Retail and Consumer Products Business Positioning After The Coronavirus

Retail and Consumer Products Business Positioning After The Coronavirus

The coronavirus pandemic has laid bare the fragility of the retail business sector in so many ways. Shutting a retail store to all customer traffic decimates the income statement, cash flow and financial health of the retail company.

These factors will ultimately lead to the way the customer shops since they have been on ‘stay at home’ orders from local, county and state governments. The online ecommerce business has shown customers that there are other brand shopping alternatives to the traditional brick and mortar retailer that is mall based.

It is projected that the online ecommerce business will grow from 15% of total retail revenue to 25% during the next few years. This phenomenal growth will mean less traffic in mall-based retailers which could lead to co-tenancy lease covenants being triggered related to anchor tenants being open along with the amount of lease space that is occupied {80% or more occupancy}

An extraordinary number of retailers will declare bankruptcy as soon as the ‘stay at home’ orders are lifted as it did not make sense to declare bankruptcy while stores are closed. A retail analyst on CNBC indicated that over 100,000 stores will close between now and 2025; this will put a tremendous amount of pressure on existing malls that will have difficult leasing space and leases are terminated.   This reality will mean defaults on mortgages as cash flow dries up for malls that cannot reinvent their leasing strategies.

Parker Revenue Growth Strategies’ leadership team and trusted advisors have years of experience in the retail and consumer products arena. We have worked with and successfully managed mid-market retailers and know the attributes that are needed to compete in today’s post coronavirus retail world.

We’ve been business owners and understand the obstacles that prevent companies from realizing their full business potential. Our Fortune 100 retail and consumer products knowledge and wisdom augment our mid-market small to medium size business experience.

 

ORGANIZATIONAL FITNESS

Parker Revenue Growth is a business management and services firm that utilizes the ‘Organizational Fitness Program’ to improve operating systems and results for mid-size companies, non-profits and private equity portfolio businesses. The company provides business assessments to prepare privately owned companies for an exit strategy, provide the business with a sustainable turnaround strategy for long-term sustainability with an eye for developing maximum return on investment. Parker Revenue Growth is an outcome driven company and develops business plans and organizational fitness strategies to maximize value and operating results.

business revenue growth strategies during coronavirus pandemic

 

INTERIM C-LEVEL MANAGEMENT

We provide interim CEO services that can right the ship, build short-term action plans to meet stated objectives and direct the efforts of the management team. If any of the bullet points below apply to your organization, an interim CEO will be your best decision financially and strategically:

  • Current management is unable to develop the strategic direction for the business
  • There is no successor in place to lead the company
  • The company is losing market share, revenue and bottom line profitability
  • The company needs a business turnaround and restructuring
  • Disciplined leadership is needed pre- or post-merger
  • Rightsizing or downsizing the business

The Turnaround Management Association granted Parker the Certified Turnaround Professional (CTP) designation after an extensive review process. The Certified Turnaround Professional (CTP) designation provides evidence of an individual’s commitment to the turnaround and corporate renewal industry and also attests to a level of expertise that non-certified professionals may find difficult to prove.

During these challenging times, we are offering a ½ day complimentary business assessment to those business owners who want to restructure, grow and sustain their companies for the long-term.

 

CONTACT

William Parker is the founder of Parker Revenue Growth Strategies, a business management services firm that develops revenue growth plans and turnaround strategies to maximize value and operating results for small to medium sized {$10.0MM to 100.0MM} businesses. Named one of the “Power 30 Most Influential People in Discount Retailing” by Discount Store News, Parker has served as a senior corporate executive for several Fortune 100 companies including Banana Republic, Old Navy, Kmart, and Gateway Computers. For your free business assessment, please contact William at 858-232-7273 or email william@parkerrevenuegrowth.com.

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