News and Events
Six Easy Steps
Expert advice on the best investments a specialty store can make right now.
Apr 1, 2010 Specialty Insider Arthur Zackiewicz
As broader economic conditions stabilize – or at least try to – independent specialty retailers who have positive cash flow, long- and short-term debt that is in control, and some cash reserves, might want to consider investing in their business, say financial experts. This could include systems upgrades or refinancing, but the best bang for the buck right now is in commercial real estate, which is still at rock-bottom prices. Here’s a rundown:
1.) Advertising: When market conditions weaken, most retailers and the vendors that serve them pull back on advertising. Wrong. The best tactic when the economy slows is to bolster your ad dollars while letting your competitors pinch and save. Advertising in print, online and elsewhere can bolster your market position and maintain confidence as well as drive sales. You didn’t see Apple closing its marketing department during the Great Recession, did you?
2.) Relocating: Ivan L. Friedman, president and chief executive officer of RCS Real Estate Advisors, says relocating right now may make sense. “Co-tenancy is very important for driving the right kind of traffic to a retailer and, in turn, driving sales. If the retailer has a mall location, but the surrounding tenants aren’t helping to drive the right kind of traffic to the store, then relocating to a better place within the mall, near like-tenants would be a good move. The same goes for street and strip center locations. And, once again, retailers are finding that better locations are available at better prices.”