Blog #3

Survival Time
By: Wayne Niemi
Source:http://www.wwd.com/footwear-news/survival-time-1972577

Trying to survive in this economy has brought many companies together. This article shows how companies are starting to work together.

For example, retailers should buy less, and focus on quality more. That's what consumers are doing, and what better way to generate sales than to mirror the spending habits of your customers? Says Isaac Fadlon, co-owner of Los Angeles based boutique, Sportie L.A., "If something hits, you’re going to be in a better position. If you have to chase it, and if you miss it, you’re still better off than having to do huge markdowns later and give it away.”

Additionally, Tarek Hassan, co-owner of Boston-based The Tannery, says “...consumers are going back to more classic, original, authentic product. They want to feel that it’s worth what they’re spending their money on. They’re looking for a brand name they can trust that has authenticity and has a life span behind it.”

The moral? Don't be tempted to overstock, because it will more likely than not lead to excessive inventory, then excessive markdowns.

Another tip is to be sure that sales associates are knowledgeable about the product that they're selling. They need to spend more time on the floor, and connect with the customer to make that sale. Fadlon also suggested that when store traffic is down, retailers should brainstorm about strategic growth plans, such as new and inventive ways to promote their businesses that won't break their budget.

Thirdly, Fadlon suggests talking to your landlord about a reduced rent for your store space. Most would be open to the idea of discussing the rent, and perhaps lowering it.

In the end, the best advice that can be given is keeping a positive attitude, and tell yourself that failing isn't an option. Embrace the challenge that is facing everyone, and strive to be the best you can be for your customers.