Close Menu
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
Facebook X (Twitter) Instagram
Sunday, May 18
  • Subscribe
  • Submit Content
  • About Us
    • Contact Us
  • Advertise
    • Display Advertising
    • Email Marketing Campaigns
    • Newsletter Advertising
    • Sponsored Content
    • Lead Generation Services
  • Top Product Sources
Facebook X (Twitter) Instagram
WholesaleCentral.com Blog
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
WholesaleCentral.com Blog
Home»Featured Products»Product News»Stay Ahead of the Curve
Product News

Stay Ahead of the Curve

PublisherBy PublisherNovember 1, 2010Updated:February 8, 20233 Mins Read
Facebook Twitter Email
Share
Facebook Twitter Email

A new Whitepaper from the National Retail Federation offers some concrete marketing points for retailers still struggling in a weak economy. Titled, “Stay Ahead of the Curve,” the report presents nine solid ideas and suggestions for those riding out the current economic doldrums.

Go On The Offensive

A new playbook must be developed for the evolving environment. Going forward, new, differentiated and unique merchandise, targeted to the right consumer, is a must. While value will likely remain a key ingredient to purchase, retailers need to stoke want and desire with excitement. Your business plan should evolve, rather than be etched in stone.

Thinking About It Differently

With credit harder to obtain, emphasis will be on financing ongoing operations rather than pursuing innovation, the historic driver of sales. There will be less investment in store openings, entry into new markets and implementation of new growth concepts. It is through the appropriate and strategic allocation of cash flow that companies will find ways to profitably grow market share.

Doing It Differently

Inventory management is one of the important keys to managing the distribution process. The strategy of a steadily increasing initial markup to offset the increasing markdown rate/allowance must be reversed, so that the consumer perceives greater value at the outset.

Not Business As Usual

Markdowns, and the corresponding inventory levels from which they result, will continue to have the most significant impact on margins, regardless of the merchandise issues that have also been a factor. Quantity and quality are critical issues, but the industry must strive to have a better balance of merchandise.

Developing A More Profitable Business Model

Management must focus on redirecting cash flow toward greater differentiation. A top priority is intense research into the target consumer, something very few brands or retailers do on a consistent basis. The answer to why mall and store traffic has been on the decline for most is simple. Aside from the economic slowdown of recent quarters, there is little incentive for consumers to visit, when the expectation is that they will not see anything new.

Higher Average Selling Prices

Lower inventories and reduced markdowns are currently contributing to gross margin improvement, and lower sourcing costs later this year could also play a role in improving that margin. Retailers need to increase their focus on driving gross profit per square foot to counteract growth concerns. They are past the days of moving the markup higher; rather, the strategy should evolve toward a higher rate of sell-through and inventory turnover.

SKU Rationalization

Wherever possible, minimize clutter in presentation. Inventory reduction and allocation has been a prime focus over the past 12 months. Retail traffic and sales declines will likely stabilize over the next few months, due to easier comparisons and slow improvement in economic activity. The consumer will remain value focused, and promotional activity will continue.

Focus On Maximizing Gross Profit Per Square Foot

Management needs to begin considering how to move back to a model that includes more full price selling through lower inventory, a better mix and balance. It is better to lose a sale than have too much excess at the end of the season.

Sifting Through The Rubble

Strategy has to shift back to the consumer, and truly understanding their wants and needs. There has to be more collaboration between retailers and vendors in managing the merchandise assortment.

economy marketing
Share. Facebook Twitter Email
Previous ArticleTeeda.com Combines Discount Jewelry With Fast Shipping
Next Article Accessories & Apparel at Low Prices

Related Posts

Crafting a Marketing Strategy for Electronics Retailers

January 21, 2025

Effective Digital Marketing Strategies for Health & Wellness Brands

January 21, 2025

Mastering Beauty Ads: 10 Strategies for Engaging Your Audience | Blog.Wholesalecentrl.com 

January 21, 2025
Sign Up for Buyer Updates
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

how-to
Wholesale 101 for Buyers

Amazon Return Pallets For Sale: How to Profit

11 Mins ReadUpdated:August 9, 2024

A big trend among some online sellers is buying Amazon return pallets and overstock and…

Retail News

5 Essential Tax Season Preparation Tips

10 Mins ReadUpdated:August 8, 2024

Are you ready for tax season? April 18 is approaching quickly, and many day-to-day decisions…

Ecommerce

7 Steps to Create Successful Shipping for Your Business

6 Mins ReadUpdated:August 8, 2024

by Sidney Karanja Today’s business environment is more globalized and complex than ever before. In…

Product News

Overstock Liquidations

6 Mins ReadUpdated:August 9, 2024

Overstock inventory refers to the excess goods or merchandise that a retailer has on hand…

Latest Posts

Crafting a Marketing Strategy for Electronics Retailers

January 21, 2025

Effective Digital Marketing Strategies for Health & Wellness Brands

January 21, 2025

Mastering Beauty Ads: 10 Strategies for Engaging Your Audience | Blog.Wholesalecentrl.com 

January 21, 2025

Jewelry Marketing Strategies: How to Attract Customers and Boost Sales in a Competitive Market

December 31, 2024

How to Open a Gift Shop: A Step-By-Step Guide

December 23, 2024

Online Marketing Calendar for 2025: Don’t Miss These Critical Dates

December 17, 2024
  • About Us
  • Subscribe
  • Contact Us
  • Advertise
  • Find Wholesale Sources
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

Follow Us:

Copyright © 2025. Sumner Communications, Inc..

Type above and press Enter to search. Press Esc to cancel.