Retail Perspectives

"All Things Retail"

Current Articles | RSS Feed RSS Feed

Green Shoots and Retail Category Rotation

  
  
  

Much like sector rotation in the stock market, where an industry emerges as a leader in shaping investor sentiment while another industry loses its leadership position, category rotation in retail can often foretell changes in consumer sentiment.  

When business for women's apparel retailers as a group started to soften in mid-2007, there was a discernable shift in leadership between categories. Until that point, dresses  had led business forward across most retail segments and price points. Then, there was a pronounced shift in leadership, to accessories, and to a lesser extent bottoms. A similar thing happened in the furniture business, where leadership shifted from upholstered and cased goods into ‘smalls', less expensive items such as occasional tables, lamps, pictures and other accents, items that ‘redress' a room rather than make it over altogether.  

In the past several months there have been hints in the client data that I look at, primarily in women's apparel, that category leadership is beginning to shift again, and in the last four to six weeks the data has been even more pronounced. This isn't to say that the decreases have become increases, only that as business stabilizes, dresses and tops are starting to outperform accessories and bottoms, when for months it had been the other way around.  

Category rotation of this sort is an important indicator, a ‘green-shoot' suggesting that things are beginning to turn around. Watch your sales carefully for signs of category rotation in your business. It will be an indicator to review your forward sales plans for adjustments in the contribution of each category to the whole.  

Just as sector rotation in the stock market signals a turning of that market, category rotation is a signal that consumer sentiment is turning, and that an upturn may not be far away.

Comments

fake lv mens wallet innovative designs regularly The gucci hobo the opening of stores in Milan louis vuitton monogram jokes should be accommodating If you balenciaga your super cool bag Prada has kept louis vuitton The components are then taken for hermes louis vuitton purses.
Posted @ Wednesday, September 08, 2010 7:48 AM by golden
headband wigs wiglets however which stand away from the wigs louis ferre.
Posted @ Tuesday, October 05, 2010 10:14 PM by rider
Comments have been closed for this article.

Get your FREE copy of "The 16 Essential Elements of a WINNING Independent Retail Strategy" Now!

Ted Hurlbut eBook
  • Define your unique competitive advantage.
  • Create marketing messages that resonate.
  • Increase traffic and get your customers to buy more.
  • Increase sales, profitability and cash flow.
  • Take greater  control of your business and your future.

GET THIS FREE REPORT NOW!

You'll also get valuable tips and insights from me regularly, to help you increase your sales, profitability and cash flow.

FREE REPORT

"The 16 Essential Elements of a WINNING Independent Retail Strategy"

Ted Hurlbut eBook
  • Define your unique competitive advantage.
  • Create marketing messages that resonate.
  • Increase traffic and get your customers to buy more.
  • Increase sales, profitability and cash flow.
  • Take greater  control of your business and your future.

GET THIS FREE REPORT NOW!

You'll also get valuable tips and insights from me regularly, to help you increase your sales, profitability and cash flow.

Schedule a Discovery Session

Schedule a  Discovery Session to explore working together and how I can help you increase sales, profitability and cash flow. Take your business to the next level. Schedule your Discovery Session now.

The “Getting Started”
Retail Assessment

To get started, some clients prefer an expert assessment. That’s why I offer my Getting Started Retail Assessment for just $500.

Get started on your "Getting Started" Retail Assessment now!.

Happy Clients

“Ted really understood the challenges we faced as a family-run business. His recommendations were clear, concise and tangible. With his help we were able to make the changes we needed to move our business forward.”

Tim Skehan
Russell’s Garden Center

Join Me