Doron Levy

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...]

Retailers need to get back to retailing. Relying on heavy discounts and unreasonable promotions are affecting profitability in the long term as merchants condition their customers to rely on loss leaders for everyday shopping. Value and price are very important but something more needs to be offered.

Think about it. Customers are so beaten down because of the economy and Obama and Iraq and Afghanistan and foreclosures and iPhone Apps that don't do anything, any great service they get at the retail level will be forever ingrained in their minds. I say it's time to get back to basics. After all, retail is all about adaptability.