Helping Customers Weather Recession
by Rebecca Button on May 23rd, 2008
The following is a great excerpt from an article on Forbes.com . It highlights some strategies retailers can use to help get themselves and their customers through the economic storm:
"In the short-term, retailers need to continue providing sales incentives, discounts and promotions that demonstrate value to the consumer. Incentive packages can be offered for cost-saving items such as fuel-efficient cars or energy-saving light bulbs. Innovative ideas to help consumers spend "extra" money will be critical. We have seen this happen already in the travel industry where some resorts are providing gas cards for guests driving to the destination.
Retailers with a strong, customer-oriented Internet presence are well positioned to take advantage of the momentum in Internet sales carried over from the 2007 holiday season. Retailers should explore new payment options for customers for online sales, including prepaid gift cards, which would have the added benefit of capitalizing on the increase of customers buying gift cards. Ultimately, e-commerce will help consumers save gas money while having the associated benefit of lower operating costs for the retailer.
Looking ahead to long-term positioning, retailers can improve return on investment for their stores by taking advantage of lower retail space costs for new store openings. With companies halting store expansion and announcing store closings, certain regions have experienced an excess of retail space. The industry should capitalize on better lease terms than we have seen in recent periods.
As mid-range and long-term strategies, retailers will need to focus on properly managing the mix and quantity of inventory held in their stores and distribution centers. In conjunction with maintaining inventory, retailers should seek alternative channels, such as the use of distributors or value-added resellers in lieu of a retailers’ clearance center approach.
Retailers will also be forced to reassess their suppliers and transportation, as well as storage and handling costs, as product costs from overseas, particularly China, continue to increase.
In the end, the U.S. economy is built on both consumer spending power and retail success. If retailers remain determined to help consumers weather this difficult time while bracing themselves accordingly, we can all hope to emerge strong in 2009."
Happy Memorial Day Weekend!
Operators: If you’re not willing to provide service the way paying customers deserve to have service provided to them, maybe this is the wrong business for you. If you’re burned out, tired, overworked, underpaid or grouchy, this may not be the business for you. If you don’t care about maintaining your vehicle, don’t have an account set up with a dent repair/paint repair guy, eat or smoke in your car, wear mismatching socks or are un-groomed, this may not be the business for you. If this is not the right business for you, decide what is and give over 100%. Times of recession are great for weeding out the bad, stepping up to the plate and out performing our competition. “How may I better serve” is a question that if answered through actions will ensure your success through recession.
Michael Bonanno
May 27th, 2008
at 12:51 am