Retail Strategy

Small to mid-sized retailers are under increasing pressure to adapt to technology. Reduced friction in the markets translates into pressure on margins. Shoppers expect full service retailers to match the best prices on the Internet. Typical retail markups of 100% are increasingly hard to sustain. As sales dry up, pressure on overheads mounts. Inventory must be reduced. Relationships with manufacturers and distributors must change. Forward looking players are changing the nature of these strategic relationships and small retailers must be able to adapt.

Smaller lot sizes, more frequent orders, continuous inventory counting, drop shipment, custom manufacture can all help to preserve profits in the face of decreasing margins.