2013 Tough Year for Retailers ?

meinteel

I agree that retailers are already feeling the pinch. For the last 2 years, sales drop after CNY. March-Oct tends to be kind of quiet with some "injections" here and there. In november, it would definitely peak again. Its already December but my parent's outlet and several other retailers are complaining about the lack of buying power. Tons of customers come in to "look see try" but wouldnt buy.

Foreign labour is a huge problem too. Most foreign labour are quite willing to work on weekends, but its harder to expect Singaporeans to do likewise especially when your retail assistances in their early 20s. =( According to Elim Chew, founder of 77th Street, manpower issues is one of the main consideration for closing 6 out of her 14 outlets.

That brings me to survival mode. I am quite sure closing so many outlets won't be solely manpower issues. It could be that the bad economy is affecting her sales. She probably closes a few outlets and reduce her overheads. Use the cashflow to focus on better performing outlets. I heard that she is starting a new label of men's wear as well.

For smaller retailers, we don't really have much to down-size and cut costs but its really about surviving. So long you break-even, I don't see a point in closing down the business. You instantly lose the value of the reputation and customer base built up. There is always this hope that if we survive the year, the next would be better. Along the way, you may find opportunities within the business itself too. Having "survived" this year, my parents' business was able to expand its target customers which we initially neglected as we think the area wasnt suitable. Turns out that sales was slightly better then we expected. Furthermore, that "expansion" gave rise to wholesaling opportunities.

As you walk towards the horizon, you will always see another. I believe in that, would you?