My head started spinning when the phone rang last week.
It was my Uncle Doc and I knew he was going to drill me if he had a chance. Last summer we had a conversation concerning my business and my upcoming wedding plans and I knew he was doing his normal follow-up. “Put some horses in the barn Connie… I’m telling you it’s time to put some horses in the barn,” he said with complete passion and, in his case, direct intensity. He was telling me “hard times are a coming and cash is king.” Today I have a newly found respect for him and boy was he right.

The sky has fallen and now what?
At the recent National Retail Foundation conference, I hear CEO after CEO talk about pulling the reigns in and weathering the storm. Deloitte in conjunction with Stores Magazine presented their latest study on Global Powers of Retailing which included the Top Trends for retailers 2009. Here are the highlights.

Cut Costs
Feeling the global squeeze will push us all to examine our companies under a microscope. This means getting back to our core competencies, closing stores that are draining or cannibalizing the mother ship, examining the mix of business and eliminating formats, fascia and merchandise that is under performing. Putting the knife to operating costs; consolidating; slashing payroll; negotiating better deals with suppliers, landlords, insurance providers and bank services will be the new normal. The winners will take advantage of the fact that, a recessionary environment creates more of a buyer’s market and leverage it with suppliers.

Think Risk Management
The present global meltdown has certainly proved that having all your eggs in one basket can be very risky. There isn’t a CEO today that hasn’t awakened to read an email informing them that one of their China-based factories shut down in the night or read that another retailer has bitten the dust.  Risk management involves a strategic thought process for worst-case scenarios. Diversification of sourcing, retail strategies will be critical.
Differentiation is the name of the game today! Build brand equity and increase store visits by focusing on the quality of the customer experience in your store by examining customer service, store layout and design, product information, ease and speed of finding merchandise and checkout. Hence, branding will require special attention from retailers who want to stand out in the crowd.

Think Human Capital Management
Managing human capital in a way that generates strong results may prove to be the most challenging. You can flawlessly manage the supply chain, logistics and cash management and drop the ball if you do not have or cannot keep the right people. Invest in training. Year ago, I Remember CEO of Bank One sharing his biggest mistakes at a Young President Organization (YPO) meeting. The one that really stuck out in my mind was him thinking that people would change, and eventually get it, this keeping under-performing employees too long. Subsequently, he annually eliminated the bottom 20 percent and brought in new people and services

Think Multi-Channel
Get your head out of the sand and realize that the Internet is the most powerful way to interact with your customer today. Give your cust0mers a way to tell stories about using your products and find the information they need. Social marketing is the latest hot ticket to get your customers emotionally engaged with your brand. Customers will visit new sites if the value proposition is strong. Success will be found by those who seamlessly deliver information and products to consumers in conjunction with the store experience.

Think Smaller Stores
Large store formats are simply too expensive to operate in today’s economy. While they will not go away, they will not play as significant a roll in retail growth as they have in the recent past. Smaller stores create fewer obstacles in the development process. Fragmentation of the consumer market means it will be more difficult to satisfy the needs of mass market. Smaller stores will do a better job of appealing to niche consumer segments by specializing in unique products offering and service. By developing new niche-oriented formats and fascias, big chains can eliminate the cookie-cutter approach leaving way to celebrate regional attributes.

In Conclusion
The most successful retailers today have on of two attributes: 1. The best supply chain contributing to the lowest possible prices or, 2. Those who do not attempt to match lowest price leaders and manage their brands to demonstrate to their customers why they are different. The Wall Street Journal just reported that constantly lowering your prices to promote traffic, while tempting could be the kiss of death to your brand profit, by doing so you educate your customers to wait for sales before they buy, i.e. department stores. Success will be found by selling high-value products that can’t be easily sourced by your customers and delivering flawless service. Find new useful extras or add-ons for purchases to increase the value your customers get for their money, bundle items together. This will prove to be better in the long run than smaller margins. Think bundling–and put some horses in the barn!

When the going gets tough in the retail business, it’s time for retailers to toughen up… just like my dad

As a kid I remember hearing stories about my father growing up in the coalfields of West Virginia. How he had to fight to get to school everyday, and then later, during his adventure in the U.S. Navy, found it necessary to “mix it up a bit” now and then. In other words, my dad fought his way through Europe the old fashion way: With his fists.

Lately, I’m reminded of his stories by retailers who are fighting for the attention of potential customers. I think they too have a need to “mix it up a bit.”

During New York’s 2010 Fashion Week, Versace placed 10-foot-tall, high-definition video walls inside its Fifth Avenue windows. The video walls served as backdrops for live models wearing the season’s latest looks.

Smart move. I think that every retailer is challenged now to create a store that shows the shopper, at a glance, all the options that are available to her. Shower her how to mix and match with confidence, much the same way that The Limited did back in the 1980s when big hair reigned supreme. By the way, with a new cash infusion form Sun Capital, Limited is mixing it up a bit again with a new store design and seems to be back on the comeback trail again.

Since most independent retailers don’t have a “Sugar Daddy” like Sun Capital in their back pockets, and video walls are out of reach for most, here are a few ideas for mixing it up without breaking the bank.

• If space allows, having live models walking in your windows isn’t a bad idea. The idea, in video form, was certainly good enough for Versace to grab people’s attention. And if you can’t swing live or video models, call your local over-size print specialist and have a larger-than-life  photo of one of the models blown up as a backdrop.
• Rent a red carpet, roll  it out down the middle of your store, and flank it with movie theater velvet ropes. Stagger all the mannequins from your windows down the middle and create your own catwalk. On a good day, throw open your doors and let that red carpet roll out onto the sidewalk: You’ll be sure to get people checking out your store.
• Recycled mannequins can be found in re-sale shops, online and in the back rooms of department stores for next to nothing. A can of spray paint can transform this mix-and-match lot into a fashion color crew ready for the latest trends.
• Set the stage further by scouting out old brass chandeliers, then spray paint them black and hang multiple shapes and sizes down the red carpet for a little Moulin Rouge vibe.

The key is to keep the mix fresh. Get up everyday and ask yourself, “how am I going to do it differently today?” Then, just like my Dad, put up your dukes and get to work!

Connie Post Benotn, CEO of Connie Post Global Media, has designed over 19 million square feet of retail space all around the world offering Affordable Design Solutions. She is the author of  “A Beautiful Room Will Change Your Life” and a frequent speaker at industry retail seminars. conniepost@conniepost.com

I’ve spent much of my careet providing Affordable Design Solutions for companies in the home furnishings industry, but I really got my start in the fashion industry

My background and career began with hometown runway modeling, window displays, boutonnières and even funeral sprays, before I started doing retail store design for the home trade. I have done it all.

Along the way, I borrowed ideas from the fashion business and applied them to home furnishings. Long ago I introduced mannequins – the cool, funky types – often fashionably dressed but other times draped with upholstery fabrics to coordinate with a furniture collection that would otherwise have been statically displayed.

Using faux painting, animated singing dummies and other crazy display techniques, I brought a “Disney style” to an archaic industry that previously didn’t change, much less ever display furniture with an edge or trend in mind.

But just as home has been influenced by fashion, I think apparel specialty retailers can borrow from the furnishings business.

Your main source for display is always the fixture companies, but sometimes display props and fixtures designed for the department store, small retail and boutique trade sport very large price tags that could make your hair turn gray and leave you running for the nearest door.

What you may not know is that your local furniture stores have similar products at much better pricing if you are willing to get out and scout about a bit. Depending on the retail price points, style and point of view you are looking for, you will find an average of 15 to 50 sets of occasional living room table sets to choose from. Cocktail/coffee tables, end tables and sofa tables, layer, can make a fabulous display base to add clothing to. Mix these pieces in with your traditional fixtures and display pieces, maybe toss in a étagère for a vertical appeal, and voila!

Here’s a good example: Simply place a rectangular sized cocktail half under a sofa table then add an end table running alongside and you have a great tri-level display base that will bring a different look to windows or store entries.

Different styles of furniture can convey different feelings: Dark carved, traditional-style tables can be pared with Goth-style clothing for a dramatic look right for any New Moon.  A sleek chrome and glass contemporary set of tables can give you a new updated vibe for contemporary sportswear, while a dark merlot finish set of tables provides a fresh, new classic appeal yet doesn’t look like something your mother would have chosen.

For the adventurous, I suggest you spend an afternoon shopping the resale stores in your area. You will be surprised at the cool, retro end tables you may find. Just spray paint or clean them up a bit, then introduce them to your store displays, all at affordable prices.

Shopping at bargain retailers in your area will also prove to be an inexpensive way to find display props that on their own may look a bit cheesy, but with stylish clothing look rather interesting and don’t have to break the budget. I have seen three-piece tables sets advertised for $99 to $199 that could do the trick.

The key is to mix these in with your traditional display pieces, which after all are more functional being specifically design for this purpose. You wouldn’t want a whole selling floor of store-bought furniture.

But a few carefully selected tables can make your store something very special/ “Cheap is the new Chic!”

Connie Post Benotn, CEO of Connie Post Global Media, has designed over 19 million square feet of retail space all around the world offering Affordable Design Solutions. She is the author of  “A Beautiful Room Will Change Your Life” and a frequent speaker at industry retail seminars. conniepost@conniepost.com