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"