The future is only as bleak as you see it

Huw Thomas, managing director of PMC looks at the future for retail and considers that it all comes down to making good decisions and the strategic understanding of your business. "Stop being cautious for the sake of being cautious and develop a strategy that although moderated by caution, keeps you growing."

Every time I read an article about the ‘future of retail’ I’m consistently amazed at dire predictions that yet more problems wait just round the corner. Of course they do and they always will; that’s a fact, so why the surprise? This recession has certainly heightened the fear-factor but even without it, if it’s not the government that make life hard, it will be your competitors. The short answer to questions about the future of retailing is this: “If you want to sit and wait for the bad things to happen, you can be sure they will.”

Whatever the trading numbers show and however uncertain the future, retailers simply have to be positive. They have to stop waiting for the negatives and get on with it. It’s too easy to sit back and wait for the next set of ‘reasons to do nothing’. The problems will come along without you sitting around and waiting for them. That begs the question why are so many retailers and those businesses that interact with retail – warehousing, transport or logistics – waiting like rabbits trapped in headlights and wondering whether the approaching wheel will get them or not?

Let’s consider the inevitable: Taxes and interest rates will go up. That’s not a prediction it’s a fact. Those increases are as certain as death. Therefore you have to implement a strategy to deal with their effects. The force of online and the drive for multichannel will create change; that means creating strategic plans to meet the changes. This strategic thinking demands effort; it’s hard but not too hard to think about. Do something. Be ready. Doing nothing will not drive you forwards and should not be an option.

The easy (and foolish) response is: “Retailing is too volatile right now to do anything other than wait.” My reaction is: “Are you telling me that you don’t have a strategy in place?” Of course, projects may be delayed or deferred, priorities re-assessed and tactics adapted but a strategy has to exist. Without it how can you prepare for action? And if you’re not prepared for action then you’re prepared to go out of business.

So if the question is: 'What should we do now?' The answer is: 'Keep coming back to the business strategy' – re-confirm your plans, re-assess your position and go forward.

Your strategy must include several options and deciding on the priority of those is part of your business planning. What’s sure is that for some retailers their plans will work and for others they will need to re-assess and re-schedule more often. Some will win and some will lose – but one thing is certain – those that do nothing will lose.

For further information please contact enquiries@pmcretail.com

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