Sat 15 Oct 2011
A letter from Marc Weiss
Posted by Evan Wise under Affiliate Accomplishments, Client Accomplishments, inspiration, strategy, and metrics
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Hi All,
Management One® has 92% of all classes processed for October. We are proud to announce that Management One® clients outpaced the report released yesterday by National Retail Federation. The NRF posted an increase in September sales vs. LY of 5.8%. Management One® clients had a total increase of 9.0% or 55% higher than the NRF average!
October is an important month for revisiting break evens and focusing on cash flow. The decisions made now will have a direct bearing on a retailer’s cash position on December 31st.
o What classes need to be fed?
o What classes will need cancellations and adjustments?
o What were the sell thru’s for fall? What additional actions need to be taken?
o How will the end of year targeted inventory be achieved? What actions need to be taken?
o What is the marketing and selling plan for Thanksgiving through New Years?
o What expenses can be better managed?
o Is there a special 4th Qtr. incentive for sales staff that can be implemented?
o What are the action plans on non performing classes?
o Are some classes being driven by a single vendor? Should that vendor become its own class to open dollars for new vendors in that class? We call these classes “Category Killers” that are dominated by a single vendor. Examples are Michael Stars, Brighton, Uggs, Toms, VSA, Southern Tide.
o What is the hiring and training process for temporary staff for the holidays?
o Are first delivery Spring orders in line with planned receiving?
o What is the markdown strategy going forward? When will it be triggered?
o What events are planned and how is the staff prepared to take advantage of those events?
o How is the flow of new seasonal goods positioned? Is off price part of the plan? Is Margin Buying part of the plan? Do key seasonal classes have the correct flow and amount of inventory coming in. Short season deliveries must be correct or business will be lost.
An in-depth discussion NOW will assure a happy follow up meeting in January! Beating the NRF averages is not an accident. The devil is in the details. This is not about gimmickry but solid fundamentals in every aspect of the business.
This is the best quarter of the year for our retailers to acquire new customers! What is being done to achieve that?
Happy Retailing,
Marc Weiss
Managing Director
Management One®
