Consultant Prospective: Mike Farhit

Mike Farhit

President

Discount Marketplace

Has 3 stores in the LA area

Inglewood, CA

 

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

Keep your costs down and look for results from the election in the hopes that things will get better.  We are hoping that Christmas will get better for us.  The belt is really tightening in the last 6 months, and the unemployment in LA has gone up during this time, higher than the national average.

 

Everything we sell is 40-70% below normal retail prices, so if the people have money they’ll come see us.  We are running the same routine promotions because we feel good about our price advantage.

 

 

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

 Any kind of new products – especially with a concentration of branded items – will be good for business. People want the trusted brand item, especially at the best price.  Health and beauty, food and cleaning supplies has always done well for us, so we feel that it’s a good complement to any apparel retail store.  People will always need these items. 

I always go to the Off Price Show with an open mind and find the products that make the most sense for my business.  People are spending their money on more useful items, like lingerie.  We do very well in lingerie because we beat everyone on price in this category.  Traditional retailers need to be more aggressive with their pricing on intimates because they know that if a woman likes a gown or other piece, she’ll buy it – but not before she shops around.

 

Chuck Lewis

GMM, Hamrick’s Incorporated

Gaffney, SC

 

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

Rule #1, we are being more cautious when buying merchandise so that we can offer the best brands for our customers.  We are always cautious but are even more careful now to source the finest quality and negotiate the best prices.

 

#2, because consumers don’t have as much to spend, we are focusing on our “EDIs” – our basics.  We make sure that we don’t miss the customer coming in and looking for the underwear in their size.

 

Expenses are another area we are trying to control.  We are evaluating our advertising to make sure that we are getting the best bang for our buck.    We’re cutting back on travel, and having more people come see us.  We still come to the Off Price Show and Las Vegas Fashion Week, but are looking to cut back on the number of days.  We have not cut back any jobs or hours, and it seems that our business is better than most. 

 

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

Every retailer has a different perspective or different way to merchandise based on customer needs.  But for us as a major off price retailer, what we need more of is branded merchandise and good assortments.  There is a real opportunity for Off Price vendors at the show to display good clean, full and desirable assortments and sizes.  We carry all sorts of brands.  The consumer today really goes after the branded merchandise.  The Off Price Show is very well organized and the people who run the show help serve our needs quite well, especially when it comes to finding the brands.

 

We do not sell any irregulars, we’re not going to sell less than great quality merchandise.  Our store is set up like a department store, but our prices are better than anybody in the industry.  Our buying for 2009 and beyond is based on this principle.  Our stores are not in major malls, we’re a destination location and we know people are coming to us because we offer great merchandise at the best prices.  The Hamrick’s family built a great foundation for this company.  We’ve been family-owned for over 65 years.

 

 

 

Glen Gammons

Corporate Merchandise Liquidation Director

JC Penney

Plano, TX

 

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

Off Pricers are focused on value 1) value to the customer and 2) value to managing expenses.

Now, whatever business you are in, value is the #1 game in town.  Style and fashion are important, but value is what’s driving their decisions.

 

 

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

Suppliers who can provide commodity merchandise – blue jeans, socks, underwear, the basics at low prices are the big winners.  Shoes are the #1 growth category for us, followed by Kids. There are other categories that apparel retailers are adding, including home, and you can’t find them anywhere.  Off Price Show is well-represented in apparel, and we look forward to it becoming a one-stop shop for all Off Pricers.  This will make it easier for everyone else.  You will see that business travel from retailers will be limited, especially since travel is the first thing to go in a down market.

 

 

Steven Greenspan

Owner & Buyer

Master’s Inc.

West Hempstead, New York

 

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

You have to buy less, and you have to buy right.  You can’t just settle for singles and doubles, you have to go for triples and home runs.  You need to save dollars for both at-once and future opportunities.  We all have to fight for terms and freight – which is a lot of dollars.  Buyers can save a lot of money if the vendors ship it the right and most cost effective way.  When the volume is hurting you have to make sure your retail is right and that you are doing everything better for your stores.  This also includes buying the right stuff, making it look nice in your stores, and effectively promoting your goods.  You have to buy through a microscope these days – every buy counts.  You’ve got to bring the customers in and keep them in – you’ve got to give something away, especially an independent retailer.  Know your customer, know what they want and what they are going to pay.  Make sure the toilets are clean and there’s toilet paper in the bathroom.  You’ve got to do all the little things when you are fighting the giants.

 

 

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

There’s enough good merchandise at the Off Price Show to fill up a store.  Vendors should ship what they show and ship on time.  Make sure that what we see at the show is what we get.  Vendors need to be more responsible with their shipping.  Better warehousing and more follow-up from the vendors is key.  More branded options and bargains with values are what retailers are looking for to drive traffic to their stores.