The past two years have been a complete rollercoaster. Are you prepared for what the next wave will bring to your business? There are clouds on the horizon. Know what to do to weather the upcoming storm.
The sales boost that many retailers experienced after the first major wave of the pandemic is now slowing down. Macro trends are slowing on Google. Online furniture searches declined significantly in November and December.
Add to that the supply chain disruptions that continue to be problematic, especially as the industry approaches the annual Chinese lunar shutdowns. In addition, Covid outbreaks in Asia and the rapidly approaching Olympics are poised to create further problems.
Here in the U.S., operating expenses, especially wages, utilities, and fuel, are increasing rapidly. There are no more PPP Loans and other government grants that many businesses relied on in the past to subsidize their own operational cash flows during the last two years.
What can you do to prepare for the next turn on this business rollercoaster? Be prepared! Taking time to plan now will help you immensely as you face the next business hurdles on the horizon.
- Revisit your revenue forecasts and adjust your planning as appropriate.
- Right-size your inventory.
- Right-size your staffing, especially your non-selling staff.
- Make sure your gross margin data is correct. Many retailers are struggling to load freight surcharges, for example, into their costs of goods. This results in overstated margins, which can be dangerous as they try to cover increased operating expenses, especially if sales start to soften.
- Ramp up your revenue-generating processes such as sales training, in-home selling and improved visual merchandising, all of which are required to increase close rates and average tickets, two critical metrics in boosting your top line if both in-store and on-line traffic soften going forward.
We will get through this – together! The good news? We can help you prepare for the upcoming ride! Call us at (404)-432-2137 or email us.
