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Encinitas, CA--Retailers have been waiting and planning for this infamous fourth quarter since last February.   Merchandise has been bought and balanced, staff has been and continues to be trained, advertising has been placed and, “Here we go!”

With this in mind, we at Vantage Group are offering up key strategies on Recession Proofing Your Business beginning with November and December. The second part will come in January.

Our industry has grown remarkedly during the last several years.  Regardless of a worldwide pandemic, jewelry sales soared. No one could have predicted such a windfall. Throughout 2022, most in the industry have kept pace with last year’s numbers, but as the economy slows, we would be remiss not to plan for a slowing of jewelry sales too. It would be negligent not to embrace economic common sense during this time.

This November/December retailers should take preventative measures by focusing on these three items:

1. Slow your buying. You probably have all the inventory you need to yield a strong Christmas season. Look at the numbers. How much inventory do you want to end December with? Back into that inventory number. Driving down inventory over the next two months will posture your cash flow to endure a potential downturn in sales in the beginning of 2023. There is ample opportunity to replenish in a precise calculated way in January. (More on this topic in the January article).
2. Increase attention to your staff’s selling skills. Emphasize the importance of selling what you have in the case instead of placing special orders. This will help bring down overall inventory rather than continuing to rebuild as you go through the season.
3. Price point your merchandise. At least six items per/case of varied items should clearly show pricing. In a price sensitive economy, customers want to look in the case and find their comfort zone. This does not preclude your associates from upselling and leading the transaction. It does make a more comfortable entry into the presentation and helps your associates more quickly and comfortably identify the “right” purchase.

These three key directives, if exercised now through the end of the year will position you with a stronger more secure footing going into the new year. Unfortunately, we are all seeing an economy where, groceries and gasoline prices continue to rise, interest rates are escalating and ultimately debt is accruing. Jewelry buyers have not pumped the brakes yet and we are optimistic about this holiday season. However, the prudent business approach is to take note of the environment we are in and Recession Proof Your Business.

Lori Askew of Vantage Group serves the independent jewelry retailer by closely partnering and providing strategic planning. After more than 25 years, She and her partner, Dan Askew, continue to bring their broad base of expertise to businesses. Vantage Group focuses on the importance of all aspects of your organization working together to gain growth and profitability. www.VantageGroupinfo.com