Will J.C. Penny’s New Strategy Succeed?

Yes, big changes are coming to J.C. Penney on February 1st, 2012, but can the new pricing changes save this company? So far, the teaser ads look fun and the pricing concept sounds promising, but will the consumer really believe in the new pricing policies of J.C. Penney?

Today’s consumer is very educated, and armed with powerful internet and social media tools. Consumers can go online and quickly compare pricing and reviews on any item – at any time.  Consumers also understand the value of the merchandise that they are purchasing. Just because an item has a branded label on it does not mean that all the products of that brand are of like quality. Remember, you always get what you pay for!

Consumers have also been trained to look for sales. Many only shop when they see the word SALE.  Years, ago, the auto industry started rebates and, to this day, many car shoppers still wait for rebates and incentives before making their purchase. Will the J. C. Penney shopper do the same? (more…)

2012 Is The Year To Grab That Prime Location

The most important part of any retail business is location. Over the last few years, retailers entering the market place have had two great advantages over the competition that leased their location during the peak retail commercial real estate boom. First, prime locations in many markets across the US are at least 30% less costly to lease today than during the boom; in many markets, the rate can be close to 50% less. Second, during the boom years first-time franchise owners or mom and pop stores had no chance of even getting a prime location.

Today many prime locations are available for a more reasonable discounted price. Many landlords who would never even listen to franchise owners or mom and pops will now listen to any offers they receive. Some landlords are even offering free rent and money towards the build-out of the location.

The buzz in the commercial real estate community is that we will see the light at the end of the tunnel in 2012. That means if you’re considering opening, moving or expanding any type of retail business, you may want to act now – before the market heats up again. (more…)

Let’s Meet Face to Face!

In today’s digital and electronic world, we have lost a major part of communication, the human factor. Sure it’s easy to send an email back and forth to finish, or make, a deal. Yes it’s easy to text someone a message, sure we can chat on Facebook and, yes, Skype is amazing. But, we’re losing a very important skill – basic communications.

For the last four months, I have been working on a lease for one of my clients. It came down to one issue and both parties thought the ball was in the other’s court. I finally invited the other party to lunch to discuss the problem and in five minutes the issue was resolved. That meeting ended four months of email and phone calls. One simple face to face meeting finished the deal. (more…)

Thinking small – the resurgence of the local economy

Main Street America….

Time was, you lived in a town or city and you shopped where you lived.  You knew the shops, markets and restaurants, you knew the owners.  Now there’s a growing movement to reclaim our economic heritage.  We’ve done global.  Now more and more U.S. consumers are thinking local.

After decades of newer, shinier, bigger (so big your town won’t hold it) shopping venues, we’re heading home.  Back to goods made in our country and our state, back to locally grown food, back to neighborhood merchants.  Our zeal for more, more, more has given us less, less, less.  We’re ready for a change.  (more…)