Well, I’m certainly not an ordained clergy, but I do find some pertinent wisdom for retailers in the “Good Book." As we hold on for dear life in a very scary economy, it is important to realize that the economy has always been fickle and cyclical. Things are bad right now and will probably get worse before they get better. The cost of a barrel of oil is over the 100-dollar mark which seriously impacted our home heating costs, travel expenses, and your cost of goods. Food is at an all time high. Food pantries are seeing more people in need than ever before. The sub-prime mortgage-default fiasco keeps growing bigger than anyone ever anticipated and is further trashing the “American Dream” for many homeowners. Home prices, representing the average American’s most valuable asset, continue to tumble into the abyss. The unemployment rate is skyrocketing in the United States and most leading economists are predicting with increasing confidence that we are already in a recession or about to enter one. The world is as stable as a three-legged elephant on a tight rope. Tensions in Pakistan and Afghanistan are steadily increasing. Iraq remains unstable and Iran threatens our oil supplies. China and India are competing for our jobs and our foreign policy is being conducted by a lame duck administration that will be out of power within a year. Oh, and how about the stock market? My question….WHY DO WE EVEN BOTHER TO GET UP IN THE MORNING? Well, if you think you can personally do something about all of these problems, run for political office or go back to bed.

The fact is that in spite of all the media hype of doom and gloom, we can and will survive. If we direct our positive energies to our own personal space instead of worrying about things over which we have little or no control, we can even be successful in these less-than-stellar times. Granted, these are not times where highly confident consumers are going to be busting down our retail doors, but they still have some money, and they’re going to spend it somewhere.

ADJUST YOUR EXPECTATIONS
These are not extraordinary times of growth, and we should not expect that every day is going to be great. Conversely, we should not expect that every day will be a disaster. Unrealistic expectations of disaster are immobilizing and can become a self-fulfilling prophecy. Every day is a new day presenting us with new opportunities in spite of what the media may say. As I’m sure you all realize, bad news makes for better stories than good news.

FOCUS ON YOUR CORE STRENGTH
On January 4th, Talbots, a Hingham, MA based retailer of classic apparel, announced it would close 78 of its stores by September of 2008. Talbots, long known for its very successful over 35 women’s apparel stores, will be closing its men’s and kid’s stores. In doing so, they have recognized their core strength is in classic women’s apparel and that is where they will refocus their energies. When times are going gangbusters, most of us can afford to take some calculated risks which may take us away from our original core strengths. Sometimes these risks will prove successful, other times they will not. In these times, it is critical to rediscover our core strengths and reinforce them.

DON'T OVERBUY OR TAKE UNNECESSARY CHANCES
Try to purchase just-in-time inventory rather than stocking several months ahead of the buying season. Ask your vendors for extended terms or the right to return unsold merchandise. Negotiate, negotiate, negotiate. Keep in mind that in a tight market, consumers are more apt to purchase what they need rather than what they want.

KNOW YOUR MISSION
Why do customers come into your stores and come back again and again? Every successful retailer has a mission that speaks to a customer segment. It could be the commitment to provide superior customer service all of the time. It could also be to provide the widest selection of merchandise for a particular customer segment. Whatever made you successful can keep you successful. Don’t be afraid to ask your frequent customers why they keep coming into your store and ask your new customers what brought them into your store and if they will return again. Your customers are your success.

REFRESH YOUR LOOK
Whenever I frequent a store, I do so expecting to see something new. Perhaps just moving merchandise to a new location will breathe some life into your store and keep it interesting to your customers. This is a low cost way of renewal and gives your store and merchandise a whole new freshness. Think of different themes for each section of your store. For instance, one section could highlight spring and summer vacations. This could very well be full-priced merchandise where customers could use their leftover holiday gift certificates without feeling guilty about how much they are spending.

STAY STRONG AND DISCIPLINED
In times of moderate growth, it is important to stay disciplined and on track. Retailers are multi-taskers and can easily be thrown off track. Every day we deal with vendors, customers, staff, and the media, all demanding our attention often at the same time. It’s easy to get distracted and lose focus and discipline. Having the organization and strength to make good and timely decisions is a necessity in today’s business climate. In the words of Judith Viorst, author: “Strength is the capacity to break a chocolate bar into four pieces with your bare hands, then just eat one of the pieces.”

LEND A HELPING HAND TO OTHERS WHO ARE LESS FORTUNATE
As previously mentioned, food pantries are in crisis. Food prices are through the roof and more and more families are relying on food pantries for basic subsistence. Think about sponsoring a food drive in your community. Challenge your staff to participate in a contest to see who can collect the most food. This is a WIN-WIN-WIN situation. First and foremost, you are responding to critical needs in your community. Second, you are providing a great team-building event for your staff. Third, you are telling the community that you care about people and that your business is socially responsible.

The current state of the economy presents many challenges for retailers and the population at large. There will be strife and discomfort, but there will also be challenges and opportunities. Although we cannot ignore the strife and discomfort in the world, it is much more productive to devote our energies to the challenges and opportunities that lie ahead. And try to remember that “this too will pass."

ABOUT THE AUTHOR
Don Capman is President and co-owner of J.D. Associates. He can be reached at don.capman@jdapos.com