What We Don't Know Will Hurt Us

The February 21, 2009 Op-Ed from the New York Times by Frank Rich should be a must read for every retailer, indeed for every American!

Link to Frank Rich's Op-Ed

I totally agree with Frank Rich, What We Don’t Know Will Hurt Us!

In many ways it ties in with my talk from Las Vegas on Monday, February 16.

You must judge as to whether to exercise extreme caution or not. Frankly, it is especially important to those of us engaged in selling direct to the consumer. I suggested in my talk that we would be ‘…. maybe 2010, maybe 2011 or perhaps 2012 or later’ before we see a significant improvement in the economy. The more I read, the more convinced I am this is true. That does not mean you should ‘close shop’ and get a tin cup … it does mean that the retailers that survive must operate totally different than we have in the past, and my talk outlines some of the things a retailer must do to survive.

It is good to be positive!

I would be positive, however very damn cautious!

We all know that the way retailers have been operating over the past eight to ten years has not been working, has not been producing the sales, gross margin or bottom line profits to survive.

I firmly believe the retailers that survive this economic depression of our time will operate with less inventory, less debt, more off price, faster markdowns, improved communication with their customers, and they will be smarter and wiser merchants than they were pre-2001. The old formula has not been working since 9-11 and will not work going forward in this economy.

There will be many retailers that survive … and many of them will be independent stores! The ones that do survive will live to see a better retail climate, they will have operated differently and smarter … they will buy less up front, they will go to market more often, they will buy less and more often, they will merchandise more selectively, they will buy off price in season, they will recognize slow sellers quicker, correct these mistake with fast mark downs, they will not carry over any merchandise from season to season, they will be much more customer service oriented, their advertising will change, as well as their attitude towards the customer. They will follow up with the customer more often, indeed after every store visit with a phone call and hand written note … they will not take their customers for granted … they will not tolerate unproductive sales people.

In the article, is Frank Rich right?

Am I right?

You will be better off being very concerned and doing the things suggested until you know for sure. At worst you will still be in business in a year or two or three or four. Not heeding this advice, you well may be watching it from the sidelines.

Read Frank Rich’s Op-Ed piece and make your own decision.

Should you need help in coping with this new economy, we are here with a plan that has worked for hard hit women’s specialty stores over the past three to four years … and it will work for you now!

It is not revolutionary, it is simply my idea of Retailing 101.

If you did not see a copy of the February 16th talk from Las Vegas, check it out here.

Milton Waldoff The Waldoff Group Check our web site: TheWaldoffGroup.com