Some regional appliance and electronics retailers are flourishing despite intense competition from national chains, thanks in part to a retro retail concept: commissioned sales staff, trained to explain increasingly complex televisions and washing machines to customers.

These smaller retailers such as publicly traded hhgregg Inc. of Indianapolis and Conn’s Inc. of Beaumont, Texas, as well as closely held P.C. Richard & Son of Farmingdale, N.Y., are pursuing ambitious store expansion plans. They are aiming to capitalize on the slumping commercial real estate market and the collapse this spring of Circuit City Stores Inc., once the nation’s second-largest specialty electronics chain after Best Buy Co.

Though large retailers such as Best Buy, Wal-Mart Stores Inc. and Amazon.com Inc. are widely viewed as the biggest beneficiaries of Circuit City’s liquidation, analysts said that regional chains stand to make sizable gains. Deutsche Bank has estimated that Circuit City had $11.1 billion in annual revenue that is now up for grabs.

Customers such as Enora Tucker, 79 years old, said they prefer a knowledgeable staff. She visited a Houston Conn’s store Tuesday to make a monthly payment on her refrigerator. “I like the fact that I can go in there and talk to someone who knows what they’re talking about,” she said.

Hhgregg, which operates 111 stores mostly in the Midwest, opened 20 stores in its fiscal year ended March 31, up from the 15 to 18 it had originally forecast. It is accelerating previous plans to reach 400 stores in the next decade, said Chief Operating Officer Dennis May, who is set to take over as CEO in August

Mr. May said hhgregg’s commissioned sales staff is an advantage over national chains with young, lower-paid hourly workers that tend to stay for shorter periods. “We have sales people that have been with us 10 to 20 years, and customers who come in and ask for them by name,” Mr. May said.

Hhgregg reports fourth-quarter earnings June 2, but said based on preliminary results, it expects earnings between 39 cents and 42 cents a share, up from 32 cents a year ago, on a 13% sales increase. By contrast Best Buy reported a 23% earnings drop to $570 million for its quarter ended Feb. 28, on a 9.7% sales gain.

Best Buy and Wal-Mart dismissed the suggestion that the regional firms have a sales edge. “Our employees are exceptional at demystifying complex technology,” spokeswoman Kelly Groehler said.

“With electronics data so readily available online today, many customers come to us looking for a particular brand or item, knowledge in hand, and may not want or feel comfortable shopping with a salesperson,” said Wal-Mart spokeswoman Melissa O’Brien.

Hhgregg has successfully expanded outside its Midwest base into states such as Florida and Georgia by blitzing new markets with numerous stores, instead of tiptoeing in with one or two. “In a lot of these markets, there is room for a second consumer electronics retailer beyond Best Buy,” said William Blair & Co. analyst Jack Murphy.

Conn’s, which operates 75 stores in Texas, Louisiana and Oklahoma, has opened seven since February 2008, and has hired former Circuit City managers. The retailer said it has navigated the recession better than some rivals because it owns its financing business. It has been extending credit to customers cut off elsewhere when larger chains tightened requirements.

“When credit gets a little bit tougher, like it is now, it is an advantage,” said Timothy L. Frank, who takes over as the chain’s chief executive next month, replacing his father, Thomas J. Frank.

Conn’s said earlier this month that sales for its quarter ended April 30 rose 2.6% from the year before, to $200.1 million. Mr. Frank said the gain was aided by a 35% April increase in television unit sales.

Sales clerks who earn commissions have an incentive to understand products, he said. “Is your mother going to want to buy a washing machine from a 19-year-old with a pierced eyebrow?” asked William C. Nylin Jr., the chain’s executive vice chairman.

P.C. Richard, which began in 1909 as a hardware store in Brooklyn, doesn’t release its financial results, but President Gregg Richard said it was taking advantage of commercial real estate vacancies to expand. It has acquired six former Circuit City sites in the New York City region, bringing it to a total of 56 stores.

Write to Miguel Bustillo at miguel.bustillo@wsj.com

Printed in The Wall Street Journal, page B1

Ann

A: I do agree that we are in extra-ordinary times and it makes sense to be on the lookout for cutting edge ideas and strategies. You never know which one might make a big difference.

Let me give you an example:

We have all heard about R.O.I. – Return on Investment. It’s a useful way to analyze whether you are receiving sufficient bang for your buck for your efforts.

But have you ever considered your R.O.O. – your Return on Organization?

Look, we all know that main two pain points for most small businesses are not enough time and not enough money. This is even truer in light of the current economic environment. But what if I told you there was a simple, affordable way to get more of both? After all, as we all know, time is money.

I have been doing some work with Office Depot recently in order to help small business owners understand how, with just a few smart changes, they can increase their ROO, and how that can have a significant impact on the bottom line. In fact, it is estimated that increased ROO can yield up to an extra two hours of productive time a week and up to an additional 6% of revenue.

How? Well, think about it. It costs five times more to create a new customer than it does to keep a current one. The whole idea is that with some extra time you can take better care of your best customers. No, 20 minutes a day may not seem like much, but what if you used those 20 minutes a day to their maximum effectiveness? You could check in with customers, make some sales calls, send out some ‘checking-in’ emails . . . that sort of thing.

It all adds up.

Being more organized means having more time to be more effective and make more money. It’s as simple, and as important, as that.

So here are a few examples of some things you can do to increase your ROO:

Get your office or workspace organized: No matter what kind of business you are running, having the right work environment saves you time and money every day.

Incorporate a filing system that actually makes sense for your business. Always have Post-Its on hand so you are ready for your next brainstorm. Whatever it is, make sure you have you need to be organized.

The right tools can make a big difference.

Make sure you are sufficiently mobile. What business are you in? No matter the answer, let me suggest that you are in the service business, especially in this economy. You simply have to offer exemplary customer service right now.

And one of the best ways to do that is by taking advantage of mobility computing so you can respond to customer needs wherever you happen to be. Notebooks are the best-selling computers right now for a reason; make sure you have a good one.

What about your Blackberry or Smartphone – is it helping you help them? It better! And, there are a lot of apps to choose from to make you more efficient and that help you use your time better.

These types of tools will ensure you’re always able to meet and exceed customer needs, regardless of where you are.

Own your software, and don’t let it own you: It’s amazing how often small business owners buy the best software to help them with their business, but fail to take the extra time necessary to fully learn how to use it, when doing so can save them a lot of time down the road.

Software manufacturers spend enormous amounts of time and money learning about small business and they use that to make programs to help us succeed. Take advantage of that. Learn how to really use your software.

The important thing to see is that there are savvy ways to get ahead right now that do not require spending heaps of money. Being more organized in all areas of your business will increase your ROO, and that will yield some powerful results and rewards.

Today’s Tip: According to SCORE, here are two important things to keep in mind regarding customer referrals:

• If a customer compliments your work, ask them for a written testimonial to put in your marketing materials.
• Always follow up a referral with a thank-you to the referrer. Also consider sending the referrer a coupon or other discount.

Throughout the past year, consumer confidence has largely been measured and addressed as a whole. But according to marketing and media researcher Nielsen, consumers will not all respond in the same manner to current economic conditions.

The study created consumer groups based on how and by how much they save money:

• Recession Indifferent consumers are barely, if at all changing their spending habits.
• Recession Insensitive consumers will cut spending on luxuries like entertainment and eating out, as they find themselves slight affected by the economy.
• Switch to Private Label consumers generally buy generic brands or store labels. Nielsen characterizes them as “young, bustling families” earning up to $35,000.
• Stock Up and Save consumers, on the other hand, are probably coming from older households earning $50,000 or more. While they remain loyal to their favorite brands, they will also let coupons and sales determine what they replenish.
• Light Coupons and Sales consumers are typically coming from older, smaller households.
• Switch Stores for Best Deal consumers do not mind store-hopping for the better bargain.
• Brand Disloyal/Promo Sensitive consumers are mainly drawn to sales and generic brands. They likely come from households earning between $35,000 and $50,000.
• Panic Stricken consumers have greatly reduced their living expenses – in any way they can – to save money.

Once the study cross-examined these consumer groups some of their media consumption habits, all to lead to some interesting comparisons. When Recession Indifferent and Recession Insensitive consumers are online, they are most likely viewing search engine, community-based, and news and information Web sites.

But while their Internet browsing habits are similar, these two “least recession-impacted” consumer groups are watching very different television shows. Recession Indifferent consumers watch more sports and news programming, while Recession Insensitive will probably tune in to comedy and quiz game shows.

As also measured by Nielsen, the heaviest Internet users are those searching for bargains – the Switch Stores for Best Deals, Stock Up and Save, and Recession Indifferent consumers.

For more information, view Nielsen’s report, “Reaching the Recession-Proof Consumer.”

Wholesalers had cut inventories by 1.5 percent from the previous month’s levels in February, more than double of what Wall Street experts predicted. Since lower holiday sales led to more leftover goods than expected, cutting such excess inventory over the past few months became a necessary step toward economic recovery.

“It’s easy to see this reduction as an assurance that the contraction is continuing,” said Frank Ahrens, Washington Post analyst, in his column. “However, the sooner wholesalers adjust their inventories to match diminished demand, the closer they come to resuming profitability.”

Wholesale sales also increased by 0.6 percent to $319.7 billion – the first uptick seen since June 2008, and quite a recovery from January’s 2.4 percent sales decline. Coupled with the drop in wholesale inventories, this further indicates a slight resurgence in production as wholesalers began to seek new goods.

Inventories in December 2008, totaling $427.5 billion, fell by 1.4 percent from the previous month, according to the Commerce Department. Analysts predicted a decline only about half as big, with predictions ranging from 0.7 to 0.9 percent, according to the Associated Press and Wall Street Journal.

“This is the latest evidence of the difficult environment for business spending in the fourth quarter,” said Tim Quinlan, economic analyst at Wachovia in Charlotte, North Carolina, to Reuters.

Even as overall inventories declined for the fourth month in a row, some levels remained higher than they had been in the previous year. For example, while inventories of durable goods experienced a 1.4 percent month-to-month decline, they still ended up 6.8 percent higher than in December 2007. On the other hand, levels of non-durable goods dropped by 1.5 percent, to levels 2.0 percent lower than last year.

Wholesale sales also dropped by 3.6 percent over the course of the month, to a level 10.7 percent lower than seen in December 2007. But then retail sales – excluding that of automobiles, gas stations and restaurants – increased by 0.5 percent in January, according to the National Retail Federation.

General merchandise sales led other categories, with a 1.1 percent seasonally adjusted increase from last month and a 3.5 percent unadjusted increase from 2007. Meanwhile, health and personal care sales remained flat from last month, though they still stood at levels 3.5 percent higher than last year.

Overall, the surprisingly positive news still serves as notes of caution for economists. They realize that while retail sales are rising, they are still lower than they were last year. Furthermore, the still-high ratio of sales to inventories indicates how the retail environment is still trying to recover from a slow holiday season.

“While 2009 got off to a surprising start, it’s going to be difficult for retailers to maintain this momentum,” said Rosalind Wells, chief economist at the National Retail Federation, in a statement. “We expect the first half of the year to present challenges while giving way to sustained growth in the fourth quarter.”

In the meantime, this senior vice-president of strategic direction had to organize an annual executive summit for 2009, “a meeting of the collective leadership of the wholesale industry.”

Then the two thoughts converged. He realized that the association and its members should create a productive discussion, “to go beyond just articulating what the problems are.”

“Yes, it’s difficult,” he thought, “but there are things that companies are doing that are going to help them succeed. Let’s talk about those.”

And so the 2009 Executive Summit – “Distributor Success Stories: Profiting Despite the Difficult Economy” – evolved. From January 27 to 29, hundreds of senior executives filled the seats allotted in the District’s Fairmont. The attendance levels surprised Schreibman, as he figured that its costs would have set them back.

“Given the difficulties with the economy right now, we had been hoping for the best but preparing for the worst,” he said.

The speaker who gained perhaps the most attention was Alan Beaulieu, president of the Institute for Trend Research. For two executive summits in a row he gave his yearly forecast, and then attendees requested his return yet again this year, after he gave a memorable prediction for 2008.

“The reality is, we’re not at a recession,” he said, as reported by Electrical Wholesaling. “We will grow at a tepid pace in 2008, and you will have one more year of growth. In January 2009 you will be in a recession.”

His prediction for the rest of 2009 generated a similar mood, more or less, amongst this year’s attendees. Among other statistics, he told them of how unemployment will rise, industrial production will fall, and how deflation will arrive – but then comes recovery, though mild, during the second half of 2010.

“I would say that the audience appreciated Alan’s candor,” Schreibman said, later adding, “The news he delivered wasn’t uniformly presented because of the difficulties out there right now. But we feel that our job is to tell it like it is.”

With that came the purpose of the summit: to reveal how current economic conditions have encouraged many businesses to strategize for and demand success.

Adam Fein, founder and president of Pembroke Consulting, had talked to many executives who have already implemented a number of strategies that are keeping their companies competitive: “Work harder” for every sale. “Stay connected” to every customer. “Keep perspective” – “the tide will turn again,” as Fein wrote.

The trade association also sought to teach strategies, regarding business relationships in addition to sales and marketing optimization. John Bolton, former U.S. ambassador to the U.N.; Nina Easton, Washington editor of Fortune magazine, and Ed Gillespie, former counselor to George W. Bush also spoke regarding what wholesaler-distributors could expect of the new presidential administration.

In sum, the two days of lectures and discussions turned what Schreibman had hoped to see – effective counseling for wholesaler distributors.

“It’ll be interesting next year to visit folks who attended this meeting, to see how 2009 turned out for them given the preparation, the suggestions and recommendations made at this meeting,” he said.

The trade group forecasts for 2009 an overall 0.5 percent decline in retail sales, according to a statement released last Tuesday.

“Most of the consumer behavior we saw in 2008 will continue well into this year,” said Rosalind Wells, chief economist.

By that, the trade group means that retailers may see a 2.5 percent decline during the first half. They may then experience an overall 3.6 percent rise in the fourth quarter, arriving with the holiday season and “a strengthening economy,” according to the forecast.

On Monday, the National Retail Federation then released a survey conducted by BIGresearch, which found what consumers said they could not live without. Some of their indicated priorities and preferences could serve as valuable information for wholesalers and retailers this year:

• The top-ranked commodity of the survey: Internet surveys, with 80.9 percent of respondents guaranteed to spend money on it. Therefore, the upcoming year may not be so bad for online retailers. Internet sales could rise by up to 11 percent, according to Forrester Research.
  But a Penn, Schoen and Berland Associates study points to another reason: promised savings. More than two-thirds of respondents purchased something online they otherwise would not have, because of a coupon or discount. With that in mind, retailers may wonder – are the deals going to eventually lead to customer loyalty, or will they all amount to just a quick sales fix?
• As Wendy Liebmann, CEO of WSL Strategic Retail, said in the trade group’s full-length report, this year’s consumers may still be wary to use their credit cards. This fear stems from the debt they have built up over last year, which averaged out to $5,710 by December, TransUnion.com reported.
  Data collected over the past few months also show that credit card spending has been lowering. After total consumer credit remained flat in October, it declined in November by 3.7 percent, according to the Federal Reserve.
• But even while consumers face high amounts of credit card debt, they will still shop for clothes. In fact, 43 percent of respondents said that they will definitely purchase clothing over the next year. However, that clothing must be discounted, as consumers will continue to pass over luxury brands in favor of those with the best value.
  Considering such behavior, apparel buyers and retailers face a tough dilemma. On one hand, stores selling both apparel and accessories experienced a 9.4 percent seasonally adjusted year-over-year decline in December – also a 2.5 percent unadjusted decline from November. But consumers are still buying into lower clothing prices, leading to a 1.6 percent rise in chain store sales from one week ago, according to the International Council of Shopping Centers.

What are your predictions for the upcoming year, of the economy and of your business?

The newest addition is an online course, “Down-shifting in a Slowing Economy: A Business Planning Guide.” The presentation, while running less than 25 minutes, takes small business owners through a step-by-step process of how to reevaluate and streamline their strategies.

“When sales have slowed and credit markets are tough, it’s easy to become overwhelmed and to view planning as a great idea, but something you just don’t have time for,” the course states in its introduction. “On the contrary, business planning is a constructive and necessary tool.”

The Small Business Administration has also made an online presentation that explains its 7(a) loan guaranty program in detail, then touches upon its micro-loan and Company 504 programs. Like “Downshift in a Slowing Economy,” the “Finance Primer” is also equipped with audio and targeted links. Small business owners can access the guide through the Web site’s new “Helping Main Street” section, which is linked on the home page.

Both presentations are free with registration.

The Small Business Administration cumulated them, along with other edits throughout the Web site, into the first online update it has made to deliberately address the economic crisis. The administration expects to further expand the “Helping Main Street” section with more online courses and targeted business tools.

For more information or to access its new online presentations, visit www.sba.gov.

Total spending may also reach up to $14.7 billion this year, compared to $17.02 billion last year, according to the National Retail Federation. 

Last year, consumers spent slightly less money on traditional gifts than in years past, opting instead for a night out. But now, with the current economy in mind, these couples simply just want to save, as president and CEO Tracy Mullin realized. 

“A bad economy won’t stop Cupid this Valentine’s Day, but it might slow him down,” she said in a statement. “This year more than ever, consumers will look for creative and inexpensive ways to show those they love how much they mean to them.” 

But as they plan to spend less, the traditional Valentine’s Day gifts remain the most popular: candy, flowers and jewelry. More people also intend to buy the standard greeting card compared to last year – specifically 58.0 percent, up from 56.8 percent.

For such gifts, consumers plan to spend an average of $102.50, down from last year’s total of $122.98. Consumers ages 35-44 plan to spend the most, $119.19, followed by those ages 18-24, with $113.68.

Q: I was recently laid off from my job of 10 years. I don’t really have any savings. Could I start a business somehow given my circumstances? Even if I could do something part-time until I get another job would help. Thank you.

Ellen

A: Of course the conventional wisdom is that this is a bad time to start a business, and one thing I know about conventional wisdom is that it is there for a reason; that is, maybe the group knows a thing or two.

No, this is not the greatest time to go into business for yourself, but that said, it can be done if you do it right.

What do I mean by that? One way to succeed right now is to start an inexpensive part-time, home-based business.

No, none of the ideas below are get rich quick plans, but they certainly can help you get some extra dough now, and maybe even more later. Here then are some businesses that can be started without a lot of time or money:

Deliveries / Driver: Especially with the price of gas coming down so much, this might make sense. Businesses of all sorts (in bigger cities especially) need stuff delivered every day. Print up some flyers, charge less, and away you go!

eBay sales: I once had a pal who spent every weekend at garage sales buying old motorcycle parts which he then sold during the week on eBay. He made several thousand dollars a month. His motto? It’s all in the buying. Think of something you know well, hunt it out, and resell it on eBay. Buy low, sell high.

Residential and commercial cleaning: Housecleaning is a tried and true home-based business, and it can lead to more lucrative commercial contracts. The cost to get into this sort of business is almost zero.

Transcription: Doctors and lawyers especially contract out transcription services.

Window washing / pool cleaning / snow removal, etc: Simple service businesses like these can be started with very little time and money and require nothing but some elbow grease. Again, especially in this economy, the secret is to undercut the competition in terms of price.

Pet-sitting and house-sitting: No, you won’t make a ton of money, but these sorts of businesses can be a nice source of extra income.

Hauling: With a truck and a classified ad, you can have a business removing junk for people.

Independent sales representative / manufacturer’s rep: Thousands of companies hire independent contractors to get their products into store and handle their product lines. This job would likely take you on the road for long stretches. Consider handling the products of several different companies.

Gardener: If you have a green thumb this might be the right business for you, but of course it tends to be seasonal work with most of it coming in the spring and summer, along with some leaf cleanup in the fall.

Childcare: Of course this is a business that requires extra responsibility and due care, but it can also be very rewarding and can be started with little money.

This list, of course, is really just a sample to get you thinking. If you have a specialized skill, such as automotive repair or being bilingual, you could parlay those as well into a shoestring startup. The important thing is that you open your eyes to the possibilities.

Today’s Tip: If you own a tech business and are thinking about expanding internationally, you should know about a contest that can help you. Called the Technium Challenge, the contest gives to the winner from the U.S., along with finalists from 12 other nations, a business-class flight to Wales for a week-long “Learning Journey” that will include one-on-one sessions with British legal, business and skills experts.

The overall winner will receive one year of free office space within one of 10 Technium incubators in Wales and ongoing counsel on financing, business planning and technical issues. You can learn more here.