Open With a Plan
As more and more California counties return to the red tier, more and more California retailers planning to reopen worry how to avoid red ink. I hear many common concerns: Is the final shutdown behind us? Will customers leave the safety of their homes confident they can shop or eat at a restaurant without danger? How can retailers compete against the internet now that customers have made that their primary shopping venue? How can shops and restaurants access cash to stay afloat? And finally, how do businesses calculate their breakpoint?
The answer is that retailers need to ready a game plan and prepare changes to business models to stay competitive.
To begin with, make the internet part of the business plan. Virtual shopping is not going away. But brick and mortar retailers can play that game too. Use Zoom calls with your best clients to provide a walkthrough of new merchandise in-store. I currently have a monthly virtual walkthrough with my two of my favorite retailers. It is relaxing after work to Zoom with a glass of wine and shop online with a REAL in-store Avatar.
Further, masks and sanitizer are here to stay—at least for the foreseeable future. Yes, we are all fatigued with cracked hands from peeling sanitizers and with ridiculous mask rash. But Californians are not Texans, so retailers must continue the diligence. Many cities and towns such as Truckee and Carmel are strictly enforcing outdoor protocols for shoppers, which may be taking things to far. But as silly as I feel masking up outdoors, I think we surely have to agree to keep the masks on indoors. I do tell clients that I don’t plan to walk around masked up when the weather turns hot, but indoor masking requirements will be enforced for at least eight more months. We can’t let our guard down now; we must get to the finish or perhaps face another closure.
Customers need to feel safe and comfortable in other ways too. I ask my clients how they make customers feel comfortable doing business with them. One thing that must be included is curbside delivery for all goods—not just food. Also, if clothing boutiques invite guests inside, they must have a fitting room open to avoid excessive returns. And they must provide a man chair to reduce grumbling while Sunday shopping. Lastly, retailers must think about hours and remain consistent. If hours change and consistency falls off, so will business.
Another concern for reopening retailers is determining breakpoint. Without knowing that exact number, businesses can’t turn profit. Business owners should be sure their landlord knows their OVERAGE rent breakpoint. I advise clients to get that number on a wall and look at it daily. Know all of your numbers! You cannot bury your head in the sand. As the saying goes, A goal without a plan is just a wish.
Furthermore, businesses mounting a COVID comeback must understand how to access financial support. I tell my clients they have to put in some work to get the money. CMA received two PPP loans for well over 200K, but it took weeks to pull the paperwork together. CMA is assisting clients with options for obtaining SBA, PPP, and LOC loans, because money gives a business confidence needed to be successful. Get a loan, make a plan, and let your money work for future successes.
The last major item I share with my clients is to make sure they are ready to market their reopening to build both awareness and demand. This means fresh inventory, an easy curbside pick-up program, virtual assistance, an easy return policy, creative dressing rooms with professional lighting, customer service and maybe a fun selfie station where owners can get a little press for their business. And don’t forget the halo light!
A lot more goes into reopening than flipping over the Open sign in the front window. Retailers must tend to their new image, and like it or not, retailers have to make the changes now before they are no longer open for business.