Blog: Leonie BarrieUpturns after a downturn

Leonie Barrie | 11 September 2008

Downturns are tough on retailers, as any glance at the monthly sales round-ups published on just-style recently show. But what happens when the general economy starts to improve?

Historical evidence suggests that retailers are often slow to bounce back, with shoes and accessories and specialty apparel among the hardest hit, according to the latest quarterly bulletin from McKinsey research.

Its paper ‘How retailers can make the best of a slowdown,’ argues that firms need to move quickly to minimise deterioration in their performance.

But how do you choose from the wide variety of potential, short-term priorities? Should you cut costs by shutting stores or restructuring support functions, or focus on increasing revenue by refreshing stores or overhauling promotions?

The answer apparently lies in a tough self-assessment, combined with a hard-nosed scan of a retailer’s external environment. And for retailers operating with decent financial strength in reasonably attractive markets, investing for future growth, rather than hunkering down to minimise losses, often yields the best long-term results.

You’ll have to sign up to take a look at the analysis, but it only takes a few seconds and could well be worth it.

How retailers can make the best of a slowdown


HOT ISSUE

Wall Street woes

Last week, an unprecedented series of events in the US financial sector shook global markets, leaving retailers and brands anxious that already tough trading conditions could worsen still. Joe Ayling ...

BLOG

A new re:source from just-style

Some of just-style’s more eagle-eyed readers might have noticed a small change to the menu bar on the homepage: the addition of the word re:source. Yes it might be a small change – but it marks the co...

BLOG

Trump's trade ramifications continue to unravel

Over the past week just-style has continued to try to unravel the potential ramifications of Donald Trump’s election as the next president of the United States....

BLOG

What's in store following Trump's election?

One event dominated the international airwaves last week, and on just-style too we took a closer look at the surprise election of Donald Trump as the 45th president of the United States....

just-style homepage



Forgot your password?