunlap Emporium Frederick & Nelson Frost Bros Garfinkel's Gimbel's Godchaux's I. Magnum Leighton's John Wannamaker Kennington's Kress Leggett's Maison Blanche McRae's Mervin's Miller & Rhoads Peck & Peck Porter Stevens Prange's Raleigh's Reynolds Penland Sakowitz Sanger Harris Strawbridge & Clothiers Stewart's Thalhimer's Weiss & Goldring Woolworth How many did you recognize? Bottom line: Watch your business! Find a niche and work it! Be the best in what you do! Merchandise better! Buy smarter! Make more market trips to New York City! You'll get better selections, more off price and a great deal less pressure than dealing with road salesmen or someone at a regional market ... and you'll more than pay for the extra expense with your smarter buying! Join a New York Resident Buying Office ... they will more than justify their fee with advice on what's hot and what's not, whose got what, who to shop, who to not waste your time shopping, new vendors, styles that are re-ordering, who's got off price or special promotions, information on the next season and you'll get treated special in the market when they know you are represented by a resident buying office! Improve gross margin by searching out desirable off price from your regular vendors or their competitors! Insist on it! The big stores get it! And, they get advertising allowances, mark down money, guaranteed gross margin, warehouse allowance, personal appearances, selling fixtures, special discounts ... Don't over buy! Recognize weak selling items immediately! Take fast markdowns! Never carry over goods! Repeat: Never carry over goods from season to season! Don't allow anyone on your payroll to not produce at the level necessary and expected! Set your expectations high! Make sure every customer is greeted immediately when they enter your store and every time any employee sees them! Make sure customers get better customer service than they expect! Thank them for shopping in your store! Make sure your employees care and show it! Cut expenses! Increase advertising! Improve your communication with customers! Don't try to be all things to everybody! AGAIN: Thank your customers for shopping in your store! In this economy there is no second chance! The economy does not take prisoners! If you don't keep up with the program, your dead! You have problems? You need solutions? We're in the business of finding solutions! We have answers or we'll find them! Another set of eyes can see things you are missing! Working with retailers across the country allow us to see problems and find solutions, solutions you may not be aware of ... and we know how to implement them. Most merchants are so busy operating their business they don't have the time to find the right solution or to implement it if they do! Our business is: 'Retail Solutions Especially for Independent Stores'. Check our web site: TheWaldoffGroup.com (Please copy and paste) for what some of our current and previous clients have to say about working with The Waldoff Group and the writer. And our blog is interesting and informative: TheWaldoffGroupBlog@blogspot.com (Please copy and paste) Have a very successful and wonderful Christmas. Milton Milton Waldoff THE WALDOFF GROUP Retail Solutions Especially For Independent Stores 601-434-3000 email: TheWaldoffGroup@Comcast.net WEB: TheWaldoffGroup.comBLOG: thewaldoffgroup.blogspot.com The highest compliment we receive is a referral from a client, previous client, business associate or friend! It is important for you to know that I am never too busy to help those you refer to me. Thank you!