Retailer to Retailer guest column

Ah, January. The one month of the year when we can start out with all sorts of resolutions to make our lives, and our businesses, more productive.

However, if you're like me, looking at holiday sales for the fourth quarter of 2008, the only resolution I can think of would be to fling myself off of the nearest bridge. I don't know about you, but we had the worst holiday season in the history of our business.

Of course even Santa couldn't have predicted that the markets would crash in October, right before we put out all of the gorgeous merchandise that people would unfortunately NOT be spending what money they have left on.

And I can pretty much guarantee you that just because it's a new year, if our clients weren't spending during the one time of year when they absolutely had to, the first few months of the year are looking pretty dim for us.

So what is a retailer to do? Embrace the old adage “Less is More.”

When I think of the money that I sunk into holiday inventory that went unsold, I reach for the Pepto Bismol bottle that now lives on my desk. Unfortunately the federal bailout that is sprinkling those divine billions of dollars around isn't coming my way, so I have to figure out a way to keep my store viable without putting myself in debtors prison while doing it.

Inventory is what makes us or breaks us: Whether we choose what's hot, or what's not, when people aren't spending it's a moot point. It's a lose-lose situation when you become your own worst enemy, and it's impossible to keep up payroll and overhead when all of your cash is represented in unsold merchandise. Talk about a buzz kill!

This year, instead of feeling compelled to stock my store with an entire new array of merchandise now that my unsold holiday product is packed away for our annual Christmas in July sale, I am looking at my retail space in a whole new way.

I have decided to minimize the product on the floor and maximize my potential sales by showcasing our interior design products to create special-order sales opportunities. L&M Designs is laid out in such a way that there are several “rooms” as opposed to one large selling floor.

Currently our front area houses a large lighted display kiosk, as well as several tables and shelving for display. That's a heck of a lot of empty shelves to fill with “new” product.

Instead, I am planning to eliminate all of those display spaces and create “vignette” layouts that will not only give my clients a first-hand look at how we would design a room in their own homes, but also a “touch and feel” experience that is not represented in catalog shopping alone.

For example, I plan to create a “bedroom” in one area of my store. An upholstered headboard will have a swatch card including 10 other fabrics choices available. The mattress (borrowed from Mattress Discounters) will be dressed in gorgeous sheets, duvets and pillows, all available from a myriad of soft goods vendors we have cultivated over the years.

Two nightstands will hold the perfect lamps and accessories for our bedroom, and the walls will be papered in a perfect coordinating print. Let's not forget about artwork, window treatments and a rug -- all items that we regularly order for clients but are rarely seen in a complete room setting.

Suddenly instead of my catalogs languishing away, I have an entirely new way of selling and promoting products and services L&M Designs can provide to our clientele.

Think about it. Not only will using “vignette” merchandising give me the opportunity to showcase our design services, we have the ability to keep the same displays intact for a couple of months at a time, simply replacing items as they are sold instead of stockpiling merchandise that hinders our cash flow.

Common sense tells me that it's better to have slower sales based on special-order merchandise than slower sales when your shelves are full of inventory that's just not moving.

Additionally, our vendors are all thrilled to know that “their” products have been chosen for our displays, and in most cases have offered to give us discounts on our display items. These same vendors spend thousands of dollars creating beautiful catalogs of their product. Why not utilize their efforts and create special order opportunities for lighting, portable lamps, permanent botanicals and more?

Having a few items on-hand to give our clients an idea of the quality of a product they are ordering goes a long way toward customer confidence, and if we think smart on a smaller scale and partner more with our vendors, we are both bound to benefit. Plus if the vignettes are beautifully designed, no one is really going to notice your lack of “regular” merchandise. It's just a matter of using the space differently.

In today's economy we must do whatever it takes to keep ourselves afloat until the powers that be find a way to turn this downswing upside down. That includes being smart about our inventory decisions, being honest and up-front with our vendors and finding a way to work together toward mutual profitability, and never letting our clientele think anything is less than rosy when it comes to our businesses.

A new year is a chance for new growth. Your resolution should be to create better relationships with your customers and vendors, and when things finally turn around, those of us who still have our doors open will be stronger than ever.