Independent Retailers Discuss Their Growing Struggle with Credit Issues

GRAND RAPIDS, Mich., July 22 /PRNewswire/ -- Retailers can't survive without credit terms, according to several leading independent retailers gathered at a special Retailer to Retailer Breakfast Seminar on July 17, during the Atlanta International Gift and Home Furnishings Market®. The Market is one of the largest market expos for gift and home furnishing companies, where retailers from around the globe travel to order products.  

The fast-moving, interactive event, which was hosted by the Gift and Home Trade Association (GHTA, www.giftandhome.org), gave leading independent retailers the opportunity to discuss key market trends, professional development, and industry best practices.

"Due to a variety of economic factors, vendors are requiring retailers to pay for merchandise up front with credit cards, as an alternative to offering extended credit terms," says Carl Sallese, owner of Baltimore, Maryland-based Ann Marie's Hallmark. "But we can't finance our business with credit cards. It's impossible. Many retailers have spent years establishing their businesses and earning good credit."  

Traditionally, vendors have allowed retailers to order products without extending payment up front. This process allowed retailers to increase product offerings within their stores and better service consumers. Over the past few years, however, it has become common practice for vendors to require payment upon purchase, as vendors have no opportunity to collect payment from retailers who might go out of business.  

According to many retailers, credit card security is also an issue of concern. As a result of this discussion, the GHTA plans to include a breakout session on credit issues during its annual conference later in the year.

Other topics covered during this event were topics improving inventory turnover and cash flow, reviewing the standards for sales per square footage, identifying effective social marketing initiatives, and sharing effective special event ideas.

The retail industry is the second-largest industry in the United States, in number of establishments and employees. Independent retailers contribute approximately $100 billion to the industry, with 150,000-200,000 locations generating over 50 percent of all retail store sales. Additionally, single-store businesses account for 95 percent of all retailers within the United States.      

"The health of the independent retailer and small multiple stores has always been an indicator of a local economy's success," says Benno Duenkelsbuehler, the principal of (re)ALIGN, a consumer business advisory, formerly of IKEA and Pottery Barn, and the director of the GHTA's Retail Advisory Board. "Talking with independent retailers in this setting -- and hearing about their day-to-day triumphs and struggles -- is incredibly revealing. We recognize that the single-store is the backbone of each economy, so sharing innovative practices and ideas are essential to success and economic growth."  

Established in 2000, the GHTA has long been dedicated to leading and transforming the gift and home industry, joining sales agencies, vendors, service providers, and retailers to develop important industry initiatives and tackle industry issues.

The GHTA supports a variety of industry-related initiatives including the Independent Retailer Resource Center (www.independentretailer.biz), a website dedicated to strengthening and supporting the independent retailers; the Brandwise Gift and Home Index, which allows industry professionals to access factual information pertaining to the way the industry is performing during major North American markets; and the GHTA conference, a highlight of the GHTA's annual programming. The 8th Annual GHTA Conference, held in New Orleans November 18-20, 2010, will feature Archie Manning, a former NFL MVP, as its keynote speaker.  

SOURCE Gift and Home Trade Association