EXPERT OPINION

Many retailers are looking back at the past decade and crossing their fingers that the next one will be better. The good news? Mercedes Gonzalez of Global Purchasing Companies says that, though it’s been a rough ride for several years, they have reason to be optimistic. “Ugly sold this decade,” she says. “Crocs, Uggs and the Snuggy were our best friends. And what do all those products have in common? They gave us comfort during a decade of continuous crisis. Y2K, war, swine flu – it’s definitely been a horrible decade. But in Chinese, the word for chaos also means opportunity. People who are not afraid, who position themselves to grow now, will be in a great position when things start turning around.”

While some people may be predicting that doom and gloom will become a permanent state, Gonzalez disagrees. “I read the same reports and I roll my eyes,” she says. “Every decade turns. In the ‘80s, we had junk bonds. In the 90s, we had the dot.com boom and bust. People who looked past those events made lots of money. The world didn’t end then, and it’s not going to. To succeed, we have to be fearless.”

Wondering what being fearless entails? An openness to change is one necessary component. “It’s all about adapting and evolving. The one that don’t do those two things will be extinct. If you don’t adapt, you will die. Historically, a lot of retailers have done exactly that. Abercrombie & Fitch used to sell canoes. Barneys was a men’s discount retailer. Even this year, Apple dropped the word ‘computer’ from its company name. Once you think you know your customer is the moment you go out of business, because the truth is, she’s constantly changing. This year she took a step back and reevaluated her spending habits. So you have to ask yourself, what can I do to reach her?

Independent retailers may have the upper hand in doing that. “There’s so much opportunity for smaller stores, because the big department stores can’t adapt as quickly. Everyone knows about fast fashion, but the department stores haven’t adapted to that trend because, essentially, they’re dinosaurs. So this is a great opportunity. I’m really optimistic about retail and the opportunities available to us now.”

But how can an independent retailer, who may not have access to forward-looking trend forecasts, know what to buy? “You have to look past what you read and be able to interpret the information in front of you. For example, people are losing their homes and moving into apartments, so apartment building owners are making money. People aren’t buying new cars but fixing their old ones, so anyone who invested in Maaco is making money. There’s always opportunity. And that’s true in fashion as well.”

Retailers can get a read on future trends by looking at a current one. “Comfort is a trend because of the state of crisis we’ve been in, but there’s always a yin to a yang. When we talk to consumers and ask them how many shoes they plan to buy next year, they’ll say that, while they used to buy one quality pair and 10 Payless pairs they thought of as disposable, now they’d rather buy three pairs of shoes that are well-made and handcrafted and wear the heck out of them. They want value, and they’d rather pay for a well-crafted leather shoe or exceptional design, and they don’t want the same old stuff. They’re buying less, but they’re buying better.”

Another tip Gonzalez gives retailers is to do some market research of their own. “Go to the mall, count shopping bags and see where people are shopping. Look at what they’re wearing. Not only do you have to be fearless, but you must do your homework as well.” 

Don't miss Mercedes Gonzalez's seminars, How to Open and Run a Successful Shoe Store Parts 1 and 2 and Your Next Step: The Secrets to Long-Term Retail Success Every Shoe Store Needs, at The WSA Show on Aug. 9. How to Open and Run a Successful Shoe Store Part 1 will be held from 1:00 p.m. to 2:00 p.m. Part 2 will be held from 2:15 p.m. to 3:15 p.m. Your Next Step will be held from 4:00 p.m. to 5:00 p.m. The WSA Show is taking place in Las Vegas at The Venetian and Sands Expo from Aug. 9 - 11.

Gonzalez was part of the private label launches of Dillard’s and Harvey Nickels of England and is currently the director of the full-service buying office Global Purchasing Companies based in New York. She has been a guest expert on Project Runway and Fine Living Television and has been an adjunct professor for NYU’s continuing education program.

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