Retail Myth No. 1—You must have everything in stock, always.
We often feel that whatever our customers need, whatever the size, we should always have it in stock. It’s part of our customer-service mindset. During the pandemic, we just weren’t able to carry everything, largely due to supply-chain problems. Yet, for the most part, it didn’t hurt our sales.
Yes, once in a while, we had to order a shoe. Occasionally, we lost a sale altogether. But the lower inventory didn’t hurt the bulk of our sales. We realized that carrying those extra tens of thousands of dollars of inventory wasn’t worth it.
There was a silver lining, too: I thought the pandemic would make all of us late paying our vendors. For most of us, that didn’t happen—because we bought less. We bought in line with our sales. By tying up less cash in inventory, we had more money in the bank and were able to pay our vendors.
TAKEAWAY: Tighter inventory is one of the most important lessons of the pandemic, one I hope we never forget. We need to be vigilant about matching our inventory levels to our sales levels.
The key to having the correct inventory levels is identifying your top sellers (style, color, size). Then, always make sure you have enough inventory of those items. Other items are less important. Maybe they are part of a smaller school’s uniform, maybe they’re trending down. Think about carrying only one width or only full sizes for these items. You can always order the missing size, and you won’t have all that money sitting idle on your shelf.
Take a hard look at the breadth of items you carry. Do you really need 12 different models of ballet slippers? The research is clear: If we carry too much, we confuse the customer and they end up buying less.
Retail Myth No. 2—You need to always carry the latest thing.
Another retail myth that’s been busted is the idea that we always have to stock the latest hot item. During the pandemic, that “must-have” item was pushed to another season. And the year’s “hot” color? It was canceled and moved to the next year. So how must-have, how hot, were they really? The pandemic taught us to take all this trend talk with a pinch of salt.
In the past, I’ve had shelves full of the “latest,” “hottest” items just sitting there, gathering dust, and then getting donated to charity. We brought $1,500 worth of dance sneakers into my store, Brio Bodywear, when they were first introduced. They sat there for over a year and a half. Yes, eventually they sold like crazy. But I could have really used the cash while I was waiting for them to catch on.
TAKEAWAY: A better way to deal with new products is to bring in a few in the most popular sizes. Gauge the reaction, then jump on it when it takes off. Your bank account will thank you.
Retail Myth No. 3—You have to be open every day of the week.
We retailers always worry that we’ll lose sales if we aren’t open every day of the week. Then, pandemic-related staffing shortages forced many of us to reduce our hours. Our customers understood. We didn’t see a drop in sales, and, most importantly, having a day off has been good for owners’ sanity.
TAKEAWAY: Take a day off, even if it means closing the store one day a week. Sure, if you have a manager who can run the store while you’re off, then by all means stay open seven days a week. Just don’t let them call you on your day off. If you don’t have that coverage, I recommend that you keep the pandemic habit of closing for one day a week.
Don’t make it Sunday (unless it’s for religious reasons). The second-busiest day for sales is still Sunday—it gives you maximum sales in a very short time, and you don’t want to miss out on that. Since the reopening, my stores have been closed on Mondays, and our customers don’t mind. It has also turned Tuesday into our busiest day of the week!
Make the most of your closed day by doing…nothing. Don’t catch up on emails, work on orders, or do the bookkeeping. Want to do what’s best for your store? Then take this day to rest—completely, with no interruptions. By making it a “me” day, you’ll come back to the store recharged and be more efficient for the rest of the week.
The Bottom Line
While the pandemic may now feel like a distant memory, it opened our eyes and busted some retail myths. Let’s not forget those lessons. Let’s tighten up our inventory, bring new products in cautiously, and go to a six-day week. We’ll be healthier, wealthier, and happier retailers as a result.
Gilbert Russell is a seasoned dancewear retailer who helps independent stores thrive through his book “Retail AI Unleashed,” coaching programs, speaking engagements, and weekly newsletter.