Retail Minded’s First Blog

Welcome to the first blog by Retail Minded.

Retail Minded was founded to support the small business owner in the industries of retail. While we respect the “big dogs” out there, such as Nordstrom’s and Macy’s, it is in our interest to help independent retail and wholesale business owners make it in the challenging world of retail. Whether you are just starting out, trying to stay afloat, or simply want to improve what you already have going, The Blog by Retail Minded is your source for trusted support when it comes to small business retail.

Ever since I was a young girl, I have been drawn to the world of retail. Surprisingly, however, I hate to shop. I blame this on the lack of fun it is for me since I see every single capacity which makes up shopping as part of my job. I can’t walk into a store or down a street without thinking about the store front windows, the cash wrap displays, the background music, the overhead lighting, the customer service or lack of it, and how all these little things and more will ultimately effect whether I want to buy something or not. It’s exhausting. Fortunately, over time, retail stores have evolved from cookie cutter department store settings to unique, independent store fronts with one of a kind product assortments as well as personalities. Shopping doesn’t have to be in a look-a-like mall anymore, but rather it can be a new adventure each time. The exhausting thoughts of retail still clutter my mind, however, as I zig zag in and out of every store.

While I give the utmost respect to any store owner for taking the chance to open a retail store, I often wonder why it is they thought they would be qualified to do so. Is it because they love dogs and thought opening a pet store would be fun? Maybe because they think their impeccable style will transfer to a successful fashion boutique? Or possibly because they simply like to shop so they thought working in retail would be a good idea?

Independent wholesalers strike me as just as impressive business owners, whether successful or not. It takes a lot of time to produce a product, market it, sell it, and maintain business. Although it may sound simple, it’s not. However, the reward can be amazing when you see your product come to life on a retailer’s shelf or in a catalog. Even more exciting is when re-orders come in. Unfortunately, many wholesalers who have great product never see this excitement because they can’t see pass their product. Often, they neglect to view their product from a retailer’s perspective, as well as a consumer’s perspective. Is the packaging up to par? How about the markup? And what about their competition?

Separating personal attachment from professional presentation is an obstacle I see faced all the time. Sometimes I see it beat. More often, it gets in the way. So rather than ask myself, I ask you – why are you in the business of retail?

A Form of Survival

Most of us approach work as a form of survival. Simply put, we need to make money to exist in our every day living. For many of us, we work to survive. For fewer of us, we survive, or live, to work. In retail, I find that a lot of people feel the pleasure of their jobs is often rewarding, however the financial gains or losses can be discouraging. The passion to continue in a job they love can often keep them moving forward, however money finally makes the last call as to whether or not their doors stay open or closed.

If you talk to a successful retail boutique owner, you will either walk away feeling one of two things – complete excitement for your own potential or complete fear in the reality of your commitment, competition, product assortment, merchandising, staff, and every other asset that makes up your business. What may have started out as charming, fun way to make a living has suddenly become the very thing you hate most. Let’s hope this isn’t the case for most of you. But for many of you, it is. So how do you get past the work and back to the reward that made you want to start your business in the first place? Knowledge.

Understanding the Dynamics of Retail

From my experience, retail and wholesale business owners typically don’t have a background in the business of retail. I have worked with lawyers by day, boutique owners by night. Often, I work with moms who love “something” enough to have started a business in it, naively thinking it will take off as easily as they thought of it and be fun along the way. Hopefully, that’s the case for some of you. More likely, that’s the case for only a few of you.

To break retail down a bit, you first need to understand the supply chain of retail. The products sold in stores start somewhere, and that somewhere is in a manufacturing facility. For boutique owners, the manufacturer, who is sometimes referred to as the producer, may also be the wholesaler, who supplies the product to the retailer. Some wholesalers also create their own product. Once the wholesaler has the product ready to be sold to retail, it then is sold at a retailer. In review, this is the basic supply chain: Manufacturer to wholesaler to retailer. There are always exceptions, however this is the most common. In addition, it is important to remember that in between each of these steps may also be third parties who are involved in importing the goods, packaging the goods, and delivering the goods. The supply chain will ultimately be reflective of each individual product.

A retailer can present themselves in a variety of ways, including but not limited to online, in a catalog, through a kiosk, door to door, as a vending machine, through television shopping networks, telephone and/or mail order, and of course, as a free standing store. Once the type of retailer has been determined, you can break it down even further into one of four categories – corporate, cooperative, independent, or franchise. You can also determine if a retailer is luxury, specialty, department or discount store based on the product assortment as well as their target market.

Wholesalers can also be divided up into categories based on what they sell and how they sell it. Some wholesalers sell one specific product, others sell a variety of the same type of products. This would be referred to as either a single or general line wholesaler, respectively. There are also cash and carry wholesalers, who sell their product for cash right away and you can take it with you right away versus placing an order and receiving it at a later date. For small business owners, wholesalers also manufactur the product in which they represent. Typically, boutiques refer to this type of wholesaler simply as a designer. They both produce the product and sell the product. Some designers, however, have sales associates to sell their product. When you are just starting out or maintaining a relatively small business, acting as both the wholesaler and manufacture can be more cost effective. There are reasons to change this scenario a bit, though, as sales increase, as well as in an effort to increase sales. We will discuss this scenario in more depth in a future blog.

If you already understand the world of retail, then today’s blog was hopefully a quick, entry level review for you. For some of you, however, hopefully you learned a few new things. Please check back daily for updated blogs on all areas of retail, including marketing, merchandising, publicity, and more. The opportunity for knowledge is endless in retail, which is why The Blog by Retail Minded is your trusted source of support for staying in the know of all things retail.

If you have a specific question for The Blog by Retail Minded, please email me directly at Nicole@retailminded.com with the subject “Question for Blog” in the subject line. I look forward to hearing from you, as well as speaking to you through  The Blog by Retail Minded.

Happy Retail!