The 5 Components Of The Retail Leverage Factor:
1. Overall Size of Business of Vendor to Retailer
2. Growth Categories of Participation with the Retailer:
3. Innovation Level of Company
4. Margin Dollars and Rate Given to Retailer
5. Consignment or Other Retailer-Incented Sell Through Incentives
By Benjamin Smith Hand It Over! A retailer asking for more margin? Not shocking – or ridiculous. It’s a free country – you can decide if you want to offer more, or stare them down. Unless they have no respect for you or your brand, in most cases, when they ask for more margin they […]read more
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WHAT IS RETAIL MOMENTUM?
Now look at momentum from a retail perspective. Here at Retail Leverage, we’re defining Retail Momentum as when your sales velocity reaches critical mass. The definition works at all levels – it can occur in a single store, category, retailer, channel, or the entire market. Of course getting your sales to a high level and sustaining them is easier said than done. This is probably a good time to tell you this article isn’t about how to achieve a high level of sales and gain momentum. It’s about understanding Retail Momentum and ideas to keep from losing momentum.read more
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I found a great resource that fills in the blanks on Circuit City’s demise from a person I follow on twitter, @DonEames . He is a former Senior VP of Best Buy, and now has his own management consulting company. Even though he was inside the key rival of Circuit City, I believe he had front row seats to the demise. His analysis would be politically tough for a Circuit City insider to provide, especially given the it was just a year ago that the final stores shuttered.
Check it out – it is called “CIRCUIT CITY SIX: Six Fatal Mistakes of a Once “Good to Great” Company”. It is a quick and to the point read. I found it to provide valuable insight to both retailers and brands alike, and for that matter, consumers who used to shop there (or avoid it).read more