Category: The Economy

Recession? No Thanks, Not For Me!

1/23/2023

Try as we might, it seems that there will be no avoiding a recession in 2023. How deep it is, and how prolonged, still remains to be seen.

For retailers, it's not a matter of whether your business will be impacted, just how much. Alas, retail does not lend itself to being recession proof.

However, there are ways to make your business more recession resistant.

The place to start? First, find out what your Debt-to-Worth ratio is right now. That is the #1 measure of the financial strength of your business. It's a key indicator of your ability to weather an economic downturn.

What to Expect This Holiday Season...and From Whom?

10/3/2022

"Consumer confidence rises to five month high."
That headline from Chain Store Age* brings smiles to retailers.

Consumer confidence is a key indicator of retail sales, and this increasing confidence as we head into the holiday season is very welcome indeed.

“Concerns about inflation dissipated further in September—prompted largely by declining prices at the gas pump—and are now at their lowest level since the start of the year,” according to Lynn Franco, senior director of economic indicators at The Conference Board.
"Looking ahead, the improvement in confidence may bode well for consumer spending in the final months of 2022," added Franco.

But of course, there is no one-size-fits-all upside here.

More Spending on Necessities

Enough Already with the Uncontrollables

7/11/2022

A frequent recommendation for how to navigate the current economic uncertainty is to be more diligent about controlling expenses, and focus on profit. (You'll see; we challenge that below.)

Hmm. Concentrating on profits is easier said than done in today's environment, with cost increases proliferating under the umbrella of inflation.

Workers are able to "shop around" for higher wages and benefits.
Shipping costs are increasing.
Fees for online services are increasing.
Transaction costs, from listings to advertising to warehousing to fulfillment for e-commerce services are increasing.

Recession? No Thanks, Not For Me!

What to Expect This Holiday Season...and From Whom?

Enough Already with the Uncontrollables

The Perspective of Retail Experts