There appears to be evidence of retail rebounding all over.  However, the evidence is weak.  This recent report says shoppers are “tiptoeing back though they haven’t dramatically changed their shopping patterns.”  We quickly compiled some interesting statistics on retailing and the money in people’s pockets:

• The International Council of Shopping Centers reported a 3% increase in retailer sales compared to January of 09.
• Nordstrom reported a 14.0 percent increase in same-store sales for the four-week period ended January 30, 2010 compared with the four-week period ended January 31, 2009.
• Unemployment rate dropped to 9.7% from 10%.
• Personal savings rate is slightly up for Q4 2009.
• Real disposable income rose .4% in December 2009.

All of the above seem to indicate the corner has turned on the economy and therefore the retail sector should follow suit.  Are you seeing an increase in the last two months?  Is this a glimmer of hope?

The other day, I met a friend for lunch at a local Chinese restaurant. The restaurant (based on appearances) was a cut above the typical tiny pad nestled amongst larger boxed retailers. Strangely, there was a banner draped on the storefront announcing: “we’ve lowered our prices”. I was curious to find out how this restaurant had executed their price lowering strategy. So, I went in to find out.  Once we were seated,we went through the typical menu-order-eat-pay cycle.

Some of the things I noticed at this restaurant caused me to write this blog entry.  Here is how they implemented price lowering:

• As already mentioned, a loosely draped banner was hung over the storefront
• Throughout the menu, almost every menu item had a piece of tape placed over the old price and a new price handwritten in
• A couple of handwritten signs were taped in the interior

They implemented price lowering all wrong.  They should have followed the below 5 steps.

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