Happy New Year! And may it be a better year!
The signs are certainly pointing in the right direction. Reports say that this past Christmas selling season was the best since 2006 (although it's clear that not every retailer participated equally in the success). Then there's the quote from the first piece in this months Retail Reader, from Mark Zandi, at this weeks NRF Conference in New York: "The industry is due for a three year growth spurt."
From his mouth to every consumer's ears!
The quote from the NRF convention that really got my attention, however, came from Matthew Rubel, chairman and CEO of Collective Brands: "Focus on your customers. Innovate for them. Know how they shop, and why they shop. Buy low, sell high, keep your overheads low. Anybody who goes beyond those fundamentals will wander."
That's a quote worth tacking up on the bulletin board by your desk.
And in that spirit I've chosen five additional pieces that focus on retail fundamentals. January is a good time to put all that you do under the microscope. Beyond the creative engine that drives retail, I believe that success in the world we now live in requires a commitment to proven retail business fundamentals, a commitment to operational discipline, and a heightened attention to detail.
As I'm getting ready to send out this issue of the Retail Reader there's a major snowstorm barreling down on New England. Ah, yes, it's January. Of course, that also means that the Pats are playing Sunday at the Big Razor across town. Foxboro, home to Hurlbut & Associates and the New England Patriots. Breathe Deep!
"Retailers who survived the recession are poised for a rosy 2011, experts said here Monday at the 100th annual National Retail Federation conference. The industry is due for a three-year growth spurt, with "high-income, high net worth households leading the way," said Mark Zandi, chief economist for Moody's Economy.com."
From The Detroit News.com...
"Barry Moltz is serious about customer service. So much so, in fact, that his nightmares center on bad customer service scenarios... Moltz says he even owns a button that says, "Just give me good customer service and nobody gets hurt."
Businesses of all sizes that are serious about surviving and thriving need to listen to Moltz's assertion that customer service is the new marketing. In other words, the best way to promote your business and attract new customers is through providing exceptional customer service, not through traditional marketing techniques."
From SmartBlog.com...
"Business or personal, it's no coincidence that a lot of us look to the turning of the new year for leverage to turn some new leaves. We focus on what we want to change. Let's do it differently this year. Let's do it better. It's a new beginning, a new morning.
There are three fundamentals of business planning that apply very well to those New Year's Resolutions. Test yourself and your resolutions with these three business planning questions."
From Bplans.com...
"Crumbs Bake Shop - No. 422 on the 2010
Inc. 500 list of the fastest growing companies in the U.S. - charges $4.50 for a single Peanut Butter Cup Signature cupcake. What do you think the bakery pays for the flour, sugar and Skippy?
In an environment where most businesses never see their third birthday, Crumbs is thriving in part because of its fat gross margin. Whether you're starting a lemonade stand or the next Groupon, arguably the single most important predictor of your future success is what you pay for the stuff you need to make your final product.
Here's why gross margin is the key to surviving your first three years in business."
From BNET.com...
"The idea is to get loans under $250,000 into the hands of small businesses efficiently: Applications are only 2 pages long and can be approved in anywhere from "minutes" to 10 days, according to the SBA. Greater access to credit should help spur firms to grow and hire, giving the economy a boost.
"Many entrepreneurs and small business owners across the country have enormous potential to drive economic growth and create good-paying jobs in their local communities, but too often they face barriers in fulfilling that potential," said Catherine Hughes, chairperson of the SBA's new Advisory Council on Underserved Communities."
From CNNMoney.com...
"I know I will be lambasted for this, but it needs to be said: The GAAP is wrong.
Before you hit the "comments" tab, let me clarify. I do believe following the GAAP (Generally Accepted Accounting Principles) is important so that when the time comes, you are prepared to submit financial statements for investors, mergers or the IRS. However, using the GAAP as your primary accounting method is the wrong way to grow a hugely profitable business." From The Wall Street Journal.com...