Inside Outdoor Spring 2020 Issue

W ell, you can throw out any comparisons to last year’s business, as they have now been rendered mean- ingless. A seismic change is underway in the land- scape of retailing – and it’s a whole new ballgame. Some stores began re-opening as early as May; many will reopen during the summer. Some will likely not re-open, period. This article addresses steps that can be taken now to maximize this critical time. Financial Let’s deal first with the financial aspect. Know- ing your cash position always allows you to make better business decisions. Sales projections for 30- 60-90-120 days out will help guide every financial decision. Cash flow reports should be updated as often as needed. (I have a great form that can be made available to anyone who wants it, just by emailing me.) It might also be a good idea to recalculate your break-even point, to make sure your inventory planning is based in reality. Where possible, make every fixed expense a variable expense, so that it can be tied to revenue. Selling payroll is the obvious one here. Have you negotiated with vendors regarding dat- ing and discounts? Have you been able to obtain some sort of rent relief from your landlord? Most landlords would rather have some rent than to see their space “go dark.” For the short term, margin is not the top priority: CASH is King! Regarding business interruption coverage, re- search your state’s regulations and contact your insurance carrier. If enacted into law, certain policy exclusions, which would normally prevent payment for business interruption, might be overridden. Inventory What is the current plan to sell through on-hand inventory by category? I am always in favor of streamlining the number of vendors carried in most By Ritchie Sayner The Remaking of Retail Practical steps to re-opening your doors In-Season EDITOR’S NOTE: As many retailers demonstrated immense agility to pivot their business during the unprecedented shutdown from COVID-19, now they face an even larger task: reopening their business in what is sure to be a drastically altered retail environment. With so much uncertainty surrounding the eventual lifting of “shelter in place” restrictions, Management One realized the need to create a roadmap for retailers to begin developing a strategy for reopening. Pulling from more than three decades of retail consulting experience, the “Retail Recovery Playbook” (available for free as a digital download) is a starting point for some tough conversations. By carefully considering the questions posed throughout this playbook, retailers can begin to find opportunity in the chaos and build a strategic path to recovery. Access your free digital copy at www.management-one.com/ retail-recovery-playbook. Inside Outdoor | SPRING 2020 16