Retail Observer

RETAILOBSERVER.COM DECEMBER 2015 54 A s we reflect on the retail landscape of 2015, the biggest headlines of the year were generally of uncertainty. Poor weather drove January business to a gloomy start (-3.8 percent). We fought through a port strike on the west coast that slowed the import of both parts and finished goods. Supplier challenges included factory setbacks, fires and general inventory issues across the board. All of this was trumped by the uncertainty of a merger between two of the industry's domestic giants. Considering all of these headwinds, the appliance industry still proved to have a strong year. Retail rebounded with increasingly stronger business each quarter to end the year on a positive note. With these headwinds behind us, we look toward 2016 with optimism. The latest projections place the estimated industry growth at or around 4.5 percent for the year. This is certainly good news for independent retailers. The question is, what are you doing to get your unfair share of this opportunity? What processes have you put in place within your organization to plan, direct and manage your potential growth. Unfortunately for most small to medium businesses, the first mistake we make is not having a plan. We assume that the successes that we have experienced in the past will continue to propel us forward. Let me say it load and clear… Start with a plan!! You must have a vision for your company and put the pieces in place to make the steps necessary to achieve your goals. The longer we stay involved in the same business, the easier it is to become complacent. It is similar to driving a car! After so many years of doing it, we simply hop in, turn the key and go. But, let me ask you this, when was the last time you got into a car without a destination in mind? You either have it mapped out in your head, or have the aid of a mobile device. Whichever of these tools you choose, there is definitely a destination that you are aiming for. The same thing should apply to your business. Even though it feels like you're doing the same thing, you need to have clearly defined goals and objectives. If you don't have measurable goals, how do you know how your business is faring? How can you assess the strength of your team? How can you challenge your teams–each and every day—to ensure they are stretching to their potential? So now that you know you need a plan, where do you start? Popeye had spinach. Your spinach is information! The more you have, the stronger you will be at predicting and planning. Reach out to your group, your peers, and your manufacturers to gather as much relevant industry information as you can. Who's winning, who is losing? This will help build the base for your expectations. Should your company grow faster than the market, what new space should you play in? As you establish these values, you need to take a hard look at the strength of your team. Do you have the right amount of sales people? Do you have enough trucks? And are your hours enough to cover the demand? The industry opportunity is expected to grow for the next several years, taking into consideration the replacement cycle and the shift of national retail. This will prove to be a huge opportunity for independent retail and should be factored into your plan. Once you establish the opportunity number that exists for your business, the fun part begins. How do you achieve this number? Is it stronger promotional presence in your market? Is it aggressive marketing in the digital space? Is it additional "industry night" events at your store? The answer to this will represent the merchandising and marketing strategy that you will deploy. As you look specifically at your merchandising in store, the goal is to find a happy medium between velocity items that can drive foot traffic and premium products that add value and profit to your business. The type of consumer or market that you are in will determine which path you take for success. Instead of choosing a lane, low or high, an ideal environment will reflect a sales plan and floor design that takes the middle road. Take your half out of the fat middle! The refreshing thing about building a plan is that it is your annual opportunity to take a look in the mirror and developing or re-developing what your company represents in the market. And the beauty of the Independent retailer is we are nimble enough to react. Independent retailers not only have the ABILITY to develop a strong plan, we have the AGILITY to address the changing market. Nobody is in a better position to react and win in the marketplace than the backbone of American commerce, the Independent Retailer! START WITH A PLAN RO Patrick Maloney Senior VP Appliances Nationwide Marketing Group Patrick Maloney Appliance Trends

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