David Livingston

BrainTrust Query: Retailing in the Absence of Recovery

March 15, 2010

FROM RETAILWIRE:
It seems that each week experts look for even the faintest sign that the fabled "recovery" has begun. The problem with a speculative view of recovery is that it's oddly similar to the shortsighted behavior that brought on the recession in the first place. How should strategies change for retailers during this recovery versus those coming out of previous economic downturns?      [more...]

This article seems to be about a year out of date. Right now the economy is exploding with new opportunity. I couldn't be happier. During the past year the typical household has seen their 401ks come rocketing back by hundreds of thousands of dollars. You can buy new home at a fraction of the cost from just a few years ago and finance it at less than 5%. Have you seen the prime rate? You can borrow money for almost free.

When retailers use the economy as an excuse for poor results, they are simply shifting the blame from their own inadequacies. Good retailers are moving forward all time and advancing, constantly taking advantage of the current state of the economy, regardless if it is good or bad. During the past two years we have seen so many good examples of well-run companies taking advantage of their weaker competitors and using the state of the economy to their advantage.

Good retailers may have bumps in the road but their overall trend will be increased sales and profits. The key strategy in dealing with any state of the economy is to first stop wasting time and resources by shamelessly blaming the economy and focus more on producing results.