Do ostriches really bury their heads in the ground? This popular metaphor is believed to have originated with observations of ostriches that appear to bury their heads in the sand to avoid predators. Some people think this behaviour results from the fact that ostriches are so stupid that they believe burying their heads will make them invisible to predators. In other words, if they can’t see the predators, then the predators can’t see them. Of course there are other places one can sh
ove one’s head where the sun don’t shine, with similar effect.
Are you a stupid retailer with your head in the dark?
Menswear was down seven per cent overall in October in the States, while women’s dropped by 14 per cent, according to Blacks’ exclusive trends. Menswear saw declines across the board, except for when it came to denim and casual pants. Womenswear, meanwhile, saw strength in dresses, but nearly a 40 per cent decline in special orders.
These are massive numbers.
It is generally accepted worldwide that we are in a natural retail slowdown. And yet there are some folk who simply refuse to accept it. See comments to my article last week, The grim retail reaper.
These commentators simply don’t get it. We can continue to be bullish despite all the warning signs. We can be brave and bold and not succumb to reality. In fact most consultants, if not all, would take an approach to attempt to convince retailers to take steps to grow regardless of the consequences. That, they would say, is the only way to get out of the quagmire.
But it is plain stupid to put your head in the sand.
If the juggernaut continues to steam on, without corrective action, there will be tears. You cannot go against the flow of nature. Continue to put on a positive face and I can assure you that your markdowns will tell the story. So will your GP and NP.
One fair observation last week is that we get ourselves onto a treadmill and can’t get off. This treadmill is dictated by higher rents and higher wages.
One of our clients recently negotiated a rental with a large landlord which is less than a third of what they were paying! Similarly, controlling rosters with an iron fist has reduced wages considerably. This retailer is in an excellent position to ride out the storm and to emerge on the other side much stronger.
So take your choice. Redouble your efforts having lost sight of your objectives or wake up to reality.
Stuart Bennie is a retail consultant at Impact Retailing www.impactretailing.com.au and can be contacted at stuart@impactretailing.com.au or 0414 631 702
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