News & Information on Wholesale Products, Off Price Apparel, and Merchandise

Does $250 Billion Sound Good?

ruebenmarley — Wed, 10 Mar 2010 04:16:42 +0000

Things may not be as good as they were a short while ago, but it doesn’t mean they’re so bad, either. China has taken a definitive hit as the economic crisis tore through the economies of many countries that were placing heavy orders from the manufacturing powerhouse, but they march on now with continued reported growth in GDP. The US economy is also showing signs of an upward swing on the pendulum effect as well, as reports come in indicating upward momentum in the area of retail sales for the next few years. How much are we expecting to see come from all of this?

It’s not the boom time of the early half of last decade, but growth is steadily manifesting itself through a directive to push the numbers into a positive course for the next few years, as we all notice that recovery is ever-present on the minds of everyone who has a stake in the wholesale and retail industries.

Forrester Research has released numbers that show a five-year forecast in the works, with the good news being a prediction of e-commerce sales in the US growing at a 10% compound annual growth rate through 2014. The best news: this report also forecasts online retail sales in the US being nearly $250 billion, up from $155 billion in 2009.

It gets better for those who make their profits from online sales: all retail sales will be up by 6% by the time we reach the 2014 mark, and in 2009 Internet users were represented by 154 million people who bought something, bringing the figure of online shoppers to well over half of the total online community. Computers, Apparel, and Consumer Electronics were the three big winners in the category of products that represented more than 44% of sales, and the overall bulk of offline sales that resulted in 2009 were directly influenced by research done online, handing over more proof that having a great site is paramount to a seller’s performance these days.

Now, before everyone takes a moment to revel in their online successes, there is a growing concern amongst the Internet sales-savvy that signals the need to improve the user experience in the real world, creating a better experience for shoppers who actually do take a drive out to the store to see these goods for themselves. Studies show that only 61% of the buyers who make the switch from online purchases are really satisfied with the process, while 82% of the ones who buy online are happy with their choice. This is not a figure that should inspire anyone to rest on their laurels, however, and for those of you in the business who have physical sites that require face-to-face customer interaction, it could be the opportunity you’ve been waiting for to take a piece of the action away from your competition by improving the shopping experience in your store!

Taking Sides in 2010?

ruebenmarley — Mon, 08 Mar 2010 07:38:07 +0000

Without a doubt, these are exciting times indeed. While some of the headlines may elicit groans from the ones who have been enjoying a steadily profitable time a few years ago during China’s booming “economic miracle” years… and feeling the recession’s pinch in more recent days, it should be noted that all the turmoil in the wholesale and manufacturing industries have produced some surprising new opportunities for those who adapt to the changes. Staying informed is crusial with all of this change, and the latest torrent of news to hit the wholesale and retail community should be part of the strategy to make 2010 a winning year, in spite of unexpected obstacles cropping up at every turn.

The WTO has had more than its share of headaches these days, with every event they hold resulting in a messy response from protestors and rioters in host cities. Major talks are being held at this time over the US Trade Representative’s office and the WTO and industry groups over China’s Internet policies, which have been linked to protectionist acts, allegations of online espionage, and trade sanctions, to name a few of the top complaints. Google, the online search giant, has been pushing the Internet freedom angle harder than ever, in a case that undeniably ties in to salvaging weakening trade relationships and user activity on the global scene. While the company still hasn’t pulled out of the China market – as it has loudly threatened to do – Google remains firm in their public stance when it comes to censorship of its search results, claiming that the filtering efforts of the CCP are more than just acts of keeping the peace, but rather acts of stifling growth for foreign companies in China’s rich user landscape of over one billion potential Internet users.

Free trade is a always on the lips of those who depend upon making transactions with foreign partners, and the Internet censorship issues don’t just end where Google begins. Lately there has been quite a bit of concern over the issue of online commerce, and how China’s search results filtering and overall policing of the Chinese Internet is not somehow a ploy to give favorable advantages to domestic enterprises, rather than creating a level playing field that everyone can participate in. Should customers be the ones to ultimately decide what is best, or is it within the CCP’s right to simply black-out the ones who threaten to gain too much of the online shopper’s confidence? Google’s plans to roll out a new service that promises speeds of up to 1-gigabit downloads and uploads is making them nervous. If this catches on, there will be a new and powerful market force that offers huge content to customers who like having choices.

Meanwhile, China has responded to the recent news of trade barriers and protectionism by offering an official statement from its State-run sources, telling the world that “China has been strictly following the rules of the World Trade Organization (WTO) in foreign trade since it became a member of the international organization.” Li Zhaoxing, spokesman of the 3rd session of the 11th National People’s Congress, was quite vocal about the facts surrounding his government’s involvement in trade negotiations and adherence to WTO policies. Is it a case of stating the obvious until it becomes truth, or is there something to be said for the rise of China, India, and Brazil as new influential factors, who claim that countries like the USA have been using protectionist tactics for the past decade?

It doesn’t look like China will lend its support on the topic of Iran any time soon. While Foreign Minister Yang Jiechi sounded a bit defiant in a briefing on Sunday, telling reporters that the US is to blame for putting strain on an already strained relationship by selling arms to Taiwan, the representatives from the American side were more optimistic. “The responsibility for the difficulties in China-U.S. relations does not lie with China,” Mr. Yang said.

Star power makes itself known to the members of China’s government, as Bo Xilai, the top contender for a high-level position in 2012’s political turnover for the CCP, has become something of a national celebrity. A video circulating on the Internet pays tribute to the Municipal leader in Chongqing, and details his modern thinking and fearless desire for justice in a system that is rife with corruption and internal flaws.

A little heads-up to those who have been waiting for the other shoe to drop on the yuan’s peg to the US dollar, as Chinese central bank Governor Zhou Xiaochuan said China will eventually move away from its current policies, in due time. While that doesn’t mean the peg will be dropped tomorrow, for those who have some experience working with the Chinese it’s a sign that something could happen pretty soon. Chinese officials don’t bother to make comments about anything until it’s close to the 11th hour, and this is news that should be factored in with considerable thought, as a big market shift could occur in a very small amount of time, after the yuan is given new status as global currency – and especially after we see which countries are willing to bite, once that lure’s dropped in the water.

Housing Falls, Home Décor Takes the Lead

ruebenmarley — Wed, 03 Mar 2010 06:10:28 +0000

Housing continues its plunge into some deep, dark, and murky waters. In China, there is nonstop talk on virtually every nook and cranny of stifled and government-censored cyberspace about the lack of affordable housing, the inequities of social classes with regard to house-buying, and the pressures of an already fragile leadership continuing to provide stability for the country.

Of course, the news doesn’t stop where hotly-disputed geographical boundaries begin. There is a world-wide housing problem that ranges from the distressed to the dire, and it’s showing its effects very clearly through wholesale channels in the form of home décor goods picking up the pace, as people are becoming more aware of their immediate surroundings, and the fact that they may have to focus on making it more comfortable… rather than pulling up the tent spikes, and easily moving into another one.

Consumers are getting a host of applicable solutions from the usual media outlets in the wholesale and retail business, including some additional input from smaller, more personalized stories on the blogosphere that lend ideas and concepts to wholesalers and retailers who need to tap into a fresh aspect of the home décor market.

Consumer spending certainly reflects enthusiasm in any segment of the industry, and home décor is no exception. Kohl’s Corp. posted a 28% jump in profit for its fourth quarter, with home décor being a major part of its offerings, besides apparel and accessories. Another point to consider is the increasing trend towards consumers buying high-priced goods, and expecting a higher return in terms of vale than before. While buyers are not purely motivated by name-brand, and the trend towards name-brand loyalty has been slipping downward, people are looking at luxury in a different way by not necessarily downgrading to suit restricted budgets, but simply taking into consideration all the deals that exist.

Post-recessionary concepts are emerging already, and there are a number of companies that look further down the road, in order to solidify and leverage their positions with buyers by making themselves well-recognized during economic hardship as suppliers that offer options, flexibility, value, and prices that are in line with a value-driven buyer.

Nothing seems to be far from reach in this new culture of value buying, either. Arts and antiques have seen a remarkable increase in sales, despite the fact that statistics show declines in individual earnings for most consumers. The pinch is putting a freeze on price hikes for merchandise that isn’t moving, and that has historically been the time when collectors have been able to make the most of their money.

The bottom line: homeowners are choosing to renovate and remodel instead of just moving to another home, and that has boosted sales in the area of home décor, putting an emphasis on options for both the consumer, and the ones doing the selling. Even outdoor and lawn-specific crafts are taking a big stride, all in the name of making sure there’s no place like home, especially when the yellow brick road is closed for construction.

ASD March Show is Almost Here!

ruebenmarley — Sat, 20 Feb 2010 13:30:25 +0000

The clock is ticking, and the days are beginning to fall off the calendar, now that we’re approaching the big show dates for the March 2010 ASD Las Vegas Exhibition. This event-studded show actually starts on the last day of February, so there’s still plenty of chance to get in line early when the doors swing open, and be amongst the first to see what kinds of special deals will be on display.

See the whole thing by clicking the image above!

Some product categories to look out for are the following listed below, with each being featured in its own space on the showroom floor. It doesn’t get much easier than this when visitors to the exhibition want to find the most relevant and effective channels for communication between these great sellers!

VALUE & VARIETY – Find everything in the General Merchandise, Camping & Outdoor/Sporting Goods, Military / Tactical / Personal Security, Electronics & Accessories, Apparel / Hosiery / Footwear, Tools & Hardware / Lawn & Garden , Food / Candy / Snacks, and House-wares / Home Textiles by visiting this floor, when you come to see the vast array of goods with your own eyes.

GIFT & TOY - Looking for incredibly priced, margin building gift, toy & novelty merchandise that allows you to wow your customers and make a profit? Then, start at the Lower Level of the Sands Expo Center because ASD Gift & Toy has everything the savvy gift retailer needs for success! Look for Candles / Aromatherapy, Holiday / Special Occasion, Collectibles, Decorative Accessories, Crafts, Religious, Dolls / Figurines, Gift Shop Souvenirs, Novelties, Seasonal, Giftwrap / Giftbags, and Stationery / Cards when you drop in for a visit.

JEWELRY – Here’s a category that is set to bring the best, brightest, and most brilliant to dealers who need to find sources for jewelry that captures the attention of their customers. With a selection of jewelry that suits any dealer’s needs, you can expect to see products like Custom Pieces, Diamonds, Engagement Rings, Estate Jewelry, Gold, Loose Gemstones, Luxury Timepieces, and Wedding Bands in the mix. Also, there will be a variety of Fashion Jewelry solutions as well, such as Accessory Sets, Beads, Body Jewelry, Fashion Timepieces, Sterling Silver, and Youth-Oriented Jewelry.

STYLE & BEAUTY – This show is located in the Upper Level of the Sands Expo Center, and features the latest in affordable fashion accessories, travel accessories, and health + beauty aids. With an assortment of goods displayed in a logical and efficient order for those who value their time spent, the three core floor categories - Fashion & Accessories, Health & Beauty Aids, and Travel Accessories – brings approximately 200,000 square feet of exhibit space and offers the widest selection of merchandise than any other trade show in its class in the nation.

Don’t forget to visit the ASD website for detailed information, video coverage, and other valuable information about this event. Show hours are 9:00 a.m. – 6:00 p.m. from Sunday, February 28 until Tuesday, March 2. Hours will be slightly different on Wednesday, March 3 with hours from 9:00 a.m. – 4:00 p.m. until the show is over for the year. Don’t miss this chance to see it for yourself as you continue to join the thousands of others in the business who happen to know how to Find it. Source it. Profit!

Chinese New Year in Modern Times

ruebenmarley — Tue, 09 Feb 2010 03:48:48 +0000

To focus on the Chinese New Year (or Spring Festival, as it’s commonly referred to) we start with a little bit of history. The celebration is centuries old, and holds a lot of cultural truisms that give outsiders a very solid grasp of Chinese traditions and values within the context of a family-oriented gathering during the Lunar new year. As with Christmas in the west, the ideal version of this holiday is spent with family, as the new year is punctuated by large gatherings around the dinner table, and time off from work to reflect upon the past, present, and future. The holiday also presents some clashes within its own culture, as ancient ideals and modern realities seem to form a rather inharmonious mixture at times.

They’re cute… but don’t let ‘em fool you!

Traditionally, the new year festivities cover a 15-day period, and there are many symbolic acts associated with these days. In recent times, the traditions have given way to a more modern perception of life, with many of the traditional activities falling to the wayside as time becomes more precious to young professionals who seek opportunities to keep the momentum of their earnings from suffering a drop-off. Chinese senior citizens are much more active in the participation of the festivities, and it’s common to see grandchildren and other young people left in their care during this time. Chinese New Year is observed as a public holiday in China, and a statutory holiday is added on the following work day when the New Year falls on a weekend. However, the reality for many modern urban professional Chinese is that there are no days off from work, and their companies will often coerce them to accept future days off in exchange for the overtime. While many still think of China as a factory worker’s nightmare, the truth is that it’s becoming less of an ideal place for the office workers who find themselves in a stranglehold, with unemployment rates up, fierce competition the norm, and stability for coveted career paths in constant peril.

Another point to consider about the new year for the many wholesalers are retailers who work with China is the dreaded “blackout period” during the holidays. Those who have been doing business with China for a while now have learned; but many new opportunity-seekers are unaware of the dangers that may lie in wait for those who don’t anticipate and prepare for the season. With migrant workers from the countryside coming to the inner cities by the millions every year, there is a tremendous amount of manpower lost during the festival, due to the workforce simply packing up and leaving town for the holidays. It’s not uncommon for people to literally quit their jobs during this time, so that a new year – and a new job – become part of the holiday tradition. In addition, it’s a time for some factory owners and stakeholders in their respective ventures to pull out and roll up their tents too – often with disastrous consequences to their employees – as they decide to ring in the new year by taking the company’s profits elsewhere. The interruptions in service, production, and distribution can be akin to a major computer crash for firms and companies outside China who are unaware of the fragility of the system at this time of year. While most pull through without much aggravation, some falter and fail in the wake of inexplicable stoppages that seem to lack any link to a reasonable rationale whatsoever. The ones who learn from experience continue to thrive.

Due diligence is always key when doing business with China. Their government has proven that a my way or the highway approach is the most opted-for, especially when the chips are down. For those who don’t allow themselves to accept certain realities of life with China as your trade partner, it could be a painful surprise. For those who take in the knowledge and experience of others who have been there, it’s just another day in the neighborhood… and perhaps even a chance to adopt a little bit of the Chinese New Year for themselves, as a way to enjoy a little down-time while the Dragon is busy with jiao zi, bai jiu, and fireworks.

Specialty Retailers Are On a SPREE!

ruebenmarley — Wed, 03 Feb 2010 01:05:03 +0000

There’s a lot of money on the move. Most of that money seems to have moved pretty far away, too… as we deal with a ripple-effect of consumer confidence issues now that the holidays are past us, and the reality of a brand new year ahead. Some of the recent reports are lamenting poor results in the retail sector, while others are looking forward in a much more optimistic manner, citing figures that predicted the considerable deceleration of the economy in 2009 being followed by a healthy recovery towards 2013. With the global specialty retail industry generating total revenues exceeding $350 billion, over 400,000 specialty retail stores operating in the USA, and a consumer population that isn’t going away any time soon, there’s still a very large piece of retail market share waiting for those who wish to maximize their earnings by participating in events that cater to the wholesalers, retailers, and dealers who make up the specialty retail industry!

One such event is the

Specialty Retail Entrepreneur Expo & Conference, also known as SPREE, which will be held at the Mandalay Bay Resort & Casino in Las Vegas from April 13-15, 2010. This event-studded show promises to be the single most important for anyone who is even considering attending a specialty retail industry related trade show this year. For those who don’t even know if any shows are in their pipeline, SPREE has an added incentive: FREE admission for registered attendees!

Some highlights of SPREE 2010 can be found on their site, but here are a few of the most impressive ones, to give you an idea of what awaits those who make the trip to Las Vegas this year:

The specialty retail industry is at least a $12 billion retail segment!
SPREE is the largest event for the cart & kiosk industry!
SPREE 2010 registrations are up over 50% from last year at this time. Attendees are a mixture of retailers, store owners, shopping center management, leasing personnel, wholesalers, airport retailers and service providers!
SPREE 2010 is free to attend - free entrance to the exhibit hall, free seminar programs, free networking and social events!
There is a great interest in this industry as the economy is starting to shift. Low start up costs, high profit margins. There are also opportunities to negotiate lower rents with shopping centers and a new entrepreneurial spirit of people looking to start their own businesses!

With most specialty retail stores in the USA being comprised of smaller independent shops that generate less than one million per year, it’s not hard to imagine why making your move towards this industry could be a lucrative decision for you. In spite of all the current woes about an economy that is on the downswing, it’s been proven over the decades that starting a venture while the market is down can result in becoming an industry trend-setter and sales leader after a recovery begins to gain momentum.

On another note, there’s more to the SPREE 2010 show than meets the eye, as event coordinators have put together an outstanding mix of informative and entertaining discussion panels an conferences that are sure to stimulate your thoughts, and help you form a better strategy for your own retail sales goals. Some examples of the seminar topics are:

Creative Leasing Strategies
Demonstration Concepts
Getting the Most out of Email Marketing
Inside Secrets of Specialty Retail
Maximizing the Power of Social Marketing
New Ideas for Prospecting
Retail 101 – The Nuts and Bolts
Retail 102 – Choosing Your Products
Retail 103 – Running Your Business
SLM Roundtable
Staffing for Success
Sustainable Growth Strategies
Working as One: Relationships Between
Permanent & Specialty Leasing

If you’re not sure whether or not this kind of event is right for you, be sure to visit the interactive form on the SPREE 2010 site for some helpful guidelines that will assist in making the choice. Also be sure to check out the SPREE website to find out about updated seminar information, as well as a resource to review an updated list of exhibitors and video testimonial on the home page. For general information on the specialty retail industry, you can visit www.specialtyretail.com for a look at the online magazine that produces the SPREE Specialty Retail Report.

What are you waiting for? Start heading towards a fun and free event that is sure to provide a vast collection of collective knowledge, experience, and ideas from some of the leading players in the specialty retail industry. Sign up for SPREE 2010 today, and we’ll see you there!

Six Months of Reality in Shangers

ruebenmarley — Tue, 26 Jan 2010 03:43:06 +0000

This year, Shanghai will be the focal point of the trade show universe from May 01 to October 31… and while the dust settles around China’s undisputed top-tier international city, with preparations being finalized for the massive event that is reportedly expecting to rack up about 70 million visitors, the rest of the world is also making the necessary moves to gear-up for the trip to Shangers (as it’s frequently referred to by resident expats) who have been watching the construction cranes and enduring the sounds of constant hammering for the past year and a half.

With a history that makes the worst examples of the New York / Chicago gangland era look like a children’s bedtime story, Shanghai has been through some intense changes. From a growth period spurred by foreign trade during the Qing Dynasty… to a seemingly limitless time of Western assimilation during the early 20th century… to a brutal changeover under Communist rule during the 1950’s… the city has earned a reputation for being a place of tremendous gains, as well as great losses.

Now with less than 100 days to go, the grand opening ceremony for the Expo draws nearer. What do attendees expect to see once inside the event, and what can you expect to hear about it from overseas? There will be extreme coverage from both the Chinese State-run media, and the foreign press as well, but will information be passed through channels designed to filter and contain commentary that is deemed unacceptable by the local government? It remains to be seen, and if the current war of the words between Google and the CCP is any indication of what’s to come, it may be difficult to get a real feel for what goes on behind closed doors during the six months that attendees, guests, and everyone from manufacturers, wholesalers, retailers, and distributors will be working the floor.

Let’s not forget that twitter and facebook are still blocked in China. Let’s also remember that YouTube and a variety of other video-hosting sites are closed as well, under the fearsome cloak of darkness known as the GFW (Great Fire Wall) of China enshrouds Internet users within. For the visiting foreigner or local citizen, it’s a reality that must be faced when dealing with China, and it will most likely not be going away any time soon. The recent turmoil between Hillary Clinton and the members of China’s State Propaganda Department will surely increase the friction as well. It’s also worth pointing out that while the international media focuses on the censorship of top-ranking micro blogging sites and social networks, there are thousands of online services that experience the occasional bump in the road, usually resulting in nothing more informative than the dreaded “404:file not found” error.

The best medicine is prevention, in this case. With so many options available to the user for data storage and transmission through cloud computing and perhaps even some GPRS options, it’s a good idea to begin investigating those possibilities now, while you are still inside the USA, and able to access information freely. Once inside the PRC, it will be a whole different ball game, and it’s something that most people can’t really imagine until they’ve experienced it for themselves. As one blogger stated on his site, after moving to China and discovering the frequent disconnections he suffered during a normal work day, his last post on the blog ended with an emphatic statement “… imagine you are trying to surf the web, and somebody randomly pulls the plug out as you perform your searches. That’s what it’s like. Nobody beating down the door of your flat, no secret police rushing in to take you away. Just a constant and maddening reminder that you are not alone out there, although you certainly are made to feel as though you are.”

More coverage of the Shanghai Expo to come, as it develops. In many ways this event will very likely shape the future of trade between China and the rest of the world, so watch for more news here on TopTenWholesale.com!

China’s Bubbling Economy vs the Boiling Point

ruebenmarley — Fri, 22 Jan 2010 01:31:58 +0000

It seems there isn’t a major publication on Earth that isn’t currently running headline stories about China, and with good reason; the shifting economic balance towards the east has taken many people by surprise, while those in the know have been trying to tell everyone for some time now. For the history buffs out there, it’s worth noting that China is currently exhibiting many of the same characteristics the USA had a long time ago, just before it took its world superpower status from the UK during a momentous period between 1920 and 1930. The American economy was boosted from upstart status to superpower for a good reason, too: the USA was the world’s largest exporter of goods and the world’s largest creditor nation. Interestingly enough, history truly does repeat itself - as we look towards China today - which exports the most goods and is the world’s largest creditor nation with over USD2 trillion in foreign currency reserves. Even the most short-sighted amongst us can see the writing on the wall, as China’s economy presses ever-closer to overtaking Japan’s as the world’s second-largest economy… and nearer still to challenging the USA for the top position.

The recent announcement that China’s GDP grew 10.7% last quarter over a year ago should get some attention, as it represents the fastest pace since 2007. In addition, speculators are predicting that China’s central bank will soon be raising interest rates in order to tighten up runaway lending within the country. China’s central bank has already shown some preparation by raising reserve requirements, and local authorities have already ordered the largest banks to slow the process of lending for the rest of this month, beginning what many analysts are calling “only the beginning” of new reforms.

Contrary to some murmuring about a full-scale collapse of the Chinese economy, it’s more likely that over the next decade certain pockets may continue to rapidly develop mini-bubbles, such as the real estate markets in and around Hong Kong, Beijing, and Shanghai. However, even if house prices in certain major Chinese cities were to substantially drop, it is important to remember that China’s economy has been built on a foundation of manufacturing, export, and savings. This will keep things from capsizing, and the consumer population of China will continue to grow at an astounding rate.

For those in the wholesale business, this should be raising their level of awareness to an all-time high. Some experts predict that China is in danger of continuing to produce huge surpluses of goods that it will be unable to sell, which already has the liquidators and volume discount buyers making their inquiries on a daily basis. China’s population of 1.3 billion people might surprise us all, as they show the world that they are capable of purchasing their own goods, even if the Chinese government abandons their currency peg to the US dollar and allows the yuan to appreciate. For those who haven’t been to China, the demand for foreign goods is huge, and unlikely to diminish quickly as consumers gain the buying power to acquire these goods, and turn consumer economies like the USA back towards being producers again, even if it’s on a much smaller scale than before. It stands to reason that the first ones to enter this market will have a distinct advantage over the rest.

General Merchandise: Off Shelves, and Online?

ruebenmarley — Tue, 19 Jan 2010 02:13:53 +0000

We made it past the last quarter of 2009, and now that the dust has settled, we’re staring straight down an open runway as this new year brings a first quarter without a major holiday sales drive, and an already vulnerable consumer base that has been plagued with a prolonged double-digit unemployment rate that threatens to make the retail industry a dangerous climate indeed.

A collective groan must have been uttered last week, as the Commerce Department released its report on December retail sales. Wall Street was desperately banking on an increase of 0.5% in sales for the holiday sales month, but US government agencies reported a disappointing negative 0.3% result. While analysts and industry executives were holding out for something better, the good news never came.

Some reasons for these uninspiring figures seem a bit contradictory at first glance. Retail inventories were reportedly put on a diet in December, which made things confusing for the ones doing the forecasting, but the general merchandise sector reported surprisingly strong sales volumes for the season. Where’s the merchandise being sold, if it wasn’t being ordered by retailers? In addition to the confusing inventory figures, there are many experts pointing out that the information is skewed by some heavy discounting that took place by retailers, electronics suppliers, and auto companies at the end of the year, which contribute to the surprisingly low numbers in their final inventories.

Some retailers are choosing to talk about the weather, and blaming poor sales performance on the snow. While this may hold some merit in light of the fact that a fierce winter did actually paralyze parts of the country, there are many who are calling for reforms in the retail industry’s reporting methods, since the upcoming spring season will bring fair skies… and perhaps stormier sales floor activity, when there’s no outside factors to point to as the cash registers simply stop ringing.

In spite of the overall negativity of the future outlook for the retail industry, the news is not all dismal. Online sales may come to the rescue, and those who are preparing for the new conditions that consumers will be laying down for retailers to take note of will be making note of the fact that a decline in employment and an erosion of disposable income doesn’t man that people stop buying… but it does mean that their behavior will change when they are ready to make a purchase. Where some consumers might have taken a quick drive to their preferred retailer, the relative ease and convenience of making the same purchase online may be the deal-breaker, as decisions are made at the virtual checkout line on their monitors.

There are other results from the fallout, after the economic dive of 2008 forced retailers to come up with solutions. Walgreen, the top US drugstore chain, made a decision to sell fewer holiday-themed items after watching consumers slow down on discretionary purchases for many months before the holiday rush. The company’s CEO Greg Wasson stated that “ Walgreen spent 28 percent less on seasonal items for comparable stores.” In addition, outbreaks of flu were lower than a year ago, which even affected sales of items such as over-the-counter medications and tissues, which comprise a large portion of winter sales for drugstores during the usual cold and flu seasons.

Perhaps the best news is that while retail sales in many areas dropped, there were some winners amongst those who slipped. Furniture sales and products in home goods stores got a small boost in December. Sporting goods rose about 1.5%, as did book and music stores. Sales at virtual retailers, such as online and catalog vendors, rose 1.4 percent. This gives hope to those who are working to build their online presence, especially as the retail industry’s pain is being felt… and signs of spring sales promotions are already appearing on many shelves.

Wholesale Retail Returns: Risk and Reward

ruebenmarley — Thu, 14 Jan 2010 02:02:36 +0000

Did you get everything you wanted from Santa this year? Maybe one or two items didn’t quite make the cut, and now you want to take them back to their place of origin for a return, exchange, or in-store credit. For consumers, this is the usual scenario year after year, and while it’s not an unexpected phenomenon, it does come with a seemingly endless new variation every time. There has also not been an economy like the one we find ourselves facing today, in a long time. While the concept of great customer service should be firmly rooted within the minds of all retailers and wholesalers who take exceptional care of their customers… this is a time to be a little more careful about how these returns are handled, and how finding outlets for them can be a reward – or a risk.

Good customer service means handling the return of unwanted used/opened merchandise with some degree of grace and poise, as you try to keep your customers from going elsewhere because of a bad return policy that leaves them with an equally-bad taste in their mouths. Competition is fierce, and there is little room for error in the way these returns are handled. While it sounds like returns are a necessary evil in the world of retail, they are also a great source of feedback and valuable market research from your customers, which may help you to streamline your next order of goods to stock the shelves with. In addition, there’s nothing better than building a sale with a customer who has just been quickly and courteously given a return on merchandise… which helps add sales to this month by suggesting and offering new goods, once you’ve got the returning customers in your store. Online sale can work this strategy into the program as well, with instant offers and time-out rebates that are designed to circumvent the losses of exchanges and refunds after tailoring a solution based upon a customer’s past buying history and pattern of browsing your site. Every time your customers visit, this information is saved somewhere, and the most successful sellers are known to use it.

Wholesalers looking to capitalize on the flood of returned inventory can look to the sellers who don’t need to destroy their product, but rather send it back to the manufacturer or liquidate the merchandise. Those retailers and vendors are eager to offload their merchandise, and this could be a great source of discounted goods for the ones who move quickly and forge good relationships with their sources early. It should be noted that successful buyers looking for these deals aren’t waiting for a phone call from liquidators… but rather they are building the needed relationships ahead of time with them, so they can identify - and purchase - the best selection of goods before competing buyers get their hands on them. The window of opportunity will be small, as the holiday season comes and goes in a whirlwind fashion. Make sure you are one of the first to reach out and make your bid on a truckload of merchandise, before it’s swept up by another buyer. Diversification is key, as you will increase the likelihood of getting a great deal from a seller who has exactly what you’re looking for.

Finally, there is the reality of return fraud as a major point to consider when tying up retail return buys, and pulling merchandise from liquidators to supply your own business. It’s not a new situation, as fraudsters and crooks have been doing this for a long time… but the level of sophistication and the sheer volume of return fraud may be reaching some new and impressive heights in the coming months, due to the economic hardships we are facing these days. Criminals are getting wiser to the ways of credit card fraud as well, and some have even been boldly going where no one should go as delivery trucks - and even freight vehicles – have been hijacked or robbed as thieves look for more high-end, high-dollar merchandise to supply themselves with their own form of inventory to liquidate. There’s big money in returning to a retailer with a $2,000 HDTV set, especially if you’ve got a bunch of them stashed somewhere. As retailers deal with this problem, some of the less-scrupulous out there will undoubtedly attempt to accept returns that should otherwise arouse suspicion… in an attempt to satisfy corporate sales goals and keep loss forecasts within their parameters. In short, it’s becoming a buyer beware situation for everyone, including the wholesaler, who might pick up a truckload of hot goods without knowing it.