By Mike Lee
The disaster and gloom retailers will explain the retail industry is on its knees. There have been 160,000 retail failures in america in 2008. It’s believed an additional 200,000 will fail during 2009. Consumer spending and retail sales are shedding fast.
The reason why you can prosper with the recession
You don’t have to become a casualty from the recession. The possibilities for retailers are greater today than at any period within the last 3 decades. Your business can survive – and thrive – with the recession. This is because simple. With more than 360,000 retail failures expected in only 2 yrs, your competitors is scaling down fast. Considerably faster than retail expenses are slowing lower. What this means is there are other available customers per store.When Circuit City closed lower, all of their customers didn’t stop spending. They transported on spending, they simply needed to find elsewhere to look. Best To Buy was the biggest benefactor of Circuit City’s demise. Almost overnight, their subscriber base grown as well as their sales soared.
The herd mentality in retail at this time would be to slash prices to draw in these extra customers. Everywhere you appear, you will find aggressive sales and crazy cut prices. Retail consultants are preaching the necessity to cut prices to stay competitive. This mentality only accelerates the probability of retail failure. By slashing prices, all you do is burning your profit, which puts pressure in your cashflow and causes it to be harder to help keep replenishing your stock. Avoid buying into this hype no matter what. You don’t need to slash and burn to create sales. Retailers appear to possess forgotten nearly all customers have money to invest. All of their marketing capital goes toward fighting to draw in the discount hunters. Hardly any has been allocated to attracting quality customers who’ve money to invest. Which customer group comprises nearly all shoppers today.
How will you take advantage of this rise in available customers? Identify your target audience. Who’re the standard customers who purchase your most lucrative merchandise? How does one classify them? Knowing who they really are, the next move is to discover where they’re. Exactly what do they read? Where will they congregate? What professional or community groups will they fit in with? Understanding around you are able to regarding your target audience is a vital foundation to attracting the client who’s ready to spend some money for the quality merchandise. Make sure that all of your marketing money is spent speaking straight to this target audience. Concentrate on the newspapers they read, the particular groups they fit in with, the places they congregate. For instance, should you possess a souvenir shop, you’d target vacationers by advertising in popular hotels, tourist locations, not to mention, airports along with other transport hubs. Make sure you market these products which are both lucrative and popular. By providing quality merchandise straight to your target audience, you’ll attract most of the customers who accustomed to frequent a store which has since closed lower. This tactic will swell your subscriber base and also be profits in your most lucrative merchandise with no need to slash your prices and burn your profits.
Do this strategy today to obtain your share of the large quantity of customers who’re searching for brand new places to look, watching profits and profit grow regardless of the recession.
