Consultant Prospective: Dick Seesel

How can retailers best handle the recent credit crunch that is affecting both their stores and their consumers?

The most important thing for retailers to do right now is to make sure that their own financial house is in order. Make sure that your cash flow and cash management are well-managed. Work on your sources of credit (factors, banks, etc.) to avoid becoming cash-strapped yourself. Stay "liquid" in terms of your inventory management so you can avoid big, costly mistakes and take advantage of off-price goods in the marketplace. And, finally, make sure you present the best possible value to your customers because they will reward the retailers who give it to them this year.

What new products specifically would retailers like to see from Off Price Vendors that could make a positive impact for their business in 2009?

Feedback from the off-price marketplace says that there is growing demand for accessories, jewelry and footwear in off-price stores. Even in full-price department stores, accessories have always been a great "refuge" for customers during an economic slowdown. It's easier to update your wardrobe with a new handbag or pair of shoes than by replacing the apparel itself. And a new accessory item gives the customer a quick psychological "lift" without having to feel guilty about spending a lot. Accessories and footwear can account for 20% or more of a traditional retailer's business, so off-price stores have a big opportunity in front of them.