Welcome to the first “RetailSpeaks IQ” blog post where retailers share their opinions about what’s really going on at the grass roots level.
Several weeks ago, stationery retailers received bone-rattling news: The Consortium, a collection of three major brands (Elite, Jansson and Chase), was closing the doors just as spring brides were beginning to select their stationery and invitations. Whether downmarket or upscale, those retailers felt the ground shake while watching up to 35% of their personalized selection disappear from the shelves on a moment’s notice.
Today’s question:
How concerned are you about the stability of your vendors in today’s financial climate?
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We’re very concerned about how financially secure our vendors are. So far, we’ve already seen two major lines file bankruptcy and are fairly confident two others will. The smaller companies don’t seem to be at as much risk, but regardless of who goes, each ones reduces the number of options we have. As my partner and I go to market this month, we’re looking for the regular lines as well as potential backup options in case the ones we think are at risk suddenly disappear.
There’s so much to be worried about, which unfortunately includes thinking about our suppliers. Seeing large, established companies like Department 56 file chapter 11 makes me nervous, but most of the companies we do best with are smaller ones. I’m able to talk to the owners instead of just someone in customer service. Keeping those dialogs current helps me get a handle on where we’re on solid ground and where we might be at risk.
The reps actually make me more nervous. They seem to be all over the map right now which makes me wonder if commission payments are changing or their lines are in financial trouble. Lots of sales pressure these days.