there are good tables & wood tables

good morning crew,

if i had a dime for every time someone said "retail is dead," i'd be on a yacht somewhere by now. but here we are in 2024 & the retail apocalypse headlines are louder than ever.

“retail store closures are surging” with a 24% increase year-over year across all categories: ~1,000 family dollar stores, 315 cvs pharmacies, 51 macy’s stores, all 35 foxtrot stores, 22 abercrombie stores, all 16 outdoor voices stores, & the list goes on.

i can't argue with those stats, but let me hit you with some real talk:
that's not the full story.

the problem is, people think retail is just about selling stuff, but newsflash—it’s about so much more.

these retailers didn't fail at selling; they failed at profitability.

the real headline should be: "unprofitable retailers are dead."

so instead of feeding you just more doom & gloom, let's shift gears to talk about the retailers who are thriving too. bc what’s making them thrive also happens to be a perfect recipe for more merrymaking in life!

before we continue... a big thank you to this week's merry partner!

the best table is…

running a successful retail business requires a delicate balancing act on what i like to call the "profiTABLE" where the 4 legs of the business need to be just right: products, people, places, & processes.

for my fellow finance freaks, here’s how this lines up with your P&L:

• products = sales revenue & cost of goods sold expense

• people = salaries expense

• places = rent expense

• processes = all other expenses (plus that not-so-tiny non financial metric: conversion rate of traffic to orders)

steady, as we grow

why a table? glad you asked:

• easy recall: table is conveniently in the word — profiTABLE

• critical principle: a table, by its very nature, requires balance

ever been at a restaurant with a wobbly table? it’s that tiny annoyance that distracts you from enjoying your meal, & no amount of napkins shoved under the short leg can fix it.

same thing happens in retail when one of the legs of your business is out of sync. it might seem small at first, but it throws everything off balance, & suddenly, your entire operation feels shaky.

all four legs are essential because they directly impact traffic—the lifeblood of your store. think of traffic is the oxygen that keeps your business breathing. 

no people, no sales.
no sales, no business.
no business, no merrymaking.

4 flop stor(i)es

let’s break down how a wobbly table can make a business crumble:

1. people: when your team isn’t on the same page or isn’t trained well, customer service drops, morale sinks, people quit, and sales take a nosedive.

   • ex: sears poor customer service turned off customers & led to many vacant sears spaces

2. places: a bad location or store layout can keep shoppers away. if rent’s too high or you’ve got stores too close to each other, your sales might not even cover your rent.

   • ex: family dollar stores cannibalized each other to death.

3. products: if what you’re selling isn’t hitting the mark, the sales just won’t happen or they’re only happen one. if the goodies aren’t good, neither are sales.

   • ex: blockbuster sticking with rentals far too long.

4. processes: when your internal systems are a mess, everything feels off. this not only frustrates your team but also the customers, resulting in less sales.

   • ex: rue21 closing all locations in their third bankruptcy.

walmart is winning

if you like me, love a snazzy visualization with a clear message then you’re going to love this. if not, keep scrolling.

the below chart shows how walmart, amazon, & costco are crushing the retail game. yeah, these numbers include ecommerce, but let’s not forget most of these top dogs still make the majority of their money in-store.

shocking shopping stats: walmart operates more than 10,500 stores across the world & 90% of americans live within 10 miles of a walmart.

so, here’s the bottom line: retail isn’t dead—it’s just about finding the right balance. keep your products, people, places, and processes in check so that you’ll thrive where others stumble.

& guess what? this framework isn’t just for retail.

the 4 P’s are a recipe for merrymaking in life, too! when you balance what you do, who you surround yourself with, where you spend your time, & how you handle the journey, you’re setting yourself up for a joyful life.

p.s. let me know your thoughts on my new profiTABLE framework. i think i invented it, but i’m not entirely sure if i learned it subconsciously somewhere else so please do keep me honest.

p.p.s. if you know someone that works in or loves retail, will you pretty please forward this along? eager to get more eyes & feedback on my framework or should i say tablework 😉