Well, it seems that the markets are still pretty volatile, but retailers turned in a positive 1% sales growth figure for January, the largest increase in 14 months, and a clear sign that consumers have had enough waiting around.
The reality is that most people still have their jobs and are still able to afford to shop, so after waiting and saving for several months, people are returning to stores.
This is great news for the retail sector and I hope you can all benefit from it.

Will it ever die?

We hope not. CAP Software's products fully support Windows Vista, and so do a lot of others, but that doesn't mean we all like it.

We recommend that our users stay on XP if possible, and it looks like you will for a while longer.
Microsoft just issued a press release saying XP will be available for system builders and solution providers until May 30th.

So, if you need a new PC, give CAP a call to get one with XP and save yourself the trouble of Vista.

However, we are testing Windows 7 in house with good results, so stay tuned for progress on that.

Cheers,
Will

What's the big news in 2009? The same thing we started with in 2008, unfortunately. It's the economy, stupid!

However, this time we're looking for the end of a recession, not the beginning of one, so that means it's time to be thinking about how you will continue to weather the storm to prepare yourself for happier times.

That means making the most of what you have. If you already have a retail management and POS system, are you sure you're using it to its full capabilities?

If not, you're literally leaving money on the table, and you should call your provider (hopefully CAP) right away to find out more about your system and how it can help save you time and money. You already paid for it after all!

Now's the perfect time to streamline your inventory operations and increase targeted marketing to your best customers. Dig through your data to identify purchasing trends that can help you meet your sales goals. There are plenty of people still buying things in this market, so use the data you have to find them!

Go on, get out there!

Just when it seems like all the bad news that could possibly come along has already been printed, this crazy year manages to innovate in negativity once again. We've seen credit crises, housing bubbles, massive financial deleveraging, and now industrial contraction on an unprecedented scale in the modern era.

What does it all mean? Short term, retailers and others are hurting, but I'm confident that we'll make it through. The really good news is that all of the difficulties in the market and the economy are serving to clear out the weak and the opportunistic, meaning that the companies that survive the downturn (which is projected to last another few months, anyway) will be in an excellent position to take advantage of renewed economic health and reduced competition.

The fundamentals of our economy are still strong. We still have the same workforce and raw materials, and we're witnessing innovation out of necessity at a rapid pace. It's a pretty exciting time to be alive, even if the day-to-day news is gloomy.

So, I say keep doing what you're doing, be aggressive, and let's be ready for the good times when they get here.

Happy Holidays!

Okay, since we're still talking about a recession, let's think about what that means for retail businesses.

Sure, consumers seem to be spending less, so cash flow can get a little tight these days. On top of that, there's a credit crunch, but that's really in the housing market and in retail banking, not commercial loans held by local banks that didn't get into the sub-prime market to begin with, thereby avoiding trouble.

So, are you compensating for the short term slow-down by hunkering down and tightening your belt? Probably, but what was first to go? Please don't tell me it was your sales and marketing budget. It may seem like an easy way to cut your budget, but your marketing investment expenditures should be the last thing to go.

Why? Because they generate new sales!!! Probably almost everything else in your business has a net cost, but sales efforts should have produce a net profit of many times their original cost. So, in trying times like these, find other ways to save money, whether it's by reducing staff, more closely monitoring your inventory, or keeping an eye on your energy bills, but don't stop spending on sales and marketing efforts.

In fact, I recently saw a statistic that in the 5 years after a slow down, the companies that either reduced their sales and marketing spend during the slow down only grew 19%. The companies that maintained or increased their sales and marketing efforts were able to average 275% growth over the same period.

Now you tell me, which would you rather be?

One of the biggest buzzwords for 2008, and most likely for 2009, has been managed services. The term applies to many things, from network infrastructure, security, general maintenance, offsite backup and software applications.

The main reasons touted these days are reduced costs for the end user, and better service.

As a retailer, have you made the switch to a service model for any of your IT needs? Are you considering any software-as-a-service applications?

At CAP we've been leery of making our entire application web based due to reliability concerns, but we do provide affordable supported remote backup services to help you maintain your data securely. We also offer online monitoring tools to help you keep track of your business no matter where you are.

These types of services are just the tip of the iceberg, so keep your eyes peeled for new developments. If you haven't looking into our current offerings, give CAP a call today to see what work we can do for you.

Well, how has the summer been going for you so far? I have to say that it's been going well for us here at CAP, but let's try to take a look at why.

Sure, there's plenty of bad news in the economy, and the basic financial and housing news continues to be gloomy, but does that mean all business has screeched to a halt? Of course not, it just means that we all have to work a little harder and a little smarter to keep on top of things.

At CAP, this means finding new and better ways to do the same old thing. This summer we accepted the Inaugural Innovative Solution Award from the RSPA and VSR magazine for our FreshPay solution based around an RFID customer tracking system to enhance customer service at one of our customers. We had a great time pioneering the technology, and it's been a great fit for the customer.

Is that something that we'll apply to all of our customers? No, but it's a cool solution to a problem that faces lots of retailers. In tough times, if you can differentiate yourself from your competitors, then you're likely going to be able to win new business and keep existing customers, despite any price point issues you might have. Make it fun, easy, and rewarding for your customers to shop with you, and they will.

So, think about how you can be the best you can be for your customers. If CAP can help, don't hesitate to let us know.

So, now that you're thinking about how you can be as efficient as possible, let's think about why. Is it because we're in a recession?

I hope not. At this point, some analysts (and I agree with them) are saying that we're talking ourselves into a recession. The fundamentals aren't that bad, but the media can't leave it alone.

Well, I say it's time to get back to business and efficiency is simply part of running a business well. You don't have to think of cost cutting as belt tightening, it's simply reducing operating costs to drive profit margins, and that's beneficial, in good times or bad.

So, get out there, roll up your sleeves, and tackle that computer, but not because we're in a recession. Do it because it's the right thing to do.

We're a third of the way through the summer already, who would believe it? At least, we're a third of the way through the summer months anyway.

What do you have on your plate for the 4th? Vacation, or a big retail sale? Holidays like the 4th can be big business for certain retailers, and really slow for others. What are you doing to make sure you capitalize on what the calendar gives you?

Can you take a look at your inventory and decide that you need to shift your stock to emphasize the current hot items? It's always been common retail practice to carry seasonal items, but electronic ordering systems and the ubiquity of fast shipping means it's possible to carry a very lean inventory that you shift quickly and often to keep a very narrow target audience happy.

So, rather than stocking a full inventory of "summer items", can you pick out items that are relevant to a two week period and increase sales that way? It's equivalent to day trading. Sure it's more work, but the rewards can be great.
It may be worth a look, and if you don't have a good inventory control system to help you, there's no way you'll be able to get an accurate picture.
Something to think about...

So the US economy is a little shaky right now, what's to be done about it? We've got some fundamental issues going in the markets right now that are hurting retail demand in the US, but you don't have to let it get you down.

Take a look at your product line and your target customer and decide if you might be able to make some changes that open up some new markets for you.
Can you alter your product offerings to target some areas that are less discretionary?
Can you sell to markets outside the US?

I'm off to New Zealand tomorrow to work with some of our customers there. Sure, the world economy is tied to ours, but other countries aren't necessarily doing as badly as we are, so maybe you can do well with some offerings abroad.

Look at your options, you might be surprised at what you can do outside your normal sphere of influence. It's worth a shot, right?