Black Friday Is Getting A Early Jump Start
Nov/23/2009 11:56 Filed in:
Small Retailer, Marketing for the Small
Retailer
It
seems Black Friday, the traditional first day of the
holiday shopping season, has lost some of its shine.
The retail phenomenon, which began in the 1960s, occurs
each year on the day after Thanksgiving, when stores
across the country slash prices on everything from
laptops to the hottest Christmas toys. The use of
“limited supplies” fuel a frenzy among bargain hunters
who brave the crowds and the cold to be first in line
when the doors open wide.
A recent survey of shoppers found just 46 percent of respondents plan to “definitely” shop on Black Friday this year, a 12 percent drop from those who took to the stores in 2008. Many survey respondents are turned off by the long lines and rudeness from fellow shoppers, the survey shows, but for others, it’s a function of the economy.
Black Friday is no longer the beginning of the holiday shopping season. Retailers are finding new ways to reel in reluctant consumers. More than 80 percent of shoppers this year said they planned to spend less on holiday merchandise. In order to win them over retailers are coming out with hard-to-beat promotions two to three weeks early. Sears, K-Mart and Toys 'R Us rolled out Christmas in July sales this summer.
Retailers are all competing with each other right now. Price wins out every time. “There’s no definite time anymore of when people shop. Department stores are even competing with discounters.”
With many retailers offering the same Black Friday deals online that they do in the stores, some shoppers rather surf than fight the crowds.
Waiting in line all night is a logistical nightmare for most shoppers. “These days shoppers go online to a number of sites and make a list of everything They want and wait until midnight on Friday, when a lot of stores start their sales. That’s actually 9 p.m. Thursday for those on the West Coast, so they can usually get everything they want without leaving the house.”
A recent survey found a majority of shoppers (59 percent) say they would rather shop online for Black Friday deals this year than fight the crowds. In-store prices for online purchases and free shipping, offered by many big name brands, is expected to further inspire shoppers to steer clear of the mall this Thanksgiving weekend.
But the convenience factor isn’t the only reason the Internet has rendered Black Friday less relevant as a bellwether for holiday spending. While retailers once kept door-buster deals confidential until Thanksgiving Day, so as not to tip off their competitors, Web sites started leaking Black Friday advertising circulars weeks in advance, putting stores in a tough spot.
Retailers have increasingly opted to disclose their Black Friday discounts early to beat those Web sites to the punch — many making their items immediately available for sale.
While many shoppers will boycott the madness this Black Friday, there are those who still find the long lines and elbow jabs a holiday rite of passage. The phenomenon of Black Friday will ever truly go away. It’s been around for a long time and to some people it’s a tradition.
A recent survey of shoppers found just 46 percent of respondents plan to “definitely” shop on Black Friday this year, a 12 percent drop from those who took to the stores in 2008. Many survey respondents are turned off by the long lines and rudeness from fellow shoppers, the survey shows, but for others, it’s a function of the economy.
Black Friday is no longer the beginning of the holiday shopping season. Retailers are finding new ways to reel in reluctant consumers. More than 80 percent of shoppers this year said they planned to spend less on holiday merchandise. In order to win them over retailers are coming out with hard-to-beat promotions two to three weeks early. Sears, K-Mart and Toys 'R Us rolled out Christmas in July sales this summer.
Retailers are all competing with each other right now. Price wins out every time. “There’s no definite time anymore of when people shop. Department stores are even competing with discounters.”
With many retailers offering the same Black Friday deals online that they do in the stores, some shoppers rather surf than fight the crowds.
Waiting in line all night is a logistical nightmare for most shoppers. “These days shoppers go online to a number of sites and make a list of everything They want and wait until midnight on Friday, when a lot of stores start their sales. That’s actually 9 p.m. Thursday for those on the West Coast, so they can usually get everything they want without leaving the house.”
A recent survey found a majority of shoppers (59 percent) say they would rather shop online for Black Friday deals this year than fight the crowds. In-store prices for online purchases and free shipping, offered by many big name brands, is expected to further inspire shoppers to steer clear of the mall this Thanksgiving weekend.
But the convenience factor isn’t the only reason the Internet has rendered Black Friday less relevant as a bellwether for holiday spending. While retailers once kept door-buster deals confidential until Thanksgiving Day, so as not to tip off their competitors, Web sites started leaking Black Friday advertising circulars weeks in advance, putting stores in a tough spot.
Retailers have increasingly opted to disclose their Black Friday discounts early to beat those Web sites to the punch — many making their items immediately available for sale.
While many shoppers will boycott the madness this Black Friday, there are those who still find the long lines and elbow jabs a holiday rite of passage. The phenomenon of Black Friday will ever truly go away. It’s been around for a long time and to some people it’s a tradition.
How To Avoid Needing A Store Closing Or Going Out Of Business Sale
Nov/12/2009 10:49 Filed in: Store Closing
Sale |
Small
Retailer
I
write and advise small retailers every day on how to
best use a Store Closing Sale to exit their retail
business . Today I want to share some toughts on how to
avoid needing to have a Store Closing Sale. Business is
going to continue to be tough. Here are some ideas on
how to keep your customers shopping at your store.
1. Continue to market your business. History shows that those who stop marketing during a recession are the first to disappear.
2. Focus on your exisiting customers. It's more profitable to sell to someone that knows and trust you, than to spend money trying to earn a new customer.
3. Listen to customers. It will help you discover their needs and carry products to meet those needs.
4. Focus on the neighborhood. For most retailers, your primary market is within a two to five mile radius of their store.
5. Emphasize value in all of your marketing messages.
6. Be polite and greet customers as they enter your store and thank them as they leave.
7. Consider a loyalty program. It doesn't have to be complicated. It can be as simple as a punch card.
8. Know who your customers are. Build and maintain a current customer list - street addresses and email addresses.
9. Contact each customer at least four times a year - the more communciation the better.
10. Remember your customer is your greatess asset - without them you have no business.
1. Continue to market your business. History shows that those who stop marketing during a recession are the first to disappear.
2. Focus on your exisiting customers. It's more profitable to sell to someone that knows and trust you, than to spend money trying to earn a new customer.
3. Listen to customers. It will help you discover their needs and carry products to meet those needs.
4. Focus on the neighborhood. For most retailers, your primary market is within a two to five mile radius of their store.
5. Emphasize value in all of your marketing messages.
6. Be polite and greet customers as they enter your store and thank them as they leave.
7. Consider a loyalty program. It doesn't have to be complicated. It can be as simple as a punch card.
8. Know who your customers are. Build and maintain a current customer list - street addresses and email addresses.
9. Contact each customer at least four times a year - the more communciation the better.
10. Remember your customer is your greatess asset - without them you have no business.
There Are Fewer Store Closings Than Projected in 2009
Nov/11/2009 10:58 Filed in:
Store Closing Sale, Small Retailer
There
is one bright spot for retailers in this year of bad
news and that is the fact that, contrary to most
expectations, store closings have not reached the
disastrous levels many were predicting. In fact, in the
first half of 2009, there were fewer store closings
than during the same period in both 2008 and 2007.
Year-to-date, there has been close to 4500 store closings according to ICSC (International Counsel of Shopping Centers). That would put 2009 on pace with 2006, when a total of 4,730 stores closings. The number of closings is far short of the 10,000 to 12,000 closings experts projected.
Some experts are seeing the fewer-than-expected closings as a sign that the worst is over for the industry, especially given the broader economic stabilization that has emerged in recent months. But a number of retail consultants experts
contend that many underperforming stores were kept in business this year thanks to rent relief measures granted by their landlords, as well as a great deal of cost-cutting.
There are still reasons for concern, the national unemployment rate is now over 10 percent, and there are lackluster projections for the 2009 holiday shopping season, a period of paramount importance to retailers' annual sales. This holiday season will likely be the second worst in 42 years, with flat growth in same-store sales and a 1percent decline in total sales.
Many underperforming stores managed to stay open this year, in large part to the retailer’s successful efforts to secure rent reductions rather than to a better than expected sales results.
Excess Space Retail Services Inc.,a Huntington Beach, Calif.-based real estate disposition and lease restructuring firm, expects to see anywhere from 6,000 to 8,000 store closings in the first two quarters of 2010.
"At the end of 2008, we thought that 2009 would be a record-setting year as it relates to store closures, but something very different occurred, retailers were able to [use poor market conditions] to open up a dialogue with landlords to restructure leases to make it more feasible to operate under-performing locations," according to Excess Space’s principal Alvin Williams . "Retailers have really done all they can to keep their lights on in 2009, and we think in 2010, retailers that were unable to restructure their leases or continue to struggle in spite of restructuring" will close stores, he adds.
It looks as though the predictions for record store closings have just moved into 2010 and that most brick and mortar stores will continue to struggle.
Year-to-date, there has been close to 4500 store closings according to ICSC (International Counsel of Shopping Centers). That would put 2009 on pace with 2006, when a total of 4,730 stores closings. The number of closings is far short of the 10,000 to 12,000 closings experts projected.
Some experts are seeing the fewer-than-expected closings as a sign that the worst is over for the industry, especially given the broader economic stabilization that has emerged in recent months. But a number of retail consultants experts
contend that many underperforming stores were kept in business this year thanks to rent relief measures granted by their landlords, as well as a great deal of cost-cutting.
There are still reasons for concern, the national unemployment rate is now over 10 percent, and there are lackluster projections for the 2009 holiday shopping season, a period of paramount importance to retailers' annual sales. This holiday season will likely be the second worst in 42 years, with flat growth in same-store sales and a 1percent decline in total sales.
Many underperforming stores managed to stay open this year, in large part to the retailer’s successful efforts to secure rent reductions rather than to a better than expected sales results.
Excess Space Retail Services Inc.,a Huntington Beach, Calif.-based real estate disposition and lease restructuring firm, expects to see anywhere from 6,000 to 8,000 store closings in the first two quarters of 2010.
"At the end of 2008, we thought that 2009 would be a record-setting year as it relates to store closures, but something very different occurred, retailers were able to [use poor market conditions] to open up a dialogue with landlords to restructure leases to make it more feasible to operate under-performing locations," according to Excess Space’s principal Alvin Williams . "Retailers have really done all they can to keep their lights on in 2009, and we think in 2010, retailers that were unable to restructure their leases or continue to struggle in spite of restructuring" will close stores, he adds.
It looks as though the predictions for record store closings have just moved into 2010 and that most brick and mortar stores will continue to struggle.
The Holiday Season - The Best Time For A Store Closing Sale
Nov/10/2009 08:54 Filed in: Store Closing
Sale
The
last two months of the year is the best time to conduct
your Store Closing Sale or Going Out of Business Sale
if your goal is to maximize your return on investment.
This is especially true this year with the current
recession. The last three months of the year provide
the highest volume and profitability for the vast
majority of retailers. This makes the last quarter the
best time to conduct your Store Closing Sale. Here's
why:
• The holiday season is the best time of the year for most retailers. A Store Closing Sale is the fastest and safest way to sell a store for the highest possible cash price.
• A Closing Sale during the last quarter allows your inventory to be sold out at the highest possible profit margins, in the shortest period of time, with the lowest advertising and other expenses, thus maximizing your return.
• All sales are cash, and your cash flow becomes positive almost immediately.
• Consumers always spend more for the holidays and are more likely to shop a well-planned and advertised Store Closing Sale. Price conscious consumers are more attracted to these sales than ever before.
• The holiday season is the best time of the year for most retailers. A Store Closing Sale is the fastest and safest way to sell a store for the highest possible cash price.
• A Closing Sale during the last quarter allows your inventory to be sold out at the highest possible profit margins, in the shortest period of time, with the lowest advertising and other expenses, thus maximizing your return.
• All sales are cash, and your cash flow becomes positive almost immediately.
• Consumers always spend more for the holidays and are more likely to shop a well-planned and advertised Store Closing Sale. Price conscious consumers are more attracted to these sales than ever before.
The Economy - Small Retailers - Store Closing Sales
Nov/05/2009 07:45 Filed in:
Small Retailer, Store Closing Sale, Cash
Flow
Economists
are telling us the recession is over, but it doesn't
feel like it to most retailers. I don't expect 2010 to
feel much better.
Inflation and taxes won't be a problem next year. There is no pressure to raise prices or taxes. In fact we are currently in a deflationary environment. However, as the economy recovers inflation is a very real threat. Be prepared to raise prices and pay more taxes when a recovery begins.
The economy is still very fragile. We haven't seen the worst of housing foreclosures. Problems in the commercial real estate market are just beginning to materialize, the unemployment rate is still rising and there is very little lending.
The economic stimulus will hinder retail sales for years. Huge government deficits will only go away with big tax increases, high inflation or both. Consumers are saving money to rebuild devastated retirement and savings accounts and replace lost home equity. All of this will decrease disposable income spent in stores. Retail spending will not reach 2007 levels until some time after 2020, if then.
Obtaining the credit necessary to do business is a long-term problem. Government debt-to-finance deficits will dry up credit for business making it very difficult to borrow.
Imports will become even more expensive. Foreign governments are trying to stimulate their economies by giving consumers more to spend. This way they rely less on declining exports to the United States. Retailers should begin looking for domestic manufacturers. As inflation takes hold, the value of the dollar drops and foreign imports become more expensive, products from this country will become more attractive. That's good for our manufacturers.
The retail industry will continue to consolidate. Stronger retailers with buying power and credit will expand while weaker retailers go out of business. The on-line retailers will continue to prosper at the expense of brick and mortar stores.
Retailers without a significant competitive advantage and strong balance sheets are not likely to survive. If your business is struggling it may be time to take a close look at the options for boosting sales and improving profitability or, if that's not possible, recovering the maximum possible return from your inventory and other assets. The best way to accomplish that is through a Store Closing Sale or Going Out of Business Sale.
CCH Consulting specializes in Store Closing Sales and Going Out of Business Sales for small independent retailers. Give us a call at 520-305-9693 for more information. Visit www.retailstoreclosing.com to learn about our three approaches to Store Closing Sales - "Do-It-Yourself", "Help-U-Do It" or "Do-It-For U"
Inflation and taxes won't be a problem next year. There is no pressure to raise prices or taxes. In fact we are currently in a deflationary environment. However, as the economy recovers inflation is a very real threat. Be prepared to raise prices and pay more taxes when a recovery begins.
The economy is still very fragile. We haven't seen the worst of housing foreclosures. Problems in the commercial real estate market are just beginning to materialize, the unemployment rate is still rising and there is very little lending.
The economic stimulus will hinder retail sales for years. Huge government deficits will only go away with big tax increases, high inflation or both. Consumers are saving money to rebuild devastated retirement and savings accounts and replace lost home equity. All of this will decrease disposable income spent in stores. Retail spending will not reach 2007 levels until some time after 2020, if then.
Obtaining the credit necessary to do business is a long-term problem. Government debt-to-finance deficits will dry up credit for business making it very difficult to borrow.
Imports will become even more expensive. Foreign governments are trying to stimulate their economies by giving consumers more to spend. This way they rely less on declining exports to the United States. Retailers should begin looking for domestic manufacturers. As inflation takes hold, the value of the dollar drops and foreign imports become more expensive, products from this country will become more attractive. That's good for our manufacturers.
The retail industry will continue to consolidate. Stronger retailers with buying power and credit will expand while weaker retailers go out of business. The on-line retailers will continue to prosper at the expense of brick and mortar stores.
Retailers without a significant competitive advantage and strong balance sheets are not likely to survive. If your business is struggling it may be time to take a close look at the options for boosting sales and improving profitability or, if that's not possible, recovering the maximum possible return from your inventory and other assets. The best way to accomplish that is through a Store Closing Sale or Going Out of Business Sale.
CCH Consulting specializes in Store Closing Sales and Going Out of Business Sales for small independent retailers. Give us a call at 520-305-9693 for more information. Visit www.retailstoreclosing.com to learn about our three approaches to Store Closing Sales - "Do-It-Yourself", "Help-U-Do It" or "Do-It-For U"
Small Retailers Worry As Online Retailers Are Poised For Profits This Holiday Season
Nov/04/2009 07:58 Filed in: Small
Retailer
As many small retailers
cut back on inventory levels and holiday staffing in
efforts to avoid the massive discounts needed last
holiday season, online retail is bringing in more
sales. What's standing between online and small
retailers? Maybe it's a little innovation.
According to Forrester's State of Online Retail 2009Profitability, Economy and Multichannel," 42% of the online retailers surveyed say they increased their conversion rates during the first half of 2009, compared to the same period of 2008, to an average of 3.4%. And beyond that, half of online retailers say sales should be better than for 2009, following an average growth rate of 18% in 2008 web sales over 2007. The National Retail Federation found that 80% of online retailers predict growth this quarter.
Those numbers are even more optimistic considering the state of general retail leading up to the quintessential holiday shopping season, where there is a predicted 1% drop in retail sales this holiday season.
U.S. shoppers on average rate e-commerce shopping more highly than at traditional retailers, according to the University of Michigan American Consumer Satisfaction Index. And online retailers are increasingly conscious of new ways to improve their business.
According to eMarketer, 57% of web retailers have a Facebook page or advertise there. 41% are on YouTube, 28.6% on MySpace and 20.4% on Twitter. In all, almost three-quarters of the merchants in the company's Internet Retailer Top 500 Guide have a presence on at least one of the major social networks or social shopping sites.
That's not saying there's a direct correlation between a social media presence and sales, but if offline retailers were spending more time getting where their customers are — and listening to what they want and care about — they might also be increasing sales this season instead of cutting back on inventory.
To contact Solutions For Retailers, call 520-305-9693
Visit www.retailstoreclosing.com for information on Store Closing Sales and Going Out of Business Sales
According to Forrester's State of Online Retail 2009Profitability, Economy and Multichannel," 42% of the online retailers surveyed say they increased their conversion rates during the first half of 2009, compared to the same period of 2008, to an average of 3.4%. And beyond that, half of online retailers say sales should be better than for 2009, following an average growth rate of 18% in 2008 web sales over 2007. The National Retail Federation found that 80% of online retailers predict growth this quarter.
Those numbers are even more optimistic considering the state of general retail leading up to the quintessential holiday shopping season, where there is a predicted 1% drop in retail sales this holiday season.
U.S. shoppers on average rate e-commerce shopping more highly than at traditional retailers, according to the University of Michigan American Consumer Satisfaction Index. And online retailers are increasingly conscious of new ways to improve their business.
According to eMarketer, 57% of web retailers have a Facebook page or advertise there. 41% are on YouTube, 28.6% on MySpace and 20.4% on Twitter. In all, almost three-quarters of the merchants in the company's Internet Retailer Top 500 Guide have a presence on at least one of the major social networks or social shopping sites.
That's not saying there's a direct correlation between a social media presence and sales, but if offline retailers were spending more time getting where their customers are — and listening to what they want and care about — they might also be increasing sales this season instead of cutting back on inventory.
To contact Solutions For Retailers, call 520-305-9693
Visit www.retailstoreclosing.com for information on Store Closing Sales and Going Out of Business Sales