EXPERT OPINION

Though many footwear retailers have felt the painful pinch of the recession, pundits say there are glimmers of hope on the horizon for the American economy. According to retail expert Mercedes Gonzalez, there are also plenty of reasons for established retailers to feel optimistic – as long as they make the savvy moves they need to make right now. Unfortunately, too many longtime footwear pros fall into a rut. “They stop listening to the staff and to their consumers,” Gonzalez says. Given that even successful retailers can lose fifteen percent or more of their customer base each year to customers moving, passing away and becoming dissatisfied with the store itself, taking note of feedback is crucial in making sure a store evolves and changes with its customer base. “She isn’t the same shopper she used to be,” Gonzalez warns retailers of today’s more price and value conscious consumer.

Since today’s consumer has changed, retailers may also want to make sure their product mix also gets an update. “Retailers also stop looking for new brands and fashions. They become lazy buyers, never making the time to go to a tradeshow. Then, they end up doing their buys from catalogs and websites, which is never a good idea. When they do that, they can’t negotiate anything or see new, more fashion-forward items that didn’t make the site or catalog.”

Established retailers may find that staying ahead of the competition involves doing a lot of the same work they did as shoebiz newbies. “Learning and more learning is crucial,” Gonzalez says. “Education is the key to staying on top of things. We are training our clients in sales, styling and crisis management, and it’s really paid off. What retailers have to remember is that, when you think you know your customer, she changes.”

While it may be difficult to find the silver lining in the recession, Gonzalez says retailers should find several. “I think the recession has had more of a Darwinian effect,” she says. “If you didn’t change with the times and evolve, you died. Many ‘hobby’ boutiques went under. But those that are in the business of fashion are thriving and actually have more market share.”

So, wondering how to take advantage of that increased market share? “There has never been a better time to grow your business and open a new location,” Gonzalez suggests. “If not that, consider moving to a better retail space. Rents are cheap, and landlords are willing to make deals. I’ve also seen a lot of branded and designer lines are a little more open to minimum orders and discounts to help the boutique owner, so retailers should revisit some of the brands they had previously crossed off their lists.”

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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